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Why Moscow has no Starbucks

November 15th, 2005 Leave a comment Go to comments

The Russian capital’s love affair with lattes and cappuccinos has been
squarely in the sights of Seattle-based Starbucks for years. So why
hasn’t a city with a gold mine of a coffee-lover market seen its first

Russia’s financial crisis in 1998, Zuykov’s car alarms dealership was
foundering, so he poured his money into acquiring the Russian rights to
foreign trademarks. Then, for the right price, he sold the rights to
the companies that had established those trademarks elsewhere in the
world, effectively forcing them to pay a toll for using their own
corporate identities in Russia.
Zuykov’s company, OOO Starbucks, has no inventory, no personnel and no
experience in the coffee industry. OOO Starbucks does have a logo,
though: a forest green, star-crowned mermaid that is virtually
identical to the Seattle chain’s logo printed on every cup and every
bag of Starbucks coffee.

Zuykov’s company has offered Starbucks
the Russian rights to the trademark for $600,000, though Zuykov said he
would be equally happy opening a Starbucks cafe in Moscow. So far,
Starbucks has refused his offer and instead has waged a legal challenge
to his claim.

via prof_yura

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