Full Description

Starbucks Corporation, together with its subsidiaries (Starbucks) is the roaster and retailer of specialty coffee. It purchases and roasts whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a range of food items, a selection of premium teas, and beverage-related accessories and equipment, through Company-operated retail stores. Starbucks also sells coffee and tea products and licenses its trademark through other channels such as licensed retail stores and, through certain of its licensees and equity investees, Starbucks produces and sells a range of ready-to-drink beverages. The Company operates in three business segments: United States (US), International and Global Consumer Products Group (CPG).

The US and International segments both include Company-operated retail stores and certain components of specialty operations. Specialty operations within the US include licensed retail stores and other initiatives related to the Company’s business. International specialty operations consist of retail store licensing operations in 40 countries and foodservice accounts in Canada and the United Kingdom. The CPG segment includes packaged coffee and tea, and other branded products sold globally through channels, such as grocery stores, warehouse clubs and convenience stores, and US foodservice accounts.

Starbucks retail stores are located in high-traffic, high-visibility locations. Its stores are located in or near a variety of settings, including downtown and suburban retail centers, office buildings and university campuses. As of September 27, 2009, the Company operated approximately 2,650 drive-thru locations, representing approximately 35% of Company-operated stores in the United States and Canada combined. Starbucks stores offer a choice of regular and decaffeinated coffee beverages, a selection of Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, a selection of premium teas, packaged roasted whole bean coffees and coffee Starbucks VIA Ready Brew (VIA). Starbucks stores also offer a variety of fresh food items. Food items include pastries, prepared breakfast and lunch sandwiches, oatmeal, and salads, as well as sodas, juices and bottled water.

The Company sells whole bean and ground coffees, including the Starbucks and Seattle’s Best Coffee brands, as well as a selection of premium Tazo teas, VIA and other related products, to institutional foodservice companies that service business and industry, education, healthcare, office coffee distributors, hotels, restaurants, airlines and other retailers. At September 27, 2009, the Company’s total foodservice operations had over 21,000 accounts primarily in the United States.