Starbucks has received lot of negative publicity lately for not using fair trade coffee. According to consumer watchdog organicconsumers.org, only 3.7% of Starbucks coffee purchases annualy are Fair Trade Certified. This does not bode well for Starbucks suppliers who may hail from Costa Rica, Ethiopia or other developing countries etc. Of course, Starbucks contention is that requiring Fair Trade certification will make their coffee more expensive.
It appears that Starbucks' new Ad campaign, "I am Starbucks" is aimed at deflecting this negative publicity and to promote a farmer-friendly image. Takers anyone? :)
1 comment:
Starbucks is the world's largest buyer of Fair Trade coffee. If Starbucks sold only Fair Trade coffee, no one else could as they would then buy all of it. 2% of the world's coffee production is Fair Trade certified and Starbucks buys 2% of the world's coffee production.
The Fair Trade certification is not typically even possible for larger growers as it is designed for smaller co-operatives. The C.A.F.E. program which is focued on the environment, sustainability, and workers rights is more inclusive.
Note that 7-10 cents of each pound of Fair Trade coffee sold goes back to the Fair Trade organization and not to farmers. The net price received by farmers from Starbucks often exceeds the Fair Trade net price ($1.41 gross in 2006 or $1.32 net).
60% of the coffee sold by Starbucks in 2006 was either C.AF.E. or Fair Trade. Here is a link to the C.A.F.E. requirements.
http://www.scscertified.com/csrpurchasing/sbux/docs/CAFEPracticesEvaluationGuidelines220107.pdf
Starbucks size and success does not automatically make the company corrupt or evil.
Post a Comment