strategic-management

EXHIBIT 4 Segment Financial Data
Segment Financial Data by Product Category—2008 (millions)
US International CPG
Net Revenues
Company operated retail $6997.7 $1774.2
Specialty:
Licensing 504.2 274.8 392.6
Food Service 385.1 54.4
Total Net Revenues 7887.0 2103.4 392.6
Operating Income 528.1 110.0 205.3
Source: Starbucks, Annual Report (2008).
Competition
Dunkin’ Donuts
Primarily known for fresh donuts, Dunkin’ Donuts competes directly with Starbucks
through the addition of branded coffee both in their stores and in grocery stories. Dunkin’
is a privately owned, multiconcept quick-service franchisor, with more than 13,000 locations
in more than 40 countries, including its popular Dunkin’ Donuts and Baskin-Robbins
chains. Having more than 7,900 shops in 30 countries (5,800 of which are in North
America), Dunkin’ is the world’s leading chain of donut shops. Baskin-Robbins is a leading
seller of ice cream and frozen snacks with its nearly 6,000 outlets, half of which are
located in the United States. About 1,100 locations offer a combination of the company’s
brands. Recently the company began competing aggressively for Starbucks’ market share
by offering their unique blend of coffees in grocery stores nationwide. Dunkin’ Brands has
released estimated net sales of $517 million for the 2008 fiscal year. 9
Caribou Coffee
Caribou Coffee is a gourmet coffeehouse operator in the United States with 464 coffeehouses,
including 24 franchised locations reported in 2006. The company operates
coffeehouses located in 18 states and the District of Columbia, including 193 coffeehouses
in Minnesota and 62 coffeehouses in Illinois. Additionally, Caribou has been
expanding internationally, but at a more measured pace than Starbucks, their competitor.
Caribou provides gourmet coffee, espresso-based beverages, and specialty teas, baked
goods, whole bean coffee, branded merchandise, and related products. Caribou also
sells its products to grocery stores and mass merchandisers, office coffee providers,
airlines, hotels, sports and entertainment venues, college campuses, and other commercial
customers. Caribou, smaller, is the closest competitor to Starbucks in terms
of product offerings and concept. However, their financial results reported at the end of
2008, although generating $253,899,000 in total revenues, posted a net income loss of
$16,342,000. 10
Peet’s Coffee and Tea
Peet’s Coffee and Tea is a specialty coffee roaster and marketer of roasted whole bean
coffee, hand-selected tea, and related merchandise. Peet’s sells its products in grocery
stores, home delivery, office, restaurant and foodservice accounts, through both companyowned
and operated stores in six states in the United States. Peet’s roasts to order and ships
coffee directly from its roasting facility to its home delivery customers. Peet’s operation is
divided into two business segments: retail and specialty sales. The company operates
166 retail stores in California, Colorado, Illinois, Oregon, Massachusetts, and Washington.
In addition to sales through its retail stores, Peet’s sells products in Safeway Inc.,
CASE 13 • STARBUCKS CORPORATION — 2009 135