This is me just getting something off my chest…not particularly well thought out, but just wanted to get it out.
Last week a story broke in Willamette Week (WW) about the selling of Stumptown Coffee to TSG Consumer Partners. TSG buys and sells companies to turn profit. The founder of Stumptown Duane Sorenson made the case that he wasn’t selling the company but getting outside money for investment so he could grow the business. According to WW that investment was to the tune of 90% of the company, yet Sorenson says he is still driving the ship so to speak. I am finding it difficult to swallow this pill that he is still in control when he doesn’t own a majority share of the company. Stumptowns popularity was based on its ability to produce a decent craft product (similar to the micro brew movement) that appealed to the local population and the fact that it was a local company. The key here is local. The people here were able to identify with it and took pride that once again Portland was in the forefront of another quality craft. So when I heard OPB’s Think Out Loud today and they were discussing this situation they asked ”Does it matter that Stumptown sold out?” or something to that effect and I wasn’t able to get my two cents in (hence the short blog on it). Yes it matters. You take something that the people take pride in and turn it over to a company that will turn it into a conglomerate of some sort then sell it off for profit. That takes what was a small company which produced a product loved by the local people, took money from the local economy and then would turn that money back around into that local economy. Sorenson went out of his way to make sure that the coffee he purchased was really great quality and would pay fair trade prices or more in some cases. This will probably all change now because by selling to TSG Sorenson has only guaranteed money in his pocket in the short term until TSG feels that they are at the peak of Stumptown’s perfection and then sell it off once again…by then who knows where the coffee will come from or where it is roasted. The money won’t be going back into the local economy and we just have another big coffee chain charging $3.00 for a latte. I don’t begrudge Sorensen for selling a stake of his business. It was of coarse his business to sell, but don’t come back and say that we’re just trying to grow the business and it will always be a local company and nothing is going to change…it changed when the payment changed hands.