Cocoa products are an important ingredient in many of the beverages and foods Starbucks sells. We are committed to buying cocoa that has been produced and traded in an ethical, transparent and environmentally sustainable manner and we are taking significant steps to ensure that our supply chain is in line with our Company values. Cocoa, like coffee, is an agricultural product grown only in the world’s equatorial regions. And as with coffee, there are significant sustainability issues associated with its production.
Taking a cue from C.A.F.E. Practices, our coffee-sourcing practices, we’ve worked since 2004 to develop similar purchasing guidelines for high-quality cocoa. While the two programs reflect some similarities in structure and criteria, the Cocoa Practices program is specifically designed to evaluate and recognize producers of sustainable, high-quality cocoa. Our Cocoa Practices Guidelines and Scorecard were developed in collaboration with stakeholders – suppliers, government agencies, nongovernmental organizations (NGOs) and chocolate manufacturers – and are currently being piloted for a two-year period, beginning June 4, 2007. We are also working with the Hershey Company to pilot and implement these practices for our line of chocolate.
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| Fiscal Year 2007 Highlights and Progress Report |
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Results from the audit found that our two cocoa exporters in the Ivory Coast advanced efforts to procure traceable, sustainably produced cocoa amidst a highly complex and challenging environment. We are working to address challenges in the distribution of training materials and market price payments from cooperatives to farmers, as well as some financial management issues.
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We collaborated with Theo Chocolates, an organic Fair Trade chocolate manufacturer, consulted with our business partners and suppliers, environmental and labor organizations, the cocoa industry, farming experts, and third-party certification organizations to develop the guidelines based on best practices in the industry.
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(Empowering Cocoa Households with Opportunities and Education Solutions) Alliance, a joint project with USAID, the World Cocoa Foundation and Winrock International, which aims to improve the quality and relevance of education in cocoa-farming communities. Starbucks support will be used to fund scholarships and microenterprise development for 80 families, an approach that simultaneously increases student retention rates and enhances the potential for mothers to generate income.
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As of Fiscal 2007, Starbucks has loaned a total of $7 million in funds to Root Capital for use in coffee and cocoa communities, which
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| Fiscal Year 2008 Goals |
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Purchase 28 percent of our total cocoa from suppliers evaluated by third-party verifiers using Cocoa Practices. |
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Review the results of first year Cocoa Practices audits, including feedback from our pilot suppliers and third party verifiers, regarding the Cocoa Practices guidelines. |
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Create an approved list of third-party verifiers and disseminating it to all of our cocoa suppliers. |
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Develop a verifier reporting system for Cocoa Practices evaluations. |
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