Starbucks loses USD 11 billion due to poor sales, boycotts
Houston: Global political tensions are spilling fast into Seattle-based Starbucks Corporation, as the company has lost approximately 11 billion dollars in value, erasing 9.4 per cent of the company's total value.
Within a span of 19 calendar-days, since its November 16 Red Cup Day promotion, shares of Starbucks have plummeted 8.96 per cent, which equates to a nearly USD11 billion loss, amid analysts' reports of slowing sales and a subdued response to the holiday season's offerings.
The boycotts at the Seattle, Washington-based chain have deep roots, touching on sensitive geopolitical issues after the company found itself in hot water following a tweet from Starbucks Workers United, the union representing many of its baristas, expressing solidarity with Palestinians.
"Amid an ongoing boycott due to the Israeli occupation's aggression against the Gaza strip, the undercurrent of discontent signals a challenging brew for the company's future," an industry analyst said.
Starbucks stocks declined for 12 consecutive stock market sessions, the longest-ever recorded streak since the company went public in 1992, and the stock currently hovers at around USD 95.80 per share, down from its yearly high of USD 115.
The company has denied wrongdoing in the scenarios but faces the challenge of maintaining its brand reputation amid divisive global issues.
In a recent call with analysts, Starbucks CEO Laxman Narasimhan said he remains optimistic about the company's diversified channels and ability to engage customers despite macroeconomic challenges and changing consumer behaviours.
The recent boycott of Starbucks comes in part of a large boycott of several global brands over their support of Israel. Starbucks in Egypt reportedly laid off workers in late November after being financially affected by the boycott - forcing it to cut expenses.
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West Asia crisis: Jaishankar holds 4th phone call with Iranian counterpart in 2 weeks
New Delhi (PTI): External Affairs Minister S Jaishankar spoke to his Iranian counterpart Seyed Abbas Araghchi – their fourth such conversation since the West Asia crisis erupted – as New Delhi intensifies efforts to secure safe passage for over two dozen Indian-flagged merchant vessels currently stationed on either side of the Strait of Hormuz.
The two foreign ministers held the phone conversation on Thursday night.
Jaishankar and Araghchi spoke on February 28, soon after the US and Israel launched the attack on Iran that killed Ayatollah Ali Khamenei. They also spoke on March 5 and March 10.
"Had another conversation with Iranian FM @araghchi yesterday night. Discussed bilateral matters as also BRICS related issues," the external affairs minister said on social media.
The latest phone conversation came as India ramped up efforts to secure safe passage to the Indian-flagged merchant vessels through the strategic shipping route of Strait of Hormuz that has been partially blocked by Tehran following an escalation in its conflict with the US and Israel.
Global oil and gas prices have surged after Iran virtually blocked the Strait of Hormuz, a narrow shipping lane between the Persian Gulf and the Gulf of Oman that handles roughly 20 per cent of global oil and LNG (Liquefied Natural Gas).
An Iranian readout said Araghchi briefed his Indian counterpart on the latest situation "resulting from the aggressions and crimes" committed by the US and Israel against Iran and its consequences on the stability and security of the region and the world.
It said the Iranian foreign minister emphasised to Jaishankar Tehran's firm will to exercise the "legitimate right to self-defence".
"Araghchi emphasised the need for international and regional forums and organisations to condemn military aggression against Iran," the readout said.
"Referring to the importance of the role and position of BRICS as a forum for developing multilateral cooperation, he considered it essential for this institution to play a constructive role at the current juncture to support stability and security in the region and the world," it added.
It said Araghchi emphasised the importance of finding a way to strengthen stability and a sustainable security environment in the region and called it a "collective need".
At an inter-ministerial media briefing, External Affairs Ministry spokesperson Randhir Jaiswal said India has conveyed to all sides to adopt the path of diplomacy and dialogue to resolve the conflict as soon as possible.
We are also talking to BRICS member states so that a consensus evolves on this issue, he said.
