Starbucks Shareholders
Demand Labeling of GE Ingredients

AScribe Newswire
February 25, 2002

Food Fight Brewing at Starbucks: Shareholders Ask Starbucks
to Label Genetically Engineered Foods

SEATTLE, Feb. 25 [AScribe Newswire] -- There is a food fight brewing at
Starbucks. A shareholder resolution, to be voted on Tuesday, asks Starbucks
[SBUX - Nasdaq] to label genetically engineered ingredients in its products.

WHAT: Proxy Vote at Starbucks Annual Meeting
WHEN: Tuesday, February 26, 2002, 10 am - 12 pm.
WHERE: Benaroya Hall, 2000 University St, Seattle, WA.

"Consumer demand for labeling is overwhelming", says Michael Passoff, of the
As You Sow Foundation. "Over two-dozen media, government and industry
opinion polls consistently show 70 - 98 percent of American consumers
support mandatory labeling of genetically engineered food."

These include a November 2001 survey by Rutgers University Food Policy
Institute that found 98 percent of those polled believed genetically
engineered foods should be labeled. In June 2001, ABC News found that 93
percent of Americans support labeling. In February 2001, the FDA released an
internal report that showed that "virtually all participants" surveyed in
focus groups want labeling. Industry sponsored surveys, even from those
promoting genetically engineered foods, show similar results.

"In the United States there is a long history of a consumers' 'right to
know' about the products they buy," says Passoff. "Starbucks products reach
millions of Americans each day without proper labeling of an ingredient that
consumers clearly want to be informed about." Labeling of foods is already
commonly practiced for nutritional information such as caloric content,
additives, ingredients, and the manufacturer.

Shareholders are concerned about increasing financial, legal, and
reputational liabilities to the company from its use of these ingredients.
"Labeling can reduce liability and consumer backlash," says Passoff.
"Without labeling, consumers will have no way of protecting themselves from
hidden allergens," says Passoff. Millions of Americans suffer from mild to
fatal food allergies. Genetic engineering involves splicing in genes from
other species and making foods that have never been part of the human food
supply that can result in unforeseen allergic reactions. "Labeling will also
inform those consumers who have religious or ethical concerns about eating
genetically engineered products."

Starbucks' use of genetically engineered foods has made it the target of an
international consumer campaign. More than 400 demonstrations are planned
for the day of Starbucks annual meeting.

"Labeling is a honest way of dealing with a controversial issue," says
Passoff. "It will serve as a means of ensuring consumer and investor
confidence that Starbucks is a company that can be trusted."

At last year's annual meeting the company promised to provide alternative
sources of non-genetically engineered milk in stores. "But its availability
is not generally made know to customers," says Passoff. "This policy also
does not apply to other milk products such as Frappucinnos or Starbucks ice
cream. The company portrays itself as having promised to not use genetically
engineered coffee or tea, yet their proxy statement says the company has
only promised to not support 'research' of those products."

One year ago the company told shareholders they would provide a report by
the end of 2001, on the feasibility of switching to non-genetically
engineered milk but have yet to provide that report, nor will they state
when it will be available. Meanwhile, the company has cancelled some
contracts for non-genetically engineered milk indicating it is not seriously
considering such a transition.

"Management's inconsistent behavior raises the question of whether it can be
trusted, and risks putting our reputation and brand name at risk," says
Passoff. "Consumers want to know, investors want to know, it's time for
Starbucks to come clean."

Legislative bills calling for the mandatory labeling of genetically
engineered foods have been raised at city, state and the federal level. The
European Union passed mandatory labeling legislation in 1998, with similar
bills having passed or pending in dozens of other countries including Japan
and South Korea [Starbucks is expanding into new markets in Japan, South
Korea, Austria and Switzerland].

Starbucks is the latest company to face a proxy vote on the issue of
genetically engineered food. As You Sow is part of a coalition of over 300
religious institutional investors and socially responsible investment firms,
led by the Interfaith Center on Corporate Responsibility, with more than
$150 billion in combined assets. Nearly three-dozen resolutions on this
issue have been filed with life science companies, food companies,
restaurants, and supermarkets, such as Dupont, General Mills, Albertsons,
Kroger, and Pepsi.

"Genetically engineered food has provoked the largest shareholder movement
since South African apartheid," says Passoff. "This issue has drawn more
shareholder participation than any other topic in the history of corporate
social responsibility,"

Passoff will speak on behalf of the resolution at the annual meeting. The
Securities and Exchange Commission requirement for a resolution to receive
enough votes to be refiled the following year is 3 percent.

"Shareholder votes are not measured in the typical electoral sense of
receiving a majority vote," says Passoff. "Most shareholders automatically
vote with management. The votes are more accurately interpreted in regards
to their level of influence. An investor with 3 percent ownership would
likely be one of the top three shareholders in a company and a management
would certainly listen to them. Many previous resolutions receiving from 5
percent to 10 percent of shares voted have been sufficient to move
management to act."

Footnote: A complete listing of poll results from "Compilation and Analysis
of Public Opinion Polls on Genetically Engineered Foods", February 1, 2002,
Center for Food Safety, can be found at
http://www.centerforfoodsafety.org/facts&issues/polls.html

CONTACT:
Michael Passoff, Corporate Social Responsibility Program, As
You Sow Foundation, Tel: On-site Cell Phone, 510-289-5251;
As You Sow, 415-291-9868 [Monday only]