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Starbucks apologises to Mandelson Starbucks apologises to Mandelson
(about 14 hours later)
US coffee chain Starbucks has apologised for comments about the UK economy which prompted a four-letter word tirade from Lord Mandelson.US coffee chain Starbucks has apologised for comments about the UK economy which prompted a four-letter word tirade from Lord Mandelson.
The business secretary hit out at comments by Starbucks chairman Howard Schulz said in a TV interview that the UK was in an economic "spiral". The business secretary hit out at comments by Starbucks chairman Howard Schulz in a TV interview that the UK economy was in "spiral" of decline.
A Starbucks spokesman said there had been no intention by the company to criticise the UK economy.A Starbucks spokesman said there had been no intention by the company to criticise the UK economy.
The peer welcomed the apology, saying he considered the matter closed.The peer welcomed the apology, saying he considered the matter closed.
Lord Mandelson denied Mr Schulz's claim about the economy in an interview with the TV channel. But newspaper reports suggest the business secretary later used abusive language about Mr Schulz. Lord Mandelson appeared on financial channel CNBC shortly after Mr Schulz to rebut his comments.
Speaking at a diplomatic reception in New York, Lord Mandelson is reported by The Daily Telegraph to have launched into an angry tirade against Mr Schulz, saying: "Why should I have that guy running down the country?". But speaking later at a diplomatic reception in New York, he is reported to have launched an angry tirade against the Starbucks boss, saying: "Why should I have that guy running down the country?".
He then reportedly used a four-letter word to ask who Mr Schulz was, adding: "How the hell are they [Starbucks] doing?"He then reportedly used a four-letter word to ask who Mr Schulz was, adding: "How the hell are they [Starbucks] doing?"
Closures
Asked to comment on the story, a spokesman for Lord Mandelson said: "We don't stand by the language. But we do stand by the sentiment."Asked to comment on the story, a spokesman for Lord Mandelson said: "We don't stand by the language. But we do stand by the sentiment."
Starbucks has recently announced the closure of nearly 1,000 unprofitable shops around the world. Closures
Mr Schulz's criticism came in an interview with Maria Bartiromo, of US financial channel CNBC, where he was promoting the launch of a new product. Mr Schulz's criticism came in an interview with CNBC's Maria Bartiromo.
I am glad that Mr Schultz has stepped back from his original remarks. I made my point and regard the matter as closed. Lord MandelsonI am glad that Mr Schultz has stepped back from his original remarks. I made my point and regard the matter as closed. Lord Mandelson
He was quizzed about international business conditions and the economic situation in the UK, telling Ms Bartiromo: "Unemployment, the subprime mortgage crisis specifically in the UK, and I think consumer confidence in the UK is very, very poor." Quizzed about international business conditions and the economic situation in the UK, he said: "The place that concerns us the most is western Europe and specifically the UK."
He added: "Unemployment, the subprime mortgage crisis specifically in the UK, and I think consumer confidence in the UK is very, very poor."
Lord Mandelson appeared on the same programme an hour later to insist Mr Schulz was wrong about the British economy.Lord Mandelson appeared on the same programme an hour later to insist Mr Schulz was wrong about the British economy.
He said: "The UK is not spiralling, although I have noticed that Starbucks is in a great deal of trouble. But that may be because of their overexposure given the state of the market. So please do not project Starbucks onto the UK economy as a whole."He said: "The UK is not spiralling, although I have noticed that Starbucks is in a great deal of trouble. But that may be because of their overexposure given the state of the market. So please do not project Starbucks onto the UK economy as a whole."
But the Starbucks spokesman insisted there had been no intention to criticise the performance of the British economy.But the Starbucks spokesman insisted there had been no intention to criticise the performance of the British economy.
"It is a difficult economic situation in the US and around the world. Please be assured that Starbucks has no intention of criticising the economic situation in the UK," he said."It is a difficult economic situation in the US and around the world. Please be assured that Starbucks has no intention of criticising the economic situation in the UK," he said.
"The reality of the global economy is that no country is immune to the difficulties. We are all in this together and as a global business we are committed to each and every market we serve. "The reality of the global economy is that no country is immune to the difficulties. We are all in this together and as a global business we are committed to each and every market we serve."
Lord Mandelson said: "I am glad that Mr Schultz has stepped back from his original remarks. I made my point and regard the matter as closed."Lord Mandelson said: "I am glad that Mr Schultz has stepped back from his original remarks. I made my point and regard the matter as closed."
Starbucks recently announced the closure of nearly 1,000 unprofitable shops around the world.