Fair Trade Certified Products

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Fair Trade Certified Products

• Aligning the interests of farmers, consumers,
  businesses, and the planet
• Charlotte Opal
• New Products Manager
• TransFair USA
• November 9, 2004

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Agenda

• Fair Trade How it works

• The Fair Trade Market

• Fair Trade Case Studies

• Aligning interests

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A Global Movement

• Fair Trade certification began in Holland in 1988
• Now in 19 consumer and 60 producer countries
• Standards for both plantations and cooperatives
  of small family farmers
• Fairtrade Labeling Organization sets standards
  and inspects farms. FLO is the worlds largest
  and most rigorous
• social certification system
• Benefits over 1.1 million farmers and their
  families

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How does it work?
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Agenda

• Fair Trade How it works

• The Fair Trade Market

• Fair Trade Case Studies

• Aligning interests

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Cone Corporate Citizenship Study

• The 1998 study identified about 20 of consumers
  (38 million) who said they had purchased goods
  produced in a socially responsible manner
• In 2001, 89 of Americans said that after the
  impact of Enron and WorldCom, it is more
  important than ever for companies to be socially
  responsible
• The number of respondents who said a companys
  commitment to social values was important when
  deciding who to do business with went from 58 in
  March 2001 to 84 in July 2002

Source Cone Corporate Citizenship Studies
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Target Consumers Evolution
People who care about their food and,
increasingly, about the impact of their
purchasing decisions
Mainstream -Soccer moms -Middle America -Farming
faith communities

• Specialty/Gourmet
• Foodies
• Students
• Local Foods

LOHAS / Natural Foods -Natural/organics
consumers -Concerned about health of people,
community and planet -Affiliated with
environmental, faith, human rights, social
justice groups
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Mainstream Media Coverage
500 articles, 82 million media impressions last
year Switching to Fair Trade puts money in
farmers pockets. Boston Globe Fair Trade is
taking off in the U.S. Time Magazine By
expanding its reach to the produce section, Fair
Trade is now trying to reach the American
supermarket shopper. New York Times
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Look for the label!
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Agenda

• Fair Trade How it works

• The Fair Trade Market

• Fair Trade Case Studies

• Aligning interests

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Wild Oats

• First national retailer to convert to 100 Fair
  Trade Certified private label coffee
• Price increased 10 sales increased 20
• Excellent staff, consumer, media, and industry
  response
• In Jan 04, became first US retailer to launch
  FTC bananas. Price increase of up to 10 sales
  increased 20
• Broadening FTC category to include pineapples,
  tea, chocolate, hot cocoa

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Day Chocolate Company

• 1/3 owned by Kuapa Kokoo (Kumasi, Ghana)
• Entered US market in 2002

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Fair Trade in the Mainstream

• Starbucks
• Dunkin Donuts
• Procter Gamble (Millstone Coffee)
• 50 market share of FT bananas in Switzerland

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Agenda

• Fair Trade How it works

• The Fair Trade Market

• Fair Trade Case Studies

• Aligning interests

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Fair Trade A Win-win-win
For producers, industry, and consumers

• Everyone profits when you choose Fair Trade.
• www.transfairusa.org