An Industry First: Recycled-Content Hot Cups Hit Starbucks Stores in 2006

In November 2004, Starbucks announced that the U.S. Food & Drug Administration (FDA) granted the first-ever approval to use recycled content in food packaging for Starbucks hot-beverage cups. Made with 10 percent post-consumer fiber content, the hot-beverage cups will look and perform the same as non-recycled paper cups, but will lower Starbucks dependence on tree fiber by more than five million pounds annually.

"Beginning to use post-consumer recycled-content hot-beverage cups is an important milestone for Starbucks in addressing the environmental impact associated with our paper-buying practices," said Jim Donald, Starbucks chief executive officer.

Starbucks collaborated with its suppliers Mississippi River Corporation, MeadWestvaco and Solo Cup Company, for more than three years to develop this pioneering new cup and obtain approval from the FDA for this innovation in food packaging - an industry first.

Throughout 2005, the new recycled-content cups underwent extensive performance tests to ensure they maintained the same high quality as all other Starbucks products. The new recycled material is made from high-grade office paper.

Starbucks will begin introducing the recycled-content paper cups in U.S. Company-owned and -licensed stores beginning in early 2006. Going forward, the majority of paper goods in Starbucks stores will contain recycled content.

As Starbucks continues to grow and expand its presence around the globe, the Company is actively working to incorporate environmental considerations across all aspects of its business operations. Using recycled material in its hot cups is part of Starbucks ongoing commitment to reducing its environmental footprint.

In 2004, Starbucks purchased 27,400 tons of 100 percent virgin bleached cup stock. Based on that volume alone, the new, 10 percent post-consumer fiber content cups would reduce landfill content by 2,740 tons (or almost 5.5 million pounds).

"Starbucks should be commended for its groundbreaking efforts in working toward environmentally friendly packaging options that benefit both forests and the businesses that rely on them," said David Ford, president and CEO of Metafore, a non-profit group that collaborates with leaders in business and society to create innovative, market-based approaches that support thriving forests and communities. "As a participant in our Paper Working Group project, Starbucks leadership in responsible purchasing of forest products gives other companies a clear path to follow."

Starbucks first effort to redesign its hot cups began in 1996 with a partnership with the Alliance for Environmental Innovation, a joint initiative of Environmental Defense and The Pew Charitable Trust. One of the main priorities of the partnership was to develop a new disposable hot cup as an environmentally preferred solution to "double cupping"—whereby two cups were often being used rather than just one in order to ensure comfortable temperatures for customers and enhance cup performance.

A design competition was held. Numerous designs were submitted and testing of various prototypes occurred over the course of two years. Starbucks ultimately decided to forego adopting a new design at that time, due to concerns regarding production, economic feasibility and uncertainty about the new design’s ability to reduce the incidence of double cupping. Instead, Starbucks adopted an interim solution: the corrugated paper sleeve, made from 60 percent post-consumer material, which is still employed today to provide insulation and comfort for customers while reducing waste.

Starbucks environmental commitment has been validated by the following recent awards:

• The 2005 National Recycling Coalition Recycling Works Award, for making significant commitments to recycling as a national advocate and leader
• The World Environment Center Gold Medal Award for Sustainable Development, for the development of Coffee and Farmer Equity (C.A.F.E.) Practices, a set of socially and environmentally responsible coffee-buying guidelines developed jointly by Starbucks and Conservation International
• The U.S. Environmental Protection Agency and Department of Environment Green Power Purchasing Leadership Award, for purchasing wind power for corporate facilities in California and Minnesota, bringing the corporate power load covered by renewable energy to five percent

Watch for the new recycled paper cups in your local Starbucks store in early 2006!

For more information on Starbucks environmental initiatives, please visit www.starbucks.com/csr.

Source: Starbucks’ Social Responsibility Newsletter