Starbucks to assume 100% ownership of 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces

Starbucks to assume 100% ownership of 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces

 

  • Company announces agreements to acquire the remaining 50% of its East China JV and divest its 50% interest in its Taiwan JV; both transactions undertaken with long-term JV partners President Chain Store Corporation and Uni-President Enterprises Corporation
  • Company Reaffirms Its Commitment to Operating 5,000 Stores in Mainland China by 2021

SEATTLE, 2017-Jul-31 — /EPR Retail News/ — Starbucks Corporation (Nasdaq: SBUX) today ( July 27, 2017) announced entry into a definitive agreement to acquire the remaining 50% share of its East China (“East China JV”) business from long-term joint venture partners, Uni-President Enterprises Corporation (“UPEC”) and President Chain Store Corporation (“PCSC”) for approximately $1.3 billion in cash consideration in the largest single acquisition in the company’s history. Starbucks will assume 100% ownership of approximately 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces, building on the company’s ongoing investments in China, its fastest-growing market outside of the United States in terms of store count.

Concurrently, UPEC and PCSC will acquire Starbucks 50% interest in President Starbucks Coffee Taiwan Limited (“Taiwan JV”) and assume 100% ownership of Starbucks operations in Taiwan for approximately $175 million. Founded in 1997, the Taiwan JV currently operates approximately 410 Starbucks stores in Taiwan.

“Unifying the Starbucks business under a full company-operated structure in China, reinforces our commitment to the market and is a firm demonstration of our confidence in the current local leadership team as we aim to grow from 2,800 to more than 5,000 stores by 2021,” said Kevin Johnson, president and ceo, Starbucks Coffee Company.

“Similar to our decision in 2011 to fully license our Hong Kong and Macau market operations, we are pleased to transition our business in the Taiwan market to our long-time partners Uni-President Enterprises Corporation and President Chain Store Corporation, both highly-recognized local operators, as we continue to grow in Taiwan. This is a critical next-step as we advance our multifaceted China growth strategy for long-term profitable growth in Asia.”

East China is a significant and strategic region for Starbucks in China, with Shanghai containing nearly 600 stores, the largest number of stores globally of any city where Starbucks has a presence. In December 2017, Shanghai will also be the first city outside of the United States to welcome the opening of the ultra-premium Starbucks ReserveTM Roastery.

“This is the beginning of yet another exciting new chapter for Starbucks in China. Full ownership will give us the opportunity to fully leverage our robust business infrastructure to deliver an elevated coffee, in-store third place experience and digital innovation to our customers, and further strengthen the career development opportunities for our people,” said Belinda Wong, ceo, Starbucks China. “Our East China partners’ relentless pursuit of operational excellence and leadership has provided us a solid foundation to maximize the unprecedented growth opportunities ahead and we look forward to extending our world-class network of unique programs to support their personal and professional dreams.”

“We’ve had a strong friendship with Starbucks for nearly 20 years, starting with the opening of the first store in Taiwan and then further extending our partnership with the opening of the first store in East China” said Alex Lo, Chairman, Uni-President Enterprises Corporation. “We are confident that our new ownership model and continued collaboration with Starbucks will enable us to be even more focused on delivering an elevated Starbucks Experience to our customers in the Taiwan market.”

Starbucks will discuss the financial impact of these transactions during its third quarter fiscal year 2017 earnings conference call at 2:00 p.m. PT today, Thursday, July 27.  Both transactions are expected to close by early calendar year 2018 and are subject to customary closing conditions, including receipt of required regulatory approvals.

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 Uni-President Enterprises Corporation

Uni-President Enterprises Corp. was established in 1967 and listed in 1987. We are not only the biggest food and beverage manufacturing company in Taiwan but also have business in China and Southeast Asia. Besides, we also expand our business scope to retail and logistic field so that we could provide the safest and the best experience to consumers by building vertical integration. To know more details about our company, please visit us online at www.uni-president.com.tw.

About President Chain Store Corporation

Established in 1987 and listed on Taiwan Stock Exchange in 1997, President Chain Store Corp. (PCSC) is the largest convenience store operator in Taiwan, with over 5,100 7-ELEVEN stores at the end of 2016. PCSC has diversified into other retail businesses, such as restaurant, drugstore, department store, supermarket and online shopping. Our business operation areas include Taiwan, Mainland China, the Philippines and Japan. Uni-president, the largest food and beverage company in Taiwan, is PCSC’s parent company with 45.4% ownership.

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 on information available to Starbucks as of the date hereof, and Starbucks actual results or performance could differ materially from those stated or implied, due to risks and uncertainties associated with its business. These risks and uncertainties include, but are not limited to, the failure of the parties to consummate the transactions due to commercial, regulatory or other reasons, as well as general economic and industry factors such as coffee, dairy and other raw materials pricing and availability, successful execution of internal performance and expansion plans, fluctuations in U.S., Chinese and other international economies and currencies, the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the fiscal year ended October 2, 2016. The Company assumes no obligation to update these forward-looking statements.

MEDIA CONTACT:

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

SOURCE: Starbucks Corporation

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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

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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 Corporation announces the appointment of Hans Melotte as executive vice president, Global Supply Chain

SEATTLE, 2016-Jun-20 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced the appointment of Hans Melotte as executive vice president, Global Supply Chain, effective June 27.  In this role, Melotte will lead Starbucks Global Supply Chain organization, which helps power Starbucks operations in more than 70 countries worldwide. Most recently, Melotte served as Johnson & Johnson’s Chief Procurement Officer, where he oversaw the company’s global procurement team and led the transformation of the procurement function to becoming a best in class organization.

“Hans brings more than 25 years of experience from highly-respected consumer brands and the deep leadership and technical expertise necessary to take our game to the next level,” said Kevin Johnson, president and chief operating officer, Starbucks. “He will play a critical role in driving the supply chain agenda across the business and leading our ongoing efforts to create a scalable and agile function that enables growth for Starbucks around the world.  With his strong track-record and ambitious vision for the organization, Hans’ leadership will help accelerate the pace of innovation in our business processes and transform the way we support our retail stores and distribution channels in terms of both efficiency and effectiveness.”

Melotte will report to Johnson and serve as a member of Starbucks senior leadership team. He will be responsible for end-to-end supply chain operations globally spanning sourcing and supplier relationships, distribution, planning, commercialization, transportation and store delivery – ensuring the company’s supply chain road map supports the core business while at the same time enabling key strategic initiatives and the growth of Starbucks business around the globe.

“I’ve had the opportunity to lead a truly world-class procurement organization at Johnson & Johnson, and as I embark on this new chapter, I am honored to join Starbucks and help shape the future of its global supply chain operations,” said Melotte.

“As Starbucks business grows in the U.S. and around the world, my goal will be to ensure the company’s network of more than 16,000 suppliers is always available to Starbucks partners, both in supply chain and in stores, so we can enable more time for customer connection. The opportunity ahead is both vast and exciting, and I look forward to joining the great supply chain talent Starbucks has today and helping drive the company’s plans for growth and innovation.”

Melotte’s career spans nearly three decades of supply chain expertise and global business leadership. Most recently, he served as Johnson & Johnson’s Chief Procurement Officer, where he oversaw the procurement team across 60 countries. During his time with Johnson & Johnson he was recognized for his people leadership and held roles in multiple regions across the Consumer and Pharmaceutical businesses in procurement, supply chain, shared services and innovation. Prior to Johnson & Johnson, Melotte worked at Procter & Gamble and Coopers & Lybrand.

Originally from Belgium, Melotte received a Master’s Degree in business from the University of Louvain. In 2013, he was named as one of the “Top 10 Most Influential and Thought Leader CPO’s” in the U.S. In 2010, he was honored as the “Procurement Leader of the Year.” Melotte also serves as Chairman of the Board of Directors of the Institute of Supply Management (ISM), and is also a member of the Board of Directors of International Schools Services (ISS).

Melotte will be relocating to Seattle from New Jersey with his family. He will be based in the Starbucks Support Center beginning June 27.

Media contact:

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

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Starbucks Corporation announces the appointment of Hans Melotte as executive vice president, Global Supply Chain

Starbucks Corporation announces the appointment of Hans Melotte as executive vice president, Global Supply Chain

 

Source: Starbucks

Starbucks to transition processing of all non-mobile payments and U.S. retail card payment transactions to Chase Commerce Solutions

SEATTLE, 2015-10-23 — /EPR Retail News/ — Starbucks (NASDAQ: SBUX) has announced the selection of Chase Commerce Solutions, the global payment processing and merchant acquiring division of JPMorgan Chase & Co. (NYSE: JPM), to transition processing of all non-mobile payments and U.S. retail card payment transactions in company-operated stores in addition to partnering on the rollout of chip-enabled payment terminals.

“Our new relationship with Chase Commerce Solutions, combined with the sophisticated chip enabled technology we are deploying across our U.S. store portfolio, lays the foundation for a coming wave of innovation in our digital payment ecosystem,” said Kevin Johnson, president and chief operating officer, Starbucks. “These investments and innovations will both strengthen our payment platform and be increasingly accretive to our business over time.”

Starbucks has entered into the agreement with J.P. Morgan Chase & Co. to process payment transactions previously processed by Square, Inc.  Mobile transactions would continue to be serviced by First Data. Starbucks, with more than 12,000 stores in the U.S. representing over 47M transactions a week, will complement its long-term growth strategy with Commerce Solutions’ payment and data security solutions. Implementation of both services will begin immediately, with complete transition expected by Spring 2016.

This evolution continues to reinforce the company’s ongoing and long term investment in its digital ecosystem which just achieved significant milestones with the nationwide rollout – and international pilot of Mobile Order & Pay as well as the launch of its Green Apron Delivery service.

For more information on this news release, contact us.

Starbucks COO Kevin Johnson on organization moves ahead of FY16

SEATTLE, 2015-6-22 — /EPR Retail News/ — The following is a message to Starbucks partners from chief operating officer Kevin Johnson on organization moves ahead of FY16:

Partners,

Our business going into the summer continues to perform well and we are focused on many new and exciting activities including the rollout of Mobile Order and Pay, piloting new delivery services in Seattle and New York City, and enabling a new and exciting streaming music capability through our partnership with Spotify. Howard has commented there’s never been a better time to be a Starbucks partner and from my vantage point, I must agree. We are indeed executing well and we have bold aspirations for the years ahead. These aspirations will require us to continue to innovate in ways that increase our relevance with our customers and partners.

We recently completed our annual strategic planning process and the senior leadership team is now shifting to focus on creating our FY16 operating plan. As part of this process, we look at the priorities we have for the upcoming year, the goals we intend to achieve, and how we’ll allocate resources against those goals. I want to share some information about some leadership moves we are making to set the stage for FY16.

Elevating the Starbucks Roastery
The Starbucks Roastery and Reserve Tasting Room in Seattle has gained international attention and has elevated the coffee experience and the Starbucks Reserve brand to new levels.

A special thank you to Craig Russell, executive vice president Global Coffee, and the entire team of Starbucks partners for their passion and dedication in not only getting the Roastery off the ground, but quickly adjusting to the overwhelming response by our local community and visitors from near and far. Craig’s command of the global coffee space and his deep roots as an operator made him the perfect leader for the launch of this project.

As we look to the future, we plan to export the Starbucks Roastery experience to major cities around the world. I’m pleased to share that our chief creative officer and president of global innovation, Arthur Rubinfeld, will lead our efforts to expand the number of Starbucks Roasteries globally as well as end-to-end operational responsibility for those stores. Arthur’s history and world class experience in design and development will help us quickly and elegantly scale the incredible experience we’ve begun in Seattle. In addition, Arthur will leverage several of the design elements and our experience with the Roastery to lead our creative and development efforts for a new format of Starbucks Reserve Stores. He will work closely with the retail and operations teams on this new concept and once these new stores are opened, the operating teams in the field will be responsible for scaling and operating these stores as they do other Starbucks store formats in our global footprint.

Arthur will build the team with the foundational efforts established by Tiffany Broderson, vice president, operations of the Starbucks Reserve Roastery and Tasting Room and her strong Seattle-based team, who will all transition to Arthur. Arthur will continue to report directly to Howard and join as an integral member of my operations leadership team to ensure symmetry and alignment with our overall retail and operations leadership.

Thank you Craig and congratulations Arthur. We have another historic opportunity to create differentiation and premium quality in the coffee experience and you both have and will contribute to our continued success.

The Future of Tea and Teavana
We remain committed to expanding Teavana offerings within Starbucks, in our U.S. Teavana mall stores and internationally. Tea is a $125 billion market and the second most consumed beverage in the world, next to water. Tea represents a very compelling strategic opportunity for Starbucks around the world and we are well under way of executing on our plan to increase our tea business to $3 billion over the next five years. With the integration of Teavana into Starbucks retail stores in the U.S. and Canada now complete, a significant milestone under the leadership of Annie Young-Scrivner, we have up-leveled our in-store tea platform, offering our tea fans new beverages and loose-leaf teas of world-class quality.

Now that we have Teavana products in our U.S. Starbucks retail stores, we have decided to move the Teavana business to report into Sharon Rothstein, global chief marketing officer. Under Sharon’s leadership we plan to expand Teavana offerings within Starbucks stores globally, create global awareness of the Teavana brand and elevate the innovation and merchandising of Teavana in Starbucks retail stores. The second stage of our strategy will be the selective expansion of Teavana retail stores in key global markets. Sharon’s deep expertise in specialty retail and merchandising will be important experience for us as we move to the next chapter with Teavana.

Customer Loyalty
Effective September 1, Annie will transition to a new role reporting to Matt Ryan, chief strategy officer where she will lead our efforts to develop our customer loyalty strategy, My Starbucks Rewards, globally.   This includes how we align and implement customer loyalty programs in all company owned markets. Annie will focus on expanding to our key markets including China, UK and Japan while Aimee Johnson will remain focused on growth of the program in the U.S. and Canada.

Aimee’s North American responsibilities continue to grow, driving continued organic MSR program growth, evolving MSR program design, expanding 1:1 marketing, developing new personalization initiatives, and integrating stars as currency into the program proposition. Recognizing the growth in responsibilities and Aimee’s contribution to growing MSR we are pleased to announce her promotion to senior vice president, Loyalty.

I want to extend my gratitude to Annie on behalf of the company for her stewardship of Teavana over the past year. Annie will now report to Sharon until September 1 and they are working together to identify Annie’s successor and ensure a good handoff as we approach September.

Global Technology
Curt Garner and I have been discussing his career aspirations and after 18 years in technology at Starbucks, we decided that it was an appropriate time to explore Curt’s next opportunity into something that is new and exciting for him – either within or outside the company. Over the years, Curt has made many contributions to build the technology foundation that Starbucks has today. He began in technology when we had less than 2,000 stores and helped build an infrastructure that now supports a global business that is recognized as a leader in digital platform technology. I want to personally thank him for all that he has done for the company.

As we prepare for this transition, Curt will continue to lead the team reporting to me and we will work closely together to recruit his successor and ensure a smooth transition. We expect to have a new leader in place by the end of the calendar year.

Please join me in thanking these leaders for all they have done to put Starbucks in a position of strength as we prepare for FY16. On behalf of the Starbucks Senior Leadership Team, we look forward to sharing more updates in the coming weeks and months, and also look forward to a challenging but very strong Fiscal 16.

Proud to be your partner,

Kevin Johnson

chief operating officer

For more information on this news release, contact us.

Kevin Johnson named Starbucks president and COO with focus on Starbucks information technology, mobile and digital platforms

SEATTLE, 2015-3-2 — /EPR Retail News/ — Long before Kevin Johnson was named Starbucks president and chief operating officer, and a decade before being appointed to the company’s board of directors, he was a Starbucks customer.

“Like everyone else, I started walking into my local Starbucks for coffee and became a part of what millions of people now consider to be their daily ritual,” said Johnson. “What I noticed then, and what I continue to appreciate now, is the authentic and thoughtful ways partners (employees) create a great experience for customers and bring the brand to life.”

With partners and customers in mind, today Johnson begins his new role with Starbucks. In January, Starbucks announcedJohnson would join the company’s senior leadership team following Troy Alstead’s decision to take a sabbatical after 23-years with Starbucks.

As Starbucks president and coo, Johnson will manage all operational functions including the global businesses of Starbucks in the Americas, EMEA and China/Asia Pacific. He will also oversee Starbucks global supply chain which works with more than 21,000 stores in 66 countries worldwide. From coffee to cups to chairs and more, the global supply team manages more than 85,000 outbound deliveries per week to Starbucks retail stores, distribution channels and outlets.

Johnson will draw on his decades of experience in the tech industry to direct Starbucks information technology, and mobile and digital platforms.  He’s a longtime tech leader having served as CEO of Juniper Networks and as a Microsoft executive. At Microsoft, he led worldwide sales, marketing and services which gave him key insights in running a large customer-facing global operation. Johnson said he has a “great deal of passion for innovation and the role technology plays in improving lives.”

“The digital revolution has put mobile devices in the hands of consumers and cloud computing enables new types of services. The businesses that utilize technology to enhance their customers’ experiences are going to be the big winners in the years to come. I’d definitely put Starbucks in that category,” Johnson said.

He has helped guide Starbucks digital strategy since joining the company’s board of directors in 2009 – the same year the company introduced its My Starbucks Rewards loyalty program which now has more than nine million members. The most recent innovation for customers, the launch of Mobile Order & Pay, will expand and the company will debut mobile delivery via the Starbucks app later this year.

“The opportunity for me to be a part of Starbucks, which is clearly a leader in the digital space, is both very exciting and humbling,” he said.

Johnson’s commitment to digital innovation extends to nonprofit businesses. He was a founding board member of NPower, an organization that provides other nonprofits with access to technology and the skills needed to fulfill their social missions. That includes helping young adults and veterans through free tech and professional skills training. Johnson is also involved with Catalyst, a leading nonprofit that focuses on expanding opportunities for women in business. And he supports Youth Eastside Services, one of the largest providers of youth and family counseling assistance in the Seattle area.

Family is at the “center of my world,” said Johnson, who grew up with his brother and sister in a small town in New Mexico. Johnson’s father was a theoretical physicist; his mother a pediatric nurse.

“I hope that I’ve taken on the best of my parents’ characteristics – the analytical, logical thoughtful nature of my father and the compassionate and caring characteristics of my mother,” he added. Kevin and June Johnson have two sons, ages 27 and 30, and one grandchild.

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 the Starbucks Newsroom.

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Kevin Johnson appointed as president and chief operating officer Starbucks Corporation

Kevin Johnson named Starbucks president and COO with focus on Starbucks information technology, mobile and digital platforms

Starbucks Troy Alstead offers a few words of advice to Starbucks partners who are just beginning their careers

SEATTLE, 2015-2-23 — /EPR Retail News/ — The aroma from the first cup of coffee every morning takes Troy Alstead back to key moments in his life.

Growing up with his brothers in Puyallup, Washington where his parents always had coffee brewing in a percolator. Attending the University of Washington, where he’d walk to one of the first Starbucks stores to discover coffees of the world. Reading the Sunday newspaper over coffee in his kitchen, shortly after he got married, where he saw a job listing for a Starbucks financial analyst.

“I wasn’t looking to change jobs at the time, but the Starbucks logo caught my eye because I was a loyal customer,” Alstead recalled. “To me Starbucks was this incredible place I went for coffee. I didn’t imagine working there.”

He joined Starbucks early in 1992 when the company had about 100 stores and was privately owned. Alstead was on teams that guided Starbucks initial public offering and outlined the company’s expansion into global markets. He served as both the chief financial officer and the chief operating officer. Soon, he’ll begin a sabbatical from Starbucks which he said is “important for me and my family right now, but still not easy.”

Alstead reflects on 23 years with the company, discusses how he’ll spend his free time, and offers a few words of advice to Starbucks partners (employees) who are just beginning their careers.

“I’ve been wanting to invest more time in my family – with four kids at home and one of them ready to go off to college – and every time my wife and I talked about it, I’d think ‘not yet, not yet, not yet,’” he said. “The reason I know I can step away now is because the company is in extraordinary shape. Starbucks depth of leadership and financial performance are exceptional, and the strategy has never been clearer. All of this makes it possible for me to leave for a while. Not easy, but possible.”

Most of the projects Alstead worked on in his early Starbucks career could also be described as “not easy, but possible.”

Four years into his journey with Starbucks, Alstead was asked to join the team developing the company’s global business. With a life-long interest in international studies and an appreciation of other cultures, the assignment was a natural fit. At that point, in 1996, Starbucks had about 1,000 stores in the U.S. and Canada. It also had a lot of skeptics outside the company who doubted the company could succeed in overseas markets.

“We heard the same doubts when Starbucks expanded to California.  People thought coffee was a Seattle thing, or maybe for the northern cold belt of the country,” recalled Alstead. “Today, the runway for growth for Starbucks around the world is remarkable.”

Before the end of 1996, Starbucks had opened stores in Japan and Singapore. Starbucks is now in 66 countries and he said in many ways the company is “just getting started” outside North America. China is the fastest growing market for Starbucks which is opening, on average, one store every 18 hours there.

Alstead credits baristas who wear the green apron for the company’s growth saying the Starbucks Experience comes to life in their hands.

“While we have the most amazing coffee anywhere, it is brought to life by how they make the beverages and how they speak to the customers about it, and the environment they create in the stores. That is everything for us,” Alstead said. “We’ve known that since the beginning.”

His advice to Starbucks store partners just beginning their careers is to do what you love, value the people around you, and serve others. “If you can find a way to do that in any career field, you’ll find meaning through work.”

In the months ahead, Alstead will continue to serve others through several volunteer projects that are important to his family and community. He’ll also pursue non-profit work related to his passion for ocean preservation. And, he’ll ride his motorcycle and scuba dive more too. “I’m going to be busy,” he said with a smile, quickly adding that he’s going to continue starting every day with his favorite cup of Starbucks® Sumatra coffee, with an aroma that will now remind him of 23 “amazing” years with the company.

“I’d say Starbucks changed my life, but it’s bigger than that,” he said. “Starbucks created and shaped my life.”

Next week, the Starbucks Newsroom will feature the incoming president and chief operating officer, Kevin Johnson.

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

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Starbucks Troy Alstead offers a few words of advice to Starbucks partners who are just beginning their careers

Starbucks Troy Alstead offers a few words of advice to Starbucks partners who are just beginning their careers

Kevin Johnson appointed as president and chief operating officer Starbucks Corporation

Starbucks board member and former technology executive to join Starbucks management team and lead global operations

SEATTLE, 2015-1-23 — /EPR Retail News/ — Starbucks Corporation (NASDAQ: SBUX) today announced it has appointed Kevin Johnson as president and chief operating officer. Johnson has been a Starbucks board member since 2009, and will now take a central operating role effective March 1.

“As a member of our board of directors, Kevin has worked closely with me for the past six years as a sounding board and collaborator on many of the strategies we are now pursuing. Kevin’s deep management experience and technology background will help further propel Starbucks efforts in partner (employee) and customer-facing innovations as we accelerate our global growth agenda,” said Howard Schultz, Starbucks chairman, president and ceo. “I am honored that Kevin is joining Starbucks in this capacity, particularly at this important time for our company, and I am looking forward to working with him and our strongest management team in the company’s 44-year history.”

Johnson will report to Schultz and serve as a member of Starbucks senior leadership team, as well as continue on the Starbucks board of directors. He ceased membership on all Starbucks board committees prior to this appointment.

As president and chief operating officer, Johnson will lead the company’s global operating businesses across the Americas, EMEA (Europe Middle East and Africa), and China/Asia Pacific, as well as Starbucks supply chain, information technology, and mobile and digital platforms. Reporting to Johnson will be Cliff Burrows, group president, U.S., Americas and Teavana; John Culver, group president, China /Asia Pacific, Channel Development  and Emerging Brands; as well as other senior leaders responsible for Starbucks supply chain, mobile and digital, and information technology organizations.

Earlier this month, Starbucks announced that Starbucks chief operating officer and 23-year partner Troy Alstead will take a sabbatical beginning March 1 to spend more time with his family. Over the next month, Alstead will work to immerse Johnson into his levels of responsibility as they work together to ensure a smooth transition.

“I’ve had the pleasure of working closely with Howard, Troy and Starbucks senior leadership team for many years, and I am delighted to extend that relationship even deeper to work closely with our partners in operations, supply chain, technology and mobile and digital teams to drive our aggressive growth plans,” said Johnson. “Over the past six years I have gotten to know the company well and I look forward to extending my 33 years of operating experience to help propel Starbucks to the next decade of growth and innovation. I am honored and humbled to join Starbucks, a company that I love, during this important time.”

Johnson will bring broad leadership capacity to Starbucks. He served as chief executive officer of Juniper Networks, Inc., from September 2008 through December 2013. Prior to that, Johnson served as the president of the Platforms Division at Microsoft Corporation and was a member of Microsoft’s senior leadership team and held a number of senior executive positions over the course of his 16 years at Microsoft. Prior to joining Microsoft in 1992, he worked for International Business Machine Corp.’s systems integration and consulting business. In 2008, Johnson was appointed by President George W. Bush to the National Security Telecommunications Advisory Committee (NSTAC) where he served through the end of 2013.

Johnson resides in Seattle and will be based at the Starbucks Support Center beginning March 1.

Contacts:

Investor Relations
JoAnn DeGrande
206-318-7118
investorrelations@starbucks.com

Media

Jim Olson
206-318-7100
press@starbucks.com

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

For more information on this news release, contact us.

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Kevin Johnson appointed as president and chief operating officer Starbucks Corporation

Kevin Johnson appointed as president and chief operating officer Starbucks Corporation