SEATTLE; May 21, 2002 -

Starbucks Licensed to Sell Fair Trade Certified Coffee in Canada Through Agreement with TransFair Canada 

Starbucks Coffee Company (Nasdaq: SBUX) and Starbucks Coffee Canada, a wholly-owned subsidiary, have signed a licensing agreement with TransFair Canada that will bring Fair Trade CertifiedT coffee to more than 270 Starbucks retail stores and other business channels across Canada.

"Canadian consumers have a great appreciation for sustainable products, including Fair Trade coffee," said Launi Skinner, Starbucks regional vice president in Canada. "We are pleased to bring this coffee to our customers."

Under the agreement, Starbucks will offer Fair Trade Certified coffee in its Canadian company-operated stores and to its business accounts including colleges and universities, hotels, restaurants and office coffee service operations. In addition, Fair Trade Certified coffee will be brewed upon customer request. Starbucks will also provide informational materials and hold an annual promotion for the coffee in its company-operated stores. Prepackaged bags of Fair Trade Certified coffee with the TransFair Canada logo will be available in Starbucks stores later this year.

"This is good news for Canadian coffee-drinkers who now have a greater choice of outlets in which to enjoy fair trade coffee," said Caroline Whitby, Managing Director for TransFair Canada. "The agreement with Starbucks will add to the strong growth of fair trade coffee sales in Canada."

As of May 20, and the 20th of each month moving forward, Fair Trade Certified coffee will be brewed and promoted as the "Coffee of the Day" offering in all Starbucks company-operated stores in North America. The monthly coffee offering is an initiative taken by Starbucks to raise awareness of consumers about Fair Trade Certified coffee.

"Fair Trade Certified coffee complements Starbucks comprehensive strategy to support sustainable coffee production," said Orin Smith, Starbucks president and chief executive officer. "We are committed to sourcing coffees of the highest quality that are socially, environmentally and economically sustainable."

TransFair Canada currently licenses more than 80 Canadian companies to deal in Fair Trade Certified coffee, tea, chocolate and sugar. Fair trade coffee is sourced through cooperatives of small producers in 23 coffee-growing countries. Cooperatives sell the coffee at a minimum price of U.S. $1.26 per pound, which allows members to receive higher revenues and to invest in the quality of their coffee. It also allows communities to invest in social services such as health and education.

The agreement with TransFair Canada is part of Starbucks larger effort to offer Fair Trade Certified coffee in its international markets. At the Company's annual shareholders' meeting in February, Starbucks announced it had signed a Memorandum of Understanding with Fairtrade Labelling Organizations International (FLO), a European organization that maintains the registry of Fair Trade Certified producers and serves as the umbrella for the 17 Fair Trade licensing organizations around the world. The memorandum with FLO enables Starbucks to enter into licensing agreements in order to sell Fair Trade Certified coffee in its markets outside the United States. Fair Trade Certified coffee has been brewed in Starbucks company-operated stores in the United States since October 2000. Since March 2002, Fair Trade Certified coffee has been brewed in the United Kingdom through an agreement with the Fairtrade Foundation of the United Kingdom.

Fair Trade Certified coffee is part of Starbucks Commitment to Origins coffee offerings. The line-up, which also includes organic and shade grown selections, brings Starbucks mission statement to the forefront and highlights through special product offerings Starbucks commitment to the people and places that grow our coffee. Earlier this month, Starbucks was awarded the Humanitarian Award by the Coffee Quality Institute at the Specialty Coffee Association of America conference and included in Business Ethics' 2002 "100 Best Corporate Citizens" list. More information on Starbucks coffee purchases and origin country involvement may be found in Starbucks Corporate Social Responsibility Annual Report located on Starbucks.com. 

TransFair Canada is a not-for-profit, independent fair trade certification and labeling organization and is the country's only member of Fairtrade Labelling Organizations International. Based in Ottawa, TransFair licenses companies across Canada to deal in fair trade and certifies their products. The Fair Trade CertifiedTM logo appears on certified products, providing consumers with an independent guarantee that their purchase benefits farmers in developing countries. Additional information about TransFair Canada can be found at www.transfair.ca.

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, Europe, the Middle East and the Pacific Rim, Starbucks sells coffee and tea products through its specialty operations, including its online store at Starbucks.com. Additionally, Starbucks produces and sells bottled FrappuccinoR 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 produces and distributes a line of exceptional compact discs.