Coffee Industry Overview
Coffee is one of the most popular and widely consumed beverages in the world today. Globally, 400 billion cups of coffee are consumed each year and according to the National Coffee Association, over 63% of all Americans over the age of 18 drink at least one cup of coffee a day. It’s estimated that the total world coffee industry is worth approximately $26 billion dollars. The coffee industry is a mature market, with a handful of retail and roasting market leaders. Starbucks Corporation, based in Seattle, Washington, USA, is the undisputed market leader in the premium coffee sector.
Starbucks Overview
Starbucks Corporation, which was founded in 1971, is the world’s largest coffeehouse chain. As of 2020, the company had over 29,324 stores, with more than 518,000 employees in 78 countries and territories, and generated over $24.7 billion in annual revenues. Starbucks is listed on the Nasdaq stock exchange and is part of the S&P 500 index. The company owns and operates coffee stores, kiosks and coffee bars, mainly in the United States, Canada, and Europe, as well as grocery and convenience stores, cafes, and online shops. Starbucks is known for its high-quality coffee and for its unique coffee shop culture, which includes inviting customers to stay and enjoy a cup of coffee
How much coffee does Starbucks sell?
According to a report from Bloomberg Businessweek, Starbucks purchased more than 227 million gallons of coffee in 2019. This translates to over 524 million pounds of coffee, which is enough to fill between 8 and 10 Suez Canal Barges. In addition, Starbucks purchased 85 million pounds of coffee in pre-packaged, prepackaged and ready-to-drink forms, such as bottled Frappuccino and other ready-to-drink coffee beverages.
Despite the vast amount of coffee purchased, Starbucks has been able to maintain quality. The coffee chain has a comprehensive quality control system in place that requires a minimum of 150 internally conducted food tests per day to ensure all coffees and other products taste the same across all its stores.
Starbucks’ Commitment to the Environment
Starbucks is dedicated to reducing their environmental footprint by buying responsibly sourced, ethically grown coffee beans. Starbucks sets its own standards for responsible procurement and buying that exceeds the standards of local and international law and industry standards. The company also works with its partners and suppliers, like C.A.F.E. (Coffee and Farmer Equity) Practices, to ensure sustainable farming practices and responsible sourcing.
In addition, Starbucks has an extensive recycling program. The company commits itself to using 10% post-consumer recycled materials in its paper products and has made a commitment to use more sustainable packaging. Starbucks is also looking into finding solutions to divert food waste from landfills and is working with leading organizations to develop a more sustainable composting solution.
Starbucks Coffee Blends
Starbucks offers a wide variety of coffee blends made from Arabica beans that are grown and harvested from some of the finest coffee farms around the world. From the original Pike Place blend, to the decadent Veranda blend and seasonal favorites like Pumpkin Spice Latte and Peppermint Mocha, Starbucks has something for every taste.
In addition to its signature coffee blends, Starbucks also offers limited edition single origin coffees and espresso blends from different countries, such as Ethiopia, Colombia, Guatemala, Sumatra and Ethiopia. The company also offers light, medium and dark roast varieties of its signature blends.
Starbucks’ Impact on the Global Coffee Market
The impact of Starbucks on the global coffee market cannot be overstated. Since its inception, Starbucks has become the leader of the global coffee market as more and more people become familiar with and loyal to the Starbucks brand. The coffee chain has been able to offer customers a premium coffee experience, while also providing coffee of consistently high quality at an affordable price. As a result, Starbucks has been able to expand to 78 countries and territories, with over 29,324 stores worldwide. Starbucks has revolutionized the coffee market and changed the way people enjoy coffee, making it more of an experience than just a beverage.
Starbucks’ Ethical Sourcing Model
In addition to its product quality and various coffee blends, Starbucks is also known for its commitment to ethical sourcing. Starbucks works with its coffee farmers around the world to ensure that its coffee is of the highest quality and that the farmers are treated fairly and compensated for their work. Starbucks also has a strict sourcing policy in place to ensure compliance with its ethical standards. The company also works with organizations such as the Global Coffee Platform, the World Coffee Research and Conservation International to further ensure its commitment to sustainability in the coffee market.
Starbucks’ Growth in Recent Years
In recent years, Starbucks has continued to grow, with an expanding store network and an increasingly loyal customer base. The company has also been able to capitalize on trends such as cold brew and nitro coffee, which have driven sales growth. In addition, Starbucks’ food menu has become increasingly popular, with customers visiting Starbucks for both breakfast and lunch. As a result of its growth and loyal customer base, Starbucks has been able to boost its profits and continue to dominate the global coffee market.
Conclusion
Starbucks is a leading global coffeehouse chain, dominating the market with its high-quality coffee and unique store atmosphere. The company has experienced tremendous growth in recent years, and has been able to expand its store network and offer an ever-expanding variety of coffee blends and products. Starbucks is also committed to practicing ethical sourcing and sustainable practices, making it one of the most successful and ethical companies in the coffee market.
