Starbucks 2009 Annual Report Download - page 4

customers, allowing us to understand their needs and stay top-of-mind in this increasingly competitive retail environment.
We also launched popular iPhone applications to help customers fi nd our stores, determine nutrition information and reload
their Starbucks Cards.
In fi scal 2009, we unveiled a bold and innovative store design approach, with new concepts in Seattle, Paris and London—all
enthusiastically received. All newly constructed company-operated stores worldwide will be LEED®-certifi ed beginning this
calendar year, moving us closer to our goal of signifi cantly reducing our environmental footprint. This initiative, coupled with
locally relevant store designs and renovations, is helping us form deep and long-lasting connections with customers in their
own neighborhoods.
Finally, we stayed true to who we are and our mission to inspire and nurture the human spirit—one person, one cup and one
neighborhood at a time. For our partners, despite economic pressure, we continued to offer health care benefi ts to eligible full-
and part-time partners, something we have done for over 20 years. We were also proud to be able to contribute a match under
our 401(k) program this year—another benefi t that many companies retreated from in 2009.
We reaffi rmed our commitment to doing business responsibly. This year we became the world’s largest purchaser of Fair Trade
Certifi ed™ coffee and partnered with Conservation International to address climate change in coffee-growing regions. And we
continued to give back to the communities we serve through volunteer activities and community programs. These efforts are
also good business, as consumers increasingly want to build relationships with companies that share their values.
Our Path Forward
With our progress over the past two years, we are now in a position to take advantage of the global opportunity for Starbucks.
Improvements in the U.S. business will allow us to pursue disciplined new store growth internationally. While Starbucks now
operates in more than 50 countries (we added Portugal, Bulgaria and Poland in fi scal 2009), we are still in the early stages of
international growth. We expect future growth for Starbucks to come from deeper expansion in markets where we already have
a strong presence, such as the UK, Canada and Japan. Our progress in China continues, and we believe it will one day be the
largest market for Starbucks outside the U.S.
As part of our international strategy, we will also seize opportunities to move beyond our retail stores. Extending our profi table
global consumer products group allows us to reach more customers in more places, and we plan to grow this business at an
accelerated pace around the world. We see signifi cant runway for CPG to grow, and we will be poised to capture that
opportunity with an evolution of our distribution structure and with an increasing variety of offerings in the grocery channel.
Our future lies in our ability to innovate, to be forward-thinking and nimble. In fi scal 2009, we wrote a new playbook for just
that with the launch of Starbucks VIA™ Ready Brew. We have been extremely excited to see our customers in North America
embrace this 100 percent natural roasted soluble coffee that maintains the high standards of quality and taste of freshly
brewed Starbucks® coffee. This is a substantial new global growth platform within our core business, representing the fi rst
signifi cant innovation in more than 50 years in the $21 billion global instant coffee category. Starbucks VIA™ also gives
customers an easy and affordable single-serve option at home and on-the-go. We look forward to extending the product
internationally—both in our stores and in grocery channels—in fi scal 2010.
Another growth vehicle will be Seattle’s Best Coffee. Our research tells us we can aggressively position SBC with new
customers, and we plan to create compelling franchising and distribution opportunities in 2010. We have ambitious goals for
the brand and look forward to making some big moves in the coming months.
I am incredibly proud of the loyalty, commitment, passion and tireless efforts of our partners all over the world. Because of
them we have been able to successfully navigate some formidable and dangerous headwinds, and to emerge a better and
stronger company than we have ever been—ideally positioned to grow and capitalize on global opportunities in the years
ahead. I am as optimistic about Starbucks future as I have ever been.
In closing, I would like to offer my heartfelt thanks to everyone who touches Starbucks. To our people, who stepped up to the
challenge of delivering an exceptional customer experience, to the farmers and suppliers who grow our coffee, to our business
partners around the world, to our shareholders for their continued support, and ultimately to our customers—for inviting us
into their lives and for giving us the opportunity to earn their loyalty and trust every day.
Warm regards,
Howard Schultz
chairman, president and chief executive offi cer