Tainted Tea

Teavana Whole-Leaf Tea Product Contamination Crisis Plan

By: Luke Crawford Date written: May 15, 2014 Test date: Nov. 15, 2014

Table of Contents Introduction Why is this plan important?

What could happen if this plan is not followed?

Have there been warning signs of a contamination crisis?

Has this crisis happened at Starbucks Coffee Company before?

Has this crisis happened to similar companies?

Acknowledgements Rehearsal Date Schedule Purpose Objective Key Publics Crisis Team Media Spokesperson Interview Tips / Media Training Trick Questions Equipment and Supplies Holding Statement Key Messages NEWS RELEASE FACT SHEET Statement to Partners Social Media Responses Facebook Twitter Internet Sources Evaluation

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Introduction

Why is this plan important?

With the extensive focus on food sourcing and preparation practices in today’s food industry, it is particularly important to be prepared for any possible contamination emergency that could damage the brand, sales or customer safety of Starbucks Coffee Company.

What could happen if this plan is not followed?

If this crisis communications plan is not followed, Starbucks Coffee Company and the subsidiary Teavana brand will suffer nominal damages that could easily lead to loss of sales and business. Consumer trust is vital to our business, and fear of contaminated products could lead to great distrust that may prove impossible to mend.

Have there been warning signs of a contamination crisis?

The Journal of Toxicology reported in late 2013 that “toxic contamination by heavy metals was found” in Asian sourced teas. Product recalls regarding contamination of pesticide have occurred recently as well. These all serve as prodromes to a tea contamination crisis.

Has this crisis happened at Starbucks Coffee Company before?

Starbucks has suffered a crisis regarding contamination of sourced materials in the past. In 2008, milk from China was found to be contaminated with melamine, a toxic industrial chemical that can cause kidney failure and lead to the deaths of six infants during the crisis.

It is believed that milk producers based in China tried to cut production costs by adding melamine to watered-down milk to cover up a protein deficiency in their product. We responded by ceasing the sale of all milk products at our 300+ stores in China.

Has this crisis happened to similar companies?

In 2012, Ito En - a large food company in Japan - announced a recall of its Chinese-grown tea products after some were found to contain illegal levels of pesticide. Another Japanese tea company found pesticides in their tea first, and ultimately led Ito En to test their products. Sadly, contamination is a somewhat common issue in the tea industry, and we need to be ready for any resulting crisis.

Acknowledgements By signing this statement, I verify that I have read this crisis communications plan and am prepared to put it into effect.

Howard Schultz Chairman, President and CEO _________________________________________________ (Signature & date)

Annie Young-Scrivner Executive Vice President and President - Teavana _________________________________________________ (Signature & date)

Deverl Maserang Executive Vice President, Global Supply Chain _________________________________________________ (Signature & date)

Vivek Varma Executive Vice President, Public Affairs _________________________________________________ (Signature & date)

Sharon Rothstein Global Chief Marketing Officer _________________________________________________ (Signature & date)

Rehearsal Date Schedule

Next test: November 15th, 2014

Purpose In an event of the contamination of Teavana whole-leaf tea products, we must take immediate and thorough action to inform our publics of the situation and the steps they must take to avoid ingesting contaminated product. Our open, honest and consistent flow of communication to the media, healthcare facilities, our partners and our consumers will eliminate confusion among our publics. Forthright communication will assist in retaining the faith and trust in the Starbucks and Teavana brands. With this communications plan, the contamination crisis can be more smoothly resolved, and action can be taken to eliminate future problems.

Objective 1. Initiate crisis communications plan within 2 hours of receiving confirmed reports of contaminated Teavana whole-leaf tea product(s).

2. Inform healthcare organizations that might be involved with this situation.

3. Inform all internal publics within 3 hours of confirmed reports.

4. Initiate internal investigation into contamination crisis.

5. Inform media and customers using enclosed press release, fact sheet, website and mobile app messages within 4 hours of confirmed reports.

6. Update POS Systems and initiate protocols to facilitate recall within 4 hours of confirmed reports.

7. Keep the media and all publics regularly informed of updated information through regular news briefs and updates to Starbucks.com, Teavana.com and the modile app.

8. Maintain honesty with the media about all known information.

9. Find the source of the contamination crisis as soon as possible.

10. Distribute our findings to all internal and external publics.

11. Develop ways to alleviate future contamination problems.

12. Implement necessary changes as soon as possible and resume business as usual.

Key Publics Internal ● ● ● ● ● ●

Stockholders/Shareholders Executives Managers (Regional, District and Store) Partners Suppliers Distributors

External ● ● ● ● ● ●

National TV news personnel National radio news personnel National print news personnel Healthcare facilities Governmental agencies (CDC, etc) Customers

Crisis Team Office

Cell

Home

Email

Howard Schultz

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Luke Crawford

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Troy Alstead

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Marissa Andrada

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Adam Brotman

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Cliff Burrows

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Michael Conway

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

John Culver

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Curt Garner

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Jeff Hansberry

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Deverl Maserang

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Scott Maw

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Sharon Rothstein

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Arthur Rubinfeld

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Vivek Varma

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

Annie Young-Scrivner

111-111-1111

111-111-1111

111-111-1111

name@starbucks.com

All biographies and additional information can be found at news.starbucks.com/leadership.

Media Spokesperson The spokesperson must: ● ...have the power to make decisions and be accessible throughout the crisis. ● ...be articulate. ● ...must appear rational, concerned and empathetic during a crisis.

Key SpokesPartner

Howard Schultz Chairman, President and Chief Executive Officer

Vice SpokesPartner

Vivek Verma Executive Vice President, Public Affairs

Annie Young-Scrivner Executive Vice President and President, Teavana

Interview Tips / Media Training What to wear: ● ● ●

Avoid patterns and “loud” fabrics.

Dress up from head to toe.

Allow them to do your makeup! (Yes, men too.)

What to say: ● ● ●

Stick to key messages.

Don’t speculate!

If you don’t know the answer to a question, it is very respectable to say, “That is a very good question, but at this time I cannot give you an answer. I will continue to look into it and get back to you as soon as I know.” ● Avoid numbers. ○ NO:“Two stores had confirmed cases of contamination.” ○ YES:“Multiple cases of contamination have been confirmed, and we’ve since pulled all at-risk Teavana whole-leaf product from the shelves. Our customer’s health and safety is our main concern.”

Overall: ● ● ●

Smile.

Empathise, but don’t look weak.

Apologize and make it known that you are doing everything in your power to remedy the situation and keep customers safe. ● When in doubt, say a Key Message. ● Follow the below listed examples of Trick Questions and how to respond.

Trick Questions Speculative Question: “If the contamination wasn’t detected as early as it had, how many people could have died or gotten sick?”

Response: Do not speculate. Take this opportunity to reiterate Key Message # 1, our concern for the customers is the main priority.

Leading Question: “You do agree that the company should have been able to detect this contamination problem before the product was supplied to the public, right?”

Response: “At this time we are looking into what caused the contamination and are working to ensure something like this never happens again.”

Loaded Question: “Isn’t it true that you knew about this contamination problem but did nothing and that’s why you are doing a recall for tea products sold more than a month ago?”

Response: “I think what you mean to ask is why are we recalling Teavana tea products sold up to 30 days ago, and this is just an extra precaution we are taking to ensure the safety of our customers. All Teavana whole-leaf tea products returned to any of our stores will be disposed of properly, and a full reimbursement will be given to each and every customer.”

Naïve Question: “So wait, what happened with tea?”

Response: They have been briefed and provided with the necessary materials to know the answer to this question. You may respond with the Holding Statement placed on the website if you would like to answer. Remember, no speculation.

False Question: “You found contamination in all Teavana Tea Products across America, right?”

Response: These are used to trigger a numbered response like, “No, only two stores” their objective the whole time is to get that number. Avoid numbers and respond with something like,

“There have been confirmed reports and we have since taken all at-risk product from our shelves. The safety and health of our customers is our main concern.”

Chummy Question: “Hey Howwy… off the record, what do you think was the cause of this…?”

Response: Nothing is off the record. Respond with a Key Message.

Silence: Some reporters will just look at you in silence. This could be a tactic for them to elicit elaboration on the last question, or to just make you uncomfortable and vulnerable for the next question.

Response: Use the silence to smile, and reiterate the Key Messages.

Equipment and Supplies ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● ●

Mult box TVs Chairs Desks Computers Manual typewriters Bulletin boards Dry-Erase boards Flip Charts Printers Phones Surge protectors iPhone and Android chargers Batteries (AA, AAA, C and D) Battery powered TV and radios Walkie talkies Police radio Media directories Press kits Crisis plans Store maps / world maps / city maps Copying machines First aid kits Digital and disposable cameras Flash drives Reams of paper Basic make-up kit Basic tool kit Tape, stapler, paper clips, rubber bands, scissors Pens, pencils, markers, highlighters Call log sheets (online) One outfit for Key SpokesPartner and each Vice SpokesPartners Food and Beverages

Holding Statement The followoing statment should be posted on the Homepage of both the starbucks.com and teavana.com websites. It should also be posted (with minor changes to the last sentence) on Facebook, Twitter, and sent to our customers as a message on the Starbucks mobile app.

Statement: There have been confirmed reports of contamination in select Teavana whole-leaf tea products we carry. All at risk products have since been removed from our stores. We are recalling all Teavana whole-leaf tea products bought within the last month. Full reimbursements will be issued for any and all Teavana whole-leaf tea products brought back to our store for proper disposal. Our main concern is you, our customers. Follow us on Social Media and our mobile app for recent updates.

Key Messages

1.) Our main concern is the health and wellness of our customers, their families and the communities we serve.

2.) Only Teavana Whole Leaf Tea products are contaminated.

-Due to preparation and packaging procedures, we are confident that made-to-order Teavana beverages, such as the Oprah Chai, were not contaminated.

-All Starbucks Whole Bean and made-to-order beverages are not contaminated.

-All TAZO whole-leaf tea products are not contaminated.

3.) Teavana whole-leaf tea products have been taken off the shelves of all stores pending further investigation.

-All products subject to possible contamination have been taken from the retail shelves of all Starbucks Corporate and Licensed stores. (This includes all stores, kiosks and carts carrying the Starbucks and Teavana Logos.)

-As a further precaution, all products subject to possible contamination have been flagged by the POS Systems (cash-registers) and will not allow consumers to purchase them.

4.) All Teavana whole-leaf tea products purchased within the last month should be returned to the nearest Starbucks or Teavana store for proper disposal.

-A full reimbursement will be given to each customer.

NEWS RELEASE FOR IMMEDIATE RELEASE Luke Crawford crisis@starbucks.com DATE: ________________________ TEAVANA CONTAMINATION AND RECALL (SEATTLE) - Starbucks Coffee Company (SBUX), parent company of Teavana, announces the discovery of contaminated whole-leaf tea products today.

“We have received reports of contamination in select Teavana whole-leaf tea products,” said Howard Schultz, Chairman, President and CEO of Starbucks. “Our focus is on the health and wellness of our customers, their families and the communities we serve.”

“We are confident all TAZO whole-leaf tea products and whole-bean coffee products are not contaminated,” said Schultz. “All made-to-order beverages are also safe to drink, including Starbucks and Teavana made-to-order drinks.” Due to preparation and packaging procedures, no other products are subject to risk of contamination at this time.” Teavana whole-leaf tea products are sourced from eastern Asia, whereas TAZO tea products are sourced from central Asia and other regions from around the world. Made-to-order products do not use whole-leaf tea sourced from this area either.

“All stores have taken products suspected to have been subject to the contamination from the shelves,” said Schultz. “No at-risk products will be sold pending the investigation underway at this time.” All cash registers have been updated and will not allow the sale of any at-risk, whole-leaf tea products.

“As a precautionary measure, I ask all customers that bought Teavana whole-leaf tea products within the past month to return the products to the nearest Starbucks or Teavana store to be properly disposed of,” said Schultz. A full reimbursement will be given to each customer upon returning the at-risk product. “We will continue to work to ensure the health and safety of our customers and communities.”

--MORE--

TEA A full-scale investigation is underway at this time. We will do our best to keep the public updated on this matter.

About Starbucks Corporation Since 1971, Starbucks Coffee Company has been committed to ethically sourcing and roasting the highest-quality arabica coffee. Today, with stores around the globe, the company is the premier roaster and retailer of specialty coffee in the world. Through our unwavering commitment to excellence and our guiding principles, we bring the unique Starbucks Experience to life for every customer through every cup. To share in the experience, please visit us in our stores or online at www.starbucks.com.

About Teavana Founded in 1997, the company offers new tea enthusiasts and tea connoisseurs alike its "Heaven of Tea" retail experience where passionate and knowledgeable "Teaologists" engage and educate them about the ritual and enjoyment of tea. The company's mission is to establish Teavana as the most recognized and respected brand in the tea industry by expanding the culture of tea across the world. For more information, visit www.teavana.com. ###

FACT SHEET FOR IMMEDIATE RELEASE Luke Crawford crisis@starbucks.com There have been confirmed reports of contamination in select Teavana whole-leaf tea products we carry. All at risk products have since been removed from our stores. We are recalling all Teavana whole-leaf tea products bought within the last month. Full reimbursements will be issued for any and all Teavana whole-leaf tea products brought back to our store for proper disposal. Our main concern is you, our customers. We are working to keep you updated, and will do our best to ensure something like this never happens again.

Are all tea products affected?

No. Only select Teavana whole-leaf tea products are currently at risk. TAZO tea products and Teavana brand made-to-order (when our baristas make it for you.. like the Oprah Chai) are NOT at risk and are safe to purchase.

What do we mean by at-risk and contaminated product?

There have been confirmed reports of contaminated select Teavana whole-leaf tea products and to be sure all of our customers are safe, we are deeming all Teavana whole-leaf tea products to be “at risk”. This does not mean they are contaminated or risky to your health, we just want to be sure to contain this situation as best we can.

What if I buy one of these “at risk” products?!

We have taken all at risk product from the shelves of every single store, internationally. We have also updated the cash registers to make it impossible to sell any at risk product, just in case. Rest assured, you wouldn’t be able to buy any at risk product if you tried.

For More Information: please visit news.starbucks.com. News media please contact us at (206) 318-7100 or press@starbucks.com. ###

Statement(s) to Partners Partners, There have been confirmed reports of contamination in Teavana whole-leaf tea products.

This only includes the whole-leaf, retail, Teavana brand products sold on our retail shelves.

This does not include any of the drink products made on bar.

What ● ● ●

we’ve done so far: Started an internal investigation to find out why this happened in the first place.

Updated the POS systems to make it impossible to sell any “at-risk” product.

Initiated a recall of all “at-risk” product sold within the last month. ○ This is an extra safety precaution ○ Full reimbursements have been approved for all purchases of Teavana whole-leaf tea products sold within the past 30 days.

What we ask you to do: ● Remove all Teavana Whole-Leaf Tea Products from the retail shelves / bean walls / etc. ● Ensure customers know: ○ TAZO tea and tea products made on bar are not affected. ○ A recall of all Teavana whole-leaf tea products sold within the past 30 days has gone into effect. ○ We are doing our best to ensure something like this never happens again. ○ Refer them to our Social Media accounts and their mobile Starbucks applications for current updates.

Thank you all for being amazing partners. With your help, we can ensure the safety of our beloved customers and continue providing quality service and foster the Third Place. If you have any questions, feel free to contact our Partner Helpline at (206) 318-7100.

Your Partner,

Howard Schultz Chairman, President and CEO Starbucks Coffee Company

Social Media Responses Facebook Number of Page Likes (Teavana Like Page): Number of Unique Posts (Teavana Like Page): Number of Unique Posts (mentioning/tagging Teavana brand): Number of Page Likes (Starbucks Like Page): Number of Unique Posts (Starbucks Like Page): Number of Unique Posts (mentioning/tagging Starbucks brand): After aforementioned post on Starbucks and Teavana pages, we should tally the total engagement numbers (every 15 minutes) below.

Number of Shares: Number of Comments: Number of Likes:

Twitter Number of Followers (Teavana Twitter): Number of Mentions (Teavana Twitter): Number of Followers (Starbucks Twitter): Number of Mentions (Starbucks Twitter): After aforementioned tweet, tally the total engagement numbers (every 15 minutes) below.

Number of Favorites: Number of Re-tweets:

Internet Sources "The Benefits and Risks of Consuming Brewed Tea: Beware of Toxic Element Contamination." Journal of Toxicology. Hindawi Publishing Corporation, n.d. Web. 23 Apr. 2014. <http://www.hindawi.com/journals/jt/2013/370460/>.

"Featured News | Starbucks Newsroom." Starbucks Newsroom. N.p., n.d. Web. 9 May 2014. <http://news.starbucks.com/>.

"Starbucks Stops Serving Milk after Tainted Dairy Kills 4 Babies, Sickens Thousands in Scandal." NY Daily News. Associated Press, 18 Sept. 2008. Web. 23 Apr. 2014. <http://www.nydailynews.com/news/world/starbucks-stops-serving-milk-tainted-dai ry-kills-4-babies-sickens-thousands-scandal-article-1.321538>.

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