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Starbucks Agreement May Affect Other Coffee Brewers


By China Millman, Pittsburgh Post-Gazette

April 06, 2008

    When Starbucks announced at its March 19 shareholders meeting
    that it had entered into an agreement to buy the Seattle-based
    Coffee Equipment Co., the news spread quickly. The blogosphere
    weighed in, discussing Starbucks' intentions and the possible
    effects on the market.

    For Luke and Alexis Shaffer, however, the news was much more
    personal. The couple own 21st Street Coffee, which has locations in
    the Strip District and in the Frick Building lobby, Downtown. Their
    Strip District store is one of a fairly small group of cafes that have a
    Clover, a $10,000 single-cup, commercial-grade coffee brewer
    created by the Coffee Equipment Co.

    Many believe the Clover makes the best possible cup of coffee, not
    just because each cup is brewed fresh, but also because the
    machine excels at bringing out the unique flavors in different
    varieties of beans. There are currently about 250 Clovers in cafes
    around the world, about half in North America.

    The Shaffers installed the Clover in July 2007. Now they, along with
    other Clover owners and all of the people who buy their coffee, are
    left wondering what will happen next. While the Coffee Equipment Co.
    has assured businesses that it will continue to provide service and
    parts for the machines that it has sold, no decision has yet been
    reached about whether Clovers will continue to be available to
    independent purchasers. It is also unclear effect the Starbucks name
    will have on the Clover brand.

    The large-scale introduction of Clover machines is a significant shift
    for a company that has been moving toward ever-more automated
espresso machines that promise to be user-friendly and extremely consistent but that produce middle-of-the
road espresso.

When used properly, the Clover produces unique cups of coffee, because grind size, dose, water
temperature and contact time are varied depending upon the specific "recipe" for individual varietals of
beans.

Mr. Shaffer doesn't believe that the value of the Clover is diminished by its association with Starbucks, at least
not for stores like his.

"For businesses that purchased it solely for the 'wow factor' ... certainly it will diminish what they're doing," he
says. "There isn't anything like it, [but] it isn't a miracle machine where you can put Maxwell House into it and
it's going to turn into something wonderful."

But Rich Westerfield, owner of Aldo, a cafe in Mt. Lebanon, abandoned a tentative plan to buy a Clover as
soon as he heard the news. While he thinks the Clover is a wonderful machine, there are similar methods of
making coffee that don't involve a $10,000 investment, especially one associated with Starbucks.

"There was a cachet that came with having it, [and] that cachet really isn't there any more," says Mr.
Westerfield.

The purchase of the company suggests that Starbucks is picking on growing interest in brewed coffee, rather
than just espresso. Although most Starbucks stores go through brewed coffee very quickly, once coffee has
sat for even 30 minutes, there are noticeable changes in its taste and aroma.

But, most criticism of the quality of Starbucks coffee concerns the beans it uses rather than the brewing
methods. Most Starbucks coffee is dark roast, and critics often describe it as overroasted, even burnt. Mr.
Shaffer compares these types of beans to a well-done steak. While some people might like it that way, it's not
the best choice if you want to experience the maximum amount of flavor from your steak or your coffee.

Both Aldo and 21st Street Coffee use Intelligentsia coffee beans. Intelligentsia is a direct-trade company,
meaning beans are scored by a panel of tasters, and Intelligentsia pays a premium above the fair trade price
based on the quality of the beans.

On average, 21st Street Coffee has about eight to 10 types of coffee that can be made on the Clover. All of its
beans are roasted fresh each week at Intelligentsia, and employees grind them only seconds before making
the coffee.

As Starbucks grew to behemoth proportions, many people believed it was driving independent coffee stores
out of business. But in 2002 the Wall Street Journal reported that, contrary to popular opinion, Starbucks'
growth wasn't hurting independent cafes and might even be helping them because the chain raised people's
awareness about quality coffee.

Mr. Shaffer hopes that a Starbucks Clover might play a similar role.

"If Starbucks employs it well, it might continue to educate the customer. It will depend on what they do. If they
continue to really, really overroast the coffee and put that into the machine, it's not going to highlight the
subtleties that we look for."

Restaurant critic China Millman can be reached at cmillman@post-gazette.com or 412-263-1198.
Andy Starnes/Post-Gazette
21st Street Coffee and Tea co-owners Luke
Shaffer, left, and Dominic Demangone stand
behind the counter of their Strip District store.
Alexis Shaffer, not pictured, is also a co-owner.
A second store is in the Frick Building,
Downtown.