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Showing posts from March 5, 2007

BREWING CONFLICT: Ethiopia Battles Starbucks Over Rights to Coffee Names

Chain's Image Rattled By Trademark Spat; Hints of Chocolate, Rum About a year ago, Starbucks’ lack of responsiveness to the Ethiopian government’s request to drop its application for Shirkina Sun-Dried Sidamo coffee and to discuss the licensing agreement was grating. Even after the dispute came to the public’s attention, the company has been dragging its feet and misleading the public. As the following report reveals, the company is still pursuing their intransigent actions by trying to persuade Ethiopia to buy into the company’s good-will. At the outset of the public campaign to pressure Starbucks to respect the Ethiopia’s farmers and come to the table to discuss the issue, some feared that Starbucks would stop buying coffee from Ethiopia, thereby hurting the farmers. Those familiar with the company’s behavior said, it was unlike Starbucks to seek revenge in public. Also, they argued, Starbucks is expanding and needs more of Ethiopia’s coffees to supply the thousands of stor...

Starbucks' "Farmer Inequity" In Sidamo

Starbucks’ officials have so far been successful in concealing the company's unfair business practices under the touted Coffee and Farmers Equity (CAFÉ) Practice - a PR tool which has given the wrong impression to consumers and shareholders that the company was doing its business in a “socially responsible” manner. In reality, while Starbucks scores record profits, the farmers are trapped in a vicious circle of poverty. Starbucks is mindful of its own profits with little regard to the people behind its brand. According to the the Wall Street Journal (subscription), Starbucks officials are satisfied with their relationship with the farmers and are thankful of the "gift": "I looked everyone in the eye and shook their hand and said, 'Thank you for giving us this wonderful product,'" recalls Dub Hay, the Starbucks executive. "It's one of the more special things I've ever experienced." In the report, “ Starbucks vs. Ethiopia ,” posted here...

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