Starbucks is reported to have lost almost $11 billion (€10.2 billion) in market value. The main reasons are employee strikes and boycotts in support of Palestine.
To recoup the losses, which Starbucks surely anticipated and with the holidays approaching, the corporation announced "Red Cup Day"; a marketing strategy that gives consumers the opportunity to get a free glass with every purchase.
With a large number of new promotions, Starbucks' stock value has fallen by 8.96 percent, or $10.98 billion, reports newsweek.
Apparently the biggest reason is the recent global boycott of brands and franchises that organizers say are directly or indirectly helping Israel.
Despite the loss of value, both economic and social, Starbucks CEO Laxman Narasimhan is confident that Starbucks can change its image and bounce back from the "macroeconomic challenges we are facing."
However, the statistics show the opposite, because the company's efforts are not in line with the results they brought years ago.
For example, "Red Cup Day" last year resulted in an 81 percent increase in spending compared to just a 31.7 percent increase this year. /Telegraph/
