Starbucks has blamed its union workers for initiating a protest against the coffee chain via a pro-Palestinian tweet. Two months after suing the union for the social media post, the company now calls the tweet a corporate ‘misrepresentation.’

The beverage seller has been handling customer boycotts over the barista union’s “solidarity” comments since October 2023. This coincided with the start of the Israel-Hamas conflict.

Ironically, Israeli and not just Palestinian customers, are demanding a clear stand from the company on the sensitive matter.

It is Deeper than A Viewpoint

 USA Today, however, reveals that Starbucks is dealing with another deep-seated ‘wages’ matter alongside the Middle-East one.

Since 2021, workers have been agitating for wage increment but have not succeeded. The matter got to a head when union workers failed to show up on November 16 during ‘Red Cup Day.’ This is a promotional day when the coffee chain awards customers with free reusable mugs. 

In 2022, Starbucks fired workers for organizing a union in Tennessee, but this didn’t stop a U.S.-wide union drive.

Coffee Prices Brave amid Export Hike

Meanwhile, as Starbucks battles its workers, coffee prices in the U.S. have braved an increase in global exports. 

Robusta was back in the picture with prices up 1.47% on December 20. Prevailing dry conditions in Brazil was the main reason that sent prices up on this day despite rising exports.  

Long-term estimates for Brazil and Honduras show coffee export increments in the 2023-24 season. Besides, the International Coffee Organization (ICO) reported that world coffee production in October 2023 rose by 0.9% year-on-year (y-oy) to 9.53 million bags.

On the flip side is falling robusta coffee production in a major coffee exporter in Asia. Vietnam has revealed a fall in its 2023 volumes, a factor that has helped rally robusta price. 

The General Department of Customs said on December 18 that Vietnam’s November-December 2023 coffee exports fell by 10.4%, y-o-y. 

Arabica has shown mixed resilience. After rising early December following reports of drying Brazilian fields, it was falling mid-December after new forecasts of rain. This is why prices closed down by 5.83% on December 20 from the previous day’s. 

Given the production climb, it is only a matter of time before bearish prices close in and weaken shares. 

Starbucks’ Coffee Discounts

As world coffee prices show mixed results, brewed coffee prices have drawn comments of even the rich for being pricey. As expected, Starbucks’ coffee prices per mug have gone together with those of the world.  However, the coffee chain is offering discounts each Thursday throughout December. 

A normal coffee brew costs $2.75 while a latte $4.75 per mug. Starbucks’ fruit drinks, which in September attracted a class lawsuit over ingredients, cost at least $5.95 per cup. 

 Espressos with mocha cost a fortune at $7 a mug, but with the Thursday offer this could be affordable.

Thus, even as Starbucks gets back at the union, it is also doing promotions to recoup its customer base.