Starbucks has faced multiple allegations of racism recently – now the company is facing one more.
ETFs with Starbucks exposure are reacting following two back-to-back incidents in Philadelphia and Torrance, California, leading the company to announce an afternoon closure of 8,000 stores for a racial bias training on May 29.
But less than than two weeks before this training, Starbucks is facing new allegations of racism, this time in La Cañada, California. A Latino customer named Pedro has accused a Starbucks employee of writing “beaner,” a racial slur, on his cup.
Top 3 ETFs with Exposure to Starbucks React to Blatant Racism
Let’s take a look at how the top 3 ETFs with Starbucks holdings are reacting according to Yahoo Finance at 1 p.m. Eastern time.
1. iShares Evolved U.S. Consumer Staples ETF Consumer Staples Equities (IECS) with a 3.58% weighting up .25%
2. Consumer Discretionary Select Sector SPDR Fund Consumer Discretionary Equities (XLY) with a 2.79% holding down 0.36%.
3. VanEck Vectors Morningstar Wide Moat ETF Large Cap Blend Equities (MOAT) with a 2.51% holding down 0.08%.
Pedro’s Tweet of the Offensive Cup
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In a statement to NBC4 and other news outlets, Starbucks said that the company was launching a full investigation into the incident. “This is not the experience that we want for our clients,” the statement said. “We asked for [Pedro’s] forgiveness and we are working to correct this. Also, we are investigating the incident to ensure this will not be repeated.”
Pedro was offered a $50 gift card to Starbucks, but he did not take it, saying that it was an insult.