Files
Abstract
This research examines how independent and small-chain coffee shops (businesses with limited retail locations operating independently from large conglomerates), specifically Colectivo, Counter Culture, and Intelligentsia in Chicago, challenge corporate dominance in the global coffee industry through alternative procurement and sales channels. While the global coffee market exceeds $465 billion, approximately 25 million smallholder farmers produce 80% of the world’s coffee yet receive less than 10% of its retail value (Fairtrade International, 2023; ICO, 2023). This stark disparity exemplifies the power imbalances within global value chains where corporate actors maintain dominance through complex certification requirements, preferential supplier programs, and financial barriers that systematically exclude smaller participants. Through case study analysis, this research demonstrates how these independent businesses develop direct trade relationships (establishing personal partnerships without conventional middlemen), ethical sourcing practices (prioritizing fair compensation, environmental sustainability, and producer welfare), and innovative distribution models (creating alternative pathways for moving coffee from farm to cup) to create viable alternatives to corporate-controlled supply chains. These alternative approaches not only increase producers’ economic agency, with farmers earning premiums up to 30% above conventional market rates, but also redefine value beyond narrow certification metrics to encompass environmental sustainability, social responsibility, and community well-being (Raynolds, 2009; Wilkinson, 2006). While these businesses face significant constraints including scale limitations and accessibility concerns, their collective impact extends beyond their market share by demonstrating the viability of alternative business models that potentially influence industry standards and consumer expectations. The findings contribute to understanding how local actors can reconfigure power dynamics within global value chains, with implications for conceptualizing more equitable and sustainable trade relationships across various industries.