Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee in 65 countries worldwide. The company purchases and roasts coffees that it sells, along with handcrafted coffee, tea, and other beverages, as well as various fresh food items, through company-operated stores. It also sells various coffee and tea products, and licenses its trademarks through other channels, such as licensed stores, grocery, and national foodservice accounts. In addition to the company’s primary Starbucks Coffee brand, it sells goods and services under various brands, such as Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, and Ethos. Segments The company has four segments: Americas, which is inclusive of the U.S., Canada, and Latin America; Europe, the Middle East, and Africa (EMEA); China/the Asia Pacific (CAP); and Channel Development. The company also has various non-reportable operating segments, including Teavana, Seattle's Best Coffee, Evolution Fresh, and its Digital Ventures business, which are combined and referred to as All Other Segments. The company’s Americas, EMEA, and CAP segments include both company-operated and licensed stores. The Americas and EMEA segments also include certain foodservice accounts, primarily in Canada and the U.K. The company’s Americas segment also includes its La Boulange retail stores. The company’s Channel Development segment includes roasted whole bean and ground coffees; premium Tazo teas; Starbucks- and Tazo-branded single-serve products; various ready-to-drink beverages, such as Frappuccino beverages; Starbucks Doubleshot espresso drinks; Starbucks Refreshers beverages; and other branded products sold worldwide through channels, such as grocery stores, warehouse clubs, specialty retailers, convenience stores, and the U.S. foodservice accounts. Company-operated Stores Starbucks company-operated stores are located in high-traffic, high-visibility locations. The company’s ability to vary the size and format of its stores allows the company to locate them in or near various settings, including downtown and suburban retail centers, office buildings, university campuses, and in select rural and off-highway locations. The company is continuing the expansion of its various store formats, including Drive Thru stores, to provide a degree of access and convenience for its customers. Starbucks stores offer a choice of coffee and tea beverages, as well as other premium coffee, tea, and related products, including packaged roasted whole bean and ground coffees; various premium single-serve, and ready-to-drink coffee and tea products; juices; and bottled water. Starbucks stores also offer an assortment of fresh food offerings, including selections focusing on ingredients, nutritional value, and great flavor. A focused selection of beverage-making equipment and accessories are also sold in the company’s stores. To complement the in-store experience, the company-operated Starbucks stores in the U.S., Canada, and certain other international markets also provide customers free access to wireless Internet. Licensed Stores In the company’s licensed store operations, it leverages the expertise of its local partners. The company also sells certain equipment, such as coffee brewers and espresso machines, to its licensees for use in their operations. For Teavana and Seattle's Best Coffee, as well as Starbucks stores within certain markets, the company also uses traditional franchising. Consumer Packaged Goods The company’s consumer packaged goods include both domestic and international sales of packaged coffee and tea, as well as various ready-to-drink beverages, and single-serve coffee and tea products to grocery, warehouse clubs, and specialty retail stores. Foodservice The company sells Starbucks and Seattle’s Best Coffee roasted whole bean and ground coffees; a selection of premium Tazo teas; Starbucks VIA Ready Brew; and other coffee and tea related products to institutional foodservice companies that service business and industry, education, healthcare, office coffee distributors, hotels, restaurants, airlines, and other retailers. The company also sells its Seattle’s Best Coffee through arrangements with national accounts. The majority of the sales in this channel come through national broadline distribution networks with SYSCO Corporation, US Foodservice, and other distributors. Strategy The company’s strategy for expanding its global retail business is to increase its market share in a disciplined manner, by selectively opening additional stores in new and existing markets, as well as increasing sales in existing stores, to support its long-term strategic objective to maintain Starbucks standing as one of the majority recognized and respected brands in the world. Patents, Trademarks, Copyrights, and Domain Names The company owns and has applied to register various trademarks and service marks in the U.S. and in additional countries worldwide. Some of its trademarks, including Starbucks, the Starbucks logo, Tazo, Seattle’s Best Coffee, Teavana, Frappuccino, Starbucks VIA, Evolution Fresh, and La Boulange, are of material importance. In addition, the company has registered and maintains various Internet domain names, including Starbucks.com, Starbucks.net, Tazo.com, Seattlesbest.com, and Teavana.com. Seasonality The company’s 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, the company’s cash flows from operations are considerably higher in the first fiscal quarter than the remainder of the year (year ending September 2014). This is primarily driven by cash received as Starbucks Cards are issued to and loaded by customers during the holiday season. Quarterly results are also affected by the timing of the opening of new stores and the closing of existing stores. History Starbucks Corporation was founded in 1985.
starbucks corp (4337:Hong Kong)
2401 Utah Avenue South
Seattle, WA 98134
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