Starbucks leadership discussed the tremendous runway for international growth in the retail space as well as in CPG and foodservice channels not only in current markets but also in new and emerging countries. With recently announced plans to enter the India market, and continued successful growth in China where the company expects to have over 1,500 stores by 2015, Starbucks is poised to ramp up its burgeoning international business through disciplined store growth, improved operations, targeted innovation, local relevance in product and store design, and one-voice marketing.
"Starbucks China is an incredibly successful business, outperforming the U.S. in terms of average store profitability," said Annie Young-Scrivner, Starbucks chief marketing officer. "Even though we are not yet in every city and we've spent very little on advertising, Starbucks is recognized as one of the top 20 brands in China. Our ambition is bold; we expect to more than triple our foot print by 2015."
With nearly 6,000 stores in 54 countries outside the U.S., it is clear that the affinity for the Starbucks brand is remarkably strong in every market and that the Starbucks Experience truly translates globally. Starbucks has the ambition and capability to bring great coffee to more people in more parts of their lives than ever before. The company believes there is a significant, untapped opportunity still ahead.
The company reviewed a year of strong financial results and outlined the blueprint for continued success. Starbucks exited fiscal 2010 and entered fiscal 2011 with record-setting financial results driven by the return of top line growth and continued operational efficiencies that resulted in dramatic margin and earnings acceleration throughout the year. This record-setting performance and the underlying health of the business establish a strong foundation from which to pursue multiple avenues of future profitable growth.
"Starbucks is now playing from a position of strength, with a healthy financial foundation and renewed confidence from which we can pursue the abundant opportunities for growth," Troy Alstead, Starbucks chief financial officer added. "We are intent on capturing a larger share of coffee consumption, reaching consumers wherever and whenever they want great coffee."
The company reiterated diversified opportunities for growth in a number of platforms including store segmentation and innovation in store designs, development of products such as Starbucks VIA®, growth in brands such as Seattle's Best Coffee and expansion of channels of distribution beyond the Starbucks stores, all of which provide abundant opportunities to reach more and more customers during more coffee occasions.
Additionally, Starbucks highlighted its continued efforts to connect with customers in the digital and mobile space, creating a Fourth Place experience for ongoing engagement and future innovation. The company's involvement with social media, leadership in loyalty and mobile through its Starbucks Card and My Starbucks Rewards programs were featured during the onstage presentation. The company also announced four new content partners to the in-store Starbucks Digital Network, all of which are offering free access to their subscription-level content to Starbucks customers.