Thursday, August 29, 2013

Some Facts about Starbucks


Independent coffeehouse owners in the USA filed lawsuits against Starbucks Corporation, claiming the company, from its monopoly position in the coffee market, engages in a range of anti-competitive activities aimed at eliminating competition. Many people believe Starbucks has become such a dominating force in the coffeehouse segment, it has become a monopolist. It is clear that they swallowed mom-and-pop coffeehouses business in the USA. You also can say that they bring the coffee service level too high, those small operations wouldn’t compete with them. The line between monopoly and better business is very fine, but Starbucks uses anti-competitive steps to avoid fair competition. First of all they control the retail spaces. They make such agreements (contracts) with Real Estate firms and building owners to not possible to rent any other retail space other coffeehouse business. Which mean they blocked consumer demand in these locations. Another complain about Starbucks is in number of US cities Starbucks used predatory tactics for offers to buy out competitors at below-market price, and if offer is rejected, threatens to open stores nearby. For additional information regarding this suit, contact Hagens Berman Sobol Shapiro visit www.hbsslaw.com web site.



One of my good friend in Chicago, whom used to work in Starbucks as a barista, once told me; “Starbucks is new fashion candy store for grownups. We serve oversized sugary products”. My friends’ impression was totally right. They work for the problem of this century, Obesity. Can you imagine 16ounce (470 ml) whole milk Caffè Mocha with whipped cream is 370 calories, 19 grams of fat and 175mg of caffeine. Maple glazed scone is 440 calories and 18 grams of fat or apple fritter 420 calories and 20 grams of fat.  Of course Starbucks is not responsible to make healthy choice for their customers, but it is fact that they are hitting below. Nowadays they have nutrition fact information in their website, which I don’t know why, but I think they are trying to enact their candy store products.



There is no clear number, how much Colombian coffee use Starbucks at this moment. But they said they have been purchasing coffee from Colombian growers for 42 years, and they are entering into a partnership with the U.S. Agency for International Development to increase Colombian coffee yields and provide technical and agronomy support to Colombian farmers with a combined $3 million investment in the Starbucks Farmer Support Center in Manizales, Colombia. These words are too big to me to understand… I looked in the internet to find really how much Colombian Coffee Starbucks purchases or what is the really help Starbucks doing here in Colombia. Do you know what did I found??? NOTHING… So what help they will give to Colombian Coffee growers? They say they will roast their coffee in Medellin (in Colcafe) and serve in their store Colombian coffee roasted in Colombia. That is the obligation from Colombian Coffee Federation. If they would be able to do other way around I am sure that they would send from Seattle. Actually that is how they do in their store all around the world. Roasting Colombian coffee in Colombia sound is good…But…



Let’s take a look at what kind of products they have in Starbucks retail stores?

Beside of bag of international coffees, bag of instant coffees, espresso drinks, iced coffee drinks and regular coffee drinks Starbucks store has; tea, juice, chocolate, smoothies, Starbucks refrehers beverages, sandwiches, Panini, salads, baked goods, yogurt, fruit, ice cream, merchandise, even in some locations beer and wine.

As you can see Starbucks is promising to sell Colombian coffee only in brew coffee. What about the other international coffees they will bring to Colombian land? They have over 40 different types of coffee from all around the world different then Colombian; it is published in their web site. So this is the way they would like to help to Colombian coffee growers?



I am not against to Starbucks, I always thought that they gave somehow a planch to coffee business in the USA. But when you say “we accepted Starbucks to Colombia because we believe they will help coffee business here in Colombia” have to see behind the picture. Therefor I would like to give piece of my mind in order to you don’t get surprise in the future.