Promised to use only local coffee beans but went back on Starbucks drew protests from Colombian growers.
In Colombia, Starbucks is facing protests from local coffee growers. In July 2014, Starbucks opened its first store in the Columbia region and promised to offer only Colombian coffee with its freshly brewed coffee products.
But so far, Starbucks hasn't done that yet. The flagship store in the Colombian capital Bogota serves not only coffee beans produced in Colombia, but also coffee beans from Guatemala, Kenya, Panama and Hawaii. This is very disappointing to local growers.
Starbucks has long been one of the biggest buyers of Colombian coffee beans, importing Colombian coffee beans for more than 40 years.
"they came here and made a promise, but they didn't keep it." Oscar Gutierrez, a local coffee grower lobby in Colombia, told Bloomberg. "it's not good for the Colombian economy. They sell other coffee beans here and the profits go back to the companies themselves."
Colombia is famous all over the world for its high quality Arabica coffee beans (Arabica coffee bean). But Colombians themselves do not like coffee, with an average Colombian consuming only 1.5 kilograms of coffee a year, according to Euromonitor, an international consulting firm. By comparison, each Brazilian consumes six kilograms of coffee a year. The average American consumes about 4 kilograms a year.
In 2013, Starbucks announced its entry into the Colombian market and plans to open 50 new stores within the next five years, when Starbucks promised to use only locally grown coffee beans.
Alisha Damodaran, Starbucks' global brand liaison, told Bloomberg that in Colombia, Starbucks will use locally produced coffee beans for its cappuccino, Italian concentrate, cappuccino and other drinks. Colombia and India are the only countries in the world where Starbucks has made such a commitment. "this means that the espresso you drink in these countries will be locally produced."
This is good news for Colombian coffee bean growers. In recent years, coffee growers in the country have experienced not only insect attacks, but also price fluctuations from the international coffee bean market. In 2013, due to a sharp drop in prices in the global coffee market, local growers called for government subsidies and not only blocked highways, but also clashed with police. At the time, Colombian growers believed that the arrival of Starbucks would lead to an increase in sales of coffee beans and help cultivate the habits of domestic consumers for high-quality coffee. But now, if Starbucks sells foreign coffee beans in Colombia, that will further depress sales for growers.
As the production environment in Brazil has improved, the price of Arabica coffee beans, which is also the main variety produced and exported in Colombia, has fallen by 32% in the past six months.
For business reasons, Starbucks seems to have a reason to choose cheaper ingredients in other regions, but falling coffee prices have affected the business of Colombian growers. Some Colombian grower groups plan to consult with the government on March 9 in the hope of gaining support.
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