At first glance, it makes sense for customers to believe that Starbucks owns Caribou Coffee. After all, Starbucks is undoubtedly the most recognizable name in the coffee industry, and Caribou Coffee is a smaller competitor. However, Starbucks does not currently own Caribou Coffee, but the two companies have had a complicated relationship in the past.
Caribou Coffee was founded in 1992 in Minnesota and quickly grew to become one of the top coffee companies in the United States. The company had more than 1,000 locations at its peak, but struggled to find a way to stand out in a sea of similar coffee shops.
In 2012, Starbucks made an offer to purchase Caribou Coffee, but the deal didn’t work out. Caribou Coffee was then sold to an investor group for an undisclosed amount. This allowed the company to maintain its identity as a separate entity from Starbucks. Since then, Caribou Coffee has been working hard to differentiate itself from Starbucks and reestablish its brand.
Due to their similarities, it’s easy to understand why some customers might still mistake Caribou Coffee for Starbucks. While both are serving up a variety of flavorful coffees and espresso drinks, they have some significant differences. For example, Caribou Coffee focuses on sustainability and works with community programs to help preserve the environment. Moreover, their beans are all certified as Rainforest Alliance Certified, a certification that focuses on environmentally conscious growing methods.
In comparison, Starbucks focuses more heavily on convenience and speed, working hard to make it easy and quick for customers to get their coffees and drinks. Starbucks has also been investing heavily in technology and developing new products that make the café experience more streamlined, from reordering from the app to mobile ordering.
In short, though the two companies may seem similar on the surface, Starbucks and Caribou Coffee have stark differences when it comes to how they operate and their emphasis on sustainability, convenience, and innovation. Out of the two companies, it’s clear that Starbucks is the dominant player in the coffee industry, but Caribou Coffee is holding its own and carving out a unique niche for itself.
Social Impact
When it comes to Caribou Coffee versus Starbucks, Caribou has made significant strides in social impact. Caribou has been active in helping to support and grow the sustainability movement. They invest in Fair Trade Certified coffee, helping to increase the living standards of coffee farmers. The company also has a strong focus on environmental protection, investing in the Rainforest Alliance Certification and Eco-Friendly Agroforestry Certification.
In addition to environmental and agricultural initiatives, Caribou also seeks to help its own employees by providing education, mentoring and development programs to its store employees. Unlike some of its competitors, Caribou also pays its store employees a living wage, which is more than 50% higher than the federal minimum wage.
In comparison, Starbucks has traditionally lagged behind in social impact initiatives. While the company has introduced several social impact-focused products like the Sustainable Development Brands (SDB), it has remained relatively tight-lipped on social impact initiatives when it comes to its store employees and sourcing of beans.
Marketing
When it comes to marketing, both Starbucks and Caribou Coffee put an emphasis on connecting with their customers. Starbucks does this primarily through digital marketing and advertising its products to a larger global audience. The company has also taken a more artistic approach to its advertising and packaging, often featuring paintings and quirky illustrations that promote the active lifestyle.
Caribou Coffee, on the other hand, takes a more personal approach to marketing. The company emphasizes its local connection to coffee, often featuring images of coffee enthusiasts enjoying the “Caribou Experience”. The company also tends to focus on the quality and flavor of its coffee, often emphasizing its locally roasted beans as a key selling point.
Packaging & Design
At first glance, both Starbucks and Caribou Coffee appear to offer similar packaging and design. However, upon closer examination, one can see distinct differences. For example, Caribou Coffee favors a more classic and muted look. Its coffee bags tend to feature a single yet distinctive pattern, and its store design often features wood, stone and plants. The overall feel is one of rustic and vintage charm.
In contrast, Starbucks has a more modern and vibrant approach to design. The company’s coffee bags feature vibrant colors and geometric patterns, and Starbucks stores often feature large windows and flashy signage. The overall feel is one of contemporary sophistication.
Coffee Selection
Another key difference between Caribou Coffee and Starbucks is in their selection of coffee. Caribou Coffee offers a wider variety of coffee blends than Starbucks, as well as flavored coffees and iced coffees. The company also offers a selection of single-origin coffees. These coffees feature the unique flavors of beans harvested from specific regions.
Starbucks, on the other hand, offers a fairly limited selection of coffees when compared to Caribou. Starbucks focuses on its signature blend of espresso and brewed coffees, with a few flavored and seasonal blends. They also offer some single-origin coffees, but in comparison to Caribou, their selection is more limited.
Price & Value
When it comes to price and value, both Starbucks and Caribou offer competitive prices. Starbucks tends to be slightly more expensive than Caribou, but you get what you pay for. Starbucks emphasizes quality, with its beans roasted to perfection and its drinks made with freshly brewed espresso. Caribou, on the other hand, focuses on value, with its unique, flavorsome blends often being some of the best value for money in the industry.
Overall, Starbucks and Caribou Coffee offer very different experiences. Whether you’re a die-hard Starbucks fan or a Caribou Coffee devotee, it’s clear that both companies have their own unique offerings that are worth considering.
