Starbucks Opens First Farmer Support Center in Yunnan, China; Strengthening Commitment to China Farming Communities

  Starbucks Opens First Farmer Support Center in Yunnan, China; Strengthening
  Commitment to China Farming Communities

 Ongoing investments reaffirm long-term commitment to market as it progresses
                 toward 1,500 stores across 70 cities in 2015

Farmer Support Center opening marks the first in Asia, sixth globally for the

Business Wire

PU’ER, China -- December 12, 2012

As part of its commitment to elevate China’s Yunnan Province as a high-quality
coffee growing region, Starbucks Coffee Company (NASDAQ: SBUX) today announced
the opening of its first Asia-based Starbucks Farmer Support Center in Pu’er,
China. In addition, Starbucks reported that the pilot local adaption tests for
four coffee varietals, first introduced in Yunnan about three years ago under
the Memorandum Of Understanding (MOU) agreements with the Yunnan Academy of
Agricultural Science and People’s Government of Pu’er City, Yunnan Province,
are progressing on-track. The local adaption test currently spreads across
more than 650 hectares of coffee farms in eight different locations in Yunnan,
and subject to local Government approvals, Starbucks is targeting the
commercial planting of these coffee varietals at the end of the five-year test

John Culver, president, Starbucks China and Asia Pacific, and Belinda Wong,
president, Starbucks Chi ...

John Culver, president, Starbucks China and Asia Pacific, and Belinda Wong,
president, Starbucks China, unveil Starbucks first Asia-based Farmer Support
Center, in China's Pu'er City (Yunnan Province), with senior officials from
the Yunnan Provincial Government and Pu'er Municipal Government. (Photo:
Business Wire)

“The opening of the Starbucks China Farmer Support Center is a significant
milestone in Starbucks continued investments in China and the Starbucks Yunnan
Coffee Project,” said John Culver, president, Starbucks China and Asia
Pacific. “We are committed to deepening our relationships with local Chinese
farmers, through our work with the Yunnan Provincial Government and the Pu’er
Municipal Government. We believe Yunnan will play an important strategic role
in our long-term supply of premium arabica coffee, as we continue to expand
our store base in China, reaching 1,500 stores in 2015.”

Starbucks agronomists and quality experts at the Starbucks China Farmer
Support Center will work directly with Yunnan’s coffee farmers to provide
resources and expertise to promote responsible coffee-growing practices and
processing methods that improve quality.

“Starbucks Yunnan Coffee Project is about creating a positive change for local
China farming communities. We are pleased with the progress of the local
adaption tests as it signifies that we are taking one more step forward to
completing the Starbucks China value-chain; delivering premium arabica coffee
from bean to cup,” said Belinda Wong, president, Starbucks China. “Our vision
is to leverage our global coffee leadership, sharing our coffee knowledge and
expertise to elevate the Yunnan coffee industry and help local farmers develop
localized, high-quality coffee that can be celebrated and served in Starbucks
stores across China and globally.”

Through the globally-tested coffee knowledge and best practices developed
under Starbucks Coffee and Farmer Equity (C.A.F.E.) Practices, and with the
support of the Yunnan Academy of Agricultural Science and local Government
authorities, Starbucks aims to work directly with Yunnan farmers to help
reduce the environmental impact of the region’s coffee-growing activities and
improve the livelihood of the farmers and their families. Based on Starbucks
experience working with farmers through its Farmer Support Centers in areas
like Costa Rica, Rwanda, Tanzania, and Colombia, Starbucks firmly believes
that efforts by Starbucks China Farmer Support Center will enhance the breadth
and depth of Yunnan’s coffee leadership, and deliver tangible and significant
benefits to local farmers, communities and the economy.

Starbucks-AiNi Group Joint Venture Momentum

Starbucks and AiNi Group, one of Yunnan Province’s most established coffee
operators and agricultural companies, announced the establishment of Starbucks
AiNi Coffee (Yunnan) Co. Ltd. in early 2012. To date, the joint venture is
progressing towards its development goals and the processing mill will be
operational later this month, just in time for Yunnan’s current coffee
harvesting season. The mill, under Starbucks–AiNi joint venture company, will
be able to process up to 20,000 tons of green coffee beans annually.

“We are pleased to be working with Starbucks to support this strategic coffee
growing region in China. The combined strengths of Starbucks coffee passion
and sustainability practices, along with our years of experience in
agricultural production will elevate the overall Yunnan coffee industry and
ultimately improve the quality of coffee harvested by our coffee farming
communities. Operationalizing the processing mill later this month will be a
proud milestone for the Starbucks-AiNi joint venture company,” stated Liu
Minghui, General Manager, Starbucks AiNi Coffee (Yunnan) Co. Ltd., and Founder
and Chairman, AiNi Group.

Starbucks today operates more than 700 stores across more than 50 cities in
China. Starbucks entered the Yunnan Province with the opening of its first
store in Kunming in May 2010 and has since expanded to six stores within the
provincial capital. With plans for China to become the second largest market
outside the U.S. in 2014, Starbucks aims to accelerate its developmental
growth plans in Kunming and beyond.

About Starbucks Coffee Company

Since 1971, Starbucks Coffee Company has been committed to ethically sourcing
and roasting the highest quality arabica coffee in the world. Today, with
stores around the globe, the company is the premier roaster and retailer of
specialty coffee in the world. China will become Starbucks second largest
market outside the U.S. by 2014, and Starbucks aims to operate over 1,500
stores in China by 2015. Starbucks currently operates over 700 stores across
over 50 cities in China. Through our Starbucks partners, we insist on our
unwavering commitment to excellence and our guiding principles, we bring the
unique Starbucks Experience to life for every customer through every cup.

Photos/Multimedia Gallery Available:



Starbucks Public Affairs, China and Asia Pacific
Christina McPherson, +1-206-318-7100
Starbucks China
Xingrong Wang, 86-21-2412 3382
Stella Zhou, 86-21-6193 7589
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