Retail growth outside the U.S. is also central to the company’s strategy, with Starbucks International in the first year of a multi-year transformation based on the successful transformation of the U.S. business. “Strong fundamentals and customer demand provide the company with the foundation to accelerate growth into established markets, such as Canada and Japan, and new or emerging markets such as China, Brazil, India and Russia,” said John Culver, president of Starbucks Coffee International. “We are particularly pleased with the response we’re seeing from our Chinese customers, and expect to operate at least 1,500 Starbucks stores in Mainland China by 2015.”The company also announced plans to build a world-class consumer packaged goods (CPG) organization. Under the leadership of Jeff Hansberry, president, Global Consumer Products and Foodservice, Starbucks is creating an infrastructure that combines the best of Starbucks marketing and promotional expertise with best-in-class CPG capability. Hansberry added, “By reaching customers in the most agile and efficient way across all categories, channels and markets, Starbucks CPG business is becoming a high profit, important and growing business, with global scale for Starbucks. The new direct model has the ability to drive authentic and effective sampling, build true partnerships with our retail customers and build their trust, and introduce some Starbucks retail theater to the grocery aisle.” As it continues to expand its retail and grocery footprint, Starbucks is also building stand-alone brands like Seattle’s Best Coffee, which continues to grow its points of distribution and to make high-quality coffee more accessible than ever before. The brand is targeting growth with new products, including the recently launched Levels System which is designed to reach new customers by simplifying the coffee-buying experience, and new concepts, such as its first Seattle’s Best Coffee Bar as part of a pilot project in Walmart Canada Supercenters. Concluding the conference, Starbucks chief financial officer Troy Alstead added, “Starbucks has reached a critical juncture as we move from a high unit growth specialty retailer focused on coffee in our stores, to a global consumer company with diversified growth platforms across multiple channels. We are intent on capturing a larger share of coffee consumption, reaching consumers wherever and whenever they want great coffee.”
About StarbucksSince 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. Forward-Looking Statements This release contain forward-looking statements, including statements relating to certain company initiatives and plans, as well as trends in or expectations regarding, market share, store openings, innovation, growth in existing, new and emerging markets, our U.S., International and CPG business, and return to shareholders. 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 future results may differ materially depending on a variety of factors including, but not limited to, coffee, dairy and other raw material prices and availability, costs associated with, and the successful execution of, the company’s initiatives and plans, the performance by third parties of their agreements with us, fluctuations in U.S. and international economies and currencies, the impact of competition, 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 Starbucks Annual Report on Form 10-K for the fiscal year ended October 3, 2010. The company assumes no obligation to update any of these forward-looking statements.