Starbucks Reserve Roastery in Shanghai opens Dec. 6

Starbucks Reserve Roastery in Shanghai opens Dec. 6

 

New multi-sensory retail experience offers customers an immersive:

•   manufacturing and cafe environment including roasting, packaging and brewing;
•   integrated offline and online augmented reality (AR) digital experience; and
•   debut of food freshly baked onsite by Italian food purveyor, Rocco Princi for the first time ever in China

China is Starbucks fastest growing market with a store opening every 15 hours, marking immense opportunity across the country which is unparalleled for any other global consumer brand

The Starbucks Foundation and Starbucks China reaffirms commitment to the China market announcing a social impact commitment of $20 million USD (RMB 132 million) over the next five years

SHANGHAI, 2017-Dec-05 — /EPR Retail News/ — Starbucks Reserve Roastery in Shanghai, the first fully immersive coffee experience in Asia, will celebrate its historic opening tomorrow, Dec. 6, culminating in Starbucks most ambitious project ever. When the doors open to the world’s second Starbucks Roastery, created three years after the inaugural Seattle Roastery, customers will be greeted by a multi-sensory coffee experience in an interactive coffee and retail destination like no other.

The Roastery is the epitome of coffee and retail innovation for Starbucks in China, the company’s fastest-growing market with more than 3,000 stores across 136 cities, unprecedented for any global consumer brand and with immense growth opportunity. Starbucks already has more than 600 stores in Shanghai – the largest number of stores in any city where Starbucks (NASDAQ: SBUX) has a presence.

As customers enter the Roastery and step through the front doors of the 2,700-square-meter (30,000-square-foot) building, they’ll be greeted by the stunning sight of a two-story copper cask, adorned with more than 1,000 traditional Chinese chops, or stamps, hand-engraved to narrate the story of Starbucks and coffee. As part of their experience, customers can visit many attractions including one of three coffee bars offering multiple brewing methods, explore specially-crafted teas at the 3-D printed tea bar, enjoy freshly baked Italian artisanal food by Princi, and marvel at the ceiling made of 10,000 handmade wooden hexagon-shaped tiles, inspired by the locking of an espresso shot on an espresso machine.

And, all along the way, customers can point their mobile devices around the Roastery for even more moments of discovery as they immerse themselves in the augmented reality (AR) experience.  Integrating this technology into the store, located at 789 Nanjing Road W., in one of the world’s busiest shopping destinations, makes it one of the most advanced digital locations for Starbucks in the world.

“The affinity we have built with our partners (employees) and customers over the past 18 years in China is special and we knew we must bring the Reserve Roastery, our boldest, most premium store ever, to Shanghai, China’s bustling metropolitan hub and one of the world’s most dynamic retail destinations, as well as a gateway to customers from across Asia and the world,” said Howard Schultz, executive chairman of Starbucks Coffee Company. “We’ve created a space that both recognizes and celebrates our 46-year history of coffee leadership and retail innovation with China’s rich, diverse culture.”

A Theater of Coffee with a Chinese Focus

For the first time ever, unique, small-lot Reserve coffee which Starbucks sources from more than 30 countries around the world, including coffee from China’s Yunnan Province, will be roasted in China by eight highly trained Chinese coffee roasters – passing on 46 years of Starbucks roasting expertise to the first batch of Chinese roasters. Customers can watch the green beans as they are roasted, then sent through copper “symphony” pipes (named because of the musical sound the beans make as they travel through them) directly to silos at the coffee bars, where customers can enjoy a fresh cup of Reserve coffee, or to the in-house pack line to be packaged for distribution across Starbucks Reserve® stores in China.

The three wooden coffee bars, including one that is 27 meters (88 feet) long – the longest at any Starbucks – are handcrafted by premiere Chinese artisans and reference the unique roasting curve of individual coffee beans, executing the Roastery’s design vision of Liz Muller, senior vice president of creative global design for Starbucks. The bars serve as the stage where hundreds of baristas will handcraft some of the rarest, small-lot coffees in the world using one of six brewing methods: ModBar® Pour Over, Chemex, Coffee Press, Siphon, Espresso and the proprietary Clover-brewed coffee.

The Yunnan Reserve coffee, grown in Pu’er in Yunnan Province, is roasted and available exclusively at the Roastery in Shanghai. It’s the culmination of Starbucks ongoing, deep commitment to Chinese growers. Since 2012, agronomists at the China Starbucks Farmer Support Center have worked closely with farmers and the government to provide resources and expertise to improve quality and promote sustainable coffee-growing practices. Like the Shanghai Roastery, the Yunnan Reserve coffee truly is made “In China, For China.” The introduction of Yunnan Reserve coffee also signifies an important step in completing the Starbucks China supply chain, delivering premium coffee from bean-to-cup, and now introducing a rare, exquisite, yellow honey-processed cup of Yunnan coffee to a global audience.

A Groundbreaking Digital Experience

The Shanghai Roastery will become the first Starbucks location, and the first-of-its kind in China, to seamlessly integrate a real-time, in-store and online customer experience. Roastery customers are invited to immerse themselves in the first Starbucks augmented reality (AR) experience – accessible through the custom-designed Roastery digital web-app platform or on Alibaba’s Taobao app – by simply pointing their mobile devices at key features around the Roastery to bring to life information about the Starbucks bean-to-cup story. To help customers create their personal Roastery discovery journeys, the Roastery digital web-app platform also incorporates a digital menu and will, intuitively through AR technology, share details of the coffee bars, brewing methods, as well as other not-to-be-missed unique online and offline experiences. Each step of the way, customers unlock a virtual badge and once all badges are earned, they receive a custom Roastery filter to commemorate the moment and share on social media. The Shanghai Roastery digital experience is designed by Starbucks and powered by Alibaba Group’s scene-recognition technology.

This experience also extends to Alibaba’s online marketplace, Tmall, allowing customers to purchase Shanghai Roastery and Reserve branded merchandise and whole bean coffee for delivery directly to their homes, or to register for specially curated coffee tasting experiences that can be enjoyed at the Starbucks Roastery in Shanghai.

Princi, Italian Artisan Bakery Comes to Asia

At the Shanghai Roastery, acclaimed baker Rocco Princi combines the craft of bread baking, exceptional ingredients and the “Spirito di Milano” to bring his artisanal offerings to Asia for the first time. Princi, famed for bakeries in Milan and London, joins the premium Starbucks Reserve® brand as the exclusive food pairing to its rare, small-lot coffees. Princi is the exclusive food offering in all Starbucks Roastery locations, including Seattle, Shanghai and upcoming locations.

“Rocco and his team’s passion for handcrafted food and artisanal baked goods at Princi mirrors how I feel about our coffee,” said Schultz. “His attention to detail, meticulous care in selecting the freshest, high-quality ingredients and the artistry of preparation creates an Italian food experience that perfectly pairs with our most premium coffees. I look forward to seeing Princi’s success in Seattle further extend to our Roastery in Shanghai.”

In Shanghai, a team of more than 30 skilled Chinese bakers and chefs bring artisan baking to life using exceptional ingredients sourced specifically for each fresh food offering. Much like Rocco’s European locations, the Shanghai site is centered around ovens, with more than 80 different menu items – from flaky cornetti to focaccia sandwiches filled with Parma ham and Italian mozzarella – for breakfast, lunch and dinner, baked fresh onsite. A Commessa (or culinary concierge) will guide customers through the breadth of offerings.

A tribute to China’s tea culture

The new Shanghai Roastery features China’s first Starbucks® Teavana Bar, an entirely modern tea experience specifically designed for Chinese customers. While demonstrating deep respect for the thousands of years of Chinese tea tradition, the Starbucks® Teavana Bar reimagines a modern tea experience for customers who increasingly seek new and different tastes and experiences. Customers to the tea experience bar can select a Teavana signature pure tea or blend, served either hot or iced. Using only the finest tea ingredients in the world, tea curators handcraft unexpected creations with tea mixology as well as nitrogen and tea. For those interested in experiencing a whole new brewing method, the Steampunk brings together science and theater. Watch tea leaves dance in the water, while steam extracts every nuanced flavor in one of tea’s most dynamic moments.

Inspired by the traditional clay teapots in China, the tea experience bar is a light jade color with dark shadows to represent tea stains formed in a teapot over time. It is also the only tea bar created from recycled materials using a 3-D printer, measuring 7.5 meters (25 feet) in length.

Our responsibility and commitment to the country’s future

Starbucks takes its responsibility to contribute and give back to communities seriously. Today, the company announced another milestone in its commitment to China: contributing meaningful and enduring social impact through poverty alleviation by creating opportunities for groups facing barriers, strengthening partner-driven and locally relevant community engagement, and improving lives of Yunnan coffee farmers and their families.

The Starbucks Foundation and Starbucks China plan to make charitable donations totaling approximately $20 million USD (RMB 132 million) over the next five years to drive social impact in communities across China.

“We firmly believe it is our role and responsibility to use our scale to give back to the communities as we continue to grow in China, and with the people of China,” said Belinda Wong, chief executive officer of Starbucks China. “Our commitment, together with our Roastery opening, epitomizes how Starbucks is doubling-down on the unprecedented opportunities we see in the future for Starbucks and China.”

The Starbucks Foundation’s charitable donation is part of its ongoing global commitment to giving back.

“The Starbucks Foundation was established 20 years ago to strengthen communities around the world.  We are proud to have supported communities across China for many years and look forward to deepening our commitment in the years to come,” said Vivek Varma, president of The Starbucks Foundation.

Starbucks entered China in 1999 and these series of commitments reaffirm the strategic role of the China market and highlight Starbucks ongoing aspiration to elevate its partners, customers, suppliers and neighbors to create an environment where everyone can thrive. The Starbucks Roastery is another firm demonstration of Starbucks confidence and optimism in its long-term growth in China.

About Starbucks Coffee Company

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 news.starbucks.com and Starbucks.com.

About The Starbucks Foundation

Established in 1997, The Starbucks Foundation has strengthened communities around the world by advancing youth leadership and community engagement. The Starbucks Foundation is a U.S. 501 (c)(3) charitable organization under U.S. law, and receives funding primarily from Starbucks Corporation and private donations.

MEDIA CONTACT:

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Phone: 206 318 7100
Email: press@starbucks.com

SOURCE: Starbucks Corporation

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Starbucks celebrates journey in Canada over the past 30 years

Starbucks celebrates journey in Canada over the past 30 years

 

Seattle, 2017-May-11 — /EPR Retail News/ — When Starbucks first store in Canada opened its doors for the first time on March 1, 1987, its success was anything but assured.

“In Seattle, we were well established, everybody knew us whether they drank our coffee or not. But quickly we learned how little Vancouver knew about Starbucks,” said Dave Olsen, a 27-year Starbucks partner who became senior vice president of culture and leadership development before he retired in 2013.

For its first 15 years, Starbucks had been a retailer of whole-bean coffee, where customers could buy, hand-scooped coffee in brown bags to brew at home. But Starbucks executive chairman Howard Schultz had a different vision, and he teamed up with Olsen to launch new Italian-style cafés. After opening two successful bars in downtown Seattle, they turned their eyes north to Vancouver to prove their concept.

Their first location would be at Waterfront Station, a grand old rail building that had recently been converted into the downtown terminus for SeaBus passenger ferry and the new SkyTrain. Week after week, Olsen drove his pickup truck over the border to interview store manager candidates and baristas, and get the equipment set up and installed. He trained the new partners, teaching not only the craft of coffee but also sharing the company’s culture and values.

“Those first stores were like children,” Olsen said. “You hope for the best for them, and you worry about every little detail.”

The early days were nerve-wracking.

“We had thought our location was very conspicuous,” Olsen said. “But it was only 600 square feet, and you could walk by us in three steps. Our customer count was about 220 on our first day. A good start, but not quite where we needed to be.”

But before long, the store began to attract a loyal following. Word got around.

“The baristas who opened our first store were terrific. They were really interested and attentive to the coffee and the customers. And the customers were also very appreciative of our efforts. Those are the two essential ingredients for success – the people behind the counter, and willing and discerning customers on the other side,” he said.

Two years later, the company opened a larger café nearby on Robson Street, which quickly became the busiest store in the company. Starbucks in British Columbia continued to grow, and served as a springboard for its expansion to Toronto in 1996, Saskatchewan in 1998, and on to Quebec and Atlantic Canada in 2000.

There are now more than 1,400 stores across Canada, and the SeaBus store has become a tourist attraction in its own right.

“People know we’re the first Starbucks store here and they take photos – we’ll pose for them, make it fun,” said Trevor Fitzgerald, a 22-year partner and store manager of the SeaBus Starbucks. “We’re close to the cruise ships, and get customers who are traveling from all over the world. For many, this could be their first trip to Canada, and we love that they can have an experience with us.”

Now, just a short ride on the SkyTrain from Canada’s first store, Starbucks is opening its doors to one of its new store experiences. The Starbucks store in Mount Pleasant is Vancouver’s first to feature an immersive Starbucks Reserve® coffee bar, bringing connection and theater to the company’s rare, small-lot Starbucks Reserve® coffees. The expansive bar features state-of-the-art brewing techniques; siphon, Black Eagle, Clover® brewed and ceramic pour-over as well as featuring Nitro Draft taps.

“This new experience places coffee craft at the center of the conversation,” said Caroline Ternes, vice president, Starbucks Western Canada. “We are thrilled to offer our customers an elevated experience where they can share in our partners’ passion and expertise.”

Reflecting on the company’s journey in Canada over the past 30 years, longtime partner Lisa Essinger, Starbucks Canada’s vice president for operations and licensed stores, sums it up this way:

“While the culture has evolved, the core of it around connection and humanity hasn’t changed,” Essinger said. “That’s what we’ve always been about.”

MEDIA CONTACT:

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Email: press@starbucks.com

SOURCE: Starbucks Corporation

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Starbucks Reserve® Roastery to open on Chicago’s Magnificent Mile in 2019

Starbucks Reserve® Roastery to open on Chicago’s Magnificent Mile in 2019

One-of-a-kind coffee experience will be built in an iconic retail space on North Michigan Avenue

 Chicago Reserve® Roastery to be the third in the U.S. and sixth internationally for the company as Starbucks continues to transform the global coffee industry

 New Roastery expands Starbucks portfolio of premium retail experiences in Chicago, including a new Reserve® store concept opening in 2018 and multiple Starbucks® stores with Reserve bars 

SEATTLE, 2017-Apr-29 — /EPR Retail News/ — Starbucks Coffee Company (NASDAQ: SBUX) today (April 26, 2017) announced it will open a Starbucks Reserve® Roastery in Chicago in 2019. Located on North Michigan Avenue and Erie Street on Chicago’s Magnificent Mile, the Chicago Reserve® Roastery represents the company’s third Roastery location in the U.S. following Seattle, which opened in December 2014, and New York City, which is on track to open in 2018.  The company also plans to offer customers multiple international Roastery experiences, including Shanghai, opening late 2017, alongside Milan and Tokyo, slated to open in 2018.

“Having opened our first Starbucks store in Chicago nearly 30 years ago, our first outside of Seattle, this is a very special city for me. At the time, it was a true test for Starbucks because the Chicago customer is so savvy and discerning about their coffee,” said Howard Schultz, Starbucks executive chairman. “Chicago is a city of neighborhoods, so we took our time to find an incredible space to match the unprecedented coffee experience our premium Roastery will offer. To be located on one of the best-known retail streets in the world is a proud moment for all of us and we can’t wait to bring Chicago and the world a coffee experience worthy of their most premier real estate.”

“Chicago’s Magnificent Mile brings in millions of visitors from across this globe and is the perfect location for a world-class coffee destination,” Chicago Mayor Rahm Emanuel said. “This Starbucks Reserve Roastery will be an investment in Chicago and a strong addition to Michigan Avenue, where residents and visitors can enjoy incredible coffees from around the world in a remarkable environment.”

Much like its flagship Seattle location, which was the most successful store opening in the company’s history, the new Chicago Roastery will be a fully sensorial coffee environment dedicated to roasting, brewing and packaging its rare, small-batch Starbucks Reserve coffees from around the world. Tailored to the Chicago customer, the interactive four-story, 43,000-square-foot space will also be designed to bring coffee craft to life by offering multiple brewing methods, specialty Reserve beverages and mixology.

“Howard and I share the same passion for the companies we created, each centered around the customer experience and a relentless attention to detail. This building has a unique way of becoming a beacon for a brand, and I can’t think of a better retailer than Starbucks to offer Chicago something new and exciting with its Reserve Roastery,” said Gordon Segal, founder, Crate and Barrel.

As announced at the company’s December Investor Day, Starbucks will also include fresh baking on site in all Reserve Roastery locations courtesy of Italian baker Rocco Princi. Known for his artisan breads created from traditional family recipes, Princi’s handcrafted food pairs perfectly with Reserve coffee, elevating every daypart – breakfast, lunch and dinner in all Starbucks Roasteries. Princi food will also be available in the company’s new Reserve stores, a retail concept inspired by the Roastery but not yet open to the public.  Starbucks has announced a Reserve store coming to the West Loop in Chicago in 2018 and Seattle in 2017. During last year’s Investor Day, Starbucks confirmed that it would open 20-30 Roastery locations globally over time and up to 1,000 Reserve stores.

The premium Starbucks Reserve brand is also coming to life in Starbucks stores with the inclusion of Reserve experience bars in select locations worldwide. Currently, there are 20 Starbucks stores in the U.S. with Reserve bars – three in downtown Chicago and one in Lake Forest, Illinois. This spectrum of Starbucks retail experiences is not new for Chicago: Since opening in 1987, the Chicago customer has seen many firsts from the company, including early iterations of the third-place experience, modular Drive Thru stores made from shipping containers, an express format focused on the commuting customer and, more recently, the opening of its first store in Englewood, providing job skills training to youth in addition to investing in local women- and minority-owned businesses while creating dozens of Chicago-area jobs.

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.

About Princi

Princi is a Milanese institution built around baking a range of quality hand-made, wood-fired breads.  You can learn more at http://www.princi.com/

For more information on this news release, contact us

SOURCE:  Starbucks Corporation

Starbucks provides critical illness insurance plan for partners in China

Starbucks provides critical illness insurance plan for partners in China

 

  • New benefit will provide fully-sponsored critical illness insurance coverage to more than 10,000 parents of its Chinese partners
  • Program honors the strong role parents have in the success of its partners, while recognizing the deeply-rooted Chinese family values

BEIJING, China, 2017-Apr-12 — /EPR Retail News/ — Starbucks Coffee Company (NASDAQ: SBUX) today (April 10, 2017) established a new precedent for the role and responsibility of a public company leading through the lens of humanity in China – its largest and fastest-growing second market. Beginning June 1, 2017, Starbucks will offer a critical illness insurance plan for the parents* of its eligible** full-time partners (employees) in company-operated stores across Mainland China. This industry-leading investment will benefit over 10,000 parents of its Chinese partners.

The ‘Starbucks China Parent Care Program’ was announced by Howard Schultz, executive chairman, Starbucks Coffee Company, and Belinda Wong, ceo, Starbucks China, at a Starbucks Partner Family Forum in Beijing, the latest in a series of family forums the company has held with its Chinese partners and their families since 2012.

“Our core purpose and reason for being has always been driven by a set of beliefs steeped in humanity and I’m extremely proud to be able to support our Chinese partners and their parents through the Parent Care Program,” said Schultz. “Supporting critical illnesses for aging parents exemplifies what we believe is our responsibility as a global public company and honors the family values deeply-rooted in the Chinese culture.”

Addressing a key concern of partners

In 2010, the company introduced Starbucks Caring Unites Partners (C.U.P.) Fund in China which provides financial assistance to partners and their families in times of need. An analysis of the C.U.P Fund requests over the past seven years, as well as conversations with partners revealed that more than 70 percent of Chinese partners are concerned about the health of their parents as they age. Those who are single, making up 80 percent of retail partners in China, are specifically concerned about their financial ability to provide for their parents’ long-term care should a critical illness occur.

“Culturally, parents play an important role in the lives and career choices of our Chinese partners and they are a natural extension of our Starbucks family in China. Through this new investment, we are stepping up on our responsibility to help our partners take care of their aging parents by alleviating the financial costs that may arise during a family emergency,” added Belinda Wong, ceo, Starbucks China. “Starbucks success in China is directly attributed to the passion and dedication of our partners as well as the unwavering support from their family.”

Redefining health care benefits in China

The ‘Starbucks China Parent Care Program’ is a unique, innovative plan created in collaboration with one of the top insurers in the country to complement the current China Social Medical Insurance Program. The plan leverages Starbucks considerable partner base in China to create a tailored program to alleviate health care and treatment costs associated with a critical illness for its partners.

“The active participation by the private sector is critical to China’s efforts to further enhance the social security system to support our aging population. Starbucks has responded positively to the Government’s call to elevate the commercial health insurance industry, our social security network and to promote a ‘Healthy China’. It is also a firm demonstration of Starbucks social responsibility efforts to give back to the community in a meaningful manner,” said Mr. Jiang Chongguang, Deputy Secretary-General of the Insurance Society of China.

Li Ling, 29, a Starbucks store manager and Coffee Master in Deyang, Sichuan Province, and her family experienced the financial burden when both her mother and grandmother fell ill at the same time.

“I’ve always been concerned by the financial responsibility of caring for my family and now I have my Starbucks extended family here to support me,” said Ling. “It’s a great relief to me, and all of my Chinese partners, that Starbucks has taken a leadership position to support the health and care of our aging parents. I’m incredibly grateful to be with a company that understands our hopes, dreams and aspirations for the future.”

With more than 2,600 stores, across 127 cities, and nearly 40,000 partners across the country, the ‘Starbucks China Parent Care Program’ builds on Starbucks health insurance coverage available to both full- and part-time partners, their spouses and children across the country and its unparalleled, locally-relevant partner benefits, including: the Starbucks China University, Starbucks China Talent Exchange Program, a housing allowance subsidy for full-time baristas and shift supervisors, and a Career Coffee Break (sabbatical).

Starbucks has a long history of providing industry-leading benefits. Since 1988, Starbucks has offered comprehensive benefits, including affordable and comprehensive health care to eligible part-time and full-time partners in the U.S. To address the growing cost of higher education in the United States, Starbucks created the Starbucks College Achievement Plan in 2014 for eligible U.S. partners to earn bachelor’s degrees through Arizona State University with full tuition reimbursement. Announced in 2015, the innovative Home Sweet Loan programme in the U.K. provides an interest-free loan to help partners pay rental deposits when moving into a new home and, last year, Starbucks Korea introduced its College Achievement Plan to provide tuition support for partners who want to finish their four-year college degrees.

*Parents of Starbucks partners must be below the age of 75 to qualify for the insurance program. Other conditions may apply based on pre-existing health requirements stipulated by the insurance coverage provider. It will cover the medical treatment of 30 common critical illnesses among the elderly in China.

**Fully sponsored critical illness insurance program will be extended to partners who have served at least two years in the company’s company-owned markets. The parents must also currently be residing within Mainland China.

MEDIA CONTACT:

Global
Phone: 206 318 7100
Email: press@starbucks.com

SOURCE: Starbucks Corporation

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Starbucks Coffee Company announces Milan Reserve Roastery set to open in late 2018

Starbucks Coffee Company announces Milan Reserve Roastery set to open in late 2018

 

Milan, ITALY, 2017-Mar-01 — /EPR Retail News/ — Today (February 27, 2017), Starbucks Coffee Company (NASDAQ: SBUX) announced its newest Roastery location on Piazza Cordusio in Milan with a dramatic unveiling of the building prior to its remodel. Set to open in late 2018, the Milan Reserve Roastery will be the first Starbucks Roastery to open in the Europe, Middle East and Africa region, and the fifth globally.

Located at the historic turn-of-the-century Palazzo Delle Poste building on Piazza Cordusio, this one-of-a-kind 25,500-square-foot retail space will feature the company’s premium, small-batch Reserve coffees served in a variety of brewing methods in a beautiful environment.

“It took us some time to find it, but once I walked through the former Post Office building, I knew that it would be the perfect location to honor the craft of coffee and pay respect to the uniquely Italian culture in which it will be served,” said Howard Schultz, Starbucks chairman and ceo. “This store will be the culmination of a great dream of mine – 34 years in the making – to return to Milan with one of the most immersive, magical retail experiences in the world.”

“As mayor and as a citizen of Milan I am pleased that an international company, known for its standing and reliability such as Starbucks, has decided to invest in our city, choosing the famous Post Office building as the site of its first store in Italy,” said Milan Mayor Giuseppe Sala. “On this occasion, I would like to welcome this new venture and thank Howard Schultz for choosing Milan. Starbucks is a brand famous worldwide. Its presence in the city is for us a further confirmation of the important attractiveness of Milan on the entrepreneurial scale.”

At its recent Investor Day, Starbucks announced its ongoing investment in the premium Reserve brand, including opening 20-30 Roastery locations around the world, over time. This new location will be designed specifically for the Milanese customer, integrating the world-famous theatre of coffee in Italy and will offer freshly baked food on site from Italian artisan baker Rocco Princi, the exclusive food provider for all new global Roastery locations.

Following the Roastery opening, Italian licensee and business partner Percassi will open a small number of Starbucks stores in Milan for the balance of 2018.  Each new store will be carefully designed and curated to respect the local community and unique Milanese context. Taking a respectful and measured approach to store openings is at the heart of the Starbucks strategy in Italy. Together with the Milan Roastery, Starbucks and Percassi will create job opportunities for around 350 partners (employees) in Italy.

Starbucks debut of its first Roastery in Seattle in 2014 was the most successful store opening in the company’s history. Since then, the company has announced additional Roastery locations coming to Shanghai in 2017 and New York as well as Tokyo in 2018.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 24,000 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.

Media Contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks outlined five-year plan for strong global growth at its Biennial Investor Conference

Starbucks outlined five-year plan for strong global growth at its Biennial Investor Conference

 

  • Company to add 12,000 stores globally – to a total of 37,000 – by 2021
  • Projects 10 percent revenue growth, 15-20 percent EPS growth and mid-single digit comp growth annually
  • Roasteries and Starbucks Reserve stores to elevate the Starbucks brand and customer experience
  • New innovation to further accelerate momentum of the company’s digital flywheel and mobile ecosystem 

NEW YORK , 2016-Dec-09 — /EPR Retail News/ — Capping another record quarter, and year of growth and profitability, Starbucks (NASDAQ: SBUX) today (December 7, 2016 ) will host its biennial Investor Conference to present the company’s five-year strategic plan to grow revenue by 10 percent, EPS by 15-20 percent, and drive mid-single digit comp growth each year, as it plans to open approximately 12,000 new stores globally by 2021 while continuing to elevate the Starbucks Experience around the world.*

“Industry-leading innovation is driving our core business and creating further separation from competitors all around the world,” said Howard Schultz, chairman and chief executive officer. “Our Roasteries and Starbucks Reserve stores will further transform – and elevate – the Starbucks Experience we deliver to our customers, and are laying the foundation for our next wave of profitable, global growth. I have never been more energized or optimistic about the opportunities ahead as Kevin transitions to the ceo role and leads the most talented and experienced leadership team in Starbucks history.”

“Starbucks continues to deliver record financial performance. The customer experience created in our stores by partners who proudly wear the green apron is what makes Starbucks a destination for 80 to 90 million customers a week,” said Kevin Johnson, president and chief operating officer. “We are today executing against an ambitious, carefully-curated, multi-year strategy to further elevate the entire Starbucks brand and customer experience around the world, and further extending Starbucks leadership around all things coffee, retail and mobile. The power of our brand, the strength and momentum in our business, and the world-class management talent we have assembled give me great confidence in our ability to capture the enormous global growth opportunities ahead.”

Last week, it was announced that Johnson will assume the role of president and ceo at Starbucks, and Schultz will become executive chairman, effective April 3, 2017.

Transforming the Premium Coffee Experience

Since opening two years ago, the Starbucks Reserve® Roastery in Seattle has become recognized as the most dynamic and immersive coffee forward retail experience in the world, delivering an unprecedented level of premiumization to the coffee category and fueling the next wave of transformation that is elevating the Starbucks Experience globally. Building on this, the company plans to accelerate the presentation of the Roastery experience around the world, opening its next Roastery in Shanghai in 2017, Tokyo and New York City in 2018, and a fifth location in Europe to be announced early next year.

Each Roastery will serve as the foundation for Starbucks Reserve® stores – a new retail format that will integrate the theatre and romance of the Roastery with the unique culinary experience of the company’s new Italian food partner, Princi. These Starbucks Reserve® stores, under the leadership of the company’s new Siren Retail organization, represent a significant growth opportunity for the company in the U.S. and around the world. The first of these new stores will open in Seattle and Chicago in the second half of FY17, with plans to open 1,000 or more globally over time. In addition, the company plans to open standalone Princi stores in Seattle, New York and Chicago in late 2017 and in early 2018. The company is also extending elements of the high-end Roastery experience to its core Starbucks® stores, adding Starbucks Reserve® experience bars in up to 20 percent of its total portfolio (including new and renovated locations) by 2021.

Premiumization Strategy to Drive Innovative New Customer Experiences

Starbucks Reserve® Roasteries will serve as an innovation pipeline that will elevate the brand and contribute a “halo” to the entire Starbucks Experience. This includes new product breakthroughs that will contribute to the growth of the company’s ecosystem, segmented strategically across all Starbucks® stores. Earlier this year, Starbucks introduced its first limited-time beverage offering inspired by the Roastery, the Smoked Butterscotch Latte. This was followed by Nitro Cold Brew, which is now available in more than 500 U.S. company-owned locations and select stores in Canada and China, as Starbucks pursues a $600 million global Cold Brew opportunity. Both products continue to reinforce the company’s focus on Roastery-inspired craft at scale, as well as ongoing investment in the cold coffee category. In core stores, Starbucks innovative, coffee-forward beverages such as Flat White, Cold Brew, Latte Macchiato and Iced Coconut Milk Mocha Macchiato all support the company’s premiumization strategy. In January, customers nationwide will be introduced to another Roastery offering with the introduction of the Cascara Latte. Made with the fruit of the coffee cherry, Cascara lends subtle notes of dark brown sugar and maple to classic Starbucks® espresso. With its strong retail foundation and operational excellence, Starbucks is bringing Roastery-inspired innovations like this to market more rapidly than ever before, creating further distinction from competitors.

Starbucks is simultaneously innovating and expanding its food menu with products customers have been looking for, starting with the launch of Sous Vide Egg Bites in January 2017 – a wheat-free, low calorie, high protein, convenient breakfast; the spring launch of a Certified Gluten-Free Breakfast Sandwich; the expansion of the successful Bistro Box platform; as well as a regional rollout of delicious organic soups. Relevant innovation has become fundamental to unlocking the lunch daypart and building on existing breakfast daypart momentum, giving the company the ability to realize additional profitability and incremental sales. Starbucks® Breakfast Sandwich sales have more than doubled over the past four years and innovation will continue to drive meaningful growth, creating and meeting customer demand for innovation across all dayparts. Building on this strong momentum, Starbucks once again aims to double food growth over the next five years.

Extending the Digital Flywheel

Starbucks offers the largest and most robust mobile ecosystem of any retailer in the world, with more than 12 million Starbucks Rewards™ members (up 18 percent year on year), eight million mobile paying customers with one out of three now using Mobile Order & Pay, and more than $6 billion loaded onto prepaid Starbucks Cards in North America during the past year alone. Today, Starbucks will unveil an innovative conversational ordering system, My Starbucks® Barista, powered by groundbreaking Artificial Intelligence (AI) for the Starbucks® Mobile App. Starbucks® Mobile App customers will be able to place their orders via voice command or messaging interface, delivering unparalleled speed and convenience, enhancing customer loyalty and engagement and further extending the accessibility of the Starbucks® app. The My Starbucks® Barista feature will roll out first on iOS in limited beta in early 2017 and be made available to more iOS and Android users in subsequent releases.

Starbucks digital flywheel has also continued to gain momentum with the launch of true one-to-one personalization. While still early in the evolution of this service, Starbucks hyper-personalized e-mail reward offerings – with more than 400,000 variations – have more than doubled customer response rates over previous segmented email campaigns, translating into increased customer engagement and, importantly, accelerated spend. Starbucks has delivered personalized offers to customers directly on the front screen of the mobile app. By early 2017, the company expects to complete the rollout of suggested selling and recommendations (suggesting items for pairing or additions to a customer’s order) during Mobile Order and Pay checkout, which the company believes will further fuel engagement and growth. With Starbucks Rewards™, the company’s new spend-based loyalty program, customers are finding increased value when being rewarded for bigger purchases. This enables the company to boost ticket, create greater marketing flexibility and pursue “Stars Everywhere” partnerships to create further Star earning opportunities, while reducing “order splitting.” With a 94 percent program retention rate, and new international markets on the horizon, the program is stronger than ever before.

Unlocking High-Value Opportunities in China

Customers in China have continued to embrace the Starbucks brand, with some of the company’s most innovative, efficient and profitable stores producing record revenue and strong same-store sales growth in FY16. Starbucks newest class of stores in China are delivering the highest AUVs, ROI and profitability of any store class in the company’s 17-year history in the market. Starbucks now operates approximately 2,500 stores in 118 cities in China and employs more than 30,000 partners (employees), opening over a store a day – a growth rate that will continue to accelerate well into the future. Starbucks remains on track to open more than 5,000 stores in China by 2021 and expects the market will eclipse that in the U.S. over time. While Starbucks business in China is in its very early stages of development, the company will announce today a series of strategic moves it is making in the digital and mobile space to further extend customer engagement and loyalty.

Expanding Global Leadership Position in At-Home Coffee and Ready-to-Drink

Over the next five years, Starbucks expects its Channel Development segment, which includes its Consumer Packaged Goods (CPG) portfolio, Branded Solutions (licensed stores and foodservice), and Ready-to-Drink (RTD) segments, will generate an incremental $1 billion in revenue, grow operating income by 75 percent, and double its RTD business outside of the U.S. The company is the industry leader in premium single serve, premium packaged roast and ground coffee, and Ready-to-Drink products, and is well positioned to grow its share of these markets both in the U.S. and globally. The company’s more than 20-year partnership with PepsiCo to create the North America Coffee Partnership (NACP) is a more than $2 billion business and has approximately 97 percent share of the RTD coffee category. The NACP continues to bring to the market highly relevant, new and innovative coffee and energy products to meet the needs of customers looking for premium, on-the-go coffee offerings. In spring 2017, the company will launch new bottled Starbucks® Cold Brew Cocoa and Honey with Cream in select markets across the U.S. In Latin America, Starbucks has expanded its partnership with PepsiCo to begin distribution of the iconic bottled Frappuccino® chilled coffee beverage across ten markets. In China, where the RTD coffee and energy category represents a $6 billion opportunity that is projected to grow by 20 percent over the next three years, Starbucks and its partner, Tingyi Holding Corp., have rapidly achieved distribution in over 37 major Chinese cities and over 7,100 points of distribution, experiencing strong consumer demand.

Starbucks is extending this same disciplined growth and innovation to the RTD tea category, which is a fast growing $4 billion category, starting with the upcoming launch of bottled Teavana® Craft Iced Teas in partnership with Anheuser-Busch. The first line of teas will begin shipping to select Northeast U.S. retailers in February and customers will soon enjoy four new, vibrant varieties brewed from the finest Teavana® teas and botanicals with no artificial flavors. The new RTD teas include Pineapple Berry Blue Herbal Tea, Peach Green Tea, Mango Black Tea and Passion Tango® Herbal Tea. Later in 2017, select flavors will roll out to Starbucks® stores with plans for national channel availability by 2018.

Creating Long-Term Opportunities for Partners

From being among the first to offer comprehensive health benefits and equity in the form of stock for partners who work 20 hours or more a week, to providing them with the opportunity for full tuition reimbursement for a bachelor’s degree from Arizona State University through the innovative Starbucks College Achievement Plan, Starbucks has continued to invest in and innovate around the partner experience while balancing the needs of its customers, shareholders and the marketplace. Starbucks has now matched $78 million in 401K savings in the U.S. with a total fund balance of $1.3 billion as of FY16. Its Global Bean Stock program, which grants partners equity in the form of company stock, generated $221.6 million in pre-taxed gains in FY16. The company also recently announced it will add an enhancement to the program in 2017, doubling the annual Bean Stock award for U.S. hourly store partners with at least two years of continuous service with the company. Further, with the recent move to a new healthcare platform, U.S. partners are now saving an average of 15 percent per pay check on healthcare premiums compared to last year.

Starbucks is finding that these incremental investments in both wages and benefits have helped support and elevate its partners, attract and retain the best talent, provide measured improvement in service to customers and deliver outsized returns to shareholders. In fact, since announcing the Starbucks College Achievement Plan two years ago, the company has enrolled more than 6,300 U.S. partners in the program and is on track to celebrate 1,000 graduates in 2017, with a commitment to graduating 25,000 partners from the program by 2025. Early results from the program are showing that participants have twice the retention rate and are more than four times more likely to achieve a promotion in responsibility.

In the spirit of the company’s Mission and Values, Starbucks CUP (Caring Unites Partners) Fund, an emergency financial assistance program for partners impacted by natural disasters and family emergencies, generated over $2.1 million in contributions from partners in FY16 through a combination of “round up” in stores and payroll contributions. Since it launched in 1998, partners have raised more than $18 million toward the CUP Fund. The company also matched $784,000 in individual partner charitable donations and volunteer hours, and donated more than 300,000 meals since launching its FoodShare initiative in select U.S. markets in March 2016. Looking ahead, Starbucks plans to roll out FoodShare to all 8,000+ U.S. company-operated stores over the next three years.

*Revenue and EPS growth are based on non-GAAP FY16 results. A reconciliation of FY16 GAAP revenue and EPS to non-GAAP revenue and EPS can be found here.

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 upon information available to Starbucks as of the date hereof, and Starbucks actual results or performance could different 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, 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, 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 2, 2016. The company assumes no obligation to update any of these forward-looking statements.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Robert F. Kennedy Center for Human Rights presented Howard Schultz with 2016 Ripple of Hope Award

Robert F. Kennedy Center for Human Rights presented Howard Schultz with 2016 Ripple of Hope Award

 

Seattle, 2016-Dec-09 — /EPR Retail News/ — Tonight (December 6) the Robert F. Kennedy Center for Human Rights presented Howard Schultz, Starbucks chairman and ceo, with its 2016 Ripple of Hope Award celebrating leaders who are committed to social change.

Schultz was honored, alongside U.S. Vice President Joe Biden and Guggenheim Partners’ Chairman of Investments Scott Minerd, during a gala in New York City.

“The words and actions of Robert F. Kennedy have been a powerful inspiration to me since I was a young man. The moral courage he demonstrated during his too-short life remain an essential beacon of truth, justice and love for all Americans,” said Schultz. “I am humbled and honored to receive the Ripple of Hope Award.”

The Robert F. Kennedy Human Rights organization’s award recognizes leaders of the international business, entertainment and activist communities who reflect Robert Kennedy’s passion for equality, justice, basic human rights, and his belief that we all must strive to “make gentle the life of this world.”

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks Corporation announces that Kevin Johnson to become CEO; Howard Schultz to become executive chairman

Starbucks Corporation announces that Kevin Johnson to become CEO; Howard Schultz to become executive chairman
Starbucks Corporation announces that Kevin Johnson to become CEO; Howard Schultz to become executive chairman

 

  • Kevin Johnson to become chief executive officer and assume full responsibility for Starbucks global business and operations
  • Howard Schultz to become executive chairman and focus on retail innovation and accelerating growth of Starbucks ultra-premium retail formats

SEATTLE, 2016-Dec-02 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today (December 1, 2016 ) announced that Kevin Johnson, president and chief operating officer and a 7-year member of the Starbucks Board of Directors, will expand his responsibilities and assume the role and responsibilities of president and chief executive officer, effective April 3, 2017.

Also effective April 3, 2017, Howard Schultz, chairman and ceo, will be appointed executive chairman and will shift his focus to innovation, design and development of Starbucks Reserve® Roasteries around the world, expansion of the Starbucks Reserve® retail store format and the company’s social impact initiatives. In this new role Schultz will continue to serve as chairman of the Board.

“Starbucks consistently outperforms the retail industry because our stores, our offerings and the experiences our partners create make us a destination. The best evidence of the success of the core strategy driving our business is that we continue to deliver quarter after quarter of record, industry leading revenue, comp sales and profit growth, and that the newest classes of Starbucks stores continue to deliver record-breaking revenues, AUV’s and ROI both in the U.S. and around the world,” said Schultz. “As I focus on Starbucks next wave of retail innovation, I am delighted that Kevin Johnson – our current president, coo, a seven-year board member and my partner in running every facet of Starbucks business over the last two years – has agreed to assume the duties of Starbucks chief executive officer. This move ideally positions Starbucks to continue profitably growing our core business around the world into the future.”

As president and chief operating officer since March 2015, Johnson has led the company’s global operating businesses across all geographies as well as the core support functions of Starbucks supply chain, marketing, human resources, technology, and mobile and digital platforms. Johnson has been a Starbucks board member since 2009, and will continue to serve as a member of the Board.

“Over the past two decades, I have grown to know Starbucks first as a customer, then as a director on the board, and for the past two years as a member of the management team. Through that journey, I fell in love with Starbucks and I share Howard’s commitment to our mission and values and his optimism for the future,” said Johnson.  “It is an honor for me to serve the more than 300,000 partners who proudly wear the green apron and I consider it a privilege to work side-by-side with Howard, our world-class board of directors, and a very talented leadership team. Together, we will reaffirm our leadership in all things coffee, enhance the partner experience and exceed the expectations of our customers and shareholders.  We believe in using our scale for good and having positive social impact in the communities we serve around the world.”

Johnson’s career spans 33 years in the technology industry which included a 16-year career at Microsoft and a five-year tour as CEO of Juniper Networks. At Microsoft, he led worldwide sales and marketing and became the president of the Platforms Division. In 2008, he was appointed to the National Security Telecommunication Advisory Committee where he served Presidents George W. Bush and Barack Obama. He joined the Starbucks board in 2009 and the management team in 2015.

Transcript from Investor and Media Conference Call, December 1, hosted by Howard Schultz and Kevin Johnson

Howard Schultz:

Kevin and I are very excited to have this opportunity to provide additional context around this afternoon’s announcement and to answer any questions you might have.

You may recall that it was three years ago that I shared with you what I sensed were the early signs of a seismic shift in consumer behavior – away from bricks-and-mortar and towards mobile and online retailing. Today, that shift has taken firm hold around the world, both disrupting and redefining retailing and significantly reducing the consumer foot-traffic that traditional retailers have relied on for decades.

Despite the shift, Starbucks has been able to consistently outperform the retail industry. We’ve been able to do so because our stores, our offerings and the experiences our partners create make us a destination, and because we invested way ahead of the curve to create world-class mobile, loyalty and digital capabilities that enable us to provide our customers with an increasingly elevated Starbucks Experience to our customers.

Evidence of the correctness, and the success, of the core strategy that is driving our business are the facts that we continue to deliver quarter after quarter of record, industry-leading revenue, comp sales and profit growth, and that each successive new class of Starbucks stores is delivering record-breaking revenues, AUVs, ROI – both in the U.S. and around the world. This trend was repeated most recently in the 2016 fiscal year that just ended.

I also shared with you the view that the U.S. was over-retailed. To survive – let alone succeed – traditional bricks-and-mortar retailers would have to evolve their physical spaces into relevant customer destinations, as Starbucks stores have been for the last 40 years through the environments we create and the beverages and foods we serve – and create premiumized, experiential consumer venues.

That view is what inspired development of the Starbucks Roastery and Reserve brand.

Since its opening two years ago, our Seattle Roastery has become widely recognized as the world’s most immersive, coffee-forward retail experience. Executives from premier global retailers like Apple, Nike and Zara have shared with me their view that the Roastery delivers the best retail experience – in or out of coffee – that they have ever encountered. Our Roastery is attracting customers and visitors to Seattle alike, and casting a bright halo across the entire Starbucks global brand and ecosystem.

With the Roastery, we introduced into the coffee category a previously unattained level of premiumization. Its success is unparalled, last year achieving a comp sales increase of 24% and delivering a ticket that is four times the ticket of a typical Starbucks store. The Roastery has become a learning laboratory for breakthrough innovation and experiential design and a beacon for the next wave of Starbucks global growth and evolution.

Going forward, we will open at least 20 Roasteries around the world, six by the end of calendar 2019 alone. At the same time, elements of the Roastery are forming the basis of the 1,000 or more Starbucks Reserve stores we will be opening around the world in the years ahead.

Starbucks Reserve is a new, premium retail coffee format that will showcase the newest coffee-brewing methods and offer customers the finest assortment of exclusive, micro-lot coffees sourced from around the world in an all sensory experience emblematic of our Seattle Roastery, paired with artisanal food offerings developed with our partners from Italian artisanal baker Princi. We expect Starbucks Reserve stores to deliver twice the unit economics of the typical Starbucks store.

We will also add Reserve bars into thousands of existing Starbucks stores over time. Let me explain what a Reserve bar is and what that means to the company.

The Roastery has taught us and demonstrated that we can create customized, handcrafted beverages for our customers, using cutting-edge brewing methods and profitably deliver them at scale. Over time, you will see us introduce this unique capability into thousands of existing Starbucks stores around the world, further elevating the Starbucks Experience we deliver to our customers and further extending the halo that the Roastery casts across the entire Starbucks brand.

Like our current stores – and the new classes of Starbucks stores we will be opening globally in the years to come – Roasteries, Reserve Stores and Reserve bars that will be customer destination venues. They will broaden, deepen and elevate our customer experience, and represent an unprecedented new global growth opportunity for the company. I am personally as passionate about developing the Reserve brand, and opening more Roasteries, as I was about opening our first espresso bar more than 30 years ago in Seattle.

As I shift my focus to this next wave of retail innovation, I am sincerely pleased that Kevin Johnson – our current president, coo, a seven-year board member, and my partner in running every facet of Starbucks business day-to-day over the last two years – will be assuming the duties of Starbucks chief executive officer in April 2017. This move ideally positions Starbucks to continue to profitably grow our core business around the world.

Let me tell you why I personally asked Kevin to take on the ceo role, and why the Board and I believe that he is the ideal ceo for Starbucks at this moment in our journey.

Many of you are familiar with the breadth of global management experience and the deep consumer and technology expertise that Kevin brought to Starbucks when he joined our board in 2009.

Since then, Kevin has been a wise and supportive resource for me, personally, both during and following our company’s transformation. For years he has provided invaluable insights into how we scale the company around the world, and how to best integrate industry leading customer facing technology into our customer experience and operations.

I’ll simply note that Kevin has been immersed with us on management and operations issues and opportunities well before he took over the coo role two years ago. And that the two fiscal years following his engagement have been the best years in the history of Starbucks Coffee Company, with the most recent year producing record-shattering financial results and operating metrics across the board. Let me just say he deserves a tremendous amount of credit.

Along the way, Kevin and I have formed a trusting partnership, and Kevin’s collaborative leadership style has won the loyalty and respect of our people while driving the team to deliver record performance.

Kevin brings to the ceo role an unparalleled understanding of the market dynamics and strategic choices that have driven Starbucks to become one of the world’s most recognized and respected companies and brand.

We share a passion for customer-focused innovation and a commitment to preserving Starbucks heritage. Our complementary backgrounds – my entrepreneurial journey building Starbucks and Kevin’s decades spent scaling global businesses – will continue to help Starbucks navigate this new period of worldwide growth and innovation.

Kevin is, in every respect, a true servant leader and a person whose courage, compassion and empathy model the very characteristics we want for all partners and all our leaders. His approach to solving complex problems and his ability to bring out the best in people will continue to make all of us at Starbucks better in the same context that he has made me better.

I will remain Starbucks executive chairman, focusing full-time on the incredible growth opportunities we have in expanding Roasteries and building out our portfolio of Reserve stores and on Starbucks social impact agenda which will be a significant part of the focus going forward.

The truth is, in all my years at Starbucks I have never been more energized or exhilarated about the opportunities that lie ahead.

Please join me in congratulating Kevin. These are exciting times for all of us. Kevin…

Kevin Johnson:

Thank you, Howard, and good afternoon everyone.

Howard summarized our strategic imperative very well. Given the seismic shifts in consumer retail behavior, we have seamlessly extended our brick-and-mortar experience to the digital world, and we are now focused on a multi-year strategy to elevate the entire brand, extend our differentiation around the customer experience, and build on the strength of Starbucks as a destination.

Our five-year strategic plan, which we will review again at next week’s investor conference in New York, outlines seven core strategies for growth that will enable us to capture the global growth opportunities before us.

I firmly believe in this strategy, and we are already in execution mode. As a leadership team, we have prioritized initiatives, allocated resources, and aligned talent to enable us to execute against this strategic plan. It was the key driver of the organizational alignment decisions we made in July, when we created a Global Starbucks Retail organization and a Siren Retail organization.

Today’s announcement is another evolutionary step in our journey. This formalizes the leadership roles and responsibilities that Howard and I have taken on as we focus on this strategic plan. This plan requires us, as a leadership team, to execute several things in parallel and do them well. We are doing this by leveraging Howard’s unique capability to establish an ultra-premium consumer experience through the Roasteries and Reserve Stores while we continue to leverage my experience in large global businesses and technology to accelerate the pace of customer-relevant innovation across the entire brand – all at scale.

I value the partnership that Howard and I have developed over the past decade. My experience working with him on the board since 2009 combined with the past two years on the management team has evolved into a very special relationship. We share common values, a love for the company, and a commitment to always do the right thing for our partners, our shareholders, the customers and communities we serve.

I do want to acknowledge the obvious: Howard Schultz is among the world’s most iconic leaders and entrepreneurs. I know Howard doesn’t personally think of himself that way, but as his business partner and friend, I know this to be true. It is a privilege to work side-by-side with Howard. I have great confidence in our strategy, the partnership that we have developed, and the world-class talent we have assembled.

The women and men of Starbucks Leadership Team have become my trusted partners. They support this transition, and I appreciate the passion, creativity and commitment that each person brings to this team. We work well together and have built a foundation of trust, transparency and teamwork. I believe we will elevate our collective contribution as we pursue our mission and achieve the company’s ambitious goals.

A few final thoughts: Having Starbucks in my life has been a gift. I know I am not alone. So many Starbucks partners have shared their personal life stories with me and what Starbucks means to them. I have so much respect and admiration for the more than 300,000 partners who proudly wear the green apron in service of others, and I am proud to serve them. I want to thank Howard for his faith in me, his ongoing partnership, and the immeasurable gifts he has given so many for so long. I am honored to serve as the chief executive of a company that has a role and responsibility – and a deep opportunity – to create value for so many.

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, 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 and www.news.starbucks.com.

Forward Looking Statements

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 upon information available to Starbucks as of the date hereof, and Starbucks actual results or performance could different 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, 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, 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 2, 2016. The company assumes no obligation to update any of these forward-looking statements.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

###

The Starbucks Foundation and Schultz Family Foundation support No Child Sleeps Outside campaign by Mary’s Place

The Starbucks Foundation and Schultz Family Foundation support No Child Sleeps Outside campaign by Mary’s Place
The Starbucks Foundation and Schultz Family Foundation support No Child Sleeps Outside campaign by Mary’s Place

 

  • With family homelessness at a crisis point, King County’s business leaders, including The Starbucks Foundation, Schultz Family Foundation, Microsoft Corp., Dick’s Drive-In, Comcast, Alaska Airlines, Weyerhaeuser, Expedia, Nordstrom, Group Health Cooperative, Bank of America, Key Bank Foundation, Group Health, and the Seattle Mariners, are joining an unprecedented employer-led effort to raise more than $3 million to ensure “No Child Sleeps Outside”
  • Campaign benefitting Mary’s Place arrives in more than 200 Starbucks stores across King County, where Starbucks will raise awareness and match customer donations (up to an additional $1 million) throughout the month of December

SEATTLE, 2016-Dec-01 — /EPR Retail News/ —The Starbucks Foundation and Schultz Family Foundation announced today (November 29, 2016 ) their support of the annual No Child Sleeps Outside campaign by Mary’s Place. Together with other businesses, they are joining an unprecedented effort to mobilize the community, and contributing over $3 million to provide safe emergency shelter for the estimated 500 unsheltered families in King County, including hundreds of children. The campaign also has the support of companies like Microsoft Corp., Dick’s Drive-In, Comcast, Alaska Airlines, Weyerhaeuser, Expedia, Nordstrom, Group Health Cooperative, Bank of America, Key Bank Foundation, Group Health, Seattle Mariners, as well as the Seattle Metropolitan Chamber of Commerce and Downtown Seattle Association which together represent thousands of Seattle businesses.

Following a nearly 20 percent jump in the homeless count last year, families with young children are waiting months for emergency shelter, leaving many sleeping on the streets, in cars and parks across the community. This move by The Starbucks Foundation, Schultz Family Foundation, Microsoft, and others supports an immediate expansion of Mary’s Place and responds to the critical, short-term need to bring unsheltered families inside. Separately, the organizations also expressed support for the mayor’s Pathways Home strategy, which addresses some of the systemic problems contributing to the homeless crisis. It includes a shift towards rapid rehousing, funding for expanded shelter hours at several shelters, and the creation of lockers for the homeless. Recognizing that city and county reforms to provide affordable housing will take months or years, supporters of the No Child Sleeps Outside campaign believe it is critical to provide immediate emergency shelter for hundreds of children.

“The 500 families with small children who are sleeping outside in King County cannot wait for the promised reforms and housing that will take a year or more,” said Howard Schultz, chairman and chief executive officer of Starbucks and cofounder of the Schultz Family Foundation. “We need to treat this daily tragedy with the same urgency that would follow any natural disaster. This is a short-term but urgent humanitarian need, and we are proud to join other Seattle employers in the No Child Sleeps Outside campaign.”

Mary’s Place is a 17-year-old emergency shelter organization with six locations throughout the county that operates primarily with private funding. Mary’s Place provides emergency shelter to nearly 40 percent of families experiencing homelessness across King County by serving 115-120 families per night, and 400 families throughout the year. However, 20 families a day are still turned away because there is not enough capacity at these shelters.

“King County is facing an unprecedented homelessness crisis and more than 500 families are sleeping outside each night in places unfit for habitation,” said Marty Hartman, executive director of Mary’s Place. “It breaks our hearts to have to turn them away each day. We are so incredibly grateful for the support of our business partners like Starbucks, Microsoft, the Schultz Family Foundation and so many others who are making it possible for us to expand our services and bring more families inside to warmth, safety, and stability.”

“No child should have to sleep outside at night. We must come together as a community to address this vital need as a local imperative,” said Brad Smith, Microsoft president. “We are pledging $1 million, including $250,000 to Mary’s Place, to address homelessness across King County.  We will support partners throughout the area to pursue both short- and long-term systemic solutions, including permanent housing.”

The Starbucks Foundation to Match Customer Donations in more than 200 King County Stores in December

In addition to a $1 million financial contribution to the No Child Sleeps Outside campaign, The Starbucks Foundation will match every dollar donated by customers in participating King County Starbucks® stores between December 1-31, up to an additional $1 million dollars to help shelter local families. The Starbucks Foundation will also allocate an additional $250,000 to other local nonprofits, including the United Way, YWCA, and Youth Care, that connect homeless families and youth to job placement programs, and other critical services.

Howard and Sheri Schultz, cofounders of the Schultz Family Foundation, are also personally contributing $1 million to Mary’s Place through the Schultz Family Foundation to expand both shelter capacity and the organization’s ability to move families into permanent housing. In addition, the Schultz Family Foundation will continue to support other Seattle homelessness organizations to reduce the number of unsheltered youth and young adults.

About Mary’s Place

Mary’s Place empowers homeless women, children and families to reclaim their lives by providing shelter, nourishment, resources, healing and hope in a safe community. Mary’s Place operates six crisis response family shelters providing refuge and community for 400 family members experiencing homelessness. The organization focuses on an innovative strategy of combining prevention, emergency shelter and resources for transition into housing to bring families out of homelessness. At their Family Center, Mary’s Place provides shelter, services and resources in the same building. This allows families, together with their assigned Housing & Wellness Advocates, to focus on individualized plans for overcoming barriers and finding employment and stable housing. It does all this cost effectively in loaned buildings that are empty and awaiting development, for just dollars per night. To learn more, visit www.marysplaceseattle.org.

About The Starbucks Foundation

The Starbucks Foundation was created in 1997 as part of Starbucks commitment to strengthen communities. The foundation supports programs around the globe through Starbucks Opportunity for Youth Grants as well as other grant programs. The Starbucks Foundation is a separate 501(c)(3) charitable organization that receives funding primarily from Starbucks Corporation and private donations.

About Schultz Family Foundation

The Schultz Family Foundation was cofounded in 1996 by Sheri Kersch Schultz and her husband Howard Schultz, chairman and ceo of Starbucks Coffee Company. Guided by a belief that an “inequality of opportunity” is stifling America’s potential, the foundation invests in innovative programs and partnerships that unlock human potential, remove barriers to success and create new pathways to opportunity. The Schultz Family Foundation currently supports two signature national initiatives: Onward Youth and Onward Veterans. For more information, visit http://schultzfamilyfoundation.org,

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks Corporation to host its 2016 Investor Day on Wednesday, December 7th

Starbucks Corporation to host its 2016 Investor Day on Wednesday, December 7th
Starbucks Corporation to host its 2016 Investor Day on Wednesday, December 7th

 

SEATTLE, 2016-Nov-18 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) will host its 2016 Investor Day on Wednesday, December 7th. The event will feature presentations and a Q&A session with Howard Schultz, chairman and chief executive officer; Kevin Johnson, president and chief operating officer; Scott Maw, executive vice president and chief financial officer; and other members of the company’s senior leadership team.

Due to limited capacity, attendance is by invitation only. The event will be webcast live and all interested parties are invited to access the webcast from the company’s website: http://investor.starbucks.com. The event is scheduled to begin at 8:00 a.m. ET and will continue until approximately 12 noon ET. Following a break for lunch, the webcast of the live event will resume at approximately 1:30 p.m. ET and is expected to conclude at approximately 3:00 p.m. ET.

The presentation slides shown at the event and on the live webcast will be available for download on the company’s website by the end of the day on December 7, 2016. A replay of the webcast will remain accessible through January 6, 2017.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 24,000 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.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks CEO Howard Schultz met with the Shanghai Party Secretary Mr Han Zheng

Starbucks CEO Howard Schultz met with the Shanghai Party Secretary Mr Han Zheng
Starbucks CEO Howard Schultz met with the Shanghai Party Secretary Mr Han Zheng

 

Seattle, 2016-Oct-22 — /EPR Retail News/ — Starbucks chairman and ceo Howard Schultz met today (October 19, 2016) with the Shanghai Party Secretary to express his gratitude for the government’s support of Starbucks innovation and growth in China.

Meeting with Mr Han Zheng, Party Secretary of Shanghai, Schultz received full support for Starbucks first international Roastery. Opening in 2017, Starbucks Roastery in Shanghai will bring a first-of-its-kind coffee retail experience that combines coffee roasting, manufacturing, education and retail within a single facility to China.

Prior to the meeting, Schultz also met with Mr An Lusheng, Party Secretary of Jing’an District of Shanghai. Earlier this year, Starbucks global leaders met with Mr. An and Mr. Lu Xiaodong, the Mayor of the District in Shanghai, where they stated, “The new Jing’an is focused on developing high-end commercial sectors, establish new developmental goals for a modern cosmopolitan city and encourage new retail innovations within our district. The government fully supports this pioneering retail experience and initiative from Starbucks.”

In addition, Starbucks announced the promotion of Belinda Wong from president to chief executive officer of Starbucks China. Wong has been instrumental in Starbucks unprecedented growth in China – from 400 stores in 2011 to over 2,300 stores today – by leading on the foundational values of Starbucks mission and driving meaningful innovation for Starbucks partners (employees) and customers in China. In this role, Wong will oversee Starbucks plans to double its scale to operate 5,000 stores in China by 2021.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks and Common Ground Foundation encourage voter registration and participation during National Voter Registration Day event

Starbucks and Common Ground Foundation encourage voter registration and participation during National Voter Registration Day event
Starbucks and Common Ground Foundation encourage voter registration and participation during National Voter Registration Day event

 

Seattle, 2016-Sep-28 — /EPR Retail News/ — During a Turn Up the Vote party in Jamaica, Queens, New York, today (September 27) tens of thousands of Facebook Live viewers watched Starbucks chairman and CEO Howard Schultz and Grammy- and Academy Award-winning performer Common call for greater engagement by American voters.

Starbucks, the Common Ground Foundation and Democracy Works hosted the National Voter Registration Day event at Rufus King Park to encourage voter registration and participation in the voting process. Democracy Works’ TurboVote, a service designed to make the voting process simple and seamless, is accessible to all Starbucks partners (employees) in the U.S.

In addition, Starbucks has signed on to the TurboVote Challenge, a nonpartisan, multiyear initiative bringing together influential companies to get out the vote in record numbers. Google, Uber and Facebook have signed on to the coalition, bringing the number of participating companies to 47.

“In this political season, whether you are Republican or Democrat, one thing is for certain and that is history has shown us that in local, state, federal and even presidential election cycles, almost half of the country is not voting,” Schultz told the crowd. “So with TurboVote, Democracy Works, Starbucks and people like Common, we have been going around the country trying to make sure that everyone understands that the country has been built not only on our democracy, but on participation.”

Common said he’s become an advocate of voter participation after being a skeptic when he was younger, in part due to his participation in the 2014 film “Selma,” which chronicled Martin Luther King’s 1965 campaign to gain equal voting rights. “I really appreciate the ability to vote now, because I appreciate that people died so we could vote,” said Common. “I put the responsibility and accountability on you right now to know who is running in office locally, state-wide and federally who’s going to make the change that you want to happen.”

Also at the five-hour open-to-the-public block party were Democracy Works CEO Seth Flaxman, Queens Borough President Melinda Katz and Power 105’s DJ Envy. TurboVote, a digital tool that makes registering to vote fast and secure from computers and mobile devices, was also out in force registering voters.

Schultz and Common visited a nearby Starbucks that opened on the corner of Sutphin Boulevard and 89th Avenue last spring as part of the company’s efforts to support economic development and social change in at least 15 diverse, low- to medium-income communities.

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.com

Source: Starbucks

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Starbucks CEO Howard Schultz on compensation, Bean Stock, enhanced health care benefits, scheduling commitments, and dress code changes

Seattle, 2016-Jul-12 — /EPR Retail News/ — Starbucks chairman and ceo Howard Schultz sent the following message to all U.S. partners (employees) the morning of July 11, 2016, sharing new developments regarding compensation, Bean Stock, enhanced health care benefits, scheduling commitments, and dress code changes.

Dear partners,

On Friday, I wrote you that I was at a loss for words in the aftermath of a tragic week of violence in our country. This past weekend, as I prepared to share important news with you, a word found me. That word is trust. For me, trust is a force that brings people together regardless of differences because they share common values. While trust in America may seem to be fraying, I do believe the majority of Americans recognize our shared humanity and strive to ensure that respect, civility and compassion rise above the alternatives. Trust, after all, must be earned one human connection at a time.

Perhaps I am sensitive to this because earning your trust as partners has always been a foundational principle for me. Every day, I strive to build the kind of company that my father never had a chance to work for, one that not only cares for its people but gives them opportunities to be their best selves. Since our earliest days, the ways in which the company has tried to earn your trust has evolved.  From being among the first to offer comprehensive health benefits and equity for partners who work 20 hours or more a week, to the Starbucks College Achievement Plan that more than 6,000 partners are enrolled in, we have always tried to innovate around the partner experience while being sensitive to your diverse needs, as well as the needs of our customers, marketplace realities and the complexity of the world beyond our own.

Striking the delicate balance between profit and a social conscience is a responsibility I take personally.  Over the years, we have viewed our total compensation approach as the best way to create long-term opportunity for partners.  We believe strongly in this philosophy but also recognize we must do more to help partners take advantage of all the company has to offer.   Today I want to stress our ongoing commitment to make investments in our partners and share some new developments that reflect that commitment.

First, effective October 3, all partners and store managers in U.S. company-operated stores will receive an increase in base pay of 5% or greater. The range of increase will be determined by geographic and market factors and is intended to ensure Starbucks remains a retail employer of choice in all the markets where we operate.

Second, to recognize the contributions of our tenured partners in our ongoing success, we will be adding a future annual enhancement to our Bean Stock program. Specifically, we will be doubling the annual bean stock award for partners that reach two years of continuous service with the company.

The combination of these changes will result in compensation increases between 5% and 15%.  Our field leadership will be following up with market by market details in the coming weeks. These changes will begin to go into effect as early as October, and we remain committed to doing more each year to invest in our partners as part of our long-range, strategic plan.

Third, we are evolving our benefits program and online benefits platform so partners may shop, compare and choose health coverage with the similar convenience and personalization people experience when they shop, compare and choose airlines and airfare. Starting July 18, interactive tools on our site (mysbuxben.com) will allow partners to personalize their health coverage, select an insurance carrier and choose a coverage level that fits their needs, as well as a competitive price that fits their budget. In simple terms, the new health care options allow partners to only pay for the coverage they want and will actually use. We estimate that eligible partners could save as much as $800 annually by moving to a plan that better meets their needs. For partners selecting family coverage, savings are potentially more, perhaps as much as $2,600 annually.  Whatever plan you choose, any savings go right back into your paychecks.

I also want to address scheduling, since I know this is an important and ongoing issue for many partners. Just as some of our customers’ routines change during the summer, so too do some of yours. While we have made progress over the years in providing more stability and consistency in scheduling, our field leaders are committed to make every effort to help you meet your specific scheduling needs especially when it comes to ensuring your benefits eligibility going forward. To that end, please know that you have my personal commitment that we will work with every partner to ensure you have the hours you need.

Finally, dress code. We have long prided ourselves on welcoming and respecting diversity, and we’ve heard your requests for more freedom when it comes to bringing your “whole self” to work. We believe that more variety, flexibility and personalization will further elevate the Starbucks Experience – for partners and customers alike. Our latest dress code changes are designed to work well with the green apron while expanding your options, providing more room for self-expression, and allowing you to choose from items that may already be part of your everyday wardrobe. We look forward to sharing additional details about our dress code updates at the Partner Open Forum scheduled for the end of July.

Starbucks has long been a third place for our customers, but it must also be the right place for you, our partners. I truly hope that the coming changes—significant pay and Bean Stock enhancements; the added choice and potential savings in our healthcare plans; our ongoing commitment to scheduling that works for you; and our evolving dress code—will deepen the reservoir of trust between us.

Again, the world around us is increasingly fragile. But our commitment to you is not. We are in this together, and honoring your needs is essential to Starbucks success. I know this, and I thank you for sharing with your leadership, and with me, your dreams as well as your challenges. I also know how hard you work, and I remain grateful for your continued trust in Starbucks to help you realize your individual aspirations as we work together to realize our shared goals.

With humility and respect,

Howard

Media contact:

Global
Phone: 206 318 7100
Email: press@starbucks.co

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Starbucks CEO Howard Schultz on compensation, Bean Stock, enhanced health care benefits, scheduling commitments, and dress code changes

Starbucks CEO Howard Schultz on compensation, Bean Stock, enhanced health care benefits, scheduling commitments, and dress code changes

 

Source: Starbucks

Starbucks to bring its first international Starbucks Roastery and Reserve® Tasting Room to Shanghai in 2017

Immersive coffee experience to be located in the heart of the new HKRI Taikoo Hui Complex

SHANGHAI, 2016-May-31 — /EPR Retail News/ — Starbucks Coffee Company (NASDAQ: SBUX) today (May 26, 2016) announced that it will bring its first international Starbucks Roastery and Reserve® Tasting Room to Shanghai, China, in 2017. Located along Nanjing Road (West), one of the world’s busiest shopping destinations, the Roastery will be part of the soon to be built HKRI Taikoo Hui Project, Shanghai’s newest premium world-class retail, office, and hotel area.

Scheduled to open in late 2017, the new Starbucks Roastery and Tasting Room in Shanghai will be inspired by the first location that debuted in December 2014 in the company’s hometown of Seattle, Washington. The 2,700 square-meter (30,000 square-foot) Shanghai space will reflect a similar, immersive all sensory experience.  This interactive, retail environment will allow customers in China to better understand the craft of roasting and brewing a range of Starbucks coffees including the rare, limited availability of Starbucks Reserve coffees from around the world.

“China represents the most important and exciting opportunity ahead of us. As our first international Roastery, we will take even bolder steps to make this Shanghai location our most stunning store, while making it completely unique and relevant to the Chinese customer,” said Howard Schultz, chairman and chief executive officer of Starbucks. “The Starbucks Roastery environment honors coffee innovation as a modern day Willy Wonka experience, where customers are only feet away from the theatre and artistry of our coffee craft. I am confident this will be one of the most highly-anticipated store openings in our international markets.”

China is, today, Starbucks largest international market with more than 2,100 stores across over 102 cities, including 55 Starbucks Reserve® stores. The new Roastery represents Starbucks 45-year relentless pursuit for coffee excellence and promises to bring to China an unparalleled experience that starts with the passionate Starbucks partners. Exclusively at the Roastery, customers will be able to watch freshly-roasted beans arrive, connect with Starbucks coffee specialists and master roasters, enjoy a unique beverage and food menu, as well as savor some of the most unique, small-lot coffees brewed multiple ways. Starbucks believes this revolutionary retail concept will make the new Roastery one of the city’s latest and most iconic must-visit lifestyle destinations and landmarks, for Shanghainese and visitors from China and around the world.

The Shanghai Jing’an Government has given Starbucks their full support to bring this first-of-its-kind coffee retail experience that combines coffee roasting, manufacturing, education and retail within a single facility in China. Following a meeting with Starbucks global leaders, Shanghai Jing’an Party Secretary, Mr. An Lusheng, and Shanghai Jing’an Mayor Mr. Lu Xiaodong reiterated: “The new Jing’an is focused on developing high-end commercial sectors, establish new developmental goals for a modern cosmopolitan city, and encourage new retail innovations within our district. The government fully supports this pioneering retail experience and initiative from Starbucks.”

The Starbucks Roastery will be part of the HKRI Taikoo Hui complex, developed jointly between HKR International Limited and Swire Properties Limited, who are fully committed to launch this pioneering project with sustainability and quality at its core. The revolutionary retail experience of the new Starbucks Roastery will be located within a standalone semi-circle building of the complex that faces the bustling Nanjing Road (West), known as China’s Number One Commercial Street, due to its deep history and rich cultural heritage, which is set to become the most anticipated business and lifestyle destination in Shanghai.

Mandarin Press Release

Photos above from Starbucks Roastery in Seattle.

For more information on this news release, contact us

 

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Starbucks to bring its first international Starbucks Roastery and Reserve® Tasting Room to Shanghai in 2017

Starbucks to bring its first international Starbucks Roastery and Reserve® Tasting Room to Shanghai in 2017

Starbucks Q2 Fiscal 2016: Consolidated net revenues grew 9% to a Q2 record $5.0 billion

  • EPS Up 18% to a Q2 Record $0.39 Per Share; Comp Store Sales Up 7% in the U.S. and Americas; 6% Globally 
  • Revenues Up 9% to a Q2 Record $5.0 Billion; 5% Transaction Growth and 18% Revenue Growth in China; Operating Margin Expands to a Q2 Record 17.3%
  • Company Adds 900,000 Starbucks Rewards Loyalty Members in the U.S. since Q1; Now Has 12M Active U.S. Members
  • Company Reaffirms FY16 Growth Targets; Announces Additional 100M Share Repurchase Authorization

SEATTLE, 2016-Apr-25 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 27, 2016. Fiscal 2016 and fiscal 2015 GAAP results include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

Q2 Fiscal 2016 Highlights:

• Global comparable store sales increased 6%, comprised of a 4% increase in ticket and 2% increase in traffic

• Consolidated net revenues grew 9% to a Q2 record $5.0 billion

• Consolidated GAAP operating income increased 11% to a Q2 record $864 million

Non-GAAP operating income increased 11% over Q2 FY15 non-GAAP, to a Q2 record $878 million

• Consolidated GAAP operating margin increased 30 basis points to a Q2 record 17.3%

Non-GAAP operating margin expanded 30 basis points over Q2 FY15 non-GAAP, to a Q2 record 17.6%

• EPS increased 18% to a Q2 record $0.39 per share

• The company opened 350 net new stores globally, bringing total stores to 23,921 worldwide at the end of Q2

• Starbucks served nearly 16 million more customer occasions from its global comp store base – and over 12 million more customer occasions in the U.S. – in Q2 FY16 compared to Q2 FY15

• Membership in the company’s Starbucks Rewards loyalty program increased 16% year-over-year and 8% in Q2 versus Q1 FY16; company now has 12 million active loyalty members in the U.S.

• Mobile Order and Pay usage doubled year-over-year; company now processing 8 million Mobile Order and Pay transactions per month

PDF: Detailed financial data

“Starbucks record Q2 financial and operating performance – including a stunning 18% increase in revenues and a 5% increase in transactions in China – underscores the strength of the Starbucks brand and the resiliency of our global retail and CPG businesses,” said Howard Schultz, chairman and ceo. “Loyalty, technology and innovation are continuing to fuel our digital flywheel and propel our business forward all around the world.”

“Starbucks Q2 represented another quarter of solid growth, with the highest revenues of any non-holiday quarter in our history and excellent financial, operating and profit performance,” said Scott Maw, cfo. “The record-setting performance we delivered in the first half of fiscal 2016 ideally positions us to benefit from the investments we are making in our partners, in our stores and in groundbreaking innovation, and to continue delivering world class returns to our shareholders into the future.”

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-qualityarabica coffee. Today, with more than 23,000 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.

For more information on this news release, contact us

Starbucks next Roastery location will be in New York City

SEATTLE, 2016-Apr-07 — /EPR Retail News/ — Today, Starbucks (NASDAQ: SBUX) announced that its next Roastery location will be in New York City in the heart of the Meatpacking District at 61 Ninth Avenue, which is currently under development.

Scheduled to open in 2018, this New York location will get inspiration from the first Starbucks Reserve® Roastery and Tasting Room that debuted in December 2014 in the company’s hometown of Seattle, Washington. An homage to coffee, this first-of-its-kind experience has immersed customers in the craft of roasting and brewing the finest small lot coffees from around the world.

A local sensation since opening its doors, the Roastery is coffee as theater, encouraging customers to interact with Starbucks roasters and baristas in order to deepen their understanding of the art behind sourcing, roasting and brewing rare coffees. With Starbucks unique, small batch process taking center stage, the Seattle Roastery has transformed specialty coffee and reframed what is possible to do within the four walls of a retail environment.

“Our Seattle Roastery experience created something that had never been done before, transforming a retail environment into something far beyond just a coffeeshop and into the single best retail experience of any kind,” said Howard Schultz, chairman and chief executive officer of Starbucks. “In New York, we want to take elements from what we originally created and build something even bigger and bolder, celebrating coffee and craft in a completely unique and differentiated way. We want this experience to tell our customers that we’re coming to Broadway.”

The massive, 20,000-square-foot New York Roastery experience will build upon everything Starbucks has learned from integrating coffee roasting, manufacturing, education and retail, while ensuring an experience that is locally relevant to the market.

This project will be led by Arthur Rubinfeld, chief creative officer and president, Starbucks Global Innovation, and Liz Muller, vice president of Starbucks Creative and Global Design. Both executives will work closely with the joint venture of Vornado Realty Trust (NYSE: VNO) and Aurora Capital that is developing 61 Ninth. The development site, formerly Prince Lumber, was acquired by the joint venture in 2015.

The new building, designed by Rafael Viñoly, will be located one block south of Chelsea Market. Upon completion – which is expected by the end of 2017 – 61 Ninth Avenue will be approximately 170,000 square feet and rise nine stories.

Related: The Siphon Brewing Method

For more information on this news release, contact the Starbucks Newsroom

 

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Starbucks next Roastery location will be in New York City

Starbucks next Roastery location will be in New York City

Starbucks Coffee Company to open its first Italian store in 2017

SEATTLE, 2016-Mar-03 — /EPR Retail News/ — It’s a dream more than 30 years in the making.

Howard Schultz walked cobblestone streets of Milan for the first time in 1983 as the marketing director of Starbucks, which then sold whole-bean coffee from a handful of stores in Seattle. Schultz went to Italy to represent the company at an international trade show. He returned with an idea that would change the trajectory of Starbucks Coffee Company.

“The Italians had created the theater, romance, art and magic of experiencing espresso,” Schultz recalled. “I was overwhelmed with a gut instinct that this is what we should be doing.”

As Starbucks announces its will open in Italy in early 2017, Schultz shares the story of how the company’s history is directly linked to Milan, Verona and Italian espresso bar traditions.

“Everything we’ve done to date sits on the foundation of wonderful experiences that many of us have had in Italy,” he said.

The Symphony of an Italian Coffee House

The 1983 trade show was unremarkable. Schultz, however, found his daily walks to and from the event to be life changing as he visited several espresso bars along the way.

Schultz found a full-sensory experience greeted customers who stepped through the doorways of Milan coffee houses. Italian opera played as baristas ground coffee, steamed milk and pulled espresso shots in graceful, powerful motions as if they were conducting an orchestra. He noticed the baristas were celebrated professionals who seemed to know each customer they served.

“In each shop I visited I began to see the same people and interactions, and it dawned on me that what these coffee bars had created, aside from the romance and theater of coffee, was a morning ritual and a sense of community,” said Schultz.

On a day trip to Verona, he observed the coffee shops there were enhanced by Italian craftsmanship. Every detail of preparation and presentation was treated with reverence.

“I left Italy absolutely energized by the culture,” Schultz said. “I couldn’t wait to sit down with the two remaining founders of Starbucks and tell them, ‘We’ve got to do this.’”

Back at home in Seattle, Schultz’s enthusiasm was met with little more than a yawn from the company’s leaders, who said they’d been to Italy and the espresso bars there were “not what Americans wanted.” Their indifference turned to annoyance as they told a persistent Schultz they didn’t want to be in the restaurant business. Next came flat out resistance as they said no to all his suggestions.

Schultz said leaders at the time were stubborn, but so was he.

A Dream Delayed

Unwilling to drop the idea of bringing the first espresso bar to Seattle, Schultz convinced Starbucks founders to test the coffeehouse concept a year later. He asked for half of a new 1,500 square-foot store that was opening in downtown Seattle. Instead he got about 300 square feet. Schultz crammed equipment and a small counter into the space and began serving espresso when the store opened on a rainy morning in April 1984. Initially there wasn’t even a sign in the window.

Starbucks stores at the time were serving about 200 customers on a good day. The new store – with a coffee bar – served about 1,000 people a day.  Though it was a success with customers who tasted a caffé latte for the first time, Schultz was dealt a “crushing blow” when the owners said they had no plans to repeat the coffee shop experiment. It was considered a distraction from the company’s core business of selling high-quality arabica coffee beans.

Undeterred, Schultz returned to Italy to immerse himself in their coffee culture. Later he decided to leave Starbucks to form his own Italian-inspired coffee business, which he named for a Milan newspaper – Il Giornale. Starbucks invested in the Schultz start up and the first Il Giornale coffeehouse opened in 1986, offering brewed coffee and espresso beverages made from Starbucks beans.

Financial troubles at Starbucks bubbled to the surface around that time. Starbucks was trying to manage two brands – its own and Peet’s Coffee & Tea, which it had acquired in 1984. Starbucks founder Jerry Baldwin told Schultz he couldn’t keep running both companies and wanted to return to San Francisco to focus on Peet’s.

“He told me, ‘I’m going to sell Starbucks and the right person to buy it is you. I know you don’t have any money. I’ll give you 60 to 90 days to find the money,’” recalled Schultz. The acquisition price was $3.8 million. Schultz said it was “quite difficult,” but he raised the money and acquired Starbucks assets in 1987.

Job one was changing the name of Il Giornale to Starbucks Corporation. Next came putting coffee bars in every store, as Schultz wanted to do five years earlier. Starbucks also expanded with stores in Chicago and Vancouver, Canada.

“We began to elevate the romance and theater of the beverage, integrated with the merchandising and storytelling of roasting and selling whole bean coffee,” he said. “It’s all steeped in that trip to Italy in 1983. Everything is about that.”

Coming Full Circle

Schultz has returned to Italy once a year over the past 30 years. Although he doesn’t speak Italian, Schultz feels comfortable there and admires the quality and artistry of Italian products.

“The dream of the company always has been to sometime complete the circle and open in Italy, but we haven’t been ready,” said Schultz, who feels “intuitively” that the time is now right.

The Starbucks chairman and ceo is following the same instinct he felt initially when he walked the streets of Milan and marveled at the experience baristas created for their customers and communities.

Starbucks will enter Italy with “tremendous humility and great respect for the culture,” Schultz added, with the support of its business partner, Percassi – a well-respected and prominent Italian company with a proven track record for operating major brand partnerships across Italy. Percassi shares Starbucks passion for the history and cultural heritage of the country.

“We know that we are going to face a unique challenge with the opening of the first Starbucks store in Italy, the country of coffee, and we are confident that Italian people are ready to live the Starbucks experience, as already occurs in many other markets,” said Antonio Percassi, President of the company Percassi.

Starbucks doesn’t have real estate selected its first location in Italy, but Schultz has an image of the store in his mind.

“We have to deliver a stunning visual experience that is only topped off by the quality of the coffee and what it tastes like,” he said. “Visually, it has to be a very seductive place where Starbucks comes alive.”

The store will be designed with “painstaking attention to detail,” honoring the Italian people and their coffee culture.

Partners (employees) in the store will carry on a tradition of coffee theater and artistry, combining the emotion of Schultz’s first experience in Milan with the exceptional service visible in more than 23,000 Starbucks stores around the globe – from the first store in Pike Place Market to the grand, immersive experience of the Starbucks Reserve Roastery and Tasting Room in Seattle.

“It seems like yesterday I was walking those streets, and here we are,” said Schultz. “I want partners to be extraordinarily proud that we’re going back to the source where it all began, and we’re going to do it in a way that brings every aspect of the Starbucks Experience to life in Italy.”

Media Assets

Read: Howard’s Letter to Starbucks partners 

Press Release: With Humility and Respect, Starbucks Turns its Eye Toward Italy

Photo Captions for Downloads:

1. Howard Schultz, chairman and ceo Starbucks Coffee Company, visited the historic Duomo cathedral in Milan, Italy this week as he announces the brand’s intention to open its first Italian store in 2017.

2. Howard Schultz, chairman and ceo Starbucks Coffee Company, announces to Milanese artisans, entrepreneurs and business leaders his intention to open a store in Milan, Italy in 2017.

3. Howard Schultz, chairman and ceo Starbucks Coffee Company, stands in the center of Galleria Vittorio Emanuele II, one of the world’s oldest shopping malls, in Milan, Italy as he announces that Starbucks will open its first store in the country in 2017.

For more information on this news release, contact the Starbucks Newsroom

 

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Howard Schultz at Milan’s Duomo Cathedral

Howard Schultz at Milan’s Duomo Cathedral

Starbucks opened 528 net new stores in Q1 globally; reports record 8% sales increase

  • Strong Holiday Performance Drives 9% Comp Growth in the U.S. and Americas, 8% Globally; Global Traffic up 4%
  • Consolidated Net Revenues Rise 12% to a Record $5.4 Billion; Channel Development Revenues Jump 16%
  • Consolidated Operating Income up 16% to a Record $1.1 Billion; GAAP EPS of $0.46;
  • Non-GAAP EPS up 15% to a Record $0.46 Dollars Loaded on Starbucks Cards Increase 18% to a Record $1.9 Billion

SEATTLE, 2016-Jan-25 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal first quarter ended December 27, 2015. Fiscal 2016 and fiscal 2015 GAAP results include items which are excluded from non-GAAP results. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release for more information.

Q1 Fiscal 2016 Highlights:

  • Global comparable store sales increased 8%, including a 4% increase in traffic

​​Americas comp store sales increased 9%, including a 4% increase in traffic

China/Asia Pacific comp store sales increased 5%, driven by a 4% increase in traffic

EMEA comp store sales increased 1%, driven by a 1% increase in traffic

  • Consolidated net revenues grew 12% over Q1 FY15, to a record $5.4 billion
  • Consolidated GAAP operating income increased 16% over Q1 FY15, to a record $1.1 billion

Non-GAAP operating income increased 15% over Q1 FY15 non-GAAP, to a record $1.1 billion

  • Consolidated GAAP operating margin increased 60 basis points over Q1 FY15, to a Q1 record 19.7%

Non-GAAP operating margin expanded 40 basis points over Q1 FY15 non-GAAP, to a Q1 record 19.9%

  • GAAP EPS of $0.46 versus Q1 FY15 GAAP EPS of $0.65

Non-GAAP EPS increased 15% over Q1 FY15 non-GAAP, to a record $0.46

  • Opened 528 net new stores in the quarter globally, including a record 281 stores in China/Asia Pacific and a record 79 stores in EMEA
  • Channel Development revenues increased 16%; operating margin expanded 210 basis points and operating income increased 23% over Q1 FY15
  • Company served over 23 million more customer occasions from its global comp store base – 18 million in the U.S. – in Q1 over the prior year
  • Record $1.9 billion loaded on Starbucks Cards in the U.S. and Canada; 1 in 6 American adults received a Starbucks Card over Holiday, up from 1 in 7 in Q1 FY15
  • Membership in the company’s My Starbucks Rewards loyalty program increased 23%; the company now has more than 11 million active members in the U.S.

View detailed financial data here

“Starbucks record Q1 2016 financial and operating results, highlighted by comp sales increases of 9% in the U.S., 8% globally, another 4% increase in global traffic – and record performance from our Channel Development segment – underscore the accelerating strength and relevance of the Starbucks brand around the world,” said Howard Schultz, Starbucks chairman and ceo. “Successful retail, CPG, digital, mobile, loyalty, card and investment strategies are combining to accelerate our revenue growth and drive significant margin expansion and EPS leverage.”

“We’ve entered fiscal 2016 with another record-breaking quarter and a continuation of the accelerating momentum we saw in our business throughout 2015,” said Scott Maw, Starbucks cfo. “The investments we are making in our people and our business are driving record, industry leading operating and financial performance and consistently strong comp growth, and are both paying off today and setting us up for continued strong performance into the future.”

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-qualityarabica coffee. Today, with more than 23,000 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.

For more information on this news release, contact us.

Starbucks Coffee Company launches new digital music experience with Spotify

  • Over 7,500 Starbucks U.S Company-Operated Stores Integrated with Leading Streaming Service Spotify Through World-Class Starbucks App, Connects Customers to New Digital Music Experience
  • 10 Million Member My Starbucks Rewards® Loyalty Program and Spotify Users Can Now Discover, Save and Take Starbucks Curated Content with Them
  • Weekly Feature to Highlight New Artists, Albums and Freshly Curated Starbucks Playlists

SEATTLE, 2016-Jan-21 — /EPR Retail News/ — Today (January 19, 2015), Starbucks Coffee Company (Nasdaq: SBUX) launched a new digital music experience with leading streaming music service Spotify, allowing Starbucks Mobile App customers to immediately discover music playing overhead in Starbucks® stores, save Starbucks-curated songs to a playlist on Spotify and listen to Starbucks music anywhere they go on Spotify.[1] This first-of-its-kind music experience reaches customers at more than 7,500 Starbucks company-operated stores in the U.S., 10 million My Starbucks Rewards loyalty members, and U.S. Spotify users.

“Music has played a pivotal role in our stores for over 40 years and we have been at the forefront of how to integrate it into a retail environment,” said Howard Schultz, chairman and ceo of Starbucks. “Today is the next era in that experience. We are merging the physical and digital, providing new access points for Spotify as they continue to grow globally, placing more control into our customers’ hands and giving artists the world’s largest stage for them to share their talent.”

The new Starbucks music platform is available to both iPhone and Android users within Starbucks Mobile App, offering customers the personalized experience they have come to expect from both companies.  In addition to being able to discover music playing overhead at a participating Starbucks store, Starbucks Mobile App users will now be able to view recently played songs, save songs to a personal playlist on Spotify, “Love” songs to influence future Starbucks playlists as well as share these songs on social networks and “Play on Spotify.” Spotify users can also find new playlists from Starbucks as well as Starbucks most popular music from the past 20 years on Spotify. These features are accessible on Spotify’s Free and Premium services.

“Starbucks shares our passion for music and desire to create the best, personalized experience for users and customers,” said Daniel Ek, CEO of Spotify. “Together with Starbucks, we’re creating a unique new digital music experience that offers Starbucks customers and Spotify users the ability to discover even more music at Starbucks and enjoy that same music and more on Spotify, whenever they want and wherever they are.”

Starting in January, Starbucks will also begin a new weekly feature in the Starbucks app highlighting both established and emerging artists, as well as curated playlists giving musicians a new way to reach millions of customers across the U.S.  Starbucks partners have also begun influencing the music played in their stores by choosing from a variety of Starbucks-curated playlists and creating “Store Favorites” playlist. This is made possible via a mobile app powered by a new PlayNetwork CURIO hardware device that delivers branded entertainment and media to retail stores.

For more than four decades, Starbucks has built a differentiated third-place experience with music at the heart of its coffeehouse culture. In 1994, a dedicated entertainment team began selecting original CDs spanning a diversity of musical genres and geographies. This program has spotlighted the extraordinary careers of legendary artists such as John Lennon, Aretha Franklin and Bonnie Raitt, among many others. Bob Dylan, Yo-Yo Ma, the Rolling Stones and Ray Charles are among the legends who identified their favorite recordings for Starbucks® Artist Choice series.  Starbucks seasonal CDs have celebrated moments ranging from Valentine’s Day to summer road trips to holiday festivities. Starbucks has also become a champion of once emerging artists such as John Legend, Madeleine Peyroux and Fleet Foxes, introducing customers to these musicians at an early point in their careers.

[1] Data connection may be required

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 23,000 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.

About Spotify
Spotify is an award-winning digital music service that gives you on-demand access to over 30 million tracks. Our dream is to make all the world’s music available instantly to everyone, wherever and whenever you want it.  Spotify makes it easier than ever to discover, manage and share music with your friends, while making sure that artists get a fair deal. Spotify is now available in 58 markets globally with more than 75 million active users, and over 20 million paying subscribers.

For more information on this news release, contact us.

SOURCE: Starbucks Corporation

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Starbucks Coffee Company launches new digital music experience with Spotify

Starbucks Coffee Company launches new digital music experience with Spotify

Alibaba’s Jack Ma joins Starbucks Howard Schultz to discuss the role and responsibility of 21st Century companies

  • Long-term China growth aspirations on-track with 2,000 stores
  • Reaffirms Employer of Choice commitment with largest-ever Partner-Family Forum in Chengdu and China partner experience investments
  • Continued innovation in customer experience through Starbucks social gifting
  • Alibaba Group Founder and Executive Chairman, Jack Ma, joins Starbucks chairman and ceo, Howard Schultz, to discuss the role and responsibility of 21st Century companies

CHENGDU, China, 2016-1-12 — /EPR Retail News/ — Howard Schultz, chairman and chief executive officer, Starbucks Coffee Company (NASDAQ: SBUX) today reaffirmed the strategic role of the China market in shaping the future of the company with the announcement of several market-leading initiatives, further elevating the unique Starbucks Experience for partners (employees) and customers.

Schultz and other company leaders announced the initiatives at Starbucks China Partner-Family Forum in Chengdu where they joined more than 1,300 Central and Western China region partners and their family members to experience Starbucks mission and values together and celebrated the 2,000 store milestone achievement.

“As Starbucks second largest and fastest-growing market globally, China represents the most important and exciting opportunity ahead of us,” said Schultz. “We are deeply humbled by the enthusiasm with which Chinese people have embraced Starbucks as part of their daily ritual over the past 17 years. Over time, it’s conceivable that China could become our largest market and I am grateful to our 30,000 dedicated China partners and their supportive families for the significant contributions they are making to Starbucks success. The continued investments we are making, coupled with the culture of innovation we have established, are elevating Starbucks partner and customer experience beyond that of any other retailer in China.”

Joining Schultz on stage at the Partner Family Forum was Jack Ma, founder and executive chairman of Alibaba Group, where both leaders shared their vision to redefine the roles and responsibilities of a for-profit public company – one that invests in its people, giving back to the local communities in meaningful ways, and creating unique developmental opportunities for the youth of today.

In his introduction of Ma at the Starbucks China Partner Family Forum, Schultz said, “When he and I get together we’re talking about common values and we’re talking about humanity.  Together building the kind of companies our parents would be proud of.  I asked him to come here and share with you his thoughts about building his company and share with you what it means to succeed against all odds in China.”

In addressing the Starbucks Partner Family Forum Ma said, “Alibaba hopes to work together with Starbucks to create even more opportunities to develop Chinese youth because they are our future. All of you at today’s event represent China’s future. The more seeds of love we sow in our Chinese youth today, the more love they will give to the world tomorrow.”

Unparalleled Partner Investments

The Partner Family Forum is a first-of-its-kind employee engagement event, first introduced by Starbucks China in 2012, as part of a series of new initiatives aimed to honor the special role families play in China. Today’s event highlights Starbucks aspiration to build  the world’s most admired and trusted company, while recognizing the significant contributions partners have made and will continue to play in the company’s success in China. The Starbucks Central and Western region is one of the fastest growing regions in China, having tripled its store footprint over the past three years, now operates more than 300 stores across 23 cities.

In addressing Starbucks China partners and family members at the standing room only Partner Family Forum in Chengdu, Schultz said, “I am so incredibly proud of what you (Starbucks China partners) have accomplished. And I promise you (the parents of Starbucks partners) we will grow this company the right way.  I am a true believer in the future of China because of the humanity and the heart and the conscience of the Chinese people. And we will do everything we can to continue to build a great and enduring company that you and your parents can be proud of.”

Beginning this month, full-time baristas and shift supervisors* in Starbucks company-owned stores across China will receive a monthly housing allowance subsidy to help them overcome the initial financial challenges of starting their careers and often, living and working independently. This benefit is expected to on-average to cover 50-percent of their monthly housing expenditures, enabling partners who are starting in their careers the ability to better take care of themselves, while they pursue their personal and professional dreams.

In addition, Starbucks China will introduce the Career Coffee Break, a partner benefit tradition from the U.S., to recognize, appreciate and honor the hard work put in by long serving partners. Starting this month, Starbucks partners within our company-operated store with 10 consecutive years of service will be eligible to apply for a career coffee break, of up to 12 months unpaid leave, to refresh themselves and more importantly, spend quality time with their loved ones and family. The partner will be guaranteed reinstatement to either the same position or a position with similar pay and benefits upon their return to work. The partner’s social and company benefits will also continue during the career coffee break.

“These and other industry-leading partner investments demonstrate our continued commitment to support our China partners to achieve their personal and professional aspirations,” said Belinda Wong, president, Starbucks China. “Families play a tremendous role in the life and career choices for our partners in China and it’s important that we include their families in the conversation of who we are as a company and the investments we’re making toward supporting our partners’ future.”

Starbucks has always believed that success is best when shared. The current pay and benefits programs have reflected the company’s commitment to take care of its partners and their families by offering comprehensive health insurance to full-and part-time partners, and the Starbucks Bean Stock program which gives all partners equity in the company. In addition to the ongoing training and development opportunities at the Starbucks China University, last year the company introduced the Starbucks China Talent Exchange Program for retail partners. In 2015, 16 partners started their international one-year exchange program in Singapore, while another 32 partners have had the opportunity to work in various store locations across China.

Starbucks was named China Best Employer by Aon Hewitt twice consecutively in 2013 and 2015, and China Best Employer Award and Best HR Management Company by Zhaopin and 51job, China’s leading human resource portals, respectively.

Elevating the Customer Experience

Over the past 17 years, Starbucks has been incredibly humbled by how its Chinese customers have come to embrace its stores as a community gathering place. Innovating the customer experience is core to the company and Starbucks once again delivered on this commitment with the opening of an e-flagship store on Alibaba’s Tmall last month, China’s largest open business-to-consumer (B2C) platform. As Starbucks first social gifting platform in China, the Starbucks Tmall e-flagship store  enables customers to foster deeper and more meaningful connections with their friends and loved ones by giving them a convenient and easy way to send a Starbucks gift digitally.  Customers have embraced this new social gifting concept with great enthusiasm. The store has more than 300,000 registered fans and has become the number one performing brand on Tmall’s “Food and Beverage” category within its first month.

“Digital is highly relevant to our customers in China and we are committed to building a locally-relevant Starbucks 4th-place Experience that seamlessly integrates our unique store experience and the digital space, while building moments of human connection for our customers” added Wong. “We will learn from the experiences in our other markets and explore new strategic partnerships with leading platforms to enable the Starbucks China digital flywheel. More awaits us as we implement new digital experience innovations to surprise, delight and exceed the expectations of our Chinese customers.”

Starbucks continues to elevate and innovate its unsurpassed coffee experience at the forefront of its stores for the Chinese customer. Over the past two years, Starbucks opened 45 Starbucks Reserve stores and introduced the pour-over slow bar in 150 stores across China. The Starbucks Reserve stores are specialized store experiences in China devoted to highlighting some of the world’s most exotic, rare and exquisite coffees that are available in limited quantities globally.

As Starbucks accelerates its growth in China to achieve its goal to operate 3,400 stores by 2019, so too will its foundational aspiration to build a different kind of company – one committed to being performance-driven through the lens of humanity. Through the Starbucks China Youth Development Program introduced in June 2014, the company has convened numerous leading experts to establish a unique curriculum focused on developing future leaders in China. 1,500 university students, from both urban and rural areas, and those with disadvantaged backgrounds, will benefit from the program over three years.

*across all company operated markets with a minimum of  six-months with Starbucks China required for eligibility.

Extended captions for photos above:

Starbucks chairman and ceo, Howard Schultz, greets partners (employees) and their family members at Starbucks Partner Family Forum in Chengdu China on Tuesday January 12, 2016.

Starbucks chairman and ceo, Howard Schultz, addresses more than 1,300 company partners (employees) and their family members at Starbucks largest-ever Partner Family Forum in Chengdu China on Tuesday January 12, 2016.

Jack Ma, founder and executive chairman of Alibaba Group (left), and Starbucks chairman and ceo, Howard Schultz (right), shared their visions with more than 1,300 Starbucks partners (employees) and their family members on redefining the role and responsibility of 21st Century public companies at Starbucks Partner Family Forum in Chengdu China on Tuesday January 12, 2016.

For more information on this news release, contact us.

SOURCE:  Starbucks Corporation

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Jack Ma and Howard Schultz, China Partner Family Forum

Jack Ma and Howard Schultz, China Partner Family Forum

Starbucks Corporation announces that Mary Dillon, CEO of Ulta Beauty was elected to the Starbucks Board of Directors

SEATTLE, 2016-1-11 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced that Mary Dillon, CEO of Ulta Beauty (NASDAQ: ULTA) was elected to the Starbucks Board of Directors on Jan. 4 and she will serve on the Board’s Compensation and Management Development Committee. Dillon brings three decades of experience leading consumer-driven brands to build brand engagement and drive profitable growth.

“Mary shares our desire to deliver shareholder value while embracing the values and guiding principles that serve our people, our customers, and the neighborhoods where we do business, and we are honored to have her join the Starbucks Board of Directors,” said Howard Schultz, chairman and ceo. “Mary’s proven track record for leveraging consumer insights and customer-focused strategies together with her leadership and passion for excellence make her the ideal addition to contribute to our next phase of growth as a company.”

Since Dillon took the helm of Ulta Beauty in June 2013, the company has achieved record sales and earnings. Dillon led Ulta Beauty to 21 percent top-line growth and comparable sales growth of nearly 10 percent for fiscal year 2014.  Ulta Beauty currently operates 875 stores in 48 states and a thriving e-commerce business making it the nation’s largest specialty beauty retailer. Dillon is responsible for an employee base of more than 22,000 full- and part-time employees, 92 percent of whom are women.  In the last two years, Dillon has added 5,380 new jobs, an increase of 30 percent.

“I am delighted to join the Starbucks Board of Directors,” said Dillon. “Starbucks and Ulta Beauty share many attributes: incredibly passionate customers, compelling loyalty programs, exciting growth strategies that put the customer at the center of all we do, and tremendous care for our people. I look forward to working with Howard Schultz, the Starbucks Board and leadership team to contribute to the future success of this great company.”

Prior to joining Ulta Beauty, Dillon served as president and CEO of U.S. Cellular.  During her tenure, U.S. Cellular expanded its product and service offerings and strengthened new channels of distribution, while maintaining industry-leading customer satisfaction levels. Dillon previously served as global chief marketing officer and executive vice president for McDonald’s Corporation, where she led the company’s worldwide marketing efforts and global brand strategy, including a focus on children’s well-being initiatives. Prior to that, she served as president of PepsiCo’s Quaker Foods division.

Dillon serves on the Ulta Beauty Board of Directors and previously served on the Board of Directors for Target Corporation and U.S. Cellular.

Dillon is an active member of the Chicago community and believes strongly in giving back as a mentor to other female business leaders.  She currently serves on the Boards of several non-profits, including the Ounce of Prevention Fund, World Business Chicago, the Civic Committee of the Commercial Club of Chicago, and Loyola Academy.

Named to Fortune’s Business Person of the Year list (#6) in 2015, Dillon is a proud first-generation college graduate born in Chicago. Dillon received her Bachelor of Science degree in marketing and Asian studies from the University of Illinois at Chicago. Dillon has four children, and along with her husband Terry, resides in the Chicago area.

Starbucks also announced the upcoming retirement of Board member Olden Lee, retired executive of PepsiCo, immediately prior to Starbucks 2016 Annual Meeting in March.  Lee has served on the Starbucks Board of Directors since 2003.

For more information on this news release, contact us.

SOURCE: Starbucks Corporation

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Starbucks Corporation announces that Mary Dillon, CEO of Ulta Beauty was elected to the Starbucks Board of Directors

Starbucks Corporation announces that Mary Dillon, CEO of Ulta Beauty was elected to the Starbucks Board of Directors

Starbucks CEO Howard Schultz addressed more than 200 people representing veterans service organizations

SEATTLE, 2015-10-9 — /EPR Retail News/ — At any given time in the past decade, less than 1 percent of the American population has been on active military duty. As a result, many who served in the Armed Forces recently feel like the general public doesn’t understand their sacrifice.

“I don’t think we’ve ever lived through a situation where the American people have been so disconnected from the military, their families and the unbelievable sacrifice they have pursued on our behalf. The question for all of us now is how do we bridge the divide between the military and civilians? That is the challenge of the day,” said Howard Schultz, Starbucks chairman and ceo. He addressed more than 200 people representing veterans service organizations, all branches of the Armed Forces and leaders from other companies at Starbucks headquarters in Seattle today (October 8, 2015).

Starbucks brought participants together for a day-long conference called The Muster — an Old English military term for the process of accounting for members of a unit, generally after a battle — to create a collective blueprint to help with the transition from military service to civilian careers.

The effort is a continuation of Starbucks commitment, announced two years ago, to hire 10,000 veterans and military spouses by the end of 2018. While building a pipeline of talent focused on veterans and active duty spouses, the company realized it can do more to bridge the divide between military and civilian populations.

Overcoming ‘simple indifference’

Former Defense Secretary Robert M. Gates said the “divide” is not an indication of animosity toward veterans and those who serve. In fact, the U.S. military ranked as the highest-rated institution in a 2015 Gallup survey, with 72 percent of Americans expressing “a great deal” or “quite a lot” of confidence in the institution. That compares with an 8 percent confidence rating for Congress.

“The problem for the military today is simple indifference,” said Gates, who served as U.S. Secretary of Defense from 2006 to 2011. Currently, he’s president of the Boy Scouts of America and a Starbucks board member.

Gates called on companies, veterans service organizations, nonprofits and the military to unite their efforts toward the goal of redefining the post 9/11 veteran experience.

“At the heart of the all-volunteer force is a contract between the United States of America and those who serve,” said Gates. “It’s a promise that when young Americans step forward on their own to serve, they do so with an expectation that their country will do right by them when their deployment is done. That includes easing the transition from battlefield to homefront, from homefront to workplace and if we get this right, to a number of executive suites as well.”

Veterans aren’t ‘looking for a soft landing’

Throughout the event in Seattle, guest speakers noted that military men and women and their spouses are not looking for sympathy or handouts.

“Veterans don’t stop serving when they take off their uniforms. They just serve in a different capacity,” said Army Lt. Gen. Stephen Lanza, commander of I Corps and Joint Base Lewis-McChord. “They’re not looking for a soft landing; they’re looking for your support for a smooth takeoff.”

Hiring veterans is not a charitable act, he added. It is a business imperative.

“Veterans have all the attributes you want in an employee. They are committed to something greater than themselves. They understand diversity. They are able to accomplish a mission under the hardest of conditions. They are leaders,” said Lt. Gen. Lanza.

On Veterans Day, Starbucks will provide an update on progress being made hiring veterans, active-duty reservists and military spouses.

A pledge from Starbucks to hire, honor and strengthen veteran communities has produced several initiatives, including over the past two years: patriotic green aprons to spark conversations between veterans or military spouses and customers; Starbucks Military Family Stores, run primarily by veterans and military spouses; Armed Forces Network expansions to a include Starbucks partners (employees) in dozen of cities around the U.S.; and Military Mondays, a program in a Starbucks store where William & Mary law students and professors offer their expertise to resolve veterans’ disability-compensation challenges. Read more here: Paying Tribute and Creating Opportunity.

For more information on this news release, contact the Starbucks Newsroom.

SOURCE: Starbucks Corporation

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Starbucks CEO Howard Schultz addressed more than 200 people representing veterans service organizations

Starbucks CEO Howard Schultz addressed more than 200 people representing veterans service organizations

Starbucks CEO Howard Schultz’s message to all partners for the end of 2015 fiscal year

SEATTLE, 2015-9-28 — /EPR Retail News/ — Starbucks chairman and ceo Howard Schultz sent this message to all partners (employees) to wrap up the 2015 fiscal year and look ahead to 2016.

Dear Partners

It’s early Sunday, I’m sitting at the bar of the Starbucks Reserve Roastery and Tasting Room, enjoying the “nectar of the gods” in the form of my Doppio Espresso Macchiato.

As I reflect on our 44th year as a company, this is just where I want to be to write an end-of-year message.

The Roastery itself symbolizes our commitment to our roots as well as the risks we are willing to take to ensure our future is as innovative, as relevant and as meaningful as our past.

This year, in ways large and small, we continued to move closer to our aspirational goal of redefining therole and responsibility of a for-profit public company.

Behind the scenes, in our stores and in the headlines, we once again created long-term value for our shareholders, exceeded the expectations of our customers, and made you, our partners, proud.

Given all we have accomplished, it can be hard to believe that we are still in the early days of making unprecedented cultural and social impact in communities beyond our own, as well as for our own.

With 23,000 stores in 68 countries, the Starbucks brand and in-store experience has never been stronger or more relevant. Our global growth and development coupled with the innovation of mobile and digital customer-facing proprietary technology linked to loyalty, personalization, and MSR are also in their infant stages. New store formats and designs, and Starbucks Reserve stores, are evolving to have lives of their own. Soon, the next generation of Teavana stores will be unveiled, and The Roastery will open in cities around the world following our stunning debut in Seattle.

This week we will expand our commitment to sustainability with an innovative effort to distribute coffee trees to farmers in coffee growing regions around the world.

And we have made huge strides in our hiring commitments around honoring veterans, creating opportunity for at-risk young people and increasing the number of partners taking advantage of apprenticeships, university programs and the Starbucks College Achievement Plan for U.S. partners.

I promise you that more awaits us, as we continue to take the road less traveled and build the company globally.

Despite all this excitement and progress, we have more to do.

For our partners, the leadership team and I remain personally committed to further investment and innovation in the opportunities we create for you. This past year, we took major steps forward, raising wages, creating the Starbucks College Achievement Plan, investing in new technology tools, enhancing benefits and making several policies more relevant for the overall partner experience. We will continue to learn, listen and innovate on your behalf, moving quickly to keep building a company that creates unique opportunities for its people.

As the leader of our 300,000 partners who comprise our company, I am so proud of everyone in our organization.  With great humility I thank you for your ongoing creativity, courage and daily contributions.

With deep respect and admiration.

Onward,
Howard

For more information on this news release, contact the Starbucks Newsroom.

 

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Starbucks CEO Howard Schultz's message to all partners for the end of 2015 fiscal year

Starbucks CEO Howard Schultz’s message to all partners for the end of 2015 fiscal year

Starbucks chief digital officer Brotman: Mobile Order & Pay expands to all company-owned U.S. stores ahead of schedule

SETTLE, 2015-9-22 — /EPR Retail News/ — Adam Brotman loves a good success story. Ask him what he does when he’s not immersed in Starbucks core digital businesses and Brotman will tick off a list of biographies of entrepreneurs he’s recently polished off and then point to a stack of nonfiction hardcovers that are up next.

Reading about groundbreaking business leaders ranging from Steve Jobs and Bill Gates to his current boss, Howard Schultz, and his uncle, Costco co-founder Jeffrey Brotman, is nothing new for Starbucks chief digital officer, who recalls consuming similar fare alongside comic books when he was a boy.

The Northwest native has written a new chapter in his own success story with Starbucks recent expansion of Mobile Order & Pay. The service, which allows customers to buy customized food and beverages from their phone before they arrive at a Starbucks® store, was introduced in Portland in late 2014. In June of 2015, Starbucks expanded the program to 3,400 additional stores across 17 states. Today the service expands to all company-owned U.S. stores ahead of schedule.

Brotman, who also oversees all of mobile, web, card, digital loyalty experiences, Wi-Fi and much of the in-store digital products used by partners (employees), joined Starbucks in 2009 as senior vice president and general manager of Digital Ventures. He’d previously served as CEO of Barefoot Yoga Company and Senior Vice President for Corbis. He founded the in-store service PlayNetwork in 1996 after completing his studies at the University of Washington School of Law the previous year.

Brotman discusses his career, and the challenges ahead, in this Starbucks Newsroom Q&A:

You’re a Seattle native. Do you recall the first time you encountered Starbucks?

The first time I encountered Starbucks, ironically, wasn’t in Seattle. I went to college in Los Angeles at UCLA. I was familiar with Starbucks from before I left for college in 1987, probably from the original Starbucks and perhaps from some of what had happened after Howard merged Il Giornale with Starbucks. My uncle was one of the early investors and board members too, but really my awareness was just out of the corner of my eye. During the time I was in college, the company began to open some stores in L.A. I remember feeling hometown pride – this is that cool Seattle coffee shop. It had been around for a while in terms of the original concept, but it was relatively new in the mid- to late-‘80s, in terms of expansion. I started going there when I was in college.

I came back to Seattle in 1992 to go to law school and, by that point, Starbucks had just gone public. I remember thinking: This whole town is bonkers for Starbucks and double-tall lattes. I was just a brewed drinker and I began to drink lattes because I needed to get in the cool-kid crowd. I became a rabid Starbucks customer during law school from 1992 to 1995.

You received your bachelor’s degree from UCLA in classical civilizations. Are there things you learned from the Greeks and the Romans that apply to your business career?

I think Greek and Roman history, philosophy and art were the perfect canvas for a liberal arts education. It’s history, it’s literature, it’s poetry, it’s art, it’s philosophy. Those are things that are great to write about. It hones your writing and thinking skills. It helps you with business creativity as well.

This is true of a lot of liberal arts education. It teaches you to look at something that’s somewhat esoteric or somewhat abstract from daily life, but you can relate it to your daily life. And then write about it. Those skills help with problem solving and creative thinking.

After receiving your law degree, your career took a different path. Did you intend to be a lawyer?

I went into the study of law specifically with an objective to have it help me with business, which is rare. Most people go to law school to become a lawyer. In my case, I had a three-step path. Luckily, my uncle [Jeffrey Brotman] went to University of Washington law school, then had a law career and then started Costco. He mentored me on this idea that law school is an amazing opportunity for young people – or frankly people of any age – to learn to think like a lawyer.

That is similar to what I just mentioned about my liberal arts education. By focusing on business law, at an early age in your legal career you could have access to board rooms and CEOs and CFOs in a way that no one else could at that stage in their legal career. Because you’re not a litigator; you’re a business lawyer. And business lawyers, particularly 20 years ago, were a rarity.

There was no track for business law at law school, so if you took it upon yourself to become a business lawyer you could become part of this small group going to boardrooms. And if you want to go into business, you want to have access to boardrooms so that you can learn and watch and operate on that playground.

To my uncle’s annoyance, I quit my law practice after two years, got the entrepreneurial bug and started PlayNetwork. I think the grand plan was for me to practice law for another five years. Probably in hindsight I should have. But my entrepreneurial passion overtook my career logic.

As chief digital officer for Starbucks and CDO Club’s U.S. Chief Digital Officer of the Year, you’re the tip of the tech spear for an innovative company. Have you always been an early technology adopter?

I have been, although honestly I wouldn’t describe myself that way. But when others now see what I’ve done from starting PlayNetwork to being involved at Corbis and now getting involved here as chief digital officer, they tell me they remember me from junior high school and high school always having the first version of the computer – whether it was an Atari system or a Commodore computer when I was a kid. They remind me that when it came to digital music, I was the very first person anyone knew who had a CD player. I never coded anything in my life, outside of those classes in school, so I’m not a technologist. I’m a digital guy.

Mobile Order & Pay has been your focus for some time now. What is the biggest surprise you encountered in developing Mobile Order & Pay and rolling it out nationally?

It took a year of intense work before we even launched it amongst a tight-knit group of different functions. This is core to operations now. We designed Mobile Order & Pay to be seamlessly integrated into the operational flow, for both the partners in the store and the customers in the store. But also for how the production engine works. How the hand-off plane works (where customers pick up their orders). How the routines for the partners work.

We designed it from day one with the goal of making this a seamlessly integrated feature set and platform, much like we did with drive-thru, as a company. We had to have Operations be a key partner to this core of different functions that came together to work on this. What surprised me the most was how similarly operators in our company and the digital team think.  It was fascinating.

Both teams, I think, are very entrepreneurial. Both teams are extremely customer-centric and thought, “Let’s not engineer this in a way to make it the way we want it. Let’s think of the customer experience first, and the partner experience is part of that. Don’t let the tail wag the dog.” I think the operators found a long-lost cousin in Digital.

The program would not be the success it is today if there wasn’t that partnership between those two groups. It was not a matter of just some master plan and everyone got onboard. It was co-created by a number of different groups: the Technology group, the Operations group, the Digital group, the Marketing group, the Loyalty group. We all got in a room and designed it together and the partnership was great.

You emphasize learning as a key component of what you do in the digital realm. Who are your teachers?

I grew up reading business biographies. My dad and uncle would read business biographies when they were in their thirties and forties and I would always read the hand-me-down business biographies. I still read every business biography that I can get my hands on. You can see on my desk: a book about how Twitter was founded; a book about Jeff Bezos and how Amazon was founded; this is a Hillary Rodham Clinton book; here’s a biography about Ariana Huffington; here’s one about Apple. I tend to read a lot about Apple.

I learn a lot from what other consumer-facing digital companies are doing, particularly out of Silicon Valley. What is Jack Dorsey doing with Square and Twitter? What is Mark Zuckerberg doing with Facebook? I look at apps and think about what Starbucks can do to enhance our relationship with our customers – as opposed to what other retailers or other restaurant companies are doing.

When was the last time you were totally unreachable by phone or computer?

That’s a hard one. I remember once telling everyone that I’m not going to be reachable for a week and I’m really going to try to unplug. But that was a couple of years ago, to be honest. I should probably do it more often.

Sign up for Starbucks news alerts here, and follow @StarbucksNews on Twitter

For more information on this news release, contact Starbucks Newsroom.

 

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Starbucks chief digital officer Brotman: Mobile Order & Pay expands to all company-owned U.S. stores ahead of schedule

Starbucks chief digital officer Brotman: Mobile Order & Pay expands to all company-owned U.S. stores ahead of schedule

Starbucks chairman and ceo Howard Schultz visits historic Charleston church and pledges support for victims’ families

SEATTLE, 2015-6-22 — /EPR Retail News/ — In the days following the shooting that took the lives of nine people in a historic Charleston, South Carolina church, a former Starbucks partner wishes he could have had one more big family gathering with his sister.

“She was the most kind-hearted person. She called often to remind me that we should get the whole family together soon. Things would come up and we put it off,” said JA Moore, fighting back tears. After a long pause, he added, “She’s bringing us together now. For a funeral.”

Moore’s half-sister, Myra Thompson, was leading a small Bible study group gathered at Emanuel African Methodist Episcopal (AME) Church Wednesday night. In addition to familiar faces, was the 21-year-old man now charged with nine counts of murder for the shooting death of Thompson and eight others at the church in the heart of Charleston.

“Myra was more like a second mom to me than a sister because at 62 she was almost double my age, but she was the most loving woman I know and a pillar in the community,” Moore said. “I’m still stunned, but being with other partners today (6/19) is helping me deal with the loss.”

Moore was among 75 Starbucks partners (employees) who met with company chairman and ceo Howard Schultz. After sending a letter to all partners Thursday calling the tragedy a “senseless hate crime that has impacted not only that community, but our Starbucks family and our nation as a whole,” Schultz flew to Charleston on Friday to meet with local baristas and managers. Starbucks has about 200 partners in 18 stores in the city and surrounding area.

In addition to meeting with partners in three stores and listening to their stories during a partner forum, Schultz pledged that the Starbucks Foundation will donate $100,000 to two funds in the community. A $50,000 contribution will be made to the “Mother Emanuel Hope Fund,” established by the City of Charleston to help family members of the shooting victims pay for funerals, counseling and other needs. The other $50,000 will be directed to Lowcountry Ministries – Reverend Pinckney Fund to be used to support vulnerable populations and youth projects that Reverend Clementa Pinckney was passionate about.

“You can tell people are numb following the shooting. They come in to our stores because they’re looking for a sense of normalcy,” said barista Dylan. “We often talk about the ‘third place’ that Starbucks has become for our customers. It’s not home, it’s not work, it’s the other place you feel comfortable, and in times like this we’re glad to be there for people.”

Chad Romines, assistant store manager of a North Charleston Starbucks, said though the community is grieving it is also calm. “This is a big small town, and people have a lot of concern and love for one another. We are united.”

Evidence of the calm, respectful and even forgiving presence in Charleston was evident Friday outside Emanuel AME Church. Hundreds of people filed by, many added flower bouquets and notes in front of the building with a tall spire that reaches toward the sky. Some notes read: “I love you grandma” and “To the killer, we have mercy on your soul.”

On the sidewalk, a group of women dressed in purple began to sing: “Ain’t gonna let nobody turn us around. I’m gonna keep on a-walkin’, keep on talkin’, marchin’ up to freedom land. Their voices built on a second verse as they sang: “Ain’t gonna let no violence turn us around.” And finally, there was applause as they sang a third verse: “Ain’t gonna let racism turn us around…”

After speaking about race with partners for about an hour-and-a-half, as he’s done in a dozen other Partner Open Forums across the country, Schultz concluded, “I’m deeply sorry on behalf of our entire company for all that you are going through. Living in this beautiful, historic city it’s tragic this could happen. Please take care of one another, and know that together, we will not be bystanders.”

For more information on this news release, contact the Starbucks Newsroom.

 

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Starbucks chairman and ceo Howard Schultz visits historic Charleston church and pledges support for victims' families

Starbucks chairman and ceo Howard Schultz visits historic Charleston church and pledges support for victims’ families

Starbucks Coffee Company announces partnership with Spotify®

  • Partnership Connects Starbucks 7,000 U.S. Company-Owned Stores, 10M-Member My Starbucks Rewards Loyalty Program and Spotify’s 60M Users to Create First-of-Its-Kind Music Ecosystem
  • MSR Members and Spotify Users to Earn “Stars as Currency” for Subscribing to Spotify Premium
  • Popular Starbucks Music Made Available for Everyone on Spotify

SEATTLE, 2015-5-19 — /EPR Retail News/ — Starbucks Coffee Company (Nasdaq: SBUX) today announced that it has entered into a letter of intent with leading music streaming service, Spotify®, to establish a multi-year relationship that will link its 7,000 company-operated stores in the U.S. and 10 Million My Starbucks Rewards® loyalty members with Spotify’s more than 60 Million global users to offer a first-of-its-kind music ecosystem.  This interconnectivity will allow Starbucks MSR members unique access to Starbucks music on Spotify, the ability to influence in-store playlists as well as opportunities for Starbucks MSR members to earn “Stars as Currency.”

“For over 40 years, music has played a vital role in Starbucks Third Place experience – inspiring our partners and customers in unexpected ways that have helped to shape the global pop culture.  And we are delighted and honored to bring Spotify directly to our customers,” said Howard Schultz, chairman and ceo of Starbucks. “Throughout its history, Starbucks has worked closely with the music industry, offering a variety of artists a platform for their work. By connecting Spotify’s world-class streaming platform into our world-class store and digital ecosystem, we are reinventing the way our millions of global customers discover music.”

Through a phased rollout later this fall in Starbucks® U.S. company-owned locations, followed shortly thereafter in Canada and the United Kingdom, the agreement specifies that Starbucks and Spotify will collaborate on a next generation music ecosystem. As part of the agreement, Spotify Premium will be promoted in these stores.

Coming first, Starbucks 150,000 U.S.-based partners (employees) will receive a Spotify Premium subscription, followed shortly thereafter by partners in Canada and the U.K. This fall, Starbucks partners can help shape the in-store music programming using tools provided by Spotify. These partner-influenced playlists will then be accessible on Spotify via the Starbucks Mobile App so that customers can stream music anywhere, anytime from their mobile device.

In addition, Spotify users will enjoy opportunities to obtain “Stars as Currency” for My Starbucks Rewards loyalty program. This will represent the first time that Starbucks loyalty program stars can be accessed by a third party for the benefit of Starbucks MSR members and Spotify users. Spotify will also include a dedicated section on Spotify featuring new playlists from Starbucks and its most popular music from the past 20 years, available to all Spotify users.

“Starbucks has a rich music heritage and customers who are passionate music fans which makes us incredibly proud to be their music partner,” said Daniel Ek, CEO of Spotify. “Spotify has powered more than 25 Billion hours of listening around the world so far, and we’re looking forward to creating unique in-store music experiences while also making more than 20 years of popular Starbucks music available to both Starbucks customers and Spotify’s 60 Million global music fans.”

“We plan on building one of the most robust digital ecosystems of any retailer in the world.  Given the evolution of the music industry and the proliferation of streaming technology, it was natural that we would partner with Spotify in offering our customers a new way to engage with their favorite music,” added Kevin Johnson, president and coo of Starbucks.  “Starbucks ability to innovate with partners such as Spotify, creating new ways and platforms to engage with our customers, will afford us unprecedented interconnectivity across all of our capabilities, and provide new access points for Spotify as they continue to grow globally.”

For more than four decades, Starbucks has built a differentiated Third Place experience with music at the heart of its coffeehouse culture. In 1994, a dedicated entertainment team began selecting original CDs spanning a diversity of musical genres and geographies. This program has spotlighted the extraordinary careers of legendary artists such as the late John Lennon, Aretha Franklin and Bonnie Raitt, among many others. Bob Dylan, Yo-Yo Ma, the Rolling Stones and Ray Charles are among the legends who identified their favorite recordings for Starbucks Artist Choice series.  Starbucks seasonal CDs have celebrated moments ranging from Valentine’s Day to summer road trips to holiday festivities.  Starbucks has also become a champion of emerging artists such as John Legend, Madeleine Peyroux and Fleet Foxes, introducing customers to these musicians at an early point in their careers.

Download b-roll and images here

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. 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 and through the Starbucks Newsroom.

About Spotify
Spotify is an award-winning digital music service that gives you on-demand access to over 30 million tracks.  Our dream is to make all the world’s music available instantly to everyone, wherever and whenever you want it.  Spotify makes it easier than ever to discover, manage and share music with your friends, while making sure that artists get a fair deal. Spotify is now available in 58 markets globally with more than 60 million active users, and over 15 million paying subscribers. Since its launch in Sweden in 2008, Spotify has driven more than US$2bn to rights holders. Spotify is now the second biggest source of digital music revenue for labels in Europe, and the biggest and most successful music streaming service of its kind globally. For more information on Spotify please visit www.spotify.com.

For more information on this news release, contact us.

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Starbucks Coffee Company announces partnership with Spotify®

Starbucks Coffee Company announces partnership with Spotify®

Starbucks Corporation reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 29, 2015

  • Comp Store Sales Rise 7% Globally; 7% in the Americas and 12% in CAP; Global Traffic Up 3%
  • Net Revenues Rise 18% to a Q2 Record $4.6 Billion
  • GAAP Operating Income Up 21% to a Q2 Record $778 Million; Non-GAAP Operating Income Up 23% to $789 Million
  • Channel Development Revenues Up 16% and Operating Income Up 23%
  • Earnings Per Share Jump 18% to a Split-Adjusted Q2 Record $0.33 Per Share

SEATTLE, 2015-4-24 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today reported financial results for its 13-week fiscal second quarter and 26-week fiscal year to date ended March 29, 2015. All per-share data has been adjusted for the stock split announced on March 18, 2015 and effected on April 9, 2015. Q2 FY15 GAAP results include Starbucks Japan acquisition-related items; non-GAAP results exclude these items. Please refer to the reconciliation of GAAP measures to non-GAAP measures at the end of this release.

Q2 Fiscal 2015 Highlights:

• Global comparable store sales increased 7%, with a 3% increase in traffic

  •  Americas comp sales increased 7%, with a 2% increase in traffic
  •  CAP comp sales increased 12%, driven by a 10% increase in traffic
  •  EMEA comp sales increased 2%, driven by a 2% increase in traffic

• Consolidated net revenues increased 18% to $4.6 billion

• Channel Development revenues grew 16% to $428.0 million

• Consolidated operating income of $777.5 million, up 21% over Q2 of FY14

Non-GAAP operating income of $789.4 million, up 23% over Q2 of FY14

• Consolidated operating margin of 17.0% increased 40 basis points over Q2 of FY14

Non-GAAP operating margin of 17.3% increased 70 basis points over Q2 of FY14

• GAAP and non-GAAP earnings per share of $0.33, up 18% over Q2 of FY14

• The company opened 210 net new stores in Q2, including its 5,000th store in China/Asia Pacific, bringing total stores worldwide to 22,088

• Year over year comp store transactions increased over 10 million in the U.S., over 14 million globally

• The company added a record 1.3 million new My Starbucks Rewards members in Q2 – bringing total active membership to 10.3 million – and realized a Q2 record $1.1 billion in Starbucks Card loads

View detailed financial data here

“Starbucks record financial and operating performance in Q2 was driven by our people all around the world yet woven together by one common thread – industry leading partner (employee) facing and customer facing innovation,” said Howard Schultz, Starbucks chairman and ceo.  “Innovation is the force that will continue to drive our business and enable us to expand and increase revenues and profits – always through the lens of humanity – long into the future.”

“Starbucks Q2 represented another quarter of strong revenue growth and record operating and financial performance all around the world, and despite significant foreign exchange headwinds” said Scott Maw, Starbucks cfo. “As we enter the second half of 2015 – and look to the future – we are ideally positioned to continue benefiting from the investments we are making in our people, in innovation and in our stores – and to continue delivering world class returns to our shareholders.”

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 21,000 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

For more information on this news release, contact us.

Atlanta: Personal stories discussed at Starbucks 10th forum about racial inequality in America

In Starbucks 10th forum to discuss racial inequality in America, dozens of partners (employees) shared their personal stories and expressed gratitude for the company’s willingness to hold conversations that foster better empathy and understanding of one another. 

ATLANTA, 2015-4-22 — /EPR Retail News/ — An elderly white couple, who regularly visited a Colorado Starbucks store over the past few years, refused to be served by black baristas. They were raised during a time period in America when people of different races were segregated.

“What I love about our company is that we have the freedom to go beyond our counter, and step to the other side and sit down and have coffee with the white couple that did not accept me at first,” said a Starbucks partner (employee), who talked about breaking down stereotypes in a forum with her peers in Atlanta.

After sharing her upbringing with the couple and having regular conversations with them, she witnessed a significant change in their behavior. “Now they come in just to see me and bring me birthday cards,” she said.

Her story is one of the hundreds that have been shared across the U.S. with Starbucks partners in meetings called Partner Open Forums – employee gatherings to discuss topics relevant to the company’s business. Starbucks chairman and ceo Howard Schultz initiated the first Partner Open Forum discussing racial tension in America on December 10, 2014. He has led similar conversations in Oakland, St. Louis, New York, Los Angeles, Chicago, Houston, Milwaukee, and most recently in Atlanta to discuss what he calls the “tragic injustice” of racial inequality.

“This issue, above all else, is the social challenge of America,” Schultz said. “When we are witnessing something that we know is wrong with the country – wrong with humanity – we can do something about it.”

For Schultz, the issue is personal.

“I grew up in the projects in federally subsidized housing. I knew what it was like then, and I know what it’s like now to feel the shame and vulnerability and the scars of a poor kid and what it was like to look over the train tracks and see others who have more and realize that for whatever reason our station in life was not like theirs,” Schultz told partners.

He described how his life changed, “through the grace of God” despite odds that were “beyond comprehension,” because he believed in the American dream. The American dream, he said, has to be available for everyone.

“I promise you we are going to do everything we can as a company to continue the conversation, and to fight for the people whose voices are not being heard,” said Schultz.

In Atlanta, dozens of partners shared personal experiences. Many partners tearfully talked about beliefs they were raised with and are trying to change. They also expressed gratitude for Starbucks willingness to hold conversations that foster better empathy and understanding of one another.

“From the day that I started to this very day, I have one word that resonates through me and it is ‘home,'” said one partner. “I take pride in the fact that I work for a company who makes such strides in society. It knocks on the door that no one wants to knock on; touches the topic that no one wants to speak on.”

Starbucks will hold several additional Partner Open Forums in cities across the U.S. in the months ahead.

For more information on this news release, contact us.

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Atlanta: Personal stories discussed at Starbucks 10th forum about racial inequality in America

Atlanta: Personal stories discussed at Starbucks 10th forum about racial inequality in America

Starbucks and Arizona State University expand Starbucks College Achievement Plan with 100% tuition coverage for every eligible U.S. Starbucks partner (employee)

  • The expanded Starbucks College Achievement Plan will be offered to more than 140,000 full-time and part-time partners (employees) and will also provide a remarkable additional benefit to the 10,000 Opportunity Youth Starbucks has committed to hire
  • Full tuition coverage is now available for all four years of college with access to 49 online degree programs, with no commitment to stay with Starbucks post-graduation
  • Nearly 2,000 partners successfully enrolled to date, Starbucks commits to at least 25,000 graduates by 2025.  Over ten years, Starbucks estimated investment could reach up to $250 million or more

SEATTLE and TEMPE, ARIZ., 2015-4-7 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) and Arizona State University (ASU) today announced that Starbucks College Achievement Plan, first introduced in June 2014, will now offer 100 percent tuition coverage for every eligible U.S. Starbucks partner (employee). As part of its commitment to redefine the role and responsibility of a public company, Starbucks developed this program in partnership with ASU to create additional pathways to opportunity for its partners. Full tuition coverage was previously available to juniors and seniors, but now all eligible part-time or full-time partners can apply for and complete all four years of a bachelor’s degree through ASU’s top-ranked online degree program. In addition to partners receiving full tuition coverage, the company is offering faster tuition reimbursement – now at the end of each semester.

“Everyone deserves a chance at the American dream,” said Howard Schultz, chairman and ceo of Starbucks. “The unfortunate reality is that too many Americans can no longer afford a college degree, particularly disadvantaged young people, and others are saddled with burdensome education debt. By giving our partners access to four years of full tuition coverage, we will provide them a critical tool for lifelong opportunity. We’re stronger as a nation when everyone is afforded a pathway to success.”

Nearly 2,000 Starbucks partners have already enrolled in the program, and this significant expansion will offer a top-notch education to all full-time and part-time partners, with the opportunity to choose from 49 undergraduate degree programs through ASU Online. The company will invest up to $250 million or more to help at least 25,000 partners graduate by 2025.

Over the next three years, Starbucks has also committed to hiring 10,000 “Opportunity Youth,” a population of nearly six million disconnected youth between the ages of 16 and 24 who are not working or in school. With the right skills and training, Starbucks believes Opportunity Youth represent a huge, untapped talent pool for American businesses, and through employment and access to higher education, hopes to help create a sustainable future for these young Americans.

“The College Achievement Plan has been a powerful demonstration of what is possible when an enlightened and innovative corporation joins forces with a forward-thinking research university,” said ASU President Michael Crow. “This program is a clear expression of Starbucks commitment to its partners and ASU’s continuing mission to provide access to higher education to all qualified students.”

United States Secretary of Education, Arne Duncan, looks to this innovative model from Starbucks and ASU as an example for other industries and businesses. “Howard Schultz and Arizona State University President Michael Crow continue to do incredible work together,” said Secretary Duncan. “Today’s announcement from Starbucks and ASU is another win for students.  Partnerships like this one show how innovative strategies can expand access to college for thousands of students.  I hope more institutions and companies will take their lead to collaborate on ways we can all do more to make higher education more attainable and affordable.”

The value of higher education

There is a clear and demonstrated value of having a college degree, both the opportunity it affords and the measureable impact on earning potential throughout a lifetime.

The disparity between what U.S. college and high school graduates earn has more than doubled in the past 30 years (1). A typical bachelor’s degree recipient can expect to earn 66 percent more (compared with a high-school graduate) over a 40-year career (2).

The benefits are not limited to wages alone. On virtually every measure of economic well-being and career attainment—from personal earnings to job satisfaction to the percentage employed full time—young college graduates are outperforming their peers with less education (3).  And, people with a college degree tend to be healthier, and they exercise more (4).

Those with college educations are even shown to live longer than their peers. Between 1990 and 2008, the life expectancy gap between the most and least educated Americans grew from 13 to 14 years among males and from 8 to 10 years among females. This gap has been widening since the 1960s. At age 25, U.S. adults with a college degree can expect to live nine years longer than those with only a high school diploma (5).

A college education promotes civic and community involvement. An individual with a bachelor’s degree is twice as likely to volunteer as a high school graduate (6), and adults with a higher level of education are twice as likely to vote as those with lower education levels.

College education is crucial to getting a middle-class job – millennials with only a high school degree are more than three times as likely to be unemployed as those with a college degree (7).

The fastest-growing jobs in America all require a college degree. By 2018, 63 percent of all jobs in the economy will require postsecondary education and training beyond high school (8).

As an independent, private foundation, Lumina Foundation is committed to increasing the proportion of Americans with post-secondary credentials, and applauds this innovative program from Starbucks and ASU. “The value of a college degree only continues to increase. But so do the costs of achieving that degree,” said Lumina Foundation President and CEO Jamie Merisotis. “Starbucks is not only recognizing the value of higher education, but is actively addressing the disparity in opportunity to achieve a college degree. By investing directly in their partners, they are also investing in the long-term success of their company and the nation.”

In addition to benefitting the individual, educated and employed individuals have a positive impact on the national economy. Persistent high unemployment among young people adds up to $25 billion a year in uncollected taxes. One unemployed 18-24-year-old costs federal and state governments more than $4,100 a year in forgone tax revenue and benefits received (9). Educating America’s young people and giving them the best opportunity for a sustainable future and continued employment is a benefit to our economy and society.

The benefit for Starbucks partners

Through this innovative collaboration, all benefits-eligible partners in the U.S., including Teavana®, La Boulange®, and Evolution Fresh™ partners, who do not already have a college degree, may choose from 49 undergraduate degree programs taught by ASU’s award-winning faculty such as electrical engineering, education, business and retail management. Partners will have no commitment to remain at the company past graduation. This is in addition to the full comprehensive package of benefits that Starbucks offers to its partners – including healthcare coverage, company stock for eligible partners and 401(k) matching.  Starbucks is one of the only retailers to offer a stock program that includes part-time retail hourly partners.

ASU’s online degree programs offer the highest quality and most flexibility, ensuring the best chances for success in achieving a degree. Each course is fully designed to make the most of online learning, and ASU’s highly-engaged faculty are retrained for effective online teaching. ASU is a leader in employing innovative educational technology to deliver tailored academic support. They also invest in the student support services that are critical to reducing drop-out rates, and are ranked first in student services by US News & World Report. The diplomas ASU awards to online students are identical to their on-campus degrees, and their session-to-session student retention rates and graduation rates are extremely strong.

“I know that there is an entire company standing behind me saying ‘You can do this.’ And that is an incredible feeling,” said Markelle Cullom, a three-year Starbucks partner enrolled in ASU Online through the College Achievement Plan. “For me, working at Starbucks is the opportunity for a better future.”

Additional details on this announcement, as well as downloadable photo and video assets – including stories from partners currently enrolled in the College Achievement Plan – are all available on the Starbucks Newsroom http://news.starbucks.com/collegeplan.

About Starbucks
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. 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 http://news.starbucks.com.

About Arizona State University
Arizona State University is one of the nation’s leading public research universities and is ranked among the top 100 universities in the world. Known for innovation and entrepreneurism, ASU has pioneered the model for a New American University with a focus on accessibility and quality education, training students to learn for a lifetime. According to its mission, ASU “will be measured not by who we exclude, but rather by who we include and how they succeed; pursuing research and discovery that benefits the public good; assuming major responsibility for the economic, social, and cultural vitality and health and well-being of the community.”

(1) David H. Autor, Associate Department Head, MIT Department of Economics and author

(2) U.S. Department of Labor

(3) Pew Research Center

(4) The College Board

(5) Center on Society and Health 

(6) Bureau of Labor Statistics, (2015), Volunteering in the United States, 2014

(7) Baum, S., Jennifer, M., Payea, K., (2013); Bureau of Labor Statistics, Current population, Pew Research Center

(8) Carnevale, Smith and Strohl, “Help Wanted” at 13. full article

(9) In This Together: The Hidden Cost of Young Adult Unemployment (January 2014)

For more information on this news release, contact us.

 

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Starbucks and Arizona State University expand Starbucks College Achievement Plan with 100% tuition coverage for every eligible U.S. Starbucks partner (employee)
Starbucks and Arizona State University expand Starbucks College Achievement Plan with 100% tuition coverage for every eligible U.S. Starbucks partner (employee)

Starbucks marks 20 years since Frappuccino was introduced

SEATTLE, 2015-3-30 — /EPR Retail News/ — It’s hard to imagine summer at Starbucks without thinking of a cold Starbucks Frappuccino® blended beverage and the green straw. Take a trip back two decades to the birth of the iconic summer beverage.

In 1993, Starbucks had just a handful of stores in Los Angeles and fewer than 300 across the U.S. and Canada, mostly in concentrated in northern cities. Dina Campion, a 20-year partner (employee) who is now part of Starbucks Digital team, managed the district of Southern California’s 10 stores.

“It was the summer of 1993, and Los Angeles is very hot in the summer,” Campion said. “We noticed there were some smaller coffee shops that did some sort of blended coffee beverage. A couple of store managers and I felt there was a huge opportunity for Starbucks.”

Campion contacted one of her former California store managers, Dan Moore, who had recently moved up to Seattle to work on the operations team at Starbucks headquarters. They got the go-ahead to make their case with a test at a single store in Los Angeles’ San Fernando Valley, and Moore got a blender shipped down to the Sherman Oaks store.

“A group of us from Seattle went down to California, and we quickly realized it was something we needed to pursue,” Moore said.  Later, the test moved to the busy store near the Third Street Promenade in Santa Monica, where they could get quick feedback from an ever-changing mix of customers.

“The Santa Monica manager and her assistant really started getting into it,” Campion said. “Concurrently, Seattle got involved and put some R&D skills behind it.”

By the summer of 1994, Campion’s entire district was serving blended coffee beverages to enthusiastic customers looking for refreshment. Meanwhile Starbucks acquired The Coffee Connection in Boston, along with one of their products called “frappuccino,” a cold, slushy drink made using a soft-serve machine. Starbucks applied the name to its new blended beverage.

Starbucks decided to quickly ramp up a company-wide launch for the following summer. Moore, who now leads marketing and category for Starbucks licensed stores, was on the team tasked with rolling out the blended beverage to the company’s stores.

“We had less than five months to execute our first major new product launch,” Moore said. “I remember sitting on the floor over the weekends with store design and blueprints for all of our more than 500 stores, mapping out blended stations for each one. Then I flew out to all 23 markets and did training in every city.”

The Birth of an Icon
In the summer of 1995, Starbucks brought Frappuccino across all of its stores in the United States and Canada. The only two flavors were Coffee and Mocha, made from ice double-strength brewed Italian Roast coffee brewed in stores. There was not even whipped cream.

“The first week of launch we were tracking sales, and it was something like 200,000 drinks the first week – when we were hoping for 100,000,” Moore said. “The next week it was 400,000 and the next it was 800,000. We had figured it would do well in Southern California – but it sold just as well in Chicago, Vancouver B.C. and Boston. It was huge.”

Frappuccino changed the trajectory of the company by bringing in new customers who were not normally coffee drinkers, and filling its stores in afternoons and during warm weather when coffee business was typically slow. Frappuccino accounted for 11 percent of its summer sales, and helped push Starbucks stock to an all-time high.

“When you think about it, 20 years ago, the business, Starbucks hadn’t launched into a whole host of warm weather markets. We were reliant on the holiday season,” Campion said. “With Frappuccino, we were able to level out the dips in store traffic in the summer.”

Evolution of Frappuccino
After the resounding success of Frappuccino blended beverages, Starbucks chairman and chief executive officer Howard Schultz suggested the idea of a bottled Frappuccino in a meeting with Pepsi executives. By summer of 1996, Starbucks® bottled Frappuccino® chilled coffee drinks were arriving in grocery stores.

“We were so confident of our product that we didn’t even test-market it,” said Schultz in his book, Pour Your Heart Into It. “Pepsi ramped up production as quickly as possible, but even then we could supply only West Coast supermarkets for the summer of 1996. We couldn’t make it fast enough.”

Starbucks continued to innovate with new flavors to meet growing demand. In 1999, Starbucks introduced Caramel Frappuccino® blended beverage with whipped cream and caramel drizzle – served with a green straw and domed lid for the first time.

“At the time, domed lids were radical thinking, so was the idea of adding whipped cream,” Campion said. “But for our customers it represented a momentary break – an escape in their day.”

In 2002, Starbucks launched its first Frappuccino blended beverage without coffee or tea, called Frappuccino® Blended Crème beverage, followed by Frappuccino® Light blended beverage in 2004. By 2008, Frappuccino had a digital presence with its own website, and later joined social media on Facebook, Twitter and Instagram. In 2010, Starbucks launched the However-You-Want-It Frappuccino blended beverage to allow customers to customize their options for milk or soy, coffee type, syrups and toppings.

Celebrating 20 Years
Today, Starbucks serves Frappuccino blended beverages in all of its 66 countries and offers more than 36,000 different drink combinations. Around the world there are unique Frappuccino flavors that reflect the diverse palates of global customers, such as Coffee Jelly Frappuccino and Red Bean Green Tea Frappuccino in Asia, Algarrobina Frappuccino with syrup from the Black Carob tree in Peru and the chocolate Brigadeiro Frappuccino in Brazil.

In his book, Schultz underscored the impact Frappuccino has made in Starbucks history. “Its story epitomizes the enterprising spirit we still have at Starbucks. It’s experimental. It’s adventurous. It fires people up and engages their imagination.”

Birthday Cake Frappuccino
To commemorate Frappuccino’s 20th anniversary, Starbucks is offering a limited-time Birthday Cake Frappuccino® blended beverage – a vanilla bean and hazelnut, topped with raspberry-infused whipped cream – at Starbucks stores in the U.S. and Canada from March 26-30.

Fun Facts about Frappuccino

  • Top 5 flavors in the United States: Caramel, Mocha, Vanilla Bean, Java Chip, Double Chocolatey Chip
  • U.S. social media stats: 10.9 million fans on Facebook, 67,000 followers on Twitter, 219,000 followers on Instagram.
  • Starbucks store #8944 in Moreno Valley, California sells more Frappuccino blended beverages than any other store in the United States and Canada.
  • Saturday is the busiest day of the week for Frappuccino blended beverage sales.
  • The record for the most Frappuccino blended beverages sold on a single day in the United States and Canada occurred on May 10, 2014.
  • Japan was the first country outside of the United States and Canada to offer the handcrafted beverage in 1996.

For more information on this news release, contact the Starbucks Newsroom.

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Starbucks marks 20 years since Frappuccino was introduced

Starbucks marks 20 years since Frappuccino was introduced