<SEC-DOCUMENT>0001214659-18-001786.txt : 20180305
<SEC-HEADER>0001214659-18-001786.hdr.sgml : 20180305
<ACCEPTANCE-DATETIME>20180305171238
ACCESSION NUMBER:		0001214659-18-001786
CONFORMED SUBMISSION TYPE:	PX14A6G
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20180305
DATE AS OF CHANGE:		20180305
EFFECTIVENESS DATE:		20180305

SUBJECT COMPANY:	

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			STARBUCKS CORP
		CENTRAL INDEX KEY:			0000829224
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING & DRINKING PLACES [5810]
		IRS NUMBER:				911325671
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			0927

	FILING VALUES:
		FORM TYPE:		PX14A6G
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20322
		FILM NUMBER:		18667266

	BUSINESS ADDRESS:	
		STREET 1:		P O BOX 34067
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98124-1067
		BUSINESS PHONE:		2064471575

	MAIL ADDRESS:	
		STREET 1:		2401 UTAH AVENUE SOUTH
		CITY:			SEATTLE
		STATE:			WA
		ZIP:			98134

FILED BY:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AS YOU SOW
		CENTRAL INDEX KEY:			0001086462
		IRS NUMBER:				000000000

	FILING VALUES:
		FORM TYPE:		PX14A6G

	BUSINESS ADDRESS:	
		STREET 1:		311 CALIFORNIA STREET
		STREET 2:		SUITE 510
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104
		BUSINESS PHONE:		415-391-3212

	MAIL ADDRESS:	
		STREET 1:		311 CALIFORNIA STREET
		STREET 2:		SUITE 510
		CITY:			SAN FRANCISCO
		STATE:			CA
		ZIP:			94104
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">2018 Proxy Memo</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Starbucks Corp.</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Request: Report on Sustainable Packaging Strategy</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Notice of Exempt Solicitation Pursuant to Rule 14a-103</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Name of the Registrant: Starbucks Corporation</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Name of persons relying on exemption:&#160;As You Sow</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Address of persons relying on exemption: 1611 Telegraph Ave., Suite 1450, Oakland, CA 94612</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Written materials are submitted pursuant to Rule 14a-6(g)(1) promulgated under the Securities Exchange Act of 1934.&#160;Submission is not required of this filer under the terms of the Rule, but is made voluntarily in the interest of public disclosure and consideration of these important issues.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">As You Sow calls on Starbucks shareholders to vote FOR Item #5 at Starbucks Corporation Annual Meeting on March 21, 2018.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-STYLE: italic; TEXT-ALIGN: left">For questions, please contact Conrad MacKerron, Senior Vice President, As You Sow, <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>mack@asyousow.org</u></font></div>

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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: center">Report on Sustainable Packaging Strategy</div>

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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Issue Summary</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">Starbucks </font>distributes millions of green plastic straws with its cold drinks which are not recyclable, and <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">prevalent in street and marine litter. When swept into waterways, these straws </font>can harm fish and marine animals. Direct competitors have begun to ban plastic straws including the large UK coffeehouse chain Costa Coffee.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">The company promotes its environmental leadership, especially in regard to coffee cup waste, yet failed to attain two high-profile 2015 commitments on cup reusability and recycling as concerns grow dramatically over global single use packaging waste.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Its packaging sustainability commitments are dated; they apply only to North American and some European markets. Waste concerns are growing in Asia, which has more plastic waste dumped into water and less collection and recycling infrastructure. Starbucks is pressing major growth in Asia, opening a new store every 15 hours in China.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">1</sup></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Starbucks <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">lags corporate peers</font> like McDonald&#8217;s on recycling, which has pledged to recycle on-site packaging at all locations globally by 2025.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">1</sup><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>https://www.cnbc.com/2017/12/05/starbucks-is-opening-a-store-in-china-every-15-hours.html</u></font></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #00813d; TEXT-ALIGN: left">1611 Telegraph Ave., Suite 1450 | Oakland, CA 94612 | <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold"><u>www.asyousow.org</u></font></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Studies estimate 8 million tons of plastics are dumped in oceans annually and project that <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">oceans will contain more plastic than fish by weight by 2050</font>.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">2</sup> This has led local and state governments to ban some forms of plastic packaging.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Shareholders would benefit from a report outlining an aggressive plan to realize Starbucks&#8217; original reuse and recycling goals, and dealing with harmful plastic straws.&#160; Senior management should prioritize this effort and motivate employees to implement it.&#160; Not taking action could result in backlash from an ecologically aware customer base.</div>
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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">The Proposal</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">The proposal asks the company to report on how it will scale up a sustainable packaging policy with emphasis on banning use of plastic straws, and making good on meeting two failed signature environmental goals: serving beverages in reusable containers and recycling all cups left in its stores.&#160; A supporting statement notes that a comprehensive&#160;policy should also include making paper cups fully recyclable,&#160;ensuring that cups collected are actually recycled, and increasing recycled content.</div>

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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Background</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">Plastic Straws:</font> Americans use 500 million plastic straws a day, including Starbucks&#8217; green plastic straws for in its cold drinks, which are not recyclable<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">. Straws and coffee lids are among the most common items found during ocean beach cleanups; straws were listed as the fifth most common item found in the most recent </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff; BACKGROUND-COLOR: #ffffff"><u>tally</u></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff"> by the Ocean Conservancy. When straws are swept into waterways, they </font>can seriously harm marine animals either as an intact sharp object, or as degraded bits of plastic that become lodged in their digestive system.&#160; Starbucks&#8217; home city of Seattle has <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>banned</u></font> plastic straws effective July 2018, and other cities will likely follow suit as concern grows over the impact of plastic waste on ocean ecosystems, and because p<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">aper replacement straws are readily available. </font>Other beverage and fast food providers have begun to ban plastic straws including the large UK coffeehouse chain <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>Costa Coffee</u></font>, Starbucks&#8217; direct competitor; as well as <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>Pizza Express</u></font>, and <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>Wagamama</u></font>. <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">The company should stop using plastic straws.</font></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">Cup reuse and recycling commitments:</font>&#160; <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">The company has stated that f</font>rom its customers&#8217; standpoint, the waste generated by its single use paper coffee cup is its <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>No. 1 environmental liability</u></font>.&#160; To address this challenge, in 2008 Starbucks pledged that by 2015, 25% of beverages would be served in reusable containers, and front-of-store recycling bins would be placed in all owned and operated stores (about 8000).&#160; It held a series of high-profile cup summits and hired MIT systems expert Peter Senge to <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>advise</u></font> it.&#160; In pursuing the 25% reusables goal, the company had the opportunity to motivate customers to bring in their own reusable coffee mugs, and motivate employees to promote reusable for both &#8220;to go&#8221; and &#8220;for here&#8221; customers. The company pledged it would be &#8220;re-establishing glassware or ceramic mugs as our global standard for our customers who enjoy their beverages in our stores.&#8221; The company made some progress on parts of these commitments but has fallen far short overall.&#160;</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">2</sup> Jambeck et al, Plastic waste inputs from land into the ocean, Science 13 February 2015 <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>http://science.sciencemag.org/content/347/6223/768</u></font>, and Ellen MacArthur Foundation, January 2016, The New Plastics Economy: Rethinking the Future of Plastics, <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>http://www.ellenmacarthurfoundation.org/publications/the-new-plastics-economy-rethinking-the-future-of-plastics</u></font></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">Cup recycling results:</font>&#160;After nine years, management says front-of-store recycling is available in over 50% of company-owned stores. But many stores recycle only plastic cups because the company has not secured an end market to process paper cups.&#160; Some paper cups are not recyclable due to a thin plastic coating that requires special processing; not all paper mills can process the cups. There are alternative coating technologies for paper cups the company could adopt that would make recycling easier for processors.&#160; The bottom line is that the company, while making significant efforts, only reached half of its stated goal. There appears to be a lack of urgency by management to increasing recyclability and finding markets for paper cups at many locations.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">While these challenges remain unresolved, new problems have emerged. In 2015, a CBC-TV Marketplace undercover&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>investigation</u></font>&#160;found that significant numbers of cups placed in recycling bins at stores still&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>ended up</u></font>&#160;in the trash. The company said it would audit all Canadian and U.S. stores and get to the bottom of it. More than two years later, no results have been released.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">Reusables results:</font>&#160;Most concerning were the results of its reusable container goal. By 2011, the company quietly dropped the goal from 25% to 5% of all beverages served. Even then, it was unable to get even half way towards that greatly weakened goal; after nine years, just 1.4% of beverages are served in reusable cups. In response, the company has offered an unacceptably weak alternative of &#8220;doubling&#8221; the goal to 2.8% over the next five years. We have monitored the company&#8217;s actions with dismay for years as it failed to adequately promote on-site use of reusables. Despite pledging to promote reusable cups for both take out and on-site consumption, employees do not routinely offer reusable ceramic mugs and glass tumblers to customers dining on-site, nor is signage commonly provided to promote the availability of reusables.&#160; Management appears to have fallen far short in adequately training and motivating employees.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">As You Sow has repeatedly congratulated Starbucks for its bold commitments, and urged competitors to match them. We waited patiently for seven years for the company to achieve its goals.&#160; Now three years after failing to get to even 2% of beverages served in resuables, management says it will continue to work on this issue but has not demonstrated how it will make significant progress. Vague assertions that it will keep trying will not advance this challenging issue. The company needs to develop a more transparent, aggressive strategy to promote reusables, and devote sufficient corporate resources to achieve it.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; COLOR: #000000">Explosive growth, lagging stewardship:</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">&#160; Starbucks recycling commitments are no longer industry-leading. While the company operates in 75 countries, the reusability and recycling goals discussed above apply only to North America and a few parts of Western Europe, while the company pursues explosive growth in Asia</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; COLOR: #000000">.&#160; Starbucks already operates more than 3,000 stores in China and plans to add 2,000 by 2021</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">. According to CNBC, it is opening a new store in China </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>every 15 hours</u></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">. China has been cited in recent scientific reports as the leading depositor of plastic waste into oceans, the source of 28% of total plastic deposition.</font><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;COLOR: #000000">3</sup><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">&#160; There have been no public commitments made by Starbucks regarding recycling in stores in Asia. Lack of such commitments could lead to significant backlash by its environmentally aware customer base.</font></div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left; MARGIN-LEFT: 12pt; TEXT-INDENT: -12pt"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">3</sup><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000"> J.R. Jambeck, et al., &#8220;Plastic waste inputs from land into the ocean,&#8221; </font>Science 13 February 2015<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">.</font></div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">Further, t</font>he company has not acted on several related packaging sustainability issues we brought to its attention with a shareholder <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>proposal</u></font> in 2011:</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">No recycled content in its Ethos&#174; brand PET plastic water bottles.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">No actions taken to encourage recycling of millions of paper cups provided to other quick service brands via its Seattle&#8217;s Best Coffee subsidiary used at 30,000 locations.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">No recovery goals for plastic, glass, and metal containers of Starbucks ready-to-drink beverages sold in grocery and convenience stores.</div>
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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">The Plastic Pollution Threat</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Plastic pollution on land and water has risen in prominence dramatically as an environmental issue in the last two years as new studies showed far higher rates of plastic ending up in oceans than previously believed. In December 2017, nearly 200 countries <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">at a United Nations Environment Assembly in Nairobi&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff; BACKGROUND-COLOR: #ffffff"><u>pledged</u></font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; BACKGROUND-COLOR: #ffffff">&#160;to eliminate plastic pollution in the world&#8217;s oceans.</font> Erik Solheim, UN undersecretary-general, called the issue &#8220;an <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>ocean Armageddon</u></font>.&#8221;</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">A 2015 study published in the journal </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000; FONT-STYLE: italic">Science</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000"> concluded the oceans are loading with plastics far faster than previously thought, with 8 million tons&#8212;</font>equivalent to one garbage truck every minute<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">&#8212;being added annually. At that rate, without significant mitigation,</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; COLOR: #000000"> by 2050 plastic could exceed fish by weight.</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000"> A recent Ocean Conservancy report concludes that poorly designed waste management systems, not just beach litter, sewage, or blowing plastic, contribute substantially to ocean plastic, particularly in developing markets.</font><sup style="vertical-align: text-top; line-height: 1; font-size: smaller;COLOR: #000000">4</sup><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">&#160; </font>The U.S. Environmental Protection Agency says degraded plastics in ocean gyres pose threats to marine animals,<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">5</sup> and potentially to human health.<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">6</sup></div>

<div>&#160;</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">An assessment of marine debris by a panel of the Global Environment Facility of the UN Environment Program concluded that an underlying cause of debris entering oceans is unsustainable production and consumption patterns including <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">"design and marketing of products internationally</font>&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold">without appropriate regard to their environmental fate or ability to be recycled in the locations where sold...</font><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">7</sup></div>

<div>&#160;&#160; </div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">A 2014 UN Environment Program report estimated the environmental cost of plastic use in the consumer goods sector at $75 billion annually (including $13 billion in damage to marine ecosystems). Environmental groups are beginning to focus on brand packaging and the waste of resources associated with landfilling rather than recycling these materials. In September 2016, hundreds of non-governmental groups launched a global <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>Break Free from Plastic</u></font> campaign to address plastic deposition of single use packaging. Some groups are already <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>protesting</u></font> lack of recyclability of Starbucks&#8217; paper cups. If the company does not respond and develop policies and practices to address these issues, it could risk brand damage.<br>
 &#160; </div>

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<sup style="vertical-align: text-top; line-height: 1; font-size: smaller">4</sup><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif"> <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-VARIANT: normal; TEXT-TRANSFORM: none; FONT-WEIGHT: normal; FONT-STYLE: normal">Ocean Conservancy, 2015, Stemming the Tide: Land based strategies for a plastic-free ocean,</font> </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>http://www.oceanconservancy.org/our-work/marine-debris/mckinsey-report-files/full-report-stemming-the.pdf</u></font></div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">5</sup> http://water.epa.gov/type/oceb/marinedebris/md_impacts.cfm</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">6</sup><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">&#160;</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>http://www.epa.gov/region9/marine-debris/faq.html</u></font></div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left"><sup style="vertical-align: text-top; line-height: 1; font-size: smaller">7</sup>&#160;<font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">Scientific and Technical Advisory Panel, </font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000; FONT-STYLE: italic">Marine Debris as a Global Environmental Problem: Introducing a solutions based framework focused on plastic</font><font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #000000">, November 2011, p.3.</font></div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff; TEXT-ALIGN: left"><u>http://www.thegef.org/gef/sites/thegef.org/files/publication/STAP%20MarineDebris%20-%20website.pdf</u></div>

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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Starbucks lags peers</div>

<div>&#160;</div>

<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">In regards to banning plastic straws, as noted above, the company lags peers like Costa Coffee, which have already agreed to stop using plastic straws.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">In regards to on-site recycling, the company was recently bested by McDonald&#8217;s Corp., another direct retail premium coffee competitor with its growing McCaf&#233; coffee house style locations, with an industry-leading <font style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; COLOR: #0000ff"><u>commitment</u></font> to recycle all on-site packaging at 37,000 locations globally by 2025. As noted above, Starbucks has 3000 locations in China alone with no recycling program.</div>

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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Company Statement in opposition</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">Banning plastic straws due to the threat they represent to marine life is one of the main goals of this proposal. The company&#8217;s proxy response statement does not even mention straws. This fact alone is sufficient to justify support the proposal as the company has supplied no information on whether it views plastic straws as a threat and if so, how it intends to address the problem.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">The company cites a long list of sustainable packaging initiatives in its statement. Indeed, it previously set industry-leading goals, but its statement does not acknowledge the failure of its two signature initiatives on packaging sustainability discussed in detail above: a goal to serve 25% of beverages in reusable containers and to recycle plastic and paper cups in all owned stores by 2015. The company says it wants to press ahead towards these goals but won&#8217;t say how. Given the scale of failure of its reusability goal, with just 1.4% of drinks served in reusables, management needs to assure investors it has a strong, funded, scalable plan for how to achieve its priority goals.</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif; TEXT-ALIGN: left">The statement refers to &#8220;comprehensive&#8221; goals laid out in its 2016 report. As noted above, the company&#8217;s goals are far from comprehensive &#8211; lacking a strategy for recycling in environmentally threatened developing markets, or a blueprint for achieving its failed 2015 goals. Further, with the looming crisis on ocean waste, there&#8217;s no evidence of the company moving to use recycled content in its Ethos&#174; brand PET plastic water bottles, or to prioritize recycling of those bottles, which beverage companies like PepsiCo have done for more than a decade.</div>

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<div style="FONT-SIZE: 14pt; FONT-FAMILY: 'Times New Roman', Times, serif; FONT-WEIGHT: bold; TEXT-ALIGN: left">Conclusion</div>

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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Shareholder proponents are not convinced the company is delegating sufficient resources and priority to make good on its previous high-profile, signature environmental commitments or to address new ones.</div>
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<div>&#160;&#160; <br>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Shareholders would benefit by receiving detailed perspective and guidance on the company&#8217;s plans to realize its twin environmental goals to serve significant volumes of beverages in reusable containers and to recycle all paper cups in owned stores by 2015. As noted above, it fell far short of both goals.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">We request the company ban plastic straws due to harm to ocean animals and a readily available alternative.&#160; A major competitor, Costa Coffee, has already banned plastic straws.</div>
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<div style="FONT-SIZE: 10pt; FONT-FAMILY: 'Times New Roman', Times, serif">Shareholders should support the proposal as they would also benefit from management discussion of how the company intends to avoid criticism and potential erosion of an environmentally aware customer base by opening thousands of stores in Asia without reuse or recycling programs. China is the country with the largest amount of waste plastic leaking into waterways. The company has not provided evidence of reuse or recycling commitments at its rapidly expanding locations in Asia.</div>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
