Starbucks Annual Shareholders Meeting Spotlights Record Performance Driven Through the Lens of Humanity

  Starbucks Annual Shareholders Meeting Spotlights Record Performance Driven
  Through the Lens of Humanity

 - Reinforces Ongoing Investments in Starbucks 200,000 Partners (Employees),
 including $250 Million in Healthcare Benefits and $234 Million in Bean Stock
                                in Fiscal 2013

  - Reaffirms Long-Term Growth Targets, Aiming to Double Market Cap to $100
                                   Billion

    - Announces Plans to Reinvent $90 Billion Global Tea Category Ripe for
                                  Innovation

Business Wire

SEATTLE -- March 19, 2014

Howard Schultz, chairman, president and ceo of Starbucks Coffee Company
(NASDAQ:SBUX), opened the company’s Annual Meeting of Shareholders by
showcasing how Starbucks 200,000 partners (employees) are leveraging the
company’s unique combination of physical and digital assets to deliver
long-term global growth through the lens of humanity.

“We’re still in the early stages of the growth and development of Starbucks,
we’re delivering record profits and revenue, sharing our success with our
partners and heading towards and past a $100 billion market cap,” said
Schultz. “No other brick-and-mortar retailer matches our size and growth
profile nor the relevancy and strength of the Starbucks brand. Together we’re
building one of the world’s most trusted, admired and enduring brands, and
redefining the role of a public company while we do it. There has never been a
more exciting time to be a Starbucks partner and shareholder.”

Delivering Record Performance through the Lens of Humanity

Legendary American television writer and producer Norman Lear kicked-off the
meeting by introducing the Playing For Change Band, whose third album will be
available in select Starbucks® stores in June. Schultz then highlighted the
company’s significant achievements over the six years since Starbucks returned
from the height of the cataclysmic financial crisis in November 2008 following
the implementation of the company’s 2008 Transformation Agenda and 2011
Blueprint for Profitable Growth, including:

  *Stock price growth of 948 percent;
  *Market cap expansion from $5 billion to $57 billion;
  *A more than ten-fold increase in total shareholder return; and
  *Serving more than 70 million customers per week in more than 20,000 stores
    in 64 countries.

Schultz and Starbucks chief operating officer Troy Alstead also highlighted
the company’s significant accomplishments since last year’s meeting,
including:

  *Record revenues of $14.9 billion (12 percent growth) and record earnings
    per share of $2.26^1 (26 percent growth) in fiscal 2013;
  *$2.5 billion^2 in net operating income (23 percent growth) in fiscal 2013;
  *55 percent total shareholder return in fiscal 2013, following a 38 percent
    return in fiscal 2012 and a 46 percent return in fiscal 2011;
  *Four years of seven percent or greater global comp growth; and
  *$1.2 billion in cash returned to shareholders in the form of dividends and
    share repurchases.

With $15 billion in revenue and an average sale of $5, Schultz emphasized the
importance of the unique relationship Starbucks partners have built with
customers around the world, and attributed the company’s success to partners’
contributions.

“The equity of the Starbucks brand has been built by the experience, which
comes to life through our partners and the relationships they have with our
customers,” Schultz said. “At a time when many companies are cutting benefits,
we are continuing to invest in our most important assets: our people.”

Last year Starbucks invested $250 million in healthcare benefits for eligible
full and part-timers, shared $234 million in pre-tax stock gains with
partners, and matched $50 million in 401(k) contributions. Since the company
started offering equity to partners in 1991, it has shared more than $1
billion in value in the form of stock with partners at every level of the
company.

Schultz also highlighted how the company is redefining the role and
responsibility of a public company in response to critical societal
challenges, citing several examples:

  *Create Jobs for USA: In 2011 amid greater than nine percent unemployment
    rate, Starbucks collaborated with the non-profit Opportunity Finance
    Network to launch the Create Jobs for USA program, which funds loans to
    small businesses who face challenges getting credit. The effort has raised
    $15 million, which has been leveraged to deliver $105 million in loans and
    create or retain more than 5,000 jobs over the past several years.
  *Come Together: Last October in the middle of the 16-day federal government
    shutdown which cost the country $2 billion in lost productivity and more
    than 120,000 private sector jobs, Starbucks launched a nationwide petition
    in its more than 7,000 company-operated U.S. stores urging the government
    to re-open, pay its debts on time and reach a long-term, bipartisan budget
    deal by the end of the year. In less than a week, the company collected
    and delivered nearly two million signatures to the U.S. Congress and the
    White House.
  *Veterans and Military Families: More than one million service members will
    transition back to civilian life after a decade of war over the next
    several years, facing an unemployment rate that is more than double the
    national average despite having valuable skills and directly transferable
    experience that can benefit many of the nation’s top-performing companies
    and non-profit organizations. Schultz reiterated Starbucks commitment to
    hire 10,000 veterans and military spouses by the end of 2018 and to open
    five community stores that will make a contribution for every transaction
    to non-profit organizations that support veterans entering the civilian
    workforce and spouses of active-duty military personnel. He also announced
    that the company is making good on its commitment by hiring hundreds of
    veterans already, investing in the company’s recruitment and retention
    programs for veterans and military spouses, and by opening two community
    stores serving military communities in Lakewood, Washington and San
    Antonio, Texas.

Record Starbucks Card and Loyalty Growth, New Mobile App

Starbucks chief digital officer Adam Brotman announced the release of an
updated Starbucks mobile app for iPhone®, which will extend the company’s
leadership in mobile payment and allow customers to recognize Starbucks
partners with a tip directly from the Starbucks app for iPhone® starting today
in the U.S. Mobile payment now represents 14 percent of all in-store
transactions in the U.S. More than 25 percent of all transactions are made by
My Starbucks Rewards^TM loyalty members.

Brotman also emphasized record Starbucks Card growth with an estimated 1 in 8
American adults receiving a Starbucks Card this past holiday season, which
translated to 1.5 million new customers registering their Starbucks Card and
joining the My Starbucks Rewards^TM loyalty program for the first time.
Starbucks now has more than 8 million My Starbucks Rewards^TM members in the
North America alone. Globally, Starbucks Cards are available in more than 28
countries, and more than $18 billion has been loaded onto Starbucks Cards
since the start of the program in 2001.

Brand Continues to Resonate Around the Globe

Avani Davda, ceo, Tata Starbucks Limited for India, and Belinda Wong,
president, Starbucks China, shared how their respective markets continue to
represent significant long-term growth potential for the company.

Wong shared that China today has more than 1,100 stores, across 68 cities and
nearly 20,000 partners. Continuing on pace to reach 1,500 stores in 2015, the
team is focused on elevating the Starbucks Experience through unique,
market-level innovation, while building the brand holistically.

Davda highlighted that India today has 40 stores in 4 cities, with nearly
1,000 partners. The fastest growing market in Starbucks history, the team is
focused on delivering a Starbucks Experience that resonates with India
customers and engages partners.

Building a different kind of company, both are focused on developing future
leaders for their markets through training and education investments for
partners and defining unique, locally relevant ways to invest in their coffee
growing communities of Yunnan, China and Coorg, South India.

Celebrating Coffee at Our Core, Hacienda Alsacia and the Evolution of
Starbucks Reserve® Coffees

Last year, Starbucks announced the acquisition of Hacienda Alsacia, a
240-hectare coffee farm in Costa Rica that is now acting as a global agronomy
and research center. The work on this farm is expanding the company’s
comprehensive approach to ethical sourcing as part of its commitment and
investment in supporting long-term, sustainable approaches to farming that
will benefit the broader specialty coffee industry.

Schultz recounted his experience visiting the farm during its first harvest
earlier this year. The working farm is actively refining Starbucks Coffee and
Farmer Equity (C.A.F.E.) Practices model and responsible growing practices,
housing a nursery of more than 160,000 hybrid seedlings. Its research
represents an extension of Starbucks more than ten year history of agronomy in
collaboration with leading industry organizations to help farmers improve
productivity and coffee quality around the world. All of this insight is
supporting the diverse, complex ecosystem of farmers, helping to support their
livelihoods and to produce high-quality arabica coffee for the specialty
market.

Schultz celebrated this rich diversity by recognizing the Starbucks Reserve®
program, which makes some of Starbucks® rarest small batch coffee available to
customers by the half-pound or cup with the company’s patented Clover® brewing
system. In the coming year, Schultz announced the company will further evolve
the Starbucks Reserve® program with new packaging and offerings, bringing the
purest expression of an exquisite cup of coffee to customers around the world.

Doing for Tea What Starbucks Did for Coffee by Reinventing the $90 Billion
Global Tea Category

Schultz called the $90 billion global tea category “ripe for innovation” and
showcased the company’s ambition to do with tea what it has done with coffee.
One year following Starbucks largest acquisition to date, Schultz highlighted
how the company is growing, expanding, and reinventing the Teavana brand and
customer experience. Since the acquisition, Starbucks has opened nearly 40 new
mall-based stores and announced plans to open more than 20 additional stores
through the rest of fiscal 2014. Schultz also announced plans to expand the
company’s reimagined Teavana® Fine Teas + Tea Bar concepts to Chicago, Los
Angeles and additional locations in New York City later this year. The company
opened two of the concepts last fall in New York and Seattle, featuring
handcrafted tea beverages, premium loose leaf teas, tea-inspired food
offerings and beautiful tea merchandise.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing
and roasting high-quality arabica coffee. Today, with stores around the globe,
the company is the premier roaster and retailer of specialty coffee in the
world. Through our unwavering commitment to excellence and our guiding
principles, we bring the unique Starbucks Experience to life for every
customer through every cup. To share in the experience, please visit us in our
stores or online at news.starbucks.com.

Forward-Looking Statements

This release contains forward-looking statements relating to certain company
initiatives, strategies and plans, as well as trends in or expectations
regarding our growth and growth opportunities, market capitalization, store
openings, tea innovation and the strength, health and potential of our
business, operations and brand. These forward-looking statements are based on
currently available operating, financial and competitive information and are
subject to a number of significant risks and uncertainties.Actual future
results may differ materially depending on a variety of factors including, but
not limited to, coffee, dairy and other raw material prices and availability,
costs associated with, and the successful execution of, the company's
initiatives, strategies and plans, the acceptance of the company's products by
our customers, fluctuations in U.S. and international economies and
currencies, the impact of competition, the effect of legal proceedings, and
other risks detailed in the company filings with the Securities and Exchange
Commission, including the “Risk Factors” section of Starbucks Annual Report on
Form 10-K for the fiscal year ended September 29, 2013.The company assumes no
obligation to update any of these forward-looking statements.

^1 Non-GAAP. FY13 GAAP EPS of $0.01 includes a $2.25 per share litigation
charge resulting from the conclusion of the arbitration with Kraft Foods
Global, Inc.

^2 Non-GAAP. FY13 GAAP operating loss of $325 million includes a pre-tax
charge of $2,784.1 million resulting from the conclusion of the arbitration
with Kraft Foods Global, Inc.

Contact:

Starbucks Coffee Company
Media:
Jim Olson, 206-318-7100
press@starbucks.com
or
Investor Relations:
JoAnn DeGrande / Greg Smith, 206-318-7118
investorrelations@starbucks.com
 
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