Starbucks 2012 Annual Report Download - page 4

our loyalty and Card program, and mobile technologies.
It is hard to overstate the collective power of Starbucks
54 million Facebook fans, 3 million Twitter followers,
14.6 million loyalty program members, and 7 million users
of our mobile applications, who pay this way 2 million
times each week. We also gave our customers another
quick, mobile way to pay by forging a partnership with
Square. We will not stop innovating on this front, where
our best-in-class digital reach, and more notably the
authentic engagement we ignite daily with millions of
consumers online, will continue to drive our core business.
Coffee and connection will always be the heart of
Starbucks, yet our ability to reinvigorate our business
around that heritage remains an unmatched competitive
advantage.
Innovating with Timely Relevance,
Courage, and Conviction
Last year also saw significant product innovation around
our coffee core, most notably in the $8 billion premium
single-cup category.
We reached a true milestone with the launch of the
beautiful Verismo® System, a breakthrough technology
that heralds the first time customers can make Starbucks®
brewed or latte beverages in their homes. This is only the
beginning as we embark on a multiyear plan to grow the
Verismo brand into the leading platform in the single-cup
space, where sales of our other, complementary single-
serve offerings are also accelerating. In 2012 Starbucks
VIA® Ready Brew sales grew significantly and we shipped
nearly 500 million K-Cup® packs, garnering approximately
16 percent of the premium single-cup market.
Through creative new products, we are meeting more of
our customers’ needs. This summer we introduced
Starbucks Refreshers™ beverages,
delicious cold energy drinks
made with natural green
coffee extract, available
in cans, as an instant
beverage, and
handcrafted in our
stores. And we
continue to delight
with seasonal coffee
beverages such as
Pumpkin Spice and
Peppermint Mocha, as
well as Starbucks® Blonde
roast, which we introduced for
the 40-plus percent of U.S. coffee drinkers
who prefer a lighter roast.
Meanwhile, three strategic acquisitions are
bringing bold upgrades to our food and
non-coffee beverage categories. With La Boulange®
bakery products, we have begun the transformation of the
selection, taste, and quality of the fresh food in our stores.
Second, adding Evolution Fresh to our brand portfolio
fulfills our commitment to health and wellness, and not just
by bringing high-quality premium juices to our customers
but by extending the Evolution Fresh brand to an exciting
new store concept. With Evolution Fresh™ juice products
currently in more than 2,200 Starbucks® stores as well as
1,500 grocery locations, we are on our way toward
nationwide distribution.
Finally, with the acquisition of the high-end Teavana brand,
we’ll apply our competencies in retail operations and hot
and cold beverage creation to expand Teavana’s 300-store
footprint as we reinvent the tea category, in part by
bringing tea bars into Teavana stores and applying
learnings from our own Tazo brand. Long term, our intent
is to significantly grow Teavana’s global store presence,
transforming tea just as we have transformed coffee.
Our pace of innovation and creativity is rapid, and I assure
you that every move is highly strategic and thoughtfully
executed as we push for relevant, timely, and disciplined
reinvention in our stores, in consumer product channels,
and beyond.
Honoring Our Culture’s Values
and Guiding Principles
More than ever, today’s consumers have an interest in and
access to what companies stand for—their values. This is
nothing new to Starbucks. We’ve been building a company
with a conscience for four decades, and the reservoir of
trust we have earned is perhaps our most precious asset.
As we continue to execute our Blueprint for Profitable
Growth to become a truly performance-driven global
organization, we are committed to leading through the
lens of humanity, not just when it is convenient or easy.
This alone makes our partners incredibly proud.
At Starbucks our aspiration is nothing less than to be
among the most enduring brands of our time. I am
confident we are on that path, and I thank you for
joining us on this journey.
Warm regards,
Howard Schultz
chairman, president
and chief executive officer
2012, Mumbai, our first store in India
Lisi Wolf Photography