Tag: starbucks

Kunshan, China – Multinational coffeehouse company Starbucks has announced the opening of its US$220m Coffee Innovation Park (CIP) in China to advance its global sustainability agenda. 

Starbucks’s Coffee Innovation Park is a fulfilment of the company’s first-ever scaled vertical integration ‘from bean-to-cup’ across one market. 

The CIP also holds the distinction of being Starbucks’s most energy-efficient and sustainable coffee manufacturing and distribution centre in the world. With the company making two additional rounds of investments since its announcement in March 2020, the CIP has the largest investment in any Starbucks coffee manufacturing and investments outside of the United States.

Located in the city of Kunshan, an hour from Shanghai, the new coffee manufacturing and distribution centre is designed and built based on LEED Platinum and China Green Building Three Star, leading sustainability standards for carbon emissions, energy and water use, and waste. It houses a roasting plant deploying Starbucks’ energy-efficient technology, a state-of-the-art integrated distribution centre (IDC), and an immersive experience center.

Around 20% of the energy supplied to CIP will be from its 26,000 m2 of installed solar panels. The company is also projected to achieve 90% of recycled waste annually.

Starbucks’ CIP has the capacity to supply all of the company’s locations in China. It will also use advanced eco-friendly technologies to blend and roast high-quality Arabica green beans sourced from more than 30 countries around the world, including China, to develop a variety of unique blends and roast profiles to meet the evolving tastes of Chinese customers.

The integrated distribution centre (IDC) in CIP will serve as the centre of Starbucks China’s distribution network to directly supply thousands of its stores in the region with freshly roasted coffee. The IDC uses advanced automation technologies and a 34-metre-high fully automated storage and retrieval system, which makes it six times more space-efficient compared to a conventional Starbucks warehouse.

However, the CIP is more than just a manufacturing site. It will also feature an immersive Experience Centre that provides a creative and unique interpretation of industrial tourism with an authentic, vivid showcase of the ‘bean-to-cup’ coffee journey.

The experience centre comprises 12 touchpoints where visitors will be transported virtually across the world to experience the sights, sounds, and smells of faraway coffee origins, from China’s Yunnan province to the farms in Costa Rica. They will witness roasting in person and up close as they learn about the latest innovations and sustainability practices at different parts of the coffee value chain.

Laxman Narasimhan, CEO at Starbucks Coffee Company, said, “As one of the largest consumer markets in the world, China presents tremendous opportunities for Starbucks. The Coffee Innovation Park highlights Starbucks foresight in elevating the supply chain through digitalization and advancing our sustainability agenda, enhancing our unique competitive advantage as we accelerate our global growth.”

“I couldn’t be prouder of the China team’s visionary thinking. As Starbucks largest and fastest-growing international market, we will continue to deepen our investment and reinforce our unwavering long-term commitment to the China market,” he added. 

Speaking on the launch, Belinda Wong, chairwoman and CEO of Starbucks China, also said, “The Coffee Innovation Park holds important significance for Starbucks in China and globally. It not only showcases Starbucks unrivalled coffee leadership, fulfilling our scaled vertical integration in China ‘from bean-to-cup’, but also sets a new benchmark for sustainability in China’s coffee industry. Its immersive experience center further elevates China’s specialty coffee industry with a multi-sensory showcase of the coffee journey. The CIP is yet another testament that Starbucks’ purpose and commitment to China go far beyond a cup of coffee.”

Singapore – Popular coffee chain Starbucks has announced its collaboration with global mass media company Walt Disney to release Disney-inspired merchandise and stylish lifestyle accessories aiming to inspire a sense of shared nostalgia that resonates with all ages.

Launching on September 19 for a limited time, the collection will be launched in 15 markets across the Asia Pacific region, blending Disney’s iconic characters with Starbucks’ familiar third place experience.

Starring fan-favorite Disney characters such as Mickey and Friends, Chip ‘n Dale, Dumbo, Stitch and Angel, the Starbucks’ ‘Relive the Magic Together’ series features  an array of 15 different drinkware designs and six lifestyle accessories. The drinkware range features mugs, reusable cups, and tumblers, whilst the lifestyle accessories include reusable tote bags, umbrellas, and pins.

The new themed collection will be available across 15 markets, spanning Australia, Brunei, Cambodia, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, Thailand, and Vietnam. 

Samuel Fung, vice president of product and marketing at Starbucks Asia Pacific, said “Our “Relive the Magic Together” merchandise speaks to Starbucks mission to strengthen human connection with elements of fun and imagination. This collection is poised to touch the hearts of fans of all ages. The possibilities of striking human connections over the everyday ritual of drinking coffee, rooted in our iconic Starbucks Experience, are truly limitless.”

“We wanted to creatively reimagine how some of our favorite Disney characters might enjoy moments of friendship together – perhaps even taking the time to cheers over a cup of coffee! By weaving together memorable Disney characters with Starbucks style and messages of forging genuine connections, we hope our designs brighten your day, bring comfort and happiness, and warm the hearts of people of all ages”, he added.

Singapore – Popular coffeehouse chain Starbucks has announced that it is scaling its Greener Store program across Asia-Pacific in order to set benchmarks for the company regarding its environmental responsibility.

Five Greener Stores across Singapore, Thailand, and Vietnam are amongst the first in the Asia Pacific region to be certified, with over 20 more expected in 2023. With over 3,500 ‘Greener Stores’ certified across 20 markets, Starbucks is on a path towards achieving its goal of 10,000 Greener Stores total by 2025

The new Greener Stores in the Asia Pacific region help reduce Starbucks environmental impact through performance-based standards that incorporate design and extend throughout the life of a store. Each Greener Store has a unique combination of sustainable features that qualify for third-party verification on a quarterly basis. 

This ranges from features like energy and water efficient equipment and appliances, low-emitting paints and sealants, Grounds for Your Garden program, as well as energy efficient HVAC temperature systems and more. Additionally, the new Greener Stores in Asia include elements that go beyond the standard to deliver more robust energy, carbon, water, and waste reductions. 

In support of Starbucks’ goals of reducing carbon, water, and waste footprints by 2030, the open-source Greener Stores Framework was co-developed with the World Wildlife Fund (WWF). The framework includes a set of 25 performance-based standards across environmental impact areas such as energy efficiency, water stewardship, and waste diversion, designed to accelerate the transformation of retail towards lower-impact stores. 

Michael Kobori, chief sustainability officer at Starbucks, said that they are excited to continue expanding their Greener Store portfolio worldwide, which is a key step towards reaching their resource positive goals.

He also added that they have already seen results of their Greener Stores in the United States where they first piloted, as well as seeing significant reductions in energy use as well as water being saved.

“With a company of Starbucks scale – any one action, no matter how small, has the potential for massive impact. We are heartened by our partners around the world who are stepping up to adopt our Greener Store standards. This is testament of their energy and passion for sustainability that continues to drive our innovation,” Kobori said.

Kowloon, Hong Kong – With the aim of increasing its store portfolio across the Asia-Pacific, Starbucks has announced its plans to open 400 new stores in the region in 2023 to serve additional communities in its major cities.

Starbucks also plans to build on its existing portfolio of over 300 stores across 40 cities in India by extending its footprint into at least five new cities. The company also targets expanding its stores beyond the metropolitan areas of Indonesia, Thailand, Malaysia, and the Philippines, as well as opening a new store in Laos. 

“Asia Pacific is a dynamic and diverse engine of growth for Starbucks globally. As recovery continues, the region achieved over 20% sales growth year on year, demonstrating the strength and relevance of the brand,” said Michael Conway, group president of International and Channel Development for Starbucks.

He also added that the company is well-positioned for further growth with its licensed business partners.

Moreover, the company has also unveiled its new store in Gwangyang-si, South Korea today, February 16, which marks its 5,000th store milestone in APAC. According to Starbucks, the new store has the latest digital features and technology and a new drive-thru store that offers customers on-the-go more convenience.

To this, Conway commented, “The opening of our 5,000th store in Asia Pacific reaffirms our commitment to bring the unparalleled Starbucks Experience to more customers in one of our fastest growing regions.”

Emmy Kan, president of Starbucks Asia Pacific also said, “That our 5,000th store in Asia Pacific is a drive-thru store speaks both to the changing habits of our customers, and of our determination to meet them where it is most convenient, while still offering the Starbucks connection.” 

She also added that the company will continue to enhance its store formats and innovate to cater to changing customer behaviours and fuel growth in the region.

Building on the welcoming ‘third place’ experience, Starbucks also plans to open more Starbucks Reserve stores across APAC to bring customers an ‘intimate, multi-sensory coffee experience’.

India – Tata Starbucks Private Limited is celebrating its 10 years with the opening of a Starbucks Reserve store in Mumbai, Maharashtra. Starbucks Reserve is a program by Starbucks, and involves operation of worldwide roasteries.

The new Starbucks Reserve store is designed to bring the coffee experience to life for customers. The premium coffee experience unique to Starbucks is evident in the new Starbucks Reserve store’s stunning aesthetics. Taking centre stage, the Starbucks Reserve bar is set off by renowned architect and artist Ankon Mitra’s undulating sculpture reminiscent of clouds. 

As customers enter beyond the twin arches, based on Mumbai’s architectural heritage with a modern colour palette, they are welcomed by a vibrant floor-to-ceiling mural featuring the Starbucks Siren, created by local Mumbai artists Sonal Vasave and Makarand Narkar. The mural comes to life at the tap of a finger through augmented reality (AR) when customers scan the nearby QR code with their Instagram camera.

At the Starbucks Reserve bar, customers can enjoy a lineup of Starbucks Reserve small-lot single origin coffees, some of the most exquisite and rarest coffees in the world, including Bolivia Sol de la Mañana, Rwanda Sholi and Sumatra Kerinci brewed and served by Starbucks black apron coffee masters.

Michael Conway, group president of international and channel development at Starbucks said, “India is one of Starbucks fastest-growing markets and we’re proud to open our first Starbucks Reserve store in Mumbai, where our Starbucks journey began a decade ago. Since entering India, our green apron partners continue to deliver the iconic Starbucks Experience across the market. We look forward to serving more customers and communities through different store formats, digital acceleration, and product innovation as we continue to grow in India.”

Meanwhile, Sushant Dash, CEO at Tata Starbucks, commented, “For 10 years, Starbucks has been elevating coffee craftsmanship and bringing unique experiences to our customers in India. We value the strong connections we have with our customers and will continue to innovate and develop to enhance India’s coffee culture.”

He added, “Starbucks Reserve is a selection of the rarest, most extraordinary coffees Starbucks has to offer, and transports customers and coffee aficionados to an immersive and personalised coffee journey. It is all about the customer experience and engagement, the story of our coffee and the craft of our baristas.”

Seattle, Washington – Barbara Spiering, Starbucks’ VP of marketing technology & quality engineering, reveals how a measured approach to technology adoption and implementation has led to deeper and more meaningful relationships with its customers.

This ‘human approach’ to the brand experience was outlined by Spiering in the latest instalment of Cheetah Digital’s ‘Signals Executive interview Series.’

In this interview, Spiering highlights four key elements critical to their success with Cheetah Digital’s relationship marketing platform:

1. Don’t Let Tech Take The Wheel

Prioritise technology that enhances customer relationships and enables greater personalisation. Tech should never interrupt the connection between a brand and its customers. Used properly, technology can strengthen relationships across formats, with personalisation as the foundation of all communications. 

“The goal of technology is to create that bridge between the physical and the digital.” Spiering said. “So customers feel as seen and known in all of our digital channels as when they walk into the store, and that it’s a seamless experience.”

2. Personalisation Is Everything

More than 60% of all Starbucks orders are customised to the individual customer. That highlights the need for useful technology that allows Starbucks to keep the personal connection authentic throughout the entire customer lifecycle.

“Customers (need to) feel as seen and known in all of our digital channels as when they walk into the store,” Spiering said. “Because that’s why people come in, they want to be seen and known from the digital, to the physical. We know who you are, and it’s throughout the entire lifecycle. And that is really our goal, to create that connection.”

3. Clean Data > Big Data

Data is only as good as its accuracy. Tech is great at collecting data, but it requires a guiding hand to ensure the data collected is accurate and useful. That means technology partners must share the same vision for executing relationship marketing at the highest level possible. 

“You need to have really strong data governance practices, machine learning at scale,” Spiering said. “If you don’t have clean data, you’re never going to send the right message.”

4. POV Matters

Brands need to stand for something when communicating with customers in order for the message to be authentic. That means developing a point-of-view and ensuring it’s reflected in all customer interactions.

“You need to understand the message that you want to send to your customers and why you want to have that dialogue”, Spiering said. “Because personalisation won’t be effective unless you understand what you want to say and what relationship you want to have. Bring the head with the heart, and that’s your message.”

Emphasising the importance of a well-functioning customer relationship and personalisation strategy, the most recent Cheetah Digital 2022 Digital Consumer Trends Index survey found that 74% of global consumers want brands to treat them as an individual (a 110% increase from 2021), and 71% have a favourite brand as it strives to develop a relationship with its customers. Both are critical factors for brands to consider as the economy points to more challenges ahead.

“As brands move to acquire zero-party data to future proof their advertising and relationship marketing efforts, they can look at Starbucks as the blueprint,” said Wendy Werve, Cheetah Digital’s CMO.

“Our clients are bracing for a potentially turbulent economic landscape ahead by reinforcing their investments in owned channels such as email and SMS. This is where zero-party data and personalisation can impact the bottom line, especially as cookies and third-party data continue to disintegrate,” Werve adds. 

United States — The global coffeehouse brand Starbucks has announced its exit and cease of brand presence in Russia amidst the ongoing invasion of Ukraine. This means that all 130 branches in Russia will cease operation following the announcement.

Amidst the exit announcement, the company promised that it will still support its 2,000 green apron employees or ‘partners’ in the country; providing six months of remuneration and assistance to transition to a new opportunity outside the brand.

This news follows after Starbucks’ initial announcement of the suspension of all business activities last March 8, 2022. The invasion of Russian forces under Russian President Vladimir Putin began on February 24 this year, a grim chapter in the Russo-Ukrainian War that started almost a decade prior.

In a letter to Starbucks’ partners last March 8, Kevin R. Johnson, CEO of Starbucks, vehemently condemned the assault of Russian forces into the territories of Ukraine.

“We condemn the horrific attacks on Ukraine by Russia and our hearts go out to all those affected,” Johnson says.

After a week from the February 24 invasion, Starbucks immediately pledged its commitment to condemn Russia’s attacks against Ukraine.

The company donated royalties from their business operations in Russia to humanitarian relief efforts for Ukraine as well as utilising their EMEA business to create financial assistance and services. Additionally, The Starbucks Foundation contributed US$500k to World Central Kitchen and the Red Cross for relief efforts for Ukraine.

Starbucks is the latest brand to follow the exodus as a slew of brands exit Russia amidst its historic oppression of the sovereign country of Ukraine.

New York, USA – Global coffeehouse company Starbucks has announced that it is venturing into NFTs, as well as exploring other ventures in the Web3 space.

In a joint statement by Brady Brewer, chief marketing officer at Starbucks, and Adam Brotman, advisor at Starbucks, the company plans to create a series of branded NFT collections, the ownership of which initiates community membership, and allows for access to exclusive experiences and perks. 

The themes of these collections will be born of Starbucks artistic expressions, both heritage and newly created, as well as through world-class collaborations with other innovators and like-minded brands.

“We plan to take a phased approach here, willing to move fast, experiment, learn and collaborate. We plan to start with our first NFT collection, membership and community later this year, based on coffee art and storytelling. It will come with a host of unique experiences and benefits, worthy of a genesis NFT collection from Starbucks. And this first collection will form the core digital community and backbone against which we hope to build future collections and collaborations – all building on the same new ecosystem,” Brewer and Brotman said.

The company also believes that its Starbucks Digital Community Web3 platform has the potential to pioneer the combination of an approachable, widely accessible front-end, backed by the right blockchain technologies that are fast and inexpensive.

“We believe NFTs have broad potential to create an expanded, shared-ownership model for loyalty, the offering of unique experiences, community building, storytelling, and customer engagement. And, while doing so also being a source of accretive business that can benefit a number of stakeholders in the process, while creating a new type of digital ecosystem to complement Starbucks current digital platform offering,” the company added.

Jakarta, Indonesia – Starbucks in Indonesia has recently launched its newest coffee experience centre at the Starbucks Dewata Coffee Sanctuary in Bali, Indonesia. Said new experience centre focuses on the celebration of Indonesia’s rich coffee heritage and showcasing how the roasting process elevates the unique quality and diverse flavour profiles of Indonesian coffees.

The centre spans over 140 square meters with designs inspired by rich copper tones and traditional Balinese Besek baskets, made with the same materials as the Starbucks Dewata Coffee Sanctuary including terracotta brickwork and terrazzo floors. Customers visiting the new centre can learn about the art and science behind sourcing, roasting and brewing coffee, and explore coffee through interactive workshops hosted onsite.

For Anthony McEvoy, leader of Starbucks at PT Sari Coffee Indonesia, as they celebrate the company’s 20th year of retail presence in the country, the Dewata Coffee Experience Center amplifies their leadership and passion for coffee, as well as their commitment to Indonesia’s rich coffee culture.

“Aligned with Starbucks global mission to inspire and nurture the human spirit, the Dewata Coffee Experience Center is also an immersive coffee destination that is thoughtfully designed to celebrate the connection between our customers, communities and coffee farmers that is an essential part in serving our coffee,” McEvoy said.

He added, “We believe that by highlighting the dedication and care involved in coffee’s creation, the more appreciation others will have to ensure its future, and we want to reaffirm our commitment to supporting coffee farmers in Indonesia by working closely with the Farmer Support Center to ensure a sustainable future of coffee for all.”

At the centre, customers can learn about Starbucks responsible sourcing practices, and how the company is working with Indonesian coffee farmers at the Farmer Support Center in North Sumatra to ensure sustainable farming practices that improve the resilience, quality, and size of harvests.

Meanwhile, Tim Scharrer, managing director and vice president of Starbucks coffee and cocoa, commented, “As one of the world’s leading coffee-growing regions, Indonesia has played a unique and important role in Starbucks’ journey since the beginning. Starbucks has sourced high-quality Arabica coffee from Indonesia for 50 years and is proud to be one of the largest buyers of Indonesian coffee in the world today. At the same time, we remain dedicated to working with farmers in Indonesia to bring responsibly-sourced Indonesian coffee to the world.”

The one-storey building welcomes everyone from Monday to Sunday from 8 am to 10 pm, with capacity up to 30 seats.