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Starbucks unveils new initiatives, acquisition
March 19, 2008
SEATTLE — With more than 6,000 shareholders in attendance, Starbucks Coffee Co. has unveiled a series of customer-facing initiatives at its annual meeting of shareholders. The announcements mark the next stage of Starbucks transformation following nearly three months of work that began with the return of Howard Schultz as CEO on January 7.
Beyond the five initiatives the company said it would deliver, Schultz also announced that Starbucks had signed an agreement to acquire The Coffee Equipment Co. and its Clover brewing system. The Coffee Equipment Co. is a privately held coffee-equipment developer and manufacturer based in Seattle. Terms of the transaction were not disclosed.
At the annual meeting, Starbucks unveiled the following new initiatives focused on improving the current state of the U.S. business, re-igniting the emotional attachment with customers and making foundational changes for the long term:
- A proprietary and revolutionary in-store Clover brewing system, set to rollout in select domestic and international markets. Currently, they are in use in some Seattle and Boston area stores;
- A complete reinvention of brewed coffee in-store, brought to life by baristas who will scoop and grind a new unique coffee blend;
- The introduction of a new state-of-the-art espresso system;
- The first phase of a Starbucks Card Rewards program, rewarding registered cardholders and providing unique new benefits when using their cards in Starbucks stores;
- The launch of MyStarbucksIdea.com, Starbucks first online community; and,
- An expanded relationship with Conservation International.
"There have been times in our history where others questioned whether we had reached our limit – yet time and time again, we have responded by reaching even greater heights," Schultz said. "We hope we've given everyone a reason to believe – not only in the endurance of the Starbucks legacy, but also in our ability to continually raise the bar for what it means to be the world's leading roaster and retailer of specialty coffee."
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