Laxman Narasimhan Appointed As New CEO Of Tata Starbucks
Laxman Narasimhan, an Indian-origin executive, has officially assumed the role of Chief Executive Officer of global coffee giant Starbucks, joining a growing cohort of business leaders from India at the helm of global corporations. Starbucks announced in September of last year that Narasimhan would become the company's next chief executive officer and a member of the Starbucks Board of Directors.
Following a global search for a new leader to succeed company founder and now former CEO Howard Schultz, Narasimhan joined Starbucks as the company's incoming CEO on October 1, 2022, after relocating from London to the Seattle area.
“Laxman Narasimhan has assumed the position of chief executive officer and will join the company’s board of directors,” Starbucks said in a statement. Narasimhan will lead Starbucks Annual Shareholder Meeting on March 23.
“As he ascends into the role, Narasimhan will continue engaging the leadership team, sharing his early learnings and perspectives and assessing opportunities for the company as they chart a path forward,” the company said.
Narasimhan, the former CEO of the UK-based consumer health, hygiene, and nutrition multinational Reckitt Benckiser, brings nearly 30 years of experience leading global consumer goods businesses and advising retailers, grocery stores, restaurants, and e-commerce companies to Starbucks.
According to the company, he has been on a unique immersion experience for the past five months, travelling to work with employees in over 30 stores, manufacturing facilities, and support centres around the world, "earning his barista certification" along the way. "I am humbled to officially step into my role as Starbucks CEO, leading our incredible team of more than 450,000 green apron partners around the world," Narasimhan said in a statement.
He said the foundation laid by Schultz “building from scratch an iconic global brand fuelled by a lasting passion to uplift humanity” is truly astounding, "and I am honoured to have the opportunity to build on this deep heritage. "As a human connection business, we have endless possibilities to deliver for our partners, our customers, our investors and our communities through every cup and every connection. I am excited to work alongside our partners worldwide to unlock the boundless future of Starbucks.”
Narasimhan's appointment adds to the growing list of Indian-origin CEOs at the helm of global behemoths, which includes Microsoft CEO Satya Nadella, Adobe CEO Shantanu Narayen, Alphabet CEO Sundar Pichai, and IBM Chairman and Chief Executive Officer Arvind Krishna. Indra Nooyi was PepsiCo's CEO for 12 years before retiring in 2018. Former Mastercard CEO Ajay Banga was nominated by US President Joe Biden to lead the World Bank last month.
Narasimhan graduated from the College of Engineering at the University of Pune, India, with a degree in Mechanical Engineering. He also holds a Master of Arts degree in German and International Studies from The Lauder Institute at The University of Pennsylvania, as well as a Master of Business Administration degree in Finance from The Wharton School of The University of Pennsylvania.
Starbucks announced a companywide reinvention strategy and continues to invest more than USD 1 billion in retail partners and stores for prioritised areas such as increased pay and sick time accrual, new financial well-being benefits, modernised training and collaboration, store innovation and equipment, and coffee celebration.
According to the statement, Narasimhan's "intensive immersion" into the business, combined with his extensive experience as a proven brand builder, innovator, and operator, has uniquely prepared him to lead Starbucks into its next phase of growth.
“This immersion has bolstered Laxman’s understanding of Starbucks culture and values. In this time of learning and listening, he has already won the hearts and minds of our partners around the world,” Hobson said.
Narasimhan previously worked at PepsiCo in a variety of leadership roles, including global chief commercial officer, where he was responsible for the company's long-term growth strategy and commercial capabilities. Prior to joining PepsiCo, he worked for McKinsey & Company, where he advised companies in the retail, consumer goods, and healthcare industries in the United States, Asia, and India. According to Starbucks, he is a board member of the Brookings Institution, a member of the Council on Foreign Relations, a member of the UK Prime Minister's Build Back Better Council, and a member of Verizon's Board of Directors.