Moments of Connection – A Look Back at Starbucks 2013 Milestones
As we close out the best year in Starbucks 42-year history, we wanted to share the highlights from 2013. Starbucks hit a record $14.9 billion in revenue by doing what we do best: bringing our customers more of the finest coffees the world has to offer; innovating new products, experiences and opportunities for connecting with our customers and partners (employees); and thoughtfully investing in the communities we serve around the world. All of this contributed to Starbucks ranking as FORTUNE Magazine’s 5th Most Admired Company in the World in 2013.
Starbucks delivered yet another year of double-digit shareholder returns through our focus on disruptive innovation, operational excellence and a foundation of strong values. As we head into 2014, here’s a look back at several of our more notable milestones over the last year:
The World’s Finest Coffee
As Starbucks adds new markets and new customers, coffee remains at the heart of everything it does. In 2013, Starbucks invited customers to discover and explore new exotic and exclusive coffees, including its new core Ethiopia offering, first-time seasonal Kati Kati Blend™, and exquisite Starbucks Reserve® Colombia Caldas. Starbucks also deepened its commitment to ethical sourcing with the opening of a new global agronomy center in Costa Rica, which will help set up coffee farmers globally for long-term success. This new resource complements Starbucks farmer support centers in other coffee-growing regions around the world.
63 Countries and Growing
In fiscal 2013, Starbucks opened 1,701 net new stores across the globe. Now operating in 63 countries, Starbucks opened its first stores in India, Vietnam and Monaco, and announced plans to enter Colombia in 2014. From Starbucks first-ever store on a train, to the Community Stores that share proceeds with local nonprofit organizations, to Drive Thru locations made with reclaimed shipping containers; Starbucks is delivering a unique experience wherever it goes.
Transforming our Investments into Momentum
Starbucks was not limited to its new coffee offerings, differentiated new store designs and expanding global presence. In 2013, Starbucks leveraged its investment in emerging brands to create a pipeline of breakthrough products and experiences. La Boulange began its nationwide rollout of savory pastries and warm bakery offerings – now reaching more than half of the company’s U.S. company-operated stores. Evolution Fresh cold-pressed premium juices can now be found in more than 8,000 Starbucks and grocery stores throughout the U.S., and Teavana opened its first Teavana Fine Teas + Tea Bar locations in New York and Seattle.
Accelerating Mobile & Digital Platforms
Starbucks continued its leadership in mobile, digital and loyalty to help elevate and amplify the Starbucks brand, while offering an enhanced Starbucks Experience for its customers. Fiscal 2013 was another record year for the Starbucks Card program, with more than $4 billion – just over a third of all North America store tender – loaded onto Cards. That momentum continued into the holiday shopping season, exemplified by a record 2.4 million Starbucks Card activations on December 19 alone.
At the same time, the My Starbucks Rewards loyalty program expansion continued in 2013 with the addition of 11 significant new markets including Germany, Hong Kong and the Philippines. Last year, Starbucks added a number of new features to My Starbucks Rewards and began integrating its emerging brands into the program. Members can now earn My Starbucks Rewards stars at many of their favorite grocery retailers and in Teavana stores, and redeem stars for Evolution Fresh Juices and other bottled Starbucks ready to drink (RTD) beverages – all of which further leverage Starbucks world-class Card and mobile payment programs.
Serving Partners (Employees) & Communities
For Starbucks, it's always been about more than coffee; it is about the commitment to the thousands of communities Starbucks serves and the company’s more than 200,000 partners around the world. More than ever before, Starbucks is demonstrating the ability to drive sustainable business performance through the lens of humanity.
In 2013, Starbucks launched a groundbreaking effort to hire more than 10,000 U.S. veterans and active military spouses. The company also continued to reward and invest in full- and part-time partners by helping them to realize more than $230 million in value from equity awards and by retaining industry-leading health care benefits despite changes to U.S. health care laws. In November, Starbucks invited its U.S. customers and partners to sign a petition that called on elected leaders to come together to find a solution to end the government shutdown and pass a Federal budget. Nearly two million signatures were collected and delivered to Congress and the President. Throughout the year, Starbucks partners and customers dedicate their time and energy to create positive change in their local neighborhoods. During last April’s Global Month of Service, Starbucks commitment to helping communities thrive was demonstrated as partners and customers volunteered nearly 50,000 hours to service projects around the world.
At the same time, Starbucks has sought innovative ways to engage and activate its global partner community. For example, in 2013 the company doubled the number of Starbucks partners engaged on its dedicated Starbucks Partners community page on Facebook to more than 50,000 fans. This success was enabled by its To Be a Partner campaign, which transformed Starbucks partners into digital storytellers. The success of this campaign is also reflected in the dynamic online conversation it has inspired and the more than 84,000 #tobeapartner images posted on Instagram.
In 2014, Starbucks will continue to focus on disciplined growth, relevant innovation, and efforts to strengthen connections with its partners, customers and communities around the world.
In 2013, Starbucks expanded availability of La Boulange bakery offerings from a handful of locations in Northern California to more than 3,500 Starbucks stores in cities across the U.S., including Boston, New York, Seattle and Chicago, and will offer La Boulange in 7,000 U.S. stores by the end of 2014.
2013 was capped off with a spot for Teavana on Oprah’s Favorite Things list. Tea has been part of Starbucks heritage since its founding in 1971, when it was known as Starbucks Coffee, Tea and Spices. Starbucks acquired premium tea retailer Teavana in 2012, and in 2013, Starbucks reimagined the tea experience with two new Teavana Fine Tea + Tea Bars in New York City and Seattle in addition to Teavana’s 300 retail stores across North America. In 2014, Starbucks plans to deepen its presence of Teavana-branded teas within Starbucks stores.
Starbucks expanded Evolution Fresh to a majority of its U.S. company-operated stores and Whole Foods markets nationwide. To meet the growing demand, Starbucks opened a $70 million state-of-the-art-juicery in California to quadruple production.
In October, amidst the shadow of a looming financial crisis and U.S. government shutdown, Starbucks invited its customers and partners to sign a petition that called on elected leaders to come together to find a solution. Nearly two million signatures were collected and delivered to Congress and the President in the nation’s capital.
To help address high unemployment levels for veterans and military spouses, Starbucks committed last November to hiring 10,000 military veterans and spouses over the next five years. Starbucks also opened two Community Stores near military communities, and plans to open a total of five Community Stores over five years near U.S. joint base locations to help fund local nonprofit programs that support veterans re-entering the workforce.
Starbucks now serves customers in 63 countries, and in 2013 opened more than 1,700 innovative and differentiated new stores across the globe. This expansion was enabled by Starbucks 18 in-house design studios in markets around the world, whose focus is to design locally relevant stores that reflect the unique culture of the neighborhoods they serve. Starbucks created unique store experiences from its first-ever store on a train, to the Community Stores that share their proceeds with local nonprofits, to modular store locations constructed of reclaimed shipping containers.
Starbucks strengthened its lineup of packaged and brewed coffees in 2013. In September, the company added Ethiopia single-origin coffee and refreshed its in-store coffee packaging. In the same year, the company’s exclusive Clover® Brewing System and the Starbucks Reserve™ Coffee program grew to more than 500 stores.
In March 2013, Starbucks expanded its $70 million ethical sourcing program with the purchase of its first farm. Starbucks is adapting this active 240-hectare farm in Costa Rica into a global agronomy center, helping coffee farmers mitigate the impacts of climate change and supporting long-term crop stability.
Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 25,000 stores around the globe, Starbucks 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 our stores or online at news.starbucks.com and Starbucks.com.
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