Opportunity in the Asian MarketOpportunity in the Asian MarketAlain Poncelet, Starbucks Coffee CompanyAlain Poncelet, Starbucks Coffee Company

2007 Starbucks Coffee Company.

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AgendaAgenda

XX Coffee Trends in AsiaCoffee Trends in AsiaXX Starbucks Consumer Trends Starbucks Consumer Trends XX Outlook for the RegionOutlook for the RegionXX CSR and AsiaCSR and Asia

Coffee Trends in AsiaCoffee Trends in Asia

02000

4000

6000

8000

10000

12000

14000

16000

18000

U

n

i

t

s

/

O

u

t

l

e

t

s

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

(Source: Euromonitor International - 2007)

Asia Pacific Asia Pacific -- Growth in Specialty Growth in Specialty Coffee StoresCoffee Stores

1999: Starbucks Store Count < 200

Today: Starbucks Store Count 1,831 (Q1-FY 07)

Retail Sales Value of CoffeeRetail Sales Value of Coffee(Compound Annual Growth Rate Comparison)(Compound Annual Growth Rate Comparison)

4.2%2.7%17.1%7.8%

10.0%9.1%6.7%3.6%

5.8%5.4%3.1%3.4%

11.2%3.3%6.4%7.2%

1.9%1.5%9.6%4.6%10.7%0.6%

6.3%2.6%12.1%11.3%

Total

Vietnam

Thailand

Taiwan

South Korea

Singapore

Philippines

Malaysia

Japan

Indonesia

India

Hong Kong, China

China

CAGR 2000-05CAGR 2005-10

Source: Euromonitor International

Multiple Factors Driving Change in Emerging Asian Markets

LifestyleBinjian, Shanghai

Multiple Factors Driving Change in Emerging Asian Markets (cont.)

Retail

Hefei Shanxiaokou (

Chongqing Metro Plaza

Multiple Factors Driving Change in Emerging Asian Markets (cont.)

Economics/Demographics

Government

Qingdao Hisense (

Xi Hu Tian DiHangzhou, Zhejiang

Starbucks Consumer TrendsStarbucks Consumer Trends

Consumer TrendsConsumer Trends

Sales mix, store use and value perceptions Sales mix, store use and value perceptions continue to shift over timecontinue to shift over time..

Sweet/Creamy Drinks

Hip Trendy

High Price

Exploration into Drip Coffee / Whole Bean

Regular Visits

Value Perceived

Japan Japan (market entry 1996)(market entry 1996)

RTD JapanRTD Japan

XX $10+ billion industry$10+ billion industry

Taiwan Taiwan (market entry 1998)(market entry 1998)

China China (N. China market entry 1999, overall an early market)(N. China market entry 1999, overall an early market)

Outlook for the RegionOutlook for the Region

The Brand Travels The Brand Travels Asia PacificAsia Pacific

ChinaChina

JapanJapan

KoreaKorea

ThailandThailand

ChinaChina

1996: 2 countries1996: 2 countries

Asia Pacific: A Brief HistoryAsia Pacific: A Brief History

2000: 9 countries2000: 9 countries2007: 11 countries2007: 11 countries

Today:Today: 1,831 Asia Pacific Stores 1,831 Asia Pacific Stores (Q1(Q1--FY FY 07)07)

Asia PacificAsia Pacific

1,8311,831

10,00010,000

Future:Future: at least 10,000 Storesat least 10,000 Stores

Starbucks Asia Pacific VisionStarbucks Asia Pacific Vision

Asia BreakdownAsia BreakdownStarbucks Store CountsStarbucks Store Counts

Japan, 665

Malaysia, 79

Philippines, 106

Singapore, 42

South Korea, 187

Indonesia, 48

China, 213Taiwan, 189

Thailand, 91

Hong Kong/Macau,

75

TodayToday

(Q1(Q1--FYFY07)07)

CSR and AsiaCSR and Asia

The success of the farmers with whom we do business and the communities that we operate in are critical components of our success.

An Integrated ApproachAn Integrated Approach

X Investing in Social Development ProjectsX Farmer Support Center for Technical Support and

Training X Buying Conservation & Certified Coffees for

Environmental and Economic StabilityX Encouraging Coffee and Farmer Equity Practices

(C.A.F.E. Practices)X Providing Farmers Access to Affordable CreditX Paying Premium Prices to Help Farmers Profit

MuanMuan JaiJai

X Integrated Tribal Development Project

X Launch Muan Jai Blend

We are in the people business serving coffee

Lwyss@starbucks.com