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8 Starbucks Corporation 2014 Form 10-K
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.
Excluding the impact of a $2.8 billion cash payment in the first quarter of fiscal 2014 related to the Kraft arbitration matter, 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 issued to and loaded by customers during the holiday season. Since revenues
from Starbucks Cards are recognized upon redemption and not when purchased, the impact of seasonal fluctuations on the
consolidated statements of earnings is 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 191,000 people worldwide as of September 28, 2014. In the US, Starbucks employed
approximately 141,000 people, with approximately 133,000 in company-operated stores and the remainder in support facilities,
store development, and roasting, manufacturing, warehousing and distribution operations. Approximately 50,000 employees
were employed outside of the US, with approximately 47,000 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 61 chairman, president and chief executive officer
Troy Alstead 51 chief operating officer
Cliff Burrows 55 group president, US, Americas and Teavana
John Culver 54 group president, China, Asia Pacific, Channel Development and
Emerging Brands
Scott Maw 47 executive vice president, chief financial officer
Lucy Lee Helm 57 executive vice president, general counsel and secretary