and TransFair USA Enter into Breakthrough Alliance to Promote
Fair Trade Certified Coffee
SEATTLE / OAKLAND, Calif.; April 10, 2000 — Starbucks Coffee
Company (Nasdaq:SBUX) and TransFair USA have formed an innovative
alliance in which Starbucks will market Fair Trade Certified
coffee in over 2,000 retail locations across the United
States and through the Starbucks.com website. Starbucks
purchases of Fair Trade Certified coffee will be from certified
importers who have paid the farmers a fair price (as defined
by internationally accepted Fair Trade standards for coffee),
which will be a premium over the prevailing market price.
Under the agreement, Starbucks will develop marketing,
promotional and educational materials about Fair Trade Certified
coffee and display TransFair USA's Fair Trade Certified
label on coffee that has been grown, processed, traded and
marketed in accordance with international Fair Trade criteria.
Under the terms of the agreement, Starbucks will source,
roast and sell Fair Trade coffee to meet growing consumer
demand. After one year from the date the Fair Trade Certified
coffee is introduced into the stores, Starbucks and TransFair
will evaluate the success of the initiative and define ongoing
collaboration based on consumer demand.
"This is a breakthrough for Fair Trade Certified coffee
in the United States," said Paul Rice, Executive Director,
TransFair USA. "At a time when international coffee
prices continue to fall, farming families around the world
depend on the US coffee industry to share the success of
the coffee boom. Starbucks extensive network of stores provides
an excellent forum to educate customers about Fair Trade.
We believe that Fair Trade is the most powerful and direct
way for customers to help improve the lives of coffee farmers
and their families around the world."
"We are very excited about the opportunity to bring
Fair Trade coffee certified by TransFair USA to our customers,"
said Dave Olsen, Starbucks senior vice president, Corporate
Social Responsibility. "This program will provide an
additional opportunity for Starbucks to have a meaningful
impact on the working and living conditions faced by many
who grow, harvest and process coffee throughout the world."
Starbucks has already purchased and will roast and sell
Fair Trade Certified coffees initially from both Guatemala
and Nicaragua in calendar year 2000.
Starbucks considers promoting Fair Trade Certified coffee
as one of several promising approaches to improving the
lives of coffee farmers and their families. Starbucks will
continue its efforts with organizations that are helping
coffee farmers and their families through support of CARE,
Conservation International and other similar organizations.
As part of Starbucks comprehensive strategy to support
sustainable coffee production, the company also will expand
its purchases of shade grown and organic coffees. Starbucks
is committed to its goal of sourcing coffees of the highest
quality that support a sustainable social, ecological and
economic model for the production and trade of coffee. Starbucks
believes that continued and growing participation with these
organizations demonstrates our commitment to coffee producers
and their families, communities and natural environment.
TransFair USA, a non-profit agency, is the only organization
providing independent, third-party certification of Fair
Trade products in the US. TransFair promotes mutually-beneficial
relationships between farmers and coffee companies, and
educates consumers about international trade and economic
development. Through regular visits to Fair Trade farmer
cooperatives, and partnerships with participating coffee
companies in the US, TransFair guarantees that farmers who
produce Fair Trade Certified products have received a decent
living wage. By monitoring trade from crop to cup, TransFair
guarantees that Fair Trade Certified products were grown
and traded responsibly.
Starbucks Coffee Company is the leading retailer, roaster
and brand of specialty coffee in the world. In addition
to its retail locations in North America, the United Kingdom,
the Pacific Rim, and the Middle East, Starbucks sells whole
bean coffees through its specialty sales group, direct response
business, supermarkets and online at Starbucks.com. Additionally,
Starbucks produces and sells bottled Frappuccino¨ coffee
drink and a line of premium ice creams through its joint
venture partnerships and offers a line of innovative premium
teas produced by its wholly owned subsidiary, Tazo Tea Company