In its 20th Year as a Public Company,
Starbucks Announces:
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Addition of Fifth U.S. Manufacturing Facility
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Participation in Green Mountain’s Keurig Vue™ Brewing System
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11th Annual Global Responsibility Report
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New Initiatives to Help Communities Thrive
SEATTLE--(BUSINESS WIRE)--Mar. 21, 2012--
Starbucks Coffee Company (NASDAQ: SBUX) today held its Annual Meeting of
Shareholders in Seattle, where Howard Schultz, chairman, president and
ceo attributed the company’s success to its long-standing commitment to
helping communities thrive wherever around the world it does business.
“For any company operating today, profitability cannot be the sole
measure of success,” Schultz said. “Delivering long-term shareholder
value is essential. But today’s increasingly complex world requires
companies – including Starbucks – to hold ourselves to higher standards.
Amidst continued worldwide economic uncertainty, Starbucks has
demonstrated that it will continue to build shareholder value, but never
before has that value been more closely aligned to our values. Simply
put, the value of your company is driven by your company’s values.”
Starbucks Expands Manufacturing Capacity in Southeastern U.S.
The company announced it will invest nearly $180 million in expanding
manufacturing capacity in the Southeastern U.S. by building a fifth U.S.
plant in Augusta, Ga. and expanding an existing facility in Sandy Run,
S.C. These investments are included in Starbucks Fiscal 2012 capital
expenditure targets previously disclosed. The new Augusta plant will be
Starbucks first company-owned and -operated facility in the world to
produce soluble products, such as Starbucks VIA® Ready Brew and the
ingredients for Frappuccino® and Starbucks® ready-to-drink (RTD)
beverages. In addition to building the new soluble plant, Starbucks will
add packaging capacity at its roasting plant in South Carolina.
“Starbucks has long believed that there is a strong relationship between
our success and the strength and vitality of the communities in which we
do business,” said Schultz. “Augusta and Sandy Run are important
communities for our company. Both have an abundance of skilled workers,
a great quality of life, convenient access to transportation that is
critical to our business and strong support from local and state
leaders. We’re proud to be part of these communities and to be creating
American manufacturing jobs during such challenging economic times.”
When the state-of-the-art soluble plant is completed, it is expected to
create more than 140 new manufacturing jobs, in addition to hundreds of
indirect jobs related to construction, shipping, and supply chain
functions with local economic impact. The $172 million facility is
expected to open in January 2014, with construction starting this
spring. Designed to be a 110,000 to 160,000 sq. ft., LEED® certified
building, the plant will be capable of producing up to 4,000 metric tons
per year. It will prepare and package ingredients and finished products
for most of the company’s soluble-based beverages for all of North
America and parts of Europe.
The Sandy Run roasting plant, which opened in 2009, will invest $7
million in a packaging line by the end of this year. This expansion will
create an estimated six new jobs, adding to the more than 830 partners
(employees) that Starbucks already employs at its four roasting plants
in the U.S. In addition to Sandy Run, Starbucks also has roasting plants
in Kent, Wash., York, Pa., and Carson Valley, Nev.
Helping Communities Thrive
Starbucks U.S. manufacturing expansion exemplifies the company’s ongoing
commitment to help accelerate job growth both within Starbucks and in
the communities it serves. In Fiscal 2012, with the addition of nearly
300 net new stores (company owned and licensed) and the remodeling of
1,700 existing cafes, more than 5,000 direct and indirect net new jobs
are being created in the U.S. this year.
To further address the jobs crisis in America, last November Starbucks
and the Opportunity Finance Network teamed up to launch "Create
Jobs for USA," a national campaign designed to help jumpstart the
economy with a focus on job creation in many of America’s most
underserved communities. Through the Create Jobs for USA Fund, 100% of
donations from Starbucks customers goes quickly to community development
financial institutions (CDFIs) to provide necessary financing to
community businesses committed to creating and sustaining jobs.
In the first three months of the Create Jobs for USA program, Starbucks
and the Starbucks Foundation have made a difference in thousands of
Americans’ lives by:
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Raising more than $7 million in donations, which in turn has
translated into $50 million in financing for community businesses;
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Supporting nearly 280 loans across 31 states, with the goal of
extending to all 50 states by the end of this year;
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Helping create and retain an estimated 2,300 American jobs; and
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Distributing more than half a million “Indivisible” wristbands, a
visible demonstration of Americans helping Americans.
“Create Jobs for USA was specifically designed to give Americans a
simple, specific way to take action and be part of a solution to our
national jobs emergency,” said Schultz. “Our initial progress tells us
that we can continue to grow this public-private initiative and that the
emotional appeal of Americans helping Americans resonates, especially
when our fellow citizens know that their participation contributes to
their own communities in sustainable ways. In the coming weeks we plan
to introduce new corporate partners that will support the effort with
equity donations, awareness campaigns, and consumer outreach.”
In addition to donating at Starbucks company-owned stores across the
U.S. or online at www.createjobsforusa.org,
concerned citizens starting this week may now also support Create Jobs
for USA by texting a donation to 80888JOBS.
Building on its strong track record of helping neighborhoods thrive
wherever it does business, Starbucks also announced several other
initiatives aimed at giving partners and customers the opportunity to be
directly involved in giving back to their local communities.
This April, Starbucks will kick off its second annual Global Month of
Service where partners, customers and community organizations will be
mobilized to make a positive impact. Across the globe, Starbucks
partners will lead community service projects focused on the individual
needs of the neighborhoods where they live and work. Throughout the
year, Starbucks partners and customers dedicate their time and energy to
creating positive change in their neighborhoods, and during the Global
Month of Service that commitment is amplified and celebrated. During
Starbucks first Global Month of Service in 2011, nearly 60,000
volunteers participated from across 30 countries on four continents –
resulting in more than 155,000 hours of community service. The company
invites people in the U.S. and Canada to sign up for projects in their
area at community.starbucks.com.
The company also unveiled Community Card: Vote.Give.Grow., a program
which enables any Starbucks customer with a registered Starbucks Card to
help determine how the Starbucks Foundation distributes $4 million to
124 local non-profit organizations across the country. Each week
throughout April, customers can cast a vote for one of four non-profit
organizations in their own community. Votes will be tallied at the end
of April and the $4 million from the Starbucks Foundation will be
distributed based on the number of votes each organization receives.
Every participating non-profit will receive a portion of the funding so
that their programs can continue to help neighborhood residents – young
and old – access services that help them gain education, housing and
employment.
Community Card: Vote.Give.Grow., will support a combination of national
and local non-profit organizations including Opportunity Finance Network
and DonorsChoose.org. To vote, customers with a registered Starbucks
Card can visit www.starbucks.com/VoteGiveGrow
beginning Sunday, April 1.
In its effort to help communities thrive through ethical sourcing,
environmental stewardship and community involvement, Starbucks also
announced today the availability of its 11th annual Global
Responsibility Report, outlining Fiscal 2011 performance. The 2011
report demonstrates significant strides toward the ambitious goals
Starbucks set for itself in 2008. In a single year Starbucks more than
doubled its community service – to 442,000 hours served – and more than
tripled the availability of in-store recycling – now in more than 1,000
stores in the U.S. and Canada. The interactive report is now available
online at www.starbucks.com/GRreport.
Strong Execution of Blueprint for Profitable Growth
Fiscal 2011 was a record year for Starbucks on all levels and the
company is continuing its quest to bring innovation and quality products
to consumers as outlined in its Blueprint for Profitable Growth. As
proof of its global leadership position in the nearly $8 billion global
premium single cup coffee category, Starbucks earlier this month
announced its own signature Verismo® system by Starbucks, the first
at-home premium single cup machine that meets Starbucks commitment to
taste and quality.
In addition to its signature Starbucks VIA® Ready Brew, Starbucks®
K-Cup® packs offering, and now Verismo™ by Starbucks platform, Starbucks
president of Channel Development, Jeff Hansberry, announced today that
Starbucks has expanded its strong partnership with Green Mountain Coffee
Roasters (GMCR) to offer Starbucks® coffee and Tazo® tea for GMCR’s
Keurig® Vue™ Brewer.
Earlier this week, the company launched its manifestation of the
Evolution Fresh brand with its first retail location. This introduction
is the initial step in Starbucks offering of a unique, super-premium
juice experience and provides Starbucks a strong platform to reinvent
the $3.4 billion super-premium cold-crafted juice category.
Additionally, Starbucks unveiled its new Seattle’s Best Coffee concept
store design on Monday outside of Chicago, offering customers a new way
to experience the Seattle’s Best Coffee brand.
Today the company also announced plans to make a global entry into the
energy category with Starbucks Refreshers™ beverages – making Starbucks
the first to bring green coffee extract innovation to customers on a
global scale. Starbucks Refreshers™ beverages are a breakthrough
innovation that deliver thirst-quenching refreshment from real fruit
juice and a boost of natural energy from a new source, green coffee
extract. By the end of April, customers will find the ready-to-drink
lightly sparkling version of Starbucks Refreshers™ beverages at more
than 160,000 points of distribution where they buy groceries in the U.S.
The company said it also plans to offer handcrafted Starbucks
Refreshers™ beverages to stores in the U.S. and select international
markets this summer.
Global Momentum
Starbucks leadership also discussed the tremendous opportunity for
international growth not only in current markets but also in new and
emerging countries such as India and Brazil.
The company committed to accelerated growth across China and Asia
Pacific markets. John Culver, president, Starbucks China and Asia
Pacific, confirmed that by 2014 China will become Starbucks second
largest market outside the U.S. and will exceed 1,500 stores by 2015.
Next year, Japan will open its 1,000th store and Korea will
more than double in size to over 700 stores by 2016. Focus will also be
given to accelerating growth across Indonesia and Thailand as part of
its emerging market growth strategy.
Starbucks said it also plans to continue to amplify its expanding
international business through new store designs, targeted innovation,
and disciplined growth. The company emphasized the importance of local
relevance in products and other offerings, citing recent enhancements to
the Starbucks Experience in Europe, the Middle East, Russia and
Africa.
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 premier
roaster and retailer of specialty coffee in the world. 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.
Forward-Looking Statements
This release contains forward-looking statements relating to certain
company initiatives and plans, including innovation, introduction of new
products and expansion of manufacturing and packaging capacity, as well
as trends in or expectations regarding growth, number of jobs created,
expansion of national and international businesses, shareholder value,
and market share. These forward-looking statements are based on
currently available operating, financial and competitive information and
are subject to a number of significant risks and uncertainties. Actual
results may vary materially from those expressed or implied by the
statements herein due to changes in local, state, national and
international economic, business, social, competitive, and/or regulatory
factors, unforeseen delays or costs relating to construction, acceptance
of new products and other risks detailed in the company’s filings with
the Securities and Exchange Commission, including the “Risk Factors”
section of Starbucks Annual Report on Form 10-K for the fiscal ended
October 2, 2011 . The company assumes no obligation to update any of
these forward-looking statements.
Source: Starbucks Coffee Company
Starbucks Investor Relations Contact:
JoAnn DeGrande,
206-318-7118
investorrelations@starbucks.com
or
Starbucks
Media Contact:
Jim Olson, 206-318-7100
press@starbucks.com