The Ethiopian government had to make a decision on how to best use IPRs to obtain exclusive ownership of Ethiopian coffee names, achieve wider international recognition and maximize returns. Read on to find out what makes Ethiopia’s coffee so good. It is not related to certification.”. Ethiopians believe that the coffee origin story can be traced back to Ethiopia, and that the local goat herder was the one to discover the priced coffee berries. Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington.As the world's largest coffeehouse chain, Starbucks is seen to be the main representation of the United States' second wave of coffee culture. Situated at the conjunction of the African and Arab worlds known as the Horn of Africa, the mountainous country has a biblical quality. Velvety and floral, with peppery spice notes. 1st Jan 1970 Marketing Reference this Share this: Facebook Twitter Reddit LinkedIn WhatsApp Starbucks was established in 1971 by three local businessmen to sell high quality whole beans coffee. It was well known that his goats jumped higher and ran faster than any other goats. History of Coffee. The adopted strategy offered royalty-free license agreements and required the licensee to sell the specialty coffees using the registered trademarks (free of charge) on any product that consists wholly of Ethiopian specialty coffees and to promote Ethiopian fine coffee by educating their customers. After finishing school, he rented a wet mill and started experimenting with processing in Ethiopia’s coffee-rich Kochere zone. The story of Ethiopia coffee begins with a legend. An Ethiopian Legend. Mild and mellow, the lighter roast perfected. Some of their premium coffee is Ethiopian, featuring beans from the Sidamo, Harar and Yirgacheffe regions. With a velvety soft texture and floral, peppery spice notes, this is our tribute to the birthplace of coffee. As Mr. Mengistie explained, “setting up a certification system would have been impracticable and too expensive.”. Starbucks vs. Ethiopia The country that gave the world the coffee bean and the company that invented the $4 latte are fighting over a trademark, says Fortune's Stephan Faris. This African nation enjoys a strong reputation for its heritage coffees which command a very high retail price in the international market. The True History of Ethiopian Coffee. There, legend says the goat herder Kaldi first discovered the potential of these beloved beans. These coffees have a unique flavor and aroma that distinguish them from coffees of other countries or even from other coffees of Ethiopia. Starbucks agreed to sign voluntary trademark licensing agreements which immediately acknowledge Ethiopia’s ownership of the Harrar, Sidamo and Yirgacheffe names, regardless of whether or not a trademark registration has been granted. The licensing strategy is expected to boost consumer recognition of Ethiopian coffee trademarks and facilitate the growth of the demand for Ethiopian fine coffees. The Initiative is organized and run by the Ethiopian Fine Coffee Stakeholder Committee (the Stakeholder Committee) – a consortium comprising cooperatives, private exporters and the Ethiopian Intellectual Property Office (EIPO) as well as other concerned government bodies. Absolutely—only the packaging is different. Body: Medium Against the average final retail price ranging from US$ 20 to 28 per kilogram, the farmers were receiving as little as US$ 1 per kilogram. Everyone wanted to trade their best rugs or cooking pots for a Kaldi super goat. Some 15 million people in Ethiopia depend on the coffee sector, which generates 60 percent of the country's wealth. The significance of the Initiative is likely to go not only beyond the coffee trade, but also beyond the borders of Ethiopia. This is just one variation on the Kaldi story: More than a thousand years ago, Kaldi, an Abyssinian goat herder saw his goats acting strangely. The United States Patent and Trademark Office (USPTO) had approved the application to register Yirgacheffe. The US retailer will market, distribute and, in some cases, license Ethiopia's range of high-quality coffee brands. Whether or not we believe there are kernels of truth in the legend of Kaldi and other stories about how coffee brewing was born, with archangels, whirling dervishes, and ghosts, there is a virtual certainty that the coffee plant originated in Ethiopia. The Initiative secured financial support from the Department for International Development (DFID) of the United Kingdom, technical advice from a Washington-based non-governmental organization (NGO), Light Years IP, and legal assistance from an American law firm, Arnold and Porter. “Partly because of this recognition, we have begun to see increases in their price,” says Mr. Mengistie. It’s not a predictable or forgiving bean, and the roasting process needs constant monitoring. The History And Introduction To Starbucks Coffee Marketing Essay. By Rosemary Ekosso . Starbucks Reserve® Ethiopia Gedeb Born in the birthplace of coffee, Alemu Bukato began his coffee journey at a young age. Distribution is also a problem, as it is predominately done informally by hauling bags of coffee on foot for many kilometers. The EIPO filed rebuttals against the USPTO decisions with supporting evidence to demonstrate that the terms Harrar and Sidamo had acquired distinctiveness. Origins of Ethiopia Coffee. The Initiative also intended to generate high retail prices for Harrar, Sidamo and Yirgacheffe – the three most famous coffee brands of Ethiopia. Indeed, coffee is closely tied to the culture and society of Ethiopia and an estimated 15 million people are directly or indirectly involved in the Ethiopian coffee industry. Therefore the very nature of coffee production in Ethiopia makes GI certification difficult and impractical. The Initiative has created the momentum for change and bears the potential to offer more feasible ways to improve the commercial prospects and financial returns for marginal producers of coffee or other similar commodities. The trademark strategy for Ethiopian coffee faced a major difficulty in 2006. We worked with smallholder farmers who applied the natural processing method on their very best beans. Want to learn more about the Starbucks Card? Our mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time. Starbucks first whole bean packaged coffee available globally since the introduction of Starbucks® Blonde Roast two years ago, Ethiopia coffee celebrates Ethiopia’s rich coffee tradition and delivers a taste in cup unlike any other coffee offered in Starbucks 42-year history. The revenue is 70pc of the target. Ethiopian Coffee; Ethiopian Coffee: Origin and History; Ethiopia is known for its diverse topography with altitudes ranging from around 100 meters below sea level in the Danakil depression to 4,600 meters above sea level in the Semien mountains. CH-1211 Geneva 20, Switzerland, Some of the world’s finest coffees originate in Ethiopia (Photo: WIPO/RES/DEV/GE/09/WWW[130155]). The Initiative has helped Ethiopia to differentiate Ethiopian coffees from coffees of other countries, which strengthened the confidence and bargaining position of the coffee growers and exporters of the country. Born in the birthplace of coffee, Alemu Bukato began his coffee journey at a young age. Starbucks Day of Action: 16 December 2006. The Stakeholder Committee therefore opted for a trademark-based solution, with the Ethiopian government as the owner of these marks. Coffee has been growing in Ethiopia for thousands of years, in the forests of southwestern highlands. The Story of Ethiopia Single-Origin On the ancient slopes flanking Africa’s Great Rift Valley, coffee trees first emerged from the rich, volcanic soil. (You might see it available in baskets before then). Artistically-designed logos of different types of Ethiopian Fine Coffee They opted for a well-organized branding instrument. A Brief History of Coffee: Goats, Roosevelt, and Starbucks. Of all the coffee-producing countries, Ethiopia is the only one that has a higher domestic consumption rate than export rate. Immediately after the resolution of the dispute, the stakeholders of Ethiopian coffee focused their attention on the need for a marketing strategy. And when we talk about coffee, one thing that definitely comes to any coffee lover’s mind is ‘Starbucks’- one of the world’s finest coffee. The media coverage had the effect of greatly increasing public knowledge of, and interest in, Ethiopia’s coffees. This strategy will ensure that Ethiopian farmers and small businessmen secure a reasonable return from the sale of their coffees. The USPTO turned down the application for Harrar in 2005 and for Sidamo in 2006. Situated at the conjunction of the African and Arab worlds known as the Horn of Africa, the mountainous country has a biblical quality. # 1: Ethiopia is where coffee was first discovered. These changes have had marked positive results in terms of increased income and improved living standards of the coffee producers. The history of coffee then sees the consumption of coffee moving from Ethiopia to other countries including Yemen, Turkey, Egypt and also Persia. Starbucks Ethiopia coffee is available at Starbucks retail stores and online at www.starbucksstore.com for the suggested retail price of $13.95 for 1 pound. Our tribute to coffee history. SunDried. Overall, Ethiopia’s total coffee exports are expected to reach the level of US $1.2-1.6 billion as opposed to a meager US $400 million prior to the Initiative. Starbucks honors the birthplace of coffee with the global introduction of Ethiopia, an enchanting single-origin steeped in history and flavor. This case study is based on information from: Madrid – The International Trademark System, Lisbon – The International System of Geographical Indications, Budapest – The International Microorganism Deposit System, Centralized Access to Search and Examination (CASE), SCCR - Standing Committee on Copyright and Related Rights, SCP - Standing Committee on the Law of Patents, SCT - Standing Committee on the Law of Trademarks, IGC - Intergovernmental Committee on IP & GR, TK & Folklore, https://www.wipo.int/wipo_magazine/en/2007/05/article_0001.html, https://www.wipo.int/meetings/en/doc_details.jsp?doc_id=130155, https://www.wipo.int/edocs/mdocs/sme/en/wipo_smes_dar_09/wipo_smes_dar_09_topic_07_1.pdf, https://www.wipo.int/edocs/mdocs/sme/en/wipo_smes_rom_09/wipo_smes_rom_09_o_workshop09_4-related1.pdf, http://www.lightyearsip.net/downloads/Distinctive_values_in_African_exports.pdf#page=15, http://www.nai.uu.se/publications/electronic_publ/notes_trade3.pdf, http://www.luc.edu/law/activities/publications/ilrdocs/vol6_no2/pdf/vol6_issue2.pdf, https://www.wipo.int/academy/en/ipacademies/educational_materials/cs4_sidamo.pdf, Ethiopian Fine Coffee Stakeholder Committee. We worked with smallholder farmers who applied the natural processing method on their very best beans. Starbucks is famous for their high quality beverages, out of which the coffee that are being provided by them is famous across the globe (www.starbucks.com, 2018). 1354 words (5 pages) Essay. The beans are spread on raised beds in the full sun with the cherries still on. Prior to the IP protection initiative, Ethiopia was receiving a scanty 6 percent of the final retail price for its coffees. The Ethiopian economy is heavily dependent on the trade of its primary products. Today our master roasters have created an entirely new way to experience these treasured beans. In Sidamo, most coffee is processed using the washed method. Coffee shops abound in Ethiopia's cities and towns; beans are still bought green and roasted at home. A movement, spearheaded by Oxfam International, aimed at pressuring Starbucks to sign the Ethiopian trademarking agreement, in order to improve economic conditions of the impoverished coffee bean farmers. The History of Ethiopian Coffee. Starbucks denied initiating the opposition to the trademark application, insisting it was a NCA decision. Ethiopia. Ethiopia has a long, rich coffee history. The EIPO has filed applications for trademark registrations of these three coffees in a number of other countries including Australia, Brazil, China, Saudi Arabia and South Africa. By mid-2009, almost one hundred license agreements have been concluded with coffee importing, roasting and distributing companies in North America, Europe, Japan and South Africa. Oxfam says Starbucks is depriving farmers in Ethiopia of $90m a year by opposing the Ethiopian government's efforts to trademark three types of local coffee … Coffee production in Ethiopia . The government of Ethiopia decided that instead of trying to protect Ethiopian coffee’s geographical origin, it would be better to protect its commercial origin, which it would do through registering trademarks. For example, a GI for Sidamo coffee would require every bag of Sidamo to be produced, processed or prepared in the Sidamo region and have a special quality that is directly dependent on the unique properties of the region. Medium Roast, 250g. I had the chance to try this today (September 9, 2013), with the blend’s creator at the Starbucks headquarters here in Seattle: Coffee Master Anthony Carroll. For developing countries, a new frontier is set to leverage benefits from their IP assets. The high cost of legal services for foreign trademark registration created some initial difficulties. An exquisite blend with a reverence for the ritual of coffee, honoring Ethiopia‘s bountiful legacy. In Japan, registration certificates have been secured for two of the coffees (Yirgacheffe and Sidamo). Starbucks is a global coffee giant, which was founded in 1971 as a local coffee bean retailer.Headquartered in Seattle, the company is now the world’s biggest coffeehouse chain, comprising of approximately 20,891 stores in 62 countries. Our tribute to coffee history. (Photo: courtesy EIPO). History of Coffee. Ethiopian coffee tends to produce beans that are smaller than other origin varieties (15+ screen). SEATTLE–(BUSINESS WIRE)– Starbucks Coffee Company (NASDAQ:SBUX) today introduces a new single-origin coffee from the birthplace of coffee, Ethiopia. In Sidamo, most coffee is processed using the washed method. But the National Coffee Association (NCA), representing coffee roasters of the United States, objected to the EIPO’s applications to trademark first Harrar, then Sidamo. Customers can sample Ethiopia coffee at participating Starbucks stores in the United States on National Coffee Day, Sept. 29, and those who purchase a 1-pound bag of the new coffee will receive a commemorative Ethiopia … Farmers would be required to pay a surcharge for government oversight, and this would only be an additional burden on them, many of who are already living below the subsistence level. The umbrella brand for Ethiopian coffee Under this approach, a total of four brands were created: an umbrella brand with the name “Ethiopian Fine Coffee” and three individual brands entitled “Harar Ethiopian Fine Coffee,” “Yirgacheffe Ethiopian Fine Coffee” and “Sidamo Ethiopian Fine Coffee”. Starbucks in Ethiopia coffee vow Coffee is a vital source of income for Ethiopia. Let the market pay,” explained Mr. Getachew Mengistie, former Director General of the EIPO. In 2004, the government launched the Ethiopian Coffee Trademarking and Licensing Initiative (the Initiative) to provide a practical solution to overcome the longstanding divide between what coffee farmers receive for a sack of their beans and what retailers charge for that coffee when they sell it in retail outlets in different countries. There, legend says the goat herder Kaldi first discovered the potential of these beloved beans. Add this limited edition Starbucks Card to your collection! Ethiopian Coffee History . Government oversight of coffee producers is therefore nearly impossible. The coffee is produced mainly in Harar, Sidamo, Yirgacheffe and Limu. Africa . All rights reserved. Soft and velvety with notes of dark chocolate, peppery spice and sweet citrus.Balanced, smooth and rich. As his skills and passion grew, he built his own mill and began buying coffee cherries from area farmers. This account coincides with the commonly held belief that coffee cultivation began in Ethiopia around the ninth century. A trademark for Sidamo was also granted in February 2008. The novelty of the Initiative is that it enabled the growers and producers to become part of price setters instead of being price takers. A United Kingdom-based company was given the responsibility of the brand promotion of Ethiopian coffee. If you go to the website of Starbucks, the international coffee chain, this is what you will read: Starbucks strongly believes in the importance of building mutually-beneficial relationships with coffee farmers and coffee communities with which we work. Unlike a GI, a trademark registration does not require a specific coffee to be produced in a specific region or have a particular quality in connection with that region. Starbucks and Ethiopian Coffee: The Bitter Taste of Exploitation . The high profile dispute with Starbucks increased the popularity of Ethiopian coffee. Setting up a certification system would have been impracticable and too expensive. Facebook 0 Twitter Pinterest 0 0 Likes. “Yes,” acknowledges Mr. Mengistie, “designation is used here as a broader term than trademark, to encompass some of the trademarks that are still pending registration. However, this is not a practical solution for Ethiopia. The history of coffee then sees the consumption of coffee moving from Ethiopia to other countries including Yemen, Turkey, Egypt and also Persia. At first glance, registration of each Ethiopian coffee as a geographical indication (GI) might seem to be the best course of action. Purchasing this coffee helps support Ethiopian coffee farmers… and in 2004, Oxfam worked with Starbucks to lessen poverty in coffee farming communities. An exquisite blend with a reverence for the ritual of coffee, honoring Ethiopia’s bountiful legacy. After acquiring the trademarks, Ethiopia initiated a royalty-free licensing scheme. Ethiopia has a long, rich coffee history. With its rich heritage and outstanding quality, Ethiopian coffee is among the best in the world. If each Ethiopian specialty coffee were registered as a GI it would have to be produced in a specific area of the country under specific circumstances. After all, the coffees are made in Ethiopia and named after the regions that made them famous. They were said to almost be dancing on their hind legs. Processing: Washed. “The theory is: make the pie bigger. Starbucks Reserve also offers another Ethiopian coffee called Ethiopia Kayon Mountain Farm. While Oxfam accuses the Americans of acting irresponsibly and preventing Ethiopian coffee farmers from earning … (Photo: WIPO/EM), The EIPO took the leadership of the Initiative and began working on identifying a mechanism which would lead to a greater share for the country’s coffee growers. The company worked together with the stakeholders and developed the brands and brand guidelines which were approved in July 2008. An exquisite blend with a reverence for the ritual of coffee, honoring Ethiopia’s bountiful legacy. The grounds for opposition in both cases were that the names had become too generic a description of coffee, and as such were not eligible for registration under United States trademark law. This coffee was grown by smallholder farmers who dry ripe coffee cherries on raised beds, carefully rotating and circulating the fruit to ensure it dries evenly. Starbucks executives - running an ambitious global expansion plan that aims to increase the number of the company's coffee houses from 13,700 in 39 countries to 40,000 globally - were also aware that other companies, such as Green Mountain Coffee Roasters ("Fair Trade and Organic"), were cooperating with the Ethiopian initiative and winning praise for "exemplary" behavior. Some of the world’s finest coffees, such as Harrar®, Sidamo® and Yirgacheffee®, originate in Ethiopia. The Story of Ethiopia Single-Origin On the ancient slopes flanking Africa’s Great Rift Valley, coffee trees first emerged from the rich, volcanic soil. Ethiopia, moreover, is not a member of the Madrid system for the international registration of marks. On the ancient slopes flanking Africa’s Great Rift Valley, coffee trees first emerged from the rich, volcanic soil. Trademarks for Ethiopian coffees are also registered in the European Union and Canada. However, some believe that coffee … There is an increasing demand for Ethiopian fine coffee in the world market. Although Ethiopian coffees such as Sidamo and Harrar are named after specific regions, all of it is not produced in the same region under the same circumstances. After finishing school, he rented a wet mill and started experimenting with processing in Ethiopia’s coffee-rich Kochere zone. # 1: Ethiopia is where coffee was first discovered. The coffee is sourced from Kayon Mountain Farm, Guji zone, Oromia region. The first coffee plants came from Ethiopia. On the ancient slopes flanking Africa’s Great Rift Valley, coffee trees first emerged from the rich, volcanic soil. From these ninth-century highlands, arabica coffee beans began their long journey from Ethiopia to the rest of the world. In the past 40 years alone, they have had three forms of government, from a militaristic Marxist ideology to the federal system today. Starbucks Ethiopia marks the first whole-bean packaged coffee available globally since the introduction of its Blonde Roast two years ago, the company says. This coffee is born of a collaboration between Starbucks and Ethiopian coffee farmers that started in 2005. Melody Overton. Most of the nation’s coffee ends up on the arabica commodities market, where world overproduction has kept prices low. Oxfam says Starbucks has used the American legal system to block an Ethiopian plan to gain more control over its coffee trade and better earnings for coffee farmers living in poverty. (Picture: WIPO/RES/DEV/GE/09/WWW[130155]). Melody Overton. The purpose of licensing, according to Mr. Mengistie, is “to secure recognition from the coffee distribution industry that Ethiopia owns and controls the use of trademarks, thereby building the reputation and good will of its specialty coffees around the trademarks.” The government of Ethiopia wanted its coffee to have more market visibility so that the export premium for Ethiopian specialty coffee could be raised. This coffee is born of a collaboration between Starbucks and Ethiopian coffee farmers that started in 2005. Sun-Dried Ethiopia Haile Estate coffee appeared at the Reserve Roastery in late January, early February time frame. From these ninth-century highlands, arabica coffee beans began their long journey from Ethiopia to the rest of the world. Our tribute to the birthplace of coffee. The rest of coffee’s history in Ethiopia is quite turbulent. Have fun, dream big and connect with friends. Oxfam says Starbucks is depriving farmers in Ethiopia of $90m a year by opposing the Ethiopian government's efforts to trademark three types of local coffee bean. While managing the Starbucks in Croydon North End, two of my Ethiopian staff asked if they could perform a traditional Ethiopian coffee ceremony. Legal commentators have honed in on the use of the term “designation” in the agreement as a means of circumventing the obstacle caused by the status of the Harrar and Sidamo applications. 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