Starbucks Coffee Company. IMCEA Conference, San Antonio, TX July 19 th 2012

Transcription

1 Starbucks Coffee Company IMCEA Conference, San Antonio, TX July 19 th 2012

2 USAF Rickenbacker s WPS

3 Starbucks has great momentum and is evolving to better reach consumers beyond our stores 3

4 OUR GOAL IS TO EXTEND THE STARBUCKS EXPERIENCE TO THE 2 ND PLACE AROUND THE GLOBE. Direct Emotional Engagement (Through our partners, online and loyalty programs) Retail CPG/Foodservice

5 Starbucks Strategy Evolution in Foodservice Our ambition is to reach consumers beyond our stores serving consumers at home, work and on the go. This strategic evolution will include the overall brand expression. We introduced a major logo change one year ago: The siren is the focus, emphasizing our heritage and supporting growth beyond coffee

6 Digital Success Authentic connections 38M Global Fans 18M New Fans in FY11 95% Growth 3.6B Impressions on Facebook 8.8M Check-ins on foursquare and Facebook Places 1.7M Twitter Followers 42% Growth $70M Loaded Through Mobile 6

7 Starbucks Coffee Company 2011 Statistics Retail Store Footprint 17,003 stores US Company Operated 6,705 Licensed Stores 4,082 International Company Operated 2,326 Licensed Stores 3,890 By Channel Revenue $11.7B By Segment Company Operated Licensed Stores CPG, Foodservice, other Total $9.6B $1.0B $1.1B $11.7B US International Global CPG/other Total $8.0B $2.6B $1.1B $11.7B Starbucks Military Accounts We Proudly Serve 850 total Military locations Licensed Starbucks Stores 60 locations on bases Significant presence in Commissaries & Exchanges Source: Starbucks FY11 10 k

8 Foodservice will more closely align with Retail stores through new marketing and an expanded product portfolio 8

9 A New Foodservice Logo Mirrors the company logo. Supports growth beyond brewed coffee. Closely matches the cup used in retail stores. 9

10 Pike Place Roast Starbucks most popular coffee is now available to WPS locations! 10

11 New Starbucks Zones Bold graphics from our new brand expression More flexibility 6/29/

12 Excellent results to date (more than 1,000 FoodService locations)! Available to pre-qualified, Foodservice accts serving Only available in US SBUX s Business Development Managers must visit all sites to conduct a Site Survey 12

13 Full Starbucks Portfolio Required To offer Frappuccino, café must carry full We Proudly Serve portfolio o Starbucks espresso and brewed coffee o Branded hot and cold cups o Fontana syrups and sauces Ice making (specific conforming specification) capability must also be confirmed by Starbucks local Business Development Managers

14 Required Program Components Equipment Vitamix Blender & Pitchers Smallwares Ice Scoop, Measuring Tumbler, Syrup Pumps Beverage Components Frappuccino Roast Extract, Frappuccino Syrup Base Sauces/Syrups Fontana Bittersweet Mocha and Caramel Sauce, Fontana Caramel Syrup

15 We Proudly Serve Spring/Summer Comprehensive Cold Beverage Offerings Timing: Spring/Summer programs communicated to WPS customers April 17 via blast all marketing and product available to order now. Customers directed to operator website they can order product, download recipes and explore additional information around programs. Marketing POS counter cards, posters, table tents ordered through Starbucks representative and shipped directly to customers. 15 * Available for qualified WPS espresso customers only

16 Updated Iced Coffee Marketing Support: Counter card, table tent, posters Frequency Cards Training Materials Decals and Wraps

17 Fall Programming We Proudly Serve Fall Promotion Launch August 20 th Core Coffee Starbucks Roast Spectrum Starbucks Roast Spectrum Blonde: Veranda Blend Medium: Pike Place Roast Dark: Caffe Verona New! Decaf Pike Place Roast Launching in September for FS & OCS Available in all formats Marketing available Limited Time Offering Fontana Pumpkin Sauce Sauce available end of August Available direct and through distribution this year Recipe support for espresso and drip beverages Core Programming Salted Caramel Mocha Uses core products Toffee Nut, Bittersweet Mocha and Caramel Sauce Marketing available Tazo Chai Tea Latte Uses core product Marketing available Caramel Apple Spice Uses core products Cinnamon Dolce syrup and Caramel Sauce Extend intro of Cinn Dolce into Fall offering Operators to source apple juice. Nice non-coffee alternative Limited marketing available

18 Introducing new Blonde Roast to Foodservice! Veranda Blend Veranda Blend = A blend of Latin American coffees Body is clean Finish is clean and flavors are fresh Available in all formats for Foodservice and Office Coffee: 2.5, 5, 9oz, 1lb WB & ground. Available July 12 th in Foodservice Confidential Property of Starbucks Coffee Company

19

20 FY13 Holiday Programming We Proudly Serve Pre Orders October 8 th WPS Holiday Launch November 13 th Seasonal Coffee Starbucks Christmas Blend 5 & 9oz portion packs Seasonal POS and decal available Limited Time Offering Seasonal Beverages Seasonal Merchandise Fontana Peppermint & Gingerbread Syrups Espresso beverages: Peppermint Mocha and Hot Chocolate Gingerbread Latte Other seasonal beverages: Eggnog Latte Chocolate Eggnog Coffee Spiced Caramel Coffee Tazo Eggnog Chai Seasonal POS available recipe cards, counter card, table tent and posters Gift Pack and Tumbler Coffee Sampler oz variety of coffee bricks 16oz Red Tumbler carried over from last Holiday for FS

21 Starbucks Foodservice Operator Website Starbucksfs.com

22 Licensed Stores Approximately 60 Starbucks LS on Military bases today with the Navy, Marines (MCCS) and AAFES For Higher Volume locations Create the third place on base Not approved for food courts Custom built and Kiosks are typical build-outs Drive Through build-outs possible Master License Agreement required License Fee and Royalties apply Design and Development support Significant operational and training support Nnnn

23 Forbes magazine article May 29, 2012 Businesses Backing Veterans: How Starbucks Created an Army of Support Memorial Day may be over, but the issues facing veterans continue every day. With that in mind, I ve been taking inventory of Corporate America to find out which companies are standouts when it comes to veteran friendly practices. I m particularly concerned, as we should all be, about the sky-high unemployment rate amongst recent veterans a rate much higher than that of the civilian population. That s why businesses which are addressing this issue hold a special place in my heart. But savvy companies aren t hiring vets out of any sense of charity; they understand that by helping veterans they re making a wise business decision. Vets who have served in the deserts of Iraq and Afghanistan, who have been members of disciplined teams with complex missions, who have done their jobs despite physically and emotionally challenging conditions can, unsurprisingly, become excellent employees in civilian workplaces. Indeed, the level of skill, leadership and composure our veterans bring to the table is tough to match. A Veteran Friendly Culture Starbucks is one company that recognizes the tremendous value of veterans and, in turn, has developed innovative ways to make their organization as veteran friendly as possible. While the unemployment gap for veterans is still wide elsewhere, at Starbucks the military community is growing, thanks in large part to the Starbucks Armed Forces Network (AFN). The AFN is an organization launched and led by veterans in 2009 to support Starbucks military partners (how they refer to their employees) and their families, as well as veterans and military reservists searching for new employment in the civilian world. This group resonates not only with transitioning veterans but also with Starbucks current military partners, who recognize that nobody understands being in the military like a veteran does. Companies like Starbucks understand that it s not enough to want to hire vets; in order to successfully source veteran talent, the business must become culturally competent in the language of vets. Likewise, vets must develop cultural competencies around the language of Corporate America. Without this mutual understanding, the veteran faces a greater barrier in landing new employment, just as companies face a great barrier in identifying and on-boarding individuals from this tremendous talent pool. Often it comes down to vernacular, explains Cecilia Carter, Starbuck s vice president of Global Diversity, Community and Government Affairs. Does a Junior Military Officer with eight years of service in the Marine Corps, MACG 28, 3RD LAAM Battalion have the right skill-set for a senior Human Resources position, for example? Frequently, the answer is yes, but does the hiring manager know that? A primary function of the AFN is to help transitioning military translate their experiences into a vernacular that a civilian hiring manager can understand. And it s working. Carter pointed out, for example, a transitioning Air Force Lieutenant Colonel with 20 years of experience who recently joined the Starbucks team as a senior accountant after robust networking with AFN partners. Noel Harris, a former Navy Seal, also with 20 years experience, is now serving as director of protective services, developing security policies for Starbucks partners and VIP s. And Starbucks recently hired a former Navy Junior Military Officer as both a store manager and coffee master. We re lucky to have them, Carter continued. Looking forward, our hope is for our veteran outreach to grow as we cultivate diversity in all aspects of our business. We continue to learn and improve upon the ways we support these incredible individuals. Bottom-Line Sense Starbucks innovative programs, like the AFN that supports vets, create the sort of socially conscious business culture that is increasingly being adopted by Corporate America a culture that is further benefiting companies through improved employee engagement. The company will be one of the key business and government thought leaders exchanging ideas like these at next week s Social Innovation Summit at the United Nations, a forum which spotlights the growing movement of making the business of social change a key part of one s business. Who can argue with this sort of commitment from Corporate America to leverage its resources for good? I just hope that when companies consider how to help veterans find employment, they recognize like Starbucks does that the businesses themselves are the ones who are helped the most.

24 Starbucks and the Navy sign Training agreement On Tuesday, March 6, Starbucks Supply Chain leaders and the Starbucks Armed Forces network hosted members of the U.S. Naval Supply Systems Command (NAVSUP) at the SSC. Peter Gibbons, executive vice president, Supply Chain Operations welcomed Rear Admiral Mark Heinrich, Commander, Naval Supply Systems Command and Chief of Supply Corps for the signing ceremony of an agreement to participate in the NAVSUP Training with Industry (TWI) program. Starbucks joins FedEx and Home Depot as the third company to partner with the Navy in this innovative approach to supply chain management development. This program provides a unique opportunity for a Supply Corps officer, to be a part of and analyze Starbucks supply chain operations. This summer, Lieutenant Commander Mark Bowmer will start a one year assignment in SCO, working in a director level position. Peter described the partnership as a "tremendous opportunity for two world class organizations to share best practices to improve our operations." After the signing ceremony, Rear Adm. Heinrich and LCDR Bowmer joined the Starbucks Armed Forces Network (AFN) for a Meet & Greet where partners learned more about the TWI program and other key NAVSUP initiatives such as their efforts to increase use of alternative energy and reducing waste on ships to improve the Navy's environmental performance. The AFN is a partner network that supports Starbucks partners who are veterans, reservists and on active duty, supports returning and transitioning veterans, and creates a culture at Starbucks that embraces military veterans in the workplace. The Supply Chain Organization and AFN are excited to welcome LCDR Bowmer to Starbucks. Photo caption (from left): U.S. Navy LCDR Bowmer and Rear Adm. Heinrich join Starbucks Supply Chain Operations evp Peter Gibbons

25 Seattle s Best Coffee Supports Wounded Warrior Project Seattle s Best Coffee showed up strong for Starbucks Global Month of Service, a time when partners work together to create positive change in our own communities and around the world. Thirtyfive partners from the Support Center and retail stores worked to assemble 500 transitional care packs for service men and women injured in the line of duty. These care packs, filled with essential care and comfort items, like clothing and toiletries, are designed to make a hospital stay more comfortable, and are given to injured service people in transition from field hospitals to larger military treatment facilities. June Ruppert, program coordinator for Wounded Warrior Project, explained that the packages made by the Seattle s Best team would represent one month s supply of the packs needed to support injured personnel.

26 Starbucks Appoints Former Defense Secretary Robert Gates to Board of Directors SEATTLE, May 02, Starbucks Corporation (NASDAQ:SBUX) announced today that Robert M. Gates, former U.S. Secretary of Defense and current chancellor of the College of William & Mary, was elected to the Starbucks Board of Directors. He will serve on the Board s Nominating and Corporate Governance Committee. We are honored and humbled to be adding this distinguished American leader to Starbucks Board of Directors, said Howard Schultz, chairman, president and ceo. Secretary Gates has devoted his life to serving our country and our next generation of leaders and public servants. His unique global perspective and more than four decades of distinguished public service will complement and strengthen our Board as we accelerate our global growth and expand our commitment to the communities where we do business all around the world. Secretary Gates served in numerous roles in the Executive Branch of the U.S. government for nearly half a century, culminating as Secretary of Defense from 2006 to He was the first defense secretary to serve under presidents from both political parties President George W. Bush and President Barack Obama. Upon Secretary Gates retirement in June 2011, he was presented the Presidential Medal of Freedom, the highest honor a president can bestow on a civilian. In September 2011 he was named the 24th chancellor of the College of William & Mary. Secretary Gates also served as president of Texas A&M University between 2002 and He earned an undergraduate degree in history from the College of William & Mary, a master s degree in history from Indiana University and a doctorate in Russian and Soviet history from Georgetown University. In addition to the Presidential Medal of Freedom, Secretary Gates is the recipient of numerous other awards and honors, including recognition as one of TIME s Most Influential People in I am deeply honored to have been asked to join Starbucks Board of Directors, said Secretary Gates. "Starbucks is a different kind of company that is recognized around the world not only for its innovative products, customer service and business success, but more importantly for its unwavering commitment to a core set of values that put people and community first. I have Starbucks to thank for keeping me caffeinated through many long days and nights during my years in Washington and couldn t be more proud about the opportunity to play a part in helping the company navigate our increasingly complex world in the years ahead.

27 Contact information Military National Account Executive: Name: Brian Melodia Phone #: I will connect you with the appropriate BDM Business Development Manager assigned to your area.

28 Appendix

29 CONFIDENTIAL *Product represents about 2 weeks worth of sales Frappuccino Basket 1 Accounts perform up to 60, 16 oz. beverages per day* Equipment Small Wares Start Up Components Item Description UOM Qty Price Total Vitamix BLENDER MOTOR W/COVER (model #36019) each 1 $ $ PITCHER DAIRY W/BLADE/LID each 2 $ $ PITCHER SOY W/ BLADE/ LID each 1 $ $ SQUEEZE BOTTLE 12OZ FOR CARAMEL each 2 $ 1.60 $ PUMP CBS COFFEE each 1 $ $ FOUNTAIN JAR SHALLOW PLASTIC each 1 $ 7.80 $ PUMP BASE LONGER FRAPPUCCINO 3/ip 1 $ 5.40 $ PUMP SYRUP WHT SBUX BOTTLE 3IP 1/ip 1 $ 2.40 $ SCOOP 16OZ ICE GRANDE each 2 $ 7.90 $ MEASURING CUP/TUMBLER each 2 $ 6.85 $ Total Start Up Equipment Investment $ 1, Frappuccino Beverage Components UOM Qty Price Total EXTRACT FRSC V2 24/CS case 1 $ $ SYRUP COFFEE FRAPPUCCINO 63OZ 4/CASE case 6 $ $ Total $ Ancillary "We Proudly Brew" Starbucks Skus UOM Qty Price Total LID 16/26OZ DOME PP CS/1000 case 1 $ $ LID 16/26OZ FLAT PP CS/1000 case 1 $ $ CUP 16OZ COLD WPB CS/1000 FS case 1 $ $ CUP 3.5OZ COLD WPB CS/2500 case 1 $ $ STRAW 7.75 GREEN 2000/CASE case 1 $ $ SAUCE 63OZ CARAMEL 4/CS FS case 1 $ $ SAUCE 63OZ BITTERSWEET CHOC 4/CS case 1 $ $ SYRUP 1L CARAMEL FS 4/CS case 1 $ $ SOY US VANILLA HGL 8/case case 1 $ $ Total (varies based on what a location may already have) $ TBD TRAINING MATERIALS 1 kit NC TBD MARKETING KIT 1 kit NC

30 Iced Coffee and Tazo Iced Tea Refresh New Narrow Dispensers Refreshed POS & Decals New Photography 30