Starbucks recently hosted its biennial Investor Day virtually. Chief executive officer Kevin Johnson and other Starbucks leaders outlined a vision for the future and discussed the company’s progress against its Growth at Scale agenda. With a focus on creating value for all stakeholders, Starbucks believes that responsible growth includes doing the right thing for both people and the planet. The company also provided updates to its ongoing growth model and aims to drive consistent and predictable sales growth and margin expansion while continuing to create significant value for all stakeholders.
“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,” said Johnson. “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.”
Starbucks leadership team emphasized caring for partners (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. Through the lens of this commitment, Starbucks leaders discussed the decisive actions the company has taken since the onset of the COVID-19 pandemic, rapidly adapting in the dynamic environment, further strengthening the resilience of the brand and simultaneously positioning the company for long-term growth.
Pathway to a Planet Positive Future
Earlier this year, Starbucks shared its multi-decade commitment to become a resource positive company by storing more carbon than it emits, eliminating waste and replenishing more freshwater than it uses.
Today, Starbucks announced 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.
- Rollout of oatmilk nationwide in the U.S., joining plant-based options including soymilk, almondmilk and coconutmilk.
- 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 to be even more productive and sustainable.
- A Diversified Renewable Energy Portfolio, aiming to offset 50% 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.
“As we approach the 50th Anniversary of Starbucks in 2021, we honor our past while looking to the future with a long runway of healthy growth ahead,” said 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.”
