Starbucks Latest Response to the Frankenbuck$ Campaign

from <www.starbucks.com June 21, 2001

Starbucks Organic Milk, GMO-free and Fair Trade Certified Coffee Commitments An Update for the Continental USA

Starbucks is committed to sourcing and serving high quality coffee, tea, food and merchandise and to being environmentally and socially responsible.

In March, Starbucks responded publicly to concerns raised by activist organizations and some of our customers regarding synthetic hormones in dairy herds, genetically modified organisms (GMO) in our products, and the purchasing and brewing of Fair Trade Certified coffee in our retail stores.

Like most citizens and companies, Starbucks relies on regulatory agencies to determine what products are safe for human consumption. Starbucks products are in full compliance with all known laws and regulations. Although we are purveyors of the ultimate coffeehouse experience, we are not scientists and are not qualified to comment on the science of genetically modified organisms. Nevertheless, Starbucks has set a clear path for the Company to follow in these areas moving forward.

Organic Milk Position: Starbucks is committed to providing an rBST-free (sometimes called rBGH-free) milk alternative in all company-owned stores in the U.S. by the end of summer 2001.

Progress to Date An organic, rBST-free milk alternative has been tested in some stores and this alternative, along with the already available organic soy, will be available to customers interested in organic milk-based bar beverages in all company-owned stores in the U.S. by the end of July 2001.

Starbucks is working with vendors to determine the feasibility of offering only rBST-free milk in all stores. What we now know is that there is a very limited supply of rBST-free milk and it is much more costly than existing supplies. We continue to work on resolving the supply issues and will evaluate the financial impact of offering rBST-free milk to our customers and the Company. We expect to make a final determination on supply and financial feasibility by the end of this year. Regardless, we will continue to make rBST-free milk available to U.S. customers upon request.

Genetically Modified Organisms Position: Despite the lack of federally enforced labeling practices, Starbucks is committed to offering products without genetically manufactured organisms if they can be made available at a price acceptable to our customers.

Progress to Date Starbucks has confirmed that its core products, coffee and tea, are not genetically modified. We have also completed a review of our other products and determined that the majority are GMO-free. Where we have identified the presence of genetically engineered ingredients, Starbucks is searching for, and evaluating, alternative sources of supply. Starbucks recently launched a test of baked goods prepared with organic ingredients in Seattle and Portland, Oregon, and will continue to monitor quality and customer interest.

Fair Trade Certified Coffee Since October 2000, Starbucks has led the retail specialty coffee industry by offering Fair Trade Certified coffee in all of its company-owned U.S. stores. To become Fair Trade Certified, an importer must meet certain criteria such as paying a minimum price of $1.26 per pound of coffee to cooperatives registered with Fair Trade licensing organizations. Starbucks is committed to offering Fair Trade Certified whole bean coffee worldwide and to offering brewed Fair Trade coffee in all our stores on an ongoing basis.

Progress to Date It is a monumental challenge to source and serve brewed and whole bean Fair Trade Certified coffee that meets our rigorous taste and quality standards at our more than 2,400 company-owned stores in the U.S. Achieving this goal requires an unwavering commitment not only from Starbucks partners (employees), but also from our customers, Fair Trade certifying agencies, international coffee brokers and the farmers who grow the coffee in the origin countries.

Despite the challenges, Starbucks is committed to significantly develop the Fair Trade Certified coffee program in our company-owned stores in the U.S., college and universities in the U.S. and in the international markets where Starbucks does business.

From April 25-May 29, 2001, Fair Trade coffee was featured as Starbucks whole bean promotional choice and on May 18, Fair Trade coffee was brewed as Coffee of the Day in all company-owned stores in the U.S. The feedback we received from Starbucks customers and partners was favorable. Since January 2001, weekly sales of Starbucks Fair Trade Certified whole bean coffee have more than doubled.

At Starbucks, our partners (employees) and corporate responsibility partners are committed to continuing to lead the way in coffeehouse innovation, quality, and environmental and social responsibility. We are proud of our accomplishments and recognize that there is still much to do.

To learn more about our commitments, please see Starbucks brochures

Commitment to Origins, Fair Trade, Conservation International and Giving

Back, or call us at 1-800-23-LATTE.