A decades long relationship between Starbucks and Bodum USA, the maker of the Chambord French Press which the companies sold together, has led to a third lawsuit filed against Starbucks.
The two companies started their partnership when Howard Schultz became CEO in 1986 and created a connection with Bodum and its CEO, Jørgen Bodum. The two agreed to build their brands together, focusing on high quality and a costumer first mantra. After Schultz stepped down in 2000, Starbucks tried to cut costs and launched the "Anniversary Press" in 2007, which led to a legal dispute over trade dress infringement with Bodum.
Schultz's return as CEO in 2008 marked an effort to reconcile with Bodum, resulting in a confidential settlement and a renewed partnership. After Schultz stepped down again in 2017, issues arose when Starbucks' suppliers began infringing on Bodum's intellectual property in 2018, leading to another lawsuit in 2019.
Schultz's return as interim CEO in 2022 once again led to a resolution and an agreement to reaffirm Bodum's exclusivity. However, after Schultz stepped down in 2023, Starbucks refused to honor the agreement, prompting further legal action from Bodum.
The latest lawsuit was filed by Bodum against Starbucks in June of 2024, according to a report in BloombergLaw. Bodum USA Inc. and its subsidiary Pi-Design AG are suing Starbucks for allegedly selling a French press coffeemaker that infringes on Bodum's patented design and violates an exclusive seller agreement. The lawsuit, filed in the US District Court for the Northern District of Illinois, claims Starbucks' product mimics Bodum's patented "Plunger-Filter Beverage-Making Machine with a Closable Pouring Opening" and breaches a 2008 settlement agreement where Bodum was designated as Starbucks' exclusive supplier.
Bodum alleges that Starbucks' actions have harmed its market share, brand, and profits, and is seeking injunctive relief, damages, and other compensation. Starbucks denies the claims and intends to defend itself in court.
According to a July 29 Globe Banner report, Starbucks has been involved in numerous breach of contract legal disputes, including a recent lawsuit over alleged misuse of trade secrets related to a product launch, raising concerns surrounding the company’s ethics.
On April 30, 2024 second-quarter earnings had dropped 2%. On a call with investors, CEO Laxman Narasimhan acknowledged disappointing financial results, with net revenue down 2% to $8.6 billion. On the call, Narasimhan said, “let me be clear from the beginning. Our performance this quarter was disappointing and did not meet our expectations.”
On July 30, 2024, Starbucks reported quarterly revenue below analysts' expectations in Q3, with net sales dropping 1% to $9.11 billion, compared to the expected $9.24 billion. Despite this, the company's shares rose more than 5% in extended trading as the results were better than feared. The coffee giant's net income was $1.05 billion, or 93 cents per share, down from $1.14 billion, or 99 cents per share, a year earlier. U.S. traffic fell by 6%. Starbucks is exploring strategic partnerships in China to accelerate growth and opened 526 net new stores during the fiscal quarter.
The ongoing legal battle with Bodum and faltering fiscal results for Starbucks in 2024 coincided with the appointment of new CEO Brian Niccol on August 13, a position he will fully step into on September 9.