Caribou Coffee grinds away at rumor of ties to terrorists

BY JOHN SCHMELTZER
CHICAGO TRIBUNE

CHICAGO -- As chairman and Chief Executive Officer of Minneapolis-based Caribou Coffee, Michael Coles is tackling a difficult challenge, trying to defeat a persistent 2-year-old Internet rumor that the chain of coffee shops is linked to Islamic terrorists.

"Things on the Internet don't go away," said Coles, who explained that the rumor hurts sales at stores in communities with Jewish populations and could threaten Caribou's expansion plans.

Not dealing effectively with rumors can alienate customers and pinch a company's bottom line.

"Once people are convinced of something, it might be very difficult to convince them otherwise," said Jean Pierre Dube, a marketing professor at the University of Chicago Graduate School of Business.

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