DIGIVESTASI - Starbucks' market value fell by almost $12 billion (approximately Rs 186 trillion) over the past month. Starbucks' losses were caused by slowing sales, amid declining consumer purchasing power, and increasing conflict between the company and its employees. 

There is also speculation that the decline in value is due to the Israeli boycott of the Gaza offensive. Despite better-than-expected sales growth of 8% in the fourth fiscal quarter, coffee stocks slowed on a weekly basis, following the trend in the snack and coffee industry. 

When the market opened on Monday (April 12), Starbucks shares were down 1.6%. This occurred for 11 consecutive sessions, marking the longest decline since Starbucks went public in 1992.

The decline wiped out 9.4% of Starbucks' market value, down nearly USD 12 billion, according to a New York Post report on Sunday (October 12, 2023). In early trading Thursday, the Seattle-based company's share price fell about 6.5% to $96.90 per month.

Attacking and boycotting Israel 

As Starbucks' stock price began to fall, the company celebrated its annual Red Cup Day. In this promotion, baristas handed out free holiday-themed red cups to customers who bought coffee on November 16, although the celebration was overshadowed by an employee strike. 

Hundreds of workers belonging to the General Workers Union walked out on the day of the promotion and demanded an increase in the number and hours of work. Meanwhile, non-union workers faced difficulties due to labor shortages. They were flooded with orders until the drinks were full and were beaten up by angry customers who waited too long for their orders. 

This protest is just the latest incident in the conflict between Starbucks and its labor unions. Last month, the two entities filed conflicting lawsuits over the union's social media post declaring "Solidarity with Palestine!" after a deadly Israeli attack.  

After Workers United published the controversial statement in a deleted post on X last month, which had nearly 100,000 followers, Starbucks quickly distanced the organization from the company. 

Starbucks said: "We unequivocally condemn acts of terrorism, hatred and violence, and we disagree with the statements and opinions of the United Workers Union and its members. The words and actions of the Unions are their own."

The reaction was interpreted as a form of support for Israel regarding Palestine, triggering calls for a boycott. Despite Starbucks' efforts to prevent boycott calls, the hashtag #boycottstarbucks is still trending on social media. 

According to TikTok's Creative Hub, a database that details user information, the hashtag has been used about 16,000 times in the past 30 days, generating a total of 167 million views.

On X, other social media users seem to support Starbucks' market decline. 

"I haven't been to Starbucks in months because of the boycott and I'm happy to see less and less people going there," wrote a user named Kate. 

"WE WON," said another while many netizens said the drop in market capitalization was "deserved." 

When The Post reached out to Starbucks for comment, a company spokesperson pointed to a message from chief partnership officer Sara Kelly posted on Starbucks' website last month. 

"Starbucks unequivocally condemns acts of hate, terrorism and violence," Kelly wrote. "As a leadership team, we want to once again extend our deepest condolences to those killed, injured, displaced and affected by the heinous acts of terrorism, escalating violence and hatred against innocent people in Israel and Gaza."