More than a year after committing to make its workforce more racially diverse, Starbucks has pledged to nearly double the amount it spends with minority-owned suppliers.

The company announced Tuesday it planned to increase the money it spends with diverse suppliers to $1.5 billion annually by 2030, a jump from the nearly $800 million it spent with diverse suppliers in fiscal year 2021.

At the same time, Starbucks said it would commit 15% of its advertising budget in the next year to minority-owned and oriented media companies, part of an effort to broaden its audience. Many advertisers and companies announced plans to take similar steps in response to calls from activists advocating for social and racial justice in the summer of 2020.

Equity issues and anti-Black bias at the company came to the forefront in 2018, when two Black men were arrested at a Philadelphia Starbucks store while waiting to buy coffee. Starbucks answered a boycott threat with promises that it would change its corporate culture, pledges put to the test in an Equal Employment Opportunity Commission investigation, which was settled last March.

Also on Tuesday, the Seattle-based coffee giant outlined a broader initiative to advance social and racial equity at the company, including plans to launch a leadership accelerator program this summer to connect Black, Indigenous and people of color employees with senior leadership and announcing the first round of funding to people of color-owned businesses through its Community Resilience Fund.

“We haven’t always gotten it right, and we have experienced setbacks, but we’ve taken those setbacks and turned them into opportunities to grow and to be better,” Dennis Brockman, chief global inclusion and diversity officer, wrote in a letter to employees.


“It’s not enough to share these words in one message, our work must be realized through action,” Brockman said.

The most recent announcement builds on an earlier commitment to increase diversity in its workforce, from baristas to regional managers to senior vice presidents — and a plan to tie executive pay to its success.

In October 2020, Starbucks announced an initiative to increase the percentage of people of color represented in corporate operations to 30% by 2025 and increase the number of people of color in retail and manufacturing roles to 40% in the same period.

Starbucks said at the time, and again on Tuesday, that compensation for CEO Kevin Johnson and 42 other senior executives would hinge on its ability to meet those goals, but the company hasn’t shared any more details.

A year later, Starbucks has increased the percentage of female workers from 69% in 2020 to 71% last year. Representation of people of color also increased a few percentage points to 48% in 2021.


At Starbucks cafes and coffee stands, the number of Black employees working as regional directors increased from 12% in 2020 to 16.7% in 2021. The ratio for regional vice president roles had the opposite trend: Black workers made up 17.6% of vice presidents in 2020 and 10% in 2021.

About 6% of regional vice presidents in 2020 were Hispanic or Latino. That number rose to 10% in 2021.

In corporate roles, 9.8% of senior vice presidents were Black in 2021, compared to 11.6% in 2020. The percentage of senior vice presidents who were Hispanic or Latino remained steady, from 2.3% in 2020 to 2.4% in 2021.

“We have the power to reframe and normalize diversity,” Brockman said. “I do not take this work lightly — we’ve made great strides, but we cannot lose momentum and must move faster to accelerate the change necessary and imperative to ensure Starbucks is the brand of choice in being the most diverse, inclusive, equitable and accessible company.”

The announcement comes during a time when some Starbucks workers are pushing to unionize. Employees at the Starbucks at Broadway and East Denny Way in the Capitol Hill neighborhood filed a petition with the National Labor Relations Board in December to hold a union election.

Earlier this month, unionized employees at a Starbucks store in Buffalo, New York, walked off the job due to health concerns while working amid surging COVID-19 cases.


In his letter to more than 200,000 partners, Brockman cited the company’s mission “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.”

To hold itself accountable, Starbucks has committed to share regular updates on its diversity goals.

Starbucks has invested $21 million to seven Community Development Financial Institutions to support small business growth and community development projects, fulfilling part of a $100 million commitment for its Community Resilience Fund.

An earlier version of this story mischaracterized Starbucks investment in seven financial institutions as a donation.