Starbucks' Global Ambitions To Hedge Against Domestic Growth

We see cautious optimism in US coffee giant Starbucks' strategy to expand its portfolio beyond coffee beverages and into alcoholic drinks. On the one hand, expansions into alcoholic drinks should prove supportive of higher margins for Starbucks. On the other hand, given that the positioning of Starbucks as a premium coffee giant is already well-entrenched among local consumers, it could potentially lose some of its core customers who are looking to indulge themselves in the 'Starbucks coffee experience'. Of greater significance to Starbucks' prospects is its expansion in international markets such as China and India, which should supply more dynamic momentum to its headline growth moving forward.

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