Starbucks, Fair Trade Activists at Black Gold Screening

Black Gold previewed at a public screening on Saturday, March 17, 2007 at the Northwest Film Forum in Seattle. The screening was followed by a panel discussion and audience Q & A moderated by Melissa Noelle Green, a local educator, author, and spoken word poet.**

The panel discussion marked the first time for fair trade activists and a Starbucks representative appearing together at a public screening of the documentary film in Seattle. Since the film’s screening at the Seattle International Film Festival in early June, 2006, Starbucks turned down several requests to join local grass-roots fair trade organizations for Q & A sessions.

Starbucks is facing growing pressure from consumers who are opposing the company’s actions against Ethiopian coffee farmers. Since the trademark dispute with Ethiopia is publicized, the public has been expressing its discontent with the company’s business practices which happened to be incompatible with the perceived socially responsible brand.

This screening was by far the most interesting one. Hosts of the public screening, ITVS, dubbed it as the best panel this season. The audience was involved.

Starbucks’ representative, Cindy Hoots, Senior Specialist, Corporate Social Responsibility, articulated the company’s position in supporting the fair trade movement but did not specify when and by what percentage the company would increase the availability of fairly traded coffees in company stores. Starbucks’ event flyer, also posted here under, reads, “We are proud of our partnership and continue to share the common goal of improving the lives of coffee farmers and their communities.”

Ms. Hoots underlined Starbucks’ partnership with TransFair USA adding, the long term contract the company signed with unspecified coffee growers is preventing Starbucks from signing new agreements with fair trade certified coops. She said, “We think it would be unfair to withdraw those contracts.” At the same time, Ms. Hoots insisted that the problem facing the farmers is a global problem where there is no easy way for one company to fix it. While I admired Ms. Hoots’ courage to meet head-on with the public despite its “risk” (in her words,) I feel that her defense of the company’s position has done little to sway the public’s anger - and understandably so.

The other panelists argued Starbucks is not doing what it could – and should – do to help coffee farmers in Ethiopia. They challenged Starbucks to play fair in the niche market the brand is positioned in. Starbucks buys premium quality coffee grown in altitudes above 3,500 meters above sea level. Meanwhile, even though the coffee trade is global in nature, Starbucks’ contribution to the injustice is not insignificant. As a leader in the specialty coffee industry, the company is responsible for its own share of the problem outside the commodity coffee trade.

I think, Starbucks’ actions against the Ethiopian farmers are far from being defendable. The company is not showing any sign of supporting farmers in their efforts to strategically dig themselves out of poverty. Ethiopia, tired of being short-changed, wants to take ownership of its famous coffee brands and asked Starbucks to sign a licensing agreement that would enable the farmers gain equitable bargaining power in the long run. But the company is continuing to dodge the question. I think this is an opportunity for Starbucks to demonstrate its determination to do its own fair share.

The audience at the public screening was able to differentiate between the global injustice and Starbucks’ roles. As demonstrated in the survey stats below, most of the viewers vowed to take action. Over 80 per cent of the audience stayed through the panel discussion and most of them waited longer even afterwards to meet with the panelists in the lobby. The individuals I met said that the whole issue has its roots in racism. One group of friends expressed their dismay at the fact that Africa is the only continent in the world that has become poorer in the last 20 years and yet the racism factor was not discussed.

The panel discussion was cordial, informative, and above all, a positive first step by Starbucks to engage in public dialogues on issues that matter most to the community.
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Fair Trade and Starbucks: Sharing a Common Goal (Starbucks’ Flyer)

Black Gold is a powerful, moving documentary highlighting the trade inequities between the Global North and the Global South. As coffee is one of the world’s most highly traded commodities, the filmmakers used the coffee industry as a backdrop to highlight this extremely complex issue. The film challenges the viewer to develop a greater sense of awareness about the origin of the products we use every day.

Starbucks has been working with TransFair USA since 2000. We are proud of our partnership and continue to share the common goal of improving the lives of coffee farmers and their communities.

In fiscal 2006, Starbucks global purchases totaled more than 18 million pounds (8 million kilograms) of Fair Trade Certified™ coffee, representing approximately 14 percent of global Fair Trade Certified™ coffee imports, and about 30 percent of imported into the United States. This represents approximately 6% of Starbucks total coffee purchases. Starbucks remains the largest purchaser, roaster and distributor of Fair Trade Certified™ coffee in North America.

Starbucks continues to support the Fair Trade movement, but we have discovered there is no simple solution to this global issue. It will take the efforts of the entire coffee industry to ensure that farmers receive fair prices for their coffee and strengthen their farms for the future. Below are other actions Starbucks is taking to support equitable trade:

In fiscal 2006, 98 percent of our coffee contracts included an economic transparency clause requesting documentation of payments made to various participants in the supply chain. In 95 percent of these contracts, economic transparency was required to the producer level.

Starbucks commitment to pay premium prices for premium quality coffee has not wavered over the years. We understand that coffee farming, like any business, must be profitable to be sustainable.

We will continue to work with organizations such as EcoLogic, Calvert Foundation, and Verde Ventures to make affordable credit available to coffee growers, which enables them to postpone selling their crops until the price is favorable. To date, Starbucks has loaned US$9.5M.

We hope Black Gold has inspired you to develop a greater sense of awareness about the complex issues facing the coffee industry. For more information on Starbucks and how we buy coffee, please visit www.starbucks.com/aboutus/csr.
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Viewers’ Stats by the Northwest Film Forum

The theatre seats 120 people and there were 137 people in attendance
Over 80% of the audience stayed for the panel discussion

69 audience surveys turned in
89% of those surveyed said they learned more at the event. That is above average for Community Cinema this season

16% of the audience identified as being a member of or affiliated with Fair Trade Puget Sound

63% of the audience rated the discussion as good or very good
52% of the audience said the event made them want to get more involved locally.
Both those numbers are consistent with previous Community Cinema events this season.

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** Melissa Noelle Green has previously moderated the discussion following the sold out HIP HOP: BEYOND BEATS & RHYMES Community Cinema event in January, 2007.