In recognition of China’s long and rich tradition of placing an importance on education, Starbucks Coffee Company (Nasdaq: SBUX) today announced the establishment of the Starbucks China Education Project, a US$5 million (approximately 40 million renminbi) commitment to support educational programs in China.

To oversee and advise on the development and structure of the Starbucks China Education Project, a steering committee will be formed with members comprised of Starbucks executives, Chinese government officials, the Soong Qing Ling Foundation and local community organizations.  With this financial commitment, Starbucks plans to develop a strategic corporate social responsibility platform to strengthen its philanthropic and social commitments in China. 

“At Starbucks, our commitment to social responsibility is an integral part of our culture and business practices,” said Howard Schultz, chairman, Starbucks Coffee Company. “In China, we believe our philanthropic commitments will be significant, substantive and long-term. With the Starbucks China Education Project, we hope to take an active leadership role in working with the government authorities and local community organizations in contributing positively to China’s educational programs.”

Speaking at a press conference in Beijing attended by key Chinese government officials, local dignitaries and community leaders, Schultz said that being both a socially responsible and profitable business are not mutually exclusive. “Operating with a social conscience has always been a core purpose and competency at Starbucks,” added Schultz. “It is part of our heritage and values. At our stores, our partners (employees) strive to be good neighbors and contributors in the communities where they live, work and play.”

In six short years, China has become one of Starbucks fastest growing markets in the world. With more than 140 stores throughout mainland China, Starbucks believes that country will eventually be one of its largest markets outside of the United States.  Having successfully established a strong brand presence in China, Starbucks is well positioned for rapid expansion into new regions throughout the country.

Since entering the China market in 1999, Starbucks store partners have been involved in ongoing community initiatives from volunteer opportunities with local schools to fund-raising activities in support of AIDS-afflicted orphans, local educational charities, and the recent tsunami victims in Southeast Asia.

 

Described as the face of modern China and selected by Time Magazine as one of the world's 100 most influential people in 2005, actress Ziyi Zhang, a Beijing native, was present at the press conference to congratulate Starbucks for its growing success and social commitments in China.

 

“Upon learning about Starbucks decision to support education initiatives in China, I was moved,” said Zhang. “As a Chinese national, I am deeply grateful to global companies such as Starbucks for their philanthropy. I applaud them and support them and am always eager to be an advocate for caring that is borderless.

 

“Today, in every corner of the world, there are still those who are in need of aid,” added Zhang. “I hope more people and businesses will pay attention and get involved in charitable work. It will enable those who are helpless to receive the needed care and make our world a more compassionate place.”

 

Starbucks has a long history of giving back to communities where it operates through social and environmental programs and projects. In addition, the Company has received numerous awards for its leadership in sustainable business practices. In January 2005, Starbucks was awarded the World Environment Center’s award for C.A.F.E. (Coffee and Farmer Equity) Practices, Starbucks coffee buying guidelines. Additionally, Starbucks recently released its fourth annual Corporate Social Responsibility Report, the full text of which is available on Starbucks.com.

 

Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 9,500 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. In addition to its retail operations, the Company produces and sells bottled Frappuccino® coffee drinks, Starbucks DoubleShot® coffee drink, and a line of superpremium ice creams through its joint venture partnerships. The Company’s brand portfolio provides a wide variety of consumer products--innovative superpremium Tazo® teas and exceptional compact discs from Starbucks Hear Music™ enhance the Starbucks Experience through best-of-class products. The Seattle's Best Coffee® and Torrefazione Italia® Coffee brands enable Starbucks to appeal to a broader consumer base by offering an alternative variety of coffee flavor profiles.

 

This release includes forward-looking statements regarding anticipated philanthropic commitments and business expansion opportunities. These forward-looking statements are all

based on currently available operating, financial, and competitive information and are subject to various risks and uncertainties. Actual future results and trends may differ materially depending on a variety of factors including but not limited to, coffee, dairy and other raw material prices

and availability, successful execution of internal performance and international expansion plans, fluctuations in U.S. and international economies and currencies, the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Company's filings with the Securities and Exchange Commission, including the "Certain Additional Risks and Uncertainties" section of Starbucks Annual Report on Form 10-K/A for the fiscal year ended October 3, 2004. The Company assumes no obligation to update any of these forward-looking statements.

 

 

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Soon Beng Yeap                                                         

Starbucks Coffee Company                                         

(206) 318-7100                                              

syeap@starbucks.com