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BCHC Introduces New CEO

by on April 25, 2011

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Marketwire – Management Changes:

NEW YORK, NY–(Marketwire – Apr 25, 2011) – BoNa Coffee Holdings Corp. ( PINKSHEETS : BCHC ) is excited to announce the appointment of Rich Cabael as President and Chief Executive Officer of BoNa Coffee Holdings Corp.

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Ty Fujimura: Behind the New Starbucks Logo — a Siren’s Trick

by on January 13, 2011

Starbucks’ logo is going decaf. This week the company revealed a new mark depicting the famous siren freed from the ring of overbearing type which surrounded her on earlier versions. The well-received icon is both modern and classic, the end result of minimalism done right. In confidently removing the Starbucks name the company is declaring itself so recognizable that a label is not necessary. But more intriguing is the omission of “Coffee,” a strong hint that the company has larger plans in mind. In a promo video for the new mark, CEO Howard Schultz provides further evidence that a movement is afoot. “We’ve allowed her to come out of the circle in a way that I think gives us the freedom and flexibility to think beyond coffee,” he says, before quickly assuring any change-averse viewers that Starbucks is and always will be a coffee company. Hidden behind the aesthetic improvement of the new mark is the latest confirmation of the company’s inevitable transformation into Starbucks, Inc. Like Apple before them, Starbucks is poised to move beyond what got them this far and embrace their role as a global superbrand, one worthy of such a bold logo. Starbucks has been moving from local shop to Big Coffee for two decades, but the new mark represents a final break.

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Ty Fujimura: Behind the New Starbucks Logo — a Siren’s Trick

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New Trend: Not Paying The Bill, And ‘Free Swiping’

January 12, 2011

Hard times for New Yorkers means inventive ways of cutting back — like stealing meals and subway rides! At least that is the trend we are reading about today, as two reports of civil disobedience (or one, if you don’t count flat-out stealing as something Thoreau would have condoned) are becoming trends in the city. The New York Post says that in 2010, there was a huge increase in reports of those who bailed on a check at a restaurant. Eating in a restaurant and leaving without paying the tab — known in police parlance as “theft of service” — rose almost 20 percent in the city last year, up from 315 arrests in 2009 to 376 in 2010, according to the NYPD. Of course, those numbers don’t include the many scofflaws who successfully “lick and split.” The Post tells the story of a well-dressed man who bought five martinis at Union Square’s posh Coffee Shop. He told his waitress he left his wallet in his car, and never came back. Or the drunk 20-something who racked up a $300 bill at BB Kings, but “it wasn’t until they saw a pedicab passing by that they decided the night’s bill would be on the house.” Explaining, “Sometimes you’re drunk or, I don’t know . . . ” Why the sudden spike in service theft? Russia Today seems to have the answer. With falling wages, cuts in benefits, and alarming public transportation fare hikes, New Yorkers are fighting back with their own brand of economic disobedience. The video below is about the People’s Transportation Program, an organization that is purchasing unlimited Metrocards and giving people free rides as a protest to the recent MTA fare increase ($104 for a monthly unlimited!). Though perhaps a more common loophole in the Unlimited are those who ride the subway in tandem and share a Metrocard, waiting fifteen minutes before swiping the same Metrocard again. [ VIA ] WATCH:

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Video: Coffee Says Hedge Funds Are in `Government’s Crosshairs’

December 16, 2010

Dec. 16 (Bloomberg) — John Coffee, a securities law professor at Columbia University, discusses the expansion to companies of the federal investigation into insider trading at hedge funds. Three people who worked at technology firms including chipmaker Advanced Micro Devices Inc. were arrested along with an “expert networker.” A fifth man, Daniel DeVore, formerly a supply manager at Dell Inc., pleaded guilty in federal court in New York on Dec. 10 to conspiracy to commit securities fraud and wire fraud as part of the probe, prosecutors said today in a statement. Coffee speaks with Carol Massar and Matt Miller on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Video: Coffee Says Kinnucan Didn’t Do Anything Unlawful

November 24, 2010

Nov. 24 (Bloomberg) — John Coffee, a securities law professor at Columbia University, discusses the federal investigation into possible insider trading at hedge and mutual funds. John Kinnucan, who runs Broadband Research LLC, has been questioned by the FBI, putting a spotlight on money managers and their use of a burgeoning breed of firms selling research and access to industry experts. U.S. authorities in New York today arrested Don Ching Trang Chu, who worked for an expert-networking firm, on charges that he arranged for insiders at publicly traded companies to improperly provide information to hedge-fund clients. Coffee speaks with Julie Hyman on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

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Richard Laermer: It’s October; Let’s Work!

October 7, 2010

Here we are, in one of two months where we are actually supposed to work. Funny, right? No. Not really. This is the true month of our discontent. We have nothing getting in the way of us accomplishing all the goals we have set in front of our faces. Think about this: All the other months (except June, strangely) have something that gets in the way of actually getting something done. You have a holiday here (January, February, March, April, May…), a slowdown here (July, late November to January 1) an urgently “deserved” week away (August) and then the malaise of September when Labor Day seems to be an excuse to wonder whether labor makes sense at all. We used to call that daydreaming. But October, ah the sweet smell of October. That wonderful odor is sweat! It’s what happens when “workers” (me and you) start to buckle down… Hey, who came up with that buckle down saying? What an ass! But I can’t digress per usual because I actually have some work to do and this essay is getting in the way. Remember to accomplish a ton during these 31 days because there are no reasons for us to be anything but working, all the time, every single day, with all our might and with no excuse to stop, no whining, no away days, not a single solitary day of the week that will get in our way. While I have your attention can I have a second to discuss inherent laziness? Lazy is not when you don’t show up for work and instead hang on the couch watching Jeffersons reruns. It’s also found in the language (“Sounds good” is simply stupid) that we use sparingly. After nearly 20 years of cell phone tech I am headshakingly bewildered by a growing number of people who still use speakerphones to have complete and information-filled conversations while standing on line at Coffee Beans, Peets or Starbucks. Is a headset really expensive? Or have we all turned into exhibitionists? I’m back. Let’s remember you now have six-and-a-half glorious weeks until the next four day weekend! Time to work! Have you noticed how much people do little (yes, I see the bad grammar) when what looks like a vacation rears its fabulous head…. I know I sure slow down. I want to take this opportunity to remind those of us who actually work for a living that there is no time like the present to stop volleying the emails back and forth–yes you are popular, fine–and live your life in the style of Comcast NBC Universal GE Microwave’s Brian Roberts. Here’s a conversation he had with a confused colleague who just wanted to know…. Friend: “How come you are so successful?” Roberts: “Ah. My secret? On those days when I am not into work, and I could just respond to emails all day long, that’s when I make myself get on the phone.” Lovely. We do a lot of emailing that accomplishes nothing and a ton of IM-ing that doesn’t say anything that we should have just said to ourselves. Don’t even start with the constant stream of bubbles rising up on our phones –texting–that was what Orwell was sure would crop up to stop us from getting anything done! If we texted one third of the time we’d all be Einsteins. Life is about ATD. Attention to detail is the way to make it in the gibberish-filled marketing industries. That’s why months like October are crucial! You get a whole month to do something without interruption. Start, then finish. Ahhh. Surely someone once said what my Dad told me when I was a whiny kid: “You are where the work ends. Don’t believe anyone will take the time to cover up your mistakes or make it better for you.” Meaning, the work has to be yours and you need to take responsibility for all of it. That’s why I love October, discontentment and all. Work, work, work. You get to spend a full month completing tasks, not depending on grammar check or a supervisor or the guy in the next cube who is nice enough to not tell you how you are making the same mistake over and over. Wonderful, wonderful October. Wait a minute Hold on. I just realized something super fantastic! Monday is Columbus Day–and didn’t he “discover the new world” and shouldn’t we give him a day off to consider what he did for us? I won’t be here Monday the 11th. Maybe Friday the 8th too! I’m exhausted this rant got to me. I need a rest. So don’t forget. October is about work and getting it done. Please update me with your results. Suckers!

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David Pohl: "The End of Coffee As We Know It"

October 5, 2010

Coffee pundits are fretting about a coffee “shortage”, which has led to a 35% price spike over the past four months on the NY ICE Coffee Futures Exchange. We’re hearing dire predictions of doom and gloom, an “end to coffee as we know it.” Leave it to mainstream media and hedge funds to create a mountain out of a molehill. Yet as a green coffee buyer who scours the world over for the best boutique coffee, works with trusted importers and growers to bring it to my doorstep, roasts it with artisan sensibility and packages it for the retail and wholesale coffee market, I am inundated with high quality coffee — more than I know what to do with. The truth is that while there are legitimate concerns about supply, from where I sit the future of coffee has never looked so good. My reason for optimism is simple: we are in a renaissance that is transforming coffee from a cheap commodity to a much more sophisticated beverage. I work for Equator Coffees & Teas in San Rafael CA, and I seek the best, most exotic coffees in the world. I evaluate coffees from Africa, Asia and Latin America every day, and travel to coffee farms several times a year. What I find absolutely striking is that throughout the industry quality is up, even if supply isn’t. So, is the shortage such a bad thing? Back in 2002 when I started in the industry, green coffee prices were at historic lows. The market price was $.40/pound, while the minimum cost of production was twice that. Farmers were going broke daily, abandoning their farms in search of work in the cities or abroad. It was devastating. Flash forward to 2010: green coffee prices are up around $1.90 and everyone is alarmed – except for the farmers who understandably love the price. There are a number of reasons for the price spike: smaller than expected harvests in Brazil, Colombia and Vietnam; farms that went broke during the crisis earlier in the century are still not at peak production (it takes 3-5 years for a coffee plant to produce); increases in global demand are outstripping increases in supply; and a weak global economy means that hedge funds are pouring money into commodities like coffee hoping for short-term returns. I don’t feel comfortable with the bubble risk posed by institutional investors, but all of the other reasons for the increase are legitimate and stem from the fact that people are drinking more coffee — arguably a good thing. What I really find encouraging about the trend that has emerged in the wake of the coffee price meltdown eight years ago, especially as we head into another “crisis”, is that consumers are willing to pay more for quality and sustainability. And farmers, keen to avoid another meltdown, have learned that they are better off producing higher quality coffee in a sustainable manner, not just more coffee. 20 years ago practically the only measure of a farm’s success was its yield — now quality is the number one issue. Today coffee growers are approaching their work, and are viewed by consumers, as artisans rather than struggling farmers at the bottom of the food chain. They are taking control of the situation and delivering coffee consumers are willing to pay a premium for. More farmers are focusing on the quality of their harvests, refining their growing techniques, installing hi-tech, efficient processing equipment and doing more to promote themselves by entering their coffees in competitions and reaching out to roasters via social media (most recently, a Salvadoran grower has communicated with us on Facebook). This positive development stands at odds with the “crisis” we are told is destroying the coffee industry. Consider what has happened to coffee in Panama over the last few years. It has gone from an undervalued origin to one of the most prized. I spend a couple of months each year on Equator’s own coffee farm, Finca Sofia. Since starting the farm from scratch three years ago we have planted 25,000 “Geisha” variety coffee trees, which we tend with the attention of a new mother. Geisha, an heirloom variety from Africa, took the world by storm a few years ago, sweeping every tasting competition it entered. Coffee judges could not believe it was grown in Panama – known primarily for clean, mild coffees, not wild, exotic ones. They were convinced it was from the crown-jewel of the coffee world, Ethiopia. Since then, green, unroasted Geisha grown in Panama has been selling at astronomical prices ranging from $25-170/pound. By first shattering taste expectations, this coffee went on to shatter price expectations. This had a trickle-down effect — the best coffees from many other origins now sell for prices exponentially higher than the commodity price. Rarely do coffees sell for over $100, but it is quite common to see coffees from El Salvador, Guatemala, Ethiopia, Colombia and Peru sell for $10-40. This is the exciting future of the coffee industry as I see it. So while the coming “shortage” will quite possibly have an impact on the world of coffee, and consumers will have to pay more for their coffee, they will also likely be treated to better quality coffee. Farmers will be rewarded for investments in quality and sustainability. If this is the “end of coffee as we know it”, good riddance. The renaissance already underway suggests that the best is yet to come. In future posts I will reflect upon the changing world of coffee.

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Dean Baker: The Soft Bigotry of Incredibly Low Expectations: The Case of Economists

September 13, 2010

In a country with almost 15 million people out of work, it is amazing that any economists still have jobs. This one is their fault first and foremost. Economists are supposed to know about the economy and provide advice on how to avoid disasters before they happen and help us recover from the bad things happen in spite of good advice. The economics profession has not done well on this simple scorecard. Remarkably, rather than improve their game, economists are now busy dampening down expectations so that the public will not hold them responsible for the state of the economy. Towards this end, a group of Fed economists recently put out a new study claiming that it was impossible for economists to recognize the $8 trillion housing bubble before it wrecked the economy. In effect, they argued that economists should not be blamed for this failure because: “The state-of-the-art tools of economic science were not capable of predicting with any degree of certainty the collapse of U.S. house prices that started in 2006.” This raises the obvious question: if economists can’t see an $8 trillion housing bubble, what can they see? This is bit like the firehouse where everyone sits around calmly sipping their coffee as the school across the street burns down. Completely missing the largest financial bubble in the history of the world is pretty inexcusable, even if economists continue to make excuses. Having failed to prevent disaster, economists are now anxious to tell us that there is nothing that they can do to remedy the situation. The story they are pushing is the unemployment is structural, not cyclical. This means that people are not unemployed because of a lack of demand in the economy, but rather they are unemployed because there is a mismatch between the available jobs and the skills and location of the available workers. Before examining the argument here more closely, it is worth noting that arguments about rising structural unemployment come around during every recession. When the economy fails to produce jobs fast enough to bring down the unemployment rate economists quickly turn to blaming the workers. The problem is not that economists came up with bad policies; the problem is that workers don’t have the right skills or live in the right place. This happened after each of the last four recessions. The story the economists tell is that we have jobs available but the workers who are unemployed don’t have the skills to fill these jobs. The “structural unemployment” gang got a big boost last week when the Bureau of Labor Statistics reported an increase of 180,000 in the number of unfilled job openings for July. There are some logical implications of the structural unemployment story that are easy to test. For example, if there are sectors of the economy where they is a substantial unmet demand for labor then we should expect to see wages rising rapidly in these sectors. This is a simple supply and demand story. If demand exceeds supply then we should expect to see wages rising as firms compete for workers. There is no major sector in which wages are keeping pace with the overall rate of productivity growth. Wages have been rising pretty much at the rate of inflation in most sectors for the last year and a half. In fact, taken as a whole the wages of production/non-supervisory workers have been rising slightly more rapidly than the wages of all workers over the last year and a half. Since all of the less-skilled jobs fall in the production/non-supervisory group, this suggests that the premium for skills has actually fallen somewhat in the last year and a half, the direct opposite of the structural unemployment story. In the same vein, if employers can’t find enough skilled workers, then we would expect them to have their existing workforce put in more hours. So, there should be sectors of the economy where average weekly hours are increasing. The evidence refuses to cooperate here also. The biggest increase in average hours over the last year has been in mining and logging and manufacturing, industries that are not typically thought to be centers of new economy skills. On the whole, average weekly hours are far below their pre-recession level. Oh yeah, and what about that big jump in job openings in July? With the July jump there are just over 3 million job openings being reported which gives us a little more than 1 opening for every 5 unemployed workers. Furthermore, the current number of openings is down by roughly a third from its level in 2007, before the recession began. And, no one was talking about structural unemployment three years ago. In short, there really is no evidence for a problem of structural unemployment. The problem is that because of bad policy we don’t have enough demand in the economy. If there is a mismatch of jobs and skills it is between economist positions and the people who fill them.

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Alexa von Tobel: Avoiding Financial Potholes

August 4, 2010

A lot of the financial advice out there focuses on the little things, like the money you’ll save by cutting out your daily caffeine fix. Of course, there are times when the little things do matter–those coffees add up when you are trying to stick to a tight budget . But when it comes down to it, making smart financial decisions is not really about the coffee. It’s about making sure that you get the BIG financial decisions in your life right. By the “big things,” I mean the financial milestones that we all encounter, from getting a mortgage to having a baby . I also mean anything that has the potential to really wreck your personal finances–life is full of financial pot holes and there are steps you can take to avoid them. At LearnVest , we often have users come to us who have made wrong turns along the way and are looking to get back on track financially. The best advice that I can offer is that being proactive and a careful planner is key. Think about the major things that could shake up your financial life, and I’ll bet there are some great ways to protect yourself. I’ve defined four of life’s big financial milestones and what you can do to get those right: 1. If you’re renting a home , get renter’s insurance . What if your place is robbed and your most valuable possessions disappear? What if you accidentally start a fire? What if your apartment is infested with bugs? Could you afford another place to stay while an exterminator comes in? What about while they rebuild your home? Investing in renter’s insurance is hugely worthwhile. It protects you from a whole load of financial pitfalls around your home. Your home should be the center of your sense of security–not the cause of you losing financial security. 2. If you’re getting married , there are some crucial conversations you need to have with your significant other. What if you open up a joint credit card with your spouse, and he or she proceeds to rack up thousands of dollars of debt on it? That ultimately affects your credit history. You need to be open about your numbers (credit score, income, etc.) and make sure you’re on the same page for your shared future. We’re all starting to talk more openly about money and that starts at home. 3. What if you suddenly lose your job ? You should save a good chunk of your income ( LearnVest recommends at least 10 percent yearly) and part of that should go towards an emergency fund. A great emergency fund has six to nine months of your living expenses, so you can hang in there until you find a new job. Losing your job is terrifying, but being prepared makes it so much easier. 4. If you’re thinking about having a baby , make sure you have a sound savings plan in place. At LearnVest, we recently wrote a piece about how to plan ahead financially for having a baby. Personal finance is of course extremely personal. Everyone is different (and numbers vary!), so the best way to use financial resources is to consult them for inspiration to help you think critically about your money. It’s always important to remember that these sources provide general guidelines, rather than steadfast rules. Everyone’s lifestyle and goals are different, so it’s best to use general recommendations as a baseline but to evaluate them within the context of your own personal situation. The most important thing is that you consider the financial impact of a particular milestone and carefully plan how you will cover those expenses, by saving, reallocating your budget, or cutting costs in other aspects of your life. For example, while LearnVest ideally wants everyone to max out their IRA contributions each year, if that is truly out of reach for you right now, then figure out how much you can afford to contribute to your IRA each month and commit to that amount. If you take the time to plan for your financial future, then you’ll find it easy to make smart, educated decisions about the big things in your financial life. So go ahead, enjoy that latte.

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Estate Coffee Holdings Corp. Appoints Errol Gillespie to the Board of Directors

April 29, 2010

CALGARY, AB–(Marketwire – April 29, 2010) –  Estate Coffee Holdings Corp. (the “Company”) ( OTCBB : ECHD ), a specialty coffee company with plans to grow by vertical integration, is pleased to announce the appointment of Errol Gillespie to the Board of Directors.

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Goldman Sachs Gambles Reputation in Standoff With SEC Over Claims of Fraud

April 22, 2010

By Joshua Gallu and David Scheer April 23 (Bloomberg) — Goldman Sachs Group Inc. may be better off cutting its losses instead of fighting what it terms “unfounded” fraud claims, say professors of securities law who have examined the U.S. Securities and Exchange Commission’s lawsuit against the bank. The most profitable firm in Wall Street history will probably lose what is typically the first hurdle in court, a motion to throw out the April 16 suit because it lacks legal merit, the professors said in interviews this week. After that, Goldman Sachs’s risks will mount and its negotiating position will weaken, they said. “There’s a very low probability that Goldman could get the case dismissed,” said Thomas Hazen of the University of North Carolina at Chapel Hill, whose books include a two-volume treatise on broker-dealer law. “Every pretrial motion the SEC wins, Goldman gets one step closer to losing.” Goldman Sachs is the first major Wall Street firm accused by regulators of fraud connected to the collapse of the subprime mortgage market. The SEC’s allegation that Goldman Sachs defrauded investors sparked a 13 percent, one-day decline in its shares. The New York-based firm, led by Chief Executive Officer Lloyd Blankfein , 55, said it will vigorously contest the claims. It must weigh the risks of a drawn-out legal battle against the benefits of a more immediate resolution. “We are disappointed that the SEC would bring this action related to a single transaction in the face of an extensive record which establishes that the accusations are unfounded in law and fact,” the bank said after the complaint was filed. Lucas van Praag , a Goldman Sachs spokesman, declined to comment yesterday on the likelihood of getting the case dismissed. Senate Hearing Blankfein and other executives at the bank are scheduled to testify at a Senate hearing next week along with Fabrice Tourre , the Goldman Sachs banker who was also sued by the SEC. The Permanent Subcommittee on Investigations will explore investment banks’ role in the financial crisis at the April 27 hearing. Blankfein yesterday attended a speech by President Obama in New York City pushing for financial regulatory reform, as Congress weighs legislation that could crimp profits for Goldman Sachs and the biggest U.S. banks. The legislation may come to the Senate floor as early as next week. Even if top managers are certain they’re right on the merits of the case, Goldman Sachs should probably settle, said senior executives at three of the firm’s rivals. The executives, speaking anonymously because they wouldn’t comment publicly on a competitor, said Goldman Sachs would be better off by deciding to settle the suit, cut its losses, and focus on repairing the damage to the firm’s reputation. Paulson’s Pick Two of the executives said they also believe Goldman Sachs may have to change senior management to give the appearance that the firm is changing the way it does business. The SEC’s case revolves around whether the firm should have told investors that hedge fund Paulson & Co. helped pick the underlying securities in a collateralized debt obligation — and then bet against it. Paulson wasn’t accused of wrongdoing. That’s too nuanced a judgment to make on the limited evidence available so far, making it unlikely the case will be dismissed, said Peter Henning , a former SEC attorney who teaches at Wayne State University Law School in Detroit. U.S. District Judge Barbara Jones , who was assigned the case and also presided over the case of former WorldCom Inc. CEO Bernard Ebbers , won’t dismiss it because materiality is what’s at issue, said Columbia University’s John Coffee . Lawsuit Fodder? If the SEC’s case survives a dismissal motion, the case would probably proceed to discovery, when the agency may seek additional testimony or information from the firm. That process could provide fodder for private lawsuits, additional allegations from regulators, or media attention that would further tarnish the firm’s image, according to George Cohen, a corporate law professor at the University of Virginia School of Law, and Lisa Casey, who teaches securities law at the University of Notre Dame in Indiana. “The evidence and rumors would be difficult to contain,” Casey said. “The market could react any time more information leaks out to the press.” Goldman Sachs’s shares have slipped 1 percent this week after the April 16 tumble. The stock closed at $159.05 yesterday, down 5.8 percent this year. Few professors were willing to predict which side would win in a trial, saying the case will depend on evidence and testimony that isn’t yet public. If weaknesses emerge in the SEC’s case, Goldman Sachs may decide to press on. Reputational Risks The reputational stakes are so high that Goldman Sachs may feel pressure to keep fighting, said Onnig Dombalagian , a former attorney fellow at the SEC who teaches at Tulane University Law School in New Orleans. “For Goldman not to stand behind its deals would be problematic for the firm,” he said. If Goldman Sachs settles or loses at trial, “people are going to ask, ‘Am I one of the clients who Goldman does deals for, or am I one of the clients Goldman does deals against?’” Dombalagian said. “There’s the saying that if you don’t know who the mark at the table is, you’re probably the mark.” Tamar Frankel , a corporate governance professor at Boston University, said a jury may be hostile to Goldman Sachs. “If many of the jurors have lost chunks of their savings in the crisis, the weight will be for the SEC,” Frankel said. The case is Securities and Exchange Commission v. Goldman Sachs, 10-cv-03229, U.S. District Court, Southern District of New York (Manhattan). To contact the reporters on this story: Joshua Gallu in Washington at jgallu@bloomberg.net ; David Scheer in New York at dscheer@bloomberg.net .

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Dean Cycon: Using Chocolate to Defeat Cocaine in Peru

April 7, 2010

During my recent visit to Oro Verde Cooperative in Amazonian Peru, I stayed with a number of indigenous farmers who are supplying us with an incredible cocoa. It is incredible for its taste – last month our farmers took first and third place in the World Chocolate Competition in Paris!- but it is equally as incredible for the story behind the cocoa. These brave farmers have been growing cocoa beans as a replacement for the coca they have grown in the past to feed the deadly narco-traffic in cocaine. We were the first company to import coffee from their village called Akan Shamboyaco (it was Alto Shamboyaco until my visit, when the people decided to reclaim the full name of their village from the Spanish Alto, meaning “high”). We are also the first and only company to import their sugar, paying the villagers ten times the amount they get on the local market. Yet it is the cocoa that has the most profound impact on the villagers’ lives. Coca is an essential part of indigenous spirituality and the daily work life of many of the indigenous groups along the Peruvian Amazon and highlands. It provides energy for working at high altitudes and essential amino acids and vitamins not readily available in local foods. No problem there. But for the last two decades outsiders have come in and morphed the benign coca plant into the essential ingredient in cocaine production. In fact, by the end of the 1990′s this area accounted for more than a quarter of all cocaine production in Peru. The farmers received good money for the coca leaves that grow so easily here, but the price many paid was higher than the income gained. Farmers were harassed by Peruvian military and often arrested and jailed. Brutal narco dealers often forced farmers to grow more and more coca, kidnapping children (especially boys) to insure compliance and to gain “recruits” for the narco battles and allied extremist movements like the Shining Path, which was largely funded by cocaine. Drug dealers also set up cocaine processing sites throughout the jungles around Akan Shamboyaco and the many rivers in the Amazon basin at the foot of the area. The processing involved many hazardous chemicals, which were left to flow into water sources, poisoning fish and making water undrinkable. “It was a bad trade for us”, said Belmar sadly. Belmar is a traditional leader in the village, although only in his late twenties. We sat around a lantern at his house one night, hearing stories of political and social struggle of the people here. But Belmar brightened when he spoke of the economics of cocoa and coffee these days. “We still have a lot of problems in our community, but the money from the cocoa and the coffee is much better. We don’t have to worry about the coca problems anymore.” Oro Verde has done an amazing job in organizing so many isolated villages into a powerful and successful cooperative. But helping the villagers of Akan Shamabuyaco to increase their income and gain independence from the cocaine trade may be the sweetest victory yet.

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Caroline Dowd-Higgins: How Professional Poise Can Distinguish You in the World-of-Work

April 5, 2010

First impressions are lasting especially in the career world when an interview or a pitch can be your single shot at success. Your stage presence speaks volumes about how you are perceived from the board meeting to the coffee shop. Since your audience forms an opinion before you even open your mouth, your body language conveys more than half of what you are communicating. You have control over the way you carry and comport yourself and these mannerisms can help you own your self confidence. Here are five essential strategies to ramp up your professional poise: 1. Stand tall and use good posture when sitting in a board meeting, making a presentation or even grabbing a snack in the company break room. Good posture is healthy, conveys confidence, and can make you look 5 pounds thinner. Now that’s my kind of dieting! 2. Analyze your speaking voice. Be sure to speak slowly, clearly and keep your volume constant throughout your statements. A strong landing or dismount is very important and can make or break the effectiveness of a statement. Use proper grammar and work towards eliminating filler phrases such as: “like”, “um” and “you know.” Be aware that “you guys” is not an appropriate way to address a group in a professional setting, especially if the party includes women. 3. Dress the part. Take stock of your professional wardrobe and make sure you are neatly groomed and wearing clothing that reflects the culture (and decade!) of your work environment. Ill fitting and sloppy clothing sends an immediate negative message to your clients and colleagues. Shoes should be polished and allow you to walk comfortably and well balanced. Ladies – the killer heels look great for a night on the town but they will not serve you well if you are wobbly on your feet during the company tour or interview. 4. Have a positive attitude and avoid work place gossip and politics. Positivity is infectious and can impact how you perform on the job. Pay-it-forward with an upbeat mindset and watch your colleagues follow suit. 5. Be mindful of the rules of etiquette whether you are hosting a client for a business lunch or a guest at your boss’s holiday party. Retool your etiquette know-how so you can be comfortable eating and socializing in a professional environment. Distinguish yourself with professional poise and gain confidence and self esteem by ramping up your stage presence on the job. Owning the role of the polished professional will show the world you mean business. Caroline Dowd-Higgins pens a career transition blog called “This Is Not the Career I Ordered” ( www.notthecareeriordered.com ). She is also the Director of Career & Professional Development at Indiana University Maurer School of Law.

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Tesoro Blast Shows Pattern of Refinery Safety Problems, Investigator Says

April 2, 2010

By Aaron Clark and Jessica Resnick-Ault April 2 (Bloomberg) — A blast and fire that killed four people at Tesoro Corp .’s Anacortes, Washington, refinery today may be the worst fatal accident to strike a U.S. refinery since a 2005 explosion killed 15 people at BP Plc’s plant in Texas City, Texas. “It appears to have the most fatalities of any accident since BP Texas City,” Daniel Horowitz , a spokesman for the U.S. Chemical Safety and Hazard Investigation Board, said in a telephone interview. “The board is extremely concerned about the pattern of safety problems in the refining sector.” The 12:30 a.m. fire started after “minor, routine maintenance” in a small section of the refinery, Tesoro said in a statement. The explosion shook homes more than a mile from the 120,000 barrel-a-day Anacortes plant, which is the company’s second-largest and accounts for about 18 percent of its systemwide 664,360 barrel-a-day capacity. A Tesoro statement said it will “cooperate fully” with regulatory investigations. The affected unit has been shut down and isolated and other parts of the plant are operating. “We’re probably at the point where we’re producing 60 to 70 percent of what would be considered normal,” Lynn Westfall , a Tesoro spokesman, said in a telephone interview. Four employees died: Daniel Aldridge, Matt Bowen, Darrin Hoines and Kathryn Powell, according to a company statement that expressed “the most profound sadness” for the losses. Critical Condition Three other refinery workers — a 36-year-old woman and two men, ages 34 and 41 — remain in critical condition, according to Susan Gregg-Hanson, a spokeswoman for Harborview Medical Center in Seattle. They all have burns over the majority of their bodies. The CSB, an independent U.S. federal agency that investigates industrial chemical accidents , has sent a four- person team to investigate the Anacortes refinery accident, according to a statement from the agency. Tesoro’s 58,000 barrel-a-day Salt Lake City, Utah refinery is also under investigation by the CSB after an Oct. 21 fire occurred when flammable liquid overfilled a flare stack and ignited, Horowitz said. The agency said last year it was investigating the incident amid similarities with BP’s Texas City accident. The BP explosion occurred March 23, 2005, when an octane- boosting unit overflowed as it was being restarted. Gasoline vapors spilled into an inadequate vent system and ignited a blast that shattered windows five miles away. Fifteen people were killed and 180 injured, according to the CSB. The Anacortes refinery received 17 “ serious” violations last year from the Washington State Department of Labor & Industries. Fourteen of those violations have been deleted and an $85,700 initial penalty was reduced to $12,250. Grief Counselors Tesoro has grief counselors on site, said Joe Solomon, president of the United Steelworkers Union Local 12-591, which represents about 200 workers at the Anacortes refinery. Lissy Nelson, 20, who can see the refinery complex from the drive-up window of the coffee shop where she works, said the blast shook windows in her house a few miles away. “It sounded like a jet plane taking off,” she said. Tesoro is based in San Antonio and operates seven refineries in the western U.S. The $2.02 billion company’s stock rose 49 cents to $14.39 on the New York Stock Exchange yesterday. The shares have risen 6.2 percent this year. Unplanned and planned outages can increase prices for petroleum products as refiners turn to spot markets to help them meet supply contracts. Operational disruptions can also depress prices for crude oil because less feedstock is needed. Fuel Production “For the units involved in the fire, that could be several weeks” before they return, said Andy Lipow , president of Lipow Oil Associates LLC, a Houston-based consulting company. “In the Pacific Northwest, prices are liable to rise.” The plant in Anacortes, about 60 miles north of Seattle, manufactures gasoline, jet fuel and diesel for markets in Washington and Oregon. It receives oil by pipeline from Edmonton, Alberta, and by tanker from Alaska and foreign sources, according to the company’s Web site . The plant also processes intermediate feedstocks such as heavy vacuum gas oil that are produced by other Tesoro refineries or purchased in the spot market. The discount to futures for conventional, 87-octane gasoline widened 0.5 cent to 6 cents yesterday in Portland, according to data compiled by Bloomberg. The prompt delivery price gained 0.87 cent a gallon to $2.2637. Regular gasoline at the pump in Seattle, Bellevue and Everett, Washington, rose 0.3 cent to an average $3.003 a gallon, AAA, the nation’s biggest motoring organization, said today on its Web site. Tesoro said it will post updates on the incident to a Web site, http://www.tesoroalert.com . To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net Jessica Resnick-Ault in New York at jresnickault@bloomberg.net .

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Breakfast At Subway: NEW Breakfast Menu Debuts April 5

March 26, 2010

CHICAGO — Subway is joining the increasingly crowded breakfast scramble in a move that the sandwich chain hopes will help add customers and sales. After years of testing, almost all of Subway’s 23,000 U.S. restaurants will begin selling the meal April 5. When they do, the nation’s largest restaurant chain by number of outlets will be a big player in the breakfast game, which can be handsomely profitable if done right. “There are a number of other competitors of ours that are trying to suss out the breakfast opportunity, and I’d rather be in the market before they get there,” said Tony Pace, chief marketing officer at the Subway Franchisee Advertising Fund Trust, the chain’s consumer marketing division. “Is there going to be competition now? Of course. And it’s going to be fierce.” The new menu, already being served in some U.S. cities and throughout Canada, sticks with Subway’s sandwich specialty. Featuring customizable “omelet sandwiches,” the options include a combination of eggs or egg whites, cheese, ham, bacon, steak, sausage, peppers and onions in addition Subway’s other toppings. Sandwiches will be served on an English muffins, flatbread or the restaurant company’s traditional sub rolls. While franchise owners – who operate all of the company’s 25,000 North American locations – determine the prices of the breakfast items, suggested prices will range from $1.75 to $6. A combo meal featuring an English muffin sandwich and coffee would be $2.50. Advertising for the new menu will begin next week. Breakfast has become a popular addition to fast-food chains in recent years as companies clamor for diners. Since coffee, eggs and other breakfast ingredients often come cheap, the meals typically can rake in big profits for restaurants. While heavyweight McDonald’s promotes its new dollar breakfast menu, other competitors are getting into the mix. Among them: Taco Bell and Wendy’s, which are both testing out breakfast menus. It’s not a sure thing. As the economy soured, so did breakfast sales as customers cut back on spending and unemployed workers stopped visiting restaurants on their way to work. According to research firm NPD Group, the number of customers buying breakfast at fast-food restaurants slipped 2 percent in 2009. Even so, that’s better than the 5 percent decline recorded at dinner. But that’s not keeping restaurant chains from trying. Restaurants added more than 460 new breakfast items to menus in 2009, according to market researcher Mintel. That’s more than in 2008 and 2007. “It is a very competitive landscape,” said Morningstar analyst R.J. Hottovy. “They’re going in at a time when everyone’s done a renovation on their breakfast menu in the past year or so. But I think if they do it right, they’re probably positioned to profit from it.” Some franchisees began serving the meal years ago and by last year, nearly 40 percent of the company’s locations had some sort of breakfast item on the menu, Pace said. As the popularity of the meal grew, the company inked a deal with Starbucks Corp. in November to sell its Seattle’s Best Coffee in stores and began completing its nationwide breakfast push. The chain recommends locations begin serving the meal at 7 a.m., although some will offer the menu earlier. Pace said breakfast items will remain available to order after the traditional morning meal period. Subway is owned by privately held Doctor’s Associates Inc., based in Milford, Conn.

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Brett King: TV, Advertising, and Newspapers are dead – deal with it…

March 12, 2010

You know what – change is a funny thing. For me, I can’t wait untill I can watch all my movies and TV shows on demand instantly whenever I want without having to worry about which channel it’s on, or which device I’m going to use to watch it – just click and watch. I can’t wait till I can read my latest thriller I bought on my iPad while sitting at 35,000 feet depending (I’ll still read the hard cover at the coffee shop though!). I can’t wait till I can walk on to my next flight without needing a physical boarding pass, and I can’t wait till I do my first payment by swiping my phone instead of my credit card (in fact I already have really). For me technology adoption is not only a way of life, but it’s just plain cool. I want to use my cell phone as a boarding pass It is apparent, however, that some others amongst us, don’t really like all these new fangled internet thingys and are a little challenged by change. I was in one of my regular bank strategy sessions the other week when I challenged the concept of free-to-air TV. In BANK 2.0 I predict that free-to-air TV can not really survive beyond about 5-7 years, because with TVC Ad revenue plummeting, beyond the state financing TV stations there is simply no viable business model that can sustain free-to-air. Why I raised this issue was, with only 18% of TVCs even having partial ROI these days, that marketing teams had to start thinking about moving away from traditional broadcast advertising as quickly as possible to point-of-impact . It was at this point I was challenged by a member of the audience who shouted out “you’ll never get me paying for sports on TV!”. In fact, and this might seem just a little bizarre to those of you who live in other countries, recently a lobby group has come up with a campaign to ensure just that in Australia – it’s a website and massive TV/Print Ad campaign running in Australia at the moment called www.keepsportfree.com.au . I’m sorry – that’s just … ridiculous – think new mediums people!! No matter how hard you lobby, no matter how hard we want things to stay the same, there is an inevitability about the way technology adoption changes consumer behavior, and hence the way it changes business, consumption and transactions. The most coveted skill in business today should be the ability to accurately read these trends and help your organization adapt accordingly. I know I’ve discussed it before, but the launch of electronic stock trading by Charles Schwab is a great example. Looking back even Merrill Lynch probably realize that this was a positive game changer. The reality is it really had to go this way eventually, regardless of who took the helm. The fact that we can use advisory sites, online research, and analytics tools to give us real-time information even better than what most (not all) brokers could gives us, says what it’s all about – where does the value lie? Not in a human interaction – but in the ability to execute the trade itself. Branches of banks face the same conundrum today. For media content like TV shows, music, news it is likewise inevitable. Why should I wait until 8/9 central to watch that favorite series that I love, why can’t I just schedule it for download as it’s released online and then just watch next time I have a spare 40 minutes? Why would I physically walk into a music store to buy a CD – after all how can I get the tracks onto my iPod that way? Carry a newspaper on the train to read? Come on… These are all outmoded interactions; interactions that have no place in my life in the 21st Century. You see these changes are inevitable. When Napster launched the recording industry went after the start-up and other similar businesses with the focus of a velociraptor, and for a time they thought they had succeeded. In 2008, however, 95% of songs were downloaded illegally , why? Mainly, because the recording industry failed to provide legal means to access this content online – they were too slow to adapt. When iTunes did provide a legal channel for the same – they made gazillions . In addition, artists actually can make more money in the digital age , while record companies provide minimal value in the value chain of the new world. This is why I am choosing to embrace change. I don’t want to keep my free-to-air TV, my physical newspaper and my gas guzzling SUV – I am ready for change, and I recognize it is inevitable. If I am prepared for change, then I’ll undoubtedly capture those customers that are likewise ready for change, and they are the majority today. I can adapt or see my value chipped away until my business is worthless. You want to join me?

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Starbucks Gun Policy: Refusal To Ban Firearms Pleases Open Carry Advocates, Troubles Gun Control Advocates

February 28, 2010

Dale Welch recently walked into a Starbucks in Virginia, handgun strapped to his waist, and ordered a banana Frappuccino with a cinnamon bun. He says the firearm drew a double-take from at least one customer, but not a peep from the baristas. Welch’s foray into the coffeehouse was part of an effort by some gun owners to exercise and advertise their rights in states that allow people to openly carry firearms. Even in some “open carry” states, businesses are allowed to ban guns in their stores. And some have, creating political confrontations with gun owners. But Starbucks, the largest chain targeted, has refused to take the bait, saying in a statement this month that it follows state and local laws and has its own safety measures in its stores. “Starbucks is a special target because it’s from the hippie West Coast, and a lot of dedicated consumers who pay $4 for coffee have expectations that Starbucks would ban guns. And here they aren’t,” said John Bruce, a political science professor at the University of Mississippi who is an expert in gun policy. Welch, a 71-year-old retired property manager who lives in Richmond, Va., doesn’t see any reason why he shouldn’t bear arms while he gets caffeinated. “I don’t know of anybody who would provide me with defense other than myself, so I routinely as a way of life carry a weapon – and that extends to my coffee shops,” he said. The fight for retailers heated up in early January when gun enthusiasts in northern California began walking into Starbucks and other businesses to test state laws that allow gun owners to carry weapons openly in public places. As it spread to other states, gun control groups quickly complained about the parade of firearms in local stores. Some were spontaneous, with just one or two gun owners walking into a store. Others were organized parades of dozens of gun owners walking into restaurants with their firearms proudly at their sides. In one case, about 100 activists bearing arms had planned to go to a California Pizza Kitchen in Walnut Creek, Calif., but after it became clear they weren’t welcome they went to another restaurant. That chain and Peet’s Coffee & Tea are among the businesses that have banned customers with guns. Just as shops can deny service to barefoot customers, restaurants and stores in some states can declare their premises gun-free zones. The advocacy group OpenCarry.org, a leading group encouraging the demonstrations, applauded Starbucks in a statement for “deciding not to discriminate against lawful gun carriers.” “Starbucks is seen as a responsible corporation and they’re seen as a very progressive corporation, and this policy is very much in keeping with that,” said John Pierce, co-founder of OpenCarry.org. “If you’re going to support individual rights, you have to support them all. I applaud them, and I’ve gone out of my way personally to let every manager of every Starbucks I pass know that.” The Brady Campaign to Prevent Gun Violence has responded by circulating a petition that soon attracted 26,000 signatures demanding that Starbucks “offer espresso shots, not gunshots” and declare its coffeehouses “gun-free zones.” Gun control advocates hope the coffeehouse firearms displays end up aggravating more people than they inspire. “If you want to dress up and go out and make a little political theater by frightening children in the local Starbucks, if that’s what you want to spend your energy on, go right ahead,” said Peter Hamm, a spokesman for the Brady campaign. “But going out and wearing a gun on your belt to show the world you’re allowed to is a little juvenile.” The coffeehouse debate has been particularly poignant for gun-control advocates in Washington state, where four uniformed police officers were shot and killed while working on their laptops at a suburban coffeehouse. The shooter later died in a gun battle with police. Ralph Fascitelli of Washington Ceasefire, an advocacy group that seeks to reduce gun violence, said allowing guns in coffeehouses robs residents of “societal sanctuaries.” “People go to Starbucks for an escape, just so they can get peace,” Fascitelli said. “But people walk in with open-carry guns and it destroys the tranquility.” Gun control advocates have been on the defensive. Their opponents have trumpeted fears that gun rights would erode under a Democrat-led White House and Congress, but President Barack Obama and his top allies have largely been silent on issues such as reviving an assault weapons ban or strengthening background checks at gun shows. Gun rights groups are looking to build on a 2008 U.S. Supreme Court ruling that struck down Washington, D.C.’s handgun ban, and cheered legislation that took effect Monday allowing licensed gun owners to bring firearms into national parks. Obama signed that legislation as part of a broader bill. Legislators in Montana and Tennessee, meanwhile, have passed measures seeking to exempt guns made and kept in-state from national gun control laws. And state lawmakers elsewhere are considering legislation that would give residents more leeway to carry concealed weapons without permits. Observers say the gun rights movement is using the Starbucks campaign to add momentum and energize its supporters. “They’re trying to change the culture with this broader notion of gun rights,” said Clyde Wilcox, a Georgetown University government professor who has written a book on the politics of gun control. “I think they are pressing the notion that they’ve got a rout going, so why not just get what they can while they’re ahead?” ___ On the Net: http://www.bradycampaign.org/ http://www.opencarry.org/

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Dennis A. Henigan: Starbucks Sticks To Its Guns. Why?

February 26, 2010

In case you missed it, last Saturday was “Starbucks Appreciation Day.” No, it was not a gesture of support from lovers of strong coffee (like me). The “appreciation” was on behalf of Americans who believe it is their sacred right to have a handgun with them wherever they go – even to carry it openly to make sure the rest of us know who are the real defenders of the Second Amendment. The “open carry” movement has been convening groups of its followers to meet up at restaurants and coffee shops, with pistols, revolvers and ammo hanging from their hips. Two major retail chains who were “open carry” targets (so to speak) – California Pizza Kitchen and Peet’s Coffee & Tea – reacted quickly by announcing strict “no guns” policies. Starbucks, on the other hand, has earned the “appreciation” of the gun-toters by becoming the “safe house” for the “open carry” movement. Starbucks’ official response has been to offer the assurance that it will “continue to adhere closely to local, state and federal laws” on this issue. This is an evasion, not an answer. The fact is that Starbucks would also “adhere closely to local, state and federal laws” by prohibiting guns on its premises. The law allows Starbucks and other retail businesses to make their own policy on guns. Starbucks has made a choice to recognize the rights of a few gun extremists to show off their weaponry in its stores and ignore the rights of the vast majority of its customers to enjoy their coffee and muffins free of the fear, intimidation and risk of violence inherent in the “open carry” experience. Starbucks seeks to hide behind “local, state and federal law,” but in truth, there is no place for it to hide. For a glimpse into its future as the corporate best friend of the gun-toters, Starbucks should consider the experience of a California restaurant chain, Buckhorn Grill . On February 6, a Buckhorn restaurant in Walnut Creek, California, was visited by about 100 men carrying their highly-visible guns. A recent New York Times editorial said this must have “looked like a casting call for a Sam Pekinpah shoot-’m-up.” Shortly thereafter, Buckhorn’s management made clear that the restaurant had always had a “no weapons” policy and apologized for the “misunderstanding” that had led to the “open carry” event. How many gun carriers need to show up at Starbucks for the company to realize what a nightmare it is creating for its customers and employees? The issue here is much bigger than Starbucks and involves more than just “open carry.” Starbucks’ new gun-wielding friends envision an America in which guns permeate American society. A pitched battle is underway that will determine whether their vision is realized. It started with the gun lobby’s largely successful campaign to make it easier to obtain a license to carry concealed weapons in public. Now the “gun rights” extremists are trying to break down the barriers limiting where concealed weapons can be carried. As of this week, with the shameful acquiescence of the Obama Administration, loaded guns will be allowed in national parks for the first time since they were banned by the Reagan Administration. In over twenty states , the gun lobby has tried, and thankfully failed, to pass legislation to force colleges and universities to allow guns on campus. The battle continues. It may be that “open carry” will turn out to be the “secondhand smoke” of the gun debate. On the tobacco issue, it was one thing for people to subject themselves to the unhealthy effects of cigarettes. It was quite another for the effects of smoking to be so visibly inflicted on non-smokers. Smoking in public became a new, and transforming, focus of the debate, leading to far-reaching restrictions on where people can smoke. On the gun issue, although the carrying of concealed weapons in public subjects everyone to enormous risk , the risk is, by definition, concealed. Perhaps this is why my tobacco-growing home state of Virginia now no longer allows restaurant customers to smoke, but will allow them to carry concealed weapons (and may now be poised to allow them even to carry concealed in restaurants that serve alcohol!). “Open carry,” unlike concealed carry, confronts everyone with the risks of guns in public, in a very direct and highly-visible way. We can only hope that the “open carry” movement will backfire, bringing our country back from the brink of the “guns everywhere” vision of America now being foisted on us by the NRA and the most dedicated supporters of its extremist agenda. Over 27,000 Americans so far have signed the “no guns” petition circulated by the Brady Campaign to Prevent Gun Violence and CREDO Action calling on Starbucks to keep guns out of its stores. Please join them by going to www.bradycampaign.org . Tell Starbucks that, in your America, parents ought to be able to take their families into coffee shops without facing the intimidation and danger of guns. For more information, see Dennis Henigan’s new book, Lethal Logic: Exploding the Myths that Paralyze American Gun Policy .

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New Burger King Menu Features Starbucks Corp.’s Seattle’s Best Coffee, More Breakfast Options

February 16, 2010

CHICAGO — Burger King plans to launch a massive new coffee line as it tries to overhaul its breakfast menu and boost its slumping business. The nation’s No. 2 burger chain will add Starbucks Corp.’s Seattle’s Best Coffee to all its U.S. restaurants in a phased roll-out that begins this summer, executives told The Associated Press on Tuesday. The move takes a page from rival McDonald’s Corp.’s success with its McCafe line of coffee drinks, which have been credited with boosting its performance. The deal also adds a new wrinkle to the coffee wars, because McDonald’s coffee campaign has been seen as taking aim at Starbucks. “We’ll be delivering a better cup of coffee,” said John Schaufelberger, senior vice president of Burger King’s global product marketing and innovation, who said improving the company’s breakfast business is among the chain’s “top strategic priorities.” Under the effort, more than 7,000 Burger King restaurants will begin sell the coffee along with iced varieties that also come with a choice of plain, vanilla or mocha flavors and whipped toppings. While prices will be set by franchise owners – who operate 90 percent of the chain’s locations – the brew’s suggested prices range from $1 to $2.79. Drinks will be sold all day. Terms of the agreement weren’t disclosed. But the deal marks the latest expansion for Seattle’s Best and comes as Starbucks focuses on building the lesser-known brand it acquired in 2003. In the fall, Starbucks signed a deal with Subway locations to sell the roasted coffee in 9,000 locations – more than doubling the number of U.S. sites where the brand is sold. Most fast-food restaurants, which spent recent years expand their early morning business, have seen a decline in breakfast diners as unemployment climbs and fewer workers stop in on their way to work. In 2009, total visits to fast-food locations across the country slipped 3 percent, while traffic during breakfast hours slipped 2 percent, according to research from The NPD Group. But selling a good-tasting cup of coffee, which often comes with a fat profit margin, is generally considered a key part of any successful breakfast effort – in good times and bad. Five years ago, Burger King launched its BK Joe coffee brand, which will be retired as Seattle’s Best takes over. Tuesday’s announcement marks the beginning of the first sizable change to Burger King’s breakfast lineup, which was last revamped in 2007 when the restaurant chain, based in Miami, launched its breakfast value menu. “You should expect to see new and improved products from Burger King at breakfast,” Schaufelberger said. Morningstar analyst R.J. Hottovy said the move allows Burger King to sell a highly profitable product and try to bring back customers. “To me it’s just a way to offset the weakness in the breakfast business,” Hottovy said. “It’s something most (fast food) restaurants recognize could be a sales driver, and helps the bottom line.” Burger King is also rolling out a change to its value menu that will remove a slice of cheese from its double cheeseburger and rename it the BK Dollar Double. The existing double cheeseburger, which has two slices of cheese and which the chain has been selling for $1, will now cost $1.19. The move mirrors what McDonald’s did with its McDouble, which also has one slice of cheese and replaced the double cheeseburger on its value menu. Burger King franchisees have complained that they’re losing money on the dollar double cheeseburger. They sued the company after it rolled out the promotion after they twice voted it down. Burger King’s shares rose 6 cents to $18.28 Tuesday.

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Paul Helmke: Guns And Starbucks: Espresso Shots, Not Gunshots

February 8, 2010

What would your reaction be if you and your kids walked into the local Starbucks and, while contemplating the choice between a latte and a mocha cappuccino, you noticed several fellow customers had semi-automatic pistols and ammunition magazines hanging from their hips ? This scenario has become more than a flight of imagination. In several communities in California, and elsewhere, it has become reality. Welcome to the ” open carry ” movement, an effort by “gun rights” extremists to foist their interpretation of the Second Amendment on the rest of us by openly carrying handguns in public places. While virtually all states have at least some minimal restrictions on the carrying of concealed weapons, few states do anything to regulate the “open carry” of firearms. Particularly in the Bay Area in Northern California, “open carry” adherents have been gathering in Starbucks and other coffee shops and restaurants — their semi-automatic pistols and revolvers in plain view — apparently to make an ideological statement. The sight of such gun-toters in Starbucks reminds us of the incidents last summer, when anti-Obama protestors appeared at political events and “town hall meetings” with handguns and assault rifles openly strapped to their bodies — including events attended by President Obama himself . The “open carry” folks view this as “normalizing” their self-defined “right” to carry guns with them at all times wherever they please, regardless of its impact on public safety. But what about the rights of everyone else who wishes to be free from lethal weapons in public places, except for trained law enforcement? Surveys show that the presence of more guns in a community does not make people safer, or feel safer; indeed, it has the opposite effect. Studies show that the more guns there are, the more gun violence there is in that location. In addition, 80 percent of those who don’t own guns say they would feel less safe if more people in their community acquired guns; only eight percent would feel safer. Even among gun owners, roughly equal proportions would feel less safe if more people had guns versus those who would feel more safe. Take the reaction of one coffee shop customer in San Ramon, California when faced with a group of pistol packers: “I’m scared. I’m getting out of here. They say they want to make a statement. What’s wrong with a T-shirt?” The “open carry” gatherings provoked an immediate reaction from Californians who were appalled that coffee shops and restaurants would allow guns on their premises. At least two national chains have responded responsibly. For example, Peet’s Tea & Coffee stated that its policy “is not to allow customers carrying firearms in our stores” unless they are uniformed law enforcement officers. It also indicated that it would post a notification of that policy in all its stores and would call the local police for assistance should a customer display a firearm in the future. After being alerted by local chapters of the Brady Campaign about a scheduled “open carry” meeting at one its Northern California stores, California Pizza Kitchen issued a statement that it “does not allow guests other than uniformed officers to display firearms in our restaurants” because of its concern “that the open display of firearms would be particularly disturbing to children and their parents.” But now we come to Starbucks. When asked about the company’s policy on the “open carry” of firearms in its stores, its Customer Relations Department responded to the Brady Campaign’s California chapters that “Starbucks does not have a corporate policy regarding customers and weapons; we defer to federal, state and local laws and regulations regarding this issue.” Here’s the problem with that answer: generally speaking – and certainly in California – businesses have the right to bar guns on their premises. It is their property and, just as they can prohibit entry by people with bare feet, they can do the same for people with guns. Despite its response, Starbucks clearly does have a policy and it is one that should be deeply disturbing to the vast majority of its customers. Starbucks has apparently chosen to allow civilians to carry semi-automatic pistols and possibly even assault weapons into its stores. Such a policy is disturbing to law enforcement officials as well as Starbucks patrons. As a San Mateo County Sheriff’s Lieutenant put it, “Open carry advocates create a potentially very dangerous situation,” because when police respond to a “man with a gun” call, they have no idea what the intentions of the gun carrier are and “the result could be deadly.” If a mistake in judgment or perception results in a shooting at a Starbucks, will the company still have no “corporate policy regarding customers and weapons”? This is no idle consideration. Just this past September, at a picnic hosted by “open carry” activists at a Michigan state park, a gun activist was charged with reckless use of a firearm after he unintentionally fired his semi-automatic handgun in a parking lot. Then there was the California “open carry” activist in December who was arrested for carrying his .357 magnum revolver near a school , complaining, “I just can’t see what I did wrong.” Even more disturbing was the man – ” of high interest to the FBI because of his alignment with violent demonstrators at abortion clinics ” – who was arrested for possession of a semi-automatic handgun which he was carrying openly outside a North Carolina abortion clinic last October. As these and other incidents show, the “open carry” movement clearly has implications beyond Starbucks. It is part of a broader campaign, led by the National Rifle Association, to force guns into every corner of American society by “normalizing” the carrying of guns in public places, openly and concealed. The gun pushers want an America where there is nowhere that you and your family can go to be free from guns. As just one example, the same lawyer who won the U.S. Supreme Court case two years ago which declared a Second Amendment right to have a gun in your home for self defense, has filed a new lawsuit seeking to force localities to allow civilians to carry guns on the streets. The “open” carrying of guns is just the visible tip of the “guns everywhere” iceberg. The gun lobby’s clout in state legislatures has forced consideration of dangerous proposals to allow people to legally carry concealed weapons into bars , churches , workplace parking lots , airports , parks , college campuses and elsewhere. While most states do not require any permit, license or training of any kind to carry a semi-automatic pistol openly, the NRA assures us that those who have permits to carry concealed weapons are all ” law-abiding citizens ” whose gun-toting behavior protects the rest of us. Since May, 2007, however, these “law-abiding citizens” have killed at least 117 people , including nine law enforcement officers. During that same period, they have committed eleven mass shootings. So, Starbucks, what will it be? Like Peets Tea & Coffee, will you do the socially responsible thing and stand up for the rights of families and children to be free from guns when they visit your coffee shops? Or will you take the chance that there will be more than just shots of espresso being served up in your stores? If you think Starbucks is wrong here, sign our petition today: http://act.credoaction.com/campaign/starbucks_guns/?rc=brady Sign our petition to tell Starbucks to keep guns out of its stores: http://act.credoaction.com/campaign/starbucks_guns/?rc=brady

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Mason Tvert: Businesses Should Stay on Marijuana’s Good Side

February 5, 2010

A recent brouhaha between Starbucks Coffee and marijuana legalization advocates raises an important question for the broader business community: Can major national companies be successful absent the patronage of marijuana consumers and others who support marijuana policy reform? Not too long ago, it was absolutely necessary for businesses to maintain an appearance of opposition to marijuana use and legalization. But the times they are a-changin’, and it is beginning to seem like many major companies are striving to maintain an appearance of NOT opposing marijuana use and legalization. Late last month, Safer Alternative For Enjoyable Recreation ( SAFER ) — the organization I run — called for a nationwide boycott of Starbucks Coffee after it and other companies appeared on the “sponsor” page of the Colorado Drug Investigators Association (CDIA), a shady group of law enforcement officials lobbying to wipe out the state’s voter-approved medical marijuana system and keep marijuana as illegal as possible. With a board of directors composed almost exclusively of narcotics agents, along with a website and merchandise decorated in a skull motif with images of the grim reaper, military helicopters, and the slogan “Death on Drugs,” it’s safe to say these guys are not so much concerned with public safety as they are with fighting — and maintaining — an endless war against marijuana and other drugs. After all, it provides them with job security, and marijuana enforcement is their bread and butter. Word of the boycott spread quickly across the web, and with a boost from some traditional media coverage (including some in Starbucks’s hometown of Seattle) resulted in thousands of Americans contacting CEO Howard Schultz to let him know they would not be giving their business to his company until it did some explaining. Not long after, Starbucks issued a formal statement in which it distanced itself from the CDIA and assured the Starbucks faithful it does not support such anti-marijuana crusaders. Another business listed as a “sponsor” on CDIA’s website was The North Face , one of the leading producers of hiking and mountain sports equipment and apparel. After receiving messages from people swearing off their products, the company took action to ensure everyone knows they are not actually a sponsor of the CDIA and do not support the group’s mission. In light of all the bad publicity and these major companies disputing any tie to the CDIA, the organization removed its Web site entirely . Apparently they do not have quite the level of support from the business community that they were suggesting. As the Seattle Weekly reported , there’s more to this story than meets the eye: Starbucks was just one of many local and national companies whose logo was on CDIA’s website. (Also included: The North Face and Enterprise-Rent-a-Car.)… But what Starbucks, or any of those other brands, did for CDIA isn’t really clear. According to Starbucks HQ, no money was involved. So most likely…the “sponsorship” CDIA bragged about probably came down to a couple free lattes handed out at one or two stores. Either way, it’s nothing but a minor brew-ha-ha. But more evidence that we’ve now entered an (amazing) alternate dimension, where speaking out against pot actually gets you more bad PR than speaking out for it. In the past, businesses faced with anti-marijuana publicity would either remain silent or speak out to assure the public they are opposed to marijuana use and its legalization. Yet the major companies mentioned above did not stay silent; instead, they took action to ensure the public knows they are NOT opposed. In some sense, this was the case with Subway and several other companies that opted to stick with Michael Phelps after his bong hit heard ’round the world. In fact, Subway even seemed to work the situation into its marketing , incorporating the tag-line, “Be yourself,” into the Phelps commercials and launching a new Web site — “SubwayFreshBuzz.com”. As for the one business that dropped him, the Kellogg Company , it found itself on the wrong end of a highly publicized nationwide boycott that drew more customers’ attention than its tainted peanut butter recall. Indeed, it seems like more and more big businesses are beginning to realize the importance of staying on the good side of those who support marijuana reform. And rightly so. The latest polls are finding that a majority of Americans support treating marijuana like alcohol, and support is even greater on both highly populated U.S. coasts. Moreover, this particular community happens to be one of the most vocal out there. When President Barack Obama solicited questions from the public for an on-line forum , the three most popular among the 3.5 million votes were related to marijuana legalization. And just last week, marijuana-related questions topped the list of those asked of the President for his on-line “CitizenTube” address. Nevertheless, many companies are still towing the anti-marijuana line. YouTube is under fire for censoring those marijuana questions from the President’s address, and Chase Bank just sparked the ire of drug policy reform advocates when it completely cheated a national student-based organization out of a grant it legitimately won in the company’s on-line grant contest. Of course there are also the professional sports leagues and Olympic organizations that punish players for using marijuana (including last year’s National League Cy Young Award Winner , last year’s Super Bowl MVP , and of course the greatest Olympian in history ). But the fight rages on, and those vocal marijuana reform supporters do not seem to be tiring. Students for Sensible Drug Policy ( SSDP ) has called for a boycott of Chase Bank that has already convinced thousands of people to swear off using it, and organizations like the Marijuana Policy Project ( MPP ) are pushing hard to ensure the blogosphere is aware of YouTube’s censorship. Sooner or later, these companies will come to realize that they must respect the fact that marijuana consumers and supporters of reform are everywhere . And if they expect to keep their business, maintain their market-shares, and ensure healthy bottom lines, they must end their anti-marijuana madness. After all, it’s not just those prime-time athletes who enjoy marijuana, but in many cases the fans… and the bank account holders… and the on-line video watchers… and the mountain climbers… and, of course, the coffee drinkers.

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People in Business: A who’s who for Jan. 1 (The Bakersfield Californian)

December 31, 2009

DEBI ROBERSON has earned the Certified Distressed Property Expert designation after completing training in foreclosure avoidance and short sales. Roberson works at Roberson Real Estate on Coffee Road.

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Six Cups of Coffee a Day May Reduce Prostate Cancer Risk, Researchers Say

December 7, 2009

By Simeon Bennett Dec. 8 (Bloomberg) — Drinking coffee may lower the risk of developing the deadliest form of prostate cancer, according to a Harvard Medical School study. In research involving 50,000 men over 20 years, scientists led by Kathryn Wilson at Harvard’s Channing Laboratory found that the 5 percent of men who drank 6 or more cups a day had a 60 percent lower risk of developing the advanced form of the disease than those who didn’t consume any. There was a smaller effect among those who drank less coffee, and the link wasn’t seen in patients with an earlier stage of the disease. The study is the first to associate coffee with prostate cancer, contradicting previous research that’s found no link. The difference may be because Wilson and colleagues looked for the first time at the link between coffee and different stages of the disease, instead of grouping them all together. More research is needed to confirm the findings, she said. “People shouldn’t start changing their coffee consumption based on one study,” Wilson said in a phone interview on Dec. 5. “It could be chance, and we really need to see whether it pans out in other studies.” Prostate cancer struck almost 200,000 men in the U.S. this year and killed more than 27,000, making it the second-deadliest malignancy among American men after lung cancer, according to the American Cancer Society . The researchers aren’t sure which of the many components of coffee is responsible for the effect, though it probably isn’t caffeine because the same association was seen for decaffeinated coffee, Wilson said. Coffee lowers the risk of Type 2 diabetes by increasing the body’s ability to use insulin to convert blood sugar to energy, previous research has shown. Higher insulin levels have also been associated with an increased risk of prostate cancer, suggesting the hormone may be the link between coffee and the disease, Wilson said. The data were presented at an American Association for Cancer Research conference in Houston today. To contact the reporter on this story: Simeon Bennett in Singapore at sbennett9@bloomberg.net

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Starbucks’s Schultz Pushes Instant Coffee, Seattle’s Best to Propel Growth

November 6, 2009

By Courtney Dentch Nov. 6 (Bloomberg) — Starbucks Corp. Chief Executive Officer Howard Schultz is shifting the coffee seller’s focus from cost cutting to growth by promoting new products, including Via instant coffee and its Seattle’s Best Coffee brand. “The future of the company is not based on cost takeouts,” Schultz said in a telephone interview late yesterday. “It’s based on innovation and the emotional connection and trust we have with our customers.” Schultz, 56, plans to expand distribution of its instant coffee into grocery and drug stores and has signed an agreement to bring the Seattle’s Best brand to 9,000 Subway restaurants by the end of the year. Starbucks is looking to return to sales growth at established stores after four straight quarters of declines. The Seattle-based company closed more than 900 stores to help trim $580 million in costs in the year ended Sept. 27. The drop in fourth-quarter comparable-store sales in the U.S. narrowed to 1 percent. Sales at domestic stores open at least a year fell 6 percent in the third quarter and 8 percent in the second, after tumbling 10 percent in the first. Earnings per share excluding some items rose in the past three quarters after four straight declines. Net income rose to $150 million, or 20 cents a share, last quarter, from $5.4 million, or 1 cent, a year earlier. Sales fell to $2.42 billion. Starbucks rose $1.42, or 7.2 percent, to $21.12 at 4 p.m. New York time in Nasdaq Stock Market trading in the biggest gain since July 22. The shares have more than doubled this year. It’s ‘Working’ “They’ve held on through the worst of it,” said Jeff Farmer, a restaurant analyst at Jefferies & Co. in Boston, referring to the economic crisis. “I’ve had a hold on the stock forever and even I can’t deny that what they’re doing is working.” Farmer, who doesn’t own the shares himself, is among 12 analysts with a hold rating on the shares, while nine say buy and none advise selling. Yesterday, Schultz announced an agreement with Acosta Sales and Marketing Co. to bring Via Ready Brew to convenience, grocery and drug stores next year as it seeks a portion of the $21 billion soluble coffee market. Jacksonville, Florida-based Acosta distributes goods from more than 1,000 consumer products companies in North America. The agreement represents a move away from Starbucks’ usual distribution partnerships with PepsiCo Inc. and Kraft Foods Inc. ‘Bright Future’ Schultz is also bringing Seattle’s Best out from “under the shadow of Starbucks ,” adding restaurant accounts, such as Milford, Connecticut-based Subway, and adding licensed stores. He split the brand away from Starbucks’s whole-bean and bottled- beverage products in September and named Michelle Gass president of the unit. “Seattle’s Best has a very bright future and it can do things that Starbucks cannot,” Schultz said, citing sales through vending machines, gas stations and fast-food outlets. “We want to unleash Seattle’s Best to do that.” From 2005 through 2007, Starbucks added locations at an annual pace of 20 percent, a rate it couldn’t sustain during the global recession. In 2008, when Schultz returned to the CEO job after a hiatus of almost eight years, he cut that growth rate in half. As of September, the company had 16,635 coffee shops worldwide, about two-thirds of them in the U.S. It plans to add a net 300 stores in fiscal 2010. Schultz wouldn’t say when he thinks the chain’s turnaround will be complete. “We have to make sure that none of the hubris and entitlement that was here returns,” Schultz said. “There’s no sign of victory. One or two quarters doesn’t make a victory.” To contact the reporter on this story: Courtney Dentch in New York at cdentch1@bloomberg.net .

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Richard Laermer: The Myth of "Personal Branding"

November 1, 2009

“Personal Branding” is a term that gets bandied about at every cocktail party despite not having any real discernible meaning. We know the purpose of branding products: to sell them to their market. What exactly does it mean to have a personal brand, though? Further, is a personal brand actually going to help people with their lives, or just their careers? I say that personal branding, whatever it is today , is a trendy term but not a complete step toward wholesale change in the way you are perceived. The “new fame” is more complete, achievable, and effective. (Read on for more.) Much like anything these days, a whole host of aggressive experts are at the ready to tell you what a personal brand is and why you need to be personally branding. Longtime brand guy Martin Lindstrom suggests a few things regarding the quest for a solid personal brand under the guise of explaining how to be indispensable at the workplace. Martin advises that while at work, people “take two everyday tasks and combine them in an extraordinary way. For example, let’s say you’re a cashier in a big-box store and you enjoy sitting in its fast-food emporium during your breaks. Is there anything you’ve observed that might be valuable for management to know about–for instance, that customers wish there were more prepackaged sandwiches and salads? Let management know.” “Create a distinctive mark or “signature” that other people can’t get out of their minds,” he says, “It can be a logo, a symbol, or a saying you affix to the end of your personal e-mails. Once again, combine two elements that have nothing to do with each other–flying monkeys, for example.” Flying monkeys are going to help me do what , exactly? Notice that the author of Buyology didn’t exactly say what these things are supposed to accomplish – just that they will help you brand yourself as indispensable. Eh? These superficial moves aren’t exactly changing the world or creating any real benefit for anyone involved. They are more like stunts. Personal Brander Dan Schawbel, who wrote the newish book Me 2.0 , wishes to be Gen-Y’s personal branding expert. His very popular blog advises people on creating a new brand attitude (brand new attitude’s bastard cousin). Dan is a smart-as-whip marketer who defines personal branding as “how we market ourselves to others.” I think this definition is apt. It is similar to faming, an idea of mine that I’ve been wandering the country talking about, better known as a way to get a leg up on the competition and become the go-to person in all facets of your life. It is also “pragmatic notoriety.” This ensures folks see the best in you at all times. PB is a bit more on the business side of things, whereas fame is an actual organic adventure. [Oh, and I'm not talking about the kind of fame that balloonists go after either...] More telling than semantics of the definition of personal branding are what Dan Schawbel calls the “benefits”. These would be the whys of personal branding. Here are benefits, according to Dan: Promotions: Anyone who is ambitious and works at a company will want to move up. By building your personal brand, you become the best choice for a promotion. Happiness: By aligning who you are with what you do and appending goals to it, you can turn “work” into a “hobby.” Get paid to do what you would count as a hobby. Compensation: Personal brands command premium prices. Just like Apple and Gillette can charge more for products you can get for less, you can do the same. Business: People want to purchase from other people who they know, like, trust. When you make those people happy that they chose you, by giving them great results, they will refer you to even more people. Perks: Strong brands get perks. I get free books from authors and other bloggers get free products, such as limited edition Pepsi cans. Celebrities, like Halley Berry don’t have to pay for anything because of who they are. Notice what all the benefits have in common? They are all (but for happiness) essentially saying make more money. Yeah we are all here to make money, but if a raise is the only thing you are looking for, all this effort may be overkill. The biggest difference between personal branding and this thing called faming is that the personal one exists solely for capitalistic purposes like getting into a good school, getting the right internship, getting a better job, getting customers. Basically it purports to help you get more cash. Conversely, faming exists to help you live a fuller and more consistent life from which things like getting the internship and getting the job come into being. Faming doesn’t turn itself off when the workday ends. This helps you get more life and the money may follow, if you so choose. The other component of personal branding seems to be the pursuit of making its practitioner a “mini-celebrity.” Ah the celebrated life–dimming isn’t it? This is problematic today for many reasons. As writer Michael Wolff pointed out on Newser.com: Celebrities simply do not exist any more. All those antiquated notions of celebrity are far gone and inconclusive. “We tend to think that we live in a celebrity-driven culture,” wrote trouble maker Michael Wolff, “But, it’s actually a nobody-driven culture: vaguely familiar faces carrying their coffee.” This is it. Personal branding misses the boat because there are no true rock stars anymore. The recent passing of Jackson and others have indicated to all of us that there are simply no actual talents who radiate incandescence to because of their trade. There will never be one more Jackson, just a ton more Wentzes. Celebrities are media creations, and inconsequential ones at that. In the 1970s and ’80s when Michael was at the top of his form, we only got the images that were given to us. If Epic wanted to show us Michael at home, that’s what we got. In order to be an icon, you have to be a mystery. Mystery is king. Mystery is queen. Alas, there are no more mysteries! Jackson’s passing definitely marks the end of an era. His celebrity was classic. It was about the authentic look: the pose, the attitude, the dress, the mystique. Who is left now? No one. Fame acknowledges that the world has changed. Fame doesn’t mean “self-promotion.” You need to alert people that there is a ton of substance between your ears, and that you aren’t one of the drones carrying coffee just because everyone else carries coffee. And with that, I introduce How To Fame – www.howtofame.com/details – as a guide to making more money, getting a better job, or becoming another slightly famous face. It’s about living your best life, and showing others what you truly are – you. It’s about something that you know you’ve got to do but just don’t know how.

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McDonald’s, Walmart, Smucker Gain Share as Recession Squeezes Competitors

September 6, 2009

By Keith Naughton, Adam Satariano and Duane D. Stanford Sept. 5 (Bloomberg) — At Activision Blizzard Inc ., instilling a “culture of thrift” means you wait 13 years before you change the office carpet, according to Chief Executive Officer Bobby Kotick . “A lot of other companies, when there is some sort of economic downturn, they go into triage mode where they are trying to figure out their costs,” Kotick said. “We do that all the time.” Kotick acted quickly during the recession, merging his company last year with Blizzard, the game division of France’s Vivendi SA . Activision got “World of Warcraft,” an online role-playing game with more than 11 million subscribers paying $14.99 a month. That helped Kotick boost market share in North America and Europe by 2.8 percentage points to 12.7 percent even as industry sales fell 14 percent. Activision offers one example of how companies well- positioned for the worst economic slump since the 1930s have gained a competitive advantage. Wal-Mart Stores Inc. expanded electronics offerings after Circuit City Stores Inc. liquidated, McDonald’s Corp. rolled out low-priced lattes and casino owner Penn National Gaming Inc. is looking to expand into Las Vegas. J.M. Smucker Co. added Folgers, the best-selling ground coffee in the U.S., to its market-leading jelly, jam and preserve brand; Ford Motor Co. boosted output while U.S. rivals filed for bankruptcy; and Verizon Communications Inc. bought Alltel Corp. Beating the S&P Six of those seven companies have outperformed the Standard & Poor’s 500 Index since the recession began in December 2007, while Penn National, the only laggard, has outpaced the S&P since the benchmark’s March 9 low. Analysts expect the gains to continue. Each of the seven companies has more buy ratings than holds or sells. Of 150 recommendations for the group, there are 106 buys, 38 holds and six sells, based on data compiled by Bloomberg. “To be aggressive in this recession, it took a strong stomach and a good balance sheet,” said Mark Zandi , chief economist of Moody’s Economy.com in West Chester, Pennsylvania. “The companies that panicked will suffer more in the long run.” McDonald’s, the world’s largest restaurant chain , and its franchisees invested $1.12 billion to add McCafe gourmet coffee drinks at about 11,200 U.S. locations. Investing in Coffee The company’s share of the U.S. fast-food market has increased 1 percentage point since 2006, according to a spokeswoman, Heidi Barker . That growth was driven in part by last year’s introduction of the McCafe products, said Chief Financial Officer Peter Bensen . Coffee sales have grown to 5 percent of the Oak Brook, Illinois-based company’s sales, up from 2 percent in 2006, Bensen said. “We’re hitting or exceeding our targeted unit movement across the country,” Bensen said, while declining to specify internal goals. “We think the combined beverage strategy, conservatively, can add about $125,000 to sales per store.” U.S. McDonald’s restaurants average $2.3 million in annual sales, Bensen said. Lattes at McDonald’s start at $2.29, compared with $3.29 for a small latte at some of Starbucks Corp. ’s New York outlets. Seattle-based Starbucks said Aug. 20 it is lowering prices on coffees and lattes by as much as 15 cents while raising prices on frappuccinos and caramel macchiatos by as much as 30 cents. Sales Growth “We continue to focus on providing value to our customers, an area where we have made much progress against the misperceptions about Starbucks value proposition,” May Kulthol , a spokeswoman for Starbucks, said in an e-mailed statement. McDonald’s shares are up 10 percent since their March 5 low this year. They rose 57 cents to $56.14 yesterday in New York Stock Exchange composite trading. Of 21 analysts covering the stock, 12 say buy and 9 say hold, based on data compiled by Bloomberg. “We’ve had an intense focus on improving operations,” Bensen said. “The eating-out market is shrinking in the recession, and we’re grabbing an even bigger part of the market.” U.S. restaurant-industry traffic fell 2.6 percent for the three months ended May 2009, according to market researcher NPD Group, the steepest drop since 1981. Sales at McDonald’s U.S. stores open at least 13 months gained 3.5 percent in the second quarter, the company said. Breakfast Boost While it’s too early to say whether the drinks strategy will meet McDonald’s goals, the coffee is “bringing people into McDonald’s more often and they’re spending more on breakfast and the rest of the menu,” said Richard Jeremiah, a restaurant analyst with marketing researcher IBISWorld Inc. in Los Angeles. “The key thing at the moment is getting that traffic.” Smucker, the 112-year-old maker of Smucker’s jams and Jif, the top-selling peanut butter in the U.S., has also taken advantage of the decline in dining out. “The shift to ‘at-home’ consumption is on an upward trend and we are well prepared to continue to play an important role,” Co-CEO Tim Smucker said in an Aug. 21 e-mail. Net income at Orrville, Ohio-based Smucker more than doubled to $98.1 million for the three months ended July 31. Revenue almost doubled when it acquired the Folgers coffee business from Procter & Gamble Co. for about $3 billion in November as Wall Street turmoil fueled a global financial collapse. “Folgers was a sleeper that they have been able to reinvigorate,” said Edward Aaron , a Denver-based analyst with RBC Capital Markets. On the Prowl Folgers captured more than a quarter of ground-coffee dollar sales in the 13 weeks ended June 28, according to Information Resources Inc., a Chicago-based market researcher. IRI’s data doesn’t include sales at Walmart. Aaron, who advises buying Smucker, has a 12-month share- price target of $59, 14 percent more than yesterday’s NYSE close at $51.73. Of 11 analysts covering the company, 9 say buy and 2 say hold. Smucker has surged 51 percent since touching a 2009 low of $34.22 on March 11. Penn National has $800 million in cash and is on the prowl for new casino licenses in states including New York, Kansas and Ohio, as well as existing properties being sold by debt-laden rivals, Chief Executive Peter Carlino has said since October. “We are probably busier at the corporate office than we have ever been in terms of looking at new opportunities,” CFO Bill Clifford said in an Aug. 21 interview. “We have a lot more firepower, a lot more options available to us to take advantage of the opportunities being created indirectly by the bad economy.” ‘Distressed Property’ The prize the Wyomissing, Pennsylvania-based casino and race-track company is seeking: a mid-sized resort on the Las Vegas Strip. Troubled owners now reluctant to sell may have little choice next year after MGM Mirage’s CityCenter opens in December, adding almost 6,000 new hotel rooms amid the city’s worst decline. “There are going to be some distressed property situations out in Las Vegas,” Clifford said. “It will play itself out early next year, and at that point in time I think it will be much easier to get something done.” Of 15 analysts covering Penn National , 12 recommend buying and 3 say hold, according to data compiled by Bloomberg. The shares have soared 65 percent since a March 6 low. They fell 37 cents yesterday to $28.27 in Nasdaq Stock Market composite trading. Avoiding Bankruptcy As U.S. auto buying fell to the lowest level in three decades, Ford CEO Alan Mulally forced the 106-year-old automaker to deal with its diminished place in a changing market. “There was a move by the company to accept the reality of today rather than thinking things are going to get better,” CFO Lewis Booth said in an Aug. 21 interview. “This very strong view, led by Alan, is, ‘Accept reality and react to it. Don’t hope it’s going to go away.’” That attitude led the Dearborn, Michigan-based automaker to borrow $23 billion in late 2006. The move saved Ford from the bailouts and bankruptcies that beset the predecessors of General Motors Co. and Auburn Hills, Michigan-based Chrysler Group LLC. Ford has cut its North American workforce by 42 percent, or 50,400 jobs, since December 2006 as it revamped its product line. It dropped the 10-miles-per-gallon Excursion sport-utility vehicle and added the 41-mpg Fusion hybrid. As Chrysler and Detroit-based GM slipped into Chapter 11 in April and June, Ford boosted output 16 percent to win more buyers. Ford had 15.8 percent of U.S. auto sales through August, up from 15 percent in 2008. It’s faring better than it did after the 2001 recession, when its market share slid to 21.5 percent in 2002 from 24.1 percent two years earlier. ‘Stealing Share’ “We didn’t think of just surviving,” Booth said. “We thought that, as we went through this, we would continue to invest in the new products for the future.” Ford has combined “cost cutting, product improvement and pricing enhancement,” said Brian Johnson , a Chicago-based Barclays Capital analyst who has a “neutral” rating on the stock. “Ford is not just stealing share from GM and Chrysler, they’re taking it from the Japanese as well.” Ford fell 5 cents to $7.43 in composite trading on the New York Stock Exchange yesterday. The shares have more than tripled this year for the third-largest gain in the S&P 500 . Analysts still aren’t convinced a turnaround is at hand. Six recommend the shares while five say hold and five say sell. Walmart and Target Walmart , the world’s biggest retailer, loaded up on laptops, mobile phones and Blu-ray disc players as Circuit City liquidated in March. In the U.S., operating profit advanced 5 percent to $4.9 billion in the quarter ended July 31. Customer visits during the period increased by 1.3 percent, reflecting store improvements that will help the Bentonville, Arkansas-based company keep shoppers when the recession ends, Eduardo Castro-Wright , U.S. stores chief, said on an Aug. 13 earnings call. Sales by Walmart’s U.S. stores open at least a year rose 1 percent in the 26 weeks through July 31 as Target Corp. posted a 5 percent decline. Walmart had a 3.2 percent gain in 2008, when same-store sales for Minneapolis-based Target slid 2.9 percent. “Based on same-store sales performance over the past year, Walmart has been outperforming the competition, which implies that the company is gaining market share,” Joseph Feldman , an analyst at New York-based Telsey Advisory Group, said Aug. 27. A Target spokesman, Eric Hausman , said the second-largest U.S. discount chain “has continued to gain market share in many categories.” “Market share is not a zero-sum game between these two companies,” he said. Verizon’s Leap Walmart’s ability to keep increasing sales in a slumping economy echoes the company’s experience in the 2001 recession. For the 52 weeks ended Feb. 1, 2002, Walmart’s same-store sales climbed 6.1 percent. Walmart fell 6 cents yesterday to $51.68 in NYSE trading. Walmart has gained 11 percent since a 2009 low on Feb. 4, and 21 analysts recommend buying the stock, based on data compiled by Bloomberg. Six say hold. Verizon used an acquisition to leapfrog AT&T Inc. and become the largest U.S. wireless provider this year. The Jan. 9 purchase of Alltel for $28 billion helped New York-based Verizon increase second-quarter sales by 11 percent amid a slowing market for phone services, and boosted the number of mobile customers by 18 percent. Mobile Web Access “Our business relationships have held up very well,” Verizon CFO John Killian said in an Aug. 19 interview from his office in Basking Ridge, New Jersey. “We’ve not lost any contracts.” Verizon announced contracts this year with the Bank of New York Mellon Corp., Siemens Enterprise Communications and federal agencies such as the Department of Health and Human Services. Revenue from mobile plans that let customers surf the Web jumped 53 percent last quarter from a year earlier. They will eventually comprise half of customers’ monthly wireless bills, up from 29 percent in the second quarter, Killian said. Mobile Web access will speed up when Verizon rolls out its “fourth generation,” or long-term evolution, network next year. Verizon said it will be the first to deploy its LTE network in the U.S., ahead of AT&T’s planned 2011 rollout. While global mobile-phone sales slid 6 percent in the second quarter, smart-phone sales rose 27 percent, according to research firm Gartner Inc. “People want the cool thing,” said Brian Marshall , a technology analyst at Broadpoint AmTech Inc. in San Francisco. “They view that as a necessity.” Verizon rose 36 cents yesterday to $30.60 in NYSE trading, pushing its gain to 17 percent since a March 9 low. Of 31 analysts covering the company, 17 say buy, 13 say hold and 1 recommends selling. ‘Even Out Earnings’ Like Verizon, game maker Activision looked to a merger to expand in the recession by combining with Vivendi’s Blizzard. “Doing that merger and having a subscription base for a game such as ‘Warcraft,’ that really helps even out earnings,” said Geoff Chamberlain , a research analyst with Appleton Partners in Boston, which owned 272,000 Activision shares as of June 30, based on data compiled by Bloomberg. Adding market share in an economic contraction isn’t new for Santa Monica, California-based Activision. In 2001’s fourth quarter, when the last recession ended, game titles featuring professional skateboarder Tony Hawk helped boost global market share by 1.7 percentage points from a year earlier to 12.4 percent, the company said. Activision has surged 43 percent since its low for the year on Jan. 6 in Nasdaq trading. The shares rose 16 cents to $11.71 yesterday. All 29 analysts following the stock rate it as a buy. As for the 13-year-old carpet at company headquarters, CEO Kotick said he recently replaced it at the landlord’s expense. To contact the reporters on this story: Keith Naughton in Southfield, Michigan, at Knaughton3@bloomberg.net ; Adam Satariano in San Francisco at asatariano1@bloomberg.net ; Duane D. Stanford in Atlanta, at dstanford2@bloomberg.net

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Video: In-Depth Look – Growth Stocks

August 21, 2009

Stocks to Watch – Netflix, Green Mountain Coffee, True Religion Apparel (Bloomberg News)

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Piers Fawkes: Inside Starbucks New Stealth Store: 15th Avenue E Coffee and Tea

July 29, 2009

This article originally appeared on PSFK.com . A couple of weeks ago, there was a lot of buzz generated by the news that Starbucks was looking to explore new store layouts and designs and even considering dropping the brand name from certain locations.

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Starbucks to Match U.S. Employee 401(k) Contributions as Earnings Improve

July 27, 2009

By Courtney Dentch July 27 (Bloomberg) — Starbucks Corp. , the world’s largest coffee-shop operator, will match U.S. employees’ contributions to their 401(k) retirement plans after earnings improved, Chief Executive Officer Howard Schultz said in a memo.

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Starbucks Debranding: Store Owner Says ‘Bucks Stole Her Ambiance

July 20, 2009

If imitation is the kindest form of flattery, the restaurant and bar known as Smith is feeling … well … flat-out worshiped

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