Following a strong fiscal fourth quarter and a year of streamlining to focus the company for growth, Starbucks hosted its biennial Investor Conference in New York City. Chief executive officer Kevin Johnson and other members of Starbucks leadership team updated investors and analysts on the company’s strategic priorities as it aims to expand its retail store portfolio by approximately 6 to 7 percent net new units and grow same store sales by 3 to 4 percent, globally, each year while continuing to invest in its partners and elevate the Starbucks Experience.
Among the many topics discussed was the expansion of the U.S. Starbucks Delivers program through Uber Eats. In early 2019, Starbucks plans to have Starbucks Deliver offered in nearly a quarter of its U.S. company-operated stores.
Growth of at-home and away from home
Under the Global Coffee Alliance, Starbucks and Nestlé are moving with speed to innovate and develop go-to-market strategies for the global rollout of Starbucks At-Home Coffee portfolio. Starbucks will be the only brand outside of Nestlé to have branded products produced and packaged by Nestlé on both the Nespresso and Dolce Gusto systems.
Starbucks announced that both companies have developed a range of Starbucks-branded products for the Nespresso and Dolce Gusto platforms and Roast & Ground and Whole Bean coffees. The launch of these products in traditional CPG and Foodservice channels will take place beginning in the spring of next year.
With the Nespresso and Dolce Gusto install base estimated at more than any other single-serve system in the world, this is a tremendous incremental growth opportunity for the Global Coffee Alliance, as Starbucks and Nestlé work together to expand to new markets.
