Operational and Brand Initiatives Gaining Traction
SEATTLE--(BUSINESS WIRE)--Mar. 18, 2009--
Starbucks Coffee Company (NASDAQ:SBUX) today held its Annual Meeting of
Shareholders in Seattle where Howard Schultz, chairman, president and
ceo, outlined the company’s strategy to grow for the long term.
“Despite the challenging economic environment, Starbucks is profitable,
has a strong balance sheet and generates solid cash from operations,”
said Schultz. “Our customers’ connection with, and trust in the
Starbucks brand remains at a high level. We are laser-focused on
delivering the finest quality coffee and getting the customer experience
right every time.”
“We’ve also been putting our feet into the shoes of our customers and
are responding directly to their needs,” said Schultz. “Our customers
are telling us they want value and quality and we will deliver that in a
way that is both meaningful to them and authentic to Starbucks.”
During the Annual Meeting, Troy Alstead, executive vice president, chief
financial officer and chief administrative officer, underscored the
company’s strong financial position and outlined a two-fold growth
strategy for the company.
Starbucks has focused its attention on increasing profits in existing
stores by:
-
Aligning the company’s cost structure to its current business strategy
with a planned $500 million structural expense reduction in fiscal
2009;
-
Improving operational efficiencies and making technology investments;
-
Meeting customers’ needs for value and quality; and
-
Investing in the tools and training store managers need.
The company is also making strategic investments in key initiatives by:
-
Entering the $17 billion instant coffee market earlier this month with
the launch of Starbucks VIA™ Ready Brew instant coffee;
-
Growing its consumer products, licensed stores and foodservice
channels; and
-
Focusing on disciplined global store expansion in key markets.
“Our customers like the changes we’ve been making, even as the economic
environment is impacting the way customers interact with companies and
brands,” said Schultz. “The health of the company, the continued
relevance of the brand and our disciplined go-forward plan make us
optimistic about Starbucks future.”
As part of the meeting, shareholders re-elected the current board
members as well as two new board members, Kevin R. Johnson, chief
executive officer of Juniper Networks, Inc.; and Sheryl Sandberg, chief
operating officer of Facebook, Inc. to the Starbucks Board of Directors.
Both individuals have strong technology backgrounds and bring extensive
business strategy and operational execution experience, as well as
expertise in managing a high-performance business with a diverse and
global workforce.
Shareholders also approved a proposal to allow for a one-time stock
option exchange program, which would give eligible partners (employees)
a one-time opportunity to exchange certain outstanding underwater stock
options for a lesser amount of new options that will be granted with
lower exercise prices. The program would be approximately
expense-neutral to the company from an accounting perspective.
In 1991, Starbucks adopted a broad-based stock option program that
provides annual grants to eligible partners – from baristas to top
management – encouraging its partners to act like owners of the
business. Members of the company’s board of directors and senior
leadership would be excluded from participating in the option exchange
program.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting the highest quality arabica coffee in the
world. Today, with stores around the globe, the company is the world’s
premier roaster and retailer of specialty coffee. Through our unwavering
commitment to excellence and our guiding principles, we bring the unique Starbucks
Experience to life for every customer through every cup. To share in
the experience, please visit us in our stores or online at www.starbucks.com.
Even though the requisite shareholder approval has been obtained,
Starbucks may still decide later not to implement the stock option
exchange program described above. Starbucks will file a Tender Offer
Statement on Schedule TO with the Securities and Exchange Commission
(SEC) upon the commencement of the option exchange program. Persons who
may be eligible to participate in the option exchange program should
read the Tender Offer Statement on Schedule TO, including the offer to
exchange and other related materials, when those materials become
available because they will contain important information about the
option exchange program. Starbucks will deliver the tender offer
documents to all eligible partners free of charge when the tender offer
commences, and Starbucks shareholders and option holders will be able to
obtain these written materials and other documents filed by Starbucks
with the SEC free of charge from the SEC’s website at www.sec.gov.
Source: Starbucks Coffee Company
Starbucks Coffee Company
Media:
Deb Trevino,
206-318-7100
press@starbucks.com
or
Investors:
JoAnn
DeGrande, 206-318-7118
investorrelations@starbucks.com
or
http://www.businesswire.com/cnn/sbux.shtml
