Starbucks Spotlights Connection Between Record Performance, Shareholder Value and Company Values at Annual Meeting of Shareholders
In its 20th Year as a Public Company (PCMC.PK), Starbucks Announces:
- Addition of Fifth U.S. Manufacturing Facility
- Participation in Green Mountains Keurig Vue" Brewing System
- 11th Annual Global Responsibility Report
- New Initiatives to Help Communities Thrive
SEATTLE--(BUSINESS WIRE)-- Starbucks Coffee Company (NASDAQ: SBUX) today held its Annual Meeting of Shareholders in Seattle, where Howard Schultz, chairman, president and ceo attributed the companys success to its long-standing commitment to helping communities thrive wherever around the world it does business.
For any company operating today, profitability cannot be the sole measure of success, Schultz said. Delivering long-term shareholder value is essential. But todays increasingly complex world requires companies including Starbucks to hold ourselves to higher standards. Amidst continued worldwide economic uncertainty, Starbucks has demonstrated that it will continue to build shareholder value, but never before has that value been more closely aligned to our values. Simply put, the value of your company is driven by your companys values.
Starbucks Expands Manufacturing Capacity in Southeastern U.S.
The company announced it will invest nearly $180 million in expanding manufacturing capacity in the Southeastern U.S. by building a fifth U.S. plant in Augusta, Ga. and expanding an existing facility in Sandy Run, S.C. These investments are included in Starbucks Fiscal 2012 capital expenditure targets previously disclosed. The new Augusta plant will be Starbucks first company-owned and -operated facility in the world to produce soluble products, such as Starbucks VIA® Ready Brew and the ingredients for Frappuccino® and Starbucks® ready-to-drink (RTD) beverages. In addition to building the new soluble plant, Starbucks will add packaging capacity at its roasting plant in South Carolina.
Starbucks has long believed that there is a strong relationship between our success and the strength and vitality of the communities in which we do business, said Schultz. Augusta and Sandy Run are important communities for our company. Both have an abundance of skilled workers, a great quality of life, convenient access to transportation that is critical to our business and strong support from local and state leaders. Were proud to be part of these communities and to be creating American manufacturing jobs during such challenging economic times.
When the state-of-the-art soluble plant is completed, it is expected to create more than 140 new manufacturing jobs, in addition to hundreds of indirect jobs related to construction, shipping, and supply chain functions with local economic impact. The $172 million facility is expected to open in January 2014, with construction starting this spring. Designed to be a 110,000 to 160,000 sq. ft., LEED® certified building, the plant will be capable of producing up to 4,000 metric tons per year. It will prepare and package ingredients and finished products for most of the companys soluble-based beverages for all of North America and parts of Europe.
The Sandy Run roasting plant, which opened in 2009, will invest $7 million in a packaging line by the end of this year. This expansion will create an estimated six new jobs, adding to the more than 830 partners (employees) that Starbucks already employs at its four roasting plants in the U.S. In addition to Sandy Run, Starbucks also has roasting plants in Kent, Wash., York, Pa., and Carson Valley, Nev.
Helping Communities Thrive
Starbucks U.S. manufacturing expansion exemplifies the companys ongoing commitment to help accelerate job growth both within Starbucks and in the communities it serves. In Fiscal 2012, with the addition of nearly 300 net new stores (company owned and licensed) and the remodeling of 1,700 existing cafes, more than 5,000 direct and indirect net new jobs are being created in the U.S. this year.
To further address the jobs crisis in America, last November Starbucks and the Opportunity Finance Network teamed up to launch "Create Jobs for USA ," a national campaign designed to help jumpstart the economy with a focus on job creation in many of Americas most underserved communities. Through the Create Jobs for USA Fund, 100% of donations from Starbucks customers goes quickly to community development financial institutions (CDFIs) to provide necessary financing to community businesses committed to creating and sustaining jobs.
In the first three months of the Create Jobs for USA program, Starbucks and the Starbucks Foundation have made a difference in thousands of Americans lives by:
- Raising more than $7 million in donations, which in turn has translated into $50 million in financing for community businesses;
- Supporting nearly 280 loans across 31 states, with the goal of extending to all 50 states by the end of this year;
- Helping create and retain an estimated 2,300 American jobs; and
- Distributing more than half a million Indivisible wristbands, a visible demonstration of Americans helping Americans.
Create Jobs for USA was specifically designed to give Americans a simple, specific way to take action and be part of a solution to our national jobs emergency, said Schultz. Our initial progress tells us that we can continue to grow this public-private initiative and that the emotional appeal of Americans helping Americans resonates, especially when our fellow citizens know that their participation contributes to their own communities in sustainable ways. In the coming weeks we plan to introduce new corporate partners that will support the effort with equity donations, awareness campaigns, and consumer outreach.
In addition to donating at Starbucks company-owned stores across the U.S. or online at www.createjobsforusa.org, concerned citizens starting this week may now also support Create Jobs for USA by texting a donation to 80888JOBS.
Building on its strong track record of helping neighborhoods thrive wherever it does business, Starbucks also announced several other initiatives aimed at giving partners and customers the opportunity to be directly involved in giving back to their local communities.
This April, Starbucks will kick off its second annual Global Month of Service where partners, customers and community organizations will be mobilized to make a positive impact. Across the globe, Starbucks partners will lead community service projects focused on the individual needs of the neighborhoods where they live and work. Throughout the year, Starbucks partners and customers dedicate their time and energy to creating positive change in their neighborhoods, and during the Global Month of Service that commitment is amplified and celebrated. During Starbucks first Global Month of Service in 2011, nearly 60,000 volunteers participated from across 30 countries on four continents resulting in more than 155,000 hours of community service. The company invites people in the U.S. and Canada to sign up for projects in their area at community.starbucks.com.
The company also unveiled Community Card: Vote.Give.Grow., a program which enables any Starbucks customer with a registered Starbucks Card to help determine how the Starbucks Foundation distributes $4 million to 124 local non-profit organizations across the country. Each week throughout April, customers can cast a vote for one of four non-profit organizations in their own community. Votes will be tallied at the end of April and the $4 million from the Starbucks Foundation will be distributed based on the number of votes each organization receives. Every participating non-profit will receive a portion of the funding so that their programs can continue to help neighborhood residents young and old access services that help them gain education, housing and employment.
Community Card: Vote.Give.Grow., will support a combination of national and local non-profit organizations including Opportunity Finance Network and DonorsChoose.org. To vote, customers with a registered Starbucks Card can visit www.starbucks.com/VoteGiveGrow beginning Sunday, April 1.
In its effort to help communities thrive through ethical sourcing, environmental stewardship and community involvement, Starbucks also announced today the availability of its 11th annual Global Responsibility Report, outlining Fiscal 2011 performance. The 2011 report demonstrates significant strides toward the ambitious goals Starbucks set for itself in 2008. In a single year Starbucks more than doubled its community service to 442,000 hours served and more than tripled the availability of in-store recycling now in more than 1,000 stores in the U.S. and Canada. The interactive report is now available online at www.starbucks.com/GRreport.
Strong Execution of Blueprint for Profitable Growth
Fiscal 2011 was a record year for Starbucks on all levels and the company is continuing its quest to bring innovation and quality products to consumers as outlined in its Blueprint for Profitable Growth. As proof of its global leadership position in the nearly $8 billion global premium single cup coffee category, Starbucks earlier this month announced its own signature Verismo® system by Starbucks, the first at-home premium single cup machine that meets Starbucks commitment to taste and quality.
In addition to its signature Starbucks VIA® Ready Brew, Starbucks® K-Cup® packs offering, and now Verismo" by Starbucks platform, Starbucks president of Channel Development, Jeff Hansberry, announced today that Starbucks has expanded its strong partnership with Green Mountain Coffee Roasters (GMCR) to offer Starbucks® coffee and Tazo® tea for GMCRs Keurig® Vue" Brewer.
Earlier this week, the company launched its manifestation of the Evolution Fresh brand with its first retail location. This introduction is the initial step in Starbucks offering of a unique, super-premium juice experience and provides Starbucks a strong platform to reinvent the $3.4 billion super-premium cold-crafted juice category. Additionally, Starbucks unveiled its new Seattles Best Coffee concept store design on Monday outside of Chicago, offering customers a new way to experience the Seattles Best Coffee brand.
Today the company also announced plans to make a global entry into the energy category with Starbucks Refreshers" beverages making Starbucks the first to bring green coffee extract innovation to customers on a global scale. Starbucks Refreshers" beverages are a breakthrough innovation that deliver thirst-quenching refreshment from real fruit juice and a boost of natural energy from a new source, green coffee extract. By the end of April, customers will find the ready-to-drink lightly sparkling version of Starbucks Refreshers" beverages at more than 160,000 points of distribution where they buy groceries in the U.S. The company said it also plans to offer handcrafted Starbucks Refreshers" beverages to stores in the U.S. and select international markets this summer.
Starbucks leadership also discussed the tremendous opportunity for international growth not only in current markets but also in new and emerging countries such as India and Brazil.
The company committed to accelerated growth across China and Asia Pacific markets. John Culver, president, Starbucks China and Asia Pacific, confirmed that by 2014 China will become Starbucks second largest market outside the U.S. and will exceed 1,500 stores by 2015. Next year, Japan will open its 1,000th store and Korea will more than double in size to over 700 stores by 2016. Focus will also be given to accelerating growth across Indonesia and Thailand as part of its emerging market growth strategy.
Starbucks said it also plans to continue to amplify its expanding international business through new store designs, targeted innovation, and disciplined growth. The company emphasized the importance of local relevance in products and other offerings, citing recent enhancements to the Starbucks Experience in Europe, the Middle East, Russia and Africa.
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest quality arabica coffee in the world. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.
This release contains forward-looking statements relating to certain company initiatives and plans, including innovation, introduction of new products and expansion of manufacturing and packaging capacity, as well as trends in or expectations regarding growth, number of jobs created, expansion of national and international businesses, shareholder value, and market share. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual results may vary materially from those expressed or implied by the statements herein due to changes in local, state, national and international economic, business, social, competitive, and/or regulatory factors, unforeseen delays or costs relating to construction, acceptance of new products and other risks detailed in the companys filings with the Securities and Exchange Commission, including the Risk Factors section of Starbucks Annual Report on Form 10-K for the fiscal ended October 2, 2011 . The company assumes no obligation to update any of these forward-looking statements.
Starbucks Investor Relations Contact:
JoAnn DeGrande, 206-318-7118
Starbucks Media Contact:
Jim Olson, 206-318-7100
Source: Starbucks Coffee CompanyCopyright Business Wire 2012