Attorneys and judges who make our criminal system work have been talking for some time about “CSI Syndrome.”  
That is the level of expectation for evidence that has developed in the U.S. since the year 2000 when Crime Scene Investigators, or CSI Las Vegas, joined the CBS lineup.
It broke a long line of police shows by focusing not on detectives, but on the crime scene analysts who work behind the scenes to solve cases.
Its success spawned two other franchises in the series, CSI Miami and CSI New York. With the original CSI Las Vegas in its 12th season, an estimated 70 million worldwide are CSI addicts.
Those who work the criminal courts say juries increasingly expect to see some CSI tricks or they must acquit.  On CSI, they will find the DNA match in the belly of the whale just before the last commercial.
It leaves juries bored with the sort of circumstantial and less dramatic direct evidence that has long been used in criminal trials.
CSI Syndrome is also being played out in foodborne illness investigations.  
For most of the last 180 years or so – -ever since Dr. John Snow pinned responsibility for the SoHo outbreak on contaminated water from London’s Broad Street pump — the science of epidemiology has been used to control outbreaks caused by bad food and/or water.
And now microbiologists can run a pulsed field gel electrophoresis (PFGE) test to do bacterial typing.  When there is a PFGE match between an infected person and a contaminated food, there is no more doubt or debate.
But does that mean that when bacteria cannot or is not retrieved from left over food, and no PFGE genetic fingerprinting is possible, that the suspected source is off the hook?
Only on CSI.
Yet two daily newspapers this week left readers thinking otherwise.
In two separate cases, one involving sprouts in Idaho and the other involving raw milk in South Carolina, post outbreak sampling  by the U.S. Food and Drug Administration (FDA) failed to turn up any of the suspected bacteria in left over product.
Both Idaho’s Evergreen Produce, thought to be the source of a Salmonella outbreak that infected 13, and South Carolina’s Tucker Adkins Dairy, the likely source of raw milk contaminated with Campylobacter that sickened eight, made the most out of negative tests.
Their local newspapers, especially the Herald of Rock Hill, SC, played up the tests results more like an acquittal in a criminal trial rather than a small piece of an ongoing foodborne illness investigation.  Many of the local reader comments were congratulating Tucker Adkins for having been “cleared.”
While there is nothing better than being found innocent in your local newspaper, the failure of the Spokesman Review and Rock Hill Herald to go into enough detail on how foodborne  illness investigations work is another CSI moment.
While the Idaho sprout producer may have suffered the most severe economic consequences, the raw milk dairy in South Carolina may have what we in the news business call “legs.”
Ever since FDA said the SC dairy was likely responsible for a Campylobacter outbreak in North Carolina, there’s been a larger than normal interest in it. Raw milk advocates even cried foul because FDA put out a news release on it over a weekend. (They must not realize that late night and weekend news releases on outbreaks and recalls are pretty much the norm, not the exception).
Tommy and Carolyn Adkins have now enlisted help from Pete Kennedy, executive director of Farm-to-Consumer Legal Defense Fund. FDA is confronted with what it will do about one of its prime directives — stopping raw milk from entering interstate commerce.
So when FDA asked her for a list of her customers, Carolyn Adkins said she knew them only by “their first name, by their prayer needs, by their family needs,” but not by their last names or addresses.  It was as good as telling FDA to  ”go pound sand.”
Some bacteria and pretty PFGE picture would have ended this one inside a CSI hour, but that is not going to happen now.

“Dead Milk” 23, “Magic Milk” 202
So, who is winning?
I was asked to talk with Sally Fallon Morrell on the Kojo Nnamdi show on WAMU Public Radio in D.C. last week in what the host determined to be the “Raw Milk Wars.”  The producer who called me said that she had tried to find someone, anyone, in public health to go on the show, but everyone refused. So, she was left with me.
Sally, who has become famous for her pronouncement that raw milk is “magic” was pleasant enough, as were the host and the callers — even my friend Harry. Some of the comments on the WAMU were a bit harsh, but after two decades of being a lawyer, I am more than used to that. I especially warm to the comments by members of the “Teat Party.”
I was struck by a number of things Sally said during the show.  One assertion she said made me think I need to do the experiment she suggested of putting Campylobacter in raw milk, leaving it in the fridge for two days with the bottle cap off and, like magic, the Campylobacter disappears.
I was not at all surprised that she mentioned that between 3% of people in the U.S. consume raw milk — recent CDC’s FoodNet data supports that.  In comparison, 78.5% of people in the survey reported drinking pasteurized milk.  That is about 26 times more people drinking pasteurized milk than raw milk, so wouldn’t you expect most illnesses to be from pasteurized milk since so few people actually drink raw milk? This gets me back to the “Dead Milk” 23, “Magic Milk” 202 score — who is winning?
I have been keeping track of “Outbreaks, Illnesses and Recalls Linked to Raw (Unpasteurized) and Pasteurized Dairy Products, United States since January 1, 2010 – July 30, 2011.”  Here is the breakdown:
Outbreaks
• 18 raw dairy outbreaks with 202 illnesses, 24 hospitalizations, and no deaths (16 fluid raw milk, 2 aged raw milk cheese)• 1 pasteurized dairy outbreak with 23 illnesses, 2 hospitalizations, and no deaths• 1 queso fresco Mexican-style cheese outbreak with 5 illnesses and hospitalizations, no deaths• 3 sporadic illnesses and hospitalizations from illegal Mexican-style cheese, no deaths
Recalls (no illnesses reported)
• 11 raw dairy (5 fluid raw milk, 6 aged raw milk cheese)• 6 queso fresco Mexican-style cheese• 1 chocolate milk due to inadequate pasteurization• 1 imported Italian cheese made from pasteurized milk
I know, I know David, some of the raw milk outbreaks and recalls are from raw milk that is intended to be pasteurized, but someone simply could not wait and drank the milk raw.  However, many of the above outbreaks and recalls involved raw milk truly intended to be consumed that way, and the outbreaks and recalls still happened.  Some have also suggested to me that if the cows or goats had been fed grass only, they would be free of pathogens.  This is clearly untrue because most of the “real milk” outbreaks came from grassfed animals on pasture on small, family farms.  Given the amount of pasteurized milk and cheese consumed in the U.S. yearly versus the amount of raw milk and cheese consumed, 23 illnesses (although unacceptable) from heat-treated milk sure seems like the winning side when the raw milk side is sickening 202.
I am sure that David, Young Bill or Sally might well dispute the numbers above or claim the outbreaks did not happen, or the recalls were not necessary, or there is simply a grand conspiracy to try and pry the glass of raw milk or slice of cheese out of their cold dead hands. That is a debate public health should be engaged in.
There was one assertion — well, lie — that Sally made that I cannot let pass.  She flatly said that the 2006 E. coli O157:H7 outbreak that sickened two of my clients severely was not linked to Organic Pastures Dairy raw milk — Sally, it was.  Here are the facts — not the “magic:”
On Sept. 18, 2006, the California Department of Health Services (CDHS) opened an investigation into a possible outbreak of E. coli O157:H7 infections after receiving reports of two patients who had been hospitalized with HUS. One was culture-confirmed as infected with E. coli O157:H7. Interviews revealed that both patients had consumed unpasteurized cow milk sold by Organic Pastures in the week prior to the onset of illness.
In the following days, four additional cases of E. coli O157:H7 were identified. All of the additional cases had consumed raw milk or raw cow product sold by Organic Pastures. Isolates of the E. coli O157:H7 cultured from the five culture-positive patients had indistinguishable “genetic fingerprints,” as determined by pulsed-field gel electrophoresis (PFGE) testing. These PFGE patterns were new to the national PulseNet database. In other words, the pattern associated with all of these children was unique, and had not been seen before in conjunction with any other outbreaks of E. coli O157:H7. In addition, the PFGE pattern differed markedly from the patterns associated with the outbreak of E. coli O157:H7 associated with Dole fresh-bagged baby spinach that had peaked a few weeks prior to these illnesses.
CDHS conducted an epidemiological and environmental investigation of the cluster of illnesses. A review of 50 consecutive E. coli O157:H7 cases reported to CDHS from October 2004 to June 2006 revealed that 46 of 47 cases asked about raw milk consumption reported no raw milk consumption. In contrast, five of the six patients in the cluster being investigated reported definite consumption of Organic Pastures raw dairy products. The sixth denied consuming the raw milk, but his family routinely consumed Organic Pastures raw milk during the suspected time frame. Two of the children (one that was stool culture negative for E. coli O157:H7) developed hemolytic uremic syndrome (HUS).
The California Department of Food and Agriculture conducted an environmental investigation. As part of the investigation, fecal samples were collected from dairy cows at Organic Pastures. E. coli O157:H7 was isolated from five of the samples, although the PFGE patterns differed from the pattern associated with the outbreak. Testing of Organic Pastures product revealed abnormally high aerobic plate counts and fecal coliform counts. CDHS ultimately concluded: “the source of infection for these children was likely raw milk products produced by the dairy.”  The CDC published this report in 2008.
And, if you want to dig deeper into that outbreak, see this post: “Organic Pastures Dairy E. coli O157:H7 Raw Milk Product Outbreak 2006.”  Download the documents, read them and realize that the defendant had no response — no facts and no experts to support Sally’s contention that the illnesses were caused by spinach.  Given that all of the six consumed Organic Pastures raw milk and not all of the six consumed spinach and none of them consumed Dole spinach, it is time for Sally to stop the big lie.
It is past time for the raw milk industry — yes, you are an industry — to embrace the facts and embrace the truth about raw milk outbreaks.  It is time to put the conspiracy theories away and learn from mistakes.  Learning is the only way to avoid being on the losing side of outbreaks and that is something we all can agree is worth it.
For more information about raw milk, visit www.realrawmilkfacts.com or see our poster, which  we are presenting at IAFP.

An Arizona company is recalling an undetermined amount of meat
products because the products were produced without federal inspection,
the U.S. Department of Agriculture’s Food Safety and Inspection Service
(FSIS) announced late Thursday.
SHSCO
Manufacturing of Phoenix sold the products for institutional and/or
individual consumer use in Arizona and Nevada under several brand names:
Stanley’s Home Made Sausage Company, Stanley’s Home Made Polish Sausage
Company, Stanley’s Jerky Company and Banat.
FSIS has received no reports of illness due to consumption of these products. 
In
a news release, FSIS said the problem was discovered by its
personnel and is the subject of an ongoing investigation. “FSIS may take
additional regulatory action based on the results of this
investigation,” the agency said.
The items being recalled are:
Products sold under the brand name Stanley’s Home Made Sausage Company: 
Fresh Pork Chorizo Sausage
Fresh Andouille Sausage
Smoked Spicy Andouille Sausage
Double Smoked Polish Sausage
Smoked Polish Sausage
Fresh Hot Italian Sausage
Cured Hot Italian Sausage
Cold Smoked Mild Hungarian Sausage
Fresh Mild Hungarian Style Sausage
Cured Mild Hungarian Style Sausage
Cured Spicy Hungarian Style Sausage
Fresh Spicy Hungarian Style Sausage
Smoked Spicy Hungarian Style Sausage
Smoked Round Sausage
Summer Sausage
Knockwurst
Smoke Yugoslavian
Canadian Bacon
Irish Bacon
Smoked Pork Bacon
Ham Salami
Pork Butts
Premium Oven Roasted Roast Beef
Products sold under the brand name Banat:
1-lb. packages of Smoked Bacon
Smoked Ham Salami
1 lb. packages of Smoked Spicy Andouille Sausage
Smoked Hungarian Sausage
Smoked Pork Shoulder
Products sold under the brand name Stanley’s Home Made Polish Sausage Company:
Pork Bacon
Canadian Bacon
Polish Sausage
Kabanosi
Natural Skin Casing Hot Dogs
Products sold under the brand name Stanley’s Jerky Company:
4-oz. packages of Mild Mannered Beef Strips, Original Flavor
4-oz. packages of Mild Mannered Beef Strips, HOT N SPICY
4-oz. packages of Mild Mannered Beef Strips, TERIYAKI
Products prepared for institutional use only:
Smoked Andouille Sausage, item #1547
Smoked Spicy Hungarian
Cooked Ham Salami
Smoked Pork Belly (Slab Bacon), item #8530
PORK Weiner, item #2050
The products bear the establishment numbers “EST. 34532″ or “EST. 44139″ in the USDA mark of inspection.
Consumer questions regarding the recall should be directed to the company owner, Marko Stevanovic at 602-432-4707.

An outbreak already infecting 77 people in 26 states with Salmonella Heidelberg prompted an unusual public health alert late Friday about the “critical importance” of safe handling of ground turkey.
The alert about all frozen and fresh ground turkey was issued by the U.S. Department of Agriculture (USDA) through its Food Safety and Inspection Service (FSIS), which regulates meat and poultry. A public health alert not involving a specific brand or product recall is a rare action for USDA.
With the public health alert came the first notice that the federal Centers for Disease Control (CDC) and state health departments have identified and are investigating the multistate outbreak of Salmonella Heidelberg.
“The public health alert was initiated after continuous medical reports, ongoing investigations and testing conducted by various departments of health across the nation determined there is an association between consumption of ground turkey products and an estimated 77 illnesses reported in 26 states,” the USDA statement says.
CDC and state health departments made the link through epidemiological investigation and pulsed-field gel electrophoresis (PFGE) analysis, according to the FSIS.  While CDC and the state health departments are investigating the outbreak, FSIS said it is working to determine the source of the contamination.
That indicates the agency does not have enough information to recall specific products, but is trying to guard against new illnesses by educating consumers about ground turkey in general.
Bill Marler, food-safety attorney and publisher of Food Safety News, said he found the timing of the alert, which was issued Friday at 8 p.m. EDT, somewhat perplexing. “This is classic ‘release news when no one will see it.’  The release, other than saying 77 people in 26 states are sick from possibly eating ground turkey, gives the consumer no information — no manufacturer, no states named where people are ill.
“Also, from the point of view of ground turkey manufacturers, is it right to throw the entire industry under the bus?,” Marler asked.
In April, FSIS did conduct a fairly large recall (54,960 pounds) of frozen, raw turkey products from Minnesota-based Jennie-O Turkey Store because of Salmonella contamination, but the serotype in that instance was Hadar, not Heidelberg. Twelve people in 10 states were sickened.
In its news release, FSIS reminds consumers of “the critical importance of following package cooking instructions for frozen or fresh ground turkey products and general food safety guidelines when handling and preparing any raw meat or poultry” and urges people to use a meat thermometer.
“In particular, while cooking instructions may give a specific number of minutes of cooking for each side of the patty in order to attain 165 °F internal temperature, consumers should be aware that actual time may vary depending on the cooking method (broiling, frying, or grilling) and the temperature of the product (chilled versus frozen) so it is important that the final temperature of 165 °F must be reached for safety. Please do not rely on the cooking time for each side of the patty, but use a food thermometer.
“Ground turkey and ground turkey dishes should always be cooked to 165 °F internal temperature as measured with a food thermometer; leftovers also should be reheated to 165 °F. The color of cooked poultry is not always a sure sign of its safety. Only by using a food thermometer can one accurately determine that poultry has reached a safe minimum internal temperature of 165 °F throughout the product. Turkey can remain pink even after cooking to a safe minimum internal temperature of 165 °F. The meat of smoked turkey is always pink.”
Consumers should also take steps to ensure that raw ground turkey and its juices do not cross contaminate other foods that won’t be cooked or are already cooked. Use hot, soapy water to clean up spills on cutting boards, countertops, dishes and in sinks, and wash hands thoroughly after handling the meat.
Food contaminated with Salmonella can cause salmonellosis, one of the most common bacterial foodborne illnesses.  It can be  life-threatening, especially to those with weak immune systems, such as infants, the elderly and persons with HIV infection or undergoing chemotherapy. 
The most common symptoms of salmonellosis are diarrhea, abdominal cramps, and fever within eight to 72 hours. Additional symptoms may be chills, headache, nausea and vomiting that can last up to seven days.
Salmonella Heidelberg is a common strain in the U.S.  Recently associated with a number of outbreaks in nursing homes, it was also the strain involved at A & R Barbeque (also known as A & R Bar-B-Q) in Memphis, the source of an outbreak in 2009.
In Salmonella outbreaks linked to ground turkey, 26 people were sickened with Salmonella Saintpaul in 2008 after eating ground turkey at a private home in Michigan. An outbreak of  Salmonella Typhimurium at a Minnesota restaurant in 2000 was linked to ground turkey; four people — two of them food workers — were infected. 

At last week’s Tales of the Cocktails convention in New Orleans, alcohol and cocktail experts dished out new ingredients and methods for pouring on flavor in cocktails.

SavourEASE
Gina Chersevani, “mixtress,” PS7
Peter Smith, executive chef and owner, PS7

“Savory ingredients are something we use all the time in cocktails,” said Gina Chersevani, “mixtress” at PS7 in Washington, D.C. Mint a prime example of this. Chersevani suggested that other ingredients frequently used in kitchens could shift to the bar. She does that regularly by collaborating with Peter Smith, executive chef and owner of PS7.

First, know your herbs. Depending on herb, handling and usage vary if you want to get the most out of them. Hard herbs, such as thyme and rosemary, can be handled more roughly than soft herbs, such as basil or mint.

“Your hands are your worst enemies,” Chersevani said. And little things, such as temperature, can change the qualities of an herb.

RELATED: Tales of the Cocktail 2011: More than alcohol

Even the common practice of placing mint in a glass of water on the bar can change its nature. The herb absorbs water, which can dilute its flavor. Smith advised storing herbs dry and picking, cleaning and placing them in a container immediately before service.

An herb’s characteristics also determine how it is used, whether fresh, steeped or cooked.

Salt is for flavor. Just as a little salt goes a long way in baking sweets, a little salt can add contrast or bring out flavors that add depth to a drink. Different salts in restaurant kitchens and pantries can be used in drinks to achieve different effects.

For example, Chersevani’s recipe for a cocktail called The Decoy calls for a pinch of fleur de sel. The drink’s other ingredients include mezcal infused with duck fat flavor (made by a process called fat washing), Cointreau and a house-made orange and sage shrub. The overall effect of the ingredients mimics the flavors of duck à l’Orange, so a little dash of salt made sense not only because the drink is reminiscent of a meat dish but because, “You need salt to break the fat … the fat coats your tongue.”

The sage shrub used in The Decoy also highlighted another kitchen ingredient that Chersevani and Smith said bartenders should reach for more often: vinegar.

Chersevani noted the ease with which different food flavors can be incorporated into drinks by making shrubs. Numerous recipes are available for making shrubs as they, like canning, were a popular preservation method.

Vinegar: The other acid
Kelley Slagle, bartender and mixologist, Hearth Restaurant
Ashley Greene, bartender, Vinegar Hill House
Karl duHoffmann, spirits brand manager, Winebow Inc. and marketing consultant, Orchard Hill Cider Mill

Drinking vinegar isn’t a new invention. Panelist Ashley Greene pointed out several ancient recipes featuring vinegar, such as oxymel, the Greek beverage made with honey vinegar and water, or the Roman variation, Posca, which added coriander seeds to the oxymel equation.

Most people today have probably heard of shrubs, a popular drink during colonial times and on old farmsteads, where vinegar is used to make beverages that soak up the flavors of fruits.

“Without acid in cocktails, we’d have flabby drinks,” moderator Kelley Slagle said of acid’s role in creating balanced drinks.

While much has been made of fresh-squeezed citrus in cocktails, Ashley Greene said vinegars can offer beverages great new tastes.

The wide variety of vinegars from around the world makes it a flexible ingredient that is more shelf-stable than fresh citrus juices like lemon or lime.

While most people are familiar with apple cider, balsamic or sherry vinegars, which are readily available in grocery stores, vinegars are also made from ingredients such as coconut, mango and maple.

A scientific study showed that at equal weight, acetic acid is more than triple the molar mass of citric acid — or the amount of a substance packed into a certain weight on a molecular level — the panel said. So in a drink, the vinegar used would be about a third the amount of fresh citrus juice, duHoffman said.

Slagle also suggested using vinegar as a base for tinctures, as opposed to the commonly used spirit. She experimented with spice and vinegar combinations, such as fennel and white wine vinegar, and cacao bean and balsamic vinegar, to add a different sort of punch to classic drinks.

When she added a fennel and white wine vinegar tincture to a Manhattan, she found that it “kind of turbo-charged” the flavors.

Greene and Slagle gave two different takes on apple cider vinegar.

The Jimmy Bedford, by Slagle, calls for Jack Daniels, pickled apple syrup, a splash of soda with fresh pressed apple juice and apple cider vinegar, and a pickled apple garnish.

Greene’s The “Greene” Apple cocktail was created during her time at Tailor, a molecular gastronomy-minded restaurant in New York City. Apple cider vinegar, maple syrup, lemon juice, apple cider, and applejack were shaken and topped with apple cider foam.

H2O Cocktails
Kathy Casey, celebrity chef and mixologist
Tony Abou-Ganim, mixologist, beverage consultant and National Ambassador of the U.S. Bartender’s Guild
Thomas Kuuttanen, master blender, Purity Vodka

Using flavored waters in lieu of juices adds to the bartender’s bag of tricks. Bartenders can make their own flavored waters, Kathy Casey said, which can satisfy current consumer preferences for drier flavors and lower-calorie drinks.

“It’s important … to get the best-picked things,” Casey said of ingredients used to make flavored waters. Unlike juices or purees, flavored waters taste subtler, so the best ingredients mean the best flavors. Cut ingredients small to increase the surface area, allowing flavors to come out.

While the ingredients should be chopped small, they shouldn’t be pureed and mixed into the water or muddled, Casey said, since that gives the flavored water a muddy look.

Water, the main ingredient, should be distilled and cold, since hot water can change the property and flavor of fruits or vegetables.

Ingredients should sit overnight, but a soda siphon canister, without plugging in the CO2 cartridges for carbonation, can be used to create a vacuum and speed up the process.

Once the water has had a chance to absorb flavors, the ingredients are strained.

Be sure to taste your ingredients. Fruits, vegetables, herbs and even spices can be used to create flavored waters, but they require their own use and handling, so tasting is important. Casey said the same ingredients can have a wide variety of flavors depending on ripeness and variety. An English cucumber is lighter in flavor compared to a Kirby, as it’s hydroponically raised. Make sure spices are toasted lightly, then crushed. Herbs, particularly soft herbs, require extra care and should be handled gently.

H2O cocktails lend themselves to vodka because, as Tony Abou-Ganim explained, the flavors of the water are lighter and more refreshing. “You don’t have to have a big, robust spirit,” he said.

Casey reminded everyone, “We’re not doing juices; we’re going for essences.”

To take your flavored water to the next level, Casey said carbonating flavored water can give it a boost, but wait to carbonate the water until after the flavoring process, since the ingredient can block siphons.

Contact Sonya Moore at sonya.moore@penton.com.

Promising to “go hard and go fast” after growth opportunities ahead, Starbucks officials said the 40-year-old coffee company has never been healthier despite “stubbornly high” commodity costs.

The Seattle-based company booked a 34-percent increase in net income for its latest quarter, and Howard Schultz, Starbucks Corp.’s chair, president and chief executive, outlined strategic plans for the company. He noted accelerated unit growth in the U.S. and overseas, a planned debut of new retail products such as K-Cups and new flavors of instant coffee Via, and a new initiative to build the Tazo brand into a significant player within the $90 billion tea category worldwide.

Schultz told analysts Thursday that Starbucks is ready to “win and win big” with its new three-region global management structure announced earlier this month, which he said will help the company build its international business to rival that of the U.S.

The regions will include China and Asia Pacific; the Americas, including the United States, Canada, Mexico and Latin America; and Europe, including the United Kingdom, Middle East, Russia and Africa, or EMEA.

“I am very confident that it will enable us to maximize our speed, efficiency and ultimately our success as we move ahead all over the world,” said Schultz.

For the quarter, top-line growth and cost-controlling measures have helped mitigate higher commodity costs, primarily coffee, though dairy, cocoa, sugar and fuel also contributed. The company absorbed a hit of 7 cents per share during the quarter because of commodity inflation, it said.

Schultz, however, said coffee prices have retreated somewhat from the high of $3 per pound earlier this year to about $2.40 per pound, and the company has now locked in coffee contracts for 2012.

In the U.S., consumers are responding to the chain’s traffic driving initiatives, said Schultz.

Domestic same-store sales during the third quarter increased 8 percent, which reflected a 6-percent increase in transactions and a 2-percent increase in average check. Menu pricing and incremental food sales, which the company attributed to the chain’s new Petites line of cake pops, mini cupcakes and other small treats, helped to drive check.

Though discounting and other promotional activity offset the benefit of incremental food sales somewhat, Starbucks officials said the average daily transactions per store in the third quarter eclipsed 2006 levels, which was previously the highest year on record.

“Two years ago, when the world was coming to an end, not only were we dealing with the economy, but there was concern about McDonald’s and others,” said Schultz. “I think we’ve done a very good job in creating the kind of experience that really does differentiate Starbucks from everybody else.”

Additional Starbucks updates:

New products. This fall, Starbucks will debut its single-serving K-Cup option, which will initially be available in grocery and other retail mass channels. Late next year, Starbucks locations will also begin selling K-Cups.

The company’s instant coffee, Via, which debuted last year, continues to sell well and is now available in more than 70,000 locations, Schultz said. This fall two new flavors will debut: Breakfast Blend and House Blend.

Tea. Starbucks acquired Tazo Tea in 1999 and Schultz said he is convinced that brand can be built into a billion-dollar business.

“After water, tea is the most consumed beverage on earth,” he said. “We have exciting plans to leverage our global retail store footprint and growing Consumer Product Group presence to go after the tea category in a way we’ve never gone after before.”

In the recent executive reshuffle, Starbucks’ chief marketing officer Annie Young-Scrivner was given the added role of president of the Tazo tea division.

International. Same-store sales in China, where Starbucks has 800 stores and hopes to reach 1,500 locations by 2015, grew in the mid-30-percent range in the third quarter, exceeding levels in the mid-20-percent range earlier this year.

Canada was the softest international market, though same-store sales were positive, the company reported.

Schultz said growth opportunities abound. He pointed to Brazil, a country with fewer than 100 locations that he envisioned could grow to more than 1,000 units.

The company is on track to open its first store in India next year, Schultz said.

In Japan, where a devastating earthquake and tsunami closed nine of 900 Starbucks locations there, Schultz said business was “recovering nicely ahead of plan.”

In 2012, Starbucks expects to open 600 new locations internationally, about 25 percent of which will be in China.

Domestic growth. The U.S. market has not reached a saturation point, said Schultz, and domestic growth will pick up next year. This year, 100 new units were scheduled to open, while next year it will be 200 units.

Schultz said the closure of close to 1,000 U.S. locations during the recession caused the company to stop searching and securing new locations. Now Starbucks is taking a more disciplined approach to real estate acquisition, he said, and it will take time to ramp up that effort. In 2013, U.S. growth will likely accelerate, he said.

Seattle’s Best. Starbucks’ secondary brand Seattle’s Best Coffee, or SBC, was reduced to fewer than 100 retail locations last week after the liquidation of the Borders bookstore chain resulted in the closure of about 248 of the coffeehouse chain’s outlets.

Starbucks officials said the company already took impairment charges for the expected closures, in addition to 228 Seattle’s Best locations in Borders stores that closed earlier this year.

Mobile payment. The use of mobile phone payments has continued to grow among Starbucks customers. Schultz estimated that 1 million mobile devices were loaded with more than $50 million during the quarter, for use in Starbucks.

Contact Lisa Jennings at lisa.jennings@penton.com.
Follow her on Twitter: @livetodineout

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