STARBUCKS

I. CRITERIA SELECTION
1. Quality
Suppliers are responsible for maintaining high levels of quality in their facilities, materials and
employees.
Quality control programs, defective material control processes and other business practices of
Suppliers may need to be reviewed by Starbucks to determine the Supplier’s ability to provide
products and services that consistently meet or exceed Requirements.

2. Terms of the Order

Ship the correct quantities
Ship the correct items in good condition
Ship to the correct location
Ship and/or deliver on time

3. Pallet Quality
Pallets are required to be wooden
Use of rented pallets requires an authorized exception by an Authorized Starbucks
Representative
Pallets shall be clean

4. Price
The purchase price will be set forth in the Order. Unless otherwise provided in the applicable
Order, the price set forth in the Order includes all applicable taxes, duties, tariffs, surcharges, and
other amounts assessable by any government authority with respect to the Products or Services.
The purchase price may not be modified or changed without the prior written agreement of
Starbucks.
5. Payment Terms
Unless otherwise set forth in the applicable Order, payment terms are net 60 days from Starbucks
receipt of a correct and undisputed invoice from Seller
II. CRITERIA EVALUATION

1. Coffee supplier
Product Quality (requirement):
All coffee must meet Starbucks standards of high quality.
Economic Accountability (requirement):
Transparency is required. Suppliers must submit evidence of payments made throughout the
coffee supply chain to demonstrate how much of the price Starbucks pays for green (unroasted)
coffee gets to the farmer.
Social Responsibility (evaluated by third-party verifiers):
Measures in place that concern safe, fair and humane working conditions. These include
protecting the rights of workers and providing adequate living conditions. Compliance with the
indicators for minimum-wage requirements and addressing child labor/forced labor and
discrimination is mandatory.
Environmental Leadership (evaluated by third-party verifiers):
Measures in place to manage waste, protect water quality, conserve water and energy, preserve
biodiversity and reduce agrochemical use.

2. Supporting Farmers
Responsibly grown, ethically traded coffee means working with farmers to produce coffee in
ways that help provide benefits to their business, their communities and the environment.

Support Centres

Starbucks has established Farmer Support Centres in Costa Rica and Rwanda to provide local
farmers with resources and expertise to help lower the cost of production, reduce fungus
infections, improve coffee quality and increase the production of premium coffee.

Loan Programmes

During the growing and harvest cycles, many coffee farmers dip into their modest reserves to
cover expenses until they can sell their crops. Some farmers may even experience a cash
shortage, prompting them to sell their crops early – and for less – to local buyers.
Starbucks provides funding to organisations that offer loans to coffee growers, which will help
them sell their crops at the best time to get the right price. The loans also help farmers to invest
in their farms and make capital improvements.

REFERENCES

Supplier Guidance Global Requirements. (2018). Retrieved from

http://globalassets.starbucks.com/assets/F407FCDAE3F940F9A1125CB549ABBD06.pdf?
fbclid=IwAR2o8B5gGIiywYc1mJm43UZRZJgtxQVAkSh_omYoEEMmI__UIgsn2oPxmWY