Marketing

STARBUCKS COFFEE COMPANY
Company Background
Since opening its first store in Pike Place Market, Seattle, Washington (USA) in 1971,
Starbucks has established itself as the world’s leading retailer, roaster and brand of speciality coffee with over 13,000 outlets in 39 countries (Starbucks Corporation 2007a,
b)1. The company, which ranks amongst the world’s top 100 global brands (Interbrand
2006)2, has an impressive record of sales and profit growth (See Table 1). In FY2006
Starbucks achieved a sales turnover of $7.8bn, an increase of 22% on 2005, and operating margin of 11.4%.
Table 1: Starbucks Coffee Company: Selected Financial Data (Starbucks Corporation
2006, 2007e)
1-Apr07

1-Oct06

2-Oct05

3-Oct04

28-Sep03

29-Sep02

1,923

6,583

5,392

4,457

3,450

2,793

235

861

673

566

410

312

98
333

343
1,204

304
977

271
837

216
626

184
496

Total net revenues ($ Million)

2,256

7,787

6,369

5,294

4,076

3,289

Operating Income ($ Millions)

241

894

780

606

421

313

271
142

810
733

580
596

521
417

514
315

507
264

42
105
560

230
426
2,199

166
330
1,672

144
262
1,344

126
246
1,201

118
288
1,177

Period ending
OPERATING RESULTS
Net Revenues ($ Millions):
Company-operated retail
Speciality
Licensing
Foodservice and other
Total Speciality

STORE INFORMATION
Stores opened during period
United States
Company-operated
stores
Licensed stores
International
Company-operated
Licensed stores
Total stores opened

1

As of 1 April 2007, Starbucks had 13,728 stores of which 7,834 were company owned and operated and
5,894 were licensed outlets (Starbucks Corporation 2007c and d)
2
According to Interbrand’s annual survey of global brands (2006) Starbucks ranked 91st with a brand value of $. It was also one of the top 3 gainers, its brand value growing by 20% over 2005.

Since 2002, revenues have

References: Adbrands (2007) Company Profile: Starbucks (US), [online] Adbrands, March 2007 Available from: Casey (2007) Starbucks Coffee Company: William Blair & Company 27th Annual Growth Stock Conference, Chicago, IL, [online], Starbucks Corporation, 21 June Daniels, C. (2007) “Coffee Maker Brews Fans”, Fast Company, Jul/Aug, pp.25 Dickinson, H Economist (2007) “Brand Management: Trouble Brewing”, The Economist, 3rd March Godsell, M Holmes, S. (2005) Strong Lattes, Sour Notes at Starbucks, Business Week [online], 20 June, Available from: Holmes, S. (2006) “What’s behind Starbuck’s Price Hike?”, Business Week [online], 22 September, Available from: Interbrand (2006) Best Global Brands 2006: A ranking by brand value [online], Available from Interbrand, 28 July, Available from: < http://www.ourfishbowl.com/images/surveys/BGB06Report_072706.pdf> Mintel (2007) Coffee Shops UK – February 2007, Mintel [online], Available from: Starbucks Corporation (2006) Fiscal 2006 Annual Report [online], Starbucks Corporation Starbucks Corporation (2007a) Company Profile [online] Starbucks Corporation, May 2007 < http://www.starbucks.com/aboutus/Company_Profile.pdf> Starbucks Corporation (2007b) Company Fact Sheet [online] Starbucks Corporation, May 2007. Available from: Starbucks Corporation (2007c) Historical Summary of Store Counts [online] Corporation, 1 April 2007. Available from: Starbucks Corporation (2007d) Year-to-date Store Counts by State and Country, [online] Starbucks Corporation, 1 April 2007. Available from: Starbucks Corporation (2007e) Second Quarter Results Fiscal 2007 [online], Starbucks