To ensure compliance with its rigorous standards, Starbucks is vertically integrated, controlling its coffee sourcing, roasting, and distribution through its retail stores. In addition to its retail operations, the Company sells primarily whole bean coffees through a specialty sales group and a national mail order operation. The Company purchases green coffee beans for its more than 50 blends and varieties from coffee growing regions throughout the world and custom roasts them to its precise standards. The Company's objective is to establish Starbucks as the most recognized and respected brand of coffee in the world. .
Net Sales for fiscal year 1996 have rocketed to $696 million. This marks the ninth consecutive year that Starbucks revenue has increased by 50 percent or greater. Starbucks Coffee stock is publicly traded on the NASDAQ (Symbol: SBUX). Starbucks business is subject to seasonal fluctuations. A significant portion of the Company's net sales and profits are made during the Christmas holiday season. .
Starbucks retail stores have consistently over the last 3 fiscal years accounted for approximately 87% of net sales. The Company's specialty sales and mail order operations account for the remainder of net sales. Starbucks has grown rapidly from 17 stores at the end of fiscal 1987 to 1006 stores at October 1, 1996. Starbucks retail expansion strategy is to increase its market share in existing markets and to open stores in new markets where it believes it can become the leading specialty coffee retailer. In addition to its 1,006 retail locations, Starbucks has a national direct response business and a specialty sales group, which serves fine dining, food services, travel and hotel accounts. .
MISSION STATEMENT: .
Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. The following six guiding principles will help us measure the appropriateness of our decisions: .
