It looks like it is not just small independent retailers that are suffering from the recession, as Starbucks introduce new measures to raise their profile and claw back some of their losses, by making all
their lattes, cappuccinos and mochas sold in Britain, Fairtrade.
The American chain, who own 700 outlets throughout Britain and Ireland, have pledged that all of the espresso-based drinks will be brewed from coffee beans produced by farmers who have received a
fair rate of pay by the end of next year.
The Fairtrade Foundation - a company based in London which heads the development movement - have advised that those benefiting from the proposed plan include over 100,000 farmers across Latin American, Asia and Africa.
Growers receiving Fairtrade levels of pay are guaranteed a minimum of $1.25 (82p) for each pound of green beans in addition to a “social premium” of 10 US cents per pound, to contribute towards community projects like generating new schools and improving hospital facilities.
Currently only 6% per cent of Starbucks coffee sold worldwide is Fairtrade, however when they implement the proposed plan they will emerge as the largest buyer of Fairtrade coffee in the world, with global purchases doubling up to 40 million pounds in 2009.
Starbucks executives hope the move will generate more sales in the UK, after a dip in profits following stiff competition from rivals such as Costa Coffee and Caffé Nero, as well as other food and beverage outlets including McDonald’s and Wetherspoon.
Their biggest competitor, Costa Coffee, currently owns 821 outlets throughout the UK and in another PR move, last month delclared a section of their bean supply would come from farms approved by the Rainforest Alliance, which helps improve environmental and labour standards.
Yesterday, chairman and chief executive of Starbucks, Howard Schultz visited London and announced that the store was striving to be unique from competitors by providing more help to impoverished farmers.”We’ve done something that’s far beyond what any coffee company in the UK has ever done before,” he said.
“This is a long-term commitment and will not only benefit our farmers, but will give our customers the assurance that the coffee they’re buying in Starbucks in terms of espresso-based beverages is at a price that will allow sustainability for those people who need it most.”
He also added that customers should not think of the move as a gimmick or PR stunt as the long term plan was to eventually go Fairtrade worldwide. When questioned about whether he would mirror the UK and Ireland plans globally he said, “The goal is to do exactly that. But things like that take a long time in terms of creating a long-term supply chain operation.
“This is not a small task, but our goal is certainly to integrate as much Fairtrade coffee in all of our operations well beyond our announcement today.”
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