Intention to fully license Starbucks operations
with longstanding business partner, Alsea, in France, the
Netherlands, Belgium and Luxembourg
Company introducing a new support structure in
the EMEA head office to better serve an increasingly-licensed
regional strategy; Intends to close support centre in Amsterdam;
Coffee roasting facility to remain in the Netherlands
Will continue to invest in growing a healthy
store portfolio; company-operated stores to serve as innovation
centres for EMEA region
Starbucks Coffee Company (NASDAQ: SBUX) today announced our
intention to fully license Starbucks operations in
France, the Netherlands, Belgium and Luxemburg to its longstanding
strategic partner Alsea, S.A.B. de C.V. (BMV: ALSEA), the largest
independent chain restaurant operator in Latin America.
Under this proposal, which is subject to relevant local laws,
and discussions with relevant employee representatives, Alsea will
have the rights to operate and develop Starbucks stores in these
markets, building on Starbucks regional growth agenda that drives
value through strategic licensed relationships. At the same time
the company would introduce a new support structure in its head
office in London to better serve an increasingly licensed
strategy.
“We’re very pleased to build on our 16-year history with Alsea,
a long-term strategic partner to Starbucks, with the intention to
license our business operations in France, the Netherlands, Belgium
and Luxemburg,” said John Culver, group president, Starbucks
International, Channel Development and Global Coffee & Tea.
“These strategic moves would enable us to further accelerate growth
across these markets as we position Starbucks for long-term success
moving forward.”
Expanded Licensing Agreement with Alsea
The longstanding strategic business partnership between
Starbucks and Alsea began in 2002, when together they opened Mexico
City’s first Starbucks store. Today, Alsea operates more than 900
Starbucks stores in Argentina, Chile, Colombia, Mexico and Uruguay,
employing more than 11,500 partners (employees) across the
five markets. At the close of this transaction, Alsea would expand
its relationship with Starbucks outside of Latin America to Europe
and would partner with Starbucks in nine markets globally.
"Through the years, we have learned how to successfully bring
the Starbucks experience to diverse consumers in several countries;
we have a deep understanding of the company’s values as well as the
critical relationship between barista and customer which results in
the unique and powerful connection that makes Starbucks a preferred
brand. We plan to do the same in these geographies leveraging the
talent and scale that we have built in the region. We are honored
and thankful to Starbucks leadership for trusting Alsea with this
important opportunity. We look forward to finalizing our
discussions and working in close partnership with the European team
to bring long-term profitable growth,” said Renzo Casillo, Managing
Director of Alsea.
Starbucks opened its first Paris store in 2004 on the iconic
Boulevard des Capucines. Subsequently, the brand came to the
Netherlands, Belgium and Luxemburg between 2008 and 2016, creating
more than 3,100 jobs at more than 260 stores across the four
countries.
Support Function Restructure
With the goal of driving sustained, long-term and profitable
growth in EMEA through strategic licensed partnerships, Starbucks
intends to restructure its back-office support functions. The
result will be a more impactful team that draws on global best
practices to support licensees in optimising operations. This
includes introducing a new support centre structure in its head
office based in London – which has served as the company’s regional
headquarters since 2014 – as well as the intention to close its
support centre in Amsterdam. The company will continue to operate
its manufacturing site in Amsterdam which roasts and packages its
high quality, ethically sourced Arabica coffee for EMEA.
“This new structure will be the culmination of a long and
thoughtful process to simplify our organization so that it can best
service our increasingly licensed store market strategy while
continuing to embed our mission and values in how we operate
everyday,” said Martin Brok, president, Europe, Middle East and
Africa, Starbucks.
Investing in Customer Experience
Starbucks opened its first store in Europe 20 years ago, and it
has since grown in partnership with strategic licensees to more
than 3,200 stores in 43 markets across Europe, the Middle East and
Africa. Recently, the company opened a Starbucks Reserve Roastery
in Milan, elevating the customer experience and serving as a
pipeline of innovation for core stores. These innovations in retail
will be part of the company’s ongoing evaluation of a healthy store
portfolio with the aim to scale successful programmes across the
whole of the EMEA estate.
About Starbucks
Since 1971, Starbucks Coffee Company has been committed to
ethically sourcing and roasting
high-quality arabica coffee. Today, with more than 25,000
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 our stores or
online at news.starbucks.com and Starbucks.com.
Forward Looking Statement
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,” “expect,” “believe,” “could,”
“estimate,” “feel,” “forecast,” “intend,” “may,” “plan,”
“potential,” “project,” “should,” “will,” “would,” and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These statements are based on information
available to Starbucks as of the date hereof, and Starbucks actual
results or performance could differ materially from those stated or
implied, due to risks and uncertainties associated with its
business. These risks and uncertainties include, but are not
limited to, fluctuations in the U.S. and international economies
and currencies, our ability to preserve, grow and leverage our
brands, 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, the acceptance of the
company’s products by our customers, the impact of competition, as
well as general economic and industry factors such as coffee, dairy
and other raw materials pricing and availability, successful
execution of internal performance and expansion plans, the impact
of initiatives by competitors, the effect of legal proceedings, and
other risks detailed in the Company’s filings with the Securities
and Exchange Commission, including the “Risk Factors” section of
the Company’s Annual Report on Form 10-K for the fiscal
year ended October 1, 2017. The Company assumes no obligation
to update any of these forward-looking statements.
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