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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PM Modi, RSS strengthening wall in path of SCs, STs, OBCs: Rahul Gandhi
New Delhi (PTI): Leader of Opposition in the Lok Sabha Rahul Gandhi on Tuesday alleged that Prime Minister Narendra Modi and the RSS were strengthening the wall standing in the path of Dalits, Adivasis and OBCs, even as he acknowledged that the UPA took steps to weaken that wall but not to the extent it should have.
Addressing the 'Samvidhan Rakshak Abhiyaan', Gandhi also referred to the function held on Constitution Day in Parliament and said that it is his guarantee, that "Modi has not read" the Constitution.
"If PM Modi would have read this book then what he does daily, he would not do it," Gandhi said, displaying a copy of the Constitution of India.
Gandhi said the country's whole system is pitted against Dalits, Adivasis and backward class people.
He said a wall obstructs the path of Dalits, Adivasis and OBCs and Modi and the RSS are strengthening that wall by "adding cement to it".
"Slowly the wall (obstructing the path of SCs, STs, OBCs) is getting strengthened. Earlier, the UPA government gave MGNREGA, the land acquisition act, the right to food...those were ways to weaken that wall. Today, when I look back, I can say the UPA government did not weaken the wall to the extent it should have, it did not do it as strongly as it should have," Gandhi said.
"However, we used to make efforts to weaken that wall but they (the BJP) are strengthening that wall by adding concrete," the former Congress president said.
Gandhi said a caste survey being carried out in Telangana is a historic step and the Congress will do the same wherever it comes to power.
