Starbucks Corporation (SBUX) |
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Starbucks's Suppliers Performance
SBUX's Supply Chain
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SBUX
Costs vs Sales of Suppliers Growth |
Starbucks's Suppliers realized sales deteriorated by -5.58 % compare to the same quarter a year ago, sequentially sales grew by 2.52 %, while their net margin rose to 4.66 % year on year, compare to previous quarter SBUX's Suppliers had lower net margin at 2.52 %,
• More on SBUX Suppliers
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Starbucks's Suppliers realized sales deteriorated by -5.58 % compare to the same quarter a year ago, sequentially sales grew by 2.52 %, while their net margin rose to 4.66 % year on year, compare to previous quarter SBUX's Suppliers had lower net margin at 2.52 %,
• More on SBUX Suppliers
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Starbucks's Comment on Supply Chain
Starbucks is committed to selling the finest whole bean coffees and coffee
beverages. To ensure compliance with our rigorous coffee standards, we control
coffee purchasing, roasting and packaging, and the global distribution of coffee
used in our operations. We purchase green coffee beans from multiple coffee-producing
regions around the world and custom roast them to our exacting standards for
our many blends and single origin coffees.
The price of coffee is subject to significant volatility. Although most coffee
trades in the commodity market, high-altitude arabica coffee of the quality
sought by Starbucks tends to trade on a negotiated basis at a premium above
the "C" coffee commodity price. Both the premium and the commodity
price depend upon the supply and demand at the time of purchase. Supply and
price can be affected by multiple factors in the producing countries, including
weather, natural disasters, crop disease, general increase in farm inputs and
costs of production, inventory levels and political and economic conditions.
Price is also impacted by trading activities in the arabica coffee futures market,
including hedge funds and commodity index funds. In addition, green coffee prices
have been affected in the past, and may be affected in the future, by the actions
of certain organizations and associations that have historically attempted to
influence prices of green coffee through agreements establishing export quotas
or by restricting coffee supplies.
We buy coffee using fixed-price and price-to-be-fixed purchase commitments,
depending on market conditions, to secure an adequate supply of quality green
coffee. Price-to-be-fixed contracts are purchase commitments whereby the quality,
quantity, delivery period, and other negotiated terms are agreed upon, but the
date, and therefore the price, at which the base "C" coffee commodity
price component will be fixed has not yet been established. For these types
of contracts, either Starbucks or the seller has the option to select a date
on which to "fix" the base "C" coffee commodity price prior
to the delivery date. Until prices are fixed, we estimate the total cost of
these purchase commitments.
We depend upon our relationships with coffee producers, outside trading companies
and exporters for our supply of green coffee. We believe, based on relationships
established with our suppliers, the risk of non-delivery on such purchase commitments
is remote.
To help ensure the future supply of high-quality green coffee, and to reinforce
our leadership role in the coffee industry, Starbucks operates six farmer support
centers. The farmer support centers are staffed with agronomists and sustainability
experts who work with coffee farming communities to promote best practices in
coffee production designed to improve both coffee quality and yields.
In addition to coffee, we also purchase significant amounts of dairy products,
particularly fluid milk, to support the needs of our company-operated stores.
We believe, based on relationships established with our dairy suppliers, that
the risk of non-delivery of sufficient fluid milk to support our stores is remote.
Products other than whole bean coffees and coffee beverages sold in Starbucks®
stores include tea and a number of ready-to-drink beverages that are purchased
from several specialty suppliers, usually under long-term supply contracts.
Food products, such as La Boulange™ pastries, breakfast sandwiches and
lunch items, are purchased from national, regional and local sources. We also
purchase a broad range of paper and plastic products, such as cups and cutlery,
from several companies to support the needs of our retail stores as well as
our manufacturing and distribution operations. We believe, based on relationships
established with these suppliers and manufacturers, that the risk of non-delivery
of these items is remote.
Starbucks's Comment on Supply Chain
Starbucks is committed to selling the finest whole bean coffees and coffee
beverages. To ensure compliance with our rigorous coffee standards, we control
coffee purchasing, roasting and packaging, and the global distribution of coffee
used in our operations. We purchase green coffee beans from multiple coffee-producing
regions around the world and custom roast them to our exacting standards for
our many blends and single origin coffees.
The price of coffee is subject to significant volatility. Although most coffee
trades in the commodity market, high-altitude arabica coffee of the quality
sought by Starbucks tends to trade on a negotiated basis at a premium above
the "C" coffee commodity price. Both the premium and the commodity
price depend upon the supply and demand at the time of purchase. Supply and
price can be affected by multiple factors in the producing countries, including
weather, natural disasters, crop disease, general increase in farm inputs and
costs of production, inventory levels and political and economic conditions.
Price is also impacted by trading activities in the arabica coffee futures market,
including hedge funds and commodity index funds. In addition, green coffee prices
have been affected in the past, and may be affected in the future, by the actions
of certain organizations and associations that have historically attempted to
influence prices of green coffee through agreements establishing export quotas
or by restricting coffee supplies.
We buy coffee using fixed-price and price-to-be-fixed purchase commitments,
depending on market conditions, to secure an adequate supply of quality green
coffee. Price-to-be-fixed contracts are purchase commitments whereby the quality,
quantity, delivery period, and other negotiated terms are agreed upon, but the
date, and therefore the price, at which the base "C" coffee commodity
price component will be fixed has not yet been established. For these types
of contracts, either Starbucks or the seller has the option to select a date
on which to "fix" the base "C" coffee commodity price prior
to the delivery date. Until prices are fixed, we estimate the total cost of
these purchase commitments.
We depend upon our relationships with coffee producers, outside trading companies
and exporters for our supply of green coffee. We believe, based on relationships
established with our suppliers, the risk of non-delivery on such purchase commitments
is remote.
To help ensure the future supply of high-quality green coffee, and to reinforce
our leadership role in the coffee industry, Starbucks operates six farmer support
centers. The farmer support centers are staffed with agronomists and sustainability
experts who work with coffee farming communities to promote best practices in
coffee production designed to improve both coffee quality and yields.
In addition to coffee, we also purchase significant amounts of dairy products,
particularly fluid milk, to support the needs of our company-operated stores.
We believe, based on relationships established with our dairy suppliers, that
the risk of non-delivery of sufficient fluid milk to support our stores is remote.
Products other than whole bean coffees and coffee beverages sold in Starbucks®
stores include tea and a number of ready-to-drink beverages that are purchased
from several specialty suppliers, usually under long-term supply contracts.
Food products, such as La Boulange™ pastries, breakfast sandwiches and
lunch items, are purchased from national, regional and local sources. We also
purchase a broad range of paper and plastic products, such as cups and cutlery,
from several companies to support the needs of our retail stores as well as
our manufacturing and distribution operations. We believe, based on relationships
established with these suppliers and manufacturers, that the risk of non-delivery
of these items is remote.
SBUX's Suppliers Net Income grew by |
SBUX's Suppliers Net margin grew in Q4 to |
2.67 % |
4.66 % |
SBUX's vs. Suppliers, Data
(Revenue and Income for Trailing 12 Months, in Millions of $, except Employees)
COMPANY NAME |
MARKET CAP |
REVENUES |
INCOME |
EMPLOYEES |
Starbucks Corporation |
127,788 |
23,170 |
662 |
238,000 |
Mccormick and Co Inc |
57,207 |
5,601 |
747 |
10,000 |
Mondel z International Inc |
78,047 |
26,581 |
3,569 |
104,000 |
Sysco Corporation |
41,455 |
45,902 |
-338 |
51,700 |
Nimtech Corp |
181 |
0 |
0 |
1 |
Lsi Industries Inc |
257 |
281 |
8 |
1,292 |
Performance Food Group Company |
7,465 |
26,667 |
-175 |
13,000 |
Pilgrim s Pride Corporation |
5,655 |
12,092 |
95 |
29,100 |
Cal maine Foods Inc |
1,878 |
1,458 |
76 |
3,277 |
Clearwater Paper Corporation |
611 |
1,869 |
175 |
3,300 |
Sugarmade Inc |
17 |
5 |
-12 |
21 |
Sonoco Products Company |
6,227 |
5,237 |
207 |
20,000 |
Fuling Global Inc |
0 |
151 |
15 |
1,129 |
Tupperware Brands Corporation |
1,736 |
1,668 |
19 |
13,000 |
Alarm com Holdings Inc |
4,893 |
618 |
77 |
784 |
American Software Inc |
663 |
115 |
7 |
372 |
Cornerstone Ondemand Inc |
3,407 |
741 |
-40 |
1,891 |
Egain Corporation |
379 |
76 |
8 |
479 |
Everbridge Inc |
5,559 |
271 |
-93 |
581 |
Instructure Inc |
1,855 |
258 |
-81 |
1,140 |
Liveperson Inc |
4,516 |
344 |
-122 |
981 |
Healthstream Inc |
734 |
245 |
14 |
955 |
Numerex Corp |
75 |
67 |
-21 |
157 |
George Risk Industries Inc |
58 |
16 |
4 |
175 |
SUBTOTAL |
222,876 |
130,262 |
4,139 |
257,335 |
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