Dongbanwi, Why Starbucks Could Not Promote the 'Win-Win Beverage' They Developed

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[Asia Economy Reporter Kim Bo-kyung] The Win-Win Growth Committee has finally unveiled the 'Win-Win Beverage' developed in collaboration with Starbucks to support neighborhood cafes after several twists and turns. Previously, the event for delivering the Win-Win Beverage was postponed once due to the controversy over carcinogens detected in Starbucks' promotional gifts.

On the 31st of last month, the Win-Win Growth Committee, Starbucks Korea, and the National Cafe Owners Cooperative jointly revealed the Win-Win Beverage 'Hallamungyeong Sweety' and presented plaques of appreciation to the two organizations for realizing win-win cooperation.

Hallamungyeong Sweety, made using Jeju Hallabong oranges and Mungyeong omija berries, is a beverage developed through collaboration between Starbucks and small business owners. Since the 25th of last month, it has been sold in limited quantities at 100 neighborhood cafes. Starbucks has committed to transferring the beverage recipe to small business owners and providing raw materials sufficient for 50,000 servings. The beverage name reflects local agricultural products and regional names, symbolizing coexistence with local farmers.

This initiative is part of the win-win agreement led by the Win-Win Growth Committee in March. The agreement aims to establish a foundation for communication and cooperation within the cafe industry to enhance the self-sustainability of small business owners. Starbucks also pledged to support facility repairs for small business cafes in regions where livelihoods are difficult or emergency aid is needed due to disasters.

Earlier, in May 2020, Starbucks signed an agreement with the Ministry of SMEs and Startups as a 'Responsible Company (Voluntary Win-Win Cooperation Company)' to promote youth entrepreneurship.

However, last month, the detection of formaldehyde, a carcinogen, in Starbucks' customer giveaway item 'Summer Carry Bag' dampened the celebratory atmosphere. Formaldehyde is classified as a Group 1 carcinogen by the International Agency for Research on Cancer under the World Health Organization. The Summer Carry Bags provided as gifts or sold online by Starbucks totaled a staggering 1.08 million units.

The scene of the win-win beverage delivery ceremony. (From the second person on the left) Jo Juhyun, Vice Minister of the Ministry of SMEs and Startups; Song Hoseop, CEO of Starbucks Korea; Oh Younggyo, Chairman of the Commission for Shared Growth; Go Jangsu, Chairman of the National Cafe Owners Cooperative.

Starbucks' spirit of win-win cooperation, promising to share management know-how and beverage recipes with small business owners, could not escape criticism as it was overshadowed by the carcinogen controversy.

As a result, the Win-Win Beverage delivery ceremony scheduled for early August was temporarily postponed. Holding the event amid worsening public opinion about Starbucks was equally burdensome for both the Ministry of SMEs and Startups and the Win-Win Growth Committee. The Ministry explained, "We decided to temporarily postpone the delivery ceremony because the positive activities aimed at win-win cooperation with small business owners could be overshadowed by negative issues if the event proceeded."

The belated delivery ceremony held on the 31st of last month also barred media on-site coverage at Starbucks' request. Regarding this, a Win-Win Growth Committee official stated, "(Starbucks) is cautious about large-scale promotion considering the ongoing controversy."

Meanwhile, the Win-Win Growth Committee, Starbucks, and the National Cafe Owners Cooperative plan to introduce new Win-Win Beverages together in the second half of this year. They announced plans to expand the target cafes and support scope to continue active win-win activities.