Bigger Than Coffee

13 Sep 2010 – Mark Lee

Java junkies among you might recognize the phrase above – it’s been increasingly prominent in recent Starbucks messaging on cups and in stores. I myself first spotted the “You & Starbucks. It’s bigger than coffee.” tagline in late 2008 when Starbucks created an inspiring video urging people to vote in the 2008 US presidential election – and offering a free cup of coffee to all who did! There’s something nicely engaging about the phrase – where so much marketing just sells, it embraces – but, in the summer of 2010, while conducting a partnership review for Starbucks and several of its Fairtrade partners (TransFair USA, Fairtrade Labelling Organizations International (FLO), FLO-CERT and Fairtrade Foundation UK), I was left considering different levels of meaning in the phrase and asking myself: What does ‘Bigger Than Coffee’ really embody?

Well, Big in Europe…

At the same time that video and historic election were making waves in the US, Starbucks was creating a splash of a different kind in Britain, where, in partnership with Fairtrade Foundation UK, the company was shifting to 100% Fairtrade espresso beans. This was a big move, representing millions of pounds of coffee, and it was taken in conviction that, in addition to Fairtrade sourcing being good for farmers, UK consumers wanted this.
I am convinced – based on data and personal experience – that consumers in the UK and much of Europe have high recognition and respect for Fairtrade products. In many ways, good social and environmental stewardship represents table stakes for coffee vendors there.

But America?

The Starbucks and Fairtrade partnership is a remarkable one. Over the course of a decade, Starbucks has increased Fairtrade coffee purchases almost 250x (that’s not a typo – purchases went from 165 thousand lbs per year in 2000 to 40 million lbs in each of 2009 and 2010 – see more detail Starbucks coffee buying practices in Starbucks responsibility reporting online). Both parties are deeply committed to improving producer livelihoods. For Fairtrade, empowering producers is their core mission, while Starbucks believes paying higher prices for coffee and educating producers on quality is crucial to ensuring supplies of high-quality coffee and therefore core to their business.

The Starbucks-Fairtrade partnership on 100% Fairtrade espresso in the UK reflected and likely strengthened ethical consumption trends already emerging there, but a key question remained: What might Starbucks and Fairtrade accomplish jointly outside Europe, especially in the US, where Fairtrade recognition and demand, while growing, are low?

For Farmers, but Dependent on Consumers

As the partnership review revealed, Starbucks and Fairtrade have found progress in the US market slow – at times maddeningly so. While Starbucks and Fairtrade can tap a societal zeitgeist in the UK and Europe attuned to the promise of ‘a better deal for third world producers’, the penny has not dropped the same way with US consumers…

…But polling suggests that US consumers are as or more interested in sustainability than those elsewhere in the world. So while their ambition for the US market has been tested over the last two years, Starbucks and Fairtrade left the final partnership review meeting end August more determined than ever to find means to connect consumers with the tremendous ways in which responsible sourcing improves farmer livelihoods. The trick? This recognition has to come in a flash, during that quick, critical moment at point of purchase when it is consumers who must also acknowledge, even if unconsciously, that their decision about which products to buy is an essential part of Bigger than Coffee.

Building Trust, Inspiring Action

We expect a great deal from certification schemes: social and environmental impact, credible and simple assurance on sustainability claims, brand value, and a return on investment for all concerned.

But are certification schemes the only, or even the best, way to deliver on these goals? Many certifications and labels – Fairtrade is an obvious example – have achieved significant successes, but here at SustainAbility we believe the time is ripe to take a step back and consider what certifications and labels were designed to achieve in the first place; to ask whether it is realistic to expect them to achieve so many and such diverse aims; and to explore emerging alternatives.

Because the sustainability challenges we face demand that the tools we deploy effect change at great speed and scale, we are launching a research effort this autumn on the world of certifications and labels and how their potential can be fully unleashed. We’ll seek input soon via a white paper here on sustainability.com. Stay tuned, and we look forward to hearing your views.