Intention to fully license Starbucks operations with longstanding
business partner, Alsea, in France, the Netherlands, Belgium and
Luxembourg
Company introducing a new support structure in the EMEA head office
to better serve an increasingly-licensed regional strategy; Intends to
close support centre in Amsterdam; Coffee roasting facility to remain in
the Netherlands
Will continue to invest in growing a healthy store portfolio;
company-operated stores to serve as innovation centres for EMEA region
LONDON--(BUSINESS WIRE)--
Starbucks Coffee Company (NASDAQ: SBUX) today announced our intention
to fully license Starbucks operations in France, the Netherlands,
Belgium and Luxemburg to its longstanding strategic partner Alsea,
S.A.B. de C.V. (BMV: ALSEA), the largest independent chain restaurant
operator in Latin America.
Under this proposal, which is subject to relevant local laws, and
discussions with relevant employee representatives, Alsea will have the
rights to operate and develop Starbucks stores in these markets,
building on Starbucks regional growth agenda that drives value through
strategic licensed relationships. At the same time the company would
introduce a new support structure in its head office in London to better
serve an increasingly licensed strategy.
“We’re very pleased to build on our 16-year history with Alsea, a
long-term strategic partner to Starbucks, with the intention to license
our business operations in France, the Netherlands, Belgium and
Luxemburg,” said John Culver, group president, Starbucks International,
Channel Development and Global Coffee & Tea. “These strategic moves
would enable us to further accelerate growth across these markets as we
position Starbucks for long-term success moving forward.”
Expanded Licensing Agreement with Alsea
The longstanding strategic business partnership between Starbucks and
Alsea began in 2002, when together they opened Mexico City’s first
Starbucks store. Today, Alsea operates more than 900 Starbucks stores in
Argentina, Chile, Colombia, Mexico and Uruguay, employing more than
11,500 partners (employees) across the five markets. At the close of
this transaction, Alsea would expand its relationship with Starbucks
outside of Latin America to Europe and would partner with Starbucks in
nine markets globally.
"Through the years, we have learned how to successfully bring the
Starbucks experience to diverse consumers in several countries; we have
a deep understanding of the company’s values as well as the critical
relationship between barista and customer which results in the unique
and powerful connection that makes Starbucks a preferred brand. We plan
to do the same in these geographies leveraging the talent and scale that
we have built in the region. We are honored and thankful to Starbucks
leadership for trusting Alsea with this important opportunity. We look
forward to finalizing our discussions and working in close partnership
with the European team to bring long-term profitable growth,” said Renzo
Casillo, Managing Director of Alsea.
Starbucks opened its first Paris store in 2004 on the iconic Boulevard
des Capucines. Subsequently, the brand came to the Netherlands, Belgium
and Luxemburg between 2008 and 2016, creating more than 3,100 jobs at
more than 260 stores across the four countries.
Support Function Restructure
With the goal of driving sustained, long-term and profitable growth in
EMEA through strategic licensed partnerships, Starbucks intends to
restructure its back-office support functions. The result will be a more
impactful team that draws on global best practices to support licensees
in optimising operations. This includes introducing a new support centre
structure in its head office based in London – which has served as the
company’s regional headquarters since 2014 – as well as the intention to
close its support centre in Amsterdam. The company will continue to
operate its manufacturing site in Amsterdam which roasts and packages
its high quality, ethically sourced Arabica coffee for EMEA.
“This new structure will be the culmination of a long and thoughtful
process to simplify our organization so that it can best service our
increasingly licensed store market strategy while continuing to embed
our mission and values in how we operate everyday,” said Martin Brok,
president, Europe, Middle East and Africa, Starbucks.
Investing in Customer Experience
Starbucks opened its first store in Europe 20 years ago, and it has
since grown in partnership with strategic licensees to more than 3,200
stores in 43 markets across Europe, the Middle East and Africa.
Recently, the company opened a Starbucks Reserve Roastery in Milan,
elevating the customer experience and serving as a pipeline of
innovation for core stores. These innovations in retail will be part of
the company’s ongoing evaluation of a healthy store portfolio with the
aim to scale successful programmes across the whole of the EMEA estate.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee.
Today, with more than 25,000 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 news.starbucks.com and Starbucks.com.
Forward Looking Statement
Certain statements contained herein are “forward-looking” statements
within the meaning of the applicable securities laws and regulations.
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 on
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 the 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, the
acceptance of the company’s products by our customers, the impact of
competition, as well as general economic and industry factors such as
coffee, dairy and other raw materials pricing and availability,
successful execution of internal performance and expansion plans, the
impact of initiatives by competitors, the effect of legal proceedings,
and other risks detailed in the Company’s filings with the Securities
and Exchange Commission, including the “Risk Factors” section of the
Company’s 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.
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Starbucks Coffee Company
+44 208 834 5164
EMEACommunications@starbucks.com
Source: Starbucks Coffee Company