Mar-22-2012

Schultz Transforming Starbucks Into Supermarket Supplier: Retail

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The world's biggest coffee chain has been quietly rolling out canned "refreshers" energy drinks to U.S. grocery stores and also plans to sell made-to-order versions of low-calorie, fruit-flavored drinks later this year in U.S. cafes, as well as 15 international markets. The introduction is part of Starbucks' strategy to increase sales and profits by introducing new products that set it apart from rivals such as McDonald's Corp. That plan also includes expanding into new drink categories - such as instant coffee and refrigerated fruit and vegetable juices - as well as increasing product distribution to an ever-growing web of retail outlets. "We believe this is another coffee innovation that will differentiate us," Annie Young-Scrivner, Starbucks' global chief marketing officer, told Reuters. She said refreshers target the "light energy" portion of the $8 billion U.S. energy drink market. The drinks have about one-third less caffeine than brewed coffee and she expects that they will bolster business in the afternoon, when traffic to many coffee chains is slow. [1] Starbucks Corp. ( NASDAQ:SBUX ) is going up against the likes of Red Bull and Monster as it enters the $8 billion U.S. energy drink market with the introduction of a beverage that combines real fruit juice and green coffee extract. The world's biggest coffee chain announced the plans Wednesday at its annual shareholders meeting. The company has already rolled out the canned version of the low-calorie fruit drink, known as Starbucks Refreshers, in some U.S. supermarkets and has plans to sell the beverage in its U.S. cafes as well as in 15 countries worldwide. [2] Starbucks Corp. outlined its planned entry into the $8 billion energy drink market with a beverage that combines fruit juice and green coffee extract called Starbucks Refreshers, which will be sold at U.S. supermarkets. The move is part of initiatives outlined by the global coffee giant at its annual shareholder meeting Wednesday in Seattle. [3]

SEATTLE, March 21 (Reuters) - Starbucks Corp said on Wednesday it would spend $180 million on U.S. factories, creating 150 manufacturing jobs, and that it would get into the $8 billion U.S. energy drink market with a new product. The company also said that this summer it would begin selling coffee mugs made at a once-dormant factory in Ohio. [4] Starbucks is expanding into the fast-growing energy drink category and plans to add manufacturing jobs in the U.S., the world's biggest coffee chain said yesterday. Starbucks' new line of "Refreshers" beverages targets the $8 billion U.S. energy drink market that includes products such as Red Bull and Rockstar. [5] Starbucks returned to profit growth in 2010 after a two-year restructuring that involved slashing costs and closing nearly 1,000 cafes around the world. Starbucks' new line of "Refreshers" beverages targets the $8 billion U.S. energy drink market that includes products such as Red Bull and Rockstar. [6]

"Augusta and Sandy Run are important communities for our company. Both have an abundance of skilled workers, a great quality of life, convenient access to transportation that is critical to our business and strong support from local and state leaders. We're proud to be part of these communities and to be creating American manufacturing jobs during such challenging economic times." The $172 million facility is expected to open in January 2014, with construction starting this spring. It will prepare and package ingredients and finished products for most of the company's soluble-based beverages for all of North America and parts of Europe. The Sandy Run roasting plant, which opened in 2009, will invest $7 million in a packaging line by the end of this year. This expansion will create an estimated six new jobs, adding to the more than 830 partners (employees) that Starbucks already employs at its four roasting plants in the U.S. In addition to Sandy Run, Starbucks also has roasting plants in Kent, Wash., York, Pa., and Carson Valley, Nev. Starbucks U.S. manufacturing expansion exemplifies the company's ongoing commitment to help accelerate job growth both within Starbucks and in the communities it serves. In Fiscal 2012, with the addition of nearly 300 net new stores (company owned and licensed) and the remodeling of 1,700 existing cafes, more than 5,000 direct and indirect net new jobs are being created in the U.S. this year. [7] "Starbucks has long believed that there is a strong relationship between our success and the strength and vitality of the communities in which we do business," said Howard Schultz, CEO. "Augusta and Sandy Run are important communities for our company. Both have an abundance of skilled workers, a great quality of life, convenient access to transportation that is critical to our business and strong support from local and state leaders. We're proud to be part of these communities and to be creating American manufacturing jobs during such challenging economic times." The new Augusta plant will be Starbucks first company-owned and -operated facility in the world to produce soluble products, such as Starbucks VIA Ready Brew and the ingredients for Frappuccino and Starbucks ready-to-drink beverages. In addition to building the new soluble plant, Starbucks will add packaging capacity at its roasting plant in South Carolina. [8]

Simply put, the value of your company is driven by your company's values." The company announced it will invest nearly $180 million in expanding manufacturing capacity in the Southeastern U.S. by building a fifth U.S. plant in Augusta, Ga. and expanding an existing facility in Sandy Run, S.C. These investments are included in Starbucks Fiscal 2012 capital expenditure targets previously disclosed. The new Augusta plant will be Starbucks first company-owned and -operated facility in the world to produce soluble products, such as Starbucks VIA® Ready Brew and the ingredients for Frappuccino® and Starbucks® ready-to-drink (RTD) beverages. In addition to building the new soluble plant, Starbucks will add packaging capacity at its roasting plant in South Carolina. [9] • New manufacturing plants: Starbucks chairman Howard Schultz told the shareholders that the company will invest about $180 million to expand its manufacturing capacity in the United States. Starbucks is planning to build its fifth manufacturing plant, in Augusta, Ga., as a LEED-certified plant that will produce Starbucks VIA Ready Brew products and ingredients for Frappuccino and other ready-to-drink products. [10]

Starbucks expects to create more than 140 direct jobs, as well as hundreds of indirect jobs associated with construction, transportation, and supply chain activities. The new Augusta plant, Starbucks fifth manufacturing facility in the United States, will be the company's first -owned and operated facility in the world to produce soluble products, such as its VIA® Ready Brew and ingredients for Frappuccino® and many of Starbucks ready-to-drink (RTD) beverages. Once fully operational, this manufacturing plant will prepare and package ingredients and finished products for most of the company's soluble-based beverages for all of North America and parts of Europe. [11]

The plant, in Augusta, Ga., will employ 140 and open in early 2014. Construction, which will also generate construction and transportation jobs, is slated to start this spring. The move disclosed Wednesday comes as Starbucks Corp. looks to expand its consumer products offerings found on grocery store shelves, such as ready-to-serve drinks, Starbucks ice-cream and instant coffee. [12] ATLANTA -- Coffee giant Starbucks has brewed up a strong cup of job creation in Augusta, Ga. Starbucks Coffee Co. Starbucks Coffee Co.Latest from The Business JournalsFollow this company will spend $172 million to build a manufacturing plant in Augusta -- the company's fifth overall and first in the Peach State. [13] Starbucks -- which has started a fund to spur U.S. job creation -- also announced plans to create roughly 150 jobs by investing nearly $180 million to build a new factory in Augusta, Ga., and to expand an existing roasting plant in Sandy Run, S.C., to add packaging capability. [6] LEED certified building will be capable of producing up to 4,000 metric tons per year and add 140 new jobs, the company said. The Sandy Run roasting plant, which opened in 2009, will invest $7 million in a packaging line by the end of this year. This expansion will create an estimated six new jobs, adding to the more than 830 partners (employees) that Starbucks already employs at its four roasting plants in the U.S. In addition to Sandy Run, Starbucks also has roasting plants in Kent, Wash., York, Pa., and Carson Valley, Nev. [8]

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The interactive report is now available online at www.starbucks.com/GRreport. As proof of its global leadership position in the nearly $8 billion global premium single cup coffee category, Starbucks earlier this month announced its own signature Verismo® system by Starbucks, the first at-home premium single cup machine that meets Starbucks commitment to taste and quality. In addition to its signature Starbucks VIA® Ready Brew, Starbucks® K-Cup® packs offering, and now Verismo™ by Starbucks platform, Starbucks president of Channel Development, Jeff Hansberry, announced today that Starbucks has expanded its strong partnership with Green Mountain Coffee Roasters (GMCR) to offer Starbucks® coffee and Tazo® tea for GMCR's Keurig® Vue™ Brewer. Earlier this week, the company launched its manifestation of the Evolution Fresh brand with its first retail location. This introduction is the initial step in Starbucks offering of a unique, super-premium juice experience and provides Starbucks a strong platform to reinvent the $3.4 billion super-premium cold-crafted juice category. Starbucks unveiled its new Seattle's Best Coffee concept store design on Monday outside of Chicago, offering customers a new way to experience the Seattle's Best Coffee brand. [9] However, Starbucks said it would also expand its partnership withGreen Mountain Coffee Roasters Inc.to make and sell Starbucks-branded Vue coffee packs to use in Green Mountain's new single-cup Keurig Vue Brewer. In January, Starbucks said it would begin testing beer and wine in its shops, including a cluster in Southern California. The company opened its first Evolution Fresh juice store in Washington state as it attempts to squeeze into the health foods market and the $3.4 billion cold-crafted juice category. [14]

Last year, Starbucks cut a deal with Green Mountain Coffee Roasters Inc. (GMCR) to sell capsules for Green Mountain’s Keurig single-serve coffee makers. It then paid $30 million for juicemaker Evolution Fresh Inc. and has plans to sell the flash- pasteurized juice in grocery stores. [15]

The 12-fluid-ounce, 60-calorie drinks are made with fruit juice infused with extract of unroasted green coffee beans, and are currently available in some grocery stores. The energy drink category isn't the only market Starbucks is trying to muscle its way into, as on Monday it opened the first in what's hoped to be a series of Evolution Fresh juice stores in Bellevue, Washington, a suburb of Seattle, in an effort to infiltrate the health food field. [16] Starbucks Refreshers contain real fruit juice and a boost of natural energy from a new source, green coffee extract. By the end of April, customers will find the ready-to-drink lightly sparkling version of Starbucks Refreshers beverages at more than 160,000 points of distribution where they buy groceries in the U.S. The company said it also plans to offer handcrafted Starbucks Refreshers beverages to stores in the U.S. and select international markets this summer. [17] Starbucks Refreshers™ beverages are a breakthrough innovation that deliver thirst-quenching refreshment from real fruit juice and a boost of natural energy from a new source, green coffee extract. By the end of April, customers will find the ready-to-drink lightly sparkling version of Starbucks Refreshers™ beverages at more than 160,000 points of distribution where they buy groceries in the U.S. The company said it also plans to offer handcrafted Starbucks Refreshers™ beverages to stores in the U.S. and select international markets this summer. Starbucks leadership also discussed the tremendous opportunity for international growth not only in current markets but also in new and emerging countries such as India and Brazil. [9]

Starbucks Refreshers™ beverages are a breakthrough innovation that deliver thirst-quenching refreshment from real fruit juice and a boost of natural energy from a new source, green coffee extract. The new beverage platform gives the company an opportunity to introduce a completely new offering globally - yet another proof point of how Starbucks is executing its growth strategy. [18]

SEATTLE( BUSINESS WIRE ) Starbucks Coffee Company (NASDAQ: SBUX) today announced plans for a global entry into the energy category with Starbucks Refreshers™ beverages - making Starbucks the first to bring green coffee extract innovation to customers on a global scale. [18] The fruit-flavored drinks are made with a flavorless extract made from unroasted green coffee and pack less caffeine kick than coffee drinks made from roasted beans. Earlier this month Starbucks announced plans to roll out its own single-cup home brewer called Verismo, ending more than a year of speculation that it would jump into the $8 billion global business with both feet. [19]

The new drink is part of Starbucks' strategy to boost sales and profits by introducing innovative products that differentiate it from competitors, which include Caribou Coffee ( NASDAQ:CBOU ) and McDonald's ( NYSE:MCD ). The plan also includes exploring new beverage categories, such as instant coffee and refrigerated fruit and vegetable juices, and increasing product distribution to more retail outlets. Starbucks' global chief of marketing executive Annie Young-Scrivner said she expects the drinks will increase afternoon business, when many coffee chains experience a decrease in traffic, Reuters reported. This comes on the heels of the company's recent move to begin selling beer, wine and a variety of premium foods in some of its cafes in an attempt to lure evening customers. [2] Consumer products were a standout, with revenue jumping 72 percent. Morningstar analyst R.J. Hottovy said the company has done a good job turning its business around: shuttering unprofitable stores, streamlining its supply chain and getting into higher-margin businesses like products sold at grocery stores and single-serve coffee. "It's a cliche, but they're firing on all cylinders," he said. In addition to expanding its Via and grocery store coffee lines, Starbucks has also recently announced plans for expanding internationally, opening juice bars and introducing Verismo single-cup espresso and coffee machines. [12]

In the coming weeks we plan to introduce new corporate partners that will support the effort with equity donations, awareness campaigns, and consumer outreach." In addition to donating at Starbucks company-owned stores across the U.S. or online at www.createjobsforusa.org, concerned citizens starting this week may now also support Create Jobs for USA by texting a donation to 80888JOBS. This April, Starbucks will kick off its second annual Global Month of Service where partners, customers and community organizations will be mobilized to make a positive impact. Across the globe, Starbucks partners will lead community service projects focused on the individual needs of the neighborhoods where they live and work. Throughout the year, Starbucks partners and customers dedicate their time and energy to creating positive change in their neighborhoods, and during the Global Month of Service that commitment is amplified and celebrated. [7] The 2011 report shows significant strides on the ambitious goals Starbucks set for itself in 2008. In a single year Starbucks more than doubled its community service – to 442,000 hours served as part of Global Month of Service – and more than tripled the availability of in-store recycling – now in more than 1,000 stores in the U.S. and Canada. [20]

SEATTLE -- At its Annual Meeting of Shareholders, Starbucks Coffee Company (NASDAQ: SBUX) today announced the availability of its 11th annual Global Responsibility Report, outlining fiscal year 2011 performance in its effort to help communities thrive through ethical sourcing, environmental stewardship and community engagement. [20] Starbucks Coffee Company (NASDAQ: SBUX) today held its Annual Meeting of Shareholders in Seattle, where Howard Schultz, chairman, president and ceo attributed the company's success to its long-standing commitment to helping communities thrive wherever around the world it does business. [7]

At Wednesday's annual shareholders meeting, CEO Howard Schultz is expected to crystallize the connection between Starbucks' profits and the societal role it plays. "The value of your company is driven by your company's values," he plans to say, according to a column by Joe Nocera in The New York Times. Nocera contrasted the much vilified Goldman Sachs with Starbucks' Schultz, who, he says, "has been practicing a kind of moral capitalism." Whatever their origins, companies assume a socially responsible posture in order to sell products, said John Boatright, professor of business ethics at Loyola University Chicago. "The key question is, how do we sell high-priced coffee in a crowded market?" he said. [21] Company officials revealed the new product, along with a number of other initiatives, at Starbucks' annual shareholder meeting in Seattle. Those plans include continued expansion of the company's single-cup business, a program inviting consumers to direct Starbucks' charitable funding, and plans to build a new manufacturing plant in Georgia. [10]

SEATTLE, March 21 (Reuters) - Starbucks Corp is expanding into the fast-growing energy drink category and plans to add manufacturing jobs in the United States, the world's biggest coffee chain said at its annual shareholder meeting in Seattle on Wednesday. [22] Eager to dip its influential -- if not omnipresent -- cup into the $8 billion energy drink category, the world's largest coffee chain announced at its annual meeting in Seattle that it plans to roll out in April a new line of "natural" energy drinks, Starbucks Refreshers, to be sold at grocers, convenience stores and Starbucks stores. [23]

If you’re a Starbucks shareholder, chances are you’re a little anxious about the latest news from the company’s shareholder meetingThe java giant said it will enter the $8B energy drink market with “Refreshers”, a new line of beverages that combine fruit juice and green coffee extract.Canned version of the drink will sell for $1.99; cafe versions are said to sell for $2.75-3.25The developments come in sharp contrast to what investors thought Starbucks was planning – a greater emphasis on its core competency -coffee. [24] The introduction of the Starbucks Refreshers beverages brand platform is an evolution of the coffee market using a new breakthrough coffee experience using green coffee extract, resulting in thirst-quenching, delicious, low calorie refreshment with a boost of natural energy from caffeine and fruit juice. [25]

Starbucks Refreshers, which will be added to the coffeehouse chain's consumer packaged goods, or CPG, lineup in grocery and retail stores, are a blend of fruit juices with green coffee extract, offering what the company described as a "mild and fresh flavor," along with naturally occurring caffeine. [10]

"The launch of Starbucks Refreshers beverages continues to support our growth strategy to innovate with new products, enter new categories and expand into new channels of distribution," Young-Scrivner said in a statement. Last year, Starbucks acquired the Evolution Fresh juice brand, expanding its cold-pressed juice offerings in stores. The company this week launched its first unit of the juice concept with a three-daypart menu of healthful offerings, as well as bottled and tap juices. [10] The move comes at a time the company ( SBUX ) is barreling into the multibillion-dollar consumer product goods segment. Starbucks executives say sales from this emerging side of the business will someday match sales from its retail stores. Starbucks just opened its first Evolution Fresh juicery in Bellevue, Wash., with plans to roll it out at grocers nationally over the next year. [23]

The premium single-serve coffee category is small compared with the overall premium coffee category, but is growing rapidly. Starbucks also is expanding a test of beer and wine sales in its cafes this year and making its biggest push yet into the $50 billion health food sector. It opened the first store in its new Evolution Fresh juice bar chain near Seattle on Monday. That store serves fresh fruit and vegetable juices as well as meals. [19] Farmer Support: Starbucks provided $14.7 million to organizations that make loans to coffee farmers, working toward a goal of $20 million by 2015. Front-of-Store Recycling: Starbucks is now offering front-of-store recycling in 18% (more than 1,000) of stores in the U.S. in Canada – this represents a more than threefold improvement over the prior year. [20]

While the shares rose as much as 4.2 percent on the day after the Verismo announcement, the machine probably won’t generate profit until Starbucks’ fiscal 2013. Later this year, Starbucks will start selling 60-calorie energy drinks in U.S. stores. Called Refreshers, they are made with fruit juice and green-coffee extract. [15] Starbucks has even decided to serve alcohol in some locations. The coffee store chain has decide to chase Red Bull and all of the "five hour energy drink" companies with its own product. [26] Starbucks' new line of "Refreshers" beverages targets the US$8-billion energy drink market that includes products such as Red Bull and Rockstar. [27] The $8-billion energy drink market grew 16% last year. New products, such as Red Bull's Total Zero no-calorie beverage, are constantly flooding shelves along with competitors such as Monster. [14] At a shareholders meeting today, the Seattle caffeine giant revealed plans for what's being called a line of "Refreshers" beverages set to compete with current energy drinks like Red Bull. Since the $8 billion energy drink market swelled 16% last year, this sounds like a timely move. [16]

Annie Young-Scrivner, Starbucks global chief marketing officer, said the energy drink category is the fastest growing within CPG channels, at $8 billion in sales, up 16 percent over the previous year. [10]

Starbucks has spent the year trying on several new identities. This month, the company unveiled its Verismo at-home espresso and latte machine, trying to tap into a nearly $8-billion global market for single-cup coffee makers. [14] During the shareholder meeting, executives also said that Starbucks will be adding more than 140 jobs in a nearly $180-million effort to build a factory and expand an existing one in the South. The company also released its Global Responsibility Report, which illustrated initiatives that Starbucks said helped triple the amount of in-store recycling and boosted the practice of sustainable coffee sourcing. [14]

Last year, Starbucks launched the Create Jobs for USA program, a national campaign that raised more than $7 million in donations from guests and the company's contribution to finance community development financing agencies. [10] In the first three months of the Create Jobs for USA program, Starbucks and the Starbucks Foundation have raised more than $7 million in donations, which in turn has translated into $50 million in financing for community businesses. The program help support nearly 280 loans across 31 states, with the goal of extending to all 50 states by the end of this year. [8]

The jobs announced today and the jobs to be created in the months and years to come by Starbucks will have a major impact on our community. Starbucks and Augusta both represent quality, professionalism, responsibility and integrity. [11] The new, state-of-the-art facility is expected to offer employment opportunities in a range of highly-skilled positions. "Starbucks has long believed that there is a strong relationship between our success and the strength and vitality of the communities in which we do business," said Howard Schultz, Starbucks chairman, president and CEO. "With an abundance of skilled workers, a great quality of life, convenient access to transportation that is critical to our business and strong support from local and state leaders, Augusta is an ideal location for our newest manufacturing facility in the U.S. We're proud to be expanding our connection with the Augusta community and to be creating American manufacturing jobs during such challenging economic times." [11] At its shareholders' meeting in Seattle, Starbucks announced it will invest $180 million in expanding manufacturing capacity in the Southeas by building a fifth U.S. plant in Augusta, Ga. and expanding an existing facility in Sandy Run, S.C. [8] AUGUSTA, Ga. -- The Augusta Economic Development Authority announced today that Starbucks Coffee Company (NASDAQ: SBUX), the world's premier roaster and retailer of specialty coffee, is planning to invest $172 million in its first Georgia manufacturing operation in Augusta. [11]

The article's first example: the movement that led to Starbucks' decision to buy coffee beans from importers who pay above-market prices to small farmers. Bruce Herbert of Newground Social Investment in Seattle, which invested in Starbucks' initial public offering, remembers the battle to get Starbucks to improve its coffee-buying standards. "All they would say is, 'It's tremendously complex.' For several years, that was it," Herbert said. His organization and others exerted more pressure, and as a result Starbucks adopted stricter standards about coffee buying. "They're a lot more open and accountable and transparent than they used to be," said Herbert. He continues to push Starbucks for more, and on Wednesday will carry the shareholder proposal of another activist shareholder, John Harrington of California, to Starbucks' meeting. It encourages the company's board to create a committee on environmental sustainability. Starbucks recommends shareholders vote against the measure, saying it's not necessary. That's the same reasoning Starbucks uses for demanding arbitration and banning class-action lawsuits from its loyalty-card customers. In February, the nonprofit Public Citizen delivered more than 15,000 signatures to Starbucks' headquarters calling for those restrictions to be removed. [21]

The coffee chain owned by Starbucks began a pilot drive-thru program that focuses on car-friendly menu items in areas lacking premium coffee shops, Nation's Restaurant News reports. Seattle's Best has been increasing its reach with more products in grocery stores. [28] SEATTLE, Wash. (AP) -- Starbucks is building a new plant in Georgia that will make its Via instant coffee and ingredients for Frappucinos sold both in Starbucks outlets and in grocery stores. [29] Starbucks said the new Augusta plant will be Starbucks' first company-owned and -operated facility in the world to produce VIA instant coffee and ingredients for Frappuccino. [6]

The 110,000- to 160,000-square-foot plant will be on 100 acres in the Augusta Corporate Park. It will produce soluble products, such as VIA Ready Brew, ingredients for Frappuccino and many of Starbucks ready-to-drink beverages. Construction will start this spring with opening expected in January 2014. [13] The launch of Starbucks Refreshers™ beverages continues to support our growth strategy to innovate with new products, enter new categories, and expand into new channels of distribution." "The launch of new products such as Starbucks VIA® Ready Brew, Starbucks® Blonde Roast Coffees and customizable Frappuccino are great examples of how we continue to leverage our coffee expertise. [18] "We want to get a lot more into packaged products and expand ready-to-drink coffee and other drinks," Gibbons said. "This is a chance to control and streamline the supply chain." Starbucks is working to broaden its business as it faces growing competition from the likes of McDonald's Corp. and Dunkin' Brands Group Inc.' s Dunkin' Donuts chain. After facing consumers cutting back during the recession, its business has rebounded. In its most recent fiscal first quarter, net income rose 10 percent while revenue rose 16 percent to $3.44 billion, with growth across all of its business lines. [12] 91 percent of revenue comes from Starbucks cafes, and management should be careful not to “lose sight of what’s important,” Saleh said. “My concern would be that they get distracted from the real revenue and profit driver. Packaged coffees are also more affected by commodity costs than its cafe business; margin for that segment will narrow to about 25 percent this year primarily because of higher coffee bean prices, Chief Financial Officer Troy Alstead said at an investor conference on March 14. Schultz’s move into groceries is necessary, according to Bill Smead, portfolio manager at Seattle-based Smead Capital Management Inc., which holds about $3.6 million of Starbucks in its Smead Value Fund. The company’s real value and growth potential lies in its brand, he said. “They sell water, milk and coffee beans at boiling temperatures,” Smead said in an interview. [15] In 2009, Schultz introduced Via, a single-serve instant coffee that took 20 years to develop. At the time, some analysts said Via, which sells for about $10 for a 12-pack, was too expensive and might dilute the Starbucks brand. [15]

Will the diversification of Starbucks ( NASDAQ: SBUX ) ever end? It has entered the instant coffee arena with its Via brand. It sells fruit smoothies. It has begun to open its own Evolution Fresh juice bars. [26]

The manufacturing facility will make "Via Instant Coffee" and ingredients for frappuccinos sold in Starbucks outlets and grocery stores. Construction begins this spring. It's set to open in early 2014. [30] Starbucks is “no longer just a retail store business,” said Juhan, who rates the shares the equivalent of a buy. Starbucks has slowly yet steadily been moving into grocery stores since 1995, when it began selling ice cream in such flavors as java chip frappuccino and caramel macchiato. It has since added packaged coffee, bottled drinks and Tazo brand tea. [15]

Starbucks Coffee Co. said Wednesday it will debut a new line of caffeinated fruit drinks called Starbucks Refreshers, which will be available in cans and in customizable blends in the chain's coffeehouse locations. [10] Unlike the traditional process, the green coffee extract used in Starbucks Refreshers beverages is unroasted resulting in a beverage with a mild and fresh flavor while still retaining naturally occurring caffeine. Made with green coffee extract from 100% arabica beans, customers will be able to experience Starbucks Refreshers beverages in multiple formats, making it easy to re-energize wherever they are. [25] The company has launched something called Starbucks Refreshers, made with "green coffee extract." [31]

• Verismo: The single-cup category has been a growth opportunity for Starbucks, which has been selling K Cup packs in partnership with Green Mountain Coffee Roasters for use in Keurig brewers. Earlier this month, Starbucks said it had developed its own single-cup machines, known as the Verismo system, for which the chain will start selling pods of espresso and brewed coffee this fall. Throughout the month, customers can cast a vote for one of four organizations in their own community and funding, which comes from the Starbucks Foundation, will be distributed based on the number of votes. [10] Starbucks announced today that it has partnered with Green Mountain Coffee Roasters Inc. to create Vue coffee packs bearing the Starbucks name for use in Green Mountain's single cup Keurig Vue Brewer. Earlier in the month, Starbucks debuted its own Verismo espresso and latte machine for the home. That's not all, because Starbucks is also trying out selling beer and wine at some locations in Southern California. [16]

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If anyone was going to innovate in coffee while delivering on an untapped energy and refreshment need state, it would be Starbucks," said Annie Young-Scrivner, global chief marketing officer for Starbucks and president, Tazo Tea. [25] Renewable Energy: In 2010, Starbucks set a new goal to make 100% of the electricity used in global company-owned stores renewable energy equivalent by 2015. [32]

"International was viewed as a little bit riskier, especially when the economy was strong in the U.S., and that flipped a few years back," said Dan Geiman, an analyst at Seattle-based McAdams Wright Ragen. Starbucks has fewer than 7,000 stores in foreign countries, compared with 11,000 in the U.S. Of the 800 stores it plans to open this year, 600 will be in international markets. About a quarter of those will be in China, where the chain last fall opened its 500th store. "The economics in China are ridiculously good for Starbucks," said Sharon Zackfia, an analyst at William Blair & Co. Costs such as labor and rent are relatively low, making the company's profit margins for stores there its highest in the world, she said. [33] John Culver, president, Starbucks China and Asia Pacific, confirmed that by 2014 China will become Starbucks second largest market outside the U.S. and will exceed 1,500 stores by 2015. Next year, Japan will open its 1,000 th store and Korea will more than double in size to over 700 stores by 2016. Focus will also be given to accelerating growth across Indonesia and Thailand as part of its emerging market growth strategy. Starbucks said it also plans to continue to amplify its expanding international business through new store designs, targeted innovation, and disciplined growth. [7]

The 2011 report demonstrates significant strides toward the ambitious goals Starbucks set for itself in 2008. In a single year Starbucks more than doubled its community service - to 442,000 hours served - and more than tripled the availability of in-store recycling - now in more than 1,000 stores in the U.S. and Canada. [7]

Starbucks ultimately closed nearly 1,000 cafes worldwide and slashed tens of thousands of jobs. It spruced up remaining stores and lowered the cost of opening new ones, which is now happening at the more sober pace of 800 stores a year. It looked to impress Wall Street without boasting it was aiming for 40,000 locations. [33] Starbucks Chief Executive Howard Schultz has in the past year urged other CEOs to take a bigger role in the United States' economic revival and commit to creating jobs. [4] SEATTLE - In the four years since Howard Schultz swooped in to rescue it, Starbucks has grown up. [33] Elaine Thompson, AP Starbucks chairman and CEO Howard Schultz walks on stage to address the annual Starbucks shareholders meeting Wednesday, March 21, 2012, in Seattle. [12] Speaking at the company's annual shareholder meeting in Seattle on Wednesday, Schultz said Starbucks had decided to make the investment in the United States, even though it could have saved money by doing it in low-cost overseas markets. [19]

Starbucks Corp. (SBUX) is looking more and more like Kraft Foods Inc. (KFT) all the time. Since returning as chief executive officer in 2008, Howard Schultz has revived the company and is now guiding Starbucks well beyond its cafe roots. [15]

Augusta Mayor Deke Copenhaver said, "Starbucks is one of the top three recognizable brand names in the world. They are a quality company that works in conjunction with their local communities in many areas of support, including the creation of high skilled jobs for a highly technical process. It is a great day in Augusta with the announcement that the new Starbucks manufacturing facility will be located at the Augusta Corporate Park." [11] "Augusta and Sandy Run are important communities for our company. Both have an abundance of skilled workers, a great quality of life, convenient access to transportation that is critical to our business and strong support from local and state leaders. We're proud to be part of these communities and to be creating American manufacturing jobs during such challenging economic times." The $172 million facility is expected to open in January 2014, with construction starting this spring. [9]

The world's largest coffee chain, which recently started a fund to spur U.S. job creation, said it would build a factory in Augusta, Georgia, and expand an existing roasting plant in Sandy Run, South Carolina, to include packaging facilities. [4] AUGUSTA, Ga. - Starbucks is building a new Georgia plant that will create 140 direct jobs and hundreds of transportation and construction jobs. The first of its kind plant will be in Augusta. [30]

Building a new plant in the U.S. gives Starbucks more control over the process, said Peter Gibbons, executive vice president of global supply chain operations. [12] Water Conservation: Although in-store water consumption has decreased more than 17% since 2008, water use increased 5% in 2011 over the year before. While some of the increase in water consumption was due to higher beverage sales, we believe consumption was primarily driven by a change in the blender pitcher rinsing processes, and Starbucks is taking proactive steps to address these issues moving forward. "This year's report reflects our strong connection to the communities we serve," said Cecilia Carter, Starbucks vice president of Global Diversity Policy and Advocacy. [32]

Adding to the identity crisis, the Seatte giant told shareholders Wednesday it would add energy-drink producer to that list. At its annual shareholders meeting, Starbucks ]] Starbucks said it will expand into the rapidly expanding energy drink industry with a line of so-called "Refreshers" beverages in flavors such as raspberry pomegranate and orange melon. [14] Starbucks has introduced a line of "Refreshers" beverages to compete with energy drinks like Red Bull and Rockstar. [19]

Seriously, Gordon Ramsay, you do not need to get into all these lawsuits. The celebrity chef, right after suing a publicist for allegedly conspiring to hack his email, has decided to sue the owner of Rôtisserie Laurier BBQ for $2.25 million in lost. Man, Starbucks is really stepping up their game. Not only do they have that single-serving cups deal and the new juice bar brand, now they're expanding into the energy drink arena. [31] The plans mark the company's move into the $8 billion energy drink category. [10] The energy beverage category is worth about $8 billion, according to the company. [15]

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There's already an $8 billion market for single-cup coffee makers worldwide, and Starbucks is getting in on that action, too. [16] In 2011 Starbucks purchased the equivalent of 50%. Forest Carbon Programs: Continued work in coffee-growing communities in Chiapas, Mexico and Sumatra Indonesia through Starbucks partnership with Conservation International, demonstrating how coffee farmers can adapt to and address climate change while increasing their income. Recyclable Cup Solution: The Company is making progress toward its goal of developing comprehensive recycling solutions for paper and plastic cups by the end of 2012. [32] Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee in the world. [18]

The company's smallest division has long been a unit that sells coffee beans, bottled Frappuccino, coffee ice cream and other products in grocery stores -- a more recession-proof business because people never stop grocery shopping. The "laser" focus Schultz now talks about suggests a maturity from his earlier inclinations to take on every idea that came up. [33] The stock has climbed more than 50 percent over the last year. The company plans to keep growing by introducing new products that will put it one step ahead of rivals like Dunkin' Donuts Group Inc and McDonald's Corp. It also wants to sell more products outside its cafes. [4]

The company emphasized the importance of local relevance in products and other offerings, citing recent enhancements to the Starbucks Experience in Europe, the Middle East, Russia and Africa. [7] With today's announcement, Starbucks joins an outstanding corporate community in Augusta and Richmond County as a major manufacturer of quality products. [11] Starbucks will be the first tenant in the Augusta Corporate Park. Governor Nathan Deal said, "Starbucks is a name recognized the world over, so it gives us an incredible sense of accomplishment knowing that Augusta, Georgia is now one of the places this great company calls home," Deal said. "Georgia is indeed glad to welcome such a successful brand to our community of food processing manufacturers, and we look forward to a working partnership that creates opportunities for Starbucks future growth in Georgia." [11]

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By 2014, Starbucks said China will be the company's largest market outside the U.S. with more than 1,000 stores. [14] The clauses have been there since at least 2003, spokesman Jim Olson says, and have never been used, because all complaints are resolved before arbitration would be necessary. Another nonprofit, the National Gun Victims Action Council, recently called for a boycott of Starbucks for allowing people to carry guns in stores, including those in Washington. "Imagine if Starbucks was really a socially responsible company, what power they could bring to stop this senseless killing and to help effect sane gun laws," the group said this week in a news release, which said 2,000 people have signed up for the boycott in five weeks. [21]

"The release of this year's report at the Annual Meeting underscores our belief that the value of our company is directly connected to the values of our company," said Vivek Varma, Starbucks executive vice president of Public Affairs. "We believe it's critical that companies including Starbucks share the values of our customers and partners (employees) and demonstrate our commitment to those values in impactful ways that help our communities and planet thrive." [32] In the fiscal year ended Oct. 2, Starbucks' profit rose 32 percent to $1.25 billion, and the stock trades at all-time highs, above $50 a share. [33] Starbucks Corp. ( NASDAQ:SBUX ): SBUX shares recently traded at $53.81, up $0.08, or 0.15%. They have traded in a 52-week range of $33.72 to $53.83. [2]

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Available now, customers can discover an innovation in energizing refreshment with ready-to-drink Starbucks Refreshers beverages at select grocery locations in the U.S. At 60 calories per 12 fl. oz. can, ready-to-drink Starbucks Refreshers beverages are available in Raspberry Pomegranate, Strawberry Lemonade and Orange Melon, in lightly sparkling, ready-to-drink form. [25] Starbucks now concentrates on building international markets and improving sales in grocery stores -- areas that could yield enormous profits and that, until the recession, took a back seat to U.S. expansion. [33] Starbucks has also been adding new stores (300) in fiscal 2012 which created 5,000 direct and indirect new jobs. [8] Through the Create Jobs for USA Fund, 100% of donations from Starbucks customers goes quickly to community development financial institutions (CDFIs) to provide necessary financing to community businesses committed to creating and sustaining jobs. [7] In an effort to create economic growth in th e U.S, Starbucks teamed up with the Opportunity Finance Network teamed up to launch "Create Jobs for USA," a national campaign designed to help jumpstart the economy with a focus on job creation in many of America's most underserved communities. [8]

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Community Card: Vote.Give.Grow., will support a combination of national and local non-profit organizations including Opportunity Finance Network and DonorsChoose.org. In its effort to help communities thrive through ethical sourcing, environmental stewardship and community involvement, Starbucks also announced today the availability of its 11 th annual Global Responsibility Report, outlining Fiscal 2011 performance. [7] During Starbucks first Global Month of Service in 2011, nearly 60,000 volunteers participated from across 30 countries on four continents - resulting in more than 155,000 hours of community service. Each week throughout April, customers can cast a vote for one of four non-profit organizations in their own community. [7]

The recruitment of Starbucks to Augusta was led by the Augusta Economic Development Authority and the Georgia Department of Economic Development (GDEcD). GDEcD Global Commerce division director Tom Croteau, AEDA's Sprouse, and Project Manager Robbie Bennett managed this business opportunity on behalf of the county and the state. [11]

The Starbucks soluble products manufacturing operation will locate on 100 acres in the Augusta Corporate Park in Richmond County. [11] Even if Starbucks winds up paying a large settlement, Schultz now has the power to demand the best shelf space for Starbucks products. [15]

Energy drinks are the fastest-growing niche in the beverage business, up 16% over the past year, says John Sicher, publisher of Beverage Digest. "This is a very innovative product," Sicher says. [23] The drinks will have 60-calorie drinks, will come in fruit flavors and will be hyper-caffeinated by extract of green, unroasted coffee. "Refreshers" drinkers can feel out of control as they do after a dose of drug-store sold energy beverages, marketed to people who have to many college exams or cannot get enough sleep. [26] The fruity, carbonated drink that's high in antioxidants uses unroasted, green coffee extract for the energy boost -- but has no coffee taste. [23]

Made with fruit juice infused with the extract of green, unroasted coffee, the 12-fluid-ounce, 60-calorie drinks are already being sold at some grocery locations. [14] The fruit-flavoured drinks are made with a virtually flavourless extract of green, unroasted coffee, and pack less caffeine kick than coffee drinks made from roasted beans. [27]

Refreshers, which come in raspberry pomegranate, orange melon, and strawberry lemonade flavors, are not as heavy as a coffee since the beans are unroasted. The "lightly sparkling" drinks are available now in certain grocery stores, but they'll be all over the place come May. [31] The brand also has become the coffee of QRS chains like Burger King, Subway and Taco Bell. The brand will make inroads into the convenience store market later this year with its deal to serve Seattle's Best at around 550 Chevron ExtraMile stores. [28] The menu offers original and dark roast coffee, hot or iced, plus specialty drinks like Caramel Candy and Birthday Cake-flavored lattes, S'mores mochas, and Caramel Pretzel. Food will also be available, such as breakfast sandwiches, warm pretzel bread with turkey or ham, and multigrain bars, cookies and muffins. "In this location, we're debuting our revamped coffee and food menu based on what customers have told us is important," said Jim McDermet, senior vice president and general manager of Seattle's Best Coffee. "Our customers are constantly on the go, and they tell us that finding great coffee options that fit their busy lifestyles is tough. …They're sacrificing great tasting coffee and food for speed and convenience, and we can put an end to that." Recently, Seattle's Best has opened locations in nontraditional places, such as airports, university campuses and medical centers. [28] NORTHLAKE, Ill. - Getting a cup of Seattle's Best Coffee just got a little easier at one Chicago-area location. [28]

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Caribou Coffee Company, Inc. ( NASDAQ:CBOU ): CBOU shares recently traded at $16.50, up $0.14, or 0.86%. They have traded in a 52-week range of $9.03 to $18.60. [2] Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. [25]

Chinese consumers also love the brand, an "affordable luxury" for the country's emerging middle class. Later this year, Starbucks plans to open its long-awaited first store in India, where it hopes to tap an emerging middle class, as in China. [33] To that end, executives showed off the Starbucks single-cup brewing machine that will go on sale in time for the winter holidays. Starbucks announced plans for its Verismo at-home espresso and latte machine earlier this month, ending more than a year of speculation. [6]

In 2011, Starbucks more than doubled the number of hours from the year before with 442,000 hours contributed. Starbucks is working toward its goal of generating one million hours annually by 2015. Energy Conservation: Starbucks is continuing to make progress against its goal for 25% energy reduction over 2008 levels by 2015, and has reached a 7.5% total decrease in 2011 over the 2008 baseline. [32]

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The company has launched something called Starbucks Refreshers, made. This advertisement is obviously fake, but it definitely adds to The Hunger Games hype (opening this Friday. [31] The announcement came just ahead of the opening of Starbucks' annual meeting in Seattle. [12] Schultz, who led the scattershot approach at the 2008 annual meeting, said: "We're not going to allow ever again at Starbucks for growth to cover up mistakes. [33] "Starbucks is firing on all cylinders," CEO Howard Schultz told 2,000 shareholders. [23]

The idea is to translate Starbucks’s 40 years of experience in coffee to juice and Refreshers, Schultz said. [15] Schultz has said Via eventually will become a billion-dollar brand. In Schultz’s boldest move yet to become a player in groceries, he last year wrested control of packaged coffee distribution from Kraft. [15]

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Single-serve brewers, which can range from $50-$800, make fresh cups of coffee, or even barista-worthy espresso drinks, in seconds. [6] Analysts expect the machine to compete with Nestle's Nespresso machine, the worldwide leader, and Green Mountain Coffee Roasters Inc's Keurig brewers, which dominate in the U.S. market. [4] Analysts expect the machine to compete with Nestle's Nespresso machine, the leader in Europe and around the world, and Green Mountain Coffee Roasters Inc.'s Keurig brewers, which dominate in the United States. [6]

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Will build its 5th U.S. plant in Georgia adding 140 new jobs in addition to the 5,000 new jobs created by adding 300 new stores. [8] While Schultz still presides over about 10,800 macchiato- and scone-selling cafes in the U.S., grocery revenue is rising almost three times as fast as store sales. [15]

The beverages will be available at more than 160,000 U.S. points of distribution by the end of April, the company said. [10] The beverage, with flavors ranging from Raspberry Pomegranate to Strawberry Lemonade, will sell for $1.99 for a 12-ounce, 60-calorie can. [23]

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"There is huge consumer interest in energy drinks." Never mind that some nutritionists have knocked energy drinks such as Red Bull, Monster and Rockstar for their caffeine and calories. [23]

SOURCES

1. Starbucks Bets on 'Green Coffee' Energy Drinks | Fox Business
2. Starbucks Continues Transformation from Coffee to Beverage Brand (NASDAQ:MNST, NASDAQ:SBUX, NASDAQ:CBOU, NYSE:MCD) | Wall St. Cheat Sheet
3. Starbucks to Sell an Energy Drink, Plans Big Push in Asia - WSJ.com
4. REFILE-UPDATE 4-Starbucks factory investments to create 150 jobs | Reuters
5. Starbucks puts pep in lineup - m.NYPOST.com
6. Starbucks to add manufacturing jobs, energy drinks - chicagotribune.com
7. Starbucks Corporation : Starbucks Spotlights Connection Between Record Performance, Shareholder Value and Company Values at Annual Meeting of Shareholders | 4-Traders
8. IndustryWeek : Starbucks Says It's Proud to be Creating American Jobs
9. Starbucks Spotlights Connection Between Record Performance, Shareholder Value and Company Values at Annual Meeting of Shareholders | RestaurantNewsRelease.com
10. Starbucks to debut Refreshers energy drink | Nation's Restaurant News
11. Starbucks manufacturing operation to create 140 jobs in Augusta
12. Starbucks to open plant in Georgia | ajc.com
13. Starbucks opening plant in Augusta, creating 140 jobs | 11alive.com
14. Starbucks to make Refreshers energy drinks - latimes.com
15. Schultz Transforming Starbucks Into Supermarket Supplier: Retail - Businessweek
16. Starbucks to Add Energy Drinks to Menu | Black Friday Magazine
17. Starbucks and Priceling.com Among Stocks Achieving New Highs in Trading Action | Wall St. Cheat Sheet
18. Starbucks Announces Beverage Innovation Using Green Coffee Extract with Starbucks Refreshers Beverage Platform : BevNET.com : BevNET.com
19. Starbucks factory investments to create 150 jobs - WTKR
20. Starbucks Releases 11th Annual Global Responsibility Report at Annual Meeting of Shareholders - Business Wire - SunHerald.com
21. Business & Technology | Starbucks' socially responsible image cuts both ways | Seattle Times Newspaper
22. UPDATE 1-Starbucks adding energy drinks, US factory jobs | Reuters
23. Starbucks to jolt consumers with Refreshers energy drink - USATODAY.com
24. News Headlines
25. Strawberry Lemonade Ready-to-drink Starbucks Refreshers(TM) Beverages (Photo: Business Wire) - TheStreet
26. Starbucks To Challenge Red Bull In Super-Caffeine Drinks - 24/7 Wall St.
27. Starbucks entering energy drink market | Retail | News | Financial Post
28. Seattle's Best Opens Car-Friendly Location | NACS Online - News & Media Center - News
29. Starbucks To Open Instant Coffee Plant In Georgia | News | Manufacturing.net
30. Starbucks Building Plant in Augusta
31. Starbucks Getting in on the Energy Drink Business | The Daily Meal
32. In 2011, Starbucks More Than Tripled The Availability Of In-store Recycling. Photo Credit: Starbucks/Kathryn Barnard - TheStreet
33. Starbucks is steaming hot again after change in philosophy



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