With over 30,000 stores in more than 80 markets worldwide, Starbucks is the largest coffeehouse chain on the planet. Every day, millions of people get their coffee fix from Starbucks along with breakfast sandwiches, pastries, and other cafe favorites. But have you ever stopped to wonder – where does Starbucks get all these products from? How do they source ingredients and manufacture food on such a massive scale while maintaining their high standards of quality and ethics?
Let‘s take a closer look behind the scenes of the Starbucks supply chain to find out. The journey from bean to cup is a complex operation spanning multiple continents and involving an intricate web of farmers, suppliers, and distributors. Here‘s what you need to know about where Starbucks products come from and how it all comes together.
Starbucks‘ Sourcing Philosophy
As one of the most recognizable brands in the world, Starbucks has always placed a major emphasis on responsible and ethical sourcing. With great scale comes great responsibility, and Starbucks takes this duty seriously with industry-leading supplier standards.
The vast majority of Starbucks products are not produced or manufactured by the company itself. Instead, they partner with a carefully vetted network of suppliers who share their values and commitment to quality, sustainability, and social impact. Starbucks has several programs in place, such as C.A.F.E. (Coffee and Farmer Equity) Practices, to ensure ethics and sustainability are prioritized every step of the way.
While it would be more efficient to fully vertically integrate their supply chain, Starbucks chooses to build long-term relationships with trusted suppliers for most of their needs. This gives them access to the expertise of specialty companies and allows them to source the highest quality ingredients from the regions that do them best. Starbucks focuses on their core competency – operating coffeehouse locations – while tapping top suppliers for everything else.
Where Does Starbucks Coffee Come From?
Obviously coffee beans are the most important ingredient in Starbucks‘ supply chain. All of Starbucks coffee is arabica, the higher quality species of coffee (as opposed to robusta). To source the finest arabica beans, Starbucks goes straight to the source in the "Bean Belt" – the equatorial regions between the Tropics of Cancer and Capricorn with the ideal climate for coffee cultivation.
The major coffee growing regions Starbucks sources from include:
- Latin America: Brazil, Colombia, Costa Rica, Guatemala, Mexico
- Africa: Ethiopia, Kenya, Rwanda, Tanzania
- Asia Pacific: Indonesia, Papua New Guinea, Vietnam
Interestingly, while coffee is native to Africa and Latin America is the top producing region today, Starbucks actually sources the largest portion of its coffee from Asia Pacific countries. This is likely due to the competitive pricing and rising quality from this region.
Regardless of origin, all Starbucks coffee is ethically sourced in adherence to C.A.F.E. Practices guidelines developed in partnership with Conservation International. These guidelines help protect the environment, ensure safe and humane working conditions, and support the livelihoods of coffee farmers. 99% of Starbucks coffee is now ethically sourced, and the company is committed to reaching 100%.
The Suppliers Behind Starbucks Food and Beverages
While coffee put Starbucks on the map, their food and other beverage offerings have been key to their growth as a cafe. Starbucks doesn‘t prepare any of its food in-house, so it‘s all sourced from a network of trusted suppliers:
Premium Brands Holdings (Breakfast Sandwiches)
Have you ever wondered where your Bacon Gouda or Sausage and Cheddar breakfast sandwich came from? The answer is Premium Brands Holdings, a leading specialty food manufacturer and Starbucks supplier since 2015.
Premium Brands produces a wide range of packaged sandwiches, wraps, and breakfast items for Starbucks stores in Canada and the United States. They have facilities on both sides of the border to efficiently serve Starbucks‘ North American locations. The company prides itself on innovation and working closely with partners like Starbucks to develop exciting new menu items.
SROriginals (Cake Pops and Pastries)
You can thank SROriginals for those delightful Birthday Cake Pops and other sweet treats in the Starbucks bakery case. SROriginals is a wholesale dessert supplier based in Aurora, Colorado that has been a Starbucks partner since 2011.
The certified woman-owned business is known for its eye-catching, innovative pastries and desserts. Chances are if you‘ve had a cake pop, cookie, or other baked good at Starbucks, it came from the expert bakers at SROriginals. The supplier is so popular that they now offer some of their creations, like their signature cake balls, to consumers directly under the Ticklebelly brand.
Fontana / Nestle (Syrups)
Ever wonder how Starbucks achieves the perfect flavor balance in your Vanilla Latte or Pumpkin Spice Frappuccino? The secret is in the syrup. Starbucks uses specially formulated syrups to flavor and sweeten many of its beverages, and they come from Nestle‘s Fontana brand.
Fontana has been Starbucks‘ flavor syrup supplier for many years, producing a wide range of classic and seasonal flavors just for Starbucks stores. Nestle has the production and distribution capabilities to produce syrups at scale to Starbucks‘ specifications. Some flavors you‘ll only find in Starbucks stores, while others are also available to purchase under the Fontana brand.
Teavana / Nestle (Teas)
Starbucks is also the largest purveyor of specialty teas thanks to its partnership with the Teavana brand. Originally an independent chain of tea houses, Starbucks acquired Teavana in 2012 to complement its coffee business.
Teavana teas are now produced exclusively by Nestle and supplied to Starbucks stores around the world in flavors like Passion Tango, Peach Tranquility, and the exciting new Teavana Frozen Teas. Like with Fontana syrups, Teavana by Nestle teas are sold both in Starbucks and at grocery stores.
Dairy Farmers of America / Dean Foods (Milk)
While alternative milks like soy, almond, and oat are taking market share, cow‘s milk is still in high demand at Starbucks. So who provides those endless gallons of 2%, whole, and non-fat milk steaming up your lattes?
Dairy Farmers of America (DFA) is Starbucks‘ primary milk supplier, both directly and through their ownership of Dean Foods. Dean Foods has been a longtime Starbucks partner, even becoming the exclusive supplier of Silk soymilk to the chain in 2003. Since merging with DFA, Dean Foods now provides most of Starbucks fluid milk needs. Much of this milk comes from DFA‘s cooperative of American dairy farmers.
PepsiCo (Ready-to-Drink Products)
In addition to all the beverages prepared in stores, Starbucks has a massive business in ready-to-drink (RTD) products sold in convenience and grocery stores. The Frappuccino and Doubleshot you grab on the go were likely produced by PepsiCo, Starbucks‘ licensed manufacturer and distributor for RTD products.
Pepsi and Starbucks have had a joint venture partnership for over 25 years to bring RTD coffee drinks to the masses. Pepsi has the production scale and efficiency, established grocery relationships, and vast distribution network to make and sell these beverages at high volumes and affordable prices. This partnership has been a win-win, dramatically expanding Starbucks‘ brand presence beyond its cafes and providing Pepsi a lucrative revenue stream in the high-growth RTD coffee space.
Bringing It All Together
As you can see, Starbucks leans heavily on its suppliers to source ingredients and manufacture products to its rigorous standards. This frees Starbucks up to focus on its retail operations while still having full control over the quality and ethical impact of its supply chain.
Of course, managing such a complex web of suppliers scattered across the globe is no easy task. Starbucks has invested heavily in cutting-edge supply chain technology to increase transparency, drive efficiency, and ensure a steady flow of fresh products to its stores worldwide.
At the heart of it all is Starbucks‘ central support center in Seattle (and satellite offices around the world) where a large team manages relationships with thousands of suppliers. This team not only keeps everything running smoothly day-to-day but also drives innovation by collaborating with suppliers on new products and sustainability initiatives. It‘s in large part thanks to these behind-the-scenes efforts that we‘re able to rely on Starbucks for our daily coffee fix.
So the next time you take a sip of your Flat White or a bite of your Everything Bagel, remember that it took an army of passionate partners from all corners of the world to bring it to you. While Starbucks will always be the face of the brand, it‘s this robust and responsible supplier network that serves as the backbone of the business. Because of their dedication to quality and social impact for people and planet, you can feel good about not just how your Starbucks purchase tastes, but where it came from.
