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As I step down as interim ceo of Starbucks, I am leaving you with this letter, written on the sunset of my last day as ceo for all of you to read on the morning of this new era. This is not a letter with advice. Everything you need to know resides inside of each of you.

What I want to write to you about is the love and responsibility for our company that we all share. Today, I am entrusting you all with Starbucks – something that holds a place in my heart second only to that of my beloved family.

Starbucks truly has been my life‘s work – but more than that, it’s always been about the lives of the millions of partners over the years who have proudly worn the green apron and it’s about the hundreds of thousands more who will join Starbucks in the years to come. It’s about every customer who comes through our doors. It’s about the communities our stores call home. Our company is like a river – the stewards of it will change over time, but it’s always growing and changing, carving a new path and moving forward to something better.

As I step away, I leave you all as the stewards, in service of all of our partners. They are the heart and soul of our company – the living embodiment of human connection. Through the years, I’ve seen over and over the profound impact our partners have on our customers, from a new parent whose first outing is to a Starbucks to introduce their baby to their favorite barista, to a store where partners learned sign language to better serve a deaf customer, to a widower who said that when he goes to his Starbucks, it may be the only time all week someone greets him by name. Our partners are making a difference in millions of lives a day. Serve them well.

I want to acknowledge that there are times when the responsibility for our partners, customers and communities around the world will feel heavy. But as partners, know that you are not shouldering the responsibility alone. Lean into one another – you will find support everywhere, from the boardroom to partners in plants to store managers to the newest baristas. Our partners have been teaching me for more than 40 years. They will help you all continue to earn your green apron every day.

And, importantly, lean into the joy. There is so much joy. Every single interaction that we have as partners and that we have with customers is an opportunity for meaningful connection. It adds up to a limitless capacity for joy, love and support, with the center being Starbucks. Remember that.

As I turn Starbucks over to you now, know that you have my utmost confidence, trust and love. You all are the future of Starbucks.&nbsp;The world needs Starbucks – and Starbucks needs all of you.

The privilege and honor of being part of Starbucks has been the gift of my lifetime. I know it will be yours as well.

“As I step away, I leave you all as the stewards, in service of all of our partners. They are the heart and soul of our company – the living embodiment of human connection,” wrote Howard Schultz to the senior leadership team on the eve of Laxman Narasimhan’s first day as Starbucks new chief executive officer.

‘You are the future of Starbucks’: Howard Schultz’ letter to leaders as he steps down

Starbucks Canada

https://stories.starbucks.ca/en-ca/press/2023/you-are-the-future-of-starbucks-howard-schultz-letter-to-leaders-as-he-steps-down/

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SEATTLE – Starbucks (NASDAQ: SBUX) announced, effective today, Laxman Narasimhan has assumed the role of chief executive officer and will join the company’s board of directors. Narasimhan was named incoming ceo on <a href="https://stories.starbucks.com/press/2022/starbucks-names-laxman-narasimhan-as-next-chief-executive-officer/">September 1, 2022</a>, succeeding company founder and now former ceo, Howard Schultz.

Following the global search for the new leader of Starbucks, Narasimhan joined the company as incoming ceo on October 1, 2022, bringing nearly <a href="https://stories.starbucks.com/leadership/laxman-narasimhan/">30 years of experience</a> leading global consumer goods businesses and advising retail, grocery, restaurant and e-commerce companies. Over the past five months, he has embarked on a unique immersion experience, traveling to work with partners (employees) in over 30 stores, manufacturing plants and in support centers around the world, earning his barista certification along the way. He became immersed in the reinvention plans for the company led by Schultz who returned as interim ceo effective April 4, 2022.

Since Schultz returned last year, Starbucks unveiled a company-wide reinvention strategy and continued to deliver on more than $1 billion in investments in retail partners and stores for prioritized areas such as increased pay and sick time accrual, new financial well-being benefits, modernized training and collaboration, store innovation and equipment and the celebration of coffee.&nbsp;The company saw a 47 percent stock price increase since the Q2 FY22 earnings call through the Q1 FY23 earnings call, and market cap growth of approximately $40 billion during that same time. The company also delivered 50 percent in Total Shareholder Return in this time period, far outpacing the S&amp;P 500.&nbsp;Starbucks was also most recently named the most valuable restaurant brand for the 7th consecutive year by <a href="https://brandirectory.com/rankings/restaurants/" target="_blank" rel="noreferrer noopener">Brand Finance</a>.

Schultz shared a letter to the company’s senior leadership team on the eve of the announcement – viewable <a href="http://stories.starbucks.ca/en-ca/press/2023/you-are-the-future-of-starbucks-howard-schultz-letter-to-leaders-as-he-steps-down/" target="_blank" rel="noreferrer noopener">here</a>.

“The board wants to express our sincerest thanks to our founder, Howard Schultz, for selflessly picking up the leadership mantle when asked—forgoing compensation and putting aside his own pursuits—for the love of our company and its partners,” said Mellody Hobson, Independent Starbucks Board of Directors chair.&nbsp;“We would not be where we are without him.”

Narasimhan officially assumes the role of chief executive officer today and will lead Starbucks Annual Shareholder Meeting this Thursday, March 23. As he ascends into the role, Narasimhan will continue engaging the leadership team, sharing his early learnings and insights and assessing opportunities for the company as they chart a path forward.

“Laxman’s intensive immersion into the business coupled with his extensive experience as a proven brand builder, innovator and operator have uniquely prepared him to lead Starbucks into its next phase of growth,” said Hobson. “This immersion has deepened Laxman’s understanding of Starbucks culture and values. In this time of learning and listening, he has already won the hearts and minds of our partners around the world.”

“I am humbled to officially step into my role as Starbucks chief executive officer, leading our incredible team of more than 450,000 green apron partners around the world. The foundation Howard has laid – building from scratch an iconic global brand fueled by a lasting passion to uplift humanity – is truly remarkable, and I am honored to have the opportunity to build on this deep heritage,” said Narasimhan. “As a human connection business, we have limitless possibilities to deliver for our partners, our customers, our investors and our communities through every cup and every connection. I am excited to work alongside our partners worldwide to unlock the limitless future of Starbucks.”

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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 36,000 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.ca or www.starbucks.ca.

Forward-Looking Statements

Certain statements contained herein are “forward-looking” statements within the meaning of 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 may include statements relating to trends in or expectations relating to the effects of our existing and any future initiatives, strategies, investments and plans, including our Reinvention plan, as well as trends in or expectations regarding our financial results and long-term growth model and drivers; our operations in the U.S. and China; our environmental, social and governance efforts; our partners; economic and consumer trends, including the impact of inflationary pressures; impact of foreign currency translation; strategic pricing actions; the conversion of certain market operations to fully licensed models; our plans for streamlining our operations, including store openings, closures and changes in store formats and models; the success of our licensing relationship with Nestlé, of our consumer packaged goods and foodservice business and its effects on our Channel Development segment results; tax rates; business opportunities, expansions and new initiatives, including Starbucks Odyssey; strategic acquisitions; our dividends programs; commodity costs and our mitigation strategies; our liquidity, cash flow from operations, 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 and future availability of governmental subsidies for COVID-19 or other public health events; our ceo transition; our share repurchase program; our use of cash and cash requirements; 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: the continuing impact of COVID-19 on 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 resurgence of COVID-19 infections and the circulation of novel variants of COVID-19; 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; new initiatives and plans or revisions to existing initiatives or plans; 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; failure to attract or retain key executive or employee talent or successfully transition executives; significant increased logistics costs; inflationary pressures; the impact of competition; inherent risks of operating a global business including any potential negative effects stemming from the Russian invasion of Ukraine; 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, including the Inflation Reduction Act of 2022 and other risks detailed in our 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.

A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release. We are under no obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Following the global search for the new leader of Starbucks, Laxman Narasimhan joined the company as incoming ceo on October 1, 2022, bringing nearly 30 years of experience leading global consumer goods businesses and advising retail, grocery, restaurant and e-commerce companies.

Laxman Narasimhan Assumes Role of Starbucks Chief Executive Officer

https://stories.starbucks.ca/en-ca/press/2023/laxman-narasimhan-assumes-role-of-starbucks-chief-executive-officer/

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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

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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.”

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.

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

https://stories.starbucks.ca/en-ca/press/2022/starbucks-showcases-innovation-for-growth-and-a-more-connected-and-sustainable-future-at-2022-annual-meeting/

Press Releases

‘You are the future of Starbucks’: Howard Schultz’ letter to leaders as he steps down

Laxman Narasimhan Assumes Role of Starbucks Chief Executive Officer

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