The culmination of these activities throughout the year resulted in nearly 3,000 international locations open at the end of fiscal 2005, which includes opening 2,400 stores outside of North America in less than ten years. That number is even more remarkable when it is considered that it took the company nearly three decades to achieve similar growth in the United States.

The company plans to continue to pursue opportunities toward its long-term goal of at least 15,000 international locations.

Retail Business

In July the company launched Green Tea Frappuccino blended beverage made with Tazo Green Tea and Tazo Green Tea Shaken beverages. It surpassed the company’s expectations and was a great example of cross-market collaboration. The company reintroduced its highly anticipated Pumpkin Spice Latte, complimented this year by the company’s pumpkin cream cheese muffin.

Ethos Water

Through the fiscal year end, Ethos Water has surpassed the company’s previous bottled water sales by more than 30%. In 2005, the company contributed 250,000 to water projects, and in 2006 the company is estimating at least a million dollars from the donation of 5 cents for every bottle of Ethos water sold.

New CD Offerings

More than 60% of the Possibilities CD sold in the United States were purchased in the company’s stores.

Holiday Beverages

The company has introduced two new holiday beverages, Chai Eggnog Latte and Eggnog Frappuccino. Starbucks new petite cookies, in four different flavors, joins the company’s seasonal pastries. Starbucks coffee experts have created a blend of Latin America and Asia Pacific coffees, punctuated by aged Indonesia coffee sourced specifically for this once a year offering.

Holiday Merchandise

The company’s lineup includes Starbucks exclusive gift packs and collectibles, two new seasonal Starbucks card designs, an expanded selection of Starbucks chocolates, the Barista Bear, and the new Hear Music holiday CDs, all at a variety of price points.

The company has two new CD offerings for the holidays, both exclusive to Starbucks - ‘Elton John''s Christmas Party’ consists of 21 classic holiday songs and ‘Baby It''s Cold Outside’ is filled with holiday favorites.

Specialty Business

In September, the company achieved a milestone with the opening of the 100th Seattle''s Best Coffee licensed cafe in Borders Books & Music stores so management believes the company is on its way to reaching its 400-store target.

Seattle''s Best Coffee will be the exclusive brewed coffee and espresso beverage for room service, banquets, catering and restaurants in more than 104 Points by Sheraton properties in the US by early 2006.

The recent natural disasters have impacted coffee farmers in Mexico and Central America.

The company estimates that there has been an approximate 5% production loss on all coffee, that''s both Arabica and Robusta, combined that is grown and processed in the impacted regions. As a result of the company’s ongoing visits, Starbucks has expedited distribution of $1 million.

Key questions from the fourth-quarter earnings call conducted by Starbucks Corp. on November 17th, 2005.

How does what you have learned in the larger international markets such as Japan and the UK affect the way that you accelerate your development in China, particularly from an ownership structure and from a competitive standpoint?