13 minute read

Caroline Carpenter

"Globalization in a Grande Cup": Exploring the Economic and Cultural Intricacies Between Starbucks and Costa Rica

Caroline Carpenter

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The neon green encircled mermaid now acts a beacon to coffee drinkers everywhere. Since its origin, Starbucks has worked to create its own branding. In every frappuccino you are also consuming the image by which the company has presented itself for years. Starbucks markets itself as more than simply a coffee company; it markets itself as a lifestyle, crafted like a Iced Lightly Sweet Chai Latte to appear as high-end yet accessible, artsy, humanitarian, and revolutionary. 1

Knowing that Starbucks is marketing a lifestyle through its coffee, one must be careful about the cultural implications that are also purchased. Starbucks is not ashamed to promote its own morality when it comes to its work in countries in which the coffee is grown. However, when a closer lens is put on the company and its dealings, it can be seen that the impact that its dealings have on both the origin country and the store consumers can be detrimental. Starbucks has quite the price to pay when it comes to perpetuating economic disparities between the consumers of its origin countries as and those of its own United States’ stores. This consequence also contributes to the perpetuation of the “white savior” mentality that Starbucks consciously (however “unconscious” they may claim) incorporates into its superstructure.

In Marxist theory, the capitalistic mode of production consists of two parts: the substructure and the superstructure. The substructure is made up of the means and interactions of production. In the realm of Starbucks, the would consist of coffee plantations in origin countries, farmer support centers, and mechanisms of exportation to Starbucks stores. The superstructure consists of all noneconomic aspects of a society such as art, religion, education, and culture. In Starbucks’ case, this can be described by the company’s commodified ethnicity (Italian names for orders, Costa Rican Arabica beans, etc.). Starbucks takes part in what

1 In his book Everything but the Coffee: Learning about America from Starbucks, author and professor Bryant Simon summarized this factor of the company’s identity: “Starbucks speaks to a deeply felt American need for predictability and class standing, community and authenticity, revealing that Starbucks’ appeal lies not in the product it sells but in the easily consumed identity it offers.” neo-Marxists would refer to as lat(t)e capitalism, which means that the company’s ultimate goal, of course, would be to generate capital. Part of Starbucks’ superstructure has been inherent to the company goals and creation, but many aspects of what they incorporate into company culture has been in reaction to the consumeristic desire for multiculturality in their product. There is a distinct experience that Starbucks must create to ensure customer satisfaction. This is an experience that goes far beyond a diligent barista.

Now that consumers have a growing concern over the origin of its products, consumers are also seeing the effects of export-dependent economies such as Costa Rica. Kim Feller wrote in her book Wrestling with Starbucks: Conscience, Capital, and Cappuccino, “It’s a sad consequence of the historic north-south coffee relationship that many farmers once had no idea what kind of coffee their bean produced.” Since the Costa Rican coffee industry is so dependent on exportation, few farmers have actually tasted what kind of coffee their beans produce. The beans that are left within origin countries are often the third tier of quality coffee.

When visiting Doka Coffee Estate in Sabanilla, Alajuela, Costa Rica, I took the opportunity to go on one of the marketed tours. The tours touted both the history of the specific plantation, Costa Rican coffee history, as well as the intricate coffee-making process utilized every day. At one stop on the tour the guide sat in front of the group three different sacks, overflowing with coffee beans. The first sack of beans, which were of perfect shape and a beautiful pre-roasted white, and without a shred of a shell, would be sent, we were informed, to private purchasers around the globe (“like beans could also be purchased in our gift shop,” conveniently mentioned our tour guide). The next set of beans was very similar to the first, but shells were scattered about the sack and the pale color was not as uniform. When asked where we thought this sack of beans would be sent to, the group responded with an obvious “to local Costa Ricans.” Our guide shook his head knowingly and told us, “Those, mis amigos, are what fill your Starbucks cups.” We all immediately turned our eyes to the last bag of coffee beans. There was a huge difference in coloration as well as remnants of shells scattered throughout the bag. These were the beans that filled Costa Rican coffee mugs. These beans

were still fit for consumption, but would have Starbucks quickly attacked by food critics and coffee purists. It was as if the entire group collectively had to swallow a lump in our throats.

This disparity between coffee qualities is exactly what strikes a chord in the hearts of Starbucks consumers. This concern has caused Starbucks to set goals for increasing the number of Starbucks stores in origin countries. Starbucks opened its first store in Costa Rica in 2012, and currently has a goal set for at least five new openings in the country per year, with a goal of twenty-five total by 2020. Peter Torribiarte, director of Costa Rica’s agronomy center, is enamored by the idea of more Starbucks stores in origin countries. He states that, Opening stores in countries of origin completes the circle. It’ll be different than the neighborhood stores in the States because people know more about coffee. Many of them are involved with its production in some way. They’re more sophisticated about it. We believe coffee should promote a social conversation, and that conversation is expanded when you can talk about a specific origin. (Fellner 85)

Not only are these questions of production remaining in origin countries open for discussion, but interrogations of the economic disparities between plantation workers and Starbucks stores may raise questions which the Starbucks corporation cannot easily answer. The opening of Starbucks in origin countries is a wonderful idea in theory, but it will be interesting to see if locals are able to afford the very beans they produce, or if the booming tourism will be keeping the new stores alive.

Starbucks has certainly been an advantageous addition to origin countries, specifically in the case of Costa Rica. According to locals, the company has proved to help the country’s industry benefit both economically and environmentally. Juan Gerado, owner of his own non-Starbucks-affiliated coffee plantation, is a big critic of the company’s choice in coffee planting and brewing techniques, but had praise for the company as far as its impact on Costa Rica. “They’re excellent for Costa Rica,” he stated. “We used to have excellent quality in the 1970s and 1980s. Then the huge multinationals started to push for quantity. Now thanks to Starbucks, we can go back to quality: we have quality controls, houses for workers, water standards” (Fellner 87). The “huge multinationals” to which he is referring are companies that were much quicker in the globalization game such as Nestle, Kraft, and Proctor & Gamble.

One revolutionary aspect of Starbucks’ buying requirements are CAFÉ Practices. Coffee and Farmer Equity (CAFÉ) Practices was created to ensure that all of its suppliers would be consistent with the values placed in the Conservation International Program (a program Starbucks first sponsored in the Chiapas region of Mexico starting in 1998). CAFÉ Practices act as Starbucks’ buying guidelines 2 which outline the criteria for product quality, economic accountability and transparency, social responsibility, and environmental leadership necessary before purchase. The final criteria were decided in 2004.

Environmental policy and advocacy have become a staple portion of the company’s regulations and projects both in the United States and specifically Costa Rica. The first Farmer Support Center for the Starbucks company was created at the base of the Poás Volcano in San Jose, Costa Rica in 2004. The area is now used as a central agronomy center for the company. At this support center, Starbucks provides coffee process technique training for Costa Rican farmers (even those not yet certified for their own purchase). The area is specifically used to develop different techniques for the coffee-making process in order to provide the most environmentally-effective method of producing the same quality coffee beans (1912 Pike Staff). Based on research and experimentation conducted in this very agronomy center, Starbucks implemented a new coffee bean cycle that reduced water use in their process by 90% and recycled it for other uses on the plantations. The pulp of the coffee bean is also being used for fertilizer and the parchment in the process used as a drying fuel in order to reduce overall waste in the facilities (Fellner 82-83). Hacienda Alsacia, the 240-hectare farm purchased in 2013, has set big goals for itself in maintaining the Costa Rican coffee industry. Hacienda Alsacia not only provides refinery to the coffee-producing process, but Starbucks’ first agronomy center acts also as a hotspot for new methods and technologies for the coffee industry. One such project that the center is currently working on is the development of trees that are resistant to coffee rust. Coffee rust is a disease that targets the leaves of the coffee trees and creates yellow spores that weaken, and occasionally kill, coffee trees. Starbucks brought in Carlos Mario Rodriguez, who oversees all of the Starbucks Farmer Support Centers to conduct the research. Rodriguez was very successful in creating a disease-resistant tree and is currently working on various hybrids of such to spread to the rest of Costa Rica. At the 2016 Annual Meeting of Shareholders, Starbucks announced that they would be donating 20 million of these upgraded rust-resistant trees to farmers across Costa Rica as part of their global “One Tree for Every Bag” initiative (Lopez). The center and all of its research results is open to any Costa Rican coffee farmer who wants to learn. This openness, according to Starbucks, is in order to ensure the future of the country’s coffee industry. They hope the industry will continue far past their own legacy (1912 Pike Staff).

2 Starbucks has outlined in their website the specifics of these guidelines. The website also includes pdf file of a “scorecard” of sorts that investigators use to evaluate each specific responsibility. The total score is calculated on a scale from 1-100. The higher the score, the higher priority of trading Starbucks will engage in with the producer (“Responsibly Grown and Fairtrade Coffee”).

Starbucks maintains a positive relationship with the people and economy of Costa Rica, but they do not do it without want of profit. Part of their charity and morality is for the consumption of its own audience. In every Starbucks store there are conveniently placed pictures of farmers in simple clothing smiling with a farm distinctly in the background. Bryant Simon condemned this marketing technique in his book: When it comes to lending a hand far and wide-to absolution and dissociation- many customers seem willing to pay an even higher premium for a feelgood story about global peace than they are even for green solace and everyday discoveries. Starbucks’ coffee costs more, a New York sales clerk acknowledged while waiting in line for her latte, but she didn’t care because it made her feel “better intellectually.” Another Starbucks regular added she appreciated the “cheerful fliers” with pictures of “happy...Costa Rican coffee growers” They let her believe that “we aren’t making the world a more vicious place by frequenting this coffee juggernaut.” (204)

This is a common sentiment for coffee lovers, and patrons, in general. Consumers have a feeling of purpose in every cup that they buy, knowing that their money is going to help the “little guy.” There is sense of both accomplishment and relief when seeing the face of the person who is thriving, it seems, because of their coffee purchase. This plays into an overwhelming trend of social responsibility as consumers, but also an unfortunate trend of believing that rural communities need helping. It’s quite possible, even likely in some cases, that the family pictured beside the “global 3 ” coffee bags, dressed in simple, often traditional, clothing, earns an equivalent wage to the average Starbucks customer. These pictures are used much in the same way that Sarah McLachlan utilizes watery-eyed dogs and “In the Arms of an Angel” to get people to donate to the ASPCA. It helps a consumer sleep better at night knowing that their frequented locations can be trusted in making the world a better place.

To appear authentic, one must portray authenticity, which is exactly what Starbucks plans for every promotional endeavor regarding coffee farmers. Pictures are not where Starbucks stops in proving their authenticity to customers. If you search under Starbucks’ website under the section of “social responsibility” you shall find videos upon videos of “some of our very best friends” as Starbucks phrases it. These videos allow consumers to walk through the lush rainforests of Cost Rica, the mountains of Mexico, or wherever their heart may desire to take them. These videos act as windows to what goes on behind-the-scenes of Starbucks coffee production. Bryan Simon jokes that, “they are what I would call

3 The irony lies in the fact that the “special” bags of coffee marketed in lines and around Starbucks stores often are produced from the same harvest that is your daily cup. ‘corupmentaries’-movies made to contribute to a company’s brand mythology. And, of course, you are not supposed to think about what isn’t there, the evidence the filmmakers leave out or don’t explore” (Simon 206).

One cannot purchase the benefits of the substructure of the company, without also facing the consequences of the produced superstructure. Though we can commend Starbucks for its actions in benefiting origin countries, such as Costa Rica, in the realms of fair trade certification and environmental practices, we must also remain mindful of cultural aspects of the company. Attention must be paid to the constructed images and relations that Starbucks manufactures through its products and locations. We must be wary of the atmosphere created by “corupmentaries” and posters of coffee farmers (who deserve to be recognized, but not marketed). Though they prove to improve the economic standings of those who work for them, the disparity between those who can purchase their coffee in the United States versus those in origin countries is a stark difference.

1912 Pike Staff. “The Coffee Farm Dedicated to Ensuring the Future of Coffee.” 1912 Pike. Starbucks, 14 July 2016. Web. 10 Oct. 2016.

Arias, L. “Starbucks Will Have 25 Coffee Shops in Costa Rica by 2020.” The Tico Times. Producciones Magnolia, 16 Oct. 2015. Web. 01 Nov. 2016.

“Coffee Purchasing.” Starbucks Coffee Company. Starbucks Corporation, n.d. Web. 01 Nov. 2016.

Fellner, Kim. Wrestling with Starbucks: Conscience, Capital, Cappuccino. New Brunswick, NJ: Rutgers UP, 2008. Print.

Global Responsibility Report 2015. Seattle: Starbucks Corporation, 2015. PDF.

Lopez, Jaime. “Get to Know Starbucks’ Coffee Farm in Costa Rica (VIDEO) - Costa Rica Star News.” Costa Rica Star News. N.p., 27 Mar. 2016. Web. 21 Oct. 2016.

Michelli, Joseph A. The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary. New York: McGraw-Hill, 2007. Print.

Patton, Leslie. “McDonald’s Is Moving to Sustainable Coffee in Latest Menu Change.” Bloomberg. com. Bloomberg, 5 Oct. 2016. Web. 19 Oct. 2016.

“Responsibly Grown and Fair Trade Coffee.” Starbucks Coffee Company. Starbucks, n.d. Web. 21 Oct. 2016.

Roseberry, William, Lowell Gudmundson, and Mario Samper Kutschbach. Coffee, Society, and Power in Latin America. Baltimore: Johns Hopkins UP, 1995. Print.

Schultz, Howard, and Joanne Gordon. Onward: How Starbucks Fought for Its Life Without Losing Its Soul. New York: Rodale, 2011. Print.

Simmons, John. The Starbucks Story: How the Brand Changed the World. Singapore: Marshall Cavendish Business, 2005. Print.

Simon, Bryant. Everything but the Coffee: Learning about America from Starbucks. Berkeley: U of California, 2009. Print.

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