Starbucks Strike Looms as US Coffee Prices Surge Amid Tariff Talks

Starbucks Union Votes to Authorize Strike on Peak Sales Day

Starbucks Workers United unionized employees voted overwhelmingly to strike if a contract is not reached by November 13, coinciding with Starbucks’ busiest day, Red Cup Day. After months of stalled negotiations, 90% of workers approved strike authorization to press for their first contract agreement. The strike threat emerges amid other Starbucks developments, including the sale of a majority stake in its Chinese business to Boyu Capital for $4 billion, marking a significant divestment (Reuters, 13 Nov 2025; Daily Coffee News, 13 Nov 2025).

US Coffee Prices Rise Sharply Due to Tariffs and Weather Challenges

US coffee prices surged to $9.14 per pound in September, up 3% from August and 41% higher than a year ago, driven by tariffs and adverse weather. The Trump administration imposed a 40% tariff on Brazilian coffee in July atop a previous 10% tariff, contributing to supply constraints as Brazilian exporters hold back shipments amid cost disputes. Meanwhile, La Niña weather patterns threaten Brazilian coffee production, further tightening supplies. Some roasters are responding by increasing prices and roasting more in-house to mitigate costs (AgriNews, 12 Nov 2025).

Arabica Coffee Futures Dip as Market Awaits US Tariff Decisions

Arabica futures fell over 3.5% to just under $4.10 per pound, pressured by profit-taking and anticipation of potential tariff cuts on coffee imports hinted by President Trump. However, uncertainty remains as the US Supreme Court reviews the legality of these tariffs. Inventory levels continue to decline, with stocks at a 1.75-year low, while weather improvements in Brazil offer some optimism for the 2026/27 crop (Trading Economics, 13 Nov 2025; ADM Investor Services, 13 Nov 2025).

Innovative Coffee Partnerships Take Flight in Aviation Sector

Peet’s Coffee and other major roasters are partnering with airlines such as Southwest and Jet2 to improve coffee quality in-flight, targeting a traditionally underwhelming market. Peet’s new medium-roast blend, Off the Grid, specially formulated for altitude conditions, launched with Southwest Airlines to enhance traveler experience and brand exposure. This trend reflects a strategic move to meet consumers where they are and capitalize on captive audiences (GCR Magazine, 13 Nov 2025).