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      By the time a pound of coffee arrives at the grocery store or local Starbucks outlet, it has already passed through a series of economic linkages between the producer and the consumer, known as the value chain (Dicum and Luttinger). After the coffee is grown and harvested, the farmer removes the seeds from the cherry and washes and dries the beans.

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      Starbucks management has been trying to refocus on the things that made the company so successful. For example, Starbucks stores across the United States recently shut down for a short period of time for retraining, and the company has worked to make sure you can smell the fresh ground coffee aroma when you enter the store.

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      Many coffee shops sell whole or ground coffee beans for home consumption. Some coffee shops sell coffee or espresso-making equipment, grinders, mugs, and other accessories. (First Research) Market Size. The US coffee shop industry includes about 20,000 stores with …

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      In the specialty coffee market, the closest is Caribou Coffee, which has 415 stores in the United States, which is less than 5% of Starbucks' 11,000 and counting. Its most intense specialty coffeehouse competition is dispersed among the thousands of independent or small-chain coffee shops around the nation and the world (Company Profile 1).

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      Starbucks operates in the restaurant industry founded by Jerry Baldwin, Gordon Bowker, and Zev Siegl in 1971. When the company was founded, it was a roaster and retailer of whole bean, ground coffee, tea, and spices with a single store in Seattle’s Pike Place Market.

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      Coffee Corps interventions in Ethiopia began by working with an NGO, ACDI/VOCA, and was an early example of the importance of having a good local partner. The work on coffee processing, in particular the focus on natural (unwashed) processing, led to Starbucks promoting use of this technique which has provided them with black-apron coffees.

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      When Schultz first joined Starbucks in the early 1980s as director of retail operations, Starbucks was a local, highly respected roaster and retailer of whole bean and ground coffees. A business trip to Milan’s famous coffee shops in 1983 opened Schultz’s eyes to the rich tradition of the espresso beverage.

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      Each of these coffee beverages is based on a ‘shot’ of espresso, which is prepared in the espresso machine by forcing heated water through ground coffee at high pressure. Such espresso shots are combined with steamed milk and/or other additives like cocoa, caramel, etc., to prepare the espresso-based beverages.

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      Instant Coffee $260 $227 $210 Coffee Mix $200 $214 $275 Canned Coffee $150 $171 $213 Roasted/Ground Coffee $41 $36 $35 Total $651 $648 $733 Source: Nielsen Data: Food Distribution Yearbook, 2003. Korea imported $93 million of coffee in 2003, including unroasted and roasted beans and instant coffee.

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      Starbucks offers whole bean coffee, from around the world, as well as Starbucks Reserve Coffee, which Starbucks chooses from coffee plants worldwide to offer exclusively in their stores. They also offer VIA Ready Brew coffee packets that come flavored and non-flavored as instant coffee mix (Starbucks Coffee Company, 2011).

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