Pax World Funds, an asset manager that evaluates companies for social responsibility, said Wednesday it "had no choice" but to sell about $23.4 million worth of stock in Starbucks Corp. because of a deal to produce coffee liqueur with bourbon-maker Jim Beam.
Pax World said in a Feb. 17 letter to Starbucks that it and other parties were "deeply concerned" by the company's decision to partner with Jim Beam, a unit of Fortune Brands Inc.
A spokeswoman for Portsmouth, New Hampshire-based Pax World, declined to say who the other parties were, but said they included investors and mutual funds that wanted to be kept abreast of a dialogue with Starbucks.
In a statement, Starbucks said it was disappointed by Pax World's decision to divest its 375,000 shares, and noted its work to educate parents and children about the danger of underage drinking.
Pax World said Starbucks should be commended for its record on the environment, efforts to promote fair trade and charitable giving, but the spokeswoman said the Jim Beam deal was not in line with its mission statement over the years.
The stake that Pax World sold is a fraction of Starbucks' market capitalization of about $20.6 billion. Pax World, which has about $1.5 billion in assets under management, had held the stake for eight years, the spokeswoman said.