Starbucks Statement Regarding New York City Dairy Provider Court Hearing

SEATTLE, June 15, 2011 - Starbucks Coffee Company (NASDAQ: SBUX) released the following statement in response to the proceedings today in the New York State Supreme Court in Queens County pertaining to the Company's decision to change dairy providers for the New York City market:

The Court will hold further hearings on June 27th. In the meantime, Starbucks will work closely with its partners (employees), its local distributor and new dairy provider to ensure a seamless transition of the supply of dairy products to our New York City stores.

Once we have the opportunity to present our case, the facts will speak for themselves:

First and foremost, this move will result in no New York City job loss. In a court affidavit, our Jamaica, Queens, NY-based distributor, Bartlett, which contracts milk sourcing for Starbucks through Elmhurst, stated that Elmhurst advised it that "If Elmhurst lost the Starbucks volume it would not have to lay anyone off, but rather it would merely cut the substantial overtime it is currently giving its workers." In fact, Elmhurst's own court papers show that milk which Bartlett sells to Starbucks represents less than 10 percent of Elmhurst's overall business. Bartlett has committed to honoring its existing contract with Elmhurst through 2013, which includes thousands of customers to which Bartlett distributes Elmhurst-processed milk.

Second, our current dairy supplier, Elmhurst, declined to participate in the dairy sourcing RFP process for the New York City market that we initiated last fall. We awarded the business to another dairy in New York State that submitted a bid.

Finally, Starbucks commitment to New York City and the state of New York is significant and unwavering. Our more than 3,000 Starbucks partners who work at our 183 stores in the city ensure we are making a difference in the neighborhoods we operate in every day. We continue to add new stores and partners to our New York City presence in addition to basing our Northeast regional headquarters in Manhattan.

About Starbucks

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. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at