Tuesday, May 19, 2015

Starbucks diversifies with cha and even beer

Starbucks strengthens its strategy of diversifying products and business and to expand its presence abroad, in countries such as Brazil, China, India and Japan. In recent years, the American company is no longer just a network of cafes, though obviously important to follow coffee company of Seattle. Teas, juices, healthiest foods won both the space menu of stores like Starbucks ' business portfolio, that since 2011 purchased the company Evolution juices Fresh, the network of Teavana teas and confectionery La Boulange. In some units, began to be sold beers and wines.
The company has also become strong in digital transactions, with 14 million customers that use actively the application of mobile payments and account for 18% of network transactions in the us. Another brand of the group are social initiatives, such as the commitment to hire until 2018, 10 thousand young people who neither study nor work and 10 thousand veterans and military women, or the campaign Race Together, to encourage the discussion of racism, which generated controversy in March.
The strategy has given good results. In the last 12 months, the company's shares have risen more than 40%. Today, the company has 22 thousand stores in 66 countries, with a market capitalization at $ 75 billion-when he opened the capital, for 23 years, the value was $ 250 million, and had 125 stores. In fiscal year 2014, completed in September, net revenue totaled $ 16.4 billion, an increase of almost 11% over the previous year. In the quarter ended March this year, revenues reached $ 4.6 billion, 18% more than in same period in 2014.
"Over the next five years, Starbucks will continue to innovate in areas such as the coffees and teas and in retail," summed up Cliff Burrows, President of the group for the us and the Americas and also from Teavana. According to him, "diversification and innovation along the various parts of the day, in a manner complementary to the coffee, is one of our key strategies for growth."
He exemplifies the acquisition of confectionery La Boulange, made in mid-2012, for $ 100 million. It was a step to increase the options of food, which has good rebounding among customers, according to Burrows. "This variety of foods is attracting more customers to our stores in all phases of the day around the world."
Burrows noted that, since the founding of the company, in 1971, Starbucks wasn't working just with coffee. Selling tea and spices too. But the turning point occurred in 2008. That's when Howard Schultz, who had left the command in 2000, resumed the post of President, a complicated moment, evidenced by a sharp drop in the stock price.
"We went through a strategic transformation as a company," said Burrows. According to him, the company realized not only that there was a great potential to expand abroad, but also saw great opportunity to boost the brand through a diversification of products and formats of shops.
Since then, he said, the company made a number of key movements, such as the launch of premium coffees, Starbucks Reserve; the acquisitions of La Boulange, Teavana and Evolution's Fresh; and the opening of new store formats, such as micro drive-thrus "or Express units. Starbucks works with units operated by the company itself and with licensed stores. At the end of the fiscal year of 2014, the operated by Starbucks were a little more than 50%.
The purchase of Teavana, acquired for $ 620 million at the end of December 2012, was an important step towards diversification. "The tea is the most consumed beverage after water globally, and our research shows an increase in demand and in popularity in the world," said Burrows. According to him, only Americans drink 800 million doses of tea per week and iced tea is the most consumed drink during lunch in the United States.
"The global opportunity for tea is huge and we realized that a large share of business is actually outside of North America. Of the 66 countries where Starbucks is present, Teavana is in only seven [the Brazil isn't one of them], "said Burrows. In the u.s., Mexico and Canada, there are more than 300 Teavana stores.
In April last year, Starbucks and the presenter Oprah Winfrey launched the Teavana Oprah Chai Tea, developed in partnership by her and by the company's tea expert, Naoko Tsunoda. A slice of sales of product to finance education for youngsters in the u.s. and Canada.
Another novelty of the Starbucks in recent years is the sale of beer and wine in a few stores, an initiative that began in October 2010 in Seattle. Alcoholic beverages entering the menu after the 4:0 pm in nearly 40 u.s. units. These stores also serve portions of cheeses and cold cuts and dishes such as meatballs.
Burrows pointed out that Starbucks was the first u.s. retailer to offer its own mobile payments technology, combined with a loyalty program. In the USA, are held 8 million transactions per week by phone, he said. Since July 2010, the American stores offer free Wi-fi. Many customers spend hours studying or working in the units.
In the management of Schultz, social initiatives also gained prominence. An example is the goal that 25 thousand employees from forming until 2025 through a program that banking four years of tuition at Arizona State University. In March, the company reported that it had already hired 3.3 thousand of 10 thousand veterans and military women who plans to employ up to 2018.
Two months ago, Starbucks caused controversy with one of the phases of the campaign to encourage discussion about racism in the country, in which employees were writing #RaceTogether in cups. The initiative has generated criticism, especially in social networks. Netizens commented that the direction of the company is formed predominantly by whites, while most of the employees are black.
Days after its inception, this phase of the campaign has ended. In a letter to employees, Schultz wrote that she ended on schedule, and that had been imagined as "a catalyst" for a long and comprehensive debate. Schultz was not iridescent to embrace causes that generate controversy in the us. He has backed gay marriage and urged customers who do not attend armed network stores, even in States where it is allowed.
Valor Economico
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