Starbucks' (SBUX) succession preparations appear to be in full motion.
Fresh off a mixed quarter, Starbucks announced Monday that Cliff Burrows, group president, U.S. and Americas, will assume the role of group president, Siren Retail. In the newly created role, Burrows will have responsibility for Starbucks' relatively new Reserve Roastery & Tasting Room and reserve-only store concepts.
Burrows will also lead the integration of bakery Princi, which Starbucks recently acquired for an undisclosed sum, as well as oversee loose-leaf tea seller Teavana. He will continue to report to Starbucks Founder and CEO Howard Schultz.
Meanwhile, John Culver, group president, China/Asia Pacific, Channel Development and Emerging Brands, will assume the role of group president, Starbucks Global Retail, with responsibility for Starbucks' global retail operations. Culver's direct reports will be the senior leaders for the European and China/Asia Pacific regions. He will continue to report directly to Starbucks President, Chief Operating Officer Kevin Johnson.
Starbucks gave its two strongest signals yet that Schultz could be nearing an end as CEO within the next five years. First, Starbucks said Johnson will gain direct reports in Chief Financial Officer Scott Maw, general counsel and secretary Lucy Helm, and Michael Conway, president Global Channel Development. Johnson has been overseeing the senior leaders of the company's supply chain, technology, partner resources and marketing organizations since joining Starbucks in late 2015.
As for Schultz, Starbucks says he will "increase" his focus on global strategy, global store development and store design innovation to "position Starbucks for its next wave of global growth." Schultz will also continue to work closely with senior Starbucks execs to ensure "continued disciplined growth and operational excellence around the world." In short, the role seems more comparable to an executive chairman instead of a CEO.
