Apr 01, 2012|
Starbucks Believes that China Will be Second Largest Market by 2014
Starbucks aims to accelerate its growth momentum and to exceed 1,500 stores by 2015
BOAO, CHINA, April 1, 2012 – Starbucks Coffee Company (NASDAQ: SBUX) today reiterated that China will remain the focal point of its international expansion efforts. Speaking at the sidelines of the Boao Forum for Asia Conference 2012, John Culver, president, Starbucks China and Asia Pacific confirmed that Starbucks believes its operations in China will be its second largest, outside of the United States, by 2014. In addition, Starbucks is confident that it will exceed 1,500 stores, across China, by 2015.
“We continue to see strong growth in China giving us even greater confidence in achieving our goal of building China as our largest market, outside of the U.S., by 2014,” said John Culver, president, Starbucks China and Asia Pacific. “While we have an ambitious plan to accelerate our pace of growth, we will make sure we are growing the brand in a holistic way; delivering the highest quality espresso, locally-relevant product and store design innovations, as well as elevating the special connection we have with our customers and the local communities where we do business.”
Starbucks successfully entered 13 new Chinese cities during its fiscal year 2011, opening an average of 1 store every four days. The stores opened in these new markets have been widely accepted by the local consumers and store performance has exceeded the company’s expectations.
“Our partners (employees) are at the heart of delivering the Starbucks Experience to our customers each and every day,” continued Culver. “It is their passion for coffee excellence, exceeding customer expectations and developing their teams, which has led to our success in China.”
Since its entry into the Chinese market, with the opening of its first store at the Beijing World Trade Centre in 1999, Starbucks has built the company and its brand on a passion for delivering high-quality arabica coffee. With a 40-year history of sourcing, roasting and blending, only 3% of the world’s beans make it into a bag of Starbucks® coffee. Starbucks is committed to the quality of its coffee every step of the way – starting from the soil and ending with each cup of finely handcrafted coffee beverage.
“For the past 13 years, Starbucks has been successful in maintaining our coffee leadership in China because of our unwavering commitment to ensure each of our customers will only be served the finest cup of coffee every time they visit our stores, or use our coffee products at home or on-the-go,” added Culver.
For many Chinese, Starbucks has not only been a symbol of China’s rapid urban development, but for its customers, the authentic Starbucks coffee culture, genuine moments of connection between its partners and customers, and unique Starbucks Experience, have come to embody a new modern lifestyle pursuit and aspiration.
Starbucks today operates more than 570 stores across 48 Chinese cities.
Since 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
This release contains forward-looking statements relating to certain company initiatives, strategies, plans, trends and expectations regarding China, including the size of the market and timing, expansion efforts, number of stores, the pace and form of growth, store sales, innovations, connections with our customers, store experience and performance, and leadership position in China. 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, strategies and plans in China and the other markets in which Starbucks does business, changes and uncertainties in economic, social, political and regulatory conditions in China, the acceptance of Starbucks products in China, foreign currency and exchange fluctuations, the impact of competition 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 2, 2011. The company assumes no obligation to update any of these forward-looking statements.