Turnover:N/A(estimate for 2012)
Starbucks Corporation (Starbucks) , incorporated on November 4, 1985, is a roaster, marketer and retailer of coffee operating in 60 countries. The Company operates in four segments: Americas; Europe, Middle East, and Africa (EMEA); China/Asia Pacific (CAP), and Channel Development. The Company purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a variety of fresh food items, through Company-operated stores. The Company also sells a variety of coffee and tea products and licenses its trademarks through other channels, such as licensed stores, grocery and national foodservice accounts. In addition to its flagship Starbucks brand, its portfolio also includes Tazo Tea, Seattle’s Best Coffee, Starbucks VIA Ready Brew, Starbucks Refreshers beverages, Evolution Fresh, La Boulange bakery brand, and the Verismo System by Starbucks.As of September 30, 2012, it operated 9,405 Company-operated stores and 8,661 licensed stores. On July 3, 2012, the Company acquired 100% interest in Bay Bread, LLC and its La Boulange bakery brand (La Boulange). On November 10, 2011, the Company acquired Evolution Fresh, Inc. In February 2013, Tata Coffee Ltd and the Company inaugurated a roasting and packaging plant in Karnataka.
The Americas, EMEA, and CAP segments include both Company-operated and licensed stores. Certain markets within EMEA and CAP operations are in the early stages of development than the Americas operations. The Americas and EMEA segments include foodservice accounts, primarily in Canada and the United Kingdom. The Company’s Americas segment also includes the retail and wholesale activities of Bay Bread, LLC (doing business as La Boulange). The Company’s Channel Development segment includes whole bean and ground coffees, Tazo teas, Starbucks VIA Ready Brew, Starbucks coffee and Tazo tea K-Cup portion packs, a variety of ready-to-drink beverages, such as Starbucks Refreshers beverages, and other branded products sold worldwide through channels, such as grocery stores, warehouse clubs, convenience stores, and United States foodservice accounts. Seattle’s Best Coffee is reported in Other along with Evolution Fresh, Digital Ventures and unallocated corporate expenses that pertain to corporate administrative functions that support its operating segments. During the fiscal year ended September 30, 2012 (fiscal 2012), total net revenues were Americas (75%), EMEA (9%), CAP (5%), and Channel Development (10%). The Other category consisted of approximately 1% of total net revenues.
Starbucks stores offer a choice of regular and decaffeinated coffee beverages, a selection of Italian-style espresso beverages, cold blended beverages, iced shaken refreshment beverages, a selection of Tazo teas, packaged roasted whole bean and ground coffees, a variety of Starbucks VIA Ready Brew soluble coffees, Starbucks coffee and Tazo tea K-Cup portion packs, Starbucks Refreshers beverages, juices and bottled water. Starbucks stores also offer an assortment of fresh food items, including focusing on nutritional value and flavor. Food items include pastries, prepared breakfast and lunch sandwiches, oatmeal and salads. A selection of beverage-making equipment and accessories are also sold in its stores.
In the Americas, 351 licensed stores were opened in fiscal 2012, and 81 licensed stores were closed in fiscal 2012. In EMEA, 139 licensed stores were opened in fiscal 2012, and 38 licensed stores were closed in fiscal 2012. In CAP, 354 licensed stores were opened in fiscal 2012, and 60 licensed stores were closed in fiscal 2012. In fiscal 2012, 279 Company-operated stores were opened in the Americas and 45 stores were closed in fiscal 2012. In EMEA, 27 Company-operated stores were opened in fiscal 2012, and 17 stores were closed in 2012. In CAP, 161 Company-operated stores were opened in 2012, and 7 stores were closed in fiscal 2012. The Company generates its revenues through Company-operated stores, licensed stores, consumer packaged goods (CPG) and foodservice operations. Revenue from Company-operated stores accounted for 79% of total net revenues in fiscal 2012.
Consumer packaged goods includes both domestic and international sales of packaged coffee and tea, as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse club and specialty retail stores. It also includes revenues from product sales to and licensing revenues from manufacturers that produce and market Starbucks and Seattle’s Best Coffee branded products through licensing agreements. Revenues from sales of consumer packaged goods comprised 8% of total net revenues in fiscal 2012.
Revenues from foodservice accounted 4% of total net revenues in fiscal 2012. The Company sells Starbucks and Seattle’s Best Coffee whole bean and ground coffees, a selection of 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. It also sells its Seattle’s Best Coffee through arrangements with national accounts.