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:
“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:
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:
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 www.MyStarbucksIdea.com, 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 enterprise.
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:
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:
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 www.starbucks.com.