All around the world, millions of people start their busy days with a cup of coffee. It is a staple and often an addiction to those living in modern society. People rely on the miracle caffeinated drink to help through their day to day lives. With such a high demand for coffee, there is no surprise the industry is worth $100 billion dollars worldwide (businessinsider). Coffee is grown all around the world and many countries rely on the beloved bean as their main source of income. Following crude oil, coffee is the most desired product in the world (businessinsider). Lower class countries are typically the growers of the coffee bean, and the industrialized nations are the main consumers. Coffee shops are the fastest growing niche in the restaurant business (businessinsider). This is no surprise considering a Starbucks Coffee or Pete’s Coffee is on every corner. Brazil is the leading producer of the green coffee bean followed by Vietnam, Indonesia, Columbia and Ethiopia ("Coffee: World Markets and Trade). Taste characteristics such as flavor, acidity, body, and aroma distinguish various types of beans. (Castle, Timothy James). These characteristics are defined by the area the bean was grown as well as how it was processed. The two primary types of coffee produced are Arabica and Robusta. Around 100 million bags, or 76% of all coffee consumed, is roast and ground. Instant coffee is the next runner up with 31.1 million bags sold annually. Instant coffee is coffee in freeze-dried powder or spray dried powder Decaffeinated coffee is last landing in the single digit percentile of each country’s consumption of coffee (coffee exporters guide).
Origins
Ethiopia is the birth place of coffee. It was known as the ancient land of Abyssinia du...
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...adget Mr. Coffee. Through smart marketing tactics, Mr. Coffee continued to be the most popular selling coffee machine by selling over 40,000 units a day.
The year 1987 was the year of Starbucks and the start of the coffee industry’s revolution. Howard Schultz, owner of Il Giornale coffee shop, was a firm believer in selling not just coffee beans, but coffee drinks as well. He bought Starbucks for around 3.5 million dollars and changed all of his Il Giornale shops to Starbucks. Schultz was on a mission to spread Starbucks everywhere. A new shop was opened every day all over the United States and other countries. The new brand squashed Mom and Pop competition as well as other coffee shop brands. This huge expansion started in the early 1990s and continued into the 2000s. He focused on keeping the original values of selling whole coffee beans rather than pre-ground.
The story of Starbucks coffee history begins in Seattle in 1971 when the first Starbucks opened at Pike Place Market, which is Seattle's and the Nation's oldest Farmer's Market. At this time the company was a local coffee roasting facility. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began right away to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and the beginning of coffee history should be one year later when Schulz traveled through Italy. He got inspired by the Italian coffee bar tradition to serve fresh brewed Espresso and Cappuccino. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle, named Il Giornale. (Wilson)
The most important part of the cup of coffee, the coffee beans, is typically harvested from South America, mainly because of the fact that Starbucks uses Arabica beans (Weinberg 1), which is dependent on a temperate climate that exists on the majority of the continent. The country that provides the biggest market supply of coffee beans for Starbucks is Brazil ...
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turnaround. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment.
Entrepreneur Howard Schultz joined the company in 1982, and, after a trip to Milan, suggested that the company sell coffee and espresso drinks as well as beans. The owners rejected this idea, believing that getting into the beverage business would distract the company from its focus. To them, coffee was something to be prepared in the home. Certain there was much money to be made selling drinks to on-the-go Americans, Schultz started the Il Giornale coffee bar chain in 1985.
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.
Starbucks founder Howard Schultz made it a point that in order to create the best brew, the best coffee beans were required. Starbucks utilizes only the highest of quality beans for their coffee products, which requires them to carry out a rigorous quality control process. Coffee beans vary in complexity and taste depending on where they are grown. Essentially, the harsher the environment the coffee is grown the better the over all taste. “Robusta beans are popular among some cheaper coffee distributors because they are grown in a more stable and predictable environment resulting in a cheaper price and taste” (Onward 83). Robusta beans have been domesticated, meaning they are “deliberately planted, protected, cared for, and used by humans” (The Human Mosaic 267) Arabica coffee beans are grown on steep mountains in high climates or in dry lands with intense heat. This stress produces b...
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
Business was good, but it was not without its problems. There was the political upheaval in the Middle East, followed by further tension after then CEO Howard Schultz commented on growing anti-Semitism in the region. Their integrity came under fire when certain Non-Governmental Organizations (NGO's) accused them of purchasing coffee beans under questionable social and economic conditions. These situations, together with difficult economic times globally, meant that Starbucks was likely going to take a hit somewhere. Eventually, they shut down their Israeli operations altogether.
Advertisements are the key to gain business and promote a company’s product or services to its consumers. Starbucks is no exception. The coffee giant is “out there;” from television ads to it own line of entertainment.
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
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.
Addis Ababa, the capital city of Ethiopia in East Africa is populated with around three million people. The city is occupied by people from different regions of Ethiopia and has as many as 80 nationalities speaking 80 different languages. It is a place were a variety of different cultures meet and share one common belief, coffee ceremonies. The Ethiopian coffee ceremony is very important to the country itself. Ethiopia is the birthplace of coffee. In the tenth century, Ethiopian people are known to be the first to recognize the effect of coffee. “The mystic Sufi pilgrims of Islam spread coffee throughout the Middle East. From the Middle East these beans spread to Europe and then throughout their colonial empire including Indonesia and the Americas.”
Around 1910, an American chemist, G. Washington, created a more refined water-soluble powered coffee, which had a better taste and was marketed on a broad scale. It was the first time that instant coffee was mass produced owing to such a meaningful innovation of instant coffee and Washington's brand "Red E Coffee” dominated the instant coffee market in the United States for 30 years (Thomson, 2006).
When comes to Economic aspect, coffee is the second most traded product in the world after petroleum. As the country’s economy is dependent on agriculture, which accounts for about 45 percent of the GDP, 90 percent of exports and 80 percent of total employment, coffee is one of the most important commodities to the Ethiopian economy. It has always been the country’s most important cash crop and largest export commodity. (Zelalem Tesera p