WHEREAS: Starbucks prides itself on “innovating to create new experiences,” our company is failing to capitalize on market trends by
continuing to impose an upcharge on plant-based milks. Dairy milk has been declining in popularity since the 1970s, and U.S.
dairy consumption recently hit an all-time low. Younger consumers are at least partly responsible for dairy’s decline, as
multiple studies show that Gen Zers—whose spending power has more than doubled in three years to reach an estimated
$360 billion—view cow’s milk as “basic” or “uncool.” Our company is potentially missing out on billions in revenue by turning
off this important demographic.
Social trends aren’t the only reason consumers have soured on cow’s milk—82% of people who drink plant-based milk do so
because they enjoy its taste, and nearly half the people who try plant-based milk reduce or completely stop their
consumption of cow’s milk.
Personal health and environmental concerns are also driving people away from dairy.
Most people of color suffer from some form of lactose intolerance. While nonwhites currently make up 40% of the U.S.
population, Generation Alpha—Gen Z’s successor—is poised to become the first “majority-minority” population in the U.S.,
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meaning that the demand for plant-based milk will likely increase. And because Gen Alpha parents have already begun
talking with their children about issues like racism and the climate catastrophe, we should also anticipate a growing backlash
against companies that penalize individuals for who they are or for standing up for the planet.
Starbucks claims that it’s committed to increasing plant-based options as an extension of its sustainability mission, yet it
continues to charge an average of 70 cents extra per beverage for plant-based milks, whose production emits roughly three
times less greenhouse gas and uses nearly 10 times less land and two to 20 times less freshwater than the production of
cow’s milk.
Failure to meet publicly stated corporate responsibility goals has been known to negatively impact consumer sentiment
toward companies and may ultimately affect the value of a company’s stock.