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Company Recognizes the Contributions of its 200,000
Annual meeting highlights included:
- Thanks and appreciation from company shareholders via webcast to the 200,000 Starbucks partners around the world who deliver the Starbucks Experience to over 70 million customers in 62 countries each week.
The announcement by
Adam Brotman, chief digital officer, of an expansion of the company’s loyalty and rewards program, and an industry-first innovation that will enable customers to earn rewards for grocery channel purchases that can be redeemed in Starbucks retail stores and is expected to double the number of customers enrolled in the company’s programs in fiscal 2013.
- Brotman also announced that Starbucks mobile payment platform is now generating over three million U.S. mobile payment transactions per week.
Blair Taylor, Starbucks chief community officer, announced the launch of a new nonprofit corporation with a $1 millionseed grant to introduce job skills, leadership and apprenticeship programs to young people across the company’s multi-billion-dollar supply chain, and further expansion of the company’s support for U.S. manufacturing through an order for 100,000 ceramic mugs from a supplier in Ohiowhose operations Starbucks helped expand through previous purchasing commitments.
A discussion by
Troy Alstead, chief financial officer, of region-by-region and individual segment performance for fiscal 2012 and a reaffirmation of the company’s fiscal 2013 revenue and EPS growth targets.
Schultz’s recognition of Starbucks 15-year business partnership with
Mohammed Alshaya, Executive Chairman,
M.H. Alshaya Co., including comments about how bringing specialty coffee to the Middle Eastserves as a model for the company’s future expansion initiatives.
“The opportunity we have to create value for our shareholders is exceeded only by our unique ability to contribute meaningfully to the communities we serve around the world,” said Schultz. “From leveraging and expanding our strong global business partnerships, to bringing innovation to our customers and each of the markets and channels in which we operate, to expanding our broad array of digital customer touch points and deepening our ethical sourcing model, Starbucks is continuing to grow with passion and intent to become one of the world’s most relevant, admired and trusted brands.”
Starbucks Continues its Robust Trajectory of Growth and Profitability
Schultz opened the annual meeting by asking Starbucks shareholders to stand and recognize the company’s 200,000 partners around the world who deliver the Starbucks Experience to customers each day, then highlighted key accomplishments since last year’s meeting:
Record revenues of
$13.3 billionand record earnings per share of $1.79in fiscal 2012,
- 38% total shareholder return in 2012, following a 46% return in 2011 and a 32% return in 2010,
- 14% revenue growth in 2012, capping off the eleventh consecutive quarter of 5%+ global comp store sales growth,
- 18% earnings per share growth in 2012 despite significant commodity headwinds, and
Continued outperformance of key industry financial performance
metrics, record cash flow of
$1.8 billion, record returns on invested capital of 22.4% and over $1.1 billion returned to shareholders through dividends and share repurchases in 2012.
Digital and Loyalty Momentum Around the World
Starbucks world-class My Starbucks Rewards™ loyalty program continues to
resonate with customers, driving increased revenue, traffic and
purchases and further differentiating Starbucks from competitors.
- Beginning in May, customers will earn My Starbucks Rewards™ Stars for purchases of Starbucks packaged coffee in grocery channels. These Stars can then be redeemed for free food or beverages in Starbucks retail stores. The program is expected to be expanded to include other Starbucks products sold through grocery channels this fall.
- Integration of the Starbucks Card and My Starbucks Rewards™ loyalty program across several of its emerging brands, including Teavana. Beginning next month, registered customers who make purchases with a Starbucks Card or through the Starbucks mobile app at any of over 300 Teavana retail stores will be able to earn Stars for their purchases.
Together, Brotman reported, these new program innovations are expected
to contribute towards a rapid and substantial increase in
Also highlighted at the meeting was the five-year anniversary of My Starbucks Idea, the company’s online community that encourages customers to share their ideas, engage in conversation and have a voice in shaping the Starbucks of the future. Found on the web at www.MyStarbucksIdea.com, over the last five years My Starbucks Idea has received over 150,000 submissions from customers around the world that have helped launch 275 ideas into Starbucks stores.
Leveraging Global Scale for Local Good
With more than 200,000 partners in more than 18,000 stores in 62 countries around the world, Starbucks growth has also enabled the company to leverage its global operational scale for good in a variety of different ways across the enterprise.
Made in the
U.S.A.: Starting in the fall, American Pioneer Manufacturing will begin producing a Starbucks siren mug that represents a core product in the company’s overall drinkware lineup. Based in New Waterford, Ohio, this automated facility is the first of its kind in an historic potting community. To help build capacity for the new facility, Starbucks has placed an initial order for 100,000 units for delivery in the fall and is making the mug available for purchase in U.S. stores starting in winter. As a result, American Pioneer Manufacturing expects to hire as many as 20 U.S. workers by the end of the year.
Supply Chain Coalition: Building on the learnings and success of the Starbucks Youth Grants initiative, Starbucks also announced an initial $1 milliongrant for the development of a nonprofit corporation – LeadersUp – that will tap into Starbucks supply chain to bring new job and leadership skills training to young people with the eventual linking of trainees to job experiences within our collective companies and beyond. In the first year, this organization has the goal to raise $10 millionto support this work over the next year, with a long-term strategy of establishing up to a $100 millionannual fund.
Earlier this week, Starbucks also announced the purchase of a 240-hectare coffee farm as part of its ongoing commitment to ethically source 100 percent of its coffee by 2015:
Sustainable Farming Investment: To help farming communities around the world mitigate climate change impact and ensure long-term crop stability, Starbucks will expand its existing $70 millioncomprehensive ethical sourcing program with a new coffee farming research and development center in Costa Rica. The company will adapt this 240-hectare working coffee farm into a global agronomy center, expanding its Coffee and Farming Equity practices (C.A.F.E.) program that seeks to ensure coffee quality while promoting social, environmental and economic standards.
Starbucks Coffee Company
Media Relations, 206-318-7100