Jan 05, 2012
Starbucks Corporation announced today the
release of a limited supply of Organic Ethiopia Sidamo® Coffee, for a short time starting January 10, 2012.
This is the third year when
Starbucks featured limited supplies of Ethiopian coffee since the trademark
dispute with the government of Ethiopia ended in 2007. In 2010, the company featured Limu® and then Harar® in summer 2011, all in select
stores.
The current offering of Ethiopia Sidamo® appears to be more of a showcase for the company's new Quick Response (QR)
code that it introduces for the first time.
A QR code is a type of matrix
barcode that was first created by Denso Wave, a subsidiary of Toyota,
in 1994 to track vehicles during the manufacturing process. The tracking system,
one of the most popular types of two-dimensional barcodes, is gaining
popularity outside the automotive industry in the U.S., Canada, and China.
In 2010, Starbucks said, the
company – along with other coffee companies – was experiencing a temporary
shortage of Ethiopian coffees due to supply issues.
The problems created in the coffee sector when the Ethiopia Commodity Exchange (ECX) took control of the flow and prices of the country's coffee exports was felt across the Specialty coffee subsector. Ethiopia's role as the supplier of the world's finest single-origin coffees has also diminished in recent years.
Seizing the opportunity created when
ECX disrupted the direct trade business model that connects smallholder coffee farmers
and Specialty coffee buyers, Starbucks began a pilot program in 2010 to test
the use of a QR code to trace coffee
bags from origin through the ECX warehouses to company stores.
If it succeeds, the new tracking system will most likely boost the company's competitive edge over its competitors,
particularly the small and medium-sized Specialty coffee roasters and
retailers.
According to the company's press
release, the price of a half pound of whole bean Organic Ethiopia Sidamo® to
make at home is $15/U.S. and $17/CAN. In-store, the price for a tall (12 fl.
oz.) cup of brewed coffee starts at $2.75/ U.S. and $3.25 /CAN for a cup
through the Clover® brewing system, a tall (12 fl. oz.) cup of brewed coffee.
At today's ECX trading session, the highest
price offered for Washed Sidamo® coffee (not Organic certified) was $2.32 per
pound.
The company did not disclose if the use of the new
system affected the stated retail prices or whether it will help Starbucks to increase its purchase
of Ethiopia's coffee.