Starbucks Coffee Company

It was important to them that the city of Seattle to have access their coffee. Starbucks Coffee Company was founded in 1971 by three businessmen in Seattle, Washington who had a love for coffee and tea.

The Starbucks Coffee Company grew slowly but by 1981 had 4 retail stores and a roasting plant that sold whole bean coffee in Seattle only.

Within 2 months the new store was serving over 700 customers a day and it was selling 3 times more than the whole bean locations. When Starbucks Coffee opened its 6th store in downtown Seattle, the idea had become a hit. By 1983 the marketing manager had a vision of re-creating the magic and romance behind the Italian coffee bar and wanted to test out the concept of selling espresso by the cup.

In 1987, the owners of Starbucks Coffee Company decided to sell their coffee business along with the name to a group of local investors for $3.7 million.

Starting from a base of 17 stores in 1987, the company expanded rapidly to Vancouver, Portland and Chicago. The new investors were told that they would open 125 Starbucks coffee stores in the next five years.

By 1991 Starbucks had expanded into the mail-order catalogue business, licensed airport stores and expanded further into the state of California.

In 1992 the company went public and after the initial public offering, Starbucks continued to grow at a phenomenal pace that no one had ever seen in the coffee world before. By 1997 the number of Starbucks Coffee stores grew tenfold, with locations in the US, Japan and Singapore.

Starbucks initiated several successful product and brand extensions including offering coffee on United Airlines flights. They also began selling premium teas through its Tazo Tea Company and offering people the option to purchase starbucks coffee online to enjoy at home.

They began distributing whole bean and ground coffee to supermarkets through an agreement with Kraft Foods. They also produced premium coffee ice cream with Dreyers. Starbucks even sold CDs in its retail stores.

Starbucks began turning its name into a household word not through advertising but through word of mouth. In fiscal 2004, Starbucks opened a record 1,344 stores worldwide. The once small regional roaster, Starbucks Coffee Company, now has more than 9,000 locations in 34 countries serving over 20 million customers a week.

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Bali - Coffee on Island of the Gods

Hopefully with a peaceful election campaign behind us, Bali will again see tourists returning in numbers. Since October 2002 the island has seen a marked downturn in the number of foreign tourists arriving to enjoy the scenic, cultural and religious diversity found here. Many Indonesians refer to this slice of paradise as "Pulau Dewa" or "Island of the gods". Bali is known by many names to those who have visited the island.

The growing conditions in Bali are ideal for coffee trees, and small-scale production quickly spread in the cooler, higher altitude areas of the Island. The Robusta in Bali most likely came via traders from Ampenan in Lombok. By this time the big plantations in Java, Sumatra and Sulawesi were already well established. Commercial Colonial plantations never made an impact in Bali because the Dutch did not get any degree of control over the island until the 1900's. The origins of Robusta here can be traced back to the beginning of the 20th century or earlier. This is the coffee that many tourists visiting the island experience and love. Traditionally Balinese coffee was of the robusta variety. Our visit to Bali in March was not a holiday, but rather a visit to look at the cooperative growing system for Arabica found in the highland areas of central Bali.

Our visit was to examine the drying and processing facilities for this mountain grown Bali Arabica. Some of these plantings are in commercial plantations, however the bulk are beans grown by small-holders in a number of villages saddling the volcanic peaks. In recent times, with Robusta prices falling, Arabica has been planted in several areas of the Island.

After drying and Prior to drying the cooperative removes poor quality cherries- usually berries that are not ripe, have evidence of surface fungal diseases or berries that have been damaged by birds or other pests. The coffee is raked regularly to ensure the drying proceeds at a constant pace. This involves laying the fruit out under the sun in large, flat concrete drying pens. The small holders almost universally follow the dry method of processing the beans. Most coop growers are uncertified organic- the costs of pesticides against the price for the finished bean do not make sense. In Bali the yields from the trees in raw cherries is very good. In most cases the growers are more than happy to listen to ideas on how to improve the finished quality of their product. Our concern is always to look for a way in which to help these small growers to improve their picking, drying and sorting processes in order for them to be able to market their coffee to the specialty coffee market outside of Indonesia. As in the rest of the coffee world, the small-holders make up the bulk of the growers, but receive little real financial reward for their efforts.

A very mellow, slightly honey-dew taste…..We are looking forward to later in the year when we will be in Bali for the harvest of the bulk of the 2004 crop. Test roasting resulted in us deciding that the dry-processed bean had some characteristics reminiscent of the lower altitude Java Arabica beans. The colours and firmness of the bean are good, as was the general quality. We like the early season greens that we saw in the highlands of Bali.