Starbucks 2013 Annual Report Download - page 4

At Starbucks, we are proud that, in 2013, we continued to reward and invest in our full- and part-time
partners by helping them to realize more than $230 million in value from equity awards, and by retaining
industry-leading health care benets regardless of changes to the U.S. health care laws. Our efforts to serve
communities included a company-wide volunteer effort of more than 600,000 hours to help foster long-term
improvements in neighborhoods around the world. And in November 2013, we made the strategic business
decision to commit to hiring 10,000 veterans and military spouses over the next ve years, a talent base with
demonstrated leadership, discipline, and operational skills.
Taking these and other steps during 2013 reinforced once again that we can stand for something more
than just protability, while also delivering record performance. Indeed, that harmonious achievement is
threaded into the equity of the Starbucks brand, creating a reservoir of trust with our customers, partners,
and communities that is deeper than at any time in our history. In the years to come, we will—indeed we
must—continue to ask ourselves how we can use our scale for good.
A Core of Innovation and Operational Excellence
Our laser focus on disciplined execution and robust innovation was key to the success we experienced
across our business this past year.
Global performance. In scal 2013, Starbucks had more than 3 billion customer visits to our more than
19,000 stores in 62 countries. The Americas, our largest segment, produced revenue growth of 11 percent,
led by the strength of the U.S., where comparable store sales have grown 7 percent or higher for 15
consecutive quarters, which is particularly noteworthy given the size of the market. In addition, Canada
exceeded $1 billion in full-year revenues for the rst time ever, while our dynamic Latin America business
grew to nearly 700 stores, an 18 percent increase, with sales growth in all 12 markets.
The China and Asia Pacic segment, now comprising 13 countries including India and Vietnam, was once
again our fastest growing region, delivering a healthy 27 percent revenue growth in 2013. We expanded
our loyalty program to additional markets during the year, as well as recently opened our 1,000th stores in
both China and Japan, all of which added to our sales success in this segment. We also are pleased that
our EMEA segment—Europe, the Middle East, and Africa—is once again positively contributing to the
company’s performance as a result of ongoing efforts to transform this business.
Looking ahead, our plans to open 1,500 net new stores, paired with continued nancial discipline and
productivity improvements, will fuel momentum in every region.
Innovative concepts. Sustainable growth requires that we preserve the integrity of our core business as we
carefully expand our products and expertise into new channels, brands, and markets. Throughout 2013,
we once again delighted our customers with iconic beverages as well as new menu choices. Pumpkin Spice
Latte celebrated its 10th year, while new creations debuted, including Hazelnut Macchiato, a fantastic
single-origin coffee from Ethiopia, and a wonderful Starbucks Reserve® coffee from Colombia. And in our
Channel Development segment, revenues grew by 10 percent to $1.4 billion as we continued to provide
consumers more opportunities to enjoy their favorite Starbucks® products outside our retail stores.
Beyond our coffee core, the grand opening of Teavana® Fine Teas + Tea Bar, our reimagined Teavana® store
in New York City, with its unique tea bar concept, extended our Teavana retail platform while heralding our
plans to do for the $90 billion global tea industry what we have done for coffee. In juice, we exceeded
our aggressive growth plans for Evolution Fresh™ , which is now available in more than 8,000 locations,
while the opening of our state-of-the-art juicery in California will help us further increase our share of the
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