Product details

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Abstract

Starbucks, since its inception in 1971, had always championed sustainability in the coffee industry, which was plagued by environmental issues. Despite the various sustainability initiatives Starbucks took, it was criticised by environmentalists and accused of greenwashing. On its 50th anniversary in 2021, Starbucks boldly pledged to become a resource positive company and unveiled specific environmental goals of halving its waste, water use, and carbon emissions by 2030. As a part of the same, Starbucks ambitiously planned to overhaul its disposable cups by 2030. For generations, Starbucks' iconic throwaway cups had been a cornerstone of global consumer culture. In the fiscal year 2022, reusable cups accounted for only 1.2% of its sales. Besides necessitating a change in consumer behaviour, the move to overhaul the cup posed operational and financial challenges. How Starbucks' move to phase out the iconic cup was going to steer the company towards its sustainability goals? Was Starbucks taking a risk? Would the customers reciprocate positively?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Starbucks Corporation
Employees:
10000+
Type:
Public company
Industry:
Coffee shop

About

Abstract

Starbucks, since its inception in 1971, had always championed sustainability in the coffee industry, which was plagued by environmental issues. Despite the various sustainability initiatives Starbucks took, it was criticised by environmentalists and accused of greenwashing. On its 50th anniversary in 2021, Starbucks boldly pledged to become a resource positive company and unveiled specific environmental goals of halving its waste, water use, and carbon emissions by 2030. As a part of the same, Starbucks ambitiously planned to overhaul its disposable cups by 2030. For generations, Starbucks' iconic throwaway cups had been a cornerstone of global consumer culture. In the fiscal year 2022, reusable cups accounted for only 1.2% of its sales. Besides necessitating a change in consumer behaviour, the move to overhaul the cup posed operational and financial challenges. How Starbucks' move to phase out the iconic cup was going to steer the company towards its sustainability goals? Was Starbucks taking a risk? Would the customers reciprocate positively?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
World/global
Country:
United States

Featured company

Starbucks Corporation
Employees:
10000+
Type:
Public company
Industry:
Coffee shop

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