New agreement gives SouthRock, a leading multi-brand restaurant
operator, the rights to develop and operate Starbucks® stores in Brazil
– building on more than a decade of business growth, brand loyalty and
trust in the market
SouthRock commits $1 million to drive social impact and community
initiatives for Starbucks Brazil, including Starbucks Global Academy, a
free online education program for employees through the company’s
strategic partnership with Arizona State University
Following transition of ownership in Brazil, Starbucks poised for
long-term growth across Latin America and the Caribbean, building on
more than 1,200 stores in 17 markets to date
SÃO PAULO--(BUSINESS WIRE)--
Starbucks Coffee Company (NASDAQ: SBUX) today announced that it has
entered into an agreement with SouthRock – a leading multi-brand
restaurant operator in Brazil – to fully license Starbucks retail
operations in the country. The agreement provides SouthRock the rights
to develop and operate Starbucks® stores in Brazil. By leveraging its
strong market knowledge in commercial real estate, marketing and
operations, SouthRock plans to drive long-term growth in a way that
creates new opportunities for Starbucks customers and employees, both in
existing markets as well as future markets across Brazil.
“We strongly believe this is the right time to leverage a strong local
business partner like SouthRock as we pursue our ambitious, long-term
growth agenda for Brazil,” said Ricardo Rico, general manager and
vice president for Starbucks licensed store operations, Latin America.
“SouthRock has a solid track record of bringing unique retail
experiences to customers in Brazil, creating meaningful opportunities
for its employees, and investing in the Brazilian economy. They are the
ideal partner to take the Starbucks brand into the next phase of
profitable growth in Brazil.”
Since entering Brazil in December 2006, Starbucks has built the brand by
delivering a consistent, authentic in-store experience. As of today,
Starbucks serves customers in 113 stores in 17 cities across the states
of São Paulo and Rio de Janeiro with more than 1,450 employees. Looking
ahead, the company will work with SouthRock to bring the Starbucks
Experience to more customers, while creating opportunities for even
more employees and their families as the business grows. SouthRock will
also continue the brand’s long-standing tradition of celebrating locally
sourced Starbucks® Brasil Blend coffee in all stores and plans to invest
$1 million towards social impact initiatives that benefits employees and
the communities they serve, including Starbucks Global Academy, a unique
and free online education platform for employees through Starbucks
strategic partnership with Arizona State University.
“At SouthRock, we pride ourselves on our hands-on approach to food and
beverage management in Brazil, with a focus on building trust with our
employees and empowering them to deliver experiences that exceed our
customers’ expectations,” said Ken Pope, founder and CEO, SouthRock.
“Our management team’s track record is one built on growth through
operational excellence, and our shared values with Starbucks are
particularly evident in our respect for our employees and the
communities we serve. SouthRock is committed to caring for and growing
the Starbucks brand, now and into the future.”
SouthRock was founded in 2015 by Ken Pope, who along with SouthRock’s
executive management team hold experience owning and operating major
national and international food and beverage brands in Brazil. SouthRock
owns and operates “Brazil Airport Restaurants,” a multi-brand food and
beverage service company operating in Brazil’s largest airports. Brazil
Airport Restaurants’ license agreements include Starbucks and TGI
Friday’s among other international brands. Pope previously built a
multi-brand portfolio of leading Brazilian food and beverage brands
which included St. Marche Supermercados, Eataly Brazil, The Fifties:
Traditional Burger, China-in-Box and Gendai. SouthRock COO Antonio Neves
has worked for more than 23 years in the retail and food & beverage
industries in Brazil, and led the company’s Brazil operations teams at
International Meal Company (IMC) prior to working alongside Pope in his
previous multi-brand portfolio.
“With Starbucks, we see continued opportunities for growth in existing
markets like São Paulo and Rio de Janeiro, as well as new markets like
Brasilia and the South, and look forward to leveraging our local market
capabilities to create even greater value for both Starbucks employees
and customers,” added Pope.
With the transition of ownership in Brazil, Starbucks retail operations
across all 17 markets in Latin America and the Caribbean will become
wholly licensed. Starbucks currently has a presence in Argentina, Aruba
and Curacao, Bahamas, Brazil, Bolivia, Chile, Colombia, Costa Rica, El
Salvador, Guatemala, Jamaica, Mexico, Panama, Peru, Puerto Rico,
Trinidad and Tobago. Starbucks will also open in Uruguay later this year.
“Much of Starbucks success in Latin America and the Caribbean has been
due to our knowledge of when to rely on local and regional trusted
licensing partners to grow the business,” added Rico. “For us, the right
mix of ownership models – company owned, licensed or joint venture – has
allowed us to remain focused on our biggest opportunities as we further
accelerate growth across the globe, while always striving for the iconic
Starbucks customer and partner experience. We are ready for this next
phase of growth in Brazil and are proud to welcome SouthRock to our
strong network of licensing partners in Latin America.”
About SouthRock
SouthRock prides itself on its hands-on “owner/operator” approach to
food and beverage management in Brazil. SouthRock focuses on building
trust with employees and empowering them to deliver experiences which
exceed customers’ expectations. Its management team’s track record is
one built on growth through operational excellence by creating
meaningful opportunities for partners to advance their careers and
deliver strong financial results to our stakeholders. For more
information please contact: info@southrockcapital.com
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. Today, with more than
27,000 stores around the globe, Starbucks 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 our stores or online at Starbucks.com and
news.starbucks.com.
Forward-Looking Statements
Certain statements contained herein are “forward-looking statements”
within the meaning of the applicable securities laws and regulations,
including, without limitation, growth in Brazil. Generally, these
statements can be identified by the use of words such as “anticipate,”
“expect,” “believe,” “could,” “estimate,” “feel,” “forecast,” “intend,”
“may,” “plan,” “potential,” “project,” “should,” “will,” “would,” and
similar expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying
words. These statements are based upon information available to
Starbucks as of the date hereof, and Starbucks actual results or
performance could differ materially from those stated or implied due to
risks and uncertainties associated with its business. These risks and
uncertainties include, but are not limited to, fluctuations in U.S. and
international economies and currencies, our ability to preserve, grow
and leverage our brands, potential negative effects of incidents
involving food or beverage-borne illnesses, tampering, adulteration,
contamination or mislabeling, potential negative effects of material
breaches of our information technology systems to the extent we
experience a material breach, material failures of our information
technology systems, costs associated with, and the successful execution
of, the company’s initiatives and plans, including the licensing of our
markets in Brazil and other markets, the acceptance of the company’s
products by our customers, the impact of competition, coffee, dairy and
other raw materials prices and availability, the effect of legal
proceedings, and other risks detailed in the company filings with the
Securities and Exchange Commission, including the “Risk Factors” section
of the Starbucks Annual Report on Form 10-K for the fiscal year ended
October 1, 2017. The company assumes no obligation to update any of
these forward-looking statements.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180312006273/en/
Source: Starbucks Coffee Company