Club Starbucks
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Starbucks opened its first store in Seattle, Washington in 1971. Since then, the company has become so engrained in the city’s culture and identity that many have begun to refer to the city as Starbucks Seattle. Indeed, with one of the highest density per block of outlets in the world, the moniker Starbucks Seattle has some merit.
However, not everyone is pleased about the phenomenon of Starbucks Seattle or the rapid global growth of the company, leading the charge in the process of globalization. That was never more evident as it was in November, 1999, when Starbucks Seattle played host to the ministerial meeting of the World Trade Organization. Here, major governments of roughly 140 countries came to meet to discuss various crucial trading rules that govern the global system.
Before any meetings even got under way, demonstrations throughout Starbucks Seattle began to be held. And, it wasn’t just the WTO that was under attack; it was Starbucks itself. The company that had lent itself to the name Starbucks Seattle and that had come to be so identified with the city itself, Starbucks found itself at the forefront of protests in the debate surrounding globalization and cultural imperialism.
In one single day, protestors took out their anger in what they saw as the global corporate takeover on nine Starbucks stores throughout Starbucks Seattle. They broke windows, put glue in locks, and spray-painted the walls of the stores with an encircled ‘A’, a symbol for anarchy.
On that day, Starbucks Seattle was under attack. Both the company and the city that had fostered its growth found themselves at the forefront of a targeted campaign by protestors against the phenomenon of globalization and its argued negative effects on workers, the environment and the poor.
In 2002, Starbucks Seattle again found itself on shaky ground, or rather Starbucks CEO Howard Schultz found himself at odds with the people of his hometown. As the main owner of the Sonics, the city’s professional basketball team, Schultz was proud of his team and became one of the most visible cheerleaders. However, when Schultz began to complain that his team should be receiving subsidies from the city Seattleites then began to turn on him. When the Sonics were later sold to a group from Oklahoma, the city no longer knew if it wanted to be called Starbucks Seattle.
Despite the criticism that the company has come under, its presence in the city has remained formidable. Today, Starbucks Seattle continues to represent wealth and espouse the ideals of free market enterprise. Indeed, two of the world’s most famous billionaires, Microsoft co-founder Bill Gates and Starbucks CEO Howard Schultz, continue to call Starbucks Seattle their home.
Some observers prefer to label the phenomenon ‘Latte Land’ instead of Starbucks Seattle. However, either title points to the tremendous impact the company has had on the city. Indeed, with less than 20 percent of the number of residents of Phoenix but at least twice as many Starbucks coffee shops, there can be no doubt that the company remains ingrained in the city’s identity.
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How much is that morning jolt of caffeine worth? How badly do you need to satisfy your sweet tooth? Is there a price that can be put on your health? The Centre for Science in the Public Interest says that the number of calories Starbucks drinks contain can lead to obesity and heart disease. They are now asking consumers the question, is it worth it?
The amount of calories Starbucks drinks contain is indeed something that might shock most of the Seattle-based coffee giant’s loyal customers. For instance, a venti banana mocha frappuccino with whipped cream has about 720 calories and 11 grams of fat. That is more calories and the same fat content as can be found in a McDonald’s Big Mac.
In response to the fear that the company could become the next major target of a consumer health campaign, executives are saying that they are in the process of researching ways to reduce the amount of calories Starbucks drinks contain. In the meantime, their addicted consumers unknowingly continue to drink up their calories by the hundreds.
The Starbucks Workers Union – a division of the Industrial Workers of the World – echoed the statements of the CSPI. It went even further in suggesting that the total calories Starbucks drinks have in them can also lead to an increased risk of cancer. “Regular consumers of Starbucks products could face Venti-sized health problems,” says CSPI Executive Director Michael Jacobson. “If Starbucks cared about its customers’ health, it would at least list on the menu board the calorie content of its offerings.”
The number of calories Starbucks White Mocha contains is 510, but this isn’t the type of information you would be able to find in any of their stores. The company’s official website does indeed list the amount of calories Starbucks drinks contain, but public health groups want this information displayed on the menus in each and every retail outlet.
These consumer groups are also becoming concerned with the company’s indirect marketing to children, suggesting that the calories Starbucks drinks hold could be extremely damaging to their overall health. Starbucks’ written policy states, “Overall marketing, advertising and event sponsorship efforts are not directed at children or youth.” However, when the company begins sponsoring family-oriented events, like a day with free Starbucks drinks at the Phoenix Zoo, critics begin to question their corporate strategy.
The increasing sweetness of drinks such as its Frappuccinos hides the calories Starbucks drinks actually have and makes children especially susceptible the associated health problems. Company executives now say that the number of calories Starbucks drinks contain has been reduced in some cases, such as with the light Frappuccino, or their new line of juices.
Michael Coles, president of Minneapolis-based Caribou Coffee Co., defends the larger coffee giant, suggesting that the calories Starbucks drinks contain are not as serious a problem as it is often made out to be, especially for kids. “Better they should get hooked on an ice-blended beverage than maybe something else,” she says.
What does a lawsuit over corporate fraud have in common with conspiracy theories about the wireless future? At the bottom of both is nothing more than a simple Starbucks coupon.
On August 23, 2006, a Starbucks coupon for a free large iced drink was emailed to selected employees with directions for it to also be forwarded to family and friends. However, once corporate executives saw how widely this Starbucks coupon had been distributed in just the first week – “beyond the original intent” in the company’s words – it was recalled. Thousands of coffee lovers were left out to dry with their Starbucks coupon in hand.
One employee in particular, 23-year-old Kelly Coakley, felt betrayed that her Starbucks coupon was not honoured. Instead of just letting it go, Coakley hired attorney Peter Sullivan and together, the two file a lawsuit against the Seattle-based giant in the New York Supreme Court. Coakley is demanding $114 million in damages for consumers who had their Starbucks coupon rejected. He is also seeking class action status.
“Starbucks should account to the thousands of consumers who relied upon the advertisement, went out of their way to stop by a Starbucks and ended up being charged $3 for coffee,” said Sullivan. He also claims that company executives should have known and expected how quickly a Starbucks coupon would have been spread with the single click of a send button.
The impact of a Starbucks coupon doesn’t stop there. The company has landed itself right in the middle of a conspiracy theorist’s playground. Rumours of a wireless Starbucks coupon first began appearing as far back as 1999, when Business Week did a story on “Smart Phones”.
The scenario is as follows: You’re walking down a block that has a Starbucks outlet. All of a sudden, your cell phone beeps; you have received a virtual Starbucks coupon, which entitles you to $1 off your next cup of coffee at your nearest retailer. Handily enough, as soon as you look up from your phone, you see that familiar Starbucks logo.
The issue is not so much do you or don’t you go into the store to use your new Starbucks coupon. Rather, the wireless Starbucks coupon has sparked a fierce debate about privacy issues. Will cell phones eventually just become miniature tracking devices? Could this location-based advertising become a monitoring tool for governments? Is a $1 off Starbucks coupon worth someone – and, soon everyone – knowing your location at all times? A senior Starbucks VP has said that as of yet there are no plans in the works to produce a wireless Starbucks coupon. However, it has nonetheless become a contentious issue with respect to the direction in which wireless technology is headed.
From within the walls of the New York Supreme Court to on the city streets across the country, people are talking. They are beginning to change the way they see advertising campaigns. How far can you take corporate accountability? How intrusive should companies have the right to be? These are big questions for a little Starbucks coupon.
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Say the name Starbucks and the first thing most people will think of is coffee. However, many industry analysts argued it was that very fact that was one of the major obstacles standing in the way of CEO Howard Schultz’s dream to create the most recognizable and respected brand in the world. How was Schultz ever going to be able to capture the coffee market in China, a country of tea drinkers, or Japan or Taiwan, they asked?
Schultz’s reply came in the form of Starbucks tea. In 1998, Schultz approached the new-age tea company, Tazo Tea Company, with the idea of creating a partnership. Schultz wanted to create a Starbucks tea, particularly to help his company break into the Asian market. In 1999, Starbucks wound up purchasing the Tazo Tea Company outright for $8.1 million and set about manufacturing a unique line of Starbucks tea.
Today, Starbucks has created its very own line of Starbucks tea. Its line of products includes a wide range of black teas, herbal teas and green teas. From Tazo Chai and African Red Bush filter bag teas, to Montage and Mambo full leaf teas, to Lemon Green and Giant Peach iced teas, there is now a Starbucks tea available for every taste.
In the nearby tea-drinking country of Japan, Starbucks tea became a huge success when it was introduced into the market in the summer of 2005. The Starbucks Green Tea was particularly popular, which convinced company executives that Starbucks tea should be sold in their stores around the world. “We know if something is successful with the Japanese, it will definitely be popular elsewhere,” says Christine Day, president of the Asia-Pacific region for Starbucks. Today, the company’s 600 stores throughout Japan, which all sell varieties of Starbucks tea, are raking in sales of over $565 million.
While Schultz knew that offering Starbucks tea on the menu board would indeed help him break into the Asian market, he didn’t want to stray too far from his coffee roots. Yes, he wanted to expand into China, but he wanted to do so not just with Starbucks tea, but also with the ride range of coffee drinks that the company is famous for throughout the rest of the world. In essence, Schultz wanted to convert a nation of tea drinkers into coffee addicts.
Starbucks first entered the Chinese market in 1999, and it now has over 120 stores throughout mainland China and close to 200 in Hong Kong and Taiwan. These Asian-based outlets now serve just three or four varieties of Starbucks tea, in addition to its vast coffee choices.
“Executives didn’t think the coffee part stood in their way,” writes the Wall Street Journal about Starbucks’ Asian expansion. Indeed, as president of Starbucks Greater China Wang Jinlong says, “Coffee represents the change.”
However, that is the great thing about the company, which has fueled its success thus far; whether you want Starbucks tea or coffee, the choice is available and it’s yours to make.
It’s a sweltering 30 degrees outside and you’re baking in the summer heat. Suddenly, you notice that beloved black and green siren logo that you have come to care for so dearly. Finally, Starbucks respite! You wander inside, order an ice-cold Frappuccino and plop down into one of their easy chairs. Ah, Frappuccino, you think to yourself – does a body good. But, does it?
Have you ever wondered just what exactly you’re drinking? Starbucks nutrition facts are not the most readily available of statistics. And, can you guess why?
The company has recently come under fire from nutrition groups and even its own workers unions for offering drinks that are high in calories, fat and sugar. While Starbucks nutrition facts can be found online, they are not something that the company is eager to discuss.
Published Starbucks nutrition facts would shock many of the company’s regular customers to be sure. Consider the following: the hugely popular Grande Latte contains 260 calories, the Grande White Mocha has 510 calories and 24 grams of fat, and the new summer Venti Banana Coconut Frappuccino contains 730 calories, 170 more than a McDonald’s Big Mac. In fact, the Center for Science in the Public Interest claims that drinking one large Frappuccino is the equivalent of consuming two Quarter Pounder burgers from McDonald’s. Considering the public scrutiny McDonald’s has undergone recently for its menu choices, these Starbucks nutrition facts have gone relatively under the radar.
The company’s food offerings don’t fair much better in terms of their nutritional content. Their popular Cranberry Bliss Bar contains 18 grams of fat, their Espresso Brownie has 21 grams of fat, and their Butterscotch Pecan Scone weighs in at 520 calories and 27 grams of fat. It is no wonder then that Starbucks nutrition facts aren’t on public display in stores. Would you still order your ‘light breakfast’ of a Grande Chai Latte and Blueberry Scone if you knew what it contained?
But, Starbucks nutrition facts aren’t all bad. With the option to order low fat milk, no whipped cream and a smaller size, not every drink is guaranteed to add to your waistline. The Caffe Americano has just 16 calories and the Cappuccino with low-fat milk has only 135 calories. The company also offers soy-based drinks, which can benefit your health. But, these are often not listed on the menu and require the customer to specifically ask for them. Thus, the important thing is to be aware as a consumer – know what your options are and know what you’re putting into your body.
Meanwhile, executives are keen on keeping the majority of these Starbucks nutrition facts under raps, since the company markets mainly to the health conscious consumer. With Starbucks workers unions charging that the company’s products increase the risk of heart disease, cancer and other illnesses linked to diet and obesity, the company is fearful of having its image tarnished.
Drinking a coffee should be a truly relaxing experience, one that adds to your well being instead of one that takes away. Know your Starbucks nutrition facts before you pay your next visit.
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