3/20/08Starbucks CEO Warns of Tailspin, Commoditification, Reuters. Noting that the country is facing an economic "tailspin," Starbucks Corp (SBUX.O: Quote, Profile, Research) nonetheless outlined plans to turn around its U.S. business with new coffee machines and a rewards program. Investors didn't see it, and shares fell another 4 percent after a 40 percent drop during the last year. CEO Howard Schultz said there was no "silver bullet". The most recent quarter was the first quarterly fall in company history. Schultz returned as CEO in 2008 promising to reverse "commoditization" of the brand. Comment: The Starbucks idea is terrific but even terrific ideas reach a saturation point.
launched its first Creating Shared Value report, including new figures on the impact of its business activities on the environment and society across the world. In 2007, Nestlé reduced its direct greenhouse gas emissions by 16% compared with ten years ago, and its overall water withdrawal by 28%, while at the same time increasing the total volume of goods produced by 76%. In 2007, Nestlé invested more than CHF 100 million in environment-related industrial improvements, as well as around CHF 170 million in new production facilities in Brazil, Pakistan and China. The company also continued to provide free technical assistance to more than 600,000 farmers in the developing world, including CHF 30 million in micro-credits. The report was reviewed for accuracy by Bureau Veritas. Comment: A few years ago at Davos, the Economist Magazine celebrated Nestlé (which has long been a target of campaigners) as the lone holdout against CSR. The Economist has become more friendly to CSR in 2008 (CSR reporting is now increasingly becoming a matter of law as well as public expectation in Europe) and so apparently has Nestlé. CSR, CSV - a rose by any other name would smell as sweet. Contact: Nestlé. More information: CSR Profile for Nestle, CSRWire.
Fair Trade, Starbucks. Starbucks and Fair Trade Purchasing Fair Trade Certified™ coffee is one way that Starbucks supports cooperatives of small-scale farmers.