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Starbucks Distributes 2003 Special Reserve Coffee Award Money to Farming Cooperatives in Indonesia, Guatemala and Kenya

Published 05-04-04

Submitted by Starbucks Corporation

SEATTLE — Starbucks Coffee Company (Nasdaq: SBUX) announced today the distribution of award money to four coffee farming communities in Sumatra, Guatemala and Kenya that won the 2003 Starbucks® Special Reserve contest, the company’s annual search for the world’s best coffee. The funding will be used to support social improvement projects that were jointly determined by the winning farming cooperative and Starbucks.

“Starbucks is fortunate to work with farmers who produce the world’s best coffee,” said Dub Hay, senior vice president, Coffee for Starbucks. “We value our relationships with all coffee farmers and we hope our Starbucks® Special Reserve financial investments make a lasting difference in these remote communities. The social fund component of our program is another example of how Starbucks looks for ways to positively contribute to the people and places that grow our coffee.”

The money will be divided equally between the communities for the following projects:

  • Indonesia, Sumatra (Lintong, Sileang Village) – water supply system
    To date, this village of 75 houses has relied on rain as the primary source of water. The Special Reserve award will be used to construct a water supply system from a natural spring that lies approximately 500 meters away from the village. Soon, the villagers will have direct access to a constant supply of fresh water.

  • Guatemala (San Marcos, Finca las Nubes) – health clinic construction
    A local work force will build a new health clinic that will serve more than 2,800 people during the harvest season. Plans for the clinic include a waiting room, reception and patient control office, medicine cabinet, lab, shower, dental operating room, maternity ward, two patient rooms and four restrooms. All restrooms will have hot water showers.

  • Guatemala (Antigua, Finca Santa Clara) – expansion of health clinic services and construction of kitchen, dining room and restroom
    Funding will be used to make infrastructure improvements on a building used by temporary workers during harvest season. Additionally, the farm will expand health services to the community by providing eye exams, women’s health services and educational materials for health awareness.

  • Kenya (Nyeri, regional cooperatives) – purchase of ambulance for Nyeri Hospice
    As a non-profit organization, Nyeri Hospice is located in the heart of a coffee growing community in Nairobi. The hospice cares for terminally ill cancer patients and HIV-AIDS patients. Starbucks social project funding will be used to purchase a four-wheel drive vehicle that will transport medical staff to patient residences or patients to the hospice.

    Looking ahead to the 2004 Starbucks® Special Reserve Coffee, Starbucks has invited coffee growers, exporters and importers to submit their finest coffee for consideration.

    “The search for the world’s best coffee is never-ending,” continued Hay. “Even as we celebrate the success of last year’s Special Reserve coffee and the resulting social programs, I’m looking forward to the exotic and unique coffees we will taste and consider for Special Reserve 2004.”

    Through May, Starbucks Coffee Trading Company in Lausanne, Switzerland will accept coffee samples from around the world. After roasting the samples, Starbucks experienced coffee tasters will select their favorites of the 2004 crop year through their standard rigorous cupping process, evaluating each coffee’s individual excellence on four key attributes: aroma, body, acidity and flavor. This fall, Starbucks will unveil its 2004 Special Reserve Blend, inviting customers to sample the finest coffee of the growing season. It will also work with the winning farmers to identify social programs that will benefit their community.

    Introduced in 2001, Starbucks® Special Reserve is a contest that highlights the company’s passion for exceptional coffee and commitment to preserving sustainable coffee farming practices on farms of all sizes. The Special Reserve designation has been awarded by Starbucks to recognize coffee from farms that produce coffee that perfectly captures the best of the year’s growing season. In addition to paying a fair price for the premium coffees from the winning farms, Starbucks makes a financial contribution to the community where the farms are located to help fund a relevant project, such as education or medical efforts.

    Social improvements completed as a result of past Special Reserve programs include advanced dental equipment in farm health care facilities; transportation upgrades; and enhancements to coffee processing facilities that help improve the quality of coffee on participating cooperatives, reduce the impact to the environment, increase production yields, and boost profitability.

    Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 7,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim. The Company is committed to offering the highest quality coffee and the Starbucks Experience while conducting its business in ways that produce social, environmental and economic benefits for communities in which it does business.

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    Starbucks Corporation

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    It's the way we do business Contributing positively to our communities and environment is so important to Starbucks that it's a guiding principle of our mission statement. We jointly fulfill this commitment with partners (employees), at all levels of the company, by getting involved together to help build stronger communities and conserve natural resources.

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