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About Mary Williams As one of the few women in the green coffee business, and an exceptionally skilled coffee buyer and taster, Mary Williams’ 30 years of experience has made her a legend. She spent the last ten years with Starbucks, first as vice president, Green Coffee, and then senior vice president, Coffee. In 2002, Williams was named chairwoman of Starbucks Coffee Trading Company, Lausanne, Switzerland. She retired as senior vice president in 2003 and remains an advisor to the company. R E C O G N I T I O N C S R 2 0 0 3 C O F F E E 36 • Starbucks was awarded the Colombian Order of The Grand Cross Medal, the highest honor given by the State of Nariño. For years Starbucks has contributed to the economy of the State of Narino through our purchases of high-quality coffee at premium prices. Starbucks also invested in a housing improvement project that benefits 500 farming families. It is the first time this honor has been given to a coffee company or a nonpolitical organization. • The Rainforest Alliance presented its 2003 Individual Green Globe Award to Mary Williams, Starbucks retired senior vice president of Coffee. The Individual Green Globe Award celebrates people who demonstrate dedication, innovation and a commitment to the global environment. The Rainforest Alliance honored Mary for her lifelong commitment to merging the definitions of quality and sustainability in the specialty coffee industry. • Mary Williams received the 2003 Lifetime Achievement Award from the Specialty Coffee Association of America (SCAA). This award recognized Mary for a career of excellence in providing inspiration, direction and leadership. • The National Coffee Congress presented the Costa Rica Coffee Merit Medal to Mary Williams. The award recognized her instrumental role in developing and supporting the Costa Rica specialty coffee industry. The recognition marks the first time a non–Costa Rican resident and woman received the honorable distinction.
G O I N G F O R W A R D Starbucks is wholeheartedly committed to making a positive difference in the lives of farmers and their communities by promoting the sustainability of coffee production. In pursuing this goal, our focus in 2004 will be on the following: • Increase the amount of independently verified sustainable coffee we purchase from suppliers who successfully adopt Starbucks Coffee Sourcing Guidelines by 100% over fiscal year 2003 (see chart below) including a 15% increase in conservation (shadegrown) and certified organic coffees that meet the guidelines. • Open a field office in Costa Rica that enables us to reach out and work directly with farmers, helping them improve their production of high-quality, sustainable coffee. • Invest in more social development projects that benefit coffee-growing communities around the world, including projects in Latin America, Africa and Indonesia. • Provide $1.5 million over three years, including $300,000 in fiscal 2004, to support the expansion of the Conservation International coffee program in Central America, Peru and Colombia. Demonstrate leadership of the Conservation Coffee Alliance by signing a three-way memorandum of understanding between Starbucks, CI and USAID for a $1.2 million project to expand the Conservation Coffee program in Mexico, Costa Rica and Panama. • Maintain our commitment to purchasing Fair Trade Certified coffee, and increase the number of places where Fair Trade Certified coffee is available and the countries where we have licensing agreements in order to meet consumer demand. Coffee Sourcing Guidelines Five-Year Targets �� 37 fiscal year �� C O F F E E C S R 2 0 0 3
Page 1 and 2: L I V I N G O U R VA L U E S Corpor
Page 3 and 4: living our values 2 14 22 38 48 70
Page 5 and 6: Provide a great work environment an
Page 7 and 8: T H E H E L P L I N E Another vehic
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Page 17 and 18: Embrace diversity as an essential c
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Page 25 and 26: Apply the highest standards of exce
Page 27 and 28: ETHIOPIA ZIMBABWE KENYA TANZANIA YE
Page 29 and 30: Coffee Sourcing ��
Page 31 and 32: Preferred Supplier Program Progress
Page 33 and 34: Certified and Conservation Coffees
Page 35 and 36: Conservation Coffee Program Report
Page 37: P R O V I D I N G F A R M E R S A C
Page 41 and 42: Develop enthusiastically satisfi ed
Page 43 and 44: B R I N G I N G S T A R B U C K S T
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Page 49 and 50: We have relayed these concerns to o
Page 51 and 52: Contribute positively to our commun
Page 53 and 54: Make Your Mark M A K E Y O U R M A
Page 55 and 56: E A R T H D A Y Celebrating Earth D
Page 57 and 58: T H E S T A R B U C K S F O U N D A
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Page 61 and 62: L O C A L A C T I O N Starbucks sup
Page 63 and 64: T A Z O A N D M E R C Y C O R P S T
Page 65 and 66: Tea and Paper Sourcing ��
Page 67 and 68: Store Design and Operations ��
Page 69 and 70: PAINTS WITH LOWER AMOUNTS OF VOLATI
Page 71 and 72: G O I N G F O R W A R D Starbucks w
Page 73 and 74: Recognize that profi tability is es
Page 75 and 76: Company Profile ��
Page 77 and 78: E X P E C T A T I O N S O F O U R S
Page 79 and 80: G O I N G F O R W A R D As a public
Page 81 and 82: A B O U T T H I S R E P O R T Starb
Page 84: © 2004 Starbucks Coffee Company. A

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