SEATTLE – Starbucks (NASDAQ: SBUX) announced, effective today, Laxman Narasimhan has assumed the role of chief executive officer and will join the company’s board of directors. Narasimhan was named incoming ceo on <a href="https://stories.starbucks.com/press/2022/starbucks-names-laxman-narasimhan-as-next-chief-executive-officer/">September 1, 2022</a>, succeeding company founder and now former ceo, Howard Schultz.

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Following the global search for the new leader of Starbucks, Narasimhan joined the company as incoming ceo on October 1, 2022, bringing nearly <a href="https://stories.starbucks.com/leadership/laxman-narasimhan/">30 years of experience</a> leading global consumer goods businesses and advising retail, grocery, restaurant and e-commerce companies. Over the past five months, he has embarked on a unique immersion experience, traveling to work with partners (employees) in over 30 stores, manufacturing plants and in support centers around the world, earning his barista certification along the way. He became immersed in the reinvention plans for the company led by Schultz who returned as interim ceo effective April 4, 2022.

Since Schultz returned last year, Starbucks unveiled a company-wide reinvention strategy and continued to deliver on more than $1 billion in investments in retail partners and stores for prioritized areas such as increased pay and sick time accrual, new financial well-being benefits, modernized training and collaboration, store innovation and equipment and the celebration of coffee.&nbsp;The company saw a 47 percent stock price increase since the Q2 FY22 earnings call through the Q1 FY23 earnings call, and market cap growth of approximately $40 billion during that same time. The company also delivered 50 percent in Total Shareholder Return in this time period, far outpacing the S&amp;P 500.&nbsp;Starbucks was also most recently named the most valuable restaurant brand for the 7th consecutive year by <a href="https://brandirectory.com/rankings/restaurants/" target="_blank" rel="noreferrer noopener">Brand Finance</a>.

Schultz shared a letter to the company’s senior leadership team on the eve of the announcement – viewable <a href="http://stories.starbucks.com/press/2023/you-are-the-future-of-starbucks-howard-schultz-letter-to-leaders-as-he-steps-down/">here</a>.

“The board wants to express our sincerest thanks to our founder, Howard Schultz, for selflessly picking up the leadership mantle when asked—forgoing compensation and putting aside his own pursuits—for the love of our company and its partners,” said Mellody Hobson, Independent Starbucks Board of Directors chair.&nbsp;“We would not be where we are without him.”

Narasimhan officially assumes the role of chief executive officer today and will lead Starbucks Annual Shareholder Meeting this Thursday, March 23. As he ascends into the role, Narasimhan will continue engaging the leadership team, sharing his early learnings and insights and assessing opportunities for the company as they chart a path forward.

“Laxman’s intensive immersion into the business coupled with his extensive experience as a proven brand builder, innovator and operator have uniquely prepared him to lead Starbucks into its next phase of growth,” said Hobson. “This immersion has deepened Laxman’s understanding of Starbucks culture and values. In this time of learning and listening, he has already won the hearts and minds of our partners around the world.”

“I am humbled to officially step into my role as Starbucks chief executive officer, leading our incredible team of more than 450,000 green apron partners around the world. The foundation Howard has laid – building from scratch an iconic global brand fueled by a lasting passion to uplift humanity – is truly remarkable, and I am honored to have the opportunity to build on this deep heritage,” said Narasimhan. “As a human connection business, we have limitless possibilities to deliver for our partners, our customers, our investors and our communities through every cup and every connection. I am excited to work alongside our partners worldwide to unlock the limitless future of Starbucks.”

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Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 36,000 stores worldwide, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at stories.starbucks.com or <a href="http://www.starbucks.com">www.starbucks.com</a>.

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “feel,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements may include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, including our Reinvention plan, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; impact of foreign currency translation; strategic pricing actions; the conversion of certain market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; the success of our licensing relationship with Nestlé, of our consumer packaged goods and foodservice business and its effects on our Channel Development segment results; tax rates; business opportunities, expansions and new initiatives, including Starbucks Odyssey; strategic acquisitions; our dividends programs; commodity costs and our mitigation strategies; our liquidity, cash flow from operations, investments, borrowing capacity and use of proceeds; continuing compliance with our covenants under our credit facilities and commercial paper program; repatriation of cash to the U.S.; the likelihood of the issuance of additional debt and the applicable interest rate; the continuing impact of the COVID-19 pandemic on our financial results and future availability of governmental subsidies for COVID-19 or other public health events; our ceo transition; our share repurchase program; our use of cash and cash requirements; the expected effects of new accounting pronouncements and the estimated impact of changes in U.S. tax law, including on tax rates, investments funded by these changes and potential outcomes; and effects of legal proceedings. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: the continuing impact of COVID-19 on our business; regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19, including restrictions on business operations or social distancing requirements, and the duration and efficacy of such restrictions; the resurgence of COVID-19 infections and the circulation of novel variants of COVID-19; fluctuations in U.S. and international economies and currencies; our ability to preserve, grow and leverage our brands; the ability of our business partners and third-party providers to fulfill their responsibilities and commitments; potential negative effects of incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; costs associated with, and the successful execution of, the Company’s initiatives and plans; new initiatives and plans or revisions to existing initiatives or plans; our ability to obtain financing on acceptable terms; the acceptance of the Company’s products by our customers, evolving consumer preferences and tastes and changes in consumer spending behavior; partner investments, changes in the availability and cost of labor including any union organizing efforts and our responses to such efforts; failure to attract or retain key executive or employee talent or successfully transition executives; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business including any potential negative effects stemming from the Russian invasion of Ukraine; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; and the effects of changes in tax laws and related guidance and regulations that may be implemented, including the Inflation Reduction Act of 2022 and other risks detailed in our filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management's Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

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Following the global search for the new leader of Starbucks, Laxman Narasimhan joined the company as incoming ceo on October 1, 2022, bringing nearly 30 years of experience leading global consumer goods businesses and advising retail, grocery, restaurant and e-commerce companies.

Laxman Narasimhan Assumes Role of Starbucks Chief Executive Officer

https://stories.starbucks.com/emea/press/press-releases/

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https://stories.starbucks.com/emea/press/2023/laxman-narasimhan-assumes-role-of-starbucks-chief-executive-officer/

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As I step down as interim ceo of Starbucks, I am leaving you with this letter, written on the sunset of my last day as ceo for all of you to read on the morning of this new era. This is not a letter with advice. Everything you need to know resides inside of each of you.

What I want to write to you about is the love and responsibility for our company that we all share. Today, I am entrusting you all with Starbucks – something that holds a place in my heart second only to that of my beloved family.

Starbucks truly has been my life‘s work – but more than that, it’s always been about the lives of the millions of partners over the years who have proudly worn the green apron and it’s about the hundreds of thousands more who will join Starbucks in the years to come. It’s about every customer who comes through our doors. It’s about the communities our stores call home. Our company is like a river – the stewards of it will change over time, but it’s always growing and changing, carving a new path and moving forward to something better.

As I step away, I leave you all as the stewards, in service of all of our partners. They are the heart and soul of our company – the living embodiment of human connection. Through the years, I’ve seen over and over the profound impact our partners have on our customers, from a new parent whose first outing is to a Starbucks to introduce their baby to their favorite barista, to a store where partners learned sign language to better serve a deaf customer, to a widower who said that when he goes to his Starbucks, it may be the only time all week someone greets him by name. Our partners are making a difference in millions of lives a day. Serve them well.

I want to acknowledge that there are times when the responsibility for our partners, customers and communities around the world will feel heavy. But as partners, know that you are not shouldering the responsibility alone. Lean into one another – you will find support everywhere, from the boardroom to partners in plants to store managers to the newest baristas. Our partners have been teaching me for more than 40 years. They will help you all continue to earn your green apron every day.

And, importantly, lean into the joy. There is so much joy. Every single interaction that we have as partners and that we have with customers is an opportunity for meaningful connection. It adds up to a limitless capacity for joy, love and support, with the center being Starbucks. Remember that.

As I turn Starbucks over to you now, know that you have my utmost confidence, trust and love. You all are the future of Starbucks.&nbsp;The world needs Starbucks – and Starbucks needs all of you.

The privilege and honor of being part of Starbucks has been the gift of my lifetime. I know it will be yours as well.

Views

Views Archives - Starbucks Stories EMEA

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“As I step away, I leave you all as the stewards, in service of all of our partners. They are the heart and soul of our company – the living embodiment of human connection,” wrote Howard Schultz to the senior leadership team on the eve of Laxman Narasimhan’s first day as Starbucks new chief executive officer.

‘You are the future of Starbucks’: Howard Schultz’ letter to leaders as he steps down

https://stories.starbucks.com/emea/press/2023/you-are-the-future-of-starbucks-howard-schultz-letter-to-leaders-as-he-steps-down/

Starbucks exceeded pre-pandemic revenues in UK and EMEA

We plan to open over 100 new stores in the UK and 300 in EMEA in the next year

Starbucks UK registered EMEA business and UK Coffee Company today filed accounts for the financial year ending 2 October 2022.

Starbucks UK Coffee Company (in GBP):

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FY22 Operational overview:

Duncan Moir, President Starbucks Europe, Middle East and Africa, commented:

“We have had a very strong year of revenue growth in the UK and EMEA and I’m pleased to report that we have exceeded our pre-pandemic revenue levels. This is all thanks to the hard work of our fantastic team of partners who are dedicated to delivering a positive experience for every customer.

"Innovation remains key to Starbucks ability to meet our customers’ changing needs and we’re investing in our digital channels and developing new store formats such as digitally-forward smaller stores and Drive Thrus.

“Whilst we are cautious about the macro-economic environment, we will continue to invest to grow the region this year. We plan to open over 100 new stores in the UK and 300 new stores in EMEA, to continue this growth momentum.”

The UK continues to be Starbucks largest market in EMEA. UK operations are captured in the accounts of Starbucks UK Coffee Company.

At the year end, Starbucks had a total of 1066 stores in the UK, of which 318 were company-owned and 748 were run by licensees. This represents a 30/70 split which is flat on last year.

Starbucks experienced strong demand for its products and delivered strong sales growth as it transitioned out of the pandemic. The first half of the year saw some residual adverse impacts of COVID-19 as government guidance reverted to work from home in response to the Omicron variant. Despite this, revenues were up 37% and for the first time, the Company saw annual sales exceed pre pandemic levels.

The UK experienced a challenging inflationary environment during the year, with UK inflation rising to its highest rate in 40 years at the end of the period. We saw operating costs increase across all areas of the business including higher energy costs, wage increases and supplier costs, which reduced margins. As a result, operating profit decreased slightly to £12.6M (2021: £16.5M). It is worth noting, 2021 also had a number of one-off benefits which positively affected operating profit, including automatically applied government business rates exemptions and the reversal of impairment provisions of £2.4m (2022: £2.9m impairment charge).

This year represented the final stages of the Company’s recovery of transactions to a post pandemic baseline.

Changes in consumer behaviour developed during the pandemic continue to influence sales trends. The Company’s performance was improved by investments made to adapt its operating model to help the business meet customers where they are. This included investments in digital, evolving the estate towards more Drive Thrus and the positive incremental impact of delivery sales. The Company now has 285 Drive Thru stores, of which 26 are company-operated stores, and 259 are licensed/franchised stores.

Drive Thru and Delivery channels continue to go from strength to strength. We also saw strong footfall recovery in suburban and retail park locations thanks to the prevalence of flexible working policies. Office, travel and inner-city location footfall has been slower to recover, however it started to strengthen towards the end of the year with a particularly good recovery in London as commuters returned to the city.

We saw average basket size go up thanks to increased food sales and reusable merchandise such as cups. Our Hickory Ham &amp; Cheese Toasties and Beyond Meat Breakfast Rolls were amongst our best sellers this year. Innovation has always been a core part of the Starbucks brand and this year we launched a range of Pizettas and Egg Bites. The Company continued to expand its cold beverage range, which remains a strong driver of growth. The new Refresha® and iced espresso ranges also sold well during the year.

Investment into delivery channels, the mobile platform and Starbucks® Rewards programme continues to be a pivotal part of our strategy. We onboarded a further 58 stores onto delivery platforms and launched updated our rewards programme to allow customers to earn stars on their purchases regardless of payment method. The business has seen consumer trends move towards digital payments and looks to launch further digital initiatives to streamline customers’ online experience.

As with last year, we saw competition intensify with takeaway food chains and restaurants focusing on coffee as a secondary discounted offer. Starbucks remains focused on providing quality, consumer-focused product and service to retain and grow our market share.

Like many other businesses, we have experienced challenges in our supply chain with shortages of HGV drivers, packaging material shortages, rising supplier costs and shipping delays, although the situation continues to improve in FY23.

We remain cautious about the macro environment. Inflation is leading to significant increases in input costs including coffee, milk, food ingredients and packaging. We continue to look for ways to optimise our margins and ensure that price increases are mitigated as far as possible through efficiencies and savings. Although the Company has navigated recessionary environments before with significantly less impact versus its competitors and other consumer market segments, it seeks to ensure that its strategy and product ranges are optimized for a recessionary environment.

We believe that our partners are integral to the success of the business, and we are committed to supporting them to have a rewarding and meaningful career at Starbucks. We want to be an employer of choice and we regularly review our pay and benefits structures to remain competitive. With the range of benefits that Starbucks offers its partners in the UK, we are confident that we will be able to attract and retain talent in our stores. Key initiatives launched in the year include pay increases, maintaining a premium to national living wage, free food on shift and an extra day’s holiday. We also wanted to ensure that partners were recognised for their contribution to the Company and we paid a “share of success” bonus of £4.3m across partners in stores.

We opened 30 company-operated stores and closed 9 stores in the year. New store openings were targeted in key Drive Thru locations with high traffic counts. The Company also increased the number of licensed stores and franchised stores by 45.

Starbucks continues to invest in the growth of the UK business and is targeting over 100 new stores in FY23 as part of its strategy to grow sales across all of its channels. Growth in the company-operated estate will be targeted on key city and Drive Thru locations, with a focus on store format innovation such as smaller, digitally-forward stores, and high traffic count Drive Thru locations. Starbucks also plans to renovate 30 company-operated stores over the course of the year, as part of a 3 year plan.

We have been very encouraged by the performance of licensed stores and franchised stores and we expect more of them to open in FY23 as part of our targeted strategy for growth. The Company expects store growth to be driven primarily by its licensed partners.

The Company reported a UK corporation tax charge of £4.6m (2021: £5.4m), reflecting the lower operating profit due to investments in staff pay, inflationary pressures and one-off benefits in FY21.

Starbucks EMEA Limited is the main reporting entity for all Starbucks activities in EMEA – excluding the UK business, which is reported separately as outlined above. At the year end, there were 4,176 Starbucks stores in 42 markets across Europe, the Middle East and Africa (EMEA).

The Company opened 200 net new stores in FY22 (400 store openings and 200 closures). The majority of these closures were a result of the decision to exit all business activities in Russia as a result of Russia's invasion of Ukraine. All 126 stores in Russia were closed during the year.

Starbucks operates in EMEA mostly on a licensed and franchised business model, rather than through direct ownership of stores, meaning most of its revenues come from royalty payments. Revenues increased in the period by 36% to $324.0m (2021: $237.4m), driven by further recovery post COVID-19. As a result, operating profit increased during the year to $72.9M (2021: $40.5m).

We have seen continued growth in the EMEA region, especially within Turkey and Middle Eastern markets, where we see strong growth in new stores. As with last year, Drive Thrus continue to be the best performing store format in the region.

We rolled out our digital platform to more licensees to improve the in-store Starbucks Experience for customers . At the year end c.31% of our stores in EMEA were equipped to handle mobile order and pay – up from 23%. c.43% of our stores in EMEA are now handling deliveries – up from 22% a year earlier. These platforms provide our customers with greater convenience and a better in-store experience. We are proud of our current platform but will continue to focus on improving our digital offering.

Starbucks EMEA Limited reported a UK corporation tax charge of $19.5m for the year, compared to $13.2m for the same period last year. The payment increased owing to the improved trading performance and profitability of the business.

Profit after tax for the period was $56.4m (2021: $177.1m). This consists of an operating profit of $72.9m (2021: $40.5m) from its operating and other activities, a UK corporation tax charge of $19.5m (2021: $13.2m) and a reduced dividend of $1.4m (2021: $150.0m). The dividend comprises income from other Starbucks group subsidiaries that can pass through the Company as part of the consolidation of the group accounts, in accordance with standard accounting practices.

We are deeply saddened by the mass tragedy that unfolds in Türkiye (Turkey) and Syria, and we have committed donating to non-profit organisations focused on providing immediate relief and aid. We operate over 600 stores in Türkiye (Turkey) and are working closely with our licensee and local leadership team to ensure our partners, their families and the communities they serve are cared for in the wake of this tragedy.

Partners in affected areas are being provided with catastrophe pay, mental health and welfare support and paid leave allowing them to look after family members. Food and shelter are also being provided to partners who have been displaced by the earthquake.

Recovery for these communities will take time. We will continue to monitor the situation to support our partners and the communities we serve in Türkiye (Turkey), along with contributing to relief efforts throughout the affected areas.

Latika Shah, latika.shah@edelmansmithfield.com, 07950 671948 Starbucks@edelmansmithfield.com

About Starbucks Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with stores around the globe, Starbucks is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup.

Starbucks EMEA headquarters has been in the UK since 2015, servicing the Europe, Middle East and Africa and driving Starbucks growth strategy in the region. Starbucks opened its first stores in Europe in 1998 and has since grown to 4,176 stores across 42 markets, with the UK remaining as the largest market.

Starbucks files UK and EMEA accounts for the fiscal year ended October 2022 - Starbucks Stories EMEA

Starbucks files UK and EMEA accounts for the fiscal year ended October 2022

Starbucks exceeded pre-pandemic revenues in UK and EMEA We plan to open over 100 new stores in the UK and 300 in EMEA in the next year Starbucks UK registered EMEA business and UK Coffee Company today filed accounts for the financial year ending 2 October 2022. Starbucks UK Coffee Company (in GBP): Starbucks EMEA […]

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https://stories.starbucks.com/emea/press/2023/starbucks-files-uk-and-emea-accounts-for-the-fiscal-year-ended-october-2022/

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First-of-its-kind Starbucks Global Partner Emergency Relief Program to support partners in company-operated and licensed retail store markets around the world

In partnership with the Emergency Assistance Foundation, grants are available to international licensed store partners facing extreme hardship as a result of COVID-19

Starbucks establishes Starbucks EMEA Partner Relief Fund for partners in European company- operated markets

SEATTLE – Today, Starbucks announced a commitment of $10 million (USD) to establish the Starbucks Global Partner Emergency Relief Program, part of its ongoing efforts to support partners (employees) around the world impacted by COVID-19. The commitment marks the first time both company-operated and international licensed market store partners across Starbucks may access hardship grants. These one-time, direct relief grants will be made available to partners facing extreme hardship as a result of COVID-19 and help ensure that partners around the world have access to emergency support during this difficult time.

In every community Starbucks serves, partners are the foundation of the company’s fundamental Mission to inspire and nurture the human spirit. Support from the Starbucks Global Partner Emergency Relief Program will be made available to retail partners in licensed store markets through the Emergency Assistance Foundation, to partners in company-operated markets through the established Caring Unites Partners (CUP) Fund, and to partners in Europe through the Starbucks EMEA Partner Relief Fund, a new fund established for European company-operated markets including the U.K., Austria, Switzerland, as well as the company’s Roastery in Italy and roasting plant in the Netherlands. 

“As we navigate this global crisis, we never lose sight of the wellbeing of our partners, who are the heartbeat of this company,” said Lucy Helm, chief partner officer, Starbucks Coffee Company. “During this very difficult time, we believe it is our responsibility to create additional support for partners facing unexpected financial hardship wherever they are. We are proud to be a catalyst for a first-of-its-kind global funding initiative to further demonstrate to our Starbucks partners that we are in this together.”

Starbucks has a long history of supporting partners. In 1998, the CUP Fund was started in the U.S. by partners, for partners facing unexpected financial hardship. Since then, the CUP Fund has supported more than 28,000 individuals. To date, the program has been extended to Starbucks company-operated markets in Canada, China and Japan.

Starbucks $10 million commitment to the Global Partner Emergency Relief Program will support the existing CUP Fund as well as the new Starbucks EMEA Partner Relief Fund and create a pathway for international licensed markets to set up their own funds with Starbucks contributing an initial investment, a first for the company. 

As each community faces unique response and recovery challenges, the new funds will be processed through the Emergency Assistance Foundation and enable licensed store operators in international markets to join Starbucks in providing support for partners in disaster designated areas, who are immediately eligible to apply for assistance. Qualified categories for fund grants include, but are not limited to, housing and utilities, sudden loss of home, death of a family member or partner, and related funeral expenses.

“Our goal at the Emergency Assistance Foundation&nbsp;(EAF)&nbsp;is to help individuals financially during times of disaster and hardship,” said Doug Stockham, President, EAF. “People around the globe are&nbsp;affected&nbsp;by COVID-19, and&nbsp;we pride ourselves on being&nbsp;the&nbsp;financial&nbsp;first&nbsp;responders. We are pleased&nbsp;to partner with&nbsp;Starbucks&nbsp;and look forward to making an impact together.”&nbsp;

To learn more about how Starbucks is managing through COVID-19 please visit <a href="http://www.Starbucks.com/covid-19">Starbucks.com/covid-19</a>.

To learn about the countless ways that Starbucks partners are uplifting their communities in times of need, visit <a href="https://stories.starbucks.com/stories/good-things-are-happening/">The Good Things Are Happening</a> blog.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality arabica coffee. Today, with more than 31,000 stores around the globe, Starbucks is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at <a href="https://stories.starbucks.com">Stories.Starbucks.com</a> and <a href="http://www.Starbucks.com">www.Starbucks.com</a>.

About Emergency Assistance Foundation

The Emergency Assistance Foundation (EAF) is a 501(c)(3) tax-exempt, public, non-profit organization designed to administer inclusive employee disaster relief and hardship funds.&nbsp;Employee Relief Funds are the fastest way to get financial assistance to employees&nbsp;impacted by COVID-19.&nbsp;EAF's&nbsp;low-cost model and strategically curated systems allow employers to quickly provide&nbsp;financial assistance to domestic and international employees during times of crisis&nbsp;while remaining&nbsp;compliant&nbsp;with GDPR and IRS regulations.&nbsp;In times of Presidentially Declared Disasters,&nbsp;EAF’s unique Immediate Response Program awards&nbsp;grants to employees in need within a few days of verification.&nbsp;Employee Relief Funds also offer the opportunity for employees to make tax-deductible donations to assist their coworkers in need.&nbsp;

Starbucks commits $10M USD in COVID-19 relief for partners around the world - Starbucks Stories EMEA

Starbucks commits $10M USD in COVID-19 relief for partners around the world

First-of-its-kind Starbucks Global Partner Emergency Relief Program to support partners in company-operated and licensed retail store markets around the world.

https://stories.starbucks.com/emea/press/2020/starbucks-commits-10m-usd-in-covid-19-relief-for-partners-around-the-world/

The new $1 billion Sustainability Bond will support Starbucks ethical coffee sourcing and its Greener Retail initiative&nbsp;

A portion of the funds will support a new $20 million equity investment in responsAbility Investments AG as part of Starbucks Global Farmer Fund that supports coffee farmers and their communities

SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today announced that it has completed issuance of a $1 billion Sustainability Bond. It is the largest Sustainability Bond the Company has issued to date and follows two previously issued Sustainability Bonds in <a rel="noreferrer noopener" href="https://stories.starbucks.com/press/2016/starbucks-issues-the-first-u-s-corporate-sustainability-bond/" target="_blank">2016</a>&nbsp;and&nbsp;<a rel="noreferrer noopener" href="https://stories.starbucks.com/press/2017/starbucks-offers-its-first-sustainability-bond-in-japan/" target="_blank">2017</a>.&nbsp;

“We are very pleased to see that our new Sustainability Bond attracted significant investor interest and was oversubscribed,” said Patrick Grismer, cfo of Starbucks. “The bond demonstrates Starbucks commitment to meaningful, continual progress toward our aspiration of sustainable coffee, served sustainably. It also illustrates a trend toward heavier interest from investors in our socially and environmentally focused projects – in this case supporting coffee farmers and leading in green retail.”

Grismer added that Starbucks leadership in social and environmental responsibility “is a defining element of who we are as a company. Our intent is that, by issuing a Sustainability Bond, we’re providing investors an opportunity to participate in our sustainability efforts, and our hope is that this inspires others to pursue more sustainability-related investing opportunities.”

Support for Coffee Farmers

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As with the two previously issued Sustainability Bonds, funds will support ethically sourced coffee. The scope&nbsp;includes&nbsp;purchasing coffee&nbsp;that is verified by Coffee and Farmer Equity&nbsp;<a href="https://www.starbucks.com/responsibility/community/farmer-support/farmer-loan-programs" target="_blank" rel="noreferrer noopener">(C.A.F.E.) Practices</a>;&nbsp;the continued development and operation of Farmer Support&nbsp;Centers&nbsp;and agronomy research and development&nbsp;centers&nbsp;in coffee-growing regions around the world;&nbsp;and new and refinanced loans&nbsp;to coffee farmers&nbsp;made through Starbucks $50 million&nbsp;<a href="https://stories.starbucks.com/stories/2015/starbucks-more-than-doubles-global-farmer-loan-commitment/" target="_blank" rel="noreferrer noopener">Global Farmer Fund</a>.&nbsp;

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New to the Starbucks Global Farmer Fund and supported by funds from the bond, Starbucks has partnered with the lending organization, responsAbility, on a $20 million equity investment to provide financing to coffee communities in Latin America, Africa and Asia in the form of &nbsp;loans that can help replace old, less productive trees with new trees, buy new equipment, and take other actions to improve their coffee crops’ quality and productivity.

&nbsp;“We are excited to have the Starbucks Global Farmer Fund as a significant investor,” said Anand Chandani, Global Head of Agriculture Debt Financing at responsAbility. “We see synergies with Starbucks in building the sustainable coffee value chain, supporting smallholder farmer engagement and in fostering market linkages.”

As a new, expanded scope, the&nbsp;bond&nbsp;will also help fund&nbsp;the company’s Greener Retail commitments, including its Greener Stores initiative,&nbsp;announced in September, to design, build and operate 10,000 Greener Stores globally by 2025. The open-source Starbucks Greener Store Framework,&nbsp;which Starbucks&nbsp;developed&nbsp;in partnership with World Wildlife Fund (WWF) and SCS Global Services, focuses on commitments to energy efficiency, renewable energy, water stewardship, waste reduction and more.&nbsp;In addition to Greener Stores, funds will also support investments in greener cups and packaging as Starbucks works to reduce our environmental footprint with such projects as the global rollout of strawless lids and identifying the next generation of recyclable and/or compostable cups.

According to Sustainalytics, which provided a <a href="https://www.sustainalytics.com/sustainable-finance/wp-content/uploads/2019/05/Starbucks-Sustainability-Bond-Second-Party-Opinion_05012019.pdf">Second-Party Opinion</a> on the bond, Starbucks&nbsp;has aligned&nbsp;its Eligible Sustainability Projects in the new bond with the priorities outlined in the U.N. Sustainable Development Goals, established in 2015, as well as with the 2018 Sustainability Bond Guidelines&nbsp;(SBG).

“We applaud Starbucks efforts to broaden its social and environmental programs and to align its eligible projects with the U.N. Sustainable Development Goals,” said Heather Land, executive director of Sustainalytics’ Sustainable Finance Solutions team. “In addition, Starbucks inclusion of its Greener Retail initiative is a meaningful addition to its Sustainability Bond.”

As with any Sustainability Bond and outlined in the Green Bond Principles, the company must report on how the funds are spent and the impact they have made against the initiatives. Starbucks will publish annual updates of the allocation of the proceeds throughout the term of the sustainability bond until the proceeds have been fully allocated to projects meeting the eligibility criteria.&nbsp;These updates will be reported publicly at www.starbucks.com and may include additional descriptions of select projects funded with sustainability bond proceeds and their environmental and/or social impacts.&nbsp;

“Morgan Stanley is proud to support Starbucks&nbsp;in their third and largest Sustainability Bond in three years, and their continued commitment to the U.N. Sustainable Development Goals,”&nbsp;said Audrey Choi, Chief Sustainability Officer at Morgan Stanley, which acted as the Sustainability Structuring Agent and a joint book-running manager on the transaction. 

“The market capacity to raise $1 billion of earmarked funds directed to Starbucks&nbsp;existing and new sustainability objectives, including the design, construction and operation of 10,000 Greener Stores globally by 2025,&nbsp;demonstrates increasing awareness and growth of support of sustainability objectives amongst the investor community,”&nbsp;added Dolph Habeck, Head of ESG Debt Syndicate at Morgan Stanley. 

The 30-year Sustainability Bond is part of a larger bond offering of $2 billion,&nbsp;with another $1 billion bond issued for general corporate purposes including the repurchase of common stock as part of the previously communicated $25 billion shareholder return target. The issuance is in line with Starbucks commitment to a leverage cap of 3x lease-adjusted EBITDAR and a minimum credit rating of BBB+Baa1. 

For more information on Starbucks priorities related to sustainable coffee served sustainably, visit <a href="https://stories.starbucks.com/stories/2019/from-ethical-sourcing-to-stores-powered-by-the-sun/">this piece</a> on Starbucks Stories. For more information on impact to date from past Sustainability Bonds, visit our website’s <a href="https://www.starbucks.com/responsibility/environment">environment</a> and <a href="https://www.starbucks.com/responsibility/sourcing/coffee">ethical coffee</a> sections.

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting high-quality&nbsp;arabica coffee. Today, with more than 30,000 stores around the globe, Starbucks is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at&nbsp;<a href="https://stories.starbucks.com/" target="_blank" rel="noreferrer noopener">https://stories.starbucks.com/</a>&nbsp;and&nbsp;<a href="http://www.starbucks.com/" target="_blank" rel="noreferrer noopener">www.Starbucks.com</a>.&nbsp;&nbsp;

Forward-Looking Statements Certain statements contained in this release are “forward-looking statements” within the meaning of applicable securities laws and regulations, including statements about the expected closing of a public offering or senior notes and the use of proceeds of such offering. Such forward-looking statements are based on current management expectations and satisfactions of certain conditions that are subject to various risks and uncertainties, including market conditions and those risks detailed in the Company’s filings with the Securities and Exchange Commission, including the “Risk Factors” section of the Starbucks Annual Report on Form 10-K for the fiscal year ended September 30, 2018, and the prospectus and prospectus supplement delivered in connection with the public offering of senior notes discussed in this release. The company assumes no obligation to update any of these forward-looking statements.

Starbucks Completes Issuance of Third and Largest Sustainability Bond - Starbucks Stories EMEA

Starbucks Completes Issuance of Third and Largest Sustainability Bond

The new $1 billion Sustainability Bond will support Starbucks ethical coffee sourcing and its Greener Retail initiative.

https://stories.starbucks.com/emea/press/2019/starbucks-completes-issuance-of-third-and-largest-sustainability-bond/