Starbucks resumes new product launches a month after suspending them over 'Tank Day' controversy

[Financial News]  Starbucks Korea will resume the launch of new products, which it had suspended after the controversy over its "Tank Day" event, more than a month later. However, the company is reportedly not holding its flagship brand event, the "Summer e-Frequency" campaign.

According to The Economist on the 17th, Starbucks Korea will roll out summer-season products, including beverages, food and MD items, in stages starting on the 23rd. The company has recently notified employees through its internal bulletin board and is reportedly reviewing its new product operation plan.
This is the first time Starbucks Korea has resumed new product launches since the controversy over "Tank Day" last month. Right after the dispute, the company temporarily suspended new product launches and various promotion plans, effectively scaling back its marketing activities.
The controversy began with the "Tank Day" promotion held by Starbucks Korea on May 18. Some consumers criticized the event name and the phrase "Bang on the desk!" used in promotional copy, saying they were inappropriate expressions that evoked the May 18 Democratic Uprising and Park Jong-chul.
As the backlash grew, Shinsegae Group dismissed Son Jeong-hyeon, the head of Starbucks Korea, that same day. Chung Yong-jin, chairman of Shinsegae Group, later issued a public apology and announced plans to provide history education for employees as part of efforts to contain the fallout.
The new product launch will take place shortly after the history education scheduled for the 22nd. Shinsegae Group has decided to conduct store-by-store history education for partners at outlets nationwide after an early closing at 3 p.m. on the 22nd.

Industry observers believe Starbucks is moving to restart new product launches because of its contractual relationships with suppliers. They note that developing new products and running promotions typically requires months of preparation with partners, so delaying schedules for too long could place a financial burden on suppliers.

Accordingly, the company will go ahead with summer new product launches but will not hold the large-scale annual marketing event, the "Summer e-Frequency," this year.

y27k@fnnews.com Seo Yoon-kyung Reporter