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Starbucks and Fair Trade Coffee

10/13/05 @ 11:30:00 am, by Kate Hopkins Email 2351 views • Categories: Coffee, Food Politics

Did you know that you can order Fair Trade Coffee at Starbucks? I sure didn't.

What is Fair Trade Coffee? It's essentially coffee (the actual commodity that's imported and exported en masse from country to country) priced at a "Fair Trade" market price. Fair Trade is -- and I'm generalizing here -- the belief that the producers of a product deserve an equitable price for their product, hopefully ensuring that they don't go bankrupt while others profit from their initial work.

One of the biggest criticisms of Starbucks over the years -- aside from their rampant expansion -- is their lack of cooperation in bringing their buying power of coffee beans to ensure that their growers are being paid a fair wage. Typically most would just chalk this up to corporate greed and the like, but Starbucks actually espouses their "green philosophy" to investors and consumers, which makes their business practices seem not only greedy, but hypocritical. The hypocrisy is seen in the fact that they:

  1. Don't advertise the fact that one can get Fair Trade coffee at their locations.
  2. Haven't effectively communicated their ideas well enough to the franchise level, ensuring that one can order a cup o' Fair Trade without a Barrista giving you a confused, "what-the-hell-are-you-talking-about" look.
  3. Fair Trade coffee is prepared only in French pressed style
  4. It's offered only in Venti size...
  5. ...which means Venti Prices only.
  6. On average, it takes ten minutes to make French pressed coffee at their locations.

As you can see, Starbucks doesn't really go out of their way to provide the Fair Trade coffee they make available.

City Hippy, noticing said hypocrisy, has decided to do something about it. They've issued the Starbucks Challenge, with the simple premise of "If a company makes a promise, it should stick to it". The Challenge? Ask for a cup of Fair Trade coffee at your local Starbucks and post the results online. Bloggers write about it in your blog and tag the link "starbuckschallenge" at del.icio.us, non-bloggers can email either cityhippy@gmail.com or greenlagirl@gmail.com.Green LA Girl is the US representative of this project, and one should contact her if you have any further questions.

So, if your consumer decisions are based off the philosophy of ethical purchasing, then you may want to ask the barrista at your local caffeine shack for that specific blend. Nothing drives the market demand for a product better than when the market actually demands the product.

via Seattlest

UPDATE: Bruce e-mails to let me know that my facts are a bit off. Here is his response:

Sorry Kate but I feel compelled to clear up some of this misinformation.

  1. Starbucks doesnt do alot of advertising but they did send out press releases advertising the fact that October is Fair Trade month and they'll be brewing fair trade cafe estima ( i put the link to this in my site URL box) And starbucks will periodically brew this during certain weeks.
  2. Starbucks doesnt do Franchises. The ones in Target, Barnes & Noble, Grocery Stores and Airports are licensed to those particular companies those. As far as the communication goes I think that varies store to store depending on the manager and how well they communicate operations to the team. And there is always going to be a few partners who only work 4 hours a week and are out of the loop, or are lazy, new, or are just plain oblivious, but that's not the norm.
  3. As shown above Fair Trade is not only brewed in French Press. It will usually be brewed as coffee of the day at least one week a month.
  4. If it's not during the morning rush it only takes 5 minutes to brew a french press.
  5. I agree we should have more organic and fair trade options that are avilable and brewed every day and I don't think it will be too long before that comes to pass as the shareholders voted last year to work on increasing the purchase of Organic/Fair trade to like 50% of beans purchased by 2010, i think? memory fails me. As far as ethical purchasing goes, I am very proud to work for a company that is so socially responsible. On average they pay 60% more than the market price for the going rate on Arabica beans. Starbucks has a purchasing system that rewards and gives incentive for farmers that score high on the criteria which include among other things environmental and socially responsible guidelines. You can find out more here

Mea culpa Bruce. Some of the information I read from the links above were incorrect. I'm planning a trip to the local Starbucks this weekend when I am more mobile.


Comments, Pingbacks:

Comment from: Cindy [Visitor] · http://cindyskitchen.blogspot.com
If I lived in country where Starbucks exist I would have blog about it, but unfortunately in France there are no Starbucks.
Still I'm looking forward to read about other's experiences.
PermalinkPermalink 10/14/05 @ 04:12
Sorry Kate but I feel compelled to clear up some of this misinformation.
A) Starbucks doesnt do alot of advertising but they did send out press releases advertising the fact that October is Fair Trade month and they'll be brewing fair trade cafe estima ( i put the link to this in my site URL box) And starbucks will periodically brew this duuring certain weeks.
B) Starbucks doesnt do Franchises. The ones in Target, Barnes & Noble, Grocery Stores and Airports are licensed to those particular companies those. As far as the communication goes I think that varies store to store depending on the manager and how well they communicate operations to the team. And there is always going to be a few partners who only work 4 hours a week and are out of the loop, or are lazy, new, or are just plain oblivious, but that's not the norm.
C) As shown above Fair Trade is not only brewed in French Press. It will usually be brewed as coffe of the day at least one week a month.
D) If it's not during the morning rush it only takes 5 minutes to brew a french press.
E) I agree we should have more organic and fair trade options that are avilable and brewed every day and I don't think it will be too long before that comes to pass as the shareholders voted last year to work on increasing the purchase of Organic/Fair trade to like 50% of beans purchased by 2010, i think? memory fails me. As far as ethical purchasing goes, I am very proud to work for a company that is so socially responsible. On average they pay 60% more than the market price for the going rate on Arabica beans. Starbucks has a purchasing system that rewards and gives incentive for farmers that score high on the criteria which include among other things environmental and socially responsible guidelines. You can find out more at:
(http://www.starbucks.com/aboutus/sourcingcoffee.asp)
PermalinkPermalink 10/14/05 @ 08:33
Comment from: Eva [Visitor] · http://trueepicure.com/blog
I find Starbucks quite frustrating. They say they do all of these good things (and they do provide lots of free coffee grounds for my garden), but then they move into my neighborhood where there are already two indie coffee places, and plop themselves in a strip mall, yards away from the smaller of the two indies.

There were already two other Starbucks within two miles of my house. I have yet to write a letter to the company, but I will.
PermalinkPermalink 10/14/05 @ 08:40
Comment from: Bruce C Stanley [Visitor]
Starbucks actually helps indie coffee houses out by expanding the market and educating consumers on what "good" coffee, along with lattes and machiattos actually are. They wouldn't have opened up more stores if there wasn't the demand. And there will always be the anti-corporate types that naturally prefer inconsistency of un-corporate cafes. You should go and ask them how their business has been affected.
PermalinkPermalink 10/14/05 @ 08:59
Comment from: Barbara Fisher [Visitor] · http://www.tigerberries.blogspot.com
Consistency doesn't much matter if you cannot stand the flavor of Starbucks coffee. Consistently bad is consistent, yes, but still bad.

Sorry, Bruce, but Starbucks coffee sucks. (I am generally more eloquent than blunt, but in this case, the word, "sucks" conveys just the right meaning.)

It tastes burnt and they charge more than a reasonable price for it. Most of their employees don't seem to care and I am not into stale pastries.

So, I don't buy from them. I brew my own freshly roasted coffee at home for a significantly lower price, and am happy. I can even do my own espresso drinks.

And if I am too lazy for that, or am out and about--there are some local places that are consistently good where I can get coffee that tastes like coffee, not like burned dirt.

(And, to be fair, there are also local places that make Starbucks look like the pinnacle of good coffee flavor.)
PermalinkPermalink 10/14/05 @ 09:32
Comment from: Murgatroid [Visitor]
Barbara i think your tastebuds have been brainwashed by your radical ideologies. taste is a subjective thing.
PermalinkPermalink 10/14/05 @ 11:52
Comment from: Barbara Fisher [Visitor] · http://www.tigerberries.blogspot.com
I have radical ideologies?

Cool. I always wanted some.
PermalinkPermalink 10/14/05 @ 12:59
Comment from: gzombie [Visitor] · http://ghw.wordherders.net
"As shown above Fair Trade is not only brewed in French Press. It will usually be brewed as coffee of the day at least one week a month."

So, one day out of 30, it's the coffee of the day. The rest of the month, consumers get French press. There's not that big of a difference between what was originally written and your correction.

"Starbucks actually helps indie coffee houses out by expanding the market and educating consumers on what 'good' coffee, along with lattes and machiattos actually are. They wouldn't have opened up more stores if there wasn't the demand."

I think you should recognize the contradiction in these two sentences: is Starbucks creating demand or responding to it? If the former, then yes, Starbucks is hurting independent coffeehouses. If the latter, then Starbucks can't take credit for people appreciating good coffee.

Don't get me wrong: I like Starbucks coffee and, usually, the Starbucks store environment. But I've never been to an independent coffeehouse that didn't make coffee at least as good as, if not better than, Starbucks. And more affordable, to boot.

Starbucks' own website admits that because they are such a large corporation, they cannot trade only with small farmers. There are many smaller American coffee enterprises, however, who clearly have no problem doing so.

Is Starbucks trying to do the right thing? I believe that they are.

Are there other sources for good coffee that are making more ethical choices in the way they do business? You betcha.
PermalinkPermalink 10/14/05 @ 14:25
Comment from: Bruce [Visitor]
Last time I checked there were 7 days in a week. Also creating demand and responding to demand are not mutually exclusive. Starbucks' same store sales have consistently shown increases from year to year and I still see new independent niche cafes popping up without established ones dissapearing so I need some harder evidence before I buy the argument that Starbucks steals all the business from small locally owned cafes. You have to admit, before Starbucks came into the picture, Lattes were a pretty foriegn concept to MOST Americans.

Also the small size of independent cafes limits the potential impact they can have on the growing regions and their own employees. Starbucks should be a role model for other corporations in terms of social responsibility. The company channels money back into it's farming communities that manifests into clinics, schools, sustainable farming training programs, and access to affordable
credit to list a few. They also set the standard by offering health benefits, stock options, tuition reimbursement, and 401k programs to PART-TIME EMPLOYEES. The same can't be said of any small independently owned cafes that I know of, although I'm sure there are some out there.
PermalinkPermalink 10/14/05 @ 16:00
Comment from: Bruce [Visitor]
Why should you limit yourself to buying ONLY from small farmers if there is a superior product to be obtained from a larger operation? I don't get it...please enlighten me.
PermalinkPermalink 10/14/05 @ 16:03
Comment from: gzombie [Visitor] · http://ghw.wordherders.net
Is everyone at Starbucks as condescending as you, Bruce?
PermalinkPermalink 10/14/05 @ 17:47
Comment from: Kate Hopkins [Member] Email · http://www.accidentalhedonist.com
Bruce,

Well, "a superior product" is very much a subjective term. What is one person's wine is another person's poison. But there's a larger question here and one that needs to be addressed.

What if a superior product comes at a higher cost? Is the product then worth it? I'm not talking the price of the mochachinno, but rather how we treat the producers of the product. There's an ethical cost we make every time we make a purchase.

With Starbucks, we don't know how committed they are to the process. They say certain things, but the fact is, they don't advertise Fair Trade coffee. Some people aren't willing to pay the cost of Starbuck's ethical shell game.
PermalinkPermalink 10/14/05 @ 18:11
Comment from: Bruce [Visitor]
I am really interested in any information/evidence of how the company is harming growing communities and small farmers.
PermalinkPermalink 10/14/05 @ 23:54
Comment from: Kate Hopkins [Member] Email · http://www.accidentalhedonist.com
Bruce

- Read this (http://www.oxfamamerica.org/pdfs/mugged_coffee-report.pdf) from Oxfam (it requires adobe as it's in pdf)
- Starbucks sells the majority of their products with non Fair Trade Coffee


It's a fairly logical argument for folks to make.
PermalinkPermalink 10/15/05 @ 08:26
Comment from: Adria [Visitor]
It's interesting that someone would defend Starbucks practices with a retort that entails telling us that 50% of their beans will be fair trade by 2010. This isn't acceptable. No amount of slave labor is EVER acceptable. Plenty of other coffee companies are 100% compliant with fair trade standards. You can get a cup of espresso (any kind) from Dunkin' Donuts and it is completely fair trade. Green Mountain and many other companies are 100% fair trade. The only way that Starbucks should operate and be completely guilt free is to do the same immediately, not four or five years in the future. If other companies can do this, so can they. As far as paying 60% more for coffee, this doesn't impress me. It explains why a flavored cafe late can range from 3.50 to 7.00 a cup but paying 60% more for coffee is like saying you are paying "fair trade" value for diamonds because instead of paying those poor children in Africa who mine diamonds for slave wages 1 cent an hour, you're now paying them 6 cents. In other words, it's all relative and the reason they pay 60% more is because they have such strict growing, picking and manufacturing demands (not that that is a bad thing, it's just different then buying generic grown, fair trade coffee).

Again, I am unimpressed by Starbucks policies. Until they 100% fair trade, I won't be buying their coffee and it's a shame since their $4.70, Grande Soy Toffee Nut Latte is pretty damn tasty!
PermalinkPermalink 10/16/05 @ 15:34

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