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An email is circulating regarding
Starbucks coffee pullout of Israel claiming Starbucks was boycotting Israel.
The author appears to be a person who meant well, but did not have all the
information and may have overreacted before getting the complete story.
Boycott Watch research indicates that Starbucks left
Israel for purely business reasons and there is no evidence to the contrary.
Starbucks had a joint
venture with the Delek Group of Israel to operate six Starbucks stores in Tel
Aviv as the Shalom Coffee Company. A mutual decision was made on March 31, 2003
to dissolve the joint venture due to "on-going operational challenges in the
market". In other words, the stores were not making money. Starbucks plans to
return to Israel when market conditions are more favorable.
Additionally, Claims that Starbucks closed their
stores based on "their position on Israel" is disingenuous for 2 main reasons:
1) If Starbucks had ill-feelings toward Israel, they would not have opened the
stores there in he first place, and 2) The founder and chairman of Starbucks,
Howard Shultz, is a prominent and highly respected member of the Jewish
community in Seattle. As such, Starbucks can hardly be called Anti-Semitic. The
decision to pull out of Israel was purely a business decision. |
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| Supporting Articles: |
| koshertoday.com: Starbucks Israel Reels from Continued Economic
Slump (web link found by Boycott Watch) |
| Israeli
business consulting company: Starbucks Dissolves Partnership With Delek In
Israel (web link found by Boycott Watch) |
| Israel Policy Forum article (PDF courtesy of
Starbucks) |
| New York Times
article (PDF courtesy of Starbucks) |
| Letter from a Starbuck VP (PDF courtesy of
Starbucks) |
| Anti-Defamation League report (web link courtesy of
Starbucks) |
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| Start Of Original email: |
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Subject: Starbucks closing its stores in
Israel?
Please Read and Pass It On.
I called Starbucks at 1 800
Starbuc and asked if it were true that they had closed all locations in Israel.
I spoke to Neil in Retail Customer Service.
He acknowledged that it was
true. I asked "Why?"
He told me that all Starbucks locations had
business partners. He said the partner in Israel was a company called Delek and
they had 80%.
I asked if:
1. Delek was an Arab firm and
2. (sarcastically) Did they use OIL in their coffee.
He said
'no' to both.
I said that in effect Starbucks had placed Israel on the
infamous boycott list. He agreed.
I, of course told him that I was a
Jew and that Starbucks would now go on my boycott list. He told me I had every
right to do so.
Disgraceful!!
Just heard that Starbucks Coffee
is closing all their stores in Israel.. Starbucks says that it is a business
decision, not a political decision.
They ARE NOT CLOSING any stores in
the Arab or Muslim countries.
Let us as Jews, let them know that we
will not patronize their stores for their position on Israel. When they lose
enough business, maybe they will get the message that we as a Jewish population
will not tolerate their actions.
We have to get the word out, so please
send this message to your relatives and all your Jewish friends and associates.
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| End Of Original email: |
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| Boycott Watch Note: Starbucks questions the
accuracy of the phone call transcription above. |
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| Start of Starbuck Press Release |
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PRESS RELEASE
SEATTLE; March 31, 2003
Starbucks Dissolves Joint Venture with the Delek Group of Israel Starbucks
commitment to international expansion in the region remains strong
Starbucks Coffee International, a wholly owned subsidiary of Starbucks
Coffee Company (Nasdaq: SBUX), and the Delek Group of Israel today have
mutually agreed to end their joint venture in Israel.
Following this
decision, Shalom Coffee Company, the joint venture between Starbucks Coffee
International and the Delek Group, will close its six Starbucks stores in Tel
Aviv. The decision to dissolve the joint venture has been due to on-going
operational challenges in the market.
"It was a very difficult
decision," said Mark McKeon, president of Starbucks Coffee International for
Europe, Middle East and Africa. "Following months of serious discussions and
market reviews with the Delek Group, we came to this amicable and mutual
decision. Our commitment in the market continues to be strong and long-term and
we will return at an appropriate time.
"As these are still very early
days of our growth, we are committed to making strategic decisions to help
ensure our future success," added McKeon. "We are very confident that the
acceptance of the Starbucks brand is extremely strong, and we remain committed
to our expansion plans and strategies in the region".
About Starbucks
Coffee International
Starbucks Coffee International is a wholly owned
subsidiary of Starbucks Coffee Company, the leading retailer, roaster and brand
of specialty coffee in the world, with more than 6,000 retail locations in
North America, Latin America, Europe, the Middle East and the Pacific Rim. The
company is committed to offering the highest quality coffee and Starbucks
Experience while conducting its business in ways that produce social,
environmental and economic benefits for communities in which it does business.
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| End of Starbuck Press Release |
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