Starbucks goes stir-crazy to pour into Tesco outlets

One More Thing: Could Starbucks be coming to a Tesco near you? Not this year it won't but if a trial in nine Tesco stores in…

One More Thing:Could Starbucks be coming to a Tesco near you? Not this year it won't but if a trial in nine Tesco stores in the UK goes well, then don't rule out seeing the Seattle-based coffee retailing giant arriving at your local supermarket.

With sales in the US slowing, Starbucks is pinning its expansion hopes for 2008 on Britain and Ireland. Earlier this week, Howard Schultz, Starbucks's founder and chairman, told the media that at least 100 outlets would open across Britain and Ireland next year.

Starbucks has opened 14 stores in Ireland over the past couple of years and more are in the pipeline. It made a loss of €1 million here in 2006.

Linking up with Tesco - which has just shy of 100 stores in the Republic - would give it critical mass very quickly, although a number of Tesco shops wouldn't be able to house a cafe.

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Tesco said such a move here couldn't be ruled out but the initial trial is focusing on Britain.

The froth has been blown off Starbucks's expansion across the US. A slowdown in consumer spending has forced it to pare back the number of store openings in the US next year by 100 and it is even planning its first national advertising campaign.

Customers in Britain and Ireland can also look forward to a range of new baked products being launched and Starbucks is also reported to be considering selling a bottled frappuccino coffee drink in supermarkets, after its success in China.

It sounds like the perfect way to wash down Tesco's microwave dinners.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times