Starbucks copycat in Ethiopia is begging to be sued (or so it seems)

Kaldi's coffeehouse in Addis Ababa, Ethiopia has a Starbucks-like logo and Starbucks-like decor, and its workers wear Starbucks-like green aprons. Kaldi's is the creation of a Starbucks fan who tried to bring the real thing to Ethiopia, but had to settle for a look-alike after the Seattle coffee giant rebuffed her partnership request. (NYT via Taipei Times)
> Read about the legend of goat-herder Kaldi

Comments

[ShiftKing]

why won't they license her to do sbux in ethopia?? no $$ there maybe? or is it a race thing?

[c]

Why would it be a race thing? That is the stupidest thing I have ever heard.

There are no Starbucks in Finland. OH MY GOD THEY HATE SCANDINAVIA! There are no Starbucks in Israel, OH MY GOD THEY HATE JEWS -- oh wait Howard Schultz is Jewish...

[Sanani]

Riiiiight ... a race thing.
Yeah, that must be it.
Why didn't I think of that?

:::shaking head:::

[James]

While sitting in the original Starbucks in the market I couldn't help but think how huge the company has grown since just this one little coffee shop.

[Klintron]

I'm sure you've all seen this by now, Boing Boing's round-up of other Starbucks knock-offs: http://www.boingboing.net/2005/07/25/starbucks_clones_of_.html

Scroll down this page for a pic of the "Star Cafe" in Prauge: http://www.timmorgan.com/photolog/vienna-prague/vienna-prague5.html

I also saw an identical Star Cafe in Heidelburg, Germany. They serve NesCafe coffee and I think they may be affiliated with NesCafe.

[Sanani]

BTW ... not only was it NOT a "race thing" - Starbucks doesn't license stores to individuals! Never has, and probably never will. The majority of stores are run by Starbucks Corporate. The stores you see in Target, Barnes and Noble, Safeway, airports, and highway rest areas , are corporate licensed stores. Those stores "proudly serve Starbucks coffee" but their employees are not actually employed by Starbucks.

Actually the licensed store starbucks are different than the businesses that 'proudly serve Starbucks' and Barnes and Noble is a combination of the two because they were the original company to offer SBUX.

Licensed stores have all the same stuff as a regular Starbucks. However they are run by private companies (ie. HMS-host, Safeway) and because of that don't have SBUX employees either. They also can sell stuff for a bit over regular store prices. They are built to look like Starbucks where Starbucks can't get to.

The other stores are stores through Business alliances. These are the restauarnts, major hospital food stands and what not that Proudly Serve Starbucks. They get special cups, etc. and have access to some of the epsresso drinks if they want. This is what private companies can get.

[walter10021]

actually I read a letter in the Times, well I just skimmed it, and it was about how coffee actually belongs to Ethiopia more than it does to Starbucks even though Starbucks feels free to steal all these Ethiopian coffee traditions and make big bucks -- that's capitalism, taking what belongs to everybody for yourself and then selling it back to them.

Walter10021

As it was said in Napoleon Dynamite

Boy, I don't understand a word you just said.

[Starbucks customer]

if starbucks does not want to invest in Ethiopia...too bad....that little store in ethiopia is really going to break starbucks...c'mon...what the hell they are getting coffee from there for a less than a dime...the west has made enough froma africa...copying startbucks is hardly something to them for...Oh if africa could sue everyone for abuses

[Sound of Ethiopia]

Just to bring up something to the ignorant mind, I went to Addis Ababa, Ethiopia recently and got back last week. This trip was my first. The things I found astonishing were was how beautiful the women are and how kind both the women and men are. Of course, I did have a chance to visit Kaldis and even saw how the waiters/waitresses serve. Trust me, you won't get such a service anywhere in Starbucks.You will get the same service regardless of your age. All you have to do is just pop in and take a seat. To be honest with you, it is Starbucks that may need to go there and see how the customer service could be improved by the side of Sbuks. And to you all, don't misjudge by what you are told, as it makes you look like a fool. Do like I did go and see for yourself and then you will see it is a land of opportunities ..... green and fresh .... have a plan to move there from my ancistor land England to 'the land of nature' Ethiopia. And can't wait to have a sip of my Machiatto at Kaldis

[Mikey]

Just a thought but perhaps Starbucks did not licence this person because she didn't have the experience they needed or history in which Starbucks would invest in. Would you hand over the rights to your company to any person asking for them when you are not willing to let your standerds and Mission Statement be harmed? Does this person have the ability to run a store and keep the Standerds of the Company in it and train people to be of the Starbucks Standerds?

Starbucks wants to know that if they hand there rights over to someone they have the ability to retain our Image and thats not anyone Regardless of where they are from or anything of that Nature.

David (Mikey) Yama

[bluebarista]

My God!
Let the poor Ethiopians have their copy-cat-coffee-shop.

Lard knows the economy up and in there could use a boost.

[Paul Manning]

The same thing happened in Tbilisi, Republic of Georgia: a local coffee shop and donut shop that served actual starbucks coffee put up the starbucks logo outside to advertise (not that anyone would have had the foggiest idea what it was ot what it meant). A year later, the logo was gone, the long arm of immaterial property in brand reached out across 12 time zones from Seattle and squished them.

[Kiddy]

Starbucks or not. everyone knows the best coffee comes from the orginal land of Coffee, Ethiopia,

[Max]

Dear All,

I think that starbucks should realize that there are so many people in Ethiopia who rely on coffee production and get paid peanuts!!!!And then on the other side we have starbucks who make huge amount of millions selling Ethiopia coffee using their name!!!That’s not right. Starbucks must pay a tot amount of money to Ethiopia as trademark coffee. That's the way should be, if we are not greedy and selfish and "if we want to help Africa countries to prosper"!!As protest I will not go to starbucks coffe chain for coffe and invite the others to do so.

[Ethiopia]

Starbucks blocks Ethiopia's attempt to trademark specialty coffee names that could generate an estimated annual revenue of $88 million for farmers

Global coffee giant Starbucks has blocked Ethiopia's attempt to gain more control over its coffee trade and secure a larger share of the earnings for millions of coffee farmers living in poverty, the Ministry of Foreign Affairs revealed today.

In 2005 the Ethiopian government, working with a stakeholder group that includes Ethiopian coffee cooperatives, filed applications to trademark its most famous coffee names, Sidamo, Harar, and Yirgacheffe. Securing the trademarks on the coffee names would enable the Ethiopian coffee sector – including the farmers and cooperatives – to earn more from its valuable coffee brands, increase its negotiation leverage through control of the names, and ultimately derive a greater share of the retail price in the global market. A small increase in export price could generate $88 million USD annually in additional revenue for the country's coffee sector.

Ethiopia's effort to gain more control of its coffee trade was dealt a severe blow when the $6 billion company Starbucks prompted protests to be filed at the US Patent and Trademark Office (USPTO) against Ethiopia's application. Starbucks intervened in the USPTO decision by prompting the National Coffee Association of USA, Inc. (NCA), of which it is a leading member, to oppose the approval of the trademarks. This move has led to the USPTO's decision to deny Ethiopia's application for Sidamo and Harar.
"Despite the very high retail value Ethiopia's world-renowned coffees command in the international market, Ethiopian farmers live in extreme poverty, on less than $1 a day," said Amb. Solomon Abebe, Press and Information Director General for the Ministry of Foreign Affairs. "The 5-10% of the retail value the farmers currently receive barely covers their cost of production."

As the 6th largest producer of coffee in the world, and the largest African producer and exporter, Ethiopia has for decades supplied the international market with high quality coffees at prices just above commodity price levels. If Ethiopia succeeds in trade marking its coffee names, the extra few cents per pound these coffees earn in the global market would help bring about a significant difference in the lives of Ethiopia's poor farmers.
The Ethiopian government is asking Starbucks and other companies to sign voluntary licensing agreements acknowledging the country's ownership of the coffee names , stating that additional benefits generated would go to small-scale coffee farmers. The agreement requires companies to acknowledge Ethiopia's ownership of the names, regardless of whether they have been issued a trademark. The Ethiopian government asked Starbucks to sign this agreement back in September but the company has made no effort to provide a favorable response to date.

Oxfam, an international development organization working on behalf of Ethiopian coffee farmers who are struggling to get a fair price in the global market shares the concerns of the Ethiopian government regarding Starbucks' opposition to Ethiopia's plan to trademark its specialty coffee names. The Ethiopian government asks Oxfam and other concerned organizations to continue supporting the Ethiopian people and government in preserving the country's cultural heritage as represented by the names of the coffees.

The Ethiopian government strongly urges Starbucks to recognize Ethiopia's rights and do right by its people by signing the licensing agreement.

[Theolaxor]

OR HERE'S THE ALTERNATIVE:
Starbucks could act like every other coffee company and pay even less for the Ethiopian coffee, OR they could not buy it at all! What I'm saying is that the Ethiopians should be glad that a corporate giant like Starbucks cares enough to at least recognize their product.

[Laura]

Wow. That's a bit like saying "Don't leave your verbally abusive husband, at least he doesn't beat you." You should never give up the fight for what you deserve out of the fear of losing what little you have.

Not only that, but coffee drinkers will seek out what they want to drink, and believe it or not Starbucks DOES have competition.

[Michael]

Ethiopians should be glad Starbucks buys their coffee????? Let me tell you something Mr or Mrs whoever you are Starbucks doesn't even put a dent in the total export of Ethiopian coffee see the problem is people like you supporting these idiots who expliot and stop poor countries from becoming self sufficient all need a wake up call.
GET YOUR FACTS STARIGHT DUMMY!!!!!!!!!

[super-visor]

well of course the problem is that if the prices do go up a "few cents a pound" which will equal "88 million a year" that really means companies currently buying ethiopian coffee will be SPENDING 88 million a year more. not just starbucks, but everyone who buys it. Dont you think they will just get their coffee from elsewhere?

read about starbucks relationship with ethiopia
http://www.starbucks.com/aboutus/pressdesc.asp?id=713

[visitor]

My be Starbucks should do more to support the poor famers in Ethiopia by investing in farms and increase the subsides to the farms, so the production will increase....

[Becca]

Visitor, PLEASE read the rumour responses on starbucks.com

Just so that all the ignorant idiots out there know, 2 of the 3 people that founded Starbucks were Ethiopian. Starbucks abuses its power as a MNC and continuously buys its coffee off of Ethiopian farmers and pays them nothing. Leave Kaldi's the fuck alone - seriously. Do right by the people you're screwing over before you expect them to do right by you.

[Tim]

Yeah, visitor/anonymous: looks like YOU'RE the ignorant - maybe you should try not to believe the bull that Oxfam is force-feeding its armchair socialist supporters... yikes...

[Imbilta]

COFFEE LOVERS,

It's always good to know knowingly OR unknowlingly WHAT YOU YOU CONTRIBUTE TOWARDS when you drink Sbucks' coffee.

Please READ: http://www.maketradefair.com/en/pages/starbucks_fax.html

[Teklemariam]

Oh… my! The multi-national grasshopper is happy sucking the blood of poor Ethiopians and acting as a fair player in the eyes of its customers. It is blood money, like the blood diamond of Sierra Leone , Starbucks is enjoying the blood of poor Ethiopian farmers. Starbucks has the financial power against those poor farmers to enhance the plight of their misery, but… please… don’t act as a saint. You attempted to steal the coffee legend of those poor farmers, when failed you retaliated by blocking the poor farmers not to register their trade marks by moving your $7 bln muscle. Please…do not preach your blood-sucking strategy as noble mission.

I read the CEO of Starbucks is going to Ethiopia, to do what? Is it a strategic plan for a more blood-sucking mission? Why don’t you add ‘Blocking Poor Ethiopian Farmers’ in your mission statement? You work hard for it, I think you do deserve it.

[des_pes]

In Tokyo, Japanese swarm a starbucks near a train station whereas a few steps away a Japanese mom&pop shop sell awesome coffee for fraction of the price with small snacks included (free of charge). it amazes me people act like herds of sheep a go dump their hard earned money for cup of garbage in starbucks. Incredible.

[roy smith]

The last time I was in Ethiopia it was hard to find a decent cup of coffee. while rafting down the Omo river in 1980 we came across coffee smugglers who were ferrying sacks of the beans out of Jimma, for the high rollers in Addis, and making a perilous crossing of the river. The government had a high tax on coffeee at that time to discourge local use - they wanted it all for the export market, to earn important foreign currency. We're heading to Ethiopia again in December. We'll be taking our own Starbuck coffee - just in case. Like coal to Newcastle...
Good luck to the Gal in Addis. I'll be looking for her and a good cup of Arabica.

[sam retes]

The truth is, in Ethiopia, you can live on $1 a day. It's all relative, they're not that poor! Ask anyone from Japan how increadibly broke I am living on my $100 a day!!

[sam retes]

Hey Max? Starbucks is not just about coffee. Try it sometime, maybe you'll make a friend!

[johnny]

In my opinion it's not a good thing to judge anythng without any enough information. i just happen to know the kaldi's coffe house's owner and she was trying to bring something different thing in Ethiopia but the starbucks company won't let her dream come true, but she didn't give up she creates her own thing. i think we should appritiate plus not just that she opens many job opportunities for so many people. she didn't just sit and complain about it she did something that can inspire every each one of us. i think starbucks didn't give her the license because they thought it woulnd't work out but right now there are about three branches, that's a big accopliciement and personally im proud of her. for all of yall who said some things about this young lady, im not going to say something bad because im humanbeing and i can think but first make sure you have all the information before you say anything.

[Light Years IP]

Starbucks is “flat wrong” in calling Ethiopia’s licensing efforts illegal

Top U.S. law firm Arnold & Porter LLP refutes Starbucks’ VP claim that signing a license agreement with Ethiopia would be against the law.

Addis Ababa. Starbucks is misleading the public by claiming that Ethiopia’s efforts to trademark its prized coffee brands and license international distributors are illegal, says Robert Winter. Winter is partner at the Washington DC-based law firm Arnold & Porter LLP which has been advising Ethiopia in these efforts. Winter stated publicly today: “There is nothing illegal or unlawful about Ethiopia's program to obtain trademark protection for its coffee marks.” And he went on: “Moreover, there is nothing unlawful about Starbucks entering into a license agreement that acknowledges Ethiopia's trademark rights. To make this claim is flat wrong. Indeed, we believe that Ethiopia already enjoys effective trademark rights in its marks through widespread use of those marks for more than 75 years.”

[Xavier]

It's funny that in this forum topic, no one has mentioned all that Starbucks does to help out the people in Ethiopia and other third world countries. No one mentioned how much money is donated by Starbucks partners (aka: employee's) for the people of the different regions in which their beans are grown. Is it not Starbucks Corp and it's partners that made it possible for rural Ethiopian villages to have water pumps in order for them to not walk miles to collect water? The answer is, "yes".

[wayne]

gee thanks! i got a water pump paid for by the poorly paid retail employees!

thanks!

could you drop more bread crumbs from your private jet next time you fly over us?

thanks.....

[El Zed]

Dude, who ever said Starbucks was first owned by Ethiopians ... We'd never do that to our own people. Kaldi's is a great place to hang out. Best coffee in the country, best service. To the owner of Kaldi's "You go, girl!!" And Starbucks : " Babylon system is the vampire, sucking the blood of the sufferers!" - Bob Marley.

[anne]

you guys need to get your head out of your ass. starbucks doesn't help anyone, they are in it only for money just like every other corporation on this earth. you think paying 3 cents to ethiopia for coffee is helping the ethiopians and that they should be grateful? if someone took your home and job and family away and then gave you an orange and an electric blanket (remember that you don't have electricity anymore and perhaps your fingers have been macheted off) would you be grateful?

[Magda]

From all the above comments, the only one that makes any reall sense is Max's. I agree that sure countries have taken more from Africa than they'll ever return- but that is NOT the point. There is no law obligating Starbucks to share its revenue with any Ethiopian, no less hand over their brand name.
The real point is that Ethiopian farmers are not receiving what they deserve for their trade. This is a matter of ethics over business -Coffee just so happens to be Ethiopia's main source of revenue, so a few bucks our way will NOT end the poverty left behind the last mess westerners left behind. So again, Starbucks is under no obligation to sell coffee here but if its going to keep cheating Ethiopia out of what it deserves, the least it could do is leave Kaldi's owner Tsede Asrat to help a stugling economy.

[private jet service]

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