# Starbucks taps head of Lysol maker Reckitt as its new CEO Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-02 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Starbucks names Laxman Narasimhan as next CEO to lead Meta Description: Starbucks chooses Laxman Narasimhan, former Reckitt CEO, to lead a 'reinvention' of the coffee chain amidst unionization, COVID restrictions in China, URL: https://financedigest.com/starbucks-taps-head-of-lysol-maker-reckitt-as-its-new-ceohtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-02t004408z3lynxmpei80279rtroptp4starbucks-results-1736815300695-compressed.jpg) NEW YORK (Reuters) -Starbucks Corp on Thursday named Laxman Narasimhan as its next chief executive officer, choosing an executive credited with revitalizing the maker of Lysol disinfectants to undertake a “reinvention” of the world’s biggest coffee chain. Narasimhan was CEO of Reckitt, which also makes Durex condoms, Enfamil baby formula and Mucinex cold syrup. He announced his departure from that post earlier in the day, and FTSE-listed Reckitt’s shares fell 4%. Starbucks faces a turbulent period. More than 200 of its U.S. stores have unionized in the past year, with workers pushing for better benefits and wages at a [time of surging inflation](https://www.financedigest.com/love-in-a-time-of-inflation-how-much-will-valentines-day-set-you-back.html "Love in a time of inflation: how much will Valentine’s Day set you back?"). The company is also reworking its [business model from a focus on cafes that encouraged long visits to mobile](https://www.financedigest.com/why-mobile-apps-are-crucial-for-a-successful-business.html "Why Mobile Apps are Crucial for a Successful Business") pickup and delivery, while facing higher costs for ingredients and labor. Also, [COVID restrictions in China](https://www.financedigest.com/who-urges-china-to-share-specific-data-regularly-on-covid-situation.html "WHO urges China to share specific data regularly on COVID situation") have slowed the U.S. coffee chain’s [business in one of its biggest overseas markets](https://www.financedigest.com/global-sulfate-free-body-wash-market-business-opportunities-current-trends-growth-market-forecast-global-industry-analysis-by-2029.html "Global Sulfate Free Body Wash Market: Business Opportunities, Current Trends, Growth, Market Forecast & Global Industry Analysis By 2029"). Narasimhan will join Starbucks in October but will take the helm in April 2023, after spending a few months learning about the company and its “Reinvention” plan, which includes paying better wages for baristas, improving employee welfare and customer [experience and re-imagining stores](https://www.financedigest.com/how-is-modern-technology-shaping-our-in-store-experience.html "How Is Modern Technology Shaping Our In Store Experience?"). Until then, interim-CEO Howard Schultz, who took [back the reins of the company for the third time in April](https://www.financedigest.com/google-mandates-workers-back-to-silicon-valley-other-offices-from-april-4.html "Google mandates workers back to Silicon Valley, other offices from April 4") after Kevin Johnson retired, will continue to lead the company. He is a strategic and transformational leader with deep experience in [building powerful](https://www.financedigest.com/public-power-corp-rwe-to-build-five-solar-farms-in-greece.html "Public Power Corp, RWE to build five solar farms in Greece") consumer brands,” Schultz said in a letter to employees welcoming Narasimhan. BALANCED APPROACH Narasimhan joined Reckitt in September 2019 and was the first external candidate to take the helm at Reckitt since it was formed in 1999. He led the company through the pandemic, which boosted sales of its health and hygiene products, and more recently navigated a baby formula crisis in the United States, culminating in a [raise in its annual](https://www.financedigest.com/deutsche-post-raises-annual-dividend-warns-of-challenging-2023.html "Deutsche Post raises annual dividend; warns of challenging 2023") forecast earlier this year. The 55-year old, who previously worked at PepsiCo as its [global chief commercial officer](https://www.financedigest.com/black-panther-sequel-ignites-box-office-with-330-million-global-debut.html "‘Black Panther’ sequel ignites box office with 0 million global debut"), gained plaudits from Reckitt investors for his management style after helping revitalize the company after a sales slump. He took a very [balanced approach to strategy](https://www.financedigest.com/automotive-balance-shaft-market-competitor-analysis-winning-strategies-and-growth-drivers-2025.html "Automotive Balance Shaft Market Competitor Analysis, Winning Strategies and Growth Drivers 2025") … he didn’t go in all guns blazing – he took a very systematic approach to get things right,” said Ashish Sinha, portfolio [manager at Reckitt shareholder](https://www.financedigest.com/edf-staff-shareholders-file-complaint-over-management.html "EDF staff, shareholders file complaint over management") Gabelli. [Starbucks said Narasimhan will spend his time with Schultz](https://www.financedigest.com/starbucks-schultz-announces-halt-to-stock-buybacks-shares-fall.html "Starbucks’ Schultz announces halt to stock buybacks, shares fall") and the management team, spending time as a barista, meeting employees and visiting manufacturing plants and coffee farms during the transition period. “While we are surprised Starbucks chose a successor outside the discretionary sector, we are optimistic Mr. Narasimhan’s global perspectives as a CEO of a public multinational corporation and background in beverages at PepsiCo will serve Starbucks well into the next chapter,” Cowen analyst Andrew [Charles wrote in a note](https://www.financedigest.com/in-loving-and-devoted-memory-king-charles-handwritten-note-to-late-queen.html "‘In loving and devoted memory’: King Charles handwritten note to late queen"). The coffee chain’s [shares were barely changed](https://www.financedigest.com/bayer-shares-gain-on-prospect-of-second-activist-pushing-for-change.html "Bayer shares gain on prospect of second activist pushing for change") in after-hours trade, gaining less than 1%. They are down 24% since Schultz’s [return as interim CEO](https://www.financedigest.com/factbox-five-facts-about-returning-ubs-ceo-sergio-ermotti.html "Factbox-Five facts about returning UBS CEO Sergio Ermotti"). (Reporting by Siddharth Cavale in New York and Rithika Krishna in Bengaluru; Editing by David Gregorio and Stephen Coates) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---