Amsterdam's Key Role In Starbucks' Global Strategy



Amsterdam--Expressions are like espresso. Both can be dispensed with ease, but often carry a powerful punch. Consider the coinage "niche port." Most water gateways hate this term because it seems to diminish the impact a port has on the region's economy. But when one applies the term to the Port of Amsterdam, and backs it up with the brand name "Starbucks," a whole new meaning comes into play.

"Amsterdam's strategic geographical location in continental Europe makes it an ideal home for our facility," says Mark McKeon, president of Starbucks Coffee Company for Europe, Middle East and Africa. "The building of our roasting plant in Amsterdam fulfills one of our key corporate strategies of world class execution in supplying hundreds of existing and new Starbucks stores in the region with our high quality, fresh roasted coffee."

In an exclusive interview with World Trade, McKeon goes on to describe the particular value-added attributes of the port here.

"Because it is relatively small and self-contained, we can expect to receive specialized service," he says. "Amsterdam is a glamorous city, and we have a glamorous product, so it's a good fit."

The port facilities, adds McKeon, suit the breakbulk demands of this precious commodity.

"We might not get the same priority at a larger container port," he says. "Here, we know that we'll be given high status, and first-rate treatment in every aspect of our operations."

Port authorities agree: "Our historical legacy was important to Starbucks," says Kees Noorman, who oversees the gateway's real estate department. "We are a small entity with very big plans for expansion. This is a step in the right direction."

Slated for completion early next year, Starbucks will have its own roasting plant on site.

"I am very happy that Starbucks has chosen to set up its coffee roasting facility in the Amsterdam port area," said Gerrit Ybema, Minister of Foreign Trade. "Not only will this create substantial employment, but attracting a brand name of such a reputable stature is the 'extra icing on the cake' with which I am very pleased."

The facility, which will cover 94,000 square feet on the multi-modal transport center Westpoint at the America harbor, will house equipment and operations to receive, roast, package and ship Starbucks coffee to retail stores in current and emerging markets. As with all Starbucks roasting plants, the Port of Amsterdam Roasting Plant will also have a tasting room, the essential hub in which Starbucks coffee experts will taste and test Starbucks high quality arabica coffees.

Starbucks' U.S. roasting plants are in Kent, Washington, and York, Pennsylvania. The company will open a third U.S. roasting plant in Douglas County, Nevada in spring 2003.

Ian Egbertsen, the port's marketing spokesman, tells World Trade that while one of Amsterdam's key strengths is in its processing capacity, distribution is also a major attribute.

Mark McKeon, president of Starbucks Coffee Company for Europe, Middle East and Africa.
"We have more than 200 EU head offices located here," he says, "and no other port is so close to its most important markets."

Indeed, as a logistics center for Europe, the port represents the door to Germany, Belgium, France and Great Britain. Nissan has its EU headquarters here and distributes its cars and parts from the port to locations throughout the Continent.

Food giant Cargill has six major locations at the port, but is concerned about the strategic direction Dutch planning authorities might impose.

"There's talk about building residential communities out here," says Jop van Zelm van Eldik, Cargill's deputy director. "And that might make us rethink our situation. For the time being, though, we are very happy here, and hope that this property will continue to be reserved for industries like ours."

Spokesmen for the City of Amsterdam's economic development department gave assurances that this would probably be the case. While they could not be quoted for attribution, a briefing with World Trade revealed that North American manufacturers and shippers would be given every incentive to consider this region for future offshore sites.

"Ask anyone who does business here," he confides, "and they'll tell you the Dutch are very accommodating."

Especially when negotiating over a cup of coffee.

Patrick Burnson is Executive Editor of WORLD TRADE MAGAZINE.

Recent Articles by Patrick Burnson

You must register or login in order to post comments.

Multimedia

Videos

Image Galleries

Extreme Logistics

Extreme Logistics profiles the various ways that specialized cargo is transported around the world under demanding time, temperature, and handling requirements.

Podcasts

The Growth of Canadian e-Commerce and Logistics to Canada

The growth of Canadian e-commerce and logistics to Canada is on the rise with online Canadian purchases from U.S. retailers expected to jump to $31 billion (CAD) by 2015. U.S. retailers with an e-commerce platform need to identify a solid Canadian supply chain now to maximize revenue later. Learn from the Canadian logistics experts how your business can be successful at transporting your goods across the border into Canada.

Presented by: Purolater

More Podcasts

Export Controls

Will the U.S. government's reform of Export Controls affect your business?
See Poll Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Smoother Moves Calculator

Pacer Smoother Moves CalculatorPacer has designed a unique and easy-to-use tool to help you determine the potential dollar savings and carbon emission reductions generated by using Pacer intermodal services versus trucking.

STAY CONNECTED

Facebook Twitter You Tube