- 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.
Starbucks Continues its Robust Trajectory of Growth and ProfitabilitySchultz 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, and
- 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 2012.
- 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.
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 include:
- 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.
- 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 standards.