Cost of coffee.indd - RISC

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actionpage: fair marketing s Fill in this questionnaire to help you analyse the strategies used in the marketing and/or promotion of Fair trade products. Some questions may not be relevant to your material. You may need to use another sheet. ◆ Name of organisation/brand ◆ Who are the audiences (eg young people, high income) ◆ What slogans or headlines are used? s Mount the material on flip chart paper and: • highlight key words in the text (eg community, environment) • highlight (in another colour) key facts or information in text • highlight (in another colour) opinions expressed in text. s Write down points raised by the text, eg: • relevant issues or facts that the material ignores • facts or information that you would question • opinions that you disagree with. ◆ What images (graphics, photos etc) are used – who is shown, what are they doing, what is the impact on you? ◆ How has the designer used colour, images, layout of text to make an impact? ◆ How effective is the material in: • gaining your interest – why? • providing information – why? • changing your attitudes – why? ◆ What action does this organisation want you to take? 44
actionpage: press release Statement by Cafédirect and Costa – 26 February 2002 cafedirect welcomes starbucks to ethical business world Following the announcement by Starbucks today (Tuesday 26 February 2002) to provide Fairtrade coffee in its UK stores, Cafédirect – the pioneer of the Fairtrade movement – believes the move to be “a positive step forward for ethical business”. Penny Newman, Cafédirect’s managing director, says: “This will hopefully be good news for the Starbuck coffee growers who, until now, have not had a firm guarantee of a fair deal. “We hope this is the start of a wave of initiatives, particularly in the UK, by other major multinational coffee companies, who dominate the coffee market, in giving something significant back to farming communities in developing countries. It is a question of magnitude and scale. While these companies may conduct some cause related marketing, they rarely commit to real action which is relative to their earnings and their market size and while this announcement is a starting point, it is not a significant offering relative to the resources and earnings enjoyed by Starbucks.” Newman cautioned consumers to be vigilant against coffee companies, which may pose as new recruits to the Fairtrade movement, with the sole intention of piggy-backing on its burgeoning success and appeal. “Some companies may be paying lip-service by offering Fairtrade prices but have little or no intention of providing continuous, long-term sustainable support and development to poverty-stricken coffee growing communities across the globe,” says Newman. To put things into context, Starbucks announced at the end of last year that it is committed to buy more than 454 metric tonnes of Fairtrade coffee for all its US-owned stores for the next 12 to18 months. If all this coffee was Arabica, this would represent 1.5% at most of their annual purchases of green coffee (Source: Starbucks Annual Report Fiscal 2000). However, compare this to Cafédirect, the 100% Fairtrade organisation, where purchases of Fairtrade coffee for the year ending 31 March 2001 amounted to 300% more (ie 1,374 metric tonnes). Furthermore, Cafédirect operates a ‘Gold Standard’ model, whereby growers always receive ‘above market’ prices for their produce and, equally importantly, continuous support to develop and build businesses and communities in developing countries. “It’s a stark reality but some use Fairtrade as an opportunistic, short-term marketing stunt to sell more coffee in the light of increasing pressure. The fact is that it begs a far wider question of ethical practices and corporate responsibility and, to date, few companies have taken measurable actions, which would deeply affect their corporate policy or bottom line profits. Nevertheless, we hope that Starbucks will prove to honour the principals of Fairtrade and to commit to their coffee growers by offering a sustainable and fair deal over the long-term,” she continues. Until now, Costa was the only UK coffee chain to serve Fairtrade coffees and teas (supplied by Cafédirect). Costa’s commitment to support small-scale producers was demonstrated two years ago with the launch of Fairtrade products in the 272 Costa stores in the UK. By working in partnership with Cafédirect, Costa offers its consumers a Fairtrade coffee option, which can be used for any of its espresso-based coffees (lattes, cappuccinos, etc). Teadirect is also the exclusive choice for consumers who order tea at Costa. Since November 2000, Costa has served more than a total of 4.5 million cups of Fairtrade espresso-based coffees and teas. This is equal to an average of 75,000 cups of Cafédirect Fairtrade drinks every single week. As a response of the increasing interest in Fairtrade, Cafédirect is calling for the leading universities and key business organisations to come up with a more precise definition of the term ‘corporate responsibility’ so that less accountable companies will be weeded out. As one of the best known and most successful ethical companies and in response to the growing demand, Cafédirect plans to establish stronger links with business schools and universities to promote the Fairtrade business model and offer the next generation of business leaders the 45
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Page 4 and 5: “ A company that adopts and imple
Page 6 and 7: the instructions What you need - ge
Page 8 and 9: glossary bluewash The ploy used by
Page 10 and 11: coffee file Coffee: adaptation of A
Page 12 and 13: 8 the story of coffee D the coffee
Page 14 and 15: wet method D requires the use of re
Page 16 and 17: 200 Robusta coffee market 1986-2005
Page 18 and 19: drinker roasted, ground, instant CO
Page 20 and 21: 16 key ideas ◆ ◆ ◆ ◆ ◆
Page 22 and 23: Profit margins are high - Nestlé h
Page 24 and 25: key ideas ◆ ◆ ◆ ◆ In respon
Page 26 and 27: • because of past price fluctuati
Page 28 and 29: aim a fair price? ◆ To analyse th
Page 30 and 31: ◆ Although in The coffee cycle Ne
Page 32 and 33: s Analyse the photos used and the o
Page 34 and 35: ◆ ◆ Real costs A supply and dem
Page 36 and 37: aim how fair’s fair? ◆ To explo
Page 38 and 39: actionpage: how fair’s fair? s Re
Page 40 and 41: 1990 european fair trade associatio
Page 42 and 43: Actionpage: Pros & cons 38 PROS Gua
Page 44 and 45: aim fair marketing ◆ To analyse t
Page 46: Actionpage: Logo ® 42
Page 51 and 52: appendix 1: the coffee crisis The I
Page 53 and 54: demand sides in which the coffee cr
Page 55 and 56: demonstrating that traditional shad
Page 57 and 58: appendix 4: co-op’s fairtrade cof
Page 59 and 60: appendix 5: mugged introduction The
Page 61 and 62: women earn less, work longer, have
Page 63 and 64: appendix 6: rescue plan A Coffee Re
Page 65 and 66: Consumer governments 1 Provide poli
Page 67 and 68: joining forces we believe that we w
Page 69 and 70: of shortfalls that occur (see Nestl
Page 71 and 72: appendix 8: robbing coffee’s crad
Page 73 and 74: appendix 9: behind the mask the rea
Page 75 and 76: • change the law to enable people
Page 77 and 78: Fair Trade in Action - KS 3-4 Fairt
Page 79 and 80: ackground reading* Behind the mask:
Page 81 and 82: useful contacts Anti-Slavery Intern
Page 83 and 84: International Coffee Organisation w
Page 85 and 86: isc Reading International Solidarit

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