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Starbucks Demonstrates Its Commitment to Social Responsibility Throughout Its Business in Fiscal 2005 Corporate Social Responsibility Annual Report

Published 02-08-06

Submitted by Starbucks Corporation

SEATTLE--(BUSINESS WIRE)--Feb. 8, 2006--

Company Improves Environmental Impact of Its Paper Cups, Exceeds Goals for Sustainable Coffee Purchases, and Increases Purchases of
Renewable Energy

In its fifth Corporate Social Responsibility (CSR) Annual Report, available today on the Company's website, Starbucks Corporation(NASDAQ:SBUX) candidly reports on the progress made to operate its business in a socially responsible way.

Announced at Starbucks Annual Meeting of Shareholders today, the report, entitled "Beyond the Cup," continues to demonstrate the Company's commitment to increased transparency, public disclosure and stakeholder feedback. Throughout the report, Starbucks shows its iconic white cup as a way to offer more candor and disclosure to its readers by using the cup as a vehicle to address frequently asked questions from a variety of stakeholders.

"We believe that being a good corporate citizen is key to our future growth and success," stated Jim Donald, Starbucks chief executive officer. "We are proud of the progress we are making and look forward to continuing our efforts to encourage the sustainable production of high quality coffee, reduce our environmental footprint and give back to the communities we serve."

In addition to providing new information about corporate governance, ethics and sustainable trade, the report highlights several of Starbucks key CSR accomplishments during Fiscal 2005
including:

An Industry First: The Recycled Cup

Starbucks environmental leadership drove development of the first-ever hot beverage cup to contain post-consumer fiber produced by a process that has received a favorable safety review from the Food and Drug Administration (FDA). Designed in collaboration with Starbucks suppliers, Solo Cup Company, MeadWestvaco and Mississippi River Corporation, the new cups contain 10 percent post-consumer recycled paper and will begin rolling out to Starbucks U.S. stores during the second quarter of Fiscal 2006.

Starbucks Pays Premium Prices and Grows Coffee And Farmer Equit(C.A.F.E.) Purchases

Starbucks commitment to the sustainability of coffee farmers and their communities underlies its pledge to pay premium prices for high quality coffee. In Fiscal 2005, Starbucks paid an average price of $1.28 per pound for all of its green (unroasted) coffee -- 23 percent higher than the average commodity (New York "C") market price during this time frame.

The Company's coffee-buying strategies are intended to contribute to the economic and social well-being of coffee farmers and communities, as well as to the conservation of the environment. In support of these efforts, Starbucks is pleased to report that in Fiscal 2005, it purchased 76.8 million pounds of coffee from approved C.A.F.E. Practices approved suppliers in seven countries, exceeding its goal of 75 million pounds.

C.A.F.E. Practices was created by Starbucks in 2001, with input from nongovernmental organizations, academics, governments and the coffee industry to assure high-quality coffee is grown and processed with environmental sensitivity and social equity throughout the coffee supply chain.

Starbucks Becomes Largest Purchaser of Fair Trade Certified(TM) in North America

In Fiscal 2005, Starbucks significantly increased its purchases of Fair Trade Certified(TM) coffee. The Company purchased 11.5 million pounds of Fair Trade Certified(TM) coffee, exceeding its goal of 10 million pounds. This represents approximately 10 percent of global Fair Trade Certified(TM) coffee imports. Twenty-one percent of the Fair Trade Certified(TM) coffee imported into the U.S. in Fiscal 2005 was purchased by Starbucks, making the Company the largest purchaser of Fair Trade Certified(TM) coffee in North America.

Starbucks Significantly Increases Commitment to Purchase Renewable Energy

Starbucks is mindful of the long-term implications of climate change on the environment and its impact on coffee-growing communities. To offset the Company's emissions that contribute to climate change, Starbucks has committed to purchasing 150 million kWh of Green-e certified wind renewable energy certificates (RECs) in Fiscal 2006, which is the equivalent of 20 percent of the annual electricity consumed by Company-operated retail stores in the United States and Canada. This has a similar carbon reduction impact to removing 12,194 average passenger vehicles from U.S. roadways for one year.

Additionally, this move represents a significant increase from Starbucks original Fiscal 2005 commitment to purchase enough RECs to match five percent of the energy needed to power its Company-operated stores in the U.S. and Canada.

Commitment to transparency is an inherent part of Starbucks commitment to CSR -- and the Starbucks CSR Annual Report is one of the Company's primary vehicles for providing transparency. For the fourth year in a row, Starbucks has taken the extra step of ensuring the credibility of the report by having it independently verified by Moss Adams, LLP, a certified public accountant, to provide assurance to stakeholders that the information is accurate and consistent with the Company's values, policies and practices.

Starbucks CSR Annual Report is available at www.starbucks.com/csrannualreport. To request a printed copy, call 1-800-23-LATTE. Starbucks values ongoing feedback from its stakeholders. Readers are encouraged to complete an online survey at www.starbucks.com/csrsurvey.

About Starbucks Coffee Company

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 10,500 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.

Interviews available with:

-- Sandra Taylor, senior vice president, Corporate Social
Responsibility

-- Sue Mecklenburg, vice president, Business Practices

-- Ben Packard, director, Environmental Affairs

Please call Starbucks media contact, Heather Robertson at 206-318-7100 to schedule.

Meeting b-roll footage will be available for download at IA-6, Transponder 21(C-Band) Downlink Frequency: 4120 Vertical Audio 6.2/6.8 on Wednesday, February 8 from 10 a.m. (PT)/1 p.m. (ET) and 1 p.m.
(PT)/4 p.m. (ET).

Copyright Business Wire 2006

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Starbucks Corporation

Starbucks Corporation

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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