Starbucks Corporation (NASDAQ:SBUX) Joins The Cage-Free Eggs Drive Alongside McDonald’s (MCD) And Burger King

Share on FacebookTweet about this on TwitterShare on Google+Share on RedditShare on LinkedInPrint this pageEmail this to someone

Starbucks Corporation (NASDAQ:SBUX) is working to drop eggs laid by caged poultry in favor of those produced by cage-free flocks. The company has made a commitment to make a full transition by 2020 at its North American stores. The gravitation towards cage-free eggs is gaining steam considering that Burger King Corp and McDonald’s Corporation (NYSE:MCD) have also pledged and set timelines for their shift to cage-free eggs.

Starbucks Corporation (NASDAQ:SBUX) has since 2008 been buying cage-free eggs, but the company has now made a firm commitment to move to cage-free eggs 100% within the next five years. Cage-free eggs are those produced by flocks that are free to move around inside a shed. They are different from eggs produced by flocks confined into cages. According to the U.S. governments, cage-free chickens are those that have enough room to roam around even if they don’t have access to the outdoor.

Supply chain constraints

The demand for cage-free eggs currently outpaces supply. Part of the reason is that cage-free eggs production carries higher costs. The other reason is that most farmers are only beginning to redesign their poultry housing.

The steady shift to cage-free eggs has also produced competition among buyers. Starbucks Corporation (NASDAQ:SBUX) acknowledges the existence of supply-demand constraint in the cage-free eggs supply chain. As such, the company has revealed its determination to work closely with suppliers to ensure that its self-imposed deadline for switching to 100% cage-free eggs by 2020 is met.

The shift to cage-free eggs from caged eggs is part of Starbucks’ Animal Welfare-Friendly Practices strategy.

Push and pull in cage-free production

Starbucks Corporation (NASDAQ:SBUX) is not alone in the push to treat restaurant customers to cage-free eggs. McDonald’s has also made commitment to transition its stores to cage-free eggs within the next decade. On its part, Burger King is working to make its stores cage-free eggs locations by 2017.

The push to cage-free eggs in stores has been around for a long time. However, the transition has been frustrated by other meat farmers who fear that they could be targeted next after poultry.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

You may also like...

More in MCD
mcdonald's inside
A Look At Recent Events At McDonald’s Corporation (MCD)?

McDonald’s Corporation (NYSE:MCD) has been in the midst of re-branding itself and carrying out an image makeover process for quite...

Close