Category Archives: coffee shops

Starbucks Launches 10th Global Responsibility Report

On April 18, 2011 Starbucks Coffee Company has announced the launch of its tenth annual Global Responsibility Report, which outlines fiscal 2010 performance in ethical sourcing, environmental stewardship and community involvement. The interactive report is now available online at www.starbuck.com/2010report

“Our ten years of reporting demonstrates not only commitment to global responsibility, but also to transparency in our business practices,” said Vivek Varma, Starbucks executive vice president of Public Affairs.

The report shows that Starbucks has made significant strides towards the bold goals it set in 2008. In particular, Starbucks exceeded its goals in the following areas:

  • Renewable Energy: Starbucks reached its goal to purchase renewable energy equivalent to half of the electricity used in its North American company-owned stores, by purchasing 58% in 2010; and has been named by the U.S. Environmental Protection Agency as the fourth-largest purchaser of renewable energy in the U.S. The company is raising its sights with a new goal to make 100% of the electricity used in global company-owned stores renewable energy equivalent by 2015.
  • Youth Action Grants: Starbucks exceeded its 2015 community goal to engage 50,000 young people in community activities by engaging more than 53,600 in 2010.

“Starbucks has made significant and meaningful improvements in key areas, and recognizes the need for greater innovation, customer engagement, and policy leadership,” said Ben Packard, Starbucks vice president of Global Responsibility. “We will continue to set new performance standards, reach our ambitious goals and sharpen our focus on areas of greatest impact in communities and the environment.”

In 2010 Starbucks demonstrated progress toward reaching its long term coffee purchasing goals, bringing the company closer to achieving its long-term goal of purchasing 100 percent responsibly grown and ethically traded coffee by 2015.

The company made advances in three key areas:

  • Coffee Purchasing: Increased purchases of coffee sourced under C.A.F.E. Practices from 81% to 84% in 2010.
  • Farmer Support: Provided $14.6 million to organizations that make loans to coffee farmers, nearing its goal of $20 million by 2015.
  • Forest Carbon Programs: Expanded pilots in coffee-growing communities in Chiapas, Mexico and Sumatra, Indonesia through Starbucks partnership with Conservation International to demonstrate how coffee farmers can adapt to and be a solution to addressing climate change while increasing their incomes.

Starbucks also made meaningful improvements in 2010 toward reaching its goals related to renewable energy purchases, recycling, water conservation, and green building. Starbucks is currently on track to reach goals in a number of key areas including:

  • Recyclable Cup Solution: Making progress to develop comprehensive recycling solutions for its paper and plastic cups by 2012 by testing recyclability of cups in a New York pilot.
  • Water Conservation: Reduced water consumption by 21.6% over 2008 levels, nearing the goal 25% reduction.
  • LEED® Certified Stores: Completed pilot phase for the U.S. Green Building Council’s LEED® Volume Certification pilot program. It is the company’s goal to build all new, company-owned stores to achieve LEED® certification beginning in December 2010.

Although much progress has been made, the company still faces challenges in progress against some goals, and is working to achieve them:

  • Community Service: Starbucks partners and customer around the world contributed more than 191,000 hours of community service in 2010. Although this is well short of the company’s 2015 goal of generating one million hours, Starbucks has put new structures in place to improve in 2011, and is dedicating April as a global month of community service in celebration of the company’s 40th anniversary.
  • Front-of-Store Recycling: Starbucks continues to support local market testing and implementation to accelerate future front-of-store recycling.
  • Reusable Cups: Although Starbucks served 6.4 million more beverages in reusable cups in 2010 than 2009, there is a need for considerable innovation and customer engagement to reach the 2015 goal of 25% of beverages made in reusable cups. Starbucks is working to increase awareness by offering a free cup of brewed coffee or tea at participating Starbucks in the U.S. and Canada to customers who bring in a reusable tumbler on Earth Day 2011.
  • Energy Conservation: Starbucks did not achieve its goal to reduce energy consumption by 25% in company-owned stores by 2010. The company is now planning to achieve this goal for 25% energy reduction in 2015. (Source: Businesswire)

Sustainable Coffee: what is it and is it really profitable?

Sustainability in the Retail & Ho.Re.Ca Business, what our ECOFFEE project is about, is based on a main concept: communication to consumers and customers must be clear and simple to make them better understand what are the added values of buying/consuming sustainable products.

For instance, let’s talk about Fairtrade, organic, Rain Forest Alliance or UTZ certified coffee. These are some of the labels with which coffee is traded nowadays and consumers can be quite confused by this abundance of sometimes not well explained terms. 

Among the many information source we always refer to when asked “What is sustainable coffee about?” we found that the Imbibe magazine one is the most consumer-friendly one, covering all main aspects of sustainability in the coffee business.

The other well known issue to our blog readers is “Is it really worth investing in sustainable coffee?”. Commodity traders know the answer, and this is “Yes, of course”. A recent publication by Intracen organization (International Trade Center), shows that “Demand for conventional (i.e. non-certified) coffee is largely stagnant in these markets, whilst it is thriving in emerging markets. Certified coffee, however, is showing strong growth and higher retail prices, particularly in mature markets. This trend is also followed by other commodities, including tea, cocoa and cotton. A new industry of inspectors and technicians has emerged to service the sustainability segment of the market”. 

Paperless Cafés

Getting green while following technology? Sure! Many Cafés are now offering digital newsstand, which are both green and modern, providing people with paper-free updated news at no cost. Here you can find two examples. The big corporation one, Starbucks, and a small Café in Croatia. 

The Starbucks Digital Network has debuted their exclusive content network to further enhance the customer’s in-store experience. Customers who use the free Wi-Fi at more than 6,800 U.S. Starbucks locations will be greeted with the Starbucks Digital Network. As a channel where consumers will be plugged into a variety of reading sections like news, entertainment and business, this Starbucks Digital Network will keep readers engaged and going back to the famous coffee house for more access

On the other side of the Ocean, the Box Coffee Shop in Split, Croatia is replacing its offer of free newspapers with iPads. While each tablet is free to use, there is a security tag to alert baristas of any theft.
The idea is the same, the scale is a little bit different, but what is important is that the message must be clear: less paper, more green. (Credits: Trendhunter)

A consumer point of view on sustainable coffee

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Food Retailers sometimes wonder why consumers should have to prefer organic, sustainable coffee instead of the more “known and traditional” brands. We found this interesting article written by Johnathon D. Colman, a coffee snob, who explaines why he chooses sustainable coffee, and it can be summerized with his sentence: life is too short to drink bad caffeine!

Here are some other tips suggested by the Playgreen blog:

  • Look for Organically Grown Coffee
  • Buy Fair Trade Certified Coffee
  • Purchase ‘Shade Grown’ Coffee
  • Buy Locally Grown Coffee 

We think these are all greats article to show to all Food Retailers who are not yet sure that the key to future success in this business is.

What a sustainable Coffee retailer can do? Climbing mountains!

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This is quite an interesting story that shows you a great way for raising awareness about climate change and global warming. Ishand Natalie, the national beverage manager for Woolworths Café and TriBeCa Coffee Roasting Company  is a member of a team from Woolworths and that was expected to summit the 5 895m Uhuru Peak (Tanzania) today. The expedition is set to arise the awareness on the effect that the mountain’s melting ice is having on coffee farmers in Tanzania, who grow the organic coffee that Woolworths sells in its cafés (courtesy of IOL lifestyle)

Sometimes when we drink our morning coffee cup we are not aware of all universe that is in that cup – luckily there are companies and people who are starting to spread the word of sustainability and responsibility also in the Coffee Retail market.

When marketing and sustainability strategies are not aligned: the new trend among USA Food Retailers

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We are just reporting the new trend among USA Food Retailers as in AzCentral.com.

“Phoenix-area coffee junkies who have grown immune to Starbucks' maximum 24-ounce jolt now can boost their caffeine intake by 30 percent without loading up on extra shots. About 280 Starbucks locations in the Phoenix area are now serving the new Trenta (Italian for 30) drinks and report they are catching on quickly….. Competitors McDonald's and Dunkin' Donuts already offer 32-ounce iced coffee and tea drinks. McDonald's, an increasingly aggressive competitor of Starbucks, sells a 32-ounce iced sweet-tea drink for $1”

All comments are more than welcomed!