s, and in the process, it could potentially fix its popularity – or lack thereof – Down Under. A greener way to do business better Despite its overseas success, Starbucks’ journey in the Australian market has been anything but smooth. After initially launching in 2000, it opened dozens of stores, only to close the majority of them less than a decade later, before selling the licence to the Withers Group, a family holding company that until recently ran 7-Eleven Australia, in 2008. In the following years, Starbucks Australia continued to struggle to compete in the local market, but it seems to have turned a corner, posting a A$3.1 million statutory profit in FY23 compared to a A$5.8 million loss the year before. Now, it is collaborating with Australian technology start-up Phantm to develop a more sustainable coffee cup, which could win over consumers and sustain the retailer’s future down under. In 2022, Starbucks Asia Pacific awarded Phantm a sustainable innovation grant for a reusable coffee cup concept, dubbed the ‘Coffee Coffee Cup’ because it is made out of PHA materials and spent coffee grounds. The cup is just like plastic with the key difference of being fully compostable and free of the micro or nano plastics that burden the environment. Now, Phantm and Starbucks Australia are working together to establish the viability of the concept, with a view to scaling it up more broadly in the future. Phantm is also conducting an assessment to help Starbucks Australia understand the environmental impact of its cups.  In addition to this, Starbucks Australia confirmed that it will be rolling out a new way to consume takeaway coffee in 2024. A spokesperson from Starbucks Australia exclusively told Inside Retail, “In Australia we are actively working on managing waste with greener cups and lids which we know is an important step forward. In 2024 we will have more exciting news to share.” While the work with Phantm is currently an Australia-only initiative, it aligns with Starbucks’ global aim to cut its carbon water and waste footprints by 50 per cent by 2030 in the pursuit of becoming resource-positive. Transparency and communication is what consumers want The environmental impact of eco-friendly take-away coffee cups has been a point of contention for the best part of a decade, and the question as to whether they are actually better for the environment and not just the business’s bottom line, remains a grey area rife with greenwashing. In an era of greenwashing, consumers want transparency and communication from brands in regards to their sustainability moves, with 77 per cent of respondents to Human8’s annual ‘What Matters 2024 Report’ supporting this, and 43 per cent saying that a lack of communication about sustainability meant that the business was not a sustainable one. Traditional sustainability is no longer adequate for Australian consumers. The report revealed that 67 per cent of respondents agreed a move beyond this to reversing and regeneration is essential. The report found 79 per cent of Australians believe brands need to take responsibility to help safeguard the future of our planet. Starbucks Australia told Inside Retail, “We believe it is paramount for brands to showcase the genuine environmental efforts they’re undertaking. Customers want and need to know they can trust brands and that trust is built through action and accountability. This goes further than surface-level change and involves a comprehensive analysis of the entire supply chain, ensuring that impactful changes are made.” “Before you can really make a difference you need to know what to focus on,” they said. “This is not an easy task and so having the right data and experts in your corner is really important. Our work with Phantm is crucial in understanding the stories we have to tell and telling them truthfully.” Business behind making plastic a phantom at Starbucks Australia Phantm wasp founded in 2020 by current CEO and social cause advocate Elliot Costello, the brains behind the Polished Man campaign. Is on a mission to deplastify the world through the supply chain by providing a purpose-built platform to aid organisations in tracking and reducing the amount of plastic waste they produce. The platform’s primary objective is to provide an independent pathway for businesses to become aware of and reduce the plastic footprint they leave. On the books already are leading international and Australian retailers Starbucks Australia, Mecca and Norwood Industries, a few of the early adopters. Matthew Jorgensen, senior business director of Human8, told Inside Retail, “The key takeaway is that most Australians no longer believe the status-quo mindset when it comes to the state of our environment and our communities is sufficient. With regenerative sustainability, brands are challenged to foster a more harmonious relationship between commerce and caring for our people and planet. A healthy environment and social equity are interconnected components of a truly sustainable and regenerative future. “We need to fundamentally change how we do things if we want to safeguard the wellbeing of present and future generations.” Brands have a powerful role in inspiring consumers to move in the direction of positive change, as 70 per cent of consumers believe that making the world a better place isn’t something they can do solo and that businesses with clear visions are required to champion change. A mere 10 per cent of consumers confidently state they have a sustainable lifestyle, and price and availability were two factors that brands could offer consumers to adopt a more sustainable lifestyle. Edward Whitehead, Phantm’s head of strategy and a global plastics expert, told Inside Retail, “Businesses can’t just leapfrog into perfection, and it’s important they work transparently to improve, be better and do better.”