Sept. 20, 2007 Seattle-based Tully's coffee company is hoping to lure customers away from Starbucks by positioning itself as a greener alternative, the Seattle Post-Intelligencer reports. (via Environmental Leader)

Tully's says its 92 company-owned stores will use 100% certified Fair Trade and organic espresso for those drinks, fully compostable paper cups for hot beverages, and low E fluorescent lighting.

Tully's also will begin a recycling collection program, which includes coffee grounds, in its stores. Once all the recycling programs are in place, Tully's will go from having 69% of its waste being sent to landfills to 72% of its waste being recycled, according to company estimates.

The green initiatives come at a price for customers, however. To pay for its new programs and to offset the rising cost of milk and coffee, Tully's is raising its prices 3.5%, or just less than 11 cents per drink. Starbucks raised its drink prices by an average of 9 cents last July, blaming rising dairy costs.

Tully's has struggled in recent years to keep up with its rival. The company previously failed in its attempt compete head-to-head by opening stores close to Starbucks locations. Tully's move toward green follows a nationwide trend of companies seeking to attract environmentally conscious consumers.