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Starbucks has named Laxman Narasimhan its new CEO.
The coffee giant said Mr Narasimhan will join Starbucks after moving from London to Seattle, where the company is based, on October 1.
He will work closely with Starbucks interim CEO Howard Schultz until April 1, when he will assume the CEO role and join the company’s board of directors.
Mr. Schultz said Mr. Narasimhan was “uniquely positioned” to lead the company, with a proven track record of growth in both mature and emerging markets.
“When I had the opportunity to get to know him, it was clear that he was as passionate as we are about investing in people and our commitment to our partners, customers and communities,” Mr. Schultz said in a statement.
Mr. Narasimhan most recently served as CEO of Dettol-to-Vanish company Reckitt, a UK-based consumer health, hygiene and nutrition company.
Reckitt announced Mr Narasimhan’s unexpected departure earlier on Thursday.
Prior to that, Mr. Narasimhan held various leadership roles at PepsiCo, including as Global Chief Commercial Officer.
He also serves as CEO of the company’s Latin America, Europe and Sub-Saharan Africa operations.
Mr. Narasimhan also served as a senior partner at McKinsey & Company, focusing on its consumer, retail and technology practices in the US, Asia and India.
Mr. Schultz, a longtime CEO who helped shape Starbucks after its 1987 acquisition, retired as interim CEO in March after the company’s former CEO Kevin Johnson announced his retirement. .
Mr. Schultz has also returned to the company’s board and will remain on the board even after Mr. Narasimhan takes over.
Mr. Schultz said he did not plan to return but wanted to help reshape the company after the pandemic, which upended Starbucks’ coffee shops and accelerated changes, including larger drive-thru orders.
Mr. Narasimhan has taken over a strong company.
Starbucks reported record demand in the April-June period, as strong U.S. sales compensated for continued closures in China, the company’s second-largest market.
But Starbucks also faces challenges.
Mr. Schultz has been working on a plan to revamp store layouts, upgrade equipment and strengthen staff who have come out of the pandemic feeling harassed and undervalued.
Starbucks announced a $1bn (£866m) investment in staff wages and benefits last autumn, and added $200m (£173m) in May for payments, staff training and other benefits.
Still, the company faces an unprecedented effort to unionize, which it opposes.
At least 233 U.S. Starbucks stores have voted to unionize since late last year.
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