Happy holidays! As National Coffee Day comes to a close, it feels most appropriate to top off this rush of energy one might be feeling from the holiday festivities with weekly dose of Starbucks news. This week, the corporation indulged in EU Tax Cases, Chinese franchising debates, and another themed drink that is fitting for the fall season.
Wall Street Journal has recently been following a case in the European Union (EU) that targets Starbucks’ illegal interference in the Netherlands. After thoroughly analyzing the documents provided, the court decided that “Starbucks did not benefit from the illegal aid in its tax dealings in the Netherlands” (as stated by Valentina Pop in this WSJ Article). The publicity gained by this case could be a significant factor in the performance of the company’s stock over the past week, but it also serves as a sign for future cases that deal with similar topics. However, I see this case as a setback for the corporation because it loses the client’s trust. Without this trust, Starbucks could potentially lose their fan base. On the contrary side, the common saying of “no publicity is bad publicity” could also apply to this scenario, but only time will reveal the truth to this statement.
Another important story has to deal with the emergence of protests and boycotts against the Starbucks industry in Hong Kong, pictured below.
These protests originated over unrest in Maxim’s, the company that Starbucks pairs with in Hong Kong. Many people are calling for Starbucks to cut off it’s franchising deal with Maxim’s because of some criticisms made about the company, and the protests are beginning to reach better-known individuals in the community. If Starbucks were to pull out of this deal, there would be significant repercussions on both sides. According to released financial information, Maxim’s makes up a significant part of the Hong Kong business world, meaning that Starbucks has an equally significant role. I think that Starbucks should wait to see if the protests diminish before taking their next step in this process, but other than that aspect, the fate of this conflict is unpredictable.
Lastly, there has been another development in the spooky spirit for Starbucks drinks. This leaves the company on a brighter note, giving us a true reason to celebrate National Coffee Day. A common favorite in the Halloween movie genre is The Nightmare Before Christmas, and a new drink floating around on the Starbucks Secret Menu is modeled after main character Jack Skellington, a product that I think will be more delightful than last week’s development.
For the last set of festivities for National Coffee Day, it is only customary to end the article with a look at the stock, which has continued to experience a downward slope, and my weekly drink recommendation. For my recommendation, I suggest a much simpler drink that will both quench your thirst from the heat wave we are expecting on Wednesday and refresh your spirits halfway through a day of work: a peach green tea lemonade. This drink combines so many flavors that it leaves a sweet, yet satisfying taste after the last sip. With that comment, I leave this article with a picture of the stock and my sources. Happy caffeinating!
- Sources:
- https://quotes.wsj.com/SBUX
- https://www.wsj.com/articles/eu-court-sides-with-starbucks-in-tax-case-11569314810
- https://www.bloomberg.com/opinion/articles/2019-09-29/starbucks-china-strategy-tested-by-hong-kong-protests
- https://www.bustle.com/p/how-to-order-starbucks-jack-skellington-frappuccino-off-the-secret-menu-18808415
Jenna Kurtz 