Starbucks Wants to Save Coffee from Climate Change… While Their CEO Racks Up Jet Miles

With Starbucks’ stock only creeping up a weak 11% over the last five years, you'd think they'd be focused on fixing those numbers. But nope, increasing sales is on pause. Instead, Starbucks is doubling down on its fight against climate change, targeting the very thing that fuels our mornings: coffee beans.

After purchasing their first farm in Costa Rica over a decade ago, they’re now adding two more research farms in Central America. Why? Because apparently global warming is making it tougher to grow the beans that keep the world (and my Monday mornings) functioning.

But here’s the most ironic part: while Starbucks is all about "saving the planet," they’re still flying their CEO, Brian Niccol, 1,000 miles from Newport Beach to Starbucks HQ in Seattle every single week on a corporate jet. Sure, they’re working on reducing carbon footprints—just not the ones left by their private planes. (Because nothing says eco-friendly like flying cross-country on the regular.)

(Source: The Times)

So, what’s Starbucks planning with these new farms? The plan is to test out high-tech solutions like drones to spread agrochemicals and hybrid coffee plants that can survive in shifting climates. These farms are supposed to be ground zero for figuring out how to keep the coffee supply flowing even as temperatures rise, rains dry up, and diseases like coffee leaf rust (basically coffee’s version of the flu) become more common.

Now, this might sound great for the future of coffee, but how does this help Starbucks’ real issue—its stock price? I’m going to go on a massive limb and predict that it doesn’t. At least not directly. So if you’re a shareholder, sorry.

Why is all of this necessary? According to data, climate change is already wrecking coffee crops around the world. In Brazil, for example, extreme dryness caused the price of Arabica beans (the kind Starbucks loves) to skyrocket to the highest levels since 2011. That’s bad news for all of us.

At the end of the day, Starbucks’ move is about more than just keeping their own coffee supply stable. They buy 3% of the world’s coffee, so if they don’t figure out how to weather the climate storm, we’ll all be paying more the bill. (As if $7 for a latte wasn’t already enough.)

Starbucks hopes these research farms will help coffee farmers become more resilient and profitable in the face of climate change. But while they’re busy fighting global warming on the farm, maybe they could also consider cutting back on the CEO’s weekly jet trips? (just a thought.) After all, it’s hard to preach sustainability when your carbon footprint is the size of a small country. (Don’t freak out on me, it’s all jokes.) 

Don’t get me wrong, I’m all for research farms and saving the world one coffee plant at a time, but if they don’t fix their numbers, they might need to start serving humble pie instead of pumpkin spice.

P.S. Our surprise alert is coming in hot today. It’s already up 55% and based on everything we’re seeing, it’s just getting started. Want to get a piece of the action? Click here ASAP to upgrade to premium.

Starbucks stock is up 2% year to date.

Stock.News has positions in Starbucks.