Beans to a Cup: The Commodity Chain of a Cup of Coffee

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During the 2000s, the business erupted on the South American continent in Mexico, Peru, El Salvador, and Guatemala. All the while during the global expansion of this multi-billion dollar coffeehouse empire one constant has veraciously remained, the purchase and development of responsibly grown coffee products with respect to the people and places that produce it. According to the Starbucks website, “over the past decade, Conservation International has helped [Starbucks] develop buying guidelines that address [their] principles for ethical sourcing” (Starbucks, 2011). The corporation labeled the guidelines as Coffee and Farmer Equity (C.A.F.E.) practice, which ensure that farmers grow their coffee in a healthy tradition for both the customers and the planet by following standards of product quality, economic accountability, social responsibility, and environmental leadership.

Coffee is one of the most valuable primary products in te world trade, in many years second in value only to oil as a source of foreign exchange to producing countries (Coffee Organization, n.d). For developing countries, coffee has been very crucial for the development of their economy and politics. Based on an article by International Coffee Organization (n.d.), more than two billions cups of coffee are drunk worldwide every day. Statistically, more than 400 billion cups coffee consumed every year and there are over 80 countries grown coffee (Michiel K et al, 2004) Nowadays, coffee shops have become a known social meeting place since coffee become a daily routine (Cleland, 2010). What makes coffee the world’s popular beverage?

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The Rise and Success of Starbucks Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With its humble roots firmly planted in Seattle, Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to operational planning. Starbucks has become a well-known company for selling the highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans.

Starbucks opened in Seattle’s Pike Place Market in 1971 with hopes of creating a "third place" between home and work. Starbucks was created to produce premium coffee, while adhering to various core principles during economic growth. "The company has realized that people don’t only come for coffee; they come for the atmosphere," (Kembell). Customers are able to socialize, read, study or enjoy music while drinking coffee. Starbucks strategically positions each store with hopes of matching the specific location, helping to create a unique atmosphere.