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Starbucks Set to Open Ethiopian Support Centre


By Tsegaye Tadesse

November 28, 2007

ADDIS ABABA (Reuters) - Starbucks said on Wednesday it would open a support centre for coffee farmers in Ethiopia, which earlier this year clashed with the company over a bid to trademark its coffee beans.

The world's largest coffee shop chain said it would open the centre in Addis Ababa, Ethiopia's capital, in 2008. The announcement was made in conjunction with a trip to Ethiopia by Starbucks Chairman Howard Schultz.

"The facility, the first in Africa, will enable Starbucks to work collaboratively with Ethiopian farmers to raise both the quality and production of the country's high-quality specialty coffees," Schultz said at a joint press conference with Prime Minister Meles Zenawi.

The centre "will provide resources and ongoing support to coffee communities with the goal of improving coffee quality and growing practices," Schultz added.

Starbucks said it is also in talks with an Ethiopian apparel factory to manufacture the black aprons worn by about 27,000 of its staff.

Earlier this year, Starbucks was accused by Ethiopia and aid agency Oxfam of attempting to block the African nation from obtaining trademarks for its best-known beans -- Sidamo and Harrar.

In June, however, Starbucks and the Ethiopian government reached an agreement that allowed the coffee shop chain to use and promote the Harrar, Sidamo and Yirgacheffe coffee designations in markets where trademarks exist, as well as where they don't.

Meles said the meeting with Schultz, who founded the world's largest coffee shop chain, has opened a new chapter for Ethiopia's coffee industry.

"Disagreement is behind us, the decision by Starbucks in favour of Ethiopia recognizing the property rights of the Ethiopian coffee industry is unprecedented," Meles said. "The farmers' support centre which Starbucks plan to open in Addis Ababa will have tremendous impact on 15 million Ethiopians dependent on the coffee business."

Schultz said between 2002 and 2006 Starbucks increased its Ethiopian coffee purchases by nearly 400 percent. Today, Ethiopian coffee can be found in nearly all of Starbucks roughly 10,700 U.S. stores.

Schultz affirmed Starbucks' commitment to making Ethiopia a leading force in the global specialty coffee marketplace.

"We will be working closely with Starbucks to bring badly needed investment and technology to our coffee industry, as well as brand recognition and promotion for our high-grade Arabica beans," Meles said in a statement.

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(Reporting by Nichola Groom; Editing by Brian Moss and Gerald E. McCormick)

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