Mandelson declares war on Starbucks boss

Lord (Peter) Mandelson has launched a furious attack on Howard Schultz, the head of the Starbucks coffee empire, accusing him of spreading gloom and despondency about the British economy.

Speaking at a diplomatic cocktail party in New York on Tuesday night, the Business Secretary, who was reacting to an interview given by Schultz on the US channel CNBC, said: "Why should I have this guy running down the country? Who the fuck is he?"

To ram home his argument, Mandelson took a swipe at Schultz’s company, saying: "How the hell are they [Starbucks] doing?" He has a point: the coffee chain saw a 69 per cent drop in profits in the three months to December and it is shutting 300 stores, in addition to 600 closures last year, at a cost of nearly 7,000 jobs.

Mandelson unleashed his tirade on the 'Cappuccino King' in front of legions of journalists at the official residence of the British consul-general. Schultz had singled out Britain as a source of anxiety for Starbucks. "The place that concerns us the most is western Europe, and specifically the UK," he said. "The UK is in a spiral."

Clearly Mandelson’s attack had been simmering all day as he had been in the same television show when Schultz made the remarks. As soon as he got on air he rebutted the claims, but he left it until later in the day to vent his spleen. ·