As is tradition, I am writing a roundup from the annual Starbucks Shareholders’ Meeting held today, March 21, 2012.
Before I talk about the presentation by the Starbucks executive team, I would like to mention the slide show before the meeting began. As I sat waiting for the meeting to start, I enjoyed the slide show presentation. I had only my phone with me, and didn’t have a totally unobstructed view of the slides, but this gives you an idea of what the audience watched, awaiting the beginning of the meeting:
There were a number of presentations throughout the meeting. Here are just a few snippets:
- Jeff Hansberry, the President of Starbucks Channel Development,talked about the launch of Refreshers in the CPG category. ((I previously wrote about them here.)) Refreshers freshly-made in Starbucks stores launches July of 2012.
- Jeff Hansberry also demonstrated the new Verismo automatic home-use espresso machine. He described the Verismo as a “game changer,” and said that the premium single cup area is a fast-growing, 8 billion dollar market opportunity.
- Also from Jeff’s presentation, he stated that Via Ready Brew has become a 250 million dollar business over the past two years, and is now available in 12 markets.
- Jeff talked a little about the growth of Seattle’s Best Coffee and the new drive-thru concept SBC stores. He mentioned that at SBC one can order a caramel pretzal mocha latte, which certainly sounds like an interesting drink idea. ((I would have liked to have heard more about Seattle’s Best growth. One thing that makes Starbucks part of the cultural wallpaper of the U.S. is the “universal experience” which is driven by having so many stores and a high degree of consistency. Seattle’s Best Coffee lacks that. Most folks in the U.S. (likely) have never been to an SBC store, and do not have one near them. Even worse, Seattle’s Best has fewer stores now than previously, largely due to the closure of all the Border’s Books stores. Just as a reminder, my Seattle’s Best fan blog is here.))
- Arthur Rubinfeld talked at length about Evolution Fresh. Since I just wrote about Evolution Fresh yesterday, I won’t repeat that again. Arthur managed to say the city name “Bellevue” numerous times within his short presentation. It was very much as if he was subliminally saying, “What are you doing here? Get yourself to Evolution Fresh in Bellevue!” ((By the way, as many folks know, this blog generates a lot of email. One of my readers is already looking for collectible Evolution Fresh cards! I thought that was great!))
- There was an announcement about a new “Vote. Give. Grow.” Starbucks Card which will allow registered card holders to vote on how 4 million dollars will be invested in a select number of non-profit organizations. The new card starts on April 1, 2012. ((Sorry, I don’t recall which executive made that announcement.))
- During the Q & A session, Howard Schultz revealed that Starbucks has been looking intently for high quality mug manufacturers in the United States to partner with. It seems as though there are very few options because most mug manufacturing has been shipped overseas. Starbucks found a partner in Ohio, and hopefully sometime during summer 2012, “made-in-the-USA” ceramic mugs should appear on Starbucks’ shelves.
- Michelle Gass, President of Starbucks Europe and Middle East, rocked the stage with high energy about the “renaissance” of the Starbucks European experience. She talked about the change to the UK standard recipe for a tall latte, which now automatically comes with two shots in the U.K. She also announced that in France, Starbucks is offering two different espresso options. From what I understand, in France, a customer can order a “lighter” espresso roast shot. I haven’t seen much about this in the news, but it is briefly mentioned in this article here.
- Michelle talked a bit about the new Amsterdam concept store. It has a Clover, and from the photos shown, it appears that the baristas are using some kind of manual espresso machine. The store’s design is stunning. ((I would give my right arm for a trip to Amsterdam to go visit this store, but it’s not in my budget.))
- My phone’s battery died not too long into the meeting, but I did get this photo of Michelle. (Move over Howard. Michelle rocked. ;))
Hope you enjoyed this window into the annual meeting! What are your thoughts?
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Refreshers! I can’t believe it!
I can’t wait to see if more development happens with Tazo, too! With all of the focus on Health & Wellness, I wouldn’t be surprised if there’s fun things brewing (steeping?) with Tazo. One can dream, right?
I bet you’re right, Alex! I think there’s a lot of unlocked opportunities with TAZO!
I need to re-watch it because I started napping in the middle of the webcast… it was a long day at work!!! The reverend or preacher or priest, maybe Dr. Butts, who spoke was awesome! I loved the first moments of the meeting about investing into the communities we do business in.
I woke up right in time for the Q&A’s. I love Howard’s response to the second Marriage Equality statement. He said that leadership did what felt right, and made partners proud to work for Starbucks. And he’s right! I am so proud to work for this company so it can invest into its communities, locally, and at coffee farming communities…
I’m sad you didn’t get to ask anything. What would your question have been?? You usually have good ones thought out.
@Cam – There were so many amazing things to talk about that I could only do tiny snippets! The Reverend was amazing! And I too was very very proud of how Howard answered the questions about gay marriage. Obviously, I am totally in favor of marriage equality.
@cam and Alexander – I have a very short follow up article planned for tomorrow, and then a break in posting for a while. I am on vacation the last week of March, so these articles gotta last a week. 😉
As to my question: I have a number of questions about the Starbucks Card. It feels to me like that is a bit of weak spot for Starbucks. 5 million members, and 2 million are gold. One in four transactions are now with the card. I’d like to know honestly if Starbucks has found the card to be taxing in terms of the expense of managing that unwieldy of a program, and what can be done to improve partner education about the card. I say the same things over and over again, but I’ve met many wonderful, experienced partners, who know coffee, make a great drink, and are passionate about the brand but really cannot articulate what is a green level perk, and what is a gold level perk, and do not realize that that gold card is not required to receive any kind of benefit.
But I probably would not have asked all that because it is too long of a question, and too convoluted. Someday, I want to sit down with someone in the card department.
I guess I would have done a soft-ball question: As you know Starbucks re-vamped their community service page just this year, and I’d love to know how they plan on pushing it – I mean bringing awareness to their community service site. A lot of partners don’t use – I just think there is a great opportunity out there, and it hasn’t been fully maximized.
On a very personal note, if I could I would send Howard Schultz on a trip to Kyoto to see Noboru Sakamoto. It worries me so much that I have not heard from him. I don’t have any way to reach him. He went into the hospital at the end of December, and he told me he really wanted to meet Howard Schultz (while he still can!), and on his many trips out here to Seattle, he tried several times. But it appears that it is impossible to drop into the SSC and get some time with Howard. Given his health, who knows what’s happened now. I have an address for him, but that’s it. He loves Starbucks so much! The Pike Place Starbucks has a number of souvenirs that came from him, including the adorable Starbucks Japan Bearista Bear. It just makes me very sad to think about. Noboru is such a sweet guy!
Excited to see how you all like the refreshers. I look forward to a berry hibiscus with no water sub lemonade to survive the Arizona summer heat(like living in a oven).
It will be exciting to see what this year has in store for us. We’ve had a lot of change in the past couple years, but I feel like we aren’t losing who we truly are as a company.
Melody wow what a great review of the meeting. First, I too hope Nobu is feeling better and my thoughts of good health go out to him. Second, this meeting sure covered alot of ground as I expect it needed to. I hope SB expands to perhaps have stores become more connected to the communities they are in and the customers. Third, I hope they revamp the rewards system and make a customer feel like having a gold card is worth it. That would be great if you could sit down with a card dept representative. You should do a blog piece on questions your readers would want to ask if they had a chance to sit down with someone from rewards/card dept.
Great pictures Mel. It almost makes me feel there. As a new partner, even though I dont hold stock yet, U take a new interest in all things Starbucks. Also, I love that you have the history lessons grouped. Maybe you should put the Cafe Verona article there. It included the fact that it was originally called 80/20 blend. That I think is the coolest to know those facts. All the other partners were impressed, they hadn’t known that. Please continue with your awesome knowledge.
@Kienan – Thank you! You can watch the replay of the annual meeting at the Starbucks investor relations site.
Here’s the Verona article:
http://www.starbucksmelody.com/2010/02/04/starbucks-caffe-verona/
^ I wrote that two years ago. Funny, but I’ve seen some of that lifted on other websites, and I recognize my editing. I got an email from a partner about the history of Verona, and then I edited it a little, adding in a few words for emphasis, and then there it is! I like the Verona article a lot!
I love the Verona article as it is my most beloved coffee. 🙂
So excited about all the stuff coming up! Mostly about Refreshers, I just know my customers will love them! (I have a ton of runners who are regulars, and we’re at the finish line of MANY races throughout the year) I’m also glad it’s been announced so I can talk about it!
@Michelle – Just want to say that I am with you, and excited about what’s coming up soon. I’d love to know more about the “Vote.Share.Grow” card!
@Diele – I think the Verona article should be required reading for every partner. 😉 At the annual meeting, there was a short video clip about a couple in Japan that got married. The guy was a partner in Starbucks Japan, and did a special “Verona” coffee tasting actually at his wedding since Verona is the “coffee of love.” It was incredibly sweet!!
Melody – Like many of the economy boosting initatives, I imagine the Vote Share Grow card will be US only. Ever since I first heard about them, I keep hoping the Verisimo machines will be sold in store, and that we’ll have them in time for Christmas. I just know that they will be a gigantic hit.
I know the majority of people love Verona…I just don’t get it. Every time we do a coffee tasting with it, I have to fight the urge to describe it as what it truly tastes like to me. Coffee that’s been sitting too long in an old school restaurant. Burnt and full of a cigarette smoke.
Oh, I forgot. A while back there was speculation about coconut syrup coming back for the summer. It was on my roasting plant order this week, so it looks like it definitely is.