Being Responsive to Our Customers<strong>Starbucks</strong> customers expect an outstanding coffeeexperience – at their local store and in every <strong>Starbucks</strong>around the world – each time they visit. In the spiritof our fourth Guiding Principle, which inspires us to“develop enthusiastically satisfied customers all of thetime,” we are constantly looking for ways to meet or exceedtheir expectations.At the end of fiscal 2006, we were serving customers aroundthe world more than 40 million times per week. To ensuretheir <strong>Starbucks</strong> Experience is consistently excellent whereverthey are, it’s essential that we stay in touch. We strive torespond to every customer comment appropriately and ina timely manner. We use our customers’ feedback to makeimprovements that enhance their experience and earn theirloyalty and respect.Listening to Our CustomersSeveral channels are available for customers to provide theirfeedback. They can call <strong>Starbucks</strong> customer relations at atoll-free number, fill out in-store comment cards, or submitcomments online at <strong>Starbucks</strong>.com. We welcome the valuablecomments we receive from our customers, which we sharewith store partners, management and others as appropriate.In fiscal 2006, <strong>Starbucks</strong> received more than 890,000customer contacts. The majority of customer contactsconcerned the use of a <strong>Starbucks</strong> Card or the service in a<strong>Starbucks</strong> store. Less than two percent of the total volume ofcustomer contacts related to <strong>Starbucks</strong> social responsibility.Consistent with prior years, the areas of social responsibilitythat customers asked about most often pertained to <strong>Starbucks</strong>recycling policies and our ethical sourcing of coffee.<strong>Starbucks</strong> is devoted to acting responsibly in all areas ofour business practices and we appreciate that our customersshare our concerns. To learn more about <strong>Starbucks</strong> ongoingenvironmental efforts or the way we source and purchasecoffee, please see pages 54 and 16 respectively.Customer FeedbackThrough various channels, customers also expressed theirinterest in other CSR-related issues in fiscal 2006, including:our support of the U.S. military; our policy on supportingrodeos; the presence of rBGH in our dairy products; thecaffeine content in our coffee; and our marketing practicesrelated to youth and <strong>Starbucks</strong> liqueur products. A summaryof <strong>Starbucks</strong> policies on each of these issues is provided inthis section.<strong>Starbucks</strong> Support of the U.S. MilitaryMore than three years ago a single e-mail erroneouslyaccused <strong>Starbucks</strong> of not supporting U.S. military personnel.The private e-mail began to circulate widely online. In asubsequent e-mail, the author apologized for the earliermisstatement and retracted it. Despite this, the original,inaccurate e-mail has continued to circulate, and customersfrequently ask about it. We assure them that this onlinerumor is absolutely false.<strong>Starbucks</strong> and our partners have consistently demonstratedsupport of U.S. military personnel in a number of ways. Wewere honored to receive a 2006 Freedom Award from theDepartment of Defense. For specific information about theFreedom Award and our ongoing efforts with the AmericanRed Cross to support U.S. military personnel, please visit<strong>Starbucks</strong>.com.rBGH-free DairyWe are actively working with our suppliers to secure anadequate milk supply that is rBGH-free. rBGH is a syntheticgrowth hormone given to dairy cows to stimulate milkproduction. See page 32 for more information about ourefforts to require our core dairy products to be rBGH-free.<strong>Starbucks</strong> Affiliation with RodeosAs a member of the communities we serve, and as a wayto share the joy of coffee, <strong>Starbucks</strong> often supports localactivities or events. We frequently donate coffee or host coffeeseminars, free of charge, with no expected recognition inreturn. These community efforts are not a sponsorship noran endorsement of any event or activity. They are simply away for <strong>Starbucks</strong> to lend a helping hand and support thecommunity. It is in this way that <strong>Starbucks</strong> has been affiliatedwith rodeo events in Texas, Wyoming and Calgary, Canada.We have never sponsored a rodeo event. Our goal is always tosupport, not offend, our community of neighbors.Caffeine Content in <strong>Starbucks</strong> CoffeeWe select the finest quality arabica coffees from around theworld and roast them to our signature <strong>Starbucks</strong> Roast. ® Nomatter how carefully or precisely we roast our coffee, notevery cup of <strong>Starbucks</strong> coffee will contain exactly the sameamount of caffeine. Many variables contribute to caffeinecontent from cup to cup, including where the beans weregrown and roasted, the brewing method, grind, and type ofcoffee beverage purchased. We recognize that some people aresensitive to caffeine. For customers concerned about caffeinecontent, we offer several decaffeinated coffees, teas andother beverages, including Frappuccino ® blended beverages,in most markets. Information about the health effects ofcaffeine is available online at www.coffeescience.org orwww.ico.org/caffeine.asp.S O C I E T Y51
Marketing to Youth<strong>Starbucks</strong> customers include people of every ethnicity,income, and age group with varying tastes and interests. Inaddition to our beverages and food items, <strong>Starbucks</strong> offersproducts meant to educate and entertain all age groups. Wealso seek out philanthropic opportunities, including eventsponsorships, to support the activities and programs that areimportant to the communities in which we operate.Some of our product offerings and community activitiesmay appeal to young people. We are extremely mindful ofconnecting with youth in a responsible manner.Responsible Marketing of Liqueurs<strong>Starbucks</strong> and Jim Beam are committed to the responsiblemarketing of <strong>Starbucks</strong> Cream Liqueur and <strong>Starbucks</strong> Coffee Liqueur. The pricing, branding, packaging andmarketing are specifically designed to target matureconsumers. Additionally, <strong>Starbucks</strong> partners who manage ourliqueur brands are trained on the Distilled Spirits Council ofthe United States (DISCUS) Code of Responsible Practicesfor Beverage Alcohol Advertising and Marketing.Both products are available only in locations licensed to selldistilled spirits and are not sold in <strong>Starbucks</strong> retail locations.Customer SurveysCustomer surveys offer another mechanism to obtainfeedback about the quality of our customers’ experience.We recently altered our research methods, moving beyondsurveying for satisfaction and focusing instead on identifyingfactors that influence our customers’ experience and theirconnection to the <strong>Starbucks</strong> brand.In fiscal 2006 <strong>Starbucks</strong> launched a new survey tool to gatherongoing input from coffee consumers and our customers,including those who had visited <strong>Starbucks</strong> within 30 days ofthe time of the survey.When customers were surveyed between May and August2006 and asked whether they would recommend <strong>Starbucks</strong>to a friend or family, 87 percent responded that they wereextremely or very likely to recommend <strong>Starbucks</strong>.Our recent surveys also have found that the majority ofrespondents are unaware of the company’s socially responsibleinitiatives, including <strong>Starbucks</strong> support for communityactivities such as local education programs and clean waterprojects. Awareness among our customers was greater thanamong the general population, with 38 percent associating<strong>Starbucks</strong> with good corporate citizenship, although westrive to do a better job informing customers about ourefforts to be socially responsible in all aspects of our globalbusiness operations.To gauge customer acceptance of <strong>Starbucks</strong> in theirneighborhoods, we recently asked survey respondents,specifically those who presently live near a <strong>Starbucks</strong>, whattheir overall feeling was about having a <strong>Starbucks</strong> coffeeshop near their home. We found that 66 percent had positivefeelings about having a <strong>Starbucks</strong> store in their neighborhood,while five percent indicated negative feelings. When we askedother respondents, those who do not currently live near a<strong>Starbucks</strong>, how they would feel about having a <strong>Starbucks</strong>coffee shop open near their home, 53 percent indicatedpositive feelings and 10 percent indicated negative feelings.(See pie charts.)The level of positive consumer acceptance that already existsfor <strong>Starbucks</strong> is encouraging, particularly given our plansfor future growth. We believe <strong>Starbucks</strong> demonstratedcommitment to social and environmental responsibilitymatters to consumers and, if we are successful in increasingawareness, will help us continue to gain acceptance in localcommunities and among our neighbors.Q: What is your overall feeling about having a <strong>Starbucks</strong> coffee shop near your home?Somewhat positive16%Very positive25.8%Extremely positive23.8%Respondents who presently have a <strong>Starbucks</strong> near home.Neutral/neither positiveor negative29.3%Somewhat negative2.9%Very negative0.9%Extremely negative1.3%Q: How would you feel about a <strong>Starbucks</strong> coffee shop opening near your home?Somewhat positive12.7%Very positive17.9%Extremely positive22.4%Respondents who do not presently have a <strong>Starbucks</strong> located near home.Neutral/neither positiveor negative36.9%Somewhat negative3.6%Very negative1.7%Extremely negative4.9%S O C I E T Y52