This Small Swiss Company Is Taking Starbucks to Court

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Updated Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
This Small Swiss Company Is Taking Starbucks to Court

© Christopher Furlong / Getty Images

Starbucks recalled a coffee maker, and the maker of the maker has sued. Starbucks called the suit “baseless.” It appears, for now, a court will decide the matter.

Starbucks sells a product called the Starbucks Bodum French Coffee Press. Bodum is a small kitchenware company based in Switzerland. Founded in 1944, it now has only a few hundred employees.

A French coffee press is a small coffee maker that allows people to press hot water into ground beans. It is also known as a cafetière à piston or coffee plunger.

Starbucks recalled 263,200 of the Bodum + Starbucks products and claimed they were defective. According to Reuters, Bodum sued Starbucks for “significant brand damage.” Bodum wants Starbucks to pay it for the reputation damage and recall costs. Starbucks says the suit has no merit.

The publicity around the matter risks the reputation of both Bodum and Starbucks. The recalled presses were first sold in November 2016. Over those two years or so, there were reports of nine broken knobs. Starbucks has not disclosed why the product was not recalled sooner.

Some Starbucks Bodum products are still available for sale. Several at eBay are priced at around $20. While Bodum coffee-making products are available at Amazon, the Starbucks model is not.

Starbucks, founded in 1971, has become the world’s largest coffee-shop company. It has over 30,000 stores and it has expanded well beyond the coffee business. It stores sell food, noncoffee drinks and accessories. Starbucks bagged coffee is sold in grocery stores. Starbucks also has expanded into the credit card business and has a joint venture with Spotify to sell subscriptions to a digital music service.

The coffee press recall is likely a small reputation risk for Starbucks, but one that has caused it some negative publicity. Perhaps more important to Starbucks, it is not considered America’s favorite coffee brand, as one of its major competitors holds that distinction.

The matter is different for Bodum, given the company’s size. The outcome of the suit almost certainly will have a major effect on its business, which is why it went to court in the first place.

[recirclink id=546999]
[wallst_email_signup]

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618