### Starbucks Drops Plant-Based Milk Surcharge in US and Canada

In a significant move for both the climate and the coffee industry, Starbucks announced that starting November 7th, its stores in the US and Canada will eliminate the extra charge for plant-based milks. Options such as oat, soy, almond, and coconut milk, which previously added 70 to 80 cents to a drink, will no longer incur additional costs. Plant-based food advocates have long campaigned for this change, noting the negative environmental and animal welfare impacts of the dairy industry.

The decision comes at a time when Starbucks is working to recover from a notable decline in sales over the past year. According to the New York Times, this decline is driven partly by customers turning away due to inflation and high prices, such as $8 lattes, as well as various boycotts. The plant milk surcharge was also a point of contention; data from 2021 shows that about 25% of Starbucks' milk-based drinks were ordered with plant-based alternatives.

This change addresses both customer demands and climate concerns. Producing cow's milk commands a high carbon footprint, significantly contributing to greenhouse gas emissions and environmental degradation. Starbucks has pledged to cut its greenhouse gas emissions by 50% by 2030, and expanding plant-based options is pivotal to reaching this goal. Current figures indicate that the company's emissions from cow's milk have increased by 8% from its 2019 baseline, underscoring the urgency for sustainable practices.

The surcharge elimination signifies a win for plant-based advocates, including those from Switch4Good and PETA, who have campaigned against the extra costs for years. Notable protests included Succession actor James Cromwell supergluing himself to a Starbucks counter in New York City in 2022. PETA also emphasized its long-term efforts in rallying supporters and engaging celebrities like Sir Paul McCartney to influence Starbucks' policies.

Switch4Good asserts that the actual cost difference for Starbucks to use plant-based milk is between 9 and 28 cents, making the previous surcharge of 70 to 80 cents an exorbitant markup. The removal of this surcharge could further popularize dairy-free milk options, already the second most requested drink customization at Starbucks. Moreover, the move may inspire other coffee chains and food companies to follow suit, potentially leading to broader climate-friendly consumer habits.

It's also worth noting that the company has faced lawsuits over the upcharge on grounds of discrimination, given that around one-third of Americans, especially people of color, struggle with lactose intolerance. This policy shift could thus have a positive ripple effect, making plant-based options more accessible and equitable for many customers.

With Starbucks' massive market influence, this change could enhance the market share of dairy-free milk, which has already been resilient amid inflation compared to plant-based meat alternatives. Plant-based milk revenues grew 9% from 2021 to 2023, capturing almost 15% of total milk sales, even as plant-based meat sales dropped by 13% during that same period.

Ultimately, Starbucks' move underscores the potential impact of persistent advocacy and consumer pressure, along with the growing recognition of the need for sustainable and humane food options.