Recycling Starbucks Cups

SEATTLE & MEMPHIS, Tenn. – November 30, 2010 – Earlier this month, Starbucks Coffee Company (NASDAQ: SBUX) and International Paper (NYSE: IP), with Mississippi River Pulp, LLC., completed a six-week pilot project that – for the first time – proved Starbucks used paper cups can be recycled into new paper cups. This advancement brings Starbucks one step closer to its goal of ensuring 100 percent of its cups are reusable or recyclable by 2015.

“This innovation represents an important milestone in our journey,” said Jim Hanna, Starbucks director of Environmental Impact. “We still have a lot of work to do to reach our 2015 goal, but we’re now in a much stronger position to build momentum across the recycling industry. Our next step is to test this concept in a major city, which we plan to do in collaboration with International Paper and Mississippi River in 2011.”

While some communities already recycle Starbucks paper cups, most do not have the infrastructure in place to handle collection, hauling, and processing due to a lack of demand for cup material by the recycling industry. To date, Mississippi River is the only pulp mill in the U.S. that has successfully recycled used cups into fiber suitable for producing new cups.

“What’s really exciting about the cup-to-cup concept is that it has the potential to benefit not only Starbucks, but the entire foodservice industry,” said Greg Wanta, vice president of International Paper Foodservice, the largest manufacturer of Starbucks paper cups. “If we can continue to prove the value of used cup material generated by Starbucks and other retailers, we can help increase recycling rates in communities across the country.”

“We’re looking forward to working with Starbucks, International Paper, and other stakeholders to take the pilot project to the next level,” said Rob Garland, chief executive officer at Mississippi River. “Based on what we’ve seen so far, we think this is a very promising path.”

The cup-to-cup pilot was...