Starbucks reports global like-for-likes up 2% in Fourth Quarter: Starbucks has reported global like-for-like sales increased 2% in the 13 week period to 1 October 2017, driven by a 2% increase in average ticket and a 1% increase in transactions; up 3% excluding the impact from Hurricanes Harvey and Irma. In the Americas, like-for-likes increased 3%, driven by a 2% increase in average ticket and a 1% increase in transactions. In the US, like-for-like sales increased 2%. Excluding the impact from Hurricanes Harvey and Irma, US like-for-likes were up 3%, driven by a 1% increase in transactions. China and Pacific markets like-for-likes increased 2% with China like-for-likes up 8%, driven by a 7% increase in transactions. Consolidated net revenues were $5.7 billion versus $5.7 billion in the prior year quarter. Excluding $412.4 million for the extra week in Q4 FY16, consolidated net revenues grew 8%. The company opened 603 net new stores globally, bringing total store count to 27,339 across 75 countries. Membership in Starbucks Rewards grew 11% year-over-year to 13.3 million active members in the US, with member spend representing 36% of US company-operated sales. Mobile Order and Pay reached 10% of transactions in US company-operated stores. Chief executive and president Kevin Johnson said: “Starbucks reported another quarter – and year – of strong performance, with each of our business segments around the world contributing to record results. Food, beverage and digital innovation are bringing customers into our stores at the same time as on-going operational improvements are enabling us to drive increased throughput – particularly in our busiest stores at peak – and deliver a further elevated Starbucks Experience to our customers.” Chief financial officer Scott Maw added: “Starbucks delivered solid top and bottom line growth – and our strongest quarterly traffic number in the US since mid-2016 – despite a difficult operating environment in both the quarter and year. Continued strong growth and performance from CAP demonstrates that Starbucks now has two significant profit engines driving our global returns, our North America business and the broader CAP market.”

Starbucks sells Tazo tea brand to Unilever for $384m: Starbucks has agreed to sell its Tazo tea brand to Unilever for $384 million in a deal that will enable the company to focus on a single brand of tea, Teavana. Unilever will acquire Tazo’s recipes, intellectual property and inventory. Starbucks acquired the brand in 1999 for $8.1 million, five years after Tazo was founded. Tazo is primarily sold in grocery and convenience stores. The deal for Tazo comes months after Starbucks said it would close all 379 of its Teavana locations and would focus on selling Teavana inside its coffee shops, rather than at stand-alone retail locations. Starbucks said that, by selling Tazo, it would “sharpen its focus on its up-level tea strategy with Teavana”. The company plans to invest in growth, innovation and development of Teavana. Tea sales inside of Starbucks locations are growing at double digits annually, particularly as the chain expands in Asia and other markets where tea is popular. The company believes the Teavana business could be worth more than $3 billion in five years, and over the past 12 months the company has sold $1.6 billion worth of Teavana beverages inside its stores. “With our growth strategy for premium tea exclusively focused on Teavana, we are pleased to transition our Tazo business to Unilever,” Starbucks chief executive Kevin Johnson said.