STARBUCKS MAY BUY THAILAND COFFEE

BANGKOK, Thailand (AP) Once they grew opium, the raw material for
the deadly drug heroin. Soon, they may be growing coffee for Starbucks.

The Seattle-based company is in discussions with the aid group CARE
and representatives of a project run by Thailand's royal family to
begin buying arabica coffee beans from the country's hill tribe
farmers, a company executive said Monday.

For decades, opium was the leading cash crop for Thailand's hill
tribes. But over the past 25 years, under a program sponsored by
Thailand's King Bhumibol Adulyadej, they have slowly switched to
other crops, including coffee.

"The coffee is the right species, arabica," said Dave Olsen, senior
vice president for research and development, as he toured Starbucks'
four stores in Bangkok.

"Right now, the quality isn't good enough. But we want to work with
them to improve it so, hopefully, we can buy from them," Olsen said.
"That would be good for the hill tribe people, good for Starbucks and
good for Thailand."

He said the discussions are part of Starbucks' goal of increasing its
presence in Asia and elsewhere overseas.

Currently, only 175 of the company's more than 2,000 stores are
outside North America. However, within the next five years, Starbucks
expects to have more stores outside North America than within, Olsen
said.

Although Asians are traditionally tea drinkers, the increasing passion
for coffee in the region will drive that growth, he said.

In Asia, Starbucks already has stores in China, Japan, the
Philippines, Singapore, Taiwan and Thailand, and plans to expand into
South Korea.

Olsen said the company, with its joint-venture partner Central
Pattana, a hotel and retail group, plans on opening a store a month in
Bangkok over the next couple of years.

"The opportunities for growth in Asia are impressive," he
said.

Most Asian countries, however, if not battling deep recessions, are in
economic doldrums. And by local standards, Starbucks coffee is expensive.

With $533 a month considered a decent salary for a Bangkok office
worker, will they be willing to shell out $2.50 for an Iced Frappucino?

"To the greatest extent possible, we like to think of our coffee as
the affordable luxury," Olsen said.

Traffic in Bangkok's four Starbucks' branches seem to bear him out.
They are frequently jammed with office workers, shoppers and students
sipping away