Starbucks Responds to Arnold & Porter: Our Information "Was Not Accurate"

A few weeks back, Starbucks Senior VP Dub Hay said on this video that Ethiopia's coffee trademark attempts are illegal.

Bob Winter of Arnold and Porter LLP responds on YouTube to Starbucks talks about coffee farmers in Africa and says that Hay's claim is totally absurd.

You might wonder what Hay would have to say.

Well, a comment posted - as Starbucks Coffee Company - on YouToube reads:

"Since our 1st video was posted, a lot has happened. When we posted that video we felt the information was correct & since we've learned a lot & realized the information about the legality of the trademark was not accurate. Dub & other Starbucks partners recently visited Africa & met with the Ethiopian Govt. We agreed not to oppose Ethiopia's efforts to obtain trademarks for its specialty coffees, Sidamo, Harar/Harrar & Yirgacheffe, & its efforts to create a network of licensed distributors.

"Also, we agreed to work together to help increase Ethiopian farmer incomes and make sure there is a sustainable production of fine coffee. We will continue to strengthen our partnership with them and work to improve the lives of Ethiopian coffee farmers and their families. In fact, we just announced that we will double our purchases from East Africa and open a Farmer Support Center in East Africa.

Thanks,
Matt Murray
Starbucks Coffee Company"

Another viewer thought Starbucks' behaviour was irresponsible and unacceptable. The response comment reads:

"Wonder, does Starbucks intend to compensate Ethiopia for all the harm they caused before they "learned a lot" and realized that they posted a video that over 25,000 people watched that turned out to be, in effect, a lie?Or, no, let me rephrase... just inaccurate...

"If they were "inaccurate" about whether it's legal, I wonder what other statements put out by Starbucks about this whole Ethiopia thing are inaccurate?

"And seriously, if it was just a "whoops" kind of thing, shouldn't someone be losing their job or something? I would think that's what happens when someone talks on behalf of their company in a way that's totally off the wall. Normally it's not people this senior though... Whoops, I goofed and publicly maligned a whole country's policy in front of tens of thousands of people. My bad. "

I agree. How long would it take Starbucks to learn and realize what we already know? Read my comments on Starbucks' disingenious video here.

The difference between Starbucks' retail price of $26/lp and its purchase price of $1.46/lp is $24.54. Who is responsible for this disparity? And when shall the company "realize" that this is not fair?

To watch and read the e-debate begin with Bob Winter' video on YouTube.

Stay tuned, for more on this