Kicking Horse Coffee & Ethical Business

Kicking Horse Coffee AN ETHICAL BUSINESS

Ke l l y Ma r i o n C OMM 4 15 G l o b a l C o m m .

A s s i g n m e n t T h r ee A n n Ro g e r s

once

upon a time...

It is believed that coffee beans were discovered by an Ethiopian goat herder named Kaldi (National Geographic Society, 1999).

ETHIOPIA

1672 The first coffee house opened in Paris, France in 1672 (Fact No. 23., n.d.).

The first espresso machine was invented in 1822

by Louis Bernard Rabaut, a Frenchman (Coffee and Espresso, n.d.)

1822

In 1996, Leo Johnson and Elana Rosenfeld opened Kicking Horse Coffee in Invermere, B.C., Canada (Kicking Horse Coffee, n.d.).

1996

1858 In 1858, James Hector discovered the Kicking Horse Valley (Kicking Horse Coffee, n.d.).

In 2003, Kicking Horse went 100% organic (Kicking Horse Coffee, n.d.).

2003

1998 In 1998, Kicking Horse was one of the first ten companies to sign on with TransFair Canada (Kicking Horse Coffee, n.d.).

2007 In 2007, Kicking Horse transitioned to 100% organic fair trade (Kicking Horse Coffee, n.d.).

where

in the world...

The journey from grower to consumer is a long one: multiple people, companies, and transportation methods are involved. Because of this, traceability is difficult, particularly at the farm level; data in the different stages is, in many cases, not available (Carbon Footprint, 2012).

KICKING HORSE COFFEE

Pacific Pipeline: Indonesian 454 Horsepower: Indonesian Mexican: Central American - Mexico Kickass: Indonesian and Central American Grizzly Claw: Central and South American Z-Wrangler: Indonesian and Central American Smart Ass: African, Central and South American Three Sisters: Indonesian, Central and South American Hoodoo Jo: African, Central American, and Indonesian Half Ass (Half-caffeine): Central American and Indonesian Kootenay Crossing: Central American with a hint of Indonesian Cliff Hanger Espresso: African, Indonesian, Central and South American

...is the coffee from?

who

consumers

benefits? consumerism (at supermarkets)

Kicking Horse Coffee has modern packaging, provincially thematic names for their beans, endless awards, and positive reviews. They are also equipped with buzzwords — organic, local, fairtrade — that lure in the conscious consumer.

The coffee speaks for itself and the brand has seen expansive growth, including into the U.S. market through a private equity deal with Branch Brook Holdings in 2012 (Lee, 2012).

Kicking Horse won Fairtrade Canada’s “Favourite Fairtrade Product of 2015”. Fairtrade Canada is a member of Fairtrade International that certifies and promotes Fairtrade certified products in Canada.

Kicking Horse Coffee is not cheap at $15.95 for 454g. (.035/g), so the winner is determined by those who can afford to purchase it ­— middle to upper class citizens with access to a computer. Reviews revealed that many consumers love the coffee but opt to buy it only when it is on sale.

Kicking Horse was named #15 on the 2015 “Best Workplace in Canada” list. The list is compiled by Great Place to Work® Institute Canada. The winner is chosen based on employee feedback and an “in-depth review of the organization’s culture including credibility, respect, fairness, pride, and camaraderie” (Best Workplace in Canada, 2015). They have 67 employees.

“Coffee growers receive 7%-10% of the retail price of coffee in supermarkets” (Fairtrade, 2012).

coffee farmers “Although Fair Trade coffee still accounts for only a small fraction of overall coffee sales, the market for Fair Trade coffee has grown markedly over the last decade, and purchases of Fair Trade coffee have helped improve the lives of many small growers” (Haight, 2011, para.5).

Kicking Horse is certifed fairtrade, meaning it focuses on “sustainable development of marginalized and disadvantaged producers” (Mionel et al, 2014). Fair trade businesses support developing countries by creating jobs and, most importantly, paying fair wages for agricultural workers while maintaining favorable working conditions. The fair trade work model is also meant to empower producers in developing countries and to encourage social justice (Mionel et al, 2014).

“More than 530,000 coffee farmers from 28 countries benefit from Fairtrade coffee” (Fairtrade, 2012).

organizations Kicking Horse Coffee supports environmentally-friendly businesses, many of which are local. They also sponsor mountain biking, cycling, running, and paddling events, largely due to the fact that they are in the Rocky Mountains — an area known for outdoor athletics. The conservation organizations they support include Purple Hill Humanitarians, Living Lakes, Jumbo Creek Conservation Society, Wildsite, Idle Free BC, Nature Conservancy of Canada, Wings Over The Rockies, and Access Fund (Kicking Horse Coffee, n.d.). They advocate literacy and the outdoors through their support of the Banff Mountain Film & Book Festival. Most of the organizations they support align with their commitment to the environment and the wellbeing of animals and humans alike. Purple Hill Humanitarians brings access to education and health services to rural Nicaraguan communities — one of their sources for coffee beans. The one organization that is a peculiar fit for the organization is Morning Gloryville, a club (rave), massage, event business in San Francisco, New York, and Montreal.

what about the

carbon footprint?

CO 2

Regardless of how ethical and fair trade an organization may be, it is important to consider the carbon footprint of items one is consuming. The import/export business will remain due to lack of resources and high demand, regardless of the local food movement that has taken British Columbia by storm. One such sought after product is the coffee bean.

Carbon Dioxide

Coffee is the most widely traded tropical agricultural commodity in the world. Large scale production results in the coffee supply chain being a major contributor to global greenhouse gas (GHG) emissions. In fact, agriculture directly contributes to approximately 10% - 12% of GHG emissions (Carbon Footprint, 2012).

Coffee is a key source of revenue for over 40 tropical countries, with approximately 125 million people depending on coffee for their livelihoods worldwide. From the farm to the consumer, many people are involved in the complex process of the coffee supply chain, each contributing to the generation of direct carbon dioxide and indirect GHG emissions at different stages (Carbon Footprint, 2012). At the farm level, direct emissions and indirect emissions are released through the manure used and electrical energy. During the milling stage, direct emissions are generated through fossil fuels, biomass, and pesticides, as well as indirect emissions through electrical energy, decomposition, and administrative business. At the exportation phase, direct emissions are generated through transportation, and indirect emissions are generated through electrical energy and administrative business (Carbon Footprint, 2012).

N2 Nitrous Oxide

CH 4 Agricultural Methane

Carbon Footprint From Cultivation to Exportation On a global level from 1990 to 2005, agricultural methane (CH4) and nitrous oxide (N20) emissions increased by nearly 17% (Carbon Footprint, 2012).

Chart Source: (Carbon Footprint, 2012)

In 2011, there was a study conducted in Costa Rica and Nicaragua to test the greenhouse gas emissions of inorganic and organic coffee production. The findings: 1 kg of fresh coffee cherries produced conventionally had a carbon footprint between 0.26 and 0.67 kg CO2e, whereas 1 kg of fresh coffee cherries put through an organic management system resulted in a carbon footprint between 0.12 and 0.52 kg CO2e. It was deduced that the main contributors to GHG emissions at the farm level were from the inputs of organic and inorganic nitrogen (Carbon Footprint, 2012).

While the full carbon footprint of Kicking Horse varies based on the source of the coffee beans (Central or South America, Indonesia, Africa, Mexico), this information provides an understanding of the general carbon footprint for both inorganic and organic coffee.

According to the Fairtrade Foundation, 7.9m tonnes of coffee were produced in 2011, of which 6.2m tonnes were exported. Global consumption is on the rise — it doubled in the 40 years — and, yet, half of the global retail coffee market is controlled by five companies (2012).

Kicking Horse Coffee REFERENCE LIST

2015 Best Workplaces in Canada: Medium. (2015). Best Workplaces in Canada. Great Place To Work. Retrieved from http://www. greatplacetowork.ca/best-workplaces/best-workplaces-in-canada Carbon Footprint Across the Coffee Supply Chain: The Cost of Costa Rican Coffee. (2012, November). Business Association of Latin American Studies. Retrieved from http://www.balas.org/BALAS_2013_proceedings_data/data/documents/p639212.pdf Canada’s Favourite Fairtrade Product 2015: Congratulations Kicking Horse Coffee! (2015, May 19). Fairtrade Canada. Retrieved from http://fairtrade.ca/en/news-views/editorials/canadas-favourite-fairtrade-product-2015-congratulations-kicking-horse-coffee Coffee and Espresso Machine History. (n.d.). Coffee Machine. Retrieved from www.coffee-machine.org/coffee-machine-and-espresso-machine-history/ Fact No. 23. (n.d.). The 100 Years 100 Facts Project. Retrieved from http://100years100facts.com/facts/first-european-coffee-shopsestablished-armenians/ Fairtrade and Coffee. (2012, May). Commodity Briefing. Fairtrade Foundation. Retrieved from www.fairtrade.net/fileadmin/user_upload/content/2009/resources/2012_Fairtrade_and_coffee_Briefing.pdf Haight, C. (2011). The Problem with Fair Trade Coffee. Economic Development. Stanford Social Innovation Review. Retrieved from http://www.ssireview.org/articles/entry/the_problem_with_fair_trade_coffee Kicking Horse Coffee. (2015). Kicking Horse Coffee Co. Retrieved from https://www.kickinghorsecoffee.com Lee, J. (2012, November 28). B.C Entrepreneur Celebrates the Sweet Smell of (Kicking Horse Coffee) Success. Business. Retrieved from Canada.com www.canada.com/business/smallbusiness/Vancouver+entrepreneur+celebrates+sweet+smell+Kicking/7617938/ story.html#__federated=1 McElgunn, J. (2006). Staying on a Kicking Horse. Profit, 25, 57. Toronto: Rogers Publishing Limited. Retrieved from https://ezproxy. royalroads.ca/login?url=http://search.proquest.com/docview/219266028?accountid=8056 Mionel, V., Mionel, O., & Moraru, A. (2014). The Relationship Between Fair Trade and Supermarkets: Spatial Implications for the Global Economy. Knowledge Horizons.Economics, 6(2), 109-113. Retrieved from https://ezproxy.royalroads.ca/login?url=http:// search.proquest.com/docview/1537381014?accountid=8056 National Geographic Society. (1999). Coffee. Retrieved from the National Geographic website: www.nationalgeographic.com/coffee/ ax/frame.html