STiR coffee and tea magazine

Volume 4, Number 2

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10 STiR tea & coffee industry international / Issue 2, 2015 (April/May) Starbucks Expansion Plans and Stock Split Stockholders in 1992 who invested $1,700 in Starbucks shares were certainly celebrating the latest 2-for-1 stock split as they counted $302,048 in returns. It is the sixth 2-for-1 split since the company went public and just one of several announcements to make everyone happy at the March annual meeting attended by 2,800 investors, employees and financial professionals. Starbucks reaffirmed its goal to reach a market value of $100 billion, announced the national rollout of mobile order and pay and said it will open 3,500 new stores. Starbucks is also partnering with Postmates, a food and beverage delivery firm with a high-tech core. In select locations such as New York City's Empire State Building, tenants will soon be able to order "Green Apron" service. In China, Masterkong will distribute Starbucks RTD drinks. Howard Schultz, Starbucks c.e.o. struck a nostalgic note at the 23rd annual meeting."The long history of Starbucks is steeped in trying to build a different type of business proposition from day one: one that achieves the balance between profitability and a social conscience. And to continually ask ourselves what it takes to build a great enduring company. Even as our share price hits new all-time highs, we have never lost sight of this vision, and our goal of bringing our people along with us on the journey and sharing our success." Underpinning his expansion plans are record revenues of $16.4 billion (11% annual growth) with $1.6 billion returned to shareholders in stock repurchases and dividends. He promised a health care contribution of $233 million as well as awarding "Bean Stock" for employees totaling $210 million. The Bean Bang Theory Millennial consumers are serious about their coffee, its origin and characteristics. They are also too young to recall the height of the Juan Valdez days of coffee promotion, when the good natured Colombian grow- er assured coffee drinkers they were getting 100% washed arabica, the best coffee that money can buy. That's why the Colombian Coffee Growers Federation (FNC) launched a broad social media campaign in February to entertain, educate, and inform a new genera- tion of coffee drinkers. The Bean Bang Theory (BBT) is anchored by a three- minute YouTube video and #MindTheBean Twitter campaign with Facebook and associated touch points like free digital wallpaper. The campaign was created with Lowe/SSP3 Bogotá a division of Lowe and Partners, a global advertising firm headquartered in London. During a preview in Bogotá at the FNC headquarters, Marcela Jaramillo, FNC's marketing and advertising director, explained that young people are more sophisticated in their coffee preferences and demand more information as well as transparency about the food and beverages they consume. Jaramillo explained that the core values of Café de Colombia are meant to shine through. These include authenticity, trust, honesty, social responsibility, and innovation. The easily navigated website introduces growers, cultivars, and processing methods. It is thoroughly researched to meet the interests of any coffee drinker. In a reminder of how important this country is to the global market on panel reads "Colombia put coffee on the table, and coffee put Colombia on the map." Ths website explains why. FNC represents more than 500,000 Colombian growers. Learn more at: or cafedecolombiaWW and on Twitter @CafedColombiaWW — Dan Bolton * The "i" on STiR's cover is the Satake PIKASEN FMS-2000, a portable optical RGB scanner (see ad on pg. 6) Learn more at * Incorporating NEWS Advertising Representation: Global Glenn Anthony John (Thailand) Tel +66 22 55 66 25 Mobile +66 818 299 409 The Americas / Northern Europe Emerson Leonard (United States) Tel/Mobile: +1 917 680 1050 United Kingdom/Southeast Asia Chris Michaelides (Hong Kong) Tel +66 22 55 66 25 Mobile +66 869 896 540 Spain / Italy Jonathan Wesley Bell (France) Tel: +33 563 414790 Printing/Distribution October Inter Co., Ltd. Bangkok, Thailand Tel +66 22 55 66 25 Fax +66 26 55 22 11

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