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Coffeeclub Team - 23/Jul/2009 18:35 Quote

STARBUCKS NEWS! 2009


KOREA Starbucks plans to open 50 new outlets
MILAN Despite the economic downturn, Shinsegae, which owns 50% of Starbucks Coffee Korea, plans to add 50 new outlets this year and expects to
maintain double digit sales growth.
Starbucks kept prices unchanged and introduced free Internet access to win the customers loyalty and lure young customers.
South Korea is Starbucks fifth-biggest overseas market in terms of store numbers after Canada, China, Britain and Japan.

Date: 27-Feb-09

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Paulo Henrique Leme - 20/Mar/2009 12:30 Quote

Starbucks plans to expand marketing


Starbucks Corp. plans to expand marketing to face the competition in the United States from McDonald's Corp. and Dunkin' Donuts
Inc. During a webcast of the company's 18th annual shareholder meeting in Seattle, the Starbucks ceo Howard Schultz said the
company is still highly profitable, financially strong and has the trust of consumers around the globe. "We're going to take the gloves
off and really differentiate those who are making claims from Starbucks," he said.
Many companies that sell coffee don't roast it themselves, and their employees don't know where the coffee comes from, Schultz
said. "We're not going to be silent too long," he promised, without giving specifics
about how Starbucks might respond. Schultz hinted the company might advertise more and he showed several TV spots Starbucks
aired in the past year. Historically, the coffee chain has eschewed traditional advertising, relying
instead on word-of-mouth and other avenues for brand awareness. Currently, Starbucks is airing TV spots in Chicago to promote its
new instant coffee, Via.

Source: Comunicaffé
Date: 19/Mar/09

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Paulo Henrique Leme - 29/Apr/2009 19:08 Quote

Starbucks kicks off Volunteer Week with 50 Youth Led Community Projects
SEATTLE--(BUSINESS WIRE)--Building on its long-standing commitment to the local communities where it serves its
customers, Starbucks Coffee Company (Nasdaq: SBUX - News) recently awarded 50 Starbucks Shared Planet Youth
Action Grants totaling $842,000 to U.S. non-profit organizations that help young people identify and address local needs in
their regions and make a difference through community outreach.
Fifty organizations in 17 states received Starbucks Shared Planet Youth Action Grants ranging from $10,000 to $25,000.
The Starbucks Shared Planet Youth Action Grants aim to engage and support 50,000 young people by 2015, who will in
turn innovate, take action and inspire additional individuals to take part in community service.
From the neighborhoods where our stores are located to the ones where our coffee is grown, we believe in being involved in
the communities we re a part of, said Vivek Varma, senior vice president of Public Affairs. Starbucks is excited about the
opportunity to partner with passionate young people to help spur community based volunteer efforts. Our Shared Planet grants
are designed to fuel the energy and creativity of young people in these communities, helping them bring people together,
generate change and make a difference.
Beyond the United States, Starbucks also supports youth action around the world. Six non-profit organizations in Canada and
one in Argentina were also recently awarded Starbucks Shared Planet Youth Action Grants ranging from $10,000 to
$25,000. There are additional proposals currently under review internationally in countries where Starbucks does business. A
full list of Starbucks Shared Planet Youth Action Grantees and a summary of all of our community programs can be
viewed at news.starbucks.com.
Also as part of Starbucks Shared Planet commitment to community, Starbucks set a goal to contribute over one million
partner-led community service hours per year by 2015. For volunteer opportunities, visit Starbucks V2V (Volunteer to
Volunteer) at www.v2v.net/starbucks.
Complete details about our community programs in 2008 can be viewed in our 2008 Global Responsibility Report launching
April 22 at www.starbucks.com/sharedplanet.
About Starbucks

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Starbucks Coffee Company provides an uplifting experience that enriches people s lives one moment, one human being, one
extraordinary cup of coffee at a time. To share in the experience, visit www.starbucks.com.
About Starbucks Shared Planet
At Starbucks, we have always been committed to doing business responsibly and conducting ourselves in ways that earn the
trust and respect of our customers, partners (employees) and neighbors. We call this Starbucks Shared Planet our
commitment to doing business responsibly. For additional information, visit www.starbucks.com/sharedplanet.

Contact:

Starbucks Coffee Company


Lisa Passé, 206-318-7100
press@starbucks.com

Source: http://finance.yahoo.com/news/Starbucks-Kicks-Off-National-bw-14973072.html?.v=1

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Paulo Henrique Leme - 23/Jul/2009 18:33 Quote

15th Avenue Coffee and Tea Starbucks New Concept Store


15th Avenue Coffee and Tea Starbucks New Concept Store

July 16th, 2009 · 9 Comments · Coffee Shop News, Retail Coffee Industry, starbucks

Remember experimenting with alcohol and changing your name? Well, it must be Starbucks freshman year at college
because they will be launching a new neighborhood concept store next week under the name 15th Avenue Coffee & Tea
that adds beer and win to the menu.
As always, I had a few thoughts on the subject, which were kindly quoted by the Associated Press:
Andrew Hetzel, the founder of coffee consulting group Cafemakers, said Starbucks may also be renaming its stores to provide
a testing ground for changes and, possibly, to bring in a new brand of consumer.
It looks to me that they are testing a specialty sub-brand to see if they can capture some other segment of the market that
would otherwise be disillusioned by a large corporate chain, Hetzel said, adding that opening only one at first gives them a
live shop to test changes in menu offerings, store design and, perhaps, procedures quickly without disrupting operating stores
branded with the Starbucks name.
You can read the full story tomorrow in many newspapers that subscribe the AP feed, or find it online now on news websites,
like USA Today. These syndicated articles tend to disappear after some length of time, so if reading this long after the event,
you may need to search online to find a different copy. It s unlikely that I will return to update the link.
In addition to what was quoted in the article, I have a few more thoughts:
The best of any specialty food businesses cannot exist on a large scale, so a smaller scale business will ultimately need to be
spun off if Starbucks wishes to compete in the high end specialty coffee market.
Think of the situation in terms of a restaurant the best fine dining restaurants are normally one single unit or a very small
chain. Once you expand to two locations and beyond, it becomes increasingly difficult to maintain the same customer
experience that could be found at the first. Chef skill, front of house training and availability of ingredients all become
increasingly complex to maintain to a consistent level, so often sacrifices need to be made in the name of consistency over
quality so that customers know what to expect when they walk through the door of every location. These problems multiply with
10, 100 and 1,000 units, and you can see what sacrifices Starbucks has made in order to grow beyond 16,000.
Just like a fine dining restaurant, the best of coffee shops have highly skilled baristas and often use unique coffees that may
not be available in the quantities possible to serve a consistent menu at more than a handful of locations. I expect that we will
be hearing more about this new concept over the next several months and possibly years.

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Source: coffee business strategies


Date: 23/jul/2009

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Paulo Henrique Leme - 24/Jul/2009 17:39 Quote

Starbucks offers first peek at its not-a-Starbucks café


By Melissa Allison
Seattle Times business reporter
The Starbucks that isn't a Starbucks officially called 15th Avenue Coffee and Tea opens Friday morning to glaring media
attention and anticipation from customers and competitors.
"It's a really cool concept," said customer Scott Christensen, of Puyallup, who took a picture of the cafe's sign Thursday
afternoon and posted it to Twitter.com. "The culture is pushing back from the corporate establishment and moving toward more
organic, small business."
Inside, an ABC news crew prepared a national broadcast about the new Starbucks store that's so heavily focused on its locale
that it shed its corporate name. CNN, BBC and a host of other media canvassed the city for reactions from local coffee-shop
operators.
15th Avenue Coffee and Tea is the latest in a string of stores that Starbucks has remodeled in a more rustic style using
recycled materials. The Capitol Hill store which last year was slated to close is also part of a test that will include two
more Seattle shops named for their surrounding neighborhoods. Those locations could be in existing Starbucks stores or in
new spaces.
The test stores will sell a rotating menu of beer (roughly $4 to 5 a bottle) and wine (about $5 to $7 a glass), along with coffees,
teas and food not found at most Starbucks locations.
Items that Starbucks customers recognize like a cappuccino will cost a little more than they do at a regular Starbucks
stores, said Major Cohen, project manager for the test program. He guessed they're 5 to 10 cents higher.
Die-hard Frappuccino fans will have to go elsewhere, because 15th Avenue Coffee and Tea will not serve those or other
blended beverages.
Cohen gave other examples of what will set the new shop apart from most Starbucks stores:
Bread and pastries from Essential Baking Co. rather than Starbucks' new pastry lineup.
Limited-time offers of coffee and tea that aren't available in quantities large enough for all Starbucks stores, such as a "Brasil
Blend" that has been sold only at Starbucks stores in Brazil.
Restaurant-style food that will eventually include a platter of Beecher's Handmade Cheeses from Pike Place Market, an open
-faced smoked-salmon sandwich, sardines and Starbucks-branded ice cream.
Daily coffee tastings at 10 a.m.
Live entertainment including music, poetry and actor line readings.
Espresso pulled from one of Starbucks' old manual La Marzocco machines, which were phased out a decade ago in favor of
automated models that work at the push of a button. Because Starbucks doesn't have many of those machines in stores,
baristas for 15th Avenue Coffee and Tea were trained at Visions Espresso Service's Coffee Enhancement Lounge in Seattle.
Brewed coffee made using French presses, old-fashioned ceramic-drip systems and a Clover machine, which is basically a
semiautomatic French press that allows baristas to set the temperature and brew time for individual cups of coffee.
15th Avenue's ambience is similar to its newly remodeled stores in University Village and outside Pike Place Market, which in
turn resemble the rustic, old-time coffeehouse vibe of its oldest existing store inside the Market.
The 15th Avenue store's community table, which easily fits 10 to 12 people, has a surface that came from a wooden ship; other
wood around the store was salvaged from a barn. Barbed-wire lampshades above the table were left to rust for effect in
Lake Washington, and the coffee bar came from Starbucks' old University Village store.
One wall at 15th Avenue is papered with excerpts from Plato's dialogues, which Starbucks director of global-concept design
Liz Muller hopes will inspire conversation.
Talk about the store so far has focused on why Starbucks is reducing its presence to fine print "Inspired by Starbucks"
and possibly mimicking its neighbors.
Linda Derschang, who owns the restaurant and bar called Smith next door, said she wishes Starbucks had talked to her before
painting its storefront the same color brown as hers.
Even the owner of a nearby hair salon was concerned after hearing that the coffee shop would include discarded theater seats.
A media tour revealed that the hard wooden theater seats lining the walls of 15th Avenue Coffee and Tea are far different
and less cushy than the red velvet upholstered seats at The Red Chair Salon.
Still, salon owner Howie Sennet thinks Starbucks should stop borrowing ideas from its neighbors.
"Authenticity can't be bought or copied," he said. "They should use this as a lesson to find their own identity within themselves."
Melissa Allison: 206-464-3312 or mallison@seattletimes.com

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Source: http://seattletimes.nwsource.com/cgi-bin/PrintStory.pl?document_id=2009527518&zsection_id=2003907475&slug=starbucks24&date=20090723

GREG GILBERT / THE SEATTLE TIMES

Major Cohen, Starbucks project manager, sits at the cafe's community table, whose wood was recycled from a ship. The table seats 10-12 people.

GREG GILBERT / THE SEATTLE TIMES

Special touches include a dog-watering dish and the Pet of The Month photo.

GREG GILBERT / THE SEATTLE TIMES

Ashley Flannegan scoops fresh beans at 15th Avenue Coffee and Tea. Limited-time offers of coffee and tea that aren't available in quantities large enough
for all Starbucks stores will be sold at the cafe.

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Grass Roy - 08/Nov/2009 20:05 Quote

Starbucks Posts Strong Fourth Quarter and Fiscal 2009 Results


Starbucks Posts Strong Fourth Quarter and Fiscal 2009 Results

Full Fiscal Year 2009 Highlights:

* Cost savings initiatives delivered full-year savings of approximately $580


million, exceeding target by $30 million.
* Operating margin improved 80 basis points to 5.7%.
* Non-GAAP operating margin improved 110 basis points to 9.2%.
* EPS increased 21% to $0.52 from $0.43 in the prior year; Non-GAAP EPS
increased 13% to $0.80 from $0.71 in the prior year.

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* Operating cash flow totaled $1.4 billion and free cash flow exceeded $900
million.

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Eduardo Cesar Silva - 11/Nov/2009 18:33 Quote

Starbucks Pushes Instant, Seattle s Best for Growth


By Courtney Dentch

(Bloomberg) -- Starbucks Corp. Chief Executive Officer Howard Schultz is shifting the coffee seller s focus from cost cutting to growth by promoting new
products, including Via instant coffee and its Seattle s Best Coffee brand.

The future of the company is not based on cost takeouts, Schultz said in a telephone interview late yesterday. It s based on innovation and the emotional
connection and trust we have with our customers.

Schultz, 56, plans to expand distribution of its instant coffee into grocery and drug stores and has signed an agreement to bring the Seattle s Best brand to
9,000 Subway restaurants by the end of the year. Starbucks is looking to return to sales growth at established stores after four straight quarters of declines.
The Seattle-based company closed more than 900 stores to help trim $580 million in costs in the year ended Sept. 27.

The drop in fourth-quarter comparable-store sales in the U.S. narrowed to 1 percent. Sales at domestic stores open at least a year fell 6 percent in the third
quarter and 8 percent in the second, after tumbling 10 percent in the first.

Earnings per share excluding some items rose in the past three quarters after four straight declines. Net income rose to $150 million, or 20 cents a share,
last quarter, from $5.4 million, or 1 cent, a year earlier. Sales fell to $2.42 billion.

Starbucks rose $1.42, or 7.2 percent, to $21.12 at 4 p.m. New York time in Nasdaq Stock Market trading in the biggest gain since July 22. The shares have
more than doubled this year.

It s Working

They ve held on through the worst of it, said Jeff Farmer, a restaurant analyst at Jefferies & Co. in Boston, referring to the economic crisis. I ve had a hold
on the stock forever and even I can t deny that what they re doing is working.

Farmer, who doesn t own the shares himself, is among 12 analysts with a hold rating on the shares, while nine say buy and none advise selling.

Yesterday, Schultz announced an agreement with Acosta Sales and Marketing Co. to bring Via Ready Brew to convenience, grocery and drug stores next
year as it seeks a portion of the $21 billion soluble coffee market. Jacksonville, Florida-based Acosta distributes goods from more than 1,000 consumer
products companies in North America.

The agreement represents a move away from Starbucks usual distribution partnerships with PepsiCo Inc. and Kraft Foods Inc.

Bright Future

Schultz is also bringing Seattle s Best out from under the shadow of Starbucks, adding restaurant accounts, such as Milford, Connecticut-based Subway,
and adding licensed stores. He split the brand away from Starbucks s whole-bean and bottled- beverage products in September and named Michelle Gass
president of the unit.

Seattle s Best has a very bright future and it can do things that Starbucks cannot, Schultz said, citing sales through vending machines, gas stations and
fast-food outlets. We want to unleash Seattle s Best to do that.

From 2005 through 2007, Starbucks added locations at an annual pace of 20 percent, a rate it couldn t sustain during the global recession. In 2008, when
Schultz returned to the CEO job after a hiatus of almost eight years, he cut that growth rate in half.

As of September, the company had 16,635 coffee shops worldwide, about two-thirds of them in the U.S. It plans to add a net 300 stores in fiscal 2010.
Schultz wouldn t say when he thinks the chain s turnaround will be complete.

We have to make sure that none of the hubris and entitlement that was here returns, Schultz said. There s no sign of victory. One or two quarters doesn t
make a victory.

Source: http://www.bloomberg.com/apps/news?pid=20601109&sid=atklia_MozGo

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Grass Roy - 28/Dec/2009 18:43 Quote

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Eduardo Cesar Silva - 14/Dec/2009 13:00 Quote

All the coffee in China


By Michele Scrimenti and Cong Mu

Starbucks is taking another major step forward in its march to dominate the Chinese coffee market by stepping up coffee bean cultivation efforts in Yunnan
Province.

The American coffee company plans on enlarging its bean cultivating operations in Baoshan, Yunnan Province in 2010 in order to supply its nearly 700
stores in China, the company said Thursday.

"Ultimately I'd love to see our coffee from China feature on the shelves of every one of our stores in 49 countries around the world," Martin Coles, president
of Starbucks International, said in January when the company launched its Yunnan-grown "South of the Clouds" bean line.

The company spent almost three years conducting investigations and tests on the Yunnan beans before it decided to make them available for their stores.

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The beans will be grown in Yunnan and then shipped to America or the Netherlands to be roasted before being shipped back to China. The company said
that it has no plans to set up a bean roasting facility anytime in the near future.

China has become a more important market for Starbucks over recent years, and the company's domestic profits doubled in 2009 over the previous fiscal
year, and the coffee giant expects that the country could support as many as 10,000 stores, equal to the number currently operating in the US.

Problems in Shangri-la

Baoshan is located in a remote part of China's Southwest also known as Shangri-la, surrounded by mountains and the Salween and Mekong Rivers.

Patrick Chovanec, a professor at Tsinghua University's School of Economics and Management, wrote on his blog after the announcement that "[t]he
challenge facing Shangri-La, as always, is transportation."

However, Starbucks said that the region is seeing large trade infrastructure development due to its proximity to Myanmar and Vietnam and already boasts
an airport capable of supporting airplanes as large as Boeing 737s.

Not everyone is positive on Starbucks' growth prospects in China.

When Wang Jinlong, the company's head for the Greater China region, said that China will be Starbucks' number two market after the United States, critics
balked at the proposition.

Daniel Gross wrote in Slate magazine that Starbucks has struggled to "foist American-style consumerism on to China's rising masses" who have "no coffee
culture to speak of."

But Gross' critics seem to be ignoring one of the key factors to Starbucks' success so far in the Middle Kingdom: it's not about the coffee.

When the company opened its first shop in China in 1999, it focused on making itself more than a place to buy coffee and rather built spacious cafes where
people could stay for long periods of time.

From the beginning CEO Howard Schultz has promoted "the idea of Starbucks becoming the third place between home and work in [Asian] countries."

According to the company's research, 90 percent of people who order food or beverages stay on the premises to consume them. Only 20 percent of
Americans going to Starbucks do the same. And drinking coffee is not even one of the top five reasons why Chinese go to Starbucks (It's No. 6). After
surveying customers, Starbucks China discovered that the main reason people go to their shops is to have a place to hang out.

And Kristin Graham, former financial analyst for The Motley Fool, also opined the company would have trouble expanding in China due to the fact "that
Starbucks in China may be a daily ritual for expats, but not locals."

This has remained a common misperception among people looking at the company, even experts who, like Graham, are based in China.

Research from the University of Florida showed that locals had already eclipsed foreigners in Shanghai Starbucks four years ago. Non-Chinese only
accounted for around 40 percent of total customers in several branches located in areas of Shanghai with heavy concentrations of expats.

Li Jing, a communications manager with Starbucks Corporation in Shanghai, confirmed the University of Florida's findings, saying that expats were the
company's mainstay when branches first opened up, but locals now make up the majority of their customers around the country.

She declined to give exact figures but was confident that the proportion of Chinese going to Starbucks would continue to grow.

Tea country

Graham's and Gross's criticisms are nothing new for Starbucks in China.

When the company first declared it would move into the market, analysts were skeptical that Chinese, steeped in millennia of tea culture, would be unlikely
to embrace coffee.

After several years of testing and market research, Starbucks came out with a multi-pronged attack that built on Schultz's idea of creating "third places" that
would give Chinese consumers a spot to relax and meet up with friends away from home and work.

Thanks to its real estate know-how and analyses of pedestrian traffic flows, Starbucks has been able to open up branches in the best locations where its
most likely customers live and work.

And Starbucks in China has also benefited from the burgeoning Chinese middle class' propensity towards conspicuous consumption. To many Chinese,
Starbucks appears as a somewhat upscale coffee chain where well-off hipsters go to hang out.

"To be perfectly honest," said Zhang Liang, a frequent Starbucks-goer in Beijing, "I like to go to Starbucks simply because it's a cool place to be. I'm not
actually a huge fan of the coffee."

As long as Starbucks can continue to bring in people like Zhang, its China gamble most likely will pay off no matter where the beans are coming from.

Source: Global Times

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