Industry News | April 11, 2007

Starbucks To Build S.C. Roasting Plant

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Starbucks Coffee Company (Nasdaq: SBUX) announced that St. Matthews in Calhoun County, S.C., is the intended site of the Company’s newest United States roasting facility. Construction on the approximately 150,000 square foot facility, which is approximately 15 miles from Columbia, is scheduled to begin by the end of this year. Operations are planned to begin in early 2009.

“Starbucks is pleased to further strengthen our ties to the South Carolina business community,” said Peter Gibbons, Starbucks senior vice president, manufacturing. “This new facility will help us meet increasing demand for our premium coffees and allows us to support our growth in the Southeast. We’re very proud to play a positive role in the development of Calhoun County through the creation of new jobs and opportunities.”

When operating at full capacity, the plant is stated to create approximately 160 new full-time positions. Starbucks chose the Calhoun County site based on several factors, including workforce availability, transportation access, quality of life and strong support from local and state leaders.

"Today's announcement is further evidence that our efforts to improve economic conditions for business growth are producing real results for more South Carolinians,” said Gov. Mark Sanford. “Our ability to attract a world-class company like Starbucks to a rural area of our state speaks volumes to that. Also, given the size of this investment and the number of jobs that come along with it, this is a real win that will have a tremendous impact on the local economy for many years to come."

The new Calhoun County facility will house equipment and operations to receive, roast, package and ship Starbucks coffee to distribution centers servicing company-operated stores, licensed stores and wholesale accounts around the Southeastern U.S. It will provide additional roasting and packaging capability to augment production from Starbucks four existing roasting plants. Starbucks other roasting plants are in Kent, Wash.; York, Penn.; and Carson Valley, Nev., and Amsterdam, The Netherlands.

As of Q1 fiscal year 2007, Starbucks currently had approximately 50 Company-operated and licensed retail locations in South Carolina with more than 2,200 stores in the Southeastern region of the U.S., including West Virginia, Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Arkansas, Texas, Tennessee and Kentucky.