[Dialogue] Starbucks CEO Meets with Ethiopia Over Ownership of Coffee Names; Oxfam Calls On Starbucks to Move Forward On Trademark Issue

[Harry Wainwright]

FOR IMMEDIATE RELEASE
NOVEMBER 29, 2006
12:12 PM

CONTACT:  Oxfam America 
Helen DaSilva 617-728-2409 or 617-331-2984, or Laura Rusu 202-496-3620 or
202-459-3739

 

Starbucks CEO Meets with Ethiopia Over Ownership of Coffee Names; Oxfam
Calls On Starbucks to Move Forward On Trademark Issue

 

WASHINGTON - November 29 - International aid agency Oxfam welcomed Tuesday's
meeting between Starbucks CEO Jim Donald and Prime Minister Meles Zenawi,
but urged the international coffee giant to stop dragging its feet before
the holidays, and instead recognize Ethiopia's ownership of its coffee names
and the enormous benefits that ownership could bring to the 15 million poor
Ethiopians who depend on coffee for their livelihood.

"It's significant that after a year of trying to engage Starbucks on
trademarks, the company finally sat down to discuss the issue directly with
Ethiopia," said Seth Petchers, Oxfam International's Make Trade Fair
campaign coffee lead. "Starbucks must now follow up with immediate action to
recognize Ethiopia's rights to own the names of its coffees to ensure that
coffee farmers get a fairer share of the value of their crop."

Ethiopia's farmers produce some of the finest and most sought after coffees
in the world-including coffees that have been sold under Starbucks' Black
Apron Exclusives line for up to $26 a pound-but receive only 5 to 10 percent
of the retail price, in a country where millions live on just a dollar a
day. Ethiopia is working to gain greater benefits for its coffee growers by
seeking control of its coffee names, a move that would give Ethiopian coffee
farmers a fairer share of the profits in the global coffee trade.

"Small-scale coffee farmers are economically vulnerable, in part because
large foreign buyers, such as Starbucks, are dictating trading conditions
with their extraordinary market power," continued Petchers. "If poor
countries are able to obtain trademarks for unique, locally grown products
like coffee, they can capture more of the value of their products for the
benefit of the people who produce them. This initiative is a significant and
innovative approach to alleviating poverty."

For over a year, Ethiopia has sought a dialogue with Starbucks about
supporting the country's efforts to return more of the price of its coffees
in world markets to the farmers who produce them by seeking trademark rights
for Sidamo, Harar and Yirgacheffe coffees. Despite its much-publicized
commitment to farming communities, however, Starbucks has continually
rejected Ethiopia's requests to resolve the trademark issue. Absent that
step, no agreement was reached at Tuesday's meeting.

"This is a rights issue and we deserve to have our rights recognized. We
strongly believe that trademarking is the way to go," said Prime Minister
Meles Zenawi. "The right to own our coffee names is the only way that we can
preserve our rich coffee heritage; Ethiopia has an obligation to coffee
consumers worldwide to protect and preserve our unique coffees."

Legal and intellectual property experts have supported Ethiopia in its
approach, expressing the opinion that the trademark and licensing project is
a viable solution to the poverty that plagues Ethiopian farmers. Trademark
rights for Ethiopia's coffees have also been recognized in several European
countries, as well as Canada and Japan.

"Our coffees are some of the best in the world and although they often sell
for two and three times the cost of other coffees, we are getting a tiny
fraction of this price," said Tadesse Meskela, manager of Oromia Coffee
Farmers Cooperative Union who is featured in the new documentary Black Gold.
"Our objective here is to return more money to the coffee growers' pocket."

Last month, Oxfam launched an international public campaign to encourage
Starbucks to engage with Ethiopia directly on the issue.

"Over 85,000 people around the world have joined Oxfam in calling on
Starbucks to do right by Ethiopia's coffee farmers and sign the licensing
agreement," continued Petchers. "Oxfam and its supporters will continue to
work with the Ethiopian government, coffee growers, and exporters to
encourage Starbucks to come to a mutually beneficial solution that could
make a world of difference for millions of poor people."

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