Starbucks’ 10-Ks say that “the ongoing relevance of our brand may depend on making sufficient progress toward our social and environmental program goals,” including those regarding “animal health and welfare.” The company also says that its goal “for all of our products to meet high quality and ethical standards” includes “a commitment to...animal welfare as a primary focus.”

More specifically, one of Starbucks objectives is to “to exclusively use 100 percent cage-free eggs and egg products in company-operated stores globally.”

Although it discloses progress toward that end in some regions, it’s also long-claimed that in China and Japan (two of its top markets) “cage-free egg production is limited and supply is not yet widely available.” In fact, a version of that claim has been on Starbucks’ website since 2021.

But now, it seems the company may have finally developed plans for moving forward there.

In June 2024, an organization called Global Food Partners announced it worked with Starbucks to develop “cage-free implementation roadmaps for China and Japan” to enable the company to “set their implementation plans, and advance their cage-free commitments in both markets by their deadline.”

Yet Starbucks hasn’t disclosed details of these roadmaps or any related deadlines.

Beyond impacting animals themselves, this issue also impacts other material factors—like food safety and quality. For example, according to SASB Standards, by “increasing the amount of food supply sourced in conformance with...animal welfare standards and best practices, restaurant operators may be able to maintain food quality, manage food safety issues, enhance their reputation and expand their market share.” [Emphasis added.]

Plus, a 2021 survey by the (Chinese) Food Research Center found that 75% of Chinese consumers are more likely to patronize brands that use cage-free eggs. The issue is so significant there that in 2023, Chinese poultry media named “cage-free” the industry’s “key word of the year.”

Especially since animal welfare is a “primary focus” for Starbucks, its brand relevance may depend on progress toward its animal welfare goals, and the use of cage-free eggs is linked to highly material factors like food quality and safety, we think the company should simply disclose its new plans for achieving its goal in China and Japan.

To be clear, we’re not asking for any new policies or plans, but just that Starbucks disclose details of the ones it already apparently has. Doing so would allow shareholders to assess the effectiveness of the company’s management of this issue and its related risks and track its progress implementing a longtime commitment.