...THE MARKET FOR ORGANIC AND FAIR-TRADE COFFEE Study prepared in the framework of FAO project GCP/RAF/404/GER “Increasing incomes and food security of small farmers in West and Central Africa through exports of organic and fair-trade tropical products” September 2009 The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views of FAO. All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission of the copyright holders. Applications for such permission should be addressed...
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...Critique of: The Coffee Crisis Abstract For years, coffee has been considered one of the most important crops widely grown in the developing world. Several countries’ economies, specifically countries in Central America and parts of Africa, are highly dependent on this crop as a source of both national income and export earnings. About 25 million people, most of whom are small-scale farmers, rely on coffee as their main source of income. For the past 15 years the coffee industry has experienced severe declines in prices that have impacted economic development in several international markets. This critique explores a case study released by the Kennedy School of Government at Harvard University written on the events and contributing factors leading up to the crisis. The Coffee Crisis Quinlan, Gomez-Ibanez, and Bok provided an in depth depiction of the coffee crisis that hit the nation in the early 2000s that covered the background of coffee production, the origins of the crisis, and alternative remedies (Quinlan, Gomez-Ibanez, & Bok, 2004). The crisis led to severe hardships for coffee growers living in poor countries already struggling with poverty. A reported 25 million farmers in Latin America, Africa and Asia rely on coffee as their main source of income (Quinlan, Gomez-Ibanez, & Bok, 2004). These farmers were forced to resort to extreme measures in attempts to overcome this crisis. Some had to remove their children from school and use them as...
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...largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. 1.1 BACKGROUND OF THE COMPANY 1.1.1 Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice in Touristy Pikes Place Market in Seattle. The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to sell high-quality coffee beans and equipment. The store did not offer fresh brewed coffee by the cup, but tasting samples were sometimes available. Siegel will wore a grocers apron, scooped out beans for customers while the other two kept their day jobs but came by at lunch or after work to help out...
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...Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2010, Richard Ivey School of Business Foundation Version: 2012-02-22 By 2009, Starbucks had achieved a global reach of almost 17,000 stores in 56 countries. The company had enjoyed tremendous growth over the previous two decades. Between 2007 and 2009, however, Starbucks’ relentless march had been slowed by three forces: increasingly intense competition, rising coffee bean prices and a global economic recession. To remain profitable, the company started to scale back its overseas operations. In 2010, as the world gradually emerged from the economic downturn and as prospects for growth improved, Starbucks was faced with a critical strategic decision: Should the company resume its international expansion and once again intensify its commitments in overseas markets? If so, what approach should the company take? Had the pace of Starbucks’ internationalization (i.e. the rate of opening new stores...
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...Coffee Supply and Demand Besides the high demand and cost for gasoline these days, coffee is considered the second most traded commodity on worldwide markets next to oil. "Coffee is grown in more than 50 countries in a band around the equator and provides a living for more than 20 million farmers. Altogether, up to 100 million people worldwide are involved in the growing, processing, trading and retailing of the product" (Spilling the Beans , ). In 2001, coffee farmers and plantations produced over 15 billion pounds of coffee while the world market only bought 13 billion pounds. The overproduction in the coffee industry is not a usual thing and is one of the major reasons why prices vary throughout the industry. One of the major corporations today that is trying to control a large portion of the supply of coffee is Starbuck. Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks purchases, roasts, and sells whole bean and rich-brewed coffees, espresso beverages, cold blended beverages, an assortment of food items, coffee-related accessories and equipment, a selection of quality teas and a line of compact discs. Starbucks has over 8,700 retail locations in North America, Latin America, Europe, the Middle East, the Pacific Rim and is continuing to grow. When coffee is considered Starbucks has developed a worldwide name for itself and has become a huge success. An article in the Seattle Post, describes the alliance that Starbucks...
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...“We aren’t in the coffee business, serving people. We are in the people business, serving coffee” Howard Schultz, Starbucks Chairman and Chief Global Strategist Fortune Magazine, Vol. 149 No. 2 Title: Submit To: Completed By: Starbucks: “The Non-Coffee Treat” P.V. Sundar Balakrishnan Matthew Carmean Partner Julie Anstett Partner Julia Toochette Partner Joel Ennis Partner Joey Eaton Partner Trang P. Huynh Partner Table of Contents TABLE OF CONTENTS...............................................................................................................................................................2 EXECUTIVE SUMMARY............................................................................................................................................................3 MANAGERIAL PROBLEM.........................................................................................................................................................4 SITUATION ANALYSIS...............................................................................................................................................................4 Company ................................................................................................................................................................................. .4 Customer .....................................................................................................................................
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...EXACTUTIVE SUMMARY This report was commissioned to find out a solution of Starbuck current losing dominant position in Coffee shop industry. The current issues were brought by 20 years phenomenal expansion, which is also the only way that a company must be passed. The report draws attention to both of the company’s internal control and external environmental changes. Further analyzed company’s current situation by SWOT analysis and Market Mix analysis. Also, the report make a conclusion of 3 other strong competitor of Starbucks’, from a view of special ability and distribution channel using similarity and difference comparison method. The report also evaluates Starbucks’ different type of targeted customers, and finding out differential way to promote them. Products and service quality and licensing issues, which are brought by fast expansion, should be taking concern by partners. In order to solve this problem and reduce financial risk at the same time, this report have provide 3 alternatives, “Make the company franchises growth rate slow down; take control of the quality first. Qualify the licensing retail stores and share operating experience between these stores. Continuing provide variety products” is recommended. 1. Problem Statement The Starbuck coffee shop has become one of an expending company in Canada. However, current marketing strategy cannot corporate the situation efficiently, the share price was decline sharply, the customer not...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...Strauss —Elite Contents Introduction 3 Strauss-Elite 4 Historical Background 5 1995-1998 International partnerships and domestic acquisitions 5 Partnerships 5 Acquisitions 6 1998-2001 Reorganization 7 2002-2004 A Shift in the Operating Model 8 Strauss-Elite's International Activities 8 Background: 9 Elite international in the 90s: Central and Eastern Europe 9 Strauss-Elite 1997-2001 9 2002 - 2004 10 Away From Home (AFH) 10 Brazil 11 Going forward: Global Trends 11 The Next Step: Beyond Coffee 12 Sabra Salads in the United States 12 Background 12 Market opportunity 13 Sabra 13 Entering the U.S market 13 Max Brenner 13 Background 14 The dilemma 14 Developing the concept 14 2005 and beyond 15 Appendixes 16 Background 19 Supply 19 Processing 19 Marketing 20 Distribution 20 Nestle 20 ICraft 21 Sara Lee 21 P&G 22 Tchibo 22 Lavazza 22 Segafredo 22 Global Expansion in the 21 Century In a conference room at the offices of Strauss-Elite in Ramiat Gan, we were introduced to the heart of the organisation by the CEO of the company, Erez Vigoodman. What we were given was a bird's eye view of the entire company as it stood at the end of 2005. It quickly became apparent that the organisation stood poised at a pivotal moment in its long history. In the eight years since the acquisition of Elite in 1997, the company has gone through nothing short of a revolution. Yet despite being transformed from end to...
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...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
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...Back in 2004, there was a significant decline in the price of coffee. This called for the gathering of the coffee producing nations to get together to determine their best course of action on how to handle this decline. A 40 year low hit the coffee industry in 2001 and continued to remain low since. That resulted in hardships for the farmers and their families, as most children were pulled from school so that they could help on the family farm. Some of the countries that were hit extremely hard created financial programs to help their farmers. Most coffee producing countries are not rich, as a result the financial programs were not able to be sustained for long. Basically there are two types of coffee, robusta and arabica. The difference is the type of flavor they have. According to the data, arabica coffee makes up about two-thirds of the total coffee produced. The coffee bean life cycle is quite long. It takes two years before a seedlings will produce fruit and then several more years before it reaches full maturity. Like most farming professions, the crop depends on that particular weather that year. The cause of the crisis is a long and distinguished list. There has been a steady price decline for the past 15 years. The consumption of coffee is barely keeping up with the growing world population. Over the last 15 years the average coffee consumption was around 4.6 kilos per person per year and in the US alone the 20% consumption saw a decline due to the...
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...COMPANY INFORMATION Name :: Green Mountain Coffee Roasters, Keurig Coffee Website :: www.greenmountaincoffee.com, www.gmcr.com, www.keurig.com Industry :: Processed & Packaged Goods- Coffee Makers BACKGROUND & HISTORY Green Mountain Coffee Roasters, Inc. (GMCR) was founded in 1981 as a small café and combined with Keurig in 2006 (About GMCR, 2004-2009). GMCR produces specialty coffee and coffee makers; Keurig is the maker of a single cup coffee maker as well as specialty teas and coffees. Keurig was founded in 1998 on the concept that one should be able to make coffee one cup at a time rather than one pot at a time (Coffee.org, unknown). Today, GMCR has acquired and merged with several specialty coffee brewers and Keurig licenses the patents for creating single cup, or K-cup, coffee packages including Dunkin Donuts and Starbucks coffee (Dess, Lumpkin, Eisner, & McNamara, 2012). SWOT ANALYSIS Strengths - Brand strength - Unique & large variety of products - Customer loyalty - Environmentally conscience, socially responsible - Innovative products and research - Strong growth potential - Product consistency Weaknesses - Not a strong online presence - Supplier dependence - Concentrated customer base - Single product line - Returns - Keurig defects - Capacity constraints Opportunities - Expanding to new markets - Collaborations - Increased purchases - Keurig Acquisition - Expansion to hotels and businesses - Expand suppliers Threats - Intense...
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...Presentations by an authorized administrator of DigitalCommons@Liberty University. For more information, please contact scholarlycommunication@liberty.edu. Lingley, R MGT7002-4 RUNNING HEAD: Lingley, R MGT7002-4 Marketing Strategy and Alliances Analysis of Starbucks Corporation Rebecca J. Lingley Larson NorthCentral University 1 Lingley, R MGT7002-4 Abstract The Starbucks Corporation significantly utilizes alliances to expand market reach, improve product image, and develop greater company profitability. Starbucks, due to their market position and attributes, applies a Differentiation Focus strategy as defined by Porter’s Generic Market Theory. A review of Starbucks Corporation’s marketing strategies and alliance strategies proves that the company is being highly successful within this market scope. 2 Lingley, R MGT7002-4 3 Starbucks Marketing Strategy and Alliance Analysis Introduction Introduction The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today...
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...known as the number one coffee store nationwide, and progressively doing so on an international level. Its first store was established in 1971 in Seattle, Washington. It became owned by Howard Schultz in 1987 with the help of local investors. Schultz was captivated by his first Starbucks visit in 1981. After his trip to Italy in 1983, where he was inspired by the coffee bars, he became motivated to become an influential part of the company. He wanted to bring back to Starbucks the romantic and comfortable feel he experienced at the Italian coffee bars and ultimately create a ‘third house’ experience. Schultz is currently the Chairman, President and Chief Executive Officer of the brand. Starbucks currently has over 15,500 stores in more than 50 countries. Starbucks headquarters are located in Seattle, Washington. Its expertise is coffee, and also carries a variety of products to satisfy the various needs of each customer. Products include foods, non-caffeine beverages, pastries, individual coffee bean packages, coffee utensils (mugs, holders, cups) and even music albums. Starbucks owns around 17,500 of its stores worldwide, with most of them being in the U.S. Approximately 78% of its store volume is found in beverages (coffee, smoothies, teas, lattes), 12% food (sandwiches, salads, Panini, wraps) and 5% whole beans (pre packed in different sizes). Its sales also mostly come from beverages, specifically coffee beverages, at 61%. The sale of coffee beans averages to about...
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...opened a store called Starbucks Coffee, Tea and Spice in the touristy Pikes Place Market in Seattle. Thus, there is a need to understand the market and industry processes of Starbucks and must be able to integrate valid and reliable SWOT analysis so as to determine future strategies for business development and growth in the global market. SWOT ANALYSIS Starbucks Corporation is a specialty coffee retailer, producing and selling a wide variety of hot and cold beverages, as well as pastries and confections, through 8500 coffee shops across 32 countries worldwide. The company recorded an increase in revenues and profits. It faces the threat of reduction in margins due to rising dairy costs. Strengths Global presence Starbucks has a widespread global presence. The company operates about 8500 retail store locations, the majority of which are company owned and operated across 32 countries worldwide. The company’s widespread presence provides it with widespread brand recognition and a strong customer base. A disciplined innovator Starbucks is a disciplined innovator. The company effectively manages its innovation time line generating consistency in same store sales. In fiscal 2002, the company introduced new Frappuccino Blended Beverages, and in 2003, the "Iced Shaken" refreshments product line was launched. In 2004, it introduced the new Frappuccino...
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