Starbucks 2011 Annual Report Download - page 4

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Among our most exciting moves in 2011 was our November entrance into the $1.6 billion super-premium juice segment through
the acquisition of Evolution Fresh, Inc., which also represents our intentions to more fully enter the $50 billion Health and
Wellness sector.
I have always believed that effective innovation is about responding to, predicting and creating customers’ needs while staying
true to our core values. In this regard, Starbucks performed exceptionally well in 2011.
Growth on a Global Scale
Around the world, our brand continues to resonate and business continues to grow. We ended fi scal 2011 with more than
17,000 stores in 55 countries.
Our U.S. Retail segment delivered against all operating and performance metrics, and outside North America the number of
transactions in our stores continued to accelerate, with disciplined execution enabling us to leverage that growth into higher
profi ts. Looking ahead, China remains on track to become Starbucks second home market, where we currently operate more
than 500 stores across 44 Chinese cities and plan to open approximately 150 net new stores in 2012.
Globally, we plan to open 800 net new stores in 2012—including our desire to open our fi rst Starbucks store in India. Additionally,
approximately 1,700 existing stores in the United States will be remodeled, and I encourage you to visit our new Times Square
fl agship store, which is a terrifi c example of our ongoing retail innovation.
Finally, our global performance is already being enhanced by our new three-region leadership structure, which applies more
focused leadership at the helm of each of the Americas, China and Asia Pacifi c, and EMEA regions, enabling our partners around
the world to drive results more effectively to further our worldwide momentum.
Using Scale for Good
One way to measure our incredible success this year is certainly the shareholder value we have built. Our balance sheet has never
been stronger and our profi ts never higher. However, I strongly believe that today’s times require that companies be evaluated by
more well-rounded measures.
I still believe that shareholder value must be linked to creating value for a company’s people, value for its customers and—
perhaps now more than ever—value for the communities it serves. Balancing profi tability and social conscience is as much a
part of Starbucks core as coffee. As we continually ask ourselves how we might use our scale for good, we have answered by
proactively addressing environmental issues and supporting our partners’ volunteer efforts, among many other things.
Most recently we have focused on the high unemployment plaguing the United States, and I am proud that, as an organization,
Starbucks is doing its part while appropriately supporting our business. We added approximately 3,700 net new jobs last year,
and plan another 12,500 globally for 2012. But we can do more. That is why, in association with the Opportunity Finance Network,
we launched Create Jobs for USA through which our customers can donate toward restarting the nation’s jobs engine through
loans to community businesses. In addition to $5 million seeded by The Starbucks Foundation, approximately $2 million has been
raised in the fi rst two months and loans have begun fl owing to small companies and community businesses across the country.
Like Starbucks ethical sourcing, environmental and volunteer efforts, the Create Jobs for USA initiative is right for Starbucks
because it authentically refl ects the times we live in while being relevant to our brand.
Thank You
Fiscal 2011 was a remarkable year for Starbucks. We powerfully asserted our coffee authority across multiple channels while
creatively enhancing the food and beverage experience for our customers, further differentiating ourselves from competitors.
These feats are, as always, due to the incredible talent of our nearly 200,000 partners, and I thank them for their dedication to
bringing value to our customers every day in more ways than
ever before.
I also thank you, our shareholders, for yet another year of believing
in us. Starbucks future has never been brighter. Our foundation
never more solid. We are remarkably well positioned to pursue
our diversifi ed, multichannel, multibrand business model in the
year ahead.
Warm regards,
Howard Schultz
chairman, president and chief executive offi cer
Ben Baker/Redux, courtesy of FORTUNE magazine