Starbucks Corporation

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Starbucks is an American coffee company, specialising in owning and operating coffeehouses. The group operates through the following sectors, with ~70% of sales in North America:Sept.2018[1]

  • 79.7%: Operation of coffee shops: owns a network of 15,341 coffee shops under the "Starbucks", "Teavana", "Seattle's Best Coffee" and "Evolution Fresh" names;
  • 10.7%: Sale of licenses: 13,983 licensed coffee shops;
  • 9.6%: Other: sale of coffee, beverages and food products for companies, hotels, hospitals, airlines, etc.

Brands

Company

Shareholders

Total float: 99.8%
Source: MarketScreener.svg, Mar.2020

Structure

ToDo: link

Controversies

ToDo:

Timeline

ToDo: Pics, link, Reports, Global report
  • Aug.2018: Nestlé SA acquired the global rights to sell packaged retail products. This includes Starbucks-branded whole bean and ground coffee products, as well as coffee and tea products marketed by Seattle’s Best Coffee, Starbucks Reserve, Teavana, Starbucks VIA and Torrefazione Italia. Starbucks will retain a “significant stake” as a licensor and wholesale coffee supplier, while its branded portfolio will be integrated into Nestlé’s Nescafé and Nespresso single-serve capsule coffee systems.ref
  • May.2018: Global Coffee Alliance established with Nestlé SA.AR-2018, p.64
  • Nov.2017: Tazo Tea Company was sold to Unilever.ref
  • Jun.2015: La Boulange Bakery: Starbucks announced all cafes would be closed by Sept.ref
  • May.2014: Australia: After some years of difficulties and store closures in the Australian market,ref the remaining outlets were sold to family-owned [Withers Group].ref,ref
  • Dec.2012: Teavana Corporation, a US tea company, was acquired.ref
  • Jun.2012: La Boulange Bakery acquired from founder and owner Pascal Rigo.ref
  • Jan.2012: Tata Starbucks, a 50/50 joint venture with Tata Group § Tata Global Beverages Ltd, was launched. The JV owns and operates Starbucks outlets in India.ref
  • Nov.2011: Evolution Fresh, a juice company, was acquired with the intention of starting a chain of juice bars.ref Website
  • Mar.2011: Green Mountain Coffee and Starbucks announced a deal whereby Starbucks would sell its coffee and tea in Keurig single-serve pods and, in return, would sell Keurig machines in their stores.ref
  • 2008: Coffee Equipment Company, manufacturer of the "Clover Brewing System", was acquired.ref Coffee Equipment CompanyWikipedia-W.svg
  • Sept.2006: Coffee People, Gloria Jean's Coffees, and 40 stores were acquired from rival Diedrich CoffeeWikipedia-W.svg.ref
  • Apr.2005: Ethos Water was acquired.ref Ethos does not use any recycled plastic in its bottled.[?ref?] Starbucks was accused for "charity profiteering", because the Ethos bottles states it is "helping children get clean water" (5 cents from each $1.80 bottle sold is donated).ref,ref Website
  • Apr.2003: Seattle's Best Coffee and Torrefazione ItaliaWikipedia-W.svg were acquired from America's Favorite Chicken Company, IncWikipedia-W.svg.ref
  • Mar.2003: Starbucks Israel JV was dissolved.ref,ref
  • 2001: Starbucks Israel, a 19.5%/80./5% joint venture with Delek Group of IsraelWikipedia-W.svg was formed. ref
  • 1999: Tazo Tea Company acquired, enabling Starbucks to enter the tea business.ref
  • 1999: Hear Music was acquired. Hear MusicWikipedia-W.svg
  • 1996: First non-USA locations were opened in Japan.ref
  • 1994: The Coffee Connection was acquired, giving Starbucks the rights to use, make, market, and sell the "Frappuccino" beverage.ref
  • Jun.1992: Starbucks was launched on the stock market, offering a 12% float.
  • 1987: The owners sold the Starbucks chain to former manager Howard Schultz, who commenced an expansion programme.ref
  • 1986: The company started selling espresso coffee in-store.ref
  • Nov.1985: Starbucks was incorporated under the laws of the State of Washington, in Olympia, Washington.
  • 1984: Peet's CoffeeWikipedia-W.svg was acquired.
  • Mar.1971: The first Starbucks opened in Washington,ref selling only roasted whole coffee beans.

Logo: link, link, link, link, link, link

Articles

  • Sept.19.2018: Starbucks' European arm paid just 2.8 per cent tax in the UK. Starbucks' European business paid 2.8 per cent tax in the UK on profits of $213m (£162m) in the year ending October 2017. The coffee chain's Europe, Middle East and Africa (EMEA) division, based in London, paid $5.9m in UK corporation tax, its accounts reveal. Separately the company's UK entity reported profits of £4.5m – down from profits of £13.3m the previous year – and blamed the “challenging” environment on the UK high street. The US company has come under fire in recent years over its tax payments in the UK – its tax contribution of £8.1m in 2015 was only slightly less than its combined tax paid in its first 14 years in the UK, despite £3bn worth of sales. The Fair Tax Mark called for clearer country-by-country reporting. CityAM, Callum Keown.
  • Oct.16.2012: Starbucks 'paid just £8.6m UK tax in 14 years'. Starbucks generated £398m in UK sales last year but paid no corporation tax. It said the coffee giant had reported losses in each of the last five years and therefore did not have to pay any corporation tax, yet executives told analysts that the UK business was "successful", "profitable" and they were "very pleased with the performance". The 4-month investigation by news agency Reuters also found the firm had paid nothing in the last 3 years. Tax Research UK said "Starbucks are playing the game here. This is tax avoidance, they're doing nothing illegal. That doesn't mean to say it's right." Note alone: Amazon had generated sales of more than £7.6bn in the UK over the past three years but had not paid any corporation tax on the profits from those sales. HMRC said "Word Salad". BBC News.
  • Oct.15.2012: How Starbucks avoids UK taxes. Over the past 3 years, Starbucks has reported no profit, and paid no income tax, on sales of £1.2bn in the UK. Starbucks has taken a leaf out of the book of tech companies such as Google and Microsoft. Starbucks makes its UK unit and other overseas operations pay a royalty fee - at Starbucks, of 6% of total sales - for the use of its ‘intellectual property’ such as its brand and business processes. These payments reduce taxable income in the UK. The fees from Starbucks’ European units are paid to Amsterdam-based Starbucks Coffee EMEA BV. It’s unclear where the money paid to Starbucks Coffee EMEA BV ends up, or what tax is paid on it. The second factor is a requirement to allocate some funds generated in the UK to other subsidiaries in its supply chain. Starbucks buys coffee beans for the UK through a Lausanne, Switzerland-based firm, Starbucks Coffee Trading Co. Before the beans reach the UK they are roasted at a subsidiary which is based in Amsterdam but separate from the European HQ. It’s not clear how Starbucks allocates such costs. What is clear is that while its UK subsidiary is making a loss, its Dutch roasting operation has only a small profit. Starbucks’ UK accounts show a third way it cuts its tax: inter-company loans. These are a common tactic for shifting profits to low-tax jurisdictions. Such loans bring a double tax benefit to multinationals: the borrower can set any interest paid against taxable income, and the creditor can be based in a place that doesn’t tax interest. Starbucks' UK unit is entirely funded by debt, and paid group companies 2 million pounds in interest last year. McDonalds also charges its UK subsidiary a royalty for ‘intellectual property’, although at a lower rate of 4-5%. Reuters, Tom Bergin.