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Fairtrade is the Right Tone for Rwanda

June 29, 2009

Analysis of:Starbucks and Fairtrade Partner in Rwanda | www.flex-news-food.com

Fairtrade is becoming one of the driving forces in CSR programs.  Not only is it good publicity, but it has a proven track record.  In today's business climate, Starbucks is smart to commit to a certified and audited third-party verification service.  If other products are available fairtrade would be more attractive. Fairtrade is trending upward in popularity.  Brands like Starbucks need to tread a careful line to ensure that the coffee in the shops is also actually fairtrade certified.

Petty Cash

September 5, 2008

Analysis of:GM Sues to Recoup $450K in Employee Discounts | www.forbes.com

1.  This article shows how far the #1 has fallen. 2. Winning companies don't harass their customers.3. Employee feedback and discipline should be done one on one, face to face, not with attorneys in the press.  See #1.

Organic Food's Blend of Health and Science Retains Value in Recession

May 2, 2008

Analysis of:US Growers Should Prevent Food Recession | www.thepacker.com

Whether you like it or not, organic farming is based on sound science.  Nutrient values, drought resistance, resistance to wind damage and heavy rain damage make it less risky than biotech or conventional crops.   This farm side argument, coupled with the built in low use of petroleum based inputs, and locally grown buyer philosophy add up to a sound investment in times of trouble. Steady growth of 20% for the past 20 years has attracted market attention.  More attention will be paid as carbon cost and water cost is added into the base price of food.

Seiyu Becomes Wal-Mart Does Not Equal Profitability

April 17, 2008

Analysis of:Wal-Mart buys rest of Seiyu | www.retailingtoday.com

Seiyu is the fifth largest national retailer in Japan so the news is important from a brand and a distribution perspective. The clientèle of Seiyu, which is not a premium brand, do match the Wal-Mart clientèle in the US. From Wal-Mart's perspective this is the final stage of their re branding of Seiyu to Wal-Mart. In my opinion this will be a very long term transition, at least 5-10 more years prior to breaking even.

Price increases mean size decreases

April 16, 2008

Analysis of:World Bank echoes food cost alarm | news.bbc.co.uk

Commodity price increases will hit both large and small restaurants hard.  The key will be how they respond. The logical response is that they reduce portion sizes.  Portion sizes are already overwhelming and food waste is business cost.   Reducing portion sizes will be a health and bottom line boost to all concerned.

The Last Days of Cheap Chinese mean The Best is Yet to Come

April 11, 2008

Analysis of:The Last Days of Cheap Chinese | www.slate.com

This article is must reading for anyone in China and anyone planning their next step.  The new era which we are entering will have China no longer as the workshop, but Chinese brands are the next logical step in this evolution. Readers learn where they may have erred on strategy, namely moving whole hog into China while sacrificing domestic production. The end result, increasing prices do to environmental breakdown, have been forecasted by the World Watch Institute for the past 20 years.  It could finally spell the end for undereducated U.S. centric thinking CEOs, but that is of course doubtful knowing that the board members are most likely cut of the same cloth.

Hedge Now, Pay Later

April 11, 2008

Analysis of:Against the Grain: Food Firms Hedge Costs | online.wsj.com

Food firms are continuing to do business in the old model, and have yet to lock in to the changes that will affect agriculture for the next 20 years. Certainly hedging against price increases is a valid strategy which won't change.  However it isn't the only or even the most important strategy that should be considered. The game of food procurement, processing and selling it as value added has changed but the models have not.   A new brand strategy, focused on the consumer is needed to ride out the new realities that the new volatility environmental changes have introduced into procurement costs.

Starbucks: The Burger "Special Orders Won't Upset Us" King of Coffee Fast Food

April 10, 2008

Analysis of:Starbucks New Strategy | topics.nytimes.com

Share price slides happened when Starbucks customers slowed and declined for the first time prompting shareholders to sell. Macro cost trends for Starbucks materials are not supporting their current strategy. The strategy needs to focus more on where the high end is going in retail which is to environmentally friendly and luxury experience.  The Starbucks experience in the U.S. has not changed since the companies beginning, but did cheapen with automation. Meanwhile the definition of luxury has shifted.  This article shows that Starbucks has not changed its strategy, but readjusted its current strategy. 

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