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Mandelson in hot water for raging: Who the f**k is Mr Starbucks?
Joe Murphy, Political Editor18.02.09
LORD MANDELSON turned the air blue at a diplomatic residence with a four-letter attack on one of the world's most successful businessmen.
The Business Secretary stormed "Who the f*** is he?" when Howard Schultz, the American tycoon behind Starbucks coffee, criticised the British economy.
The incident happened at the British consul-general's residence in New York, where the minister had given a speech to an invited audience of business leaders and VIP dignitaries.
Waiting to give a TV interview afterwards, Lord Mandelson was infuriated to hear Mr Schultz on screen saying Britain's economy was "in a spiral".
He responded angrily to the astonishment of guests: "Why should I have that guy running down the country? Who the f*** is he?".
Lord Mandelson suggested Mr Schultz was deflecting attention from Starbucks' own recent problems, which have led to hundreds of store closures. "How the hell are they doing?" the minister demanded.
An embarrassed Lord Mandelson later conceded he had chosen the wrong words but defended his conduct as "standing up for the UK".
His spokesman later said: "He does not stand by the language but he stands strongly by the sentiment."
Mr Schultz, chairman and chief executive of Starbucks, is hailed for creating a global empire after seeing how popular Milan's famous espresso bars were on a trip to Italy in 1982.
In the television interview seen by Lord Mandelson he claimed Britain was a weak link in the global economy. "The concern for us is Western Europe and specifically the UK," he said. "The UK is in a spiral."
Mr Schultz, whose wealth was estimated at $1.1 billion before the downturn, was asked about the biggest issues for the world economy. He said: "Unemployment, the sub-prime mortgage crisis, particularly in the UK, and I think consumer confidence, particularly in the UK, is very, very poor."
Lord Mandelson responded in more diplomatic terms by giving an interview later which a Whitehall official said "sounded much more like him".
"The UK is not spiralling, though I have noticed that Starbucks is in a great deal of trouble," said Lord Mandelson.
"But that may be because of its overexposure given the state of the market. So please do not project Starbucks on to the UK economy as a whole," he said.
Reader views (49)
I can't believe I'm about to say this:
Good for Peter Mandelson!
- Kate, London
Lord is also a four letter word especially this one.
- Thorrun, Brentwood UK
Peter Mandelson has never run a business and has no understanding how wealth is created. He just spends our money in a wasteful manner.
- Simon Draper, London
I saw both interviews with Erin Burnett on CNBC in New York. Schultz's comments were off-handed and in response to a question-really a bit harmless. He did not seem to want to disparage the U.K. Mandelson's response in a separate interview had an harsh edge. He should have just let it go. The point of his interview was to promote the U.K., not to get into a dispute with a coffee company CEO.
- Richard Haines, Chicago, USA
I like neither Mandelson or Starbucks, but this looks like yet another example of someone running off at the mouth to the media just because it means they can cause trouble for someone else. It seems this is now the international sport of the day.
They 'retire' the IDs of the great ones in sport, honouring them for their contributions - seems like its time to 'retire' the word integrity, that once great human trait.
- Rogan, Irving
Move over Boris Johnson,...........you've got competition!
- Geronimo, LONDON MIDDLESEX
Great that Starbucks's going out of business. Perhaps the little Italian family run cafe will be back. Good, for Mandelson to say what is true. A chain that has spoiled our cup of coffee and has kick off a lot of small business during their expansion to offer the worst coffee ever. The recession will leave us a better nation without Starbuck!
- Maria, London
Hate Starbucks. A chain that has put in so much money to force the family cafe off our high streets. Plus it's coffee is pure rubbish. Perhaps this recession will bring a few things back to our lives.
- Maria, London
Go for it Mandy
Show these bloody yanks whose greed created this crisis that we ll come through it.
Get sick of people putting Britain down.
At least the guy sticks up for the country.
- Jason, Newcastle
This time Lord Mandy is right ! who the heck is Starbucks who in the Uk is sufferig through reckless over expansion and a second rate product that is losing battle to local superier players like Costa and negro
- David Thompson, London
Mandelson can stick this one into his extensive portfolio of faux pas.
This one ranks alongside his characterisation of mushy peas as guacamole.
This idiot should have been banned from public office after his previous misdemeanours, but the Elitist Marxist Bully Boys put him back in office – only for Mandelson then to be let loose on the international circuit to oiffend anything beyond his level of intelligence.
Boffins are not intelligent people. They are ignorant and lack common sense and common courtesy.
Mandelson belongs in a Prison. The problem is, he might just enjoy it too much in there.
- Tangomike, Kensington, London
Foul mouthed idiot !
- Rj, UK
Maybe he was pitching to be the Labour candidate for London Mayor next time.
- Mark Burgess, St Albans
It is interesting if you are in the know, to see the Labour trolls paid to do this work. Mr David Dee from Canterbury is one such, a dead giveaway, his risible use of the phrase "you certainly speak for the many" referring to the unelected, unwanted Madelson, whose crooked doings are an embarrassment to the govt and the country, though not it seems, himself.
Mr Dee would prefer you didn't know he is on Labour's payroll, but he does this full time all over the media, and still says -"well done Gordon"!!!. Who else could love a govt of all the crooks, conmen, and charlatans than someone paid by them?
- 45govt, Bridgetown, Barbados
Nobody is in the least bit interested in what this NuLiebor freak has to say.
- David, Fleet UK
starbucks are part of the homogenisation of the high street making our shopping centres as bland as those in the US. Anything that brings an end to death by cappuccino is to be welcome. Mandy may not know who he is but he is quite right.
- Tim, london
How can insulting current foreign investors and employers in the UK while you are on a trip to the USA desperately begging more American companies to invest in the UK to save the country be described as "sticking up for the UK". Americans should take note although this story didn't make one media report in the USA. The UK should assume the USA doesn't even think about the them while they appear obsessed with the USA and some delusional "special relationship". Time for the UK to move on and find news friends somewhere in the world.
- Kr, Florence Italy
Mandy in hot water?
never, boiling perhaps, with a pinch of hyprocrisy, a
soupcon of economic truth and a dash of dishonesty.
there's tasty.
- M.O'Brien, london.uk
There are many good business men and women suffering through this credit crisis who have given their working lives to building up their business's. And now through no fault of their own are in strife. Lord Mandelson has probably never run a business, employed people and paid them from his own pocket. Like many socialists they haven't a clue what running a business can be like. Howard Shultz doesn't want to close Starbucks cafes. He wants to open them. But if the economy is stuffed he can't, he has to save what he can and take appropriate action. He told the the truth when he said the UK was in a spiral. At the moment it is, economically, and has been for a long time spiritually. Mandelson didn't want to hear it. The UK partied for a long time and as someone wrote recently, the bigger the party the worse the hangover. If Mandelson had had any sound business experience he would know the UK is in deep trouble, but in his privileged position he will never know the real anguish that goes on in an employers mind.
- Cyrjames, Berwick-Upon-Tweed, UK.
I never liked Starbucks coffee, nor its business practices, nor its relentless over-expansion. I rather think that these three factors combined might well be behind a fall in sales, and rightly so. The swivel-eyed reactionaries leaping up and down at the opportunity to criticise our government once again on this forum sound even more ridiculous than normal. Which is saying quite a lot!
- Nick, London
I'm amazed that Mr. Starbuck's and his $1.1billion personal fortune weren't known to Lord Mendacious.
....given his previous record with the rich !
- Cap, London
What gives Mandelson the right to be so 2 faced. He over reacted and was on the defensive, I wonder why? What has he to hide?
- Barbara, Highlands of Scotland
Yes, gredit to mandy for saying what the re3st of us were thinking
- Keith Price, Luton, England
Is Mandy "fit for purpose"?
Did he receive his Lordship for his "creative property dealings"?
- Fraser, Telford Park
Mandelson the Moron!I would sooner have an American friend than be near him
- Vince, London
So now we know how Cabinet meetings are conducted !
Language of the BBC - I was going to say gutter but then I remembered Mr Ross
- Watson, London UK
'...defended his conduct as "standing up for the UK".'
We don't want you in the UK, let alone 'defending' it. When is the election?
- Frank, Home Counties, England. - ( Sick to death of the pandering Liberal-Lefties )
I hate to see so called "Lords" behaving like this and to make matters worse he is being paid by us to represent our interests even though we did not vote for him.
- William, London
What would this Mandelson guy know about business anyway - H'e never had a proper job only jobs paid for by the tax payer - He is not a wealth creator - He has twice been caught out for fraud - The truth of the matter is that Peter Mandelson is out of his depth with entrepreneurs like Shultz. The British Economy has been mismanaged for 12 years by Marxist theorists and is spiraling out of control. What's the point in being a Business Secretary if you can't tell the facts as they are.
- Des Lewis, New York USA
Go, Mandy.
Good to see he hasn't lost his touch to grab a flattering headline.
- Eric Muldownie, London
Starbucks has done well in the UK over the last years-but everyone knows it is a real poor value rip-off.UK customers would be much better off without it. If Mr Schultz thinks the UK is wrong for his business--then let him take his business elsewhere.
- William Grierson, Kimpton-UK
The day i need someone like Mandy to speak for me, is the day i give up.
- Alex, brighton
Credit to Mandy for once - sticking up for the UK. Besides, people are definitely going to think twice about paying at least 2 quid for a lousy coffee when they can't even pay their day-to-day bills....
- Big Daddy, London
Not bad for someone who is unelected, sauntered over the dome disaster, and thinks that it is possible to live on jobseekers allowance in London. He also believes in the tooth fairy and easter bunny.
- Joannie, London, England
Get rid of this useless individual and the ghastly Labour Government. Starbucks employs many people, etc in THIS country.
- Maggi Weller, London, UK
Well done, your Lordship in sticking up for your country. You certainly speak for the many. It does appear as though Schultzy is looking for someone (other than himself) to blame for his recent problems.
I feel that he is looking in the wrong places. Just look in the mirror.
- David Dee, Canterbury
The unelected Lord ?? Mandelson ennobled by the unelected Prime Minister and created Minister should realise that he is held in contempt by the country & citizens he does not represent.
- Doff, filey yorks
Lets be clear without the help of the mighty usa none of us would be in the position we are now in.
Our politicians should defend our nation and if they do it in a very robust way I will fully support them.
Of course some people would rather play at politics than support Britain and I still don't know what Dave and George would do other than sit on their bums.
- Mike Melbourne, Bedford England
It was only a matter of time before he self destructed (again).
- Keith, UK
Who the XXXX is Mr Mandelson? Who elected him to speak for the UK?
- Ian, Reading, England
Does anyone recall voting for Mandelson to be in the current government? No, thought not.
- Paul, London
One thing this wretched Mandelson should know and no amount of lies and spin will change, is that Starbucks Inc. is much better placed to weather this storm than UK Inc.
- Bingham Macnamara, lymington, hampshire
Good for Mandy!
- Rick, London, UK
This man makes me sick, "standing up for the UK" indeed. He is part of the party that's sold the UK out, lining his own pockets in the process.
- Marianne, SW France
Mr Mandelsohn is right-the UK is NOT spiralling.
Plummeting is the appropriate word
thank you,Nu-Labour
- Maura Casey, London UK
Who the is Mr Mandelson?
- Neil M., london uk,
Well done Lord Mandelson, at last a senior politician willing to stand up for the UK!
- Manny Goldstein, London, UK
Mandy, Mandy, Mandy..... What have YOU achieved in the REAL world?
Yes, Mr Mandelson, the UK is in a spin... just read the papers. And it is starting to affect ALL of US. Unless you live in a £2.4m house in Regent's Park, that is. Leave it out, Mandy, you're cover's blown.
- Haskey, London
What is Mandelson going on about???
How does he take, "The concern for us is Western Europe and specifically the UK," he said. "The UK is in a spiral.", and arrive at doing the country down?
The key word is "us". Maybe Mandelson (and others, it appears) is too stupid to get it, but by using the word "us" he means Starbucks...a concern for Starbucks is Western Europe, with the UK specifically in a spiral, in terms of their trade.
At least Mr Schultz has built a business, that has employed people and helped to maintain production and distribution elsewhere.
What has Mandelson ever done? What right does he have to speak for me...he's not even elected.
- Escobar A-Lop-Lop, Camden County
