Starbucks Corporation CORPORATE SOCIAL RESPONSIBILITY ...

Going ForwardStarbucks is committed to purchasing Fair Trade Certified coffee as a way of supporting the network of Fair Traderegistered coffee cooperatives. Specifically, Starbucks plans to:• Link global purchases of Fair Trade Certified coffeeto customer demand in fiscal 2007. Using fiscal 2006demand as a barometer, we expect that Fair TradeCertified coffees could represent approximately fivepercent of our total coffee purchases in a given year.• Work with the Fair Trade national initiatives to promoteand increase customer demand and sales of our FairTrade Certified coffees while also collaborating on astreamlined approach to the global distribution of thisproduct.• Offer Kirkland Signature Fair Trade Certified coffee toCostco for stores located in the UK, Japan, Taiwan andKorea beginning in fiscal 2007.• Support and promote the sale of Café Estima Blend coffee in Starbucks company-operated stores, foodservicechannels and other points of distribution.• Continue to work with Fair Trade organizations tocommunicate key findings and challenges, providetransparency to the farmer level, augment the businesscapacity of participating Fair Trade cooperatives, andsupport a multipronged approach to ethical, sustainablecoffee purchasing.Purchasing Certified Organic andConservation CoffeesStarbucks purchases certified organic and conservation(shade grown) coffees. These purchases support thecompany’s larger effort to preserve the natural environmentand/or promote economic stability. (See graphs at right foramounts purchased.)Over the years Starbucks has purchased millions of poundsof conservation coffees grown by farmers participating in CI’sConservation Coffee SM program. This particular source of oursupply stems from the alliance Starbucks and CI formed in1998 to encourage farmers to use ecologically sound growingpractices that help protect biodiversity in environmentallysensitive areas and to stimulate the production and sale ofhigh-quality coffee grown under the canopy of bird-friendlyshade trees.Today, much of the conservation coffee grown byparticipating farmers is also certified organic or “intransition”coffee, the term used when an agricultural productis grown under organic conditions but has yet to be certified.Beginning in fiscal 2007, the coffee Starbucks purchases fromfarmers participating in the Conservation Coffee SM programwill no longer be tracked as conservation coffee. Instead wewill track only certified organic coffee purchases rather thanspecifying both organic and conservation purchases, whichin many cases is the same coffee. Fair Trade Certified coffeethat is also certified organic will continue to be tracked inboth ways.Pounds(kilograms)6 million(3 million)Certified Organic Coffee9 million(4 million)12 million*(5 million)Fiscal year 2004 2005 2006*Represents 4% of Starbucks total coffee purchases.As consumer demand for certified organic coffee continuesto grow, Starbucks purchases of this coffee has also increased.Some of the certified organic coffee Starbucks buys isproduced by farmers participating in the Fair Trade system,in which case this coffee is included in our total purchasesof both Fair Trade Certified and certified organic. Inother instances, certified organic coffee is purchased fromfarmers participating in Conservation International’s (CI)Conservation Coffee SM program, and therefore accounted aspurchases of conservation, organic and possibly even FairTrade Certified coffees.Pounds(kilograms)Conservation (Shade Grown) Coffee2 million(1 million)2 million(1 million)2 million*(1 million)In fiscal 2006, Starbucks offered two specifically labeledtypes of certified organic coffee, and Seattle’s Best Coffee soldeight varieties.Fiscal year 2004 2005 2006*Represents 1% of Starbucks total coffee purchases.Note: Coffees may be certified in more than one category.P R O D U C T S 25