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Starbucks Responds In Kind To Oxfam YouTube Video

Kligmond writes "Last week, Starbucks placed a video on YouTube responding to a video posted by the Oxfam Charity. The Oxfam video was launched in conjunction with 'Starbucks Day of Action,' held December 16th, when activists visited Starbucks locations across the world in protest of the coffee retailer's alleged mistreatment of Ethiopian farmers. The Starbucks video calmly addresses the Oxfam allegations, citing an impasse over Ethiopian trademark legalities. Starbucks claims the refusal to sign a trademark agreement with Ethiopia is a stumbling block they hope to resolve on behalf of the farmers. The coffee chain's representative goes on to refute the contention that Starbucks refuses to pay a fair price for its coffee reserves and, in fact, routinely pays well above commodity price, and above fair trade price. Unlike many recent ineffectual corporate reactions to social journalism and networking eruptions, Starbucks' response is unique in that the corporation managed Oxfam's unconventional assault in a very unconventional way, via YouTube. Regardless of the outcome of this particular incident, the move on Starbucks' part comes off as unmistakably in touch with today's communication modes and methods."

15 of 492 comments (clear)

  1. And me thinking it was Kara who posted... by thrill12 · · Score: 5, Funny

    ...a response...

    But why ? Does she crave for good coffee on the Battlestar ? Didn't the 12 colonies invest in fair trade coffee ? Why is she all of a sudden so sensitive about why Oxfam posted a youtube video anyway ?

    What new plot twist of BG do I not understand ?

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  2. In other words: Oxfam just got own3d! by Anonymous Coward · · Score: 5, Informative

    Next time do a little research Oxfam. Starbucks is one of the most socially responsible companies out there. They are pretty much why their is such a thing as "fair trade" coffee.

    And to all the people that say *bucks pushes out the mom and pops: when was the last time they offered carreers or health insurance?

    1. Re:In other words: Oxfam just got own3d! by Mr.+Slippery · · Score: 5, Insightful
      Starbucks is one of the most socially responsible companies out there. They are pretty much why their is such a thing as "fair trade" coffee.

      Starbucks is certainly quite successful at projecting an image of social responsiblity, yes - so much so that uninformed people like you believe that they created the fair trade movement, when actually Fair Trade is a decades old idea and Starbucks use of a tiny amout of Fair Trade coffee is just greenwash.

      While Starbucks is certainly not the Pure Concentrated Evil of, say, a Halliburton or a Monsanto, neither are they the angels that their PR department would like you to believe. That they seem to treat their direct employees fairly well, is no indication of what ethics apply (or don't apply) to their deals with suppliers.

      And to all the people that say *bucks pushes out the mom and pops: when was the last time they offered carreers or health insurance?

      Uh huh. So rather than owning one's own small business, being a successful entrepreneur, the new American dream is to work for a national franchise, so that you can get health insurance. How incredibly fscking sad is that?

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    2. Re:In other words: Oxfam just got own3d! by spun · · Score: 5, Interesting

      I don't understand why they do it. I know they know better. In fact, they used to roast to a "full city" roast, which the best gourmet roasters have always used, and which I prefer to lighter or darker roasts. They've since moved to a French roast, or even an Italian roast, which is too dark for me.

      More importantly, from what I understand, they don't do any real pre or post roast QA to remove clinkers, which are light, immature beans that give a grassy or off taste to coffee. They also don't date their roasts like a good gourmet shop will. As 90% of varietal flavor in coffee is gone two days after roasting, this is crucial to enjoying good coffee. When I go to my local roaster, who is an true coffee enthusiast like myself, I just say "Give me a half pound of whatever you just roasted."

      OTOH, they are a model of social repsonsibility, treating employees and suppliers well and giving back to the community through charity.

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  3. Re:News For Nerds How??!! by $RANDOMLUSER · · Score: 5, Insightful

    Beacuse this would be a new use of the technology, rather than "hippies in Seattle march with signs, corporation issues press release denying charges"?

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  4. So, you worked for Starbuck's, eh? by 0xdeadbeef · · Score: 5, Funny

    What's the freakin' deal with making up new words for small, medium, and large?

    1. Re:So, you worked for Starbuck's, eh? by angst_ridden_hipster · · Score: 5, Funny

      True story:

      So a certain anonymous individual went into a Starbuck's one morning, a bit cranky because he had to be up earlier than usual. He spoke to the individual at the cash register...

      Anon.: I'd like a medium chai, please.
      Register Person: Do you mean tall or grande?
      Anon.: I mean medium.
      Register Person: We don't sell a size called medium.
      Anon.: "Medium" is a description, not a name. You sell three sizes. I'd like the one in the middle.
      Register Person: We call that size "grande."
      Anon.: Right.
      Register Person: So what is it you'd like?
      Anon.: I'd like a medium chai, please.
      Register Person: You mean a "grande."
      Anon.: Haven't we already been through this?
      Register Person: I just would like to be certain.
      Anon.: You can be certain I'm not going to use your ridiculous trademarked name, when a descriptive adjective completely connotes my intent.
      Register Person: It's not a ridiculous name -- it's Italian!
      Anon.: Yes, and "chai" is either Chinese or Sanskrit. What's that got to do with it? The word I want in English is "medium."
      Register Person: Dude, what have you got against Italians?
      Anon.: Nothing. Well, perhaps they bear some responsibility for Madonna, but I think she's actually from New York.
      Register Person: Bay City, Michigan, actually. That'll be $3.50.

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    2. Re:So, you worked for Starbuck's, eh? by I'll+Provide+The+War · · Score: 5, Interesting
      Here is a very interesting story about the "short" cup at Starbucks.

      http://www.slate.com/id/2133754/

      Starbucks Economics
      Solving the mystery of the elusive "short" cappuccino.

      Here's a little secret that Starbucks doesn't want you to know: They will serve you a better, stronger cappuccino if you want one, and they will charge you less for it. Ask for it in any Starbucks and the barista will comply without batting an eye. The puzzle is to work out why.

      The drink in question is the elusive "short cappuccino"--at 8 ounces, a third smaller than the smallest size on the official menu... ..continues
  5. Re:News For Nerds How??!! by Run4yourlives · · Score: 5, Insightful

    I'm only responding because you were modded insightful:

    This is news for nerds not because of what is happening, but because of HOW it's happening.

    Not only is Oxfam going directly to the internet to mount a campaign against a corporation (in and of itself a cool thing - proving yet a gain the power of the internet), the corporation responded in kind.

    This type of one to one presentation of views has never happened before in such a powerful way. It could herald a new method of consumer/producer interaction, which of course may spill into political spheres. All because of the internet.

    It is proof that the internet is radically changing the face of our entire society, so much so that we are only on the cusp of realizing what may happen. Geeky enough for you now?

  6. Women by ch-chuck · · Score: 5, Funny

    I like my women like my coffee: expensive and easily available on many street corners.

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  7. Did a little research for those who care by drinkypoo · · Score: 5, Interesting

    And I do mean a little research... First, I watched both videos. The most notable thing is that neither Oxfam's video-mentioned webpage nor the video itself actually says what Starbucks is doing. They say that starbucks is preventing the manufacturers of this coffee from using the names of the coffee, but that's as close as they come to discussing the actual situation. I was however able to find the information on Oxfam's site using google: http://www.oxfam.org.uk/press/releases/starbucks26 1006.htm. Here's the meat:

    Last year the Ethiopian government filed applications to trademark its most famous coffee names, Sidamo, Harar and Yirgacheffe. Securing the rights to these names would enable Ethiopia to capture more value from the trade, by controlling their use in the market and thereby enabling farmers to receive a greater share of the retail price. Ethiopia's coffee industry and farmers could earn an estimated £47 million extra per year.

    £3.2 billion company Starbucks prompted protests against the applications to be filed with the US Patent and Trademark Office (USPTO). The USPTO has denied Ethiopia's applications for Sidamo and Harar, creating serious obstacles for its project.

    What, exactly, does "prompted protests" mean? It's a little further down.

    Starbucks intervened in the USPTO decision by prompting the National Coffee Association of USA, Inc. (NCA), of which it is a leading member, to oppose the approval of the trademarks.

    At a meeting held this past July at the Ethiopian Embassy, Embassy staff and advisers met with the NCA president to discuss a letter of protest filed against Ethiopia's trademark applications. Ethiopia had submitted its applications about one year earlier. According to staffers, when asked why after a year of doing nothing the NCA had decided to take action, the president of the NCA told them Starbucks had just brought it to the NCA's attention.

    Okay, so if Starbucks is part of the NCA, then they didn't prompt anything - they just did it.

    Let's take one more look at the press release.

    The Ethiopian government presented an agreement for Starbucks to sign in September, recognising the country's rights to the names Sidamo, Harar and Yirgacheffe and stating that additional benefits generated would go to small-scale coffee farmers who are currently living on the brink of survival. However, Starbucks has yet to respond affirmatively.

    "Starbucks works to protect and promote its own name and brand vigorously throughout the world, so how can it justify denying Ethiopia the right to do the same?" asked Phil Bloomer.

    Starbucks claims that to do so would be illegal, as far as I can see from their video. I don't know how that works out - maybe a lawyer can explain. But September? It's probably taken this long for their legal department to figure out what it says, let alone how they feel about it. We're talking about a document that would have legal repercussions in at least two countries, and possibly in every country in which Starbucks does business. I wouldn't sign the fucker either.

    Now let's take a look at some other documents I just googled up...

    http://www.coffee-tea-etc.com/coffee/faq

    The cost associated with coffee is only 15c/lb, which is less than half a penny per cup of coffee.

    There's about 25 16oz (coffeeshop standard) cups of coffee per roasted pound. Three cents per cup would be $0.75/lb. Starbucks claims they pay over the fair trade price, which is under a buck and a half per pound.

    http://www.theotherjournal.com/article.php?id=198

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  8. Re:How hard is it? by oni · · Score: 5, Insightful

    >> How hard is it to post something on Youtube, a free service?

    uh well, it's easy to post on youtube, but I think you're missing the point.

    Most big megacorps don't "get it" Their decision making process involves things like lawyers who always fail on the side of caution. That's why, if you posts some completely made-up allegations about, for example Bank of America, then (if they even noticed what you had done) the Bank of America corporate execs would have a meeting in their conference room on the 400th floor of some far off building. They'd have to call in the CTO to explain to them exactly what this "ewe toob" thing was. Then the lawyers would caution against making any kind of direct rebuttal, because that might be seen as *insert lawyer-speak here*

    Meanwhile, Starbucks goes, "wtf, get a webcam we're going to respond to this bullshit"

    So you see, the point here isn't the ease or difficulty of youtube. The point is the that one corporation gets it and made a simple, common sense move.

    (btw, I hate Starbucks)

  9. Re:No Good for Starbucks by lostatredrock · · Score: 5, Insightful

    What does that have to do with anything? From the intro to your post I was expecting some refute to the claim that Starbucks pays higher than market value for their coffee. Instead you offered a bunch of proof of the fact that the average Ethiopian is poor. How is that Starbuck's fault? They are not responsible for the welfare of the Ethiopian people, they do appear to be trying to help, but to use the fact that Ethiopians are poor as 'proof' of Starbucks not being socially responsible seems to be a bit of a stretch.

  10. Why "fair trade" is a horrible concept by Anonymous Coward · · Score: 5, Interesting
    What about Fairtrade? Its aim is to address "the injustice of low prices" by guaranteeing that producers receive a fair price "however unfair the conventional market is", according to FLO International's website. In essence, it means paying producers an above-market "Fairtrade" price for their produce, provided they meet particular labour and production standards. In the case of coffee, for example, Fairtrade farmers receive a minimum of $1.26 per pound for their coffee, or $0.05 above the market price if it exceeds that floor. This premium is passed back to the producers to spend on development programmes. The market for Fairtrade products is much smaller than that for organic products, but is growing much faster: it increased by 37% to reach 1.1 billion ($1.4 billion) in 2005. Who could object to that?

    Economists, for a start. The standard economic argument against Fairtrade goes like this: the low price of commodities such as coffee is due to overproduction, and ought to be a signal to producers to switch to growing other crops. Paying a guaranteed Fairtrade premium--in effect, a subsidy--both prevents this signal from getting through and, by raising the average price paid for coffee, encourages more producers to enter the market. This then drives down the price of non-Fairtrade coffee even further, making non-Fairtrade farmers poorer. Fairtrade does not address the basic problem, argues Tim Harford, author of "The Undercover Economist" (2005), which is that too much coffee is being produced in the first place. Instead, it could even encourage more production.

    Mr Bretman of FLO International disagrees. In practice, he says, farmers cannot afford to diversify out of coffee when the price falls. Fairtrade producers can use the premiums they receive to make the necessary investments to diversify into other crops. But surely the price guarantee actually reduces the incentive to diversify?

    Another objection to Fairtrade is that certification is predicated on political assumptions about the best way to organise labour. In particular, for some commodities (including coffee) certification is available only to co-operatives of small producers, who are deemed to be most likely to give workers a fair deal when deciding how to spend the Fairtrade premium. Coffee plantations or large family firms cannot be certified. Mr Bretman says the rules vary from commodity to commodity, but are intended to ensure that the Fairtrade system helps those most in need. Yet limiting certification to co-ops means "missing out on helping the vast majority of farm workers, who work on plantations," says Mr Wille of the Rainforest Alliance, which certifies producers of all kinds.

    Guaranteeing a minimum price also means there is no incentive to improve quality, grumble coffee-drinkers, who find that the quality of Fairtrade brews varies widely. Again, the Rainforest Alliance does things differently. It does not guarantee a minimum price or offer a premium but provides training, advice and better access to credit. That consumers are often willing to pay more for a product with the RA logo on it is an added bonus, not the result of a formal subsidy scheme; such products must still fend for themselves in the marketplace. "We want farmers to have control of their own destinies, to learn to market their products in these competitive globalised markets, so they are not dependent on some NGO," says Mr Wille.

    But perhaps the most cogent objection to Fairtrade is that it is an inefficient way to get money to poor producers. Retailers add their own enormous mark-ups to Fairtrade products and mislead consumers into thinking that all of the premium they are paying is passed on. Mr Harford calculates that only 10% of the premium paid for Fairtrade coffee in a coffee bar trickles down to the producer. Fairtrade coffee, like the organic produce sold in supermarkets, is used by retailers as a means of identifying price-insensitive consumers who will pay more, he says.

    As with organic food, the Fairtrade movement is unde

  11. Re:News For Nerds How??!! by exp(pi*sqrt(163)) · · Score: 5, Funny
    I don't really see what this story has to do with news for nerds
    I'm going to get modded down for this but it's the honest truth and it's worth saying.

    Every culture and subculture has some form of 'machismo'. In the world at large, machismo mostly consists of its literal interpretation, ie. doing those things that you stereotypically associate with being male: ie. being physically fit, healthy and attractive, being able to bed large numbers of women, being able to tolerate large amounts of drink and so on. Nerds, on the other hand, are very poor at these things. But they still need some form of token machismo so they can show off to their peers. This manifests itself in a couple of different ways. The obvious one is showing off your technical ability, eg. by displaying arcane knowledge of poorly documented parts of your OS. And another is to show off your ability to tolerate caffeine. Just observe any group of nerds together and watch the endless stream of little geeky jokes displaying their insecurity about caffeine: "The day hasn't started until my fifth coffee", "I'm a machine to turn caffeine into code", "why would anyone drink decaf?", even clothing to show off ones's capability for caffeine intake. Nerds worry that if they don't make these little comments, their ability to tolerate caffeine will be doubted and they will be perceived as somehow inferior.

    And hence it's no surprise that Starbucks is an important part of geek culture.

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