SEATTLE -- Starbucks Coffee Company responded today to several activist groups, including the Organic Consumers Association (OCA). These groups have asked Starbucks to address their concerns about genetically modified organisms (GMOs) in Starbucks products, the promotion and sale of Fair Trade Coffee in Starbucks locations and the company's commitment to origin countries.
Following is the text copy of the letter that Orin Smith, president and chief executive officer, sent to these groups:
March 16, 2001
Mr. Ronnie Cummins Organic Consumers Association 6114 Highway 61 Little
Marais, MN 55614
Mr. Joe Mendelson Center for Food Safety
Mr. Larry Bohlen Friends of the Earth
Mr. Grahame Russell Rights Action
Ms. Ellen Hickey Pesticide Action Network
Mr. Jim Slama Sustain
Dear Messrs. Cummins, Bohlen, Mendelson, Russell, Slama, and Ms. Hickey:
Your February 14, 2001 letter raises a number of important issues which are also of concern to Starbucks. We were disappointed that Mr. Bohlen declined the invitation extended by Dennis Stefanacci, Starbucks senior vice president for Corporate Social Responsibility, to meet with us face-to-face. You have expressed concern about some very complex social, economic and environmental issues that impact us all, and do not lend themselves to simple solutions. We had hoped to share with you our policies and actions on these issues and to explore how we could work together to achieve those things to which I think we may both be committed. Your refusal to meet unless we have categorically agreed to all your demands signals to us that you may be more interested in using Starbucks as a public forum to express your views than in working cooperatively for constructive solutions.
We still welcome the chance to have a face-to-face meeting. However, in the meantime, we are responding to your letter in writing, as you requested.
We appreciate the concerns you express on the effects of GMOs on human health and the environment. Starbucks first priority is to provide high quality, safe products that fit into our long-standing commitment to address the social and environmental effects of our business. As with virtually every other retailer of food products, Starbucks must rely on governmental agencies charged with food safety responsibility to determine what foods are safe for human consumption, unless there is a substantial body of evidence which contradicts agency positions. We, therefore, have concluded that the products offered in our stores are safe either because they have been approved by government agencies or conform to governmental regulators.
Nevertheless, Starbucks recognizes that some of our customers may be concerned about GMOs, even in the absence of any evidence of harm to the public, and that there will be increasing public debate on the GMO issue. It is unfortunate this debate did not occur before so much of the U.S. and world food supply was made to contain GMOs. As it now stands, as much as 70% of the products sold in supermarkets and more than 95% of the milk supply may have GMOs. Because Starbucks does not produce these goods and does not have control over their supply, we are not in a position to give immediate assurances that we can offer only GMO-free goods. In fact, that was one of the reasons we asked to meet with you -- i.e., to discuss how we might work together to seek constructive solutions to this complex issue.
In the meantime, Starbucks has been, and continues to be, responsive to potential concerns about GMOs. We have examined our entire product line to determine GMO content and to study alternatives where they exist. We have clearly established that our core products, coffee and tea, are completely free of GMOs and are not derived from genetically modified sources. The soymilk that we offer in our stores is certified organic, and therefore GMO-free. As to our remaining products, there is no labeling requirement in the U.S. that obligates producers to disclose the presence of all genetically modified ingredients. Nevertheless, we believe most other products we offer are GMO-free and will continue to work with our existing suppliers or alternative suppliers to assure this is so.
We also understand you have particular concerns about rBST (recombinant bovine somatotropin) in milk products. The U.S. Food and Drug Administration, World Health Organization, American Medical Association, National Institute of Health and regulatory agencies in 30 countries take the position that milk from cows supplemented with rBST is no different from milk from untreated cows.
However, again we recognize that some of our customers have concerns about the presence of rBST in milk products. Therefore, we are taking measures to address those concerns. As soon as we have an alternative source of supply, Starbucks will begin to offer rBST-free milk as an option upon request, just as we currently offer soymilk as an alternative in our beverages. We expect that the rBST-free milk alternative will be available in all our company-owned U.S. stores by the end of this summer.
Currently, 25% of our milk supply is rBST-free. Ultimately, we hope to be able to offer all of our milk products rBST-free. However, even though only about one-third of dairy herds are injected with the synthetic hormone rBST, the USDA advises that, at the current time, significantly less than 5% of the commercially produced milk can be certified as coming from rBST-free herds because of the bulking processes used within the milk industry. Without an adequate source of rBST-free milk, we cannot make immediate changes. However, we are already discussing with existing suppliers what we can do to ensure the remainder of our supply is rBST-free and will push for a solution.
You applaud our decision to sell Fair Trade Coffee in our stores, but insist that we do more. Starbucks has made an enormous commitment to the goal of improving the lives of farmers and their families in the countries where we do business. Our decision to work with TransFair USA, the certifying agency for Fair Trade products in the U.S., to sell Fair Trade Coffee in all our company-owned stores, is one way we have chosen to meet that commitment. Since October 2000, we have offered our stores as a platform for the promotion of Fair Trade Coffee and the education of customers about the coffee and its benefits to coffee farmers and their families. Not only is Starbucks the largest coffee company in the U.S. to offer Fair Trade Coffee, our efforts have been recognized, publicly, by Paul Rice, Executive Director of TransFair USA, who has stated that "Starbucks high-profile support for Fair Trade sends a powerful and visionary message to the rest of the coffee industry -- that the plight of small coffee growers cannot be ignored." We continue to work closely with TransFair USA to achieve our mutual goal of ensuring that the farmers in coffee-origin countries receive a fair share of the price paid for their coffee.
Some of the steps we have taken recently to increase the sale of Fair Trade Coffee in Starbucks stores include:
Selling and promoting Fair Trade Coffee is only one way that Starbucks is addressing its commitment to raising the standards of health, education, safety and economic well-being in the communities where we do business. Starbucks has partnered with Conservation International (CI) to improve the lives of the people who grow shade-grown coffee. One such project is called Evergreen - a fund established by CI and EcoLogic Enterprise Ventures, Inc. with a loan guarantee provided by Starbucks -- that will, for the first time, provide small-scale coffee farmers in Chiapas, Mexico with low-interest loans. In the first year of this project, we are already seeing concrete financial benefits to those farmers, including 40% average increase in participating farmers' income. In addition, later this year, we will be announcing a major partnership with CI to promote and sell organic Shade Grown Mexico coffee on an ongoing basis in all our stores. As is the case with Fair Trade Coffee, these programs ensure that farmers are paid a fair price for their coffee, as well as promoting environmentally friendly growing practices.
Finally, you asked us to provide evidence that we have implemented a code of conduct for our coffee suppliers. To clarify, Starbucks has not developed a supplier "code of conduct." Rather, in April 1998, in conjunction with the human rights activists and social justice organizations, Starbucks developed a Framework for Action which specifies guidelines for activities to improve the lives of people who grow, harvest and process the coffee that Starbucks buys.
We believe we are the only coffee company in the world to agree to such a Framework. We continue to comply with that Framework through a variety of activities such as the partnerships with TransFair USA and Conservation International, as well as many other projects around the world that encourage more sustainable coffee growth methods and directly improve the lives of the coffee farmers and their families, including:
Starbucks takes seriously its commitment to the communities it serves both here in the United States and throughout the world, and is dedicated to continuing our role as a responsible and caring corporate citizen in all the regions and countries that we touch. We appreciate your efforts on behalf of consumers, coffee farmers and the environment. However, we believe the complex issues that you raise cannot be unilaterally resolved by Starbucks simply agreeing to positions that are acceptable to you. If you are serious about having a major impact on these issues, rather than simply using protests against Starbucks to publicize your cause, we urge you to meet with us to discuss these issues in detail and to work cooperatively with us on solutions upon which we can both agree. We reaffirm our willingness and desire to meet with you as soon as is mutually agreeable.
Sincerely,
Orin C. Smith, president and chief executive officer
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 coffee and tea products through its specialty operations, including its online store at Starbucks.com. Additionally, Starbucks produces and sells bottled Frappuccino(R) coffee drink and a line of superpremium ice creams through its joint venture partnerships. The Company's other brands enhance the Starbucks Experience through best-of-class products: Tazo Tea Company offers a line of innovative premium teas, and Hear Music provides Starbucks in-store music and produces and distributes a line of exceptional compact discs.
http://www.businesswire.com/cnn/sbux.shtml
NOD+ number is: 800/239-0317
CONTACT:
Starbucks Coffee Company
Cheri Libby, 206/318-7272
clibby@starbucks.com
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