American Council on Science and Health                    Consumer Alert                     

1995 Broadway                                                            1001 Connecticut Ave., N.W.

Second Floor                                                               Suite 1128

New York, NY 10023-5860                                             Washington, D.C. 20036

 

Citizens for the Integrity of Science                             Nat. Ctr. for Public Policy Research

12309 Briarbush Lane                                                  777 N. Capitol St., N.E.

Potomac, MD 20854                                                     Suite 803

                                                Washington, D.C. 20002

           

Competitive Enterprise Institute                                   Hudson Institute

1001 Connecticut Ave., N.W.                                        Center for Global Food Issues

Suite 1250                                                                    P.O. Box 202

Washington, DC. 20036                                                Churchville, VA 24421-0202

 

AgBioWorld Foundation

P.O. Box 85

Tuskegee, AL 36087-0085

 

February 21, 2002

 

Howard Schultz, Chairman of the Board           Gregory B. Maffei, Member of the Board

Starbucks Coffee Company                              Starbucks Coffee Company

P.O. Box 34067                                               360 networks, Inc.

Seattle, WA  98124-1067                                2200 6th Avenue, Suite 1122

                                                                        Seattle, WA 98121

Arlen I. Prentice, Member of the Board

Starbucks Coffee Company                              Howard P. Behard, Member of the Board

Kibble & Prentice                                             Starbucks Coffee Company

600 Stewart Street, Suite 1000                         6926 SE 34th St.
Seattle, WA 98101                                          Mercer Island, WA 98040-3327

Barbara Bass, Member of the Board                 James G. Shennan, Jr., Member of the Board

Starbucks Coffee Company                              Starbucks Coffee Company

Gerson Bakar Foundation                                 Trinity Ventures

3 Bayside Village Pl., Suite 304                        3000 Sand Hill Road, Building 4, Suite 360

San Francisco, CA 94107                                Menlo Park, CA 94025

Craig J. Follery Member of the Board  

Starbucks Coffee Company

The Pepsi Bottling Group, Inc

1 Pepsi Way
Somers, NY 10589-2201

 

Dear Members of the Board of Starbucks Coffee Company:

 

On behalf of our member organizations which represent consumers, public health advocates, food and agriculture experts, scientists and academics, we commend Starbucks’ Board of Directors’ opposition to the pending activist proposal regarding foods produced using biotechnology-improved crops. 

We also wish to thank the Board for adopting a responsible policy regarding the offering of premium-priced certified organic or soy milk options to your consumers as alternatives to, not replacements for more affordable and safe conventional dairy products.

 

Unfortunately, the Organic Consumers Association is now threatening Starbucks with continued attacks if Starbucks does not capitulate to their demands.

 

The Organic Consumers Association coalition members – who receive significant financial support from the organic industry and, in the case of the Institute for Agriculture and Trade Policy, even run their own for-profit organic coffee company that competes with Starbucks – now threaten a return to Seattle to protest the upcoming Starbucks’ annual shareholder meeting.  Sadly, these activist groups include the organizers of and many of the participants in the December 1999 World Trade Organization protests which resulted in millions of dollars in damage to the city and the destruction of Starbucks’ property. 

 

The Organic Consumers Association February/March 2002 newsletter proclaims:

 

Starbucks is clearly rattled by the OCA market pressure campaign… Now all we've got to do is to keep up the pressure on Starbucks until they meet all of our demands.  After Starbucks surrenders, then we can turn our market pressure campaigns on the other, even larger, food and beverage companies… 

 

An OCA letter to Starbucks’ Sue Mecklenberg this past January threatens:

 

Imagine a press conference where we stand outside a Starbucks location and test your Cappuccinos for the presence of rBGH…  

 

This scare tactic is particularly interesting because no such test exists. 

 

The U.S. Food and Drug Administration has repeatedly noted that all cows naturally produce bovine growth hormone (bGH), all milk naturally contains traces of bGH, and bGH and rbGH are biologically indistinguishable.  No test exists because the milk from cows receiving supplemental bGH is exactly the same as all other milk.  This is just more evidence of  OCA’s willingness to make false and misleading claims to manipulate companies like Starbucks.

 

Providing real consumer choice by offering certified organic milk or soy milk was and continues to be a responsible approach to resolving the consumer choice issue.  We want to be sure, however, that Starbucks is aware of concerns regarding the sustainability of organic production and the potential issues that may arise from turning towards organic products exclusively. 

 

In January, Unilever’s CEO Niall FitzGerald cautioned that the limitations to organic farming must be acknowledged; suggesting that truly “sustainable” farming included leveraging the potential of biotechnology crops. 

 

Earlier his month, American Association for the Advancement of Science president and Time Magazine's environmental “Hero for the Planet,” Peter Raven, told the Pew Trust that biotech crops were better for the environment than organic methods. Green Revolution hero and Nobel peace prize-winner Norman Borlaug joined Raven in noting that pesticide reductions associated with biotechnology-crops were an improvement over organic methods. 

 

Many organic dairy farmers in Europe -- where tax payers heavily subsidize the organic conversions -- are being forced to sell their milk as conventional at a significant economic loss due to lack of promised consumer demand for the higher-costing organic milk.  In the U.S. organic dairies in New England are being paid less than promised for their milk, also due to sagging markets.  And, this past August, the New York Times Magazine exposed the fact that over 70 percent of all organic milk is now produced by one company on mega-farm dry lots where cows never see a blade of grass. The milk is then super-heated (which the Times reports incorrectly makes it less nutritious) for longer-shelf life before being shipped thousands of miles to customers misled to believe they are supporting family farms providing local fresh milk.  

 

Putting family farmers at risk and misleading consumers is certainly not something one would associate with a responsible company like Starbucks.  Unfortunately, the activist groups led by the Organic Consumers Association do not believe in allowing family dairy producers the freedom to use their best judgment about how to run their farms or in offering consumers real or truly informed choice.  They continue to spread misinformation regarding the economics and safe use of productivity-enhancing supplements and continue to target Starbucks to help further their campaign against biotechnology and other aspects of conventional agriculture.

 

These activists continue to demand that Starbucks only use dairy products from cows certified as not receiving supplemental bGH.   This, of course, removes any real consumer choice, damages farmers’ ability to remain profitable, increases the burdens on the environment and reinforces myths and blatant falsehoods promoted by these activist groups and the organic food industry about the safety of milk. 

 

The activists also ask Starbucks to label brand-name products as “rbST free.” Such labeling has been determined by the U.S. Food and Drug Administration to be false and misleading. Milk from cows receiving supplemental bST and from those not receiving supplemental bST is indistinguishable. We hope you will consider sharing information like this with shareholders or customers in need of additional information on this topic.

 

We continue to offer you our support and strongly urge you to take the opportunity of your upcoming Annual Meeting to denounce these activists, their tactics, and their misleading fear campaigns.  Absent a clear message that responsible businesses will not be party to such false and misleading attacks Starbucks’ customers will continue to be victims of this irresponsible manipulation. We will gladly send representatives from our coalition to your meeting to support such statements should you so request.  

 

Again, we ask that Starbucks to continue opposing misleading food fear campaigns, and that Starbucks continue its support for responsible and truly sustainable farming.  We look forward to your response and to Starbucks taking a stand against fear-mongering and extreme activist groups.  Thank you.

 

 

Sincerely:

 

 

Steven J. Milloy, Citizens for the Integrity of Science, on behalf of


Elizabeth M. Whelan, American Council on Science and Health
Alex Avery, Hudson Institute, Center for Global Food Issues
Gregory Conko, Competitive Enterprise Institute
Frances B. Smith, Consumer Alert

C.S. Prakash, AgBioWorld Foundation
David Ridenour, National Center for Public Policy Analysis


cc: Dennis Stefanacci, Senior Vice President for Corporate Social
Responsibility
Orin Smith, President and CEO