Starbucks 2013 Annual Report Download - page 16

8
Competition
Our primary competitors for coffee beverage sales are quick-service restaurants and specialty coffee shops. In almost all
markets in which we do business, there are numerous competitors in the specialty coffee beverage business. We believe that our
customers choose among specialty coffee retailers primarily on the basis of product quality, service and convenience, as well as
price. We continue to experience direct competition from large competitors in the US quick-service restaurant sector and the
US ready-to-drink coffee beverage market, in addition to well-established companies in many international markets. We also
compete with restaurants and other specialty retailers for prime retail locations and qualified personnel to operate both new and
existing stores.
Our coffee and tea products sold through our Channel Development segment compete directly against specialty coffees and teas
sold through grocery stores, warehouse clubs, specialty retailers, convenience stores, and US foodservice accounts and compete
indirectly against all other coffees and teas on the market.
Patents, Trademarks, Copyrights and Domain Names
Starbucks owns and has applied to register numerous trademarks and service marks in the US and in additional countries
throughout the world. Some of our trademarks, including Starbucks, the Starbucks logo, Tazo, Seattle’s Best Coffee, Teavana,
Frappuccino, Starbucks VIA, Evolution Fresh and La Boulange are of material importance. The duration of trademark
registrations varies from country to country. However, trademarks are generally valid and may be renewed indefinitely as long
as they are in use and/or their registrations are properly maintained.
We own numerous copyrights for items such as product packaging, promotional materials, in-store graphics and training
materials. We also hold patents on certain products, systems and designs. In addition, Starbucks has registered and maintains
numerous Internet domain names, including “Starbucks.com,” “Starbucks.net,” "Tazo.com," “Seattlesbest.com" and
“Teavana.com.”
Seasonality and Quarterly Results
Our business is subject to seasonal fluctuations, including fluctuations resulting from the holiday season in December. Our cash
flows from operations are considerably higher in the first fiscal quarter than the remainder of the year. This is largely driven by
cash received as Starbucks Cards are purchased and loaded during the holiday season. Since revenues from Starbucks Cards are
recognized upon redemption and not when purchased, seasonal fluctuations on the consolidated statements of earnings are
much less pronounced. Quarterly results are also affected by the timing of the opening of new stores and the closing of existing
stores. For these reasons, results for any quarter are not necessarily indicative of the results that may be achieved for the full
fiscal year.
Employees
Starbucks employed approximately 182,000 people worldwide as of September 29, 2013. In the US, Starbucks employed
approximately 137,000 people, with 129,000 in company-operated stores and the remainder in support facilities, store
development, and roasting and warehousing operations. Approximately 45,000 employees were employed outside of the US,
with 43,000 in company-operated stores and the remainder in regional support operations. The number of Starbucks employees
represented by unions is not significant. We believe our current relations with our employees are good.
Executive Officers of the Registrant
Name Age Position
Howard Schultz 60 chairman, president and chief executive officer
Cliff Burrows 54 group president, Americas and US, EMEA and Teavana
John Culver 53 group president, China & Asia Pacific, Channel Development
and Emerging Brands
Jeff Hansberry 49 president, China & Asia Pacific
Troy Alstead 50 chief financial officer and group president, Global Business
Services
Lucy Lee Helm 56 executive vice president, general counsel and secretary
2013 10-K
Starbucks Corporation Form