ADDING MULTIMEDIA Starbucks Introduces Innovative Cross-Channel, Multi-Brand Loyalty Program and Announces Global Social Impact Initiatives at Annual Meeting of Shareholders

Wed Mar 20, 2013 7:42pm EDT

* Reuters is not responsible for the content in this press release.

Company Recognizes the Contributions of its 200,000 Global Partners (Employees)
in Delivering Record Financial Performance and a 38% Total Return to
Shareholders in Fiscal 2012, Reaffirms Long-Term Growth Targets
SEATTLE--(Business Wire)--
Howard Schultz, chairman, president and ceo of Starbucks Coffee Company
(NASDAQ:SBUX), opened the company`s Annual Meeting of Shareholders by
recognizing company partners (employees) and highlighting the company`s
continuing robust operating performance. Schultz and other company executives
announced a breakthrough innovation in Starbucks loyalty and rewards program,
shared progress and future plans for its recent La Boulange, Evolution Fresh and
Teavana acquisitions and offered a comprehensive overview of how Starbucks is
using its global scale to create positive, local impact in the communities where
it operates and where its partners and customers live and work.
Howard Schultz, chairman, president and ceo, acknowledges the more than 200,000
Starbucks partners (employees) worldwide for their contributions to the
company's ongoing success. (Photo: Business Wire)

Annual meeting highlights included:

* Thanks and appreciation from company shareholders via webcast to the 200,000
Starbucks partners around the world who deliver the Starbucks Experience to over
70 million customers in 62 countries each week. 
* The announcement by Adam Brotman, chief digital officer, of an expansion of
the company`s loyalty and rewards program, and an industry-first innovation that
will enable customers to earn rewards for grocery channel purchases that can be
redeemed in Starbucks retail stores and is expected to double the number of
customers enrolled in the company`s programs in fiscal 2013. 
* Brotman also announced that Starbucks mobile payment platform is now
generating over three million U.S. mobile payment transactions per week. 
* Blair Taylor, Starbucks chief community officer, announced the launch of a new
nonprofit corporation with a $1 million seed grant to introduce job skills,
leadership and apprenticeship programs to young people across the company`s
multi-billion-dollar supply chain, and further expansion of the company`s
support for U.S. manufacturing through an order for 100,000 ceramic mugs from a
supplier in Ohio whose operations Starbucks helped expand through previous
purchasing commitments. 
* A discussion by Troy Alstead, chief financial officer, of region-by-region and
individual segment performance for fiscal 2012 and a reaffirmation of the
company`s fiscal 2013 revenue and EPS growth targets. 
* Schultz`s recognition of Starbucks 15-year business partnership with Mohammed
Alshaya, Executive Chairman, M.H. Alshaya Co., including comments about how
bringing specialty coffee to the Middle East serves as a model for the company`s
future expansion initiatives.

"The opportunity we have to create value for our shareholders is exceeded only
by our unique ability to contribute meaningfully to the communities we serve
around the world," said Schultz. "From leveraging and expanding our strong
global business partnerships, to bringing innovation to our customers and each
of the markets and channels in which we operate, to expanding our broad array of
digital customer touch points and deepening our ethical sourcing model,
Starbucks is continuing to grow with passion and intent to become one of the
world`s most relevant, admired and trusted brands." 

Starbucks Continues its Robust Trajectory of Growth and Profitability

Schultz opened the annual meeting by asking Starbucks shareholders to stand and
recognize the company`s 200,000 partners around the world who deliver the
Starbucks Experience to customers each day, then highlighted key accomplishments
since last year`s meeting:

* Record revenues of $13.3 billion and record earnings per share of $1.79 in
fiscal 2012, 
* 38% total shareholder return in 2012, following a 46% return in 2011 and a 32%
return in 2010, 
* 14% revenue growth in 2012, capping off the eleventh consecutive quarter of
5%+ global comp store sales growth, 
* 18% earnings per share growth in 2012 despite significant commodity headwinds,
* Continued outperformance of key industry financial performance metrics, record
cash flow of $1.8 billion, record returns on invested capital of 22.4% and over
$1.1 billion returned to shareholders through dividends and share repurchases in

Digital and Loyalty Momentum Around the World

Starbucks world-class My Starbucks Rewards loyalty program continues to resonate
with customers, driving increased revenue, traffic and purchases and further
differentiating Starbucks from competitors. Adam Brotman, chief digital officer,
announced the exciting evolution of the My Starbucks Rewards loyalty program
into the world`s first cross-channel, multi-brand loyalty program, reflecting
further successful execution against the company`s Blueprint for Profitable
Growth strategy. Key highlights of the new program:

* Beginning in May, customers will earn My Starbucks Rewards Stars for purchases
of Starbucks packaged coffee in grocery channels. These Stars can then be
redeemed for free food or beverages in Starbucks retail stores. The program is
expected to be expanded to include other Starbucks products sold through grocery
channels this fall. 
* Integration of the Starbucks Card and My Starbucks Rewards loyalty program
across several of its emerging brands, including Teavana. Beginning next month,
registered customers who make purchases with a Starbucks Card or through the
Starbucks mobile app at any of over 300 Teavana retail stores will be able to
earn Stars for their purchases.

Together, Brotman reported, these new program innovations are expected to
contribute towards a rapid and substantial increase in My Starbucks Rewards
membership, from 4.5 million active members at the end of October 2012 to
approximately 9 million members by the end of fiscal 2013. 

In January 2011, Starbucks became the first national retailer to offer its own
mobile payment technology combined with a world-class loyalty program, and the
company now generates over three million mobile transactions each week in the
U.S. alone - accounting for approximately 10% of total U.S. tender (Starbucks
card, broadly, represents 1 in 3 transactions in the U.S.). New mobile users
report that they are embracing the Starbucks mobile payment experience because
of the benefits they receive and because it enables them to track their loyalty
status in an interactive and engaging way directly on their mobile device. 

Also highlighted at the meeting was the five-year anniversary of My Starbucks
Idea, the company`s online community that encourages customers to share their
ideas, engage in conversation and have a voice in shaping the Starbucks of the
future. Found on the web at, over the last five years My
Starbucks Idea has received over 150,000 submissions from customers around the
world that have helped launch 275 ideas into Starbucks stores. 

Leveraging Global Scale for Local Good

With more than 200,000 partners in more than 18,000 stores in 62 countries
around the world, Starbucks growth has also enabled the company to leverage its
global operational scale for good in a variety of different ways across the

Blair Taylor, chief community officer, affirmed Starbucks commitment to U.S.
manufacturing and announced a first-of-its-kind supply chain initiative that
will leverage Starbucks multi-billion-dollar network to create leadership and
job skills training for disengaged youth. Highlights of Taylor`s discussion

* Made in the U.S.A.: Starting in the fall, American Pioneer Manufacturing will
begin producing a Starbucks siren mug that represents a core product in the
company`s overall drinkware lineup. Based in New Waterford, Ohio, this automated
facility is the first of its kind in an historic potting community. To help
build capacity for the new facility, Starbucks has placed an initial order for
100,000 units for delivery in the fall and is making the mug available for
purchase in U.S. stores starting in winter. As a result, American Pioneer
Manufacturing expects to hire as many as 20 U.S. workers by the end of the year.

* Supply Chain Coalition: Building on the learnings and success of the Starbucks
Youth Grants initiative, Starbucks also announced an initial $1 million grant
for the development of a nonprofit corporation - LeadersUp - that will tap into
Starbucks supply chain to bring new job and leadership skills training to young
people with the eventual linking of trainees to job experiences within our
collective companies and beyond. In the first year, this organization has the
goal to raise $10 million to support this work over the next year, with a
long-term strategy of establishing up to a $100 million annual fund.

Earlier this week, Starbucks also announced the purchase of a 240-hectare coffee
farm as part of its ongoing commitment to ethically source 100 percent of its
coffee by 2015:

* Sustainable Farming Investment: To help farming communities around the world
mitigate climate change impact and ensure long-term crop stability, Starbucks
will expand its existing $70 million comprehensive ethical sourcing program with
a new coffee farming research and development center in Costa Rica. The company
will adapt this 240-hectare working coffee farm into a global agronomy center,
expanding its Coffee and Farming Equity practices (C.A.F.E.) program that seeks
to ensure coffee quality while promoting social, environmental and economic

About Starbucks Corporation:

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

Photos/Multimedia Gallery Available:

Starbucks Coffee Company
Media Relations, 206-318-7100

Copyright Business Wire 2013

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.