{"id":26404,"date":"2017-11-15T22:19:07","date_gmt":"2017-11-16T03:19:07","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/fall-without-pumpkin-spice-lattes-it-could-happen\/"},"modified":"2017-11-15T22:19:07","modified_gmt":"2017-11-16T03:19:07","slug":"fall-without-pumpkin-spice-lattes-it-could-happen","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/fall-without-pumpkin-spice-lattes-it-could-happen\/","title":{"rendered":"Fall Without Pumpkin Spice Lattes? It Could Happen"},"content":{"rendered":"

Can\u2019t function in the morning without your venti soy hazelnut macchiato?\u00a0 You might want to try weaning off, as climate change could decimate the world\u2019s supply of coffee.<\/p>\n

\"\"<\/a>
Source: CBC News.<\/em><\/figcaption><\/figure>\n

2.25 billion cups of coffee are consumed every day across the world.[1]<\/sup><\/a>\u00a0 The majority of this coffee is grown around the equator, in countries like Brazil, Colombia, Vietnam, and Ethiopia.[2]<\/sup><\/a><\/p>\n

Coffee plants rely on a precise combination of temperatures, rainfall, and dry weather to ripen properly and maintain their taste profiles. \u00a0As climate change brings rising temperatures, changing rainfall patterns, and increasing incidence of pests and diseases to \u201cbean belt\u201d countries, the amount of land hospitable for coffee plants will shrink \u2013 a recent study concluded that climate change will halve the global area suitable for coffee production by 2050.[3]<\/sup><\/a><\/p>\n

Many agricultural crops will be impacted by climate change, but coffee is especially vulnerable because it has a particularly shallow gene pool.[4]<\/sup><\/a>\u00a0 Only two species of coffee \u2013 arabica and robusta \u2013 are grown for human consumption.[5]<\/sup><\/a>\u00a0 Arabica is the more popular and the species of choice for coffee behemoth Starbucks, which has become increasingly concerned about climate change.<\/p>\n

Most of Starbucks\u2019s suppliers are based in Central America, which is already experiencing changing rainfall patterns and pest infestations.\u00a0 As such disruptions become more frequent, they will decrease crop yields, depress quality, drive up prices, and discourage farmers from growing coffee, jeopardizing Starbucks\u2019s supply chain and entire business.<\/p>\n

Plan of Attack<\/strong><\/p>\n

The coffee giant has responded to this threat by trying to reduce its own contribution to climate change.\u00a0 Starbucks has had a defined climate change strategy since 2004 focused on energy conservation, renewable energy usage, and climate-smart agricultural practices, including purchasing 99% of its coffee beans from suppliers that meet sustainable sourcing standards.[6]<\/sup><\/a><\/p>\n

The company is also working with farmers to improve their ability to grow coffee in changing climates.\u00a0 The company has invested $100 million to support coffee communities and improve the resilience of coffee supply chains.[7]<\/sup><\/a>\u00a0 After farmers in Mexico lost 60% of their 2014 coffee production to a leaf rust, Starbucks distributed 20 million rust-resistant coffee plants. [8]<\/a><\/sup><\/p>\n

\"\"<\/a>
Source: The Climate Institute.<\/em><\/figcaption><\/figure>\n

Starbucks helped found the Sustainable Coffee Challenge, an initiative that defines 15 practices industry players can adopt to ensure the prosperity of coffee farmers and the climate that sustains them.[9]<\/sup><\/a>\u00a0 In 2015, Starbucks joined the Initiative for Coffee & Climate, a partnership with development NGOs that provides farmers with training and tools to better respond to climate change.[10]<\/sup><\/a><\/p>\n

Starbucks is also investing in beans that can thrive in hotter climates.\u00a0 The company has helped fund research into more tenacious strains of coffee, such as Centroamerico, a new hybrid variety bred from two different strains of arabica.[11]<\/sup><\/a>\u00a0 In 2013, the company even bought its own coffee farm in Costa Rica to experiment with developing plants that can thrive in warmer temperatures.[12]<\/sup><\/a><\/p>\n

 <\/p>\n

Growing Pains<\/b><\/p>\n

Adoption of more resilient crops remains a challenge, however.\u00a0 Most of the world\u2019s 25 million coffee farmers are smallholders with little capacity to adapt to a hotter world.[13]<\/sup><\/a>\u00a0 Hybrid seeds are 2.5 times more expensive than standard seeds and few regions have the infrastructure to distribute them.[14]<\/sup><\/a>\u00a0 Starbucks will need to take an increasingly hands-on role with its suppliers in future years and will likely need to sacrifice some of its profits in the near-term to help suppliers adopt more resilient crops.\u00a0 At the same time, Starbucks should begin identifying new areas for production in regions that will become attractive for coffee crops, such as East Africa.[15]<\/a><\/p>\n

Coffee will always remain a core component of the Starbucks brand, but the company should consider ways it can diversify its product offering to decrease its exposure to an unreliable supply chain.\u00a0 In recent years, Starbucks has expanded its product line to include a variety of teas, juices, and food.\u00a0 The company should continue to evaluate additional products that can bring in new revenues and customers.\u00a0 For instance, the company could experiment with offering a limited selection of wines and beers at its trendy new Roastery and Reserve Bars through partnership with\u00a0 organizations with similar environmental values.<\/p>\n

Starbucks should also leverage its broad platform with the public to increase awareness about the effects of climate change.\u00a0 The company could educate its customers by decorating cups with facts about climate change.\u00a0 And company executives should become more vocal in pushing for productive climate change policies.<\/p>\n

Of course, it\u2019s worth remembering that \u201cbean belt\u201d farmers will wind up with the most intense caffeine headaches.\u00a0 125 million people depend on the coffee supply chain for their livelihoods.[16]<\/sup><\/a>\u00a0 Coffee is a critical industry in many producer countries \u2013 the crop accounts for 59% of export earnings in Burundi.[17]<\/sup><\/a>\u00a0 If climate change disrupts coffee production as expected, many emerging economies will experience substantial damage.\u00a0 How much do Starbucks and coffee drinkers owe the communities that have fueled our collective caffeine habit?<\/p>\n

 <\/p>\n

[796 words]<\/p>\n

[1]<\/sup><\/a> Watts, Corey.\u00a0 \u201cA Brewing Storm: The Climate Change Risks to Coffee.\u201d\u00a0 The Climate Institute<\/em>, Sept. 2016, http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_24082016_web.pdf<\/a>.<\/p>\n

[2]<\/sup><\/a> Dewey, Caitlin.\u00a0 \u201cThe Race to Save Coffee.\u201d\u00a0 The Washington Post<\/em>, 19 Oct. 2017, https:\/\/www.washingtonpost.com\/graphics\/2017\/business\/the-race-to-save-coffee\/?utm_term=.3e9e52a32945<\/a>.<\/p>\n

[3]<\/sup><\/a> Bunn, Christian et al.\u00a0 \u201cA Bitter Cup: Climate Change Profile of Global Production of Arabica and Robusta Coffee.\u201d\u00a0 Climatic Change, <\/em>vol. 129, issue 1-2, 2015, pp 89-101, https:\/\/link.springer.com\/content\/pdf\/10.1007%2Fs10584-014-1306-x.pdf<\/a>.<\/p>\n

[4]<\/sup><\/a> Dewey, Caitlin.\u00a0 \u201cThe Race to Save Coffee.\u201d\u00a0 The Washington Post<\/em>, 19 Oct. 2017, https:\/\/www.washingtonpost.com\/graphics\/2017\/business\/the-race-to-save-coffee\/?utm_term=.3e9e52a32945<\/a><\/p>\n

[5]<\/sup><\/a> Dewey, Caitlin.\u00a0 \u201cThe Race to Save Coffee.\u201d\u00a0 The Washington Post<\/em>, 19 Oct. 2017, https:\/\/www.washingtonpost.com\/graphics\/2017\/business\/the-race-to-save-coffee\/?utm_term=.3e9e52a32945<\/a><\/p>\n

[6]<\/sup><\/a> \u201cClimate Change,\u201d Starbucks, <\/em>https:\/\/www.starbucks.com\/responsibility\/environment\/climate-change<\/a>. \u00a0Accessed 13 Nov. 2017; \u00a0Byrnes, Nanette.\u00a0 \u201cStarbucks Responds to Climate Change, with Mixed Results.\u201d\u00a0 MIT Technology Review, <\/em>9 May 2016, https:\/\/www.technologyreview.com\/s\/601404\/starbucks-responds-to-climate-change-with-mixed-results\/<\/a>.<\/p>\n

[7]<\/sup><\/a> \u201cStarbucks Coffee Company.\u201d\u00a0 Sustainable Coffee Challenge, <\/em>https:\/\/www.sustainablecoffeechallenge.com\/partners\/starbucks\/<\/a>.\u00a0 Accessed 13 Nov. 2017.<\/p>\n

[8]<\/sup><\/a> Byrnes, Nanette.\u00a0 \u201cStarbucks Responds to Climate Change, with Mixed Results.\u201d\u00a0 MIT Technology Review, <\/em>9 May 2016, https:\/\/www.technologyreview.com\/s\/601404\/starbucks-responds-to-climate-change-with-mixed-results\/<\/a>.<\/p>\n

[9]<\/sup><\/a> \u201cAbout Sustainable Coffee Challenge.\u201d\u00a0 Sustainable Coffee Challenge, <\/em>https:\/\/www.sustainablecoffeechallenge.com\/about\/<\/a>.\u00a0 Accessed 13 Nov. 2017.<\/p>\n

[10]<\/sup><\/a> \u201cAbout C&C.\u201d\u00a0 Initiative for Coffee & Climate<\/em>, http:\/\/www.coffeeandclimate.org\/about-cc.html<\/a>.\u00a0 Accessed 13 Nov. 2017; \u201cWelcome to Our Newest Partners.\u201d\u00a0 Initiative for Coffee & Climate, <\/em>2 Dec. 2015, http:\/\/www.coffeeandclimate.org\/newsreader\/items\/welcome-to-our-newest-partners-starbucks-and-conservation-international.html<\/a>.<\/p>\n

[11]<\/sup><\/a> \u201cFarming Communities.\u201d\u00a0 Starbucks, <\/em>https:\/\/www.starbucks.com\/responsibility\/community\/farmer-support<\/a>; https:\/\/dailycoffeenews.com\/2015\/04\/08\/starbucks-grants-400000-to-world-coffee-research-to-assist-guatemalan-farmers\/<\/a>. \u00a0Accessed 13 Nov. 2017; \u00a0Dewey, Caitlin.\u00a0 \u201cThe Race to Save Coffee.\u201d\u00a0 The Washington Post<\/em>, 19 Oct. 2017, https:\/\/www.washingtonpost.com\/graphics\/2017\/business\/the-race-to-save-coffee\/?utm_term=.3e9e52a32945<\/a>.<\/p>\n

[12]<\/sup><\/a> Byrnes, Nanette.\u00a0 \u201cStarbucks Responds to Climate Change, with Mixed Results.\u201d\u00a0 MIT Technology Review, <\/em>9 May 2016, https:\/\/www.technologyreview.com\/s\/601404\/starbucks-responds-to-climate-change-with-mixed-results\/<\/a>.<\/p>\n

[13]<\/sup><\/a> Watts, Corey.\u00a0 \u201cA Brewing Storm: The Climate Change Risks to Coffee.\u201d\u00a0 The Climate Institute<\/em>, Sept. 2016, http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_24082016_web.pdf<\/a>.<\/p>\n

[14]<\/sup><\/a> Dewey, Caitlin.\u00a0 \u201cThe Race to Save Coffee.\u201d\u00a0 The Washington Post<\/em>, 19 Oct. 2017, https:\/\/www.washingtonpost.com\/graphics\/2017\/business\/the-race-to-save-coffee\/?utm_term=.3e9e52a32945<\/a><\/p>\n

[15]<\/a> Bunn, Christian et al.\u00a0 \u201cA Bitter Cup: Climate Change Profile of Global Production of Arabica and Robusta Coffee.\u201d\u00a0 Climatic Change, <\/em>vol. 129, issue 1-2, 2015, pp 89-101, https:\/\/link.springer.com\/content\/pdf\/10.1007%2Fs10584-014-1306-x.pdf<\/a>.<\/p>\n

[16]<\/sup><\/a> Watts, Corey.\u00a0 \u201cA Brewing Storm: The Climate Change Risks to Coffee.\u201d\u00a0 The Climate Institute<\/em>, Sept. 2016, http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_24082016_web.pdf<\/a>.<\/p>\n

[17]<\/sup><\/a> Watts, Corey.\u00a0 \u201cA Brewing Storm: The Climate Change Risks to Coffee.\u201d\u00a0 The Climate Institute<\/em>, Sept. 2016, http:\/\/fairtrade.com.au\/~\/media\/fairtrade%20australasia\/files\/resources%20for%20pages%20-%20reports%20standards%20and%20policies\/tci_a_brewing_storm_final_24082016_web.pdf<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Climate change will disrupt coffee production across the world… can Starbucks survive?<\/p>\n","protected":false},"author":9788,"featured_media":26405,"comment_status":"open","ping_status":"closed","template":"","categories":[1218,3629,614,1815,612,615],"class_list":["post-26404","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-climate-change","category-climate-change-and-supply-chains","category-coffee","category-food-and-beverages","category-starbucks","category-starbucks-coffee","hck-taxonomy-organization-starbucks","hck-taxonomy-industry-food-and-beverage"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/rc-tom-challenge-2017\/","yoast_head":"\nFall Without Pumpkin Spice Lattes? 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