Strategic Organizing Center Issues Statement on Starbucks

The Strategic Organizing Center (the “SOC”), a shareholder of Starbucks Corporation (Nasdaq: SBUX) (“Starbucks” or the “Company”), today issued the following statement:

The SOC launched our campaign for change at Starbucks this past November because we believed the Company’s response to its employees’ attempts to unionize was misguided. In our view, Starbucks’ strategy – overseen by the Board of Directors (the “Board”) – had materially damaged the value of the Company’s brand and negatively impacted its shareholders, partners and customers.

Last Tuesday, Starbucks and Workers United announced that the two sides had agreed to work together on a path forward to reach collective bargaining agreements for represented stores and partners, the resolution of litigation, and a fair process for workers to organize. Starbucks also took the significant step of providing employees represented by Workers United with the May 2022 benefits, including credit card tipping. As was widely noted, this agreement represents a potentially ‘huge shift’ in Starbucks’ labor relations strategy and a ‘major step forward for all involved.^1,2

Since the announcements, we have had meaningful dialogue with a number of other shareholders. Based on these discussions, we believe that by and large shareholders are optimistic the Company has committed to these changes in good faith and intends to begin to repair its relationship with its workers, which will ultimately enhance performance and shareholder value. We also believe Starbucks’ establishment of its Environmental, Partner and Community Impact Board Committee represents an important governance reform, one which we hope will increase board oversight and performance on Starbucks’ partner-related issues.

While we continue to believe that our three exceptionally qualified nominees – Maria Echaveste, Hon. Wilma Liebman, and Hon. Josh Gotbaum – would be additive to the Starbucks Board, we feel that now is the time to acknowledge the progress that has been made and to allow the Company and its workers to focus on moving forward. As such, we are withdrawing our director nominations.

We think it’s imperative that shareholders continue to monitor the Board’s performance and Starbucks’ approach to labor relations issues in the coming months – and we plan to continue to hold the Company accountable going forward.

We would like to thank our nominees, the shareholders we engaged with, and everyone involved with our campaign. We are truly hopeful that the commitments made and steps taken last week will result in Starbucks returning to the right path, and the Company being able to fulfill its vast potential for all its stakeholders.