SEATLE — During its biennial Investor Day, which was held virtually on December 9, Starbucks reaffirmed its focus on sustainable practices and care for employees as it pursues continued growth.
“We are a purpose-driven company with a mission grounded in the human experience as we seek to have a positive impact on both people and the planet, while profitably growing our business,” says Kevin Johnson, CEO, Starbucks. “Over the past two years, we have further streamlined the company, sharpened our focus on accelerating growth in our two lead markets of the U.S. and China and expanded our global reach through the Global Coffee Alliance with Nestlé while increasing returns to all of our stakeholders. Looking ahead, coffee remains a very large and attractive market that is growing globally. We are focused on growing category share and believe Starbucks is better positioned than ever for continued success.”
The company’s leadership team highlighted care for its employees as a key building block of the company’s strategy, alongside a continued focus on creating uplifting experiences for customers while playing a positive role in communities and neighborhoods worldwide.
The presentation also included the announcement of deeper investments in eco-friendly operations, regenerative agricultural practices and environmentally friendly menus. This includes:
• an intent to support the Dairy Net Zero Initiative, a partnership with the U.S. dairy industry to achieve net-zero greenhouse gas emissions improvements in water quality on farms
• The rollout of oat milk nationwide in the U.S.
• a $50-million investment in The Global Farmer Fund, providing access to capital so coffee farmers can use these funds to strengthen their farms and farming practices
• a Diversified Renewable Energy Portfolio, aiming to offset 50 per cent of company-operated roasting and beverage-production sites and electricity consumption in the U.S. by 2022 through Starbucks first supply-chain Virtual Power Purchase Agreement with a solar farm in Virginia
Starbucks also outlined the key ways it has adapted its business for the short- and long-term implications of COVID-19 and the effect it’s had on consumer behaviour. Johnson shared how Starbucks continues to amplify innovation that elevates customer experiences, creates exciting new beverage platforms and expands digital customer relationships to capitalize on five shifts in consumer behavior:
• the fundamental need to be seen and experience a feeling of connection to others
• seeking out experiences that effortlessly fit their lifestyle
• appreciation of consistent experiences
• desire for high-quality and sustainable products and experiences that support the well-being of people and the planet
• increasing loyalty to brands with strong values
“As we approach the 50th anniversary of Starbucks in 2021, we honour our past while looking to the future with a long runway of healthy growth ahead,” says Johnson. “We are well positioned to invest in the right areas to strengthen our competitive advantage and drive consistent, sustainable growth for decades to come. We will do this while staying true to the mission and values that built this great company. With Starbucks partners at our core, we believe our purpose extends far beyond the pursuit of profit, with an aspiration to positively impact the planet we all share and the people who connect with Starbucks.”
