News

COMMENT: Starbucks' diversity through ethics

Most popular

Pernod is buying Malfy for the flavour - comment

The just-drinks Analyst returns

Is Carlsberg treating consumers like suckers

The just-drinks Analyst returns

Oddbins owner considers sale - just-drinks thinks

MORE

Starbucks has launched a bottled water product to help raise money for global clean water efforts.

Starbucks has introduced a bottled water product named Ethos, sales of which will contribute to helping alleviate the world water crisis. The product fits in well with Starbucks' attempts to play the corporate social responsibility card and is also 'on-trend' as it capitalizes on the ethical consumerism movement and the growing popularity of bottled water in line with healthy eating trends.  

Starbucks has taken up the cause for safe drinking water, rolling out Ethos across its US stores. With plans to donate five cents per bottle sold, the company is hoping to contribute US$10m over the next five years to boost clean-water supplies in poorer countries.

Ethos was acquired by Starbucks in April but has been available in the US for some time, in stores such as Whole Foods. This relative brand familiarity and the perception of it being established independently of a global player like Starbucks may help initial marketing efforts.

The cause-related marketing initiative complements Starbucks' recent focus on increasing its commitment to socially responsible practices, including providing ethically-produced coffee. Cause-related projects have become an increasingly popular way of connecting with consumers as they tap into shared attitudes and values.

Specifically, Ethos aims to help children gain access to clean water. According to figures quoted by USA Today, nearly a fifth of the world's population lacks safe drinking water. Given this, it is perhaps unsurprising that Procter & Gamble is also focusing on the crisis with its Pur system.

Also important from Starbucks' perspective is the fact that Ethos will add to the diversity of products offered. Consumers often purchase hot and cold drinks simultaneously and water is frequently chosen to alleviate the thirst-inducing effects of coffee.

The fact that growth of bottled water sales in the US is continuing unabated provides further optimism about Ethos' introduction from a commercial perspective. Indeed, the US bottled water market is forecast to be worth US$18.9 billion in 2009, up from US$13.8 billion in 2004.
 
Finally, although critics would suggest that many organizations' commitments to charitable causes are merely attempts to assist the bottom line, the multi-million dollar donations of companies such as Starbucks will hopefully make a difference to the lives of those in need.


Sectors: Soft drinks, Water

Related Content

This week's financial market 'corrections' - Should you worry? - Comment

This week's financial market 'corrections' - Should you worry? - Comment...

What does the future hold for bottled water? - Comment

What does the future hold for bottled water? - Comment ...

This week in spirits & wine, featuring Diageo's use of data for marketing purposes, just-drinks & The IWSR's' latest Scotch whisky research and what consumer cut-through for cocktail competitions?

This week in spirits & wine, featuring Diageo's use of data for marketing purposes, just-drinks & Th...

How can mineral water keep pace with its bottled water competition? - Comment

How can mineral water keep pace with its bottled water competition? - Comment...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?