SEATTLE (AP) - Starbucks Corp. is expanding the products and places that sell to customers and add extras - such as free online access to Marvel Comics in their coffee and they only serve coffee machine retailer.
The company has been working for some time to move your business beyond its cafes, which took a hit during the recession, but have since rebounded. On Wednesday, executives set out how the company is putting its new strategy in practice.
"We're playing from a position of strength," said Chief Financial Officer Troy Alstead the capacity crowd at the annual meeting of the company in Seattle.
CEO Howard Schultz said one of the critical steps of Starbucks is expanding its business consumer packaged goods, which he said could rival business days in retail revenues. A key component will be growing single serve coffee sales in the U.S., an estimated 1.6 billion U.S. dollars market. Starbucks says that two thirds of growth in the U.S. coffee market during the past year has been one of the market share.
Starbucks entered the market with its Via instant brewed coffee ready in 2009 and expanded its presence in February when it announced a deal with free products to offer their coffee in the premium rooms. Starbucks then announced this month that will offer coffee and Tazo tea from Green Mountain Coffee Keurig single-cup machines.
Starbucks plans to sell the Keurig system in specialty stores in the fall and its own stores in 2012. The company said on Wednesday he believes that ultimately can be built under K-Cup into a business worth more than $ 1 billion. Starbucks said it also plans to sell a la carte from a single cup brewing system through its partnership with the tourism products through specialty retailers from the fall.
The company announced a 10-year extension of its partnership with HMSHost Autogrill to operate Starbucks stores in the U.S. airports and other travel sites.
Company leaders said that Starbucks is dedicated to coffee and coffee shops. He highlighted a number of ways in which the company hopes to connect with consumers in their coffees, including a system for paying for your drinks and tools increasingly popular social networking to increase traffic.
The company also announced plans to improve the Wi-Fi offered by almost 7. 000 company-operated cafes, adding access to subscription services and sites, including The Economist, ESPN Insider Rumor Central, Marvel Digital Comics and MediaBistro. Customers log in using their own equipment tablets, smart phones. The service is intended to increase sales of Starbucks beverages and other products.
Shares of Starbucks, which got a boost from a drop in the price of commodity coffee bean, rose $ 1.74 - nearly 5 percent - to close Wednesday at $ 36.69.
(Source: http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D9M55VAO1)
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