AYS has led a shareholder dialogue at Starbucks since 2001. Our shareholder group includes Trillium Asset Management and members of the Interfaith Center on Corporate Responsibility. The GE food issues at Starbucks focus on the potential commercialization GE coffee and tea; the use of bovine growth hormone in its dairy products; and the use of GE ingredients in its food products.

At the 2001 annual meeting, under heavy pressure from consumer advocates and shareholders, the company promised to provide alternative sources of non-GE milk in stores. The company also told shareholders they would provide a report by the end of 2001 to look at the feasibility of purchasing non-bovine growth hormone milk for all 50 million gallons they use annually. The company failed to deliver the report at that time and consequently in 2002 and 2003 AYS filed shareholder resolutions asking Starbucks to label GE food products. Consumer support for labeling is overwhelming. Over two-dozen media, government and industry opinion polls consistently show 70 - 90% of American consumers support mandatory labeling of genetically engineered food.

As You Sow's persistence on this issue has helped move Starbucks towards more responsible practices:

• In 2004 the company began surveying its bakery and dairy product suppliers to determine which could provide non-GE ingredients.
• In 2005 AYS asked for and received a public commitment (printed in the company's 2005 Corporate Social Responsibility Report) to not use GE coffee or tea if commercially developed. Previously, Starbucks had only publicly committed to not support research into the commercialization of these products.
• In 2006 Starbucks will incorporate the topic of GE ingredients into a company wide summit on supply chain issues.
• In 2006 Starbucks also promised to work with shareholders in developing a public statement that the company is committed to the long-term safety testing of GE products and to pressure its trade organizations to commit to long-term safety testing as well.