Laxman Narasimhan hosts his first Annual Meeting of Shareholders

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On his fourth day as Starbucks chief executive officer, Laxman Narasimhan hosted the company’s 31st Annual Meeting of Shareholders virtually. Together with the Starbucks Board of Directors, leadership team and green apron partners (employees) from around the world, Narasimhan shared what he learned throughout his immersion journey, including what it means to wear the green apron. And, importantly, he also also shared how these immersion observations will shape the future of Starbucks.&nbsp;

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New ceo shares vision for a ‘limitless’ Starbucks&nbsp;

Narasimhan shared his bold vision for the refounding of Starbucks, which he reiterated in a <a href="https://stories.starbucks.com/press/2023/laxman-letter-to-partners-with-gratitude-and-optimism/">letter shared directly with partners</a> to mark the occasion.&nbsp;

“We have limitless potential, but we need to address what limits us,” said Narasimhan. “Our performance is strong, but our health needs to be stronger. We strive to be a different kind of company, and that is unchanged. But we now operate in a different kind of world.”

Leaders define what limitless means to them&nbsp;

Throughout Narasimhan’s immersion, he worked closely with the leadership team to define the limitless opportunities ahead for Starbucks.&nbsp;&nbsp;

Starbucks leadership emphasized the importance of the company using its scale for good, being open-minded to new ways of doing business, continuing to innovate the partner experience and uplifting communities around the world.&nbsp;

Starbucks shared that with the reinvention plan underway comes a continued investment in partner wages and store operations, and leadership will continue to directly engage with retail partners for guidance. Narasimhan shared that to keep closely connected to the culture and customers, as well as the challenges and opportunities within retail stores, he plans to work in stores for a half day each month and expects his leadership team will stay closely connected to the frontline experience as well. “This is just the beginning,” he said.

Starbucks announced over $1 billion in investments in the overall partner experience. That's shown up with the introduction of new benefits and with increases in pay.

From the beginning, Starbucks has always believed the partner experience is foundational to the success of the company. This past fiscal year alone Starbucks invested more than $1 billion in wages and training, bringing the average hourly pay at Starbucks to nearly $17.50/hour nationally and with a range of $15-23/hour. Factoring in the value of Starbucks benefits – rated number one by Aon – that number can rise to up to $10 (making it nearly $27.50/hour), if our partners participate in all of our benefits. In addition, as a part of the reinvention plan, Starbucks recently completed the rollout of credit/debit tipping across all eligible stores, giving customers more ways to show their appreciation to partners.&nbsp;

Partner benefit enhancements mentioned in the last year include the renewal of the <a href="https://stories.starbucks.com/stories/2022/the-coveted-starbucks-coffee-master-black-aprons-return/" target="_blank" rel="noreferrer noopener">Coffee Masters program</a> and the <a href="https://coffeeexperiences.starbucks.com/" target="_blank" rel="noreferrer noopener">Origin Experience</a> to deepen partners’ connection to coffee.&nbsp;

Human connection remains core to Starbucks&nbsp;&nbsp;&nbsp;&nbsp;

In his letter today, Narasimhan wrote, “Through my immersion, Howard, the leadership team and I have spent a significant amount of time discussing the universal need for human connection – something Starbucks is uniquely positioned to deliver – in a world full of isolation, loneliness and social exclusion. Together, we have acknowledged the opportunity for a refounding of Starbucks – to nurture the limitless possibilities for our partners, our customers, our communities, our farmers, our earth, and our shareholders by prioritizing human connection over every cup of coffee."

Scenic view of sunrise over Hacienda Alsacia coffee farm

Laxman Narasimhan hosts his first Annual Meeting of Shareholders.

Top takeaways from Starbucks 2023 Annual Meeting of Shareholders

Stories to inspire and nurture the human spirit

Starbucks Stories

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Photos by Taylor Kelliher, Joshua Trujillo, Connor Surdi

Laxman Narasimhan took the helm of Starbucks as the <a href="https://stories.starbucks.com/press/2023/laxman-narasimhan-assumes-role-of-starbucks-chief-executive-officer/" target="_blank" rel="noreferrer noopener">new chief executive officer</a> on Monday, but before that, he spent almost six months being mentored by Howard Schultz, meeting with hundreds of partners (employees) around the world, earning his barista certification, and diving into the world of coffee. As Starbucks welcomes Narasimhan to his new role as ceo at today’s Annual Meeting of Shareholders, we take a look back at the people he has met across the company and around the world.&nbsp;

“It’s been a remarkable experience for me – from our origins, where we buy coffee from over a half a million farmers, through our roasting plans, our distribution centers, and into our stores,” Narasimhan said. “This immersion has been an incredible journey and a gift.”&nbsp;

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Narasimhan was welcomed as incoming chief executive officer of Starbucks with a coffee tasting in the place where it all began – at <a href="https://stories.starbucks.com/stories/2015/store-tour-inside-1912-pike-place-seattle-usa/" target="_blank" rel="noreferrer noopener">Seattle’s Pike Place market store</a>. Soon after, he met&nbsp; Starbucks partners <a href="https://stories.starbucks.com/stories/2022/incoming-starbucks-ceo-meets-partners-at-open-forum-shares-personal-journey/" target="_blank" rel="noreferrer noopener">at his first open forum</a> on Sept. 8, 2022, three weeks before he officially joined the company Oct. 1. When Schultz, then interim chief executive officer, introduced Narasimhan to partners, he said that “the leader of Starbucks, the future of the company, must be steeped in humility and must have an innate understanding of humanity.”&nbsp;&nbsp;

Schultz said as he got to know Narasimhan, he said he was stuck by his experience and leadership qualities. “I know we're going to be in great hands and I can promise you he is going to make us a better company.”&nbsp;

Listening and learning&nbsp;

Narasimhan worked with Schultz to create a unique immersion to learn about the Starbucks culture and the business.&nbsp;

“This time with Howard in stores, in the roasting plants, with partners, with investors, with customers – it's an incredible opportunity for me to be learning from one of the best entrepreneurs in the world,” Narasimhan said.&nbsp;

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Narasimhan began immersion as incoming ceo by earning his barista certification with four weeks of in-store training and visits to more than 30 stores around the world – working the drive-thru window, learning the point-of-sale system and perfecting the topping of a Pumpkin Spice Latte.&nbsp;&nbsp;

“I thought it was very important for me to put myself in the shoes of the partners and really understand what they do and how they do it,” Narasimhan said. “There were things I learned through experience in all of this. It taught me a lot.”&nbsp;&nbsp;

Alli Mendoza, a barista in Houston, was one of the partners who trained Narasimhan on the espresso bar. “People ask me what it’s like to train the ceo, like ‘Really, how was it?’” Mendoza said. “He loved interacting with people, he loves laughing and making people laugh. He just wants to learn and be a ceo who’s there for us.”&nbsp;

Coffee &amp; connection&nbsp;

In his visits to Starbucks stores, Narasimhan sat down with store managers, district managers and regional directors for their input and guidance. He said, “One piece of advice I hope to really live by was actually a question I was asked by a terrific store manager: ‘Did you earn your green apron today?’ It really got me reflective and thinking about how I could end each day in the future with that question, and hope that most days, the answer would be ‘yes.’”&nbsp;

The world of coffee&nbsp;

Narasimhan experienced the journey of Starbucks coffee from the first 10 feet to the last, starting from the fields where coffee is grown (such as Hacienda Alsacia above), to roasting plants in the United States and Europe, and Starbucks stores in London, Amsterdam, Japan, and the United States. Along the way, Narasimhan sipped countless cups of coffee. His favorite? Coffee from Guatemala.&nbsp;

Embracing innovation&nbsp;

Whether it’s hand-delivering a new cold foam blender to baristas in Seattle or testing out the virtual reality training for the new Clover Vertica™ in Minneapolis, Narasimhan has taken a hands-on approach to <a href="https://stories.starbucks.com/stories/2022/recipe-for-reinvention-starbucks-unveils-innovations-for-better-customer-barista-experiences/" target="_blank" rel="noreferrer noopener">new technologies to help create a better store experience</a> for partners and customers.&nbsp;&nbsp;

Celebrating with partners is one of the best part parts of the ceo job at Starbucks. In November, he attended his first <a href="https://historias.starbucks.com/en-es/press/2022/starbucks-green-apron-partners-showcase-their-coffee-craft-and-skill-at-the-latin-america-and-caribbean-barista-championship/" target="_blank" rel="noreferrer noopener">Barista Championship</a> at Hacienda Alsacia recognizing Starbucks coffee craft and expertise. In December, Narasimhan traveled to Arizona State University to honor the 850 Starbucks partners in the Fall 2022 graduating class who earned bachelor’s degrees through Arizona State University with the <a href="https://www.starbucks.com/careers/working-at-starbucks/education/" target="_blank" rel="noreferrer noopener">Starbucks College Achievement Plan</a>. In February, he spent time with partners in the Milan Roastery for the debut of <a href="https://stories.starbucks.com/starbucks-oleato-olive-oil-meets-coffee" target="_blank" rel="noreferrer noopener">Starbucks Oleato</a> beverages.&nbsp;

“On a very personal level, I’m going to be very connected to our partners and to our customers in the experience that we deliver – human connection,” Narasimhan said. 

Annual Meeting of Shareholders

Narasimhan led his first Starbucks Annual Meeting of Shareholders, in Seattle, on March 23, joined by board chair Mellody Hobson (right) and the Starbucks senior leadership team, including Zabrina Jenkins (left) and AJ Jones II (second from left). &nbsp;

“These past six months have enabled me to listen, to learn, and to think about what the future of Starbucks looks like and what we need to do to get there,” Narasimhan said. “As the new ceo&nbsp;of Starbucks, I am confident that I know our business and our people well, but I will continue to learn and I'm excited to continue earning my green apron every day.”&nbsp;

As Starbucks welcomes Narasimhan to his new role as ceo at the Starbucks Annual Meeting of Shareholders, we take a look back at the people he has met across the company and around the world.

Laxman Narasimhan’s immersive training – from Starbucks barista to ceo

Photos: Laxman Narasimhan’s immersive training – from Starbucks barista to ceo

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Today, Starbucks hosted its 30th annual meeting of shareholders virtually. Mellody Hobson, Starbucks Board of Directors chair, joined Kevin Johnson, president and chief executive officer, for opening remarks following today’s news that Johnson made the personal decision to retire from Starbucks after 13 years of service.

Following opening remarks, Johnson, joined by several members of the leadership team and green apron partners (employees) from around the world, went on to outline Starbucks continued investments and aspirations for people and the planet, and the company’s optimism for a future rooted in humanity, fueled by innovation, and architected by green apron partners.

Here are the important things to know about today’s Annual Meeting of Shareholders:

Starbucks announces leadership transition

Earlier today, <a href="https://stories.starbucks.com/press/2022/starbucks-announces-leadership-transition/">Starbucks announced that Kevin Johnson intends to retire</a> after a 13-year tenure at the company, including the last five years as ceo. Johnson will transition from his current role effective April 4, 2022 and will continue to serve as a Starbucks partner and special consultant to the company and Board of Directors through September. To ensure seamless stewardship of the company until a permanent successor is named, the Board has appointed Howard Schultz as interim chief executive officer, effective April 4, 2022.

Building on the rich heritage of the company, Johnson established the People Positive, Planet Positive and Profit Positive framework that seeks to create a better world for Starbucks partners, farmers, customers and the communities it serves. He expanded the company’s reach through the Global Coffee Alliance with Nestlé, which now operates in nearly 80 markets, and established and executed the Growth at Scale agenda that significantly increased shareholder value.

Helping customers and partners divert waste from the landfill

Starbucks has spent the last few years testing, learning, and preparing to scale initiatives that help protect the planet as the company looks to a resource positive future. With a focus on waste reduction, Starbucks announced customers will be able to use their own personal reusable cup for every Starbucks visit in the U.S. and Canada – including in-store, in the drive-thru and via mobile order and pay – by the end of 2023. This is a big deal because currently, personal reusable cups are only accepted in-store. By 2025, Starbucks wants to create a cultural movement towards reusables by giving customers easy access to either a personal or a Starbucks-provided reusable cup for every visit.

And because Starbucks knows that putting items in the correct bin has a huge impact on diverting waste from the landfill, the company has also launched a waste and recycling app, developed by partners to navigate the ins-and-outs of recycling guidelines for their local store. Across Starbucks stores in the United States and Canada, there are over 440 unique ways to recycle, and previous to the app’s launch, over 8,000 of our stores were already doing some form of recycling. Learn more <a href="https://stories.starbucks.com/stories/2022/starbucks-innovates-tests-and-learns-from-store-partners-to-achieve-waste-goals/">here</a>.

Recharge yourself and your car at Starbucks

Currently, Starbucks company-operated stores in the U.S. are powered with 100% renewable energy, and now we get to help power our customers cars with renewable energy. Beginning this summer, Volvo electric vehicle chargers, powered by ChargePoint, will be available at up to 15 Starbucks stores along a 1,350-mile route from the Colorado Rockies to the Starbucks Support Center (headquarters) in Seattle. We know infrastructure is the primary reason customers hesitate or decide not to purchase an electric vehicle. By providing charging infrastructure customers can count on, we are hoping to remove that barrier with the added benefit of being able to order your favorite Starbucks beverage while you wait.&nbsp;&nbsp;

Supporting communities around the world and being a People Positive company

Starbucks is committed to being People Positive – a bold aspiration to enhance the well-being of one billion people who connect with Starbucks by 2030 – rooted in opportunity, inclusion, and community. Starbucks, in partnership with The Starbucks Foundation, has committed to a series of announcements to support the People Positive aspiration and strengthen communities around the world, including:

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&nbsp;1,000 Starbucks Community Stores by 2030

As part of the company’s goal to enhance the well-being of all who connect with Starbucks the company plans to open or dedicate 1,000 Starbucks Community Stores by 2030, building on the 150 already open around the globe. These stores seek to uplift communities by offering locally relevant programs and experiences that directly impact the neighborhoods they serve. Starbucks community stores deliver economic opportunity through local hiring and artist collaborations, working with diverse contractors, and creating spaces for people to come together or support local veterans and military families.

A more inclusive and accessible Starbucks Experience

Announced <a href="https://stories.starbucks.com/press/2022/starbucks-paves-way-for-more-inclusive-and-accessible-experiences-in-stores-around-the-world/">earlier this week,</a> Starbucks has committed to implementing physical and digital experiences that meet an elevated standards of accessibility by 2030. These new standards will offer customers more ways to communicate (visually, audibly and tactically) and provide more tools to navigate physical store environments. To advance these standards, Starbucks is testing technology solutions in select store locations including speech-to-text technology that provides a visual display for partners and customers placing or picking up an order, as well as new in-store order boards that update customers when their order is ready.

These efforts build on other accessibility offerings, including free <a href="https://stories.starbucks.com/stories/2021/starbucks-offers-aira-creating-accessible-experience-for-blind-and-low-vision-customers/">Aira</a> service for blind or low-vision customers, large-print and Braille menus at all stores in the U.S. and Canada, and the 11 Signing Stores that Starbucks operates globally, where baristas can connect to customers who are deaf or hard of hearing through sign language.

Listening and learning to elevate the partner experience

Starbucks reaffirmed its commitment to listening, learning, and working with partners to deliver measurable value for partners, customers, and shareholders. Starbucks reiterated its incremental $1 billion investment in wage, training, and benefits to include:

Introducing: Starbucks Clover Vertica Brewer

Starbucks has spent more than 50 years on a journey to perfect coffee and Starbucks is continuing its mission to innovate around coffee equipment and brewing. Starbucks will continue raising the bar on coffee by introducing our new proprietary single cup, on-demand brewer, Clover Vertica™, which reimagines the brewed coffee experience for partners (baristas) and customers by delivering a single cup of freshly brewed coffee with exquisite, beautifully pronounced flavors - in less than 30 seconds. The Clover Vertica™ brewer started rolling out this calendar year.

Woman barista in Navaho patterned mask hands beverage to customer

Here are the important things to know about today's Annual Meeting of Shareholders.

Top things to know about Starbucks 2022 shareholders meeting

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SEATTLE – Starbucks Corporation (NASDAQ: SBUX) today hosted its 30th Annual Meeting of Shareholders virtually. Mellody Hobson, Independent Starbucks Board of Directors chair, joined Kevin Johnson, president and chief executive officer, for opening remarks following today’s news that Johnson made the personal decision to retire from the company after 13 years of service. Johnson, who served on the Starbucks Board since 2009, joined the Starbucks leadership team in 2015 as president and chief operating officer. In 2017, Johnson was named president and chief executive officer. To ensure seamless stewardship of the company until a permanent successor is named, the Board has appointed Howard Schultz as interim chief executive officer, effective April 4, 2022. Schultz will also rejoin the company’s Board of Directors.

“On behalf of the entire Board, I want to express our sincerest thanks to Kevin for his leadership of Starbucks,” said Hobson. “Kevin and the entire executive team stepped up to the challenge of the pandemic and navigated one of the most difficult periods in modern history. The economic certainty provided to partners during the early months of the COVID shut down, as well as during mandatory quarantines, underscores our core values and will be an enduring legacy for the company. During Kevin’s tenure, Starbucks scaled an industry leading digital offering spanning nearly 45 million Starbucks Rewards members in the U.S. and China.” 

“A year ago, I signaled to the Board that as the global pandemic neared an end, I would be considering retirement from Starbucks. I feel this is a natural bookend to my 13 years with the company. As I make this transition, we are very fortunate to have a founder who is able to step in on an interim basis, giving the Board time to further explore potential candidates and make the right long-term succession decision for the company,” said Kevin Johnson. “I have enjoyed every minute of the job and am proud of what we have achieved together. It has been an honor to serve the 400,000 Starbucks green apron partners around the world and I want to thank them for their service, resilience and optimism.”

Following opening remarks, joined by several members of the leadership team and green apron partners from around the world, Johnson went on to outline Starbucks continued investments and aspirations for people and the planet, and the company’s optimism for a future rooted in humanity, fueled by innovation, and architected by green apron partners.

During the meeting, company leaders extended appreciation to Johnson, celebrated the resilience of green apron partners who have continued to serve communities throughout the COVID-19 pandemic, and recognized all partners as agents in the co-creation of the company’s next chapter.

Listening, Learning and Elevating the Partner Experience

Since 1971, partners have been the catalyst of the Starbucks Experience. Rossann Williams, executive vice president, president North America, today reaffirmed Starbucks continued commitment to listen, learn and work together with partners to deliver real, measurable value for partners, customers and shareholders.

“I’m so proud of all we've done these past two years and how our partners inspired the best ideas to lead us through the pandemic,” said Rossann Williams, president of Starbucks North America. “We are just coming out of one of the most complex times of our lives, and I’m proud of how we figured it out together, in service of each other, our customers and our communities.&nbsp;And we are going to use this exact same approach as we build our future, the way only Starbucks can.”

Committing Each Day to a People Positive Company

Virginia Tenpenny, vice president, chief global social impact officer and board member of The Starbucks Foundation, shared during the Annual Meeting that Starbucks is committed to being People Positive – a bold aspiration to enhance the well-being of one billion people who connect with the company by 2030 – rooted in opportunity, inclusion and community.

“Around the world, we continue to listen deeply to our partners to understand their needs and will remain laser-focused on ensuring we are constantly working to enhance every aspect of the green apron experience. This work is never done,” said Tenpenny. “As we enter a new chapter as a global society – and better understand the needs of our partners and communities – there is always an opportunity to do more and a new way to use our scale for good. For us, people positive means impacting all who come into contact with Starbucks with a goal to ignite mutual thriving across all communities.”

Tenpenny shared that Starbucks, in partnership with The Starbucks Foundation, has committed to a series of announcements to support the People Positive aspiration and strengthen communities around the world, including:

In addition, Starbucks introduced <a href="https://stories.starbucks.com/press/2022/starbucks-paves-way-for-more-inclusive-and-accessible-experiences-in-stores-around-the-world/">innovations to its global store portfolio </a>to further strengthen communities and create environments where all feel welcome. This includes committing to open or dedicate 1,000 Starbucks Community Stores across the globe by 2030; and ensuring that physical and digital Starbucks environments meet an elevated standard of accessibility for partners and customers by 2030.

Innovating for a More Sustainable Future

Also during today’s event, Brady Brewer, executive vice president and chief marketing officer, discussed Starbucks aspiration to be a resource positive company – giving back more than it takes from the planet. The company’s planet positive commitment was detailed earlier this week in an <a href="https://stories.starbucks.com/press/2022/starbucks-affirms-commitment-to-a-planet-positive-future-through-innovation-and-learnings-from-store-partners/">announcement</a> highlighting:

With a global test-and-learn approach to meet the company’s 2030 planet positive goals, Starbucks continues to find inspiration from partners who wear the green apron around the world. Both Michelle Burns, executive vice president, Global Coffee, Tea and Cocoa, and Michael Kobori, vice president and chief sustainability officer, joined Brewer to further discuss aspirations and initiatives underway in becoming planet positive.

"Starbucks is spending this year testing innovative ways to reduce waste and reduce our carbon footprint,” said Michael Kobori, vice president and chief sustainability officer. “Some of our best innovations, like the waste and recycling app, come directly from our store partners. Our store partners know their customers and communities best. When we work together with our partners, we find better solutions to create a more sustainable future for our planet and people.”

Reimagining Coffee Craft While Driving Beverage Innovation

Rachel Ruggeri, executive vice president and chief financial officer, previewed the company's continued efforts to innovate coffee craft through store experiences and coffee innovation. 

“At Starbucks, we recognize that one size does not fit all,” said Ruggeri. “Our success has been rooted in how we differentiate ourselves – meeting customers where they need us to be – from the personal connections our partners make with our customers every single day, to our store formats and menu offerings – it’s how we create your Starbucks.”

Building on the company’s continued efforts to raise the bar on coffee, Ruggeri highlighted its beverage innovation, notably in cold espresso and plant-based products, two of the company’s fastest growing categories. Cold beverages accounted for nearly 70 percent of Starbucks total beverage sales last fiscal year – up 20 percentage points over the past three years. Ruggeri also announced the launch of Clover VerticaTM, a new proprietary single cup, on-demand brewer, which will begin rolling out to stores this calendar year. &nbsp;

Delivering Growth at Scale

Ruggeri also discussed the company’s Growth at Scale agenda – noting the importance of being both people and planet positive while growing the business responsibly with focus and discipline. This is what has enabled the company to successfully navigate the pandemic while continuing to differentiate itself. Other key highlights from Ruggeri:

In looking to the future, Hobson notes, “Starbucks has always been a people-focused company guided by our belief that when we invest in our partners, they create the experience that uplifts our customers.&nbsp; That will not change,” said Hobson. “Today, demand for Starbucks is strong and growing. And I strongly believe the relationships built over our coffee make our world better.”

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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 34,000 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 www.starbucks.com.

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of the 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 include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies and plans, as well as trends in or expectations regarding our financial results and long-term growth model and drivers, the anticipated timing and effects of recovery of our business, the conversion of several market operations to fully licensed models, our plans for streamlining our operations, including store openings, closures and changes in store formats and models, expanding our licensing to Nestlé of our consumer packaged goods and Foodservice businesses and its effects on our Channel Development segment results, tax rates, business opportunities and expansion, strategic acquisitions, our future relationship with Starbucks Coffee Korea Co., Ltd., expenses, dividends, share repurchases, commodity costs and our mitigation strategies, liquidity, cash flow from operations, use of cash and cash requirements, 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, future availability of governmental subsidies for COVID-19 or other public health events, 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: further spread of COVID-19 and related disruptions to 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 potential for a resurgence of COVID-19 infections and the circulation of novel variants of COVID-19 in a given geographic region after it has hit its “peak”; 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, including the successful expansion of our Global Coffee Alliance with Nestlé; 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; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business; 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 and other risks detailed in the company 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. The company assumes no obligation to update any of these forward-looking statements.

Long-term non-GAAP EPS growth was not reconciled to the comparable GAAP EPS growth because GAAP EPS is not accessible on a forward-looking basis. The company is unable to reconcile this forward-looking non-GAAP financial measure to the most directly comparable GAAP measure without unreasonable efforts because the company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP EPS in the future but would not impact the non-GAAP EPS. Such items may include acquisitions, divestitures, restructuring, and other items. The unavailable information could have a significant impact on the company’s GAAP financial results.

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The company outlined investments and actions powered by – and for – green apron partners and stores around the world.

Starbucks Showcases Innovation for Growth and a More Connected and Sustainable Future at 2022 Annual Meeting

Starbucks Showcases Innovation for Growth and a More Connected and Sustainable Future at 2022 Annual Meeting of Shareholders

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Today, Starbucks hosted its annual meeting of shareholders where senior leadership and partners (employees) from around the world gathered virtually to reflect on the company’s 50-year history... and look boldly toward the future.

Since its beginning in 1971, Starbucks has been a different kind of company- with people at the center- balancing profitability with social conscience. The 50-year journey has been grounded in a mission to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Staying true to its heritage, Starbucks is looking toward future, reimaging the possibilities ahead.

Here are the Top Things to Know About Starbucks as it Kicks Off its 50th Anniversary Celebrations:

Starbucks is Reimagining the Future, Set to Play a Critical Role in The Great Human Reconnection

From one store in Seattle’s Pike Place Market in 1971, to nearly 33,000 stores serving customers globally, Starbucks has always believed that coffee can help build community and power human connections. This third place, where all are welcome, is more important than ever as the world will start to emerge from COVID-19. “Over the past 50 years, we have built a company that’s about more than coffee,” said Kevin Johnson, Starbucks ceo. “It’s about the human experience, connection and community, and we need that now more than ever.”

Mellody Hobson Begins Her Role as Starbucks Board Chair

Following the announcement of Mellody Hobson’s appointment at <a href="https://stories.starbucks.com/stories/2020/top-things-to-know-about-starbucks-investor-day/">Starbucks Investor Day Conference</a> in December, today marks Hobson’s first day in the role. Hobson, who first joined the board as an independent director in 2005, was appointed to board vice chair in 2018. She assumes the post following the retirement of outgoing board chair Myron (Mike) E. Ullman, III.

Starbucks Creates Moments of Connection and Inclusion, Offering a More Accessible Experience

The company announced several updates that will enhance inclusion and the accessibility of the Starbucks Experience for partners (employees) and customers. On Monday, Starbucks became the first food and beverage retailer to offer a free Aira service for customers at all U.S. Starbucks stores and Siren Retail locations, in partnership with San Diego-based <a href="https://aira.io/">Aira</a> Tech Corp. Through a third-party smartphone service app, Aira connects blind and low-vision people to highly trained, remotely-located agents to provide instant access to visual information. Offering Aira service is part of the company’s ongoing work to improve and enhance the accessibility of physical and digital experiences for Starbucks partners (employees) and customers through inclusive design. Starbucks will also offer new large print and Braille menus in all U.S. and Canada stores this summer, developed in partnership with National Braille Press.

Starbucks Customers to Experience More Innovation with Cold Pressed Espresso

Starbucks is relentlessly focused on providing customers with new and relevant beverages and food. Over the past three years, Starbucks cold beverage business has driven more than $1 billion in sales growth and the company continues to innovate for customers in this space most recently with the launch of <a href="https://stories.starbucks.com/press/2021/starbucks-launches-new-non-dairy-iced-shaken-espresso-beverages-and-oatly-oatmilk/">Iced Shaken Espresso beverages</a> in the U.S.

Leveraging customer insights, the company is focused on delighting customers through new beverage recipes and plans to test Cold Pressed Espresso in a limited number of stores by the end of the year. Originally introduced at the Starbucks Reserve Roastery in Seattle- the company’s pipeline for innovation - this patent-pending technology allows the company to further elevate the customer experience through premium beverage design and unlocks future opportunity in the cold craft coffee category.

“We’ve made great advances in cold coffee innovation in response to the ever-growing customer demand and interest, from Cold Brew, to Nitro Cold Brew to the newest Iced Shaken Espresso beverages,” said Luigi Bonini, senior vice president, global product and Research &amp; Development at Starbucks. “The method of cold pressing espresso to order, which tastes exceptionally smooth, full-bodied and sweet, has opened up so many exciting possibilities for the future of cold craft coffee recipes.”

Coffee Leadership Continues at Starbucks

As part of the <a href="https://stories.starbucks.com/stories/2020/starbucks-solidifies-pathway-to-a-planet-positive-future/">company’s commitment</a> to be a resource positive company, Starbucks announced a new goal to achieve Carbon Neutral Green Coffee and conserve water usage in green coffee processing by 50% by 2030. This commitment builds on Starbucks work to <a href="https://stories.starbucks.com/press/2020/cafe-practices-starbucks-approach-to-ethically-sourcing-coffee/">source coffee responsibly</a>,&nbsp;for the betterment of people and planet, while we also work to empower farmers, improve their livelihoods, and positively impact their communities, all with the aspiration of ensuring a <a href="https://stories.starbucks.com/press/2019/building-a-sustainable-future-for-coffee-together/">sustainable future of coffee</a>.&nbsp;&nbsp;&nbsp;&nbsp;

Starbucks Continues to Address the Pay Gap

Starbucks shared that last year it once again achieved and maintained 100% pay equity by race and gender for similar roles in the U.S., and 100% gender equity in pay in China, Canada, and other company operated global markets including Austria, Great Britain, Italy and Switzerland. Learn more about reasons for the gender pay gap and the best practices and tools Starbucks uses to close the gap <a href="https://stories.starbucks.com/press/2020/how-starbucks-is-addressing-the-pay-gap/#:~:text=Starbucks%20is%20committed%20to%20100,equity%20for%20Starbucks%20partners%20globally.">here</a>.

The Starbucks Foundation Announces First Nonprofit Recipients of Grants to Support BIPOC Youth

Building on a longstanding commitment to advancing opportunity for all, The Starbucks Foundation committed to invest $5 million in nonprofits that serve Black, Indigenous and People of Color (BIPOC) youth. As a next step in this initiative, today The Foundation announced the first group of grant recipients: Big Brothers Big Sisters of America, Boys &amp; Girls Clubs of America, City Year, Junior Achievement USA and The National Mentoring Partnership (MENTOR). Across these organizations, The Starbucks Foundation will support initiatives and programs that focus on Diversity, Equity, and Inclusion practices, youth mentorship and leadership development, and life skill building that include addressing financial health and mental health. 

“At Starbucks, we believe it is our responsibility to build bridges and advance social and racial equity on behalf of our partners and communities,” said Virginia Tenpenny, chief social impact officer at Starbucks and executive director of The Starbucks Foundation. “We are honored to partner with nonprofits that aspire for thriving and equitable communities, and which have decades of experience empowering people. The Starbucks Foundation will continue supporting programs that address systemic barriers to equitable outcomes and can contribute to closing the racial opportunity gap.”

The news follows the rollout of&nbsp;$1.5&nbsp;million&nbsp;in&nbsp;<a href="https://stories.starbucks.com/press/2020/the-starbucks-foundation-awards-neighborhood-grants-to-advance-racial-equity/">Neighborhood Grants</a>&nbsp;from The Starbucks Foundation in October, focused on supporting organizations that are Black-led and/or serve Black and Indigenous communities and are dedicated to promoting economic mobility and opportunity, health and social services and youth.

Starbucks China Set to Open Coffee Innovation Park in 2022 to Further Sustainability Commitments

Next year, Starbucks will open its <a href="https://stories.starbucks.com/asia/stories/2020/starbucks-unveils-bold-vision-for-china-coffee-innovation-park/">Coffee Innovation Park</a> in China, one of the first sustainable roasting plants in Starbucks global network, marking another step towards the company’s bold aspiration to become resource positive and give more than it takes from the planet. This next-generation facility will showcase innovation in smart supply chain operations, state of the art technologies and an immersive Experience Center that will highlight Starbucks sustainability practices at every chapter of the bean-to-cup coffee journey.

In case you missed it, you can watch Starbucks 2021 Annual Meeting of Shareholders here.

Certain statements contained in this press release are “forward-looking” statements within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “continue,” “could,” “expect,” “intend,” “may,” “plan,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to: the anticipated timing, scope and effects of our initiatives and our continued investment plans. These forward-looking statements do not represent historical data, are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to the risks detailed in the company filings with the Securities and Exchange Commission, including the “Risk Factors” sections of Starbucks Annual Report on Form 10-K for the fiscal year ended September 27, 2020. The company assumes no obligation to update any of these forward-looking statements.

Barista in black cap and facial covering waves as he opens the door to Starbucks cafe

Here are the top things to know about Starbucks as it kicks off its 50th anniversary celebrations.

Starbucks celebrates its 50th anniversary and looks toward a future of endless possibility

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From one store in Seattle’s Pike Place Market in 1971, to nearly 33,000 stores serving customers globally, Starbucks has always believed that coffee can help build community and power human connections. This third place, where all are welcome, is more important than ever.

By Kevin Johnson, president and ceo:

Starbucks Annual Meeting of Shareholders typically presents a moment of reflection. And this year, perhaps more than any other, that reflection has led me to one place: 1912 Pike.

It was there – 50 years ago – where the vision for a different kind of company began.&nbsp; With just one store.&nbsp;

For Starbucks, I have always believed it is my responsibility to have the wisdom to know what to honor and preserve from past, while at the same time having the courage to boldly re-imagine our future.&nbsp; I believe we must stay true to the foundation of this great company — to our mission, grounded in humanity — and to our culture of warmth and belonging. At the same time, we must look boldly to the future, always evolving the third place for our changing world.&nbsp;

I also believe as all of humanity emerges from this pandemic and as we advance on the journey for social justice and equity, we are on the precipice of another seismic shift as people once again seek human connection. Starbucks was built for connection. We were built for this moment. And for the moments to come.&nbsp;

With more than 400,000 green apron partners around the world, we are grounded in the belief that for-profit companies need to serve a purpose beyond the pursuit of profit. We have shown that a for-profit company can serve and create value for all stakeholders. We are a company that aspires to give back more than we take when it comes to people and the planet while creating prosperity for all who connect with Starbucks.

We are a company that will never underestimate the power of One. One idea. One store. One Mission. With one goal. To be a different kind of company. 

Black-and-white Starbucks Pike Place original store exterior

From one store in Seattle’s Pike Place Market to nearly 33,000 stores globally, Starbucks has always believed that coffee can help build community and power human connections.

Never underestimate the power of one

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From one store in Seattle’s Pike Place Market in 1971, to nearly 33,000 stores serving customers globally, Starbucks has always believed that coffee can help build community and power human connections.

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This morning, Starbucks chief executive officer Kevin Johnson hosted the company’s Annual Meeting of Shareholders. At last year’s meeting, he walked out onto a stage to the cheers of 4,000 people. This year, he addressed a camera to reach the thousands of people watching from home.

The virtual format and abbreviated length of the meeting are unusual, at least for Starbucks, but also reflect a unique moment for the world, as more and more people are feeling the health, economic and social impacts of COVID-19. 

“If you have attended a Starbucks annual shareholder meeting in years past, you’ll notice immediately today’s meeting is a little different,” Johnson said. “Today we are all in a very unique moment in time. The world is grappling with a health issue of enormous scale and great human impact as we navigate COVID-19. And I’m sure each of you are taking actions in the best interest of your family and your community. At Starbucks, we are a family. We are always thinking of people – of each other – first. It’s why we call each other partners.”

Here are five important things to know about today’s Annual Meeting of Shareholders:

1. ‘Health and well-being’ is priority one

Johnson began the meeting by reiterating to the company’s customers, partners and shareholders his top priorities in navigating the current health crisis. 

“Navigating this challenge requires Starbucks partners to make hundreds of <a href="https://stories.starbucks.com/stories/2020/letter-to-customers-changing-operations-as-we-navigate-covid-19/">real-time decisions</a> each day in 82 markets around the world,” Johnson said.

They do so by using three principles, he said. First, the health and well-being of partners is the number one priority. Second, the company will continue to partner with local health officials and governments to help make a difference as we work to contain the virus. Third, Starbucks seeks to show up as a positive and responsible member of each community it belongs to.

“We prioritize these three principles over everything else, including any near-term economic implications,” he said. “We do this knowing this situation is temporary and Starbucks is resilient.”

2. Painting a future rooted in caring for people and growing its business responsibly

As Starbucks approaches its 50th anniversary in 2021, Johnson said the company will pursue “a bold vision that will modernize Starbucks while staying true to our heritage and what we stand for.”

The company will continue to invest in people, its partners, so they can in turn uplift customers and the communities they serve. For instance, the company this week announced a new partnership with mental health provider Lyra Health and <a href="https://stories.starbucks.com/press/2020/starbucks-transforms-mental-health-benefit-for-us-employees/">a new benefit</a> to provide partners and their families with 20 free counseling sessions each year.

Starbucks will continue to pursue profit while “redefining what it means to be a commercial enterprise by embracing our role and responsibility in society and humanity.” Starbucks also wants to be a planet positive company, as reflected in its <a href="https://stories.starbucks.com/stories/2020/5-things-to-know-about-starbucks-new-environmental-sustainability-commitment/">latest announcement</a> about environmental sustainability.

“All this together begins to paint our vision for the future,” Johnson said. “People positive, profit positive and planet positive, working in harmony with our partners, the heartbeat of Starbucks, to create a different kind of company for the next 50 years.”

3. Digital delivers for Starbucks and its customers. Literally

Starbucks continues to <a href="https://stories.starbucks.com/stories/2020/navigating-through-covid-19/">respond quickly to COVID-19</a> and to temporarily modify its long-held role as a community gathering place. Most recently, the company moved to a “to go” model for stores in the U.S. and Canada. Digital ordering and delivery options means customers can continue to enjoy Starbucks in other ways, such as ordering ahead through the Starbucks app, going through the Drive Thru and using Starbucks Delivers. Starbucks Delivers, in partnership with Uber Eats, will be available nationally by the end of April.

4. In resilient China, the future of coffee is bright

In China, with the number of new COVID-19 cases slowing, Starbucks shared that 90 percent of its stores are open across the country and the company <a href="https://stories.starbucks.com/stories/2020/a-message-from-starbucks-ceo-china-partners-make-us-proud-as-stores-reopen/">continues to assess the ongoing impact</a>.

“Partners in China have demonstrated Starbucks resiliency at its best,” Johnson said. “As we continue to reopen our stores, we are helping people in every community heal as they deal with the emotional toll this has taken on them. They, too, are adapting to the realities of what they have been through. And today, over 90 percent of Starbucks stores in China are open – under modified hours and conditions – all offering some degree of connection and all allowing partners in China to do what they love.” 

Starbucks is committed to growth in China, including the aspiration to have 6,000 stores by 2022 and the construction of a $130 million Coffee Innovation Park outside of Shanghai with a roasting plant, warehouse and distribution center – the largest Starbucks manufacturing investment outside the U.S.

5. Strong coffee, strong business in fiscal year 2019

Johnson said fiscal year 2019 was one of great progress for the company, noting it as a year of many great successes and solid performance. Today, Starbucks has grown to more than 32,000 stores worldwide, with over 400,000 partners serving 100 million customers a week.

Starbucks has the financial resources, strength and&nbsp;resilience&nbsp;to manage through this extraordinary time, guided by our Mission and Values, he said. 

“We have a strong balance sheet, great partners, and the resolve to get through this and come out stronger because of it,” Johnson said. 

And next year? Next year’s shareholder meeting will be a celebration of that. 

“A year from now, the resilience we are demonstrating today will be rewarded with the excitement and optimism of the future,” Johnson said. “We will gather together and it will be a big show with thousands of people celebrating all that Starbucks stands for and looking to the future with an attitude of optimism knowing that Starbucks is resilient.”

Editor’s note: Forward Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as “anticipate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “remain,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These statements include statements relating to: the strength, resilience and outlook of our operations, business and brand; increasing shareholder returns; our commitment to strengthen the specialty coffee industry and the long-term opportunity in China; our ability to grow our business in a sustainable and responsible way and our ability to leverage and grow digital experiences. These forward-looking statements are based on currently available operating, financial and competitive information and are subject to a number of significant risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors, including, but not limited to: 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, including the integration of the East China business and the successful expansion of our Global Coffee Alliance with Nestlé; our ability to obtain financing on acceptable terms; the acceptance of the company’s products by our customers and evolving consumer preferences and tastes; changes in the availability and cost of labor; the impact of competition; inherent risks of operating a global business; the prices and availability of coffee, dairy and other raw materials; the effect of legal proceedings; the disruption to our business related to COVID-19; the effects of changes in tax laws and related guidance and regulations that may be implemented and other risks detailed in the company filings with the Securities and Exchange Commission, including the “Risk Factors” section of Starbucks Annual Report on Form 10-K for the fiscal year ended September 29, 2019 and of Starbucks Quarterly Report on Form 10-Q for the fiscal quarter ended December 29, 2019. The company assumes no obligation to update any of these forward-looking statements.