Cost of coffee.indd - RISC

enefit of its ten years’ experience within the ethical trading and business market.
“We consider it to be a serious top-down, ground-up corporate commitment to behave in a
considerate way which, while running a business for profit, sees further than finance,” argues
Newman. “It’s not about knee-jerk reactions to public outcries or bad media reviews merely to
save face. It’s about being morally accountable for one’s actions ensuring that every aspect of
one’s business – from suppliers and staff, to shareholders, customers and beyond – is of good
credit, repute or position.
“Companies which can devise methodologies and strategies to put the needs of communities,
staff, environment and customers on an equal footing with those of shareholders is what we’re
aiming for,” she continues. “These are still early days but things are progressing and Starbucks’
announcement, together with the news that Sainsbury has launched its own-label Fairtrade
coffee will, we hope, open the doors for a mass market business. This will ultimately mean the
message and the products reach further into the mainstream and attract new customers while
empowering and enhancing the lives of millions of growers currently in crisis around the world,”
she concludes.
notes to editors
◆ ‘Fairtrade Fortnight’ takes place… [in March]. The two-week campaign is to raise the
awareness of the benefits of Fairtrade and the availability and quality of Fairtrade products
in the UK. To celebrate the Fortnight, Costa will be sampling Cafédirect products at 100
Costa stores across the country so everyone who wants to try Fairtrade coffee can do so for
free! Vouchers for a free ‘upgrade’ will also be offered.
◆ Cafédirect has just launched a new premium instant coffee brand – 5065 – aimed at
younger consumers unfamiliar with Fairtrade.
◆ Publishing its annual results for the financial year ending September 2001, Cafédirect
reports an annual growth at 15.5%.
◆ Cafédirect has also risen to be the sixth largest coffee brand in the UK, beating non-
Fairtrade brands such as Lavazza, Taylor’s and Red Mountain.
prices paid by Cafédirect
Coffee (price as at 14/2/2002)
world market price Cafédirect pay % more paid by Cafédirect
(US cents/lb) (US cents/lb)
Arabica 43.75 126 188.00
Robusta 17.60 106 502.29
increasing awareness of fair trade
◆ In a survey carried out by MORI for the Fairtrade Foundation, 20% of the general public
recognised the Fairtrade mark in 2001, an increase from 12% in 2000 and 11% in 1999.
◆ 19% of the public correctly associate the Fairtrade Mark with a better deal for ‘Third World’
producers, compared with 16% in 2000 and 12% in 1999 – equivalent to an increase in
understanding of around two million people a year.
◆ The value of ethical consumer purchases in selected sectors (where there is an ethical
alternative) grew 18.2% between 1999-2000 from £4.8 billion to £5.7 billion. (source:
The Co-operative Bank’s Ethical Purchasing Index 2001)
◆ The Co-operative Bank’s 2001 research also demonstrated that it is possible for ethical
products in mainstream markets to breakthrough the 1% ‘green ceiling’ representing a tiny
niche role for many such initiatives. The food basket grew to 1.8% in 2000 and continued
growth at the same rate would give it a market share of more than 2%.
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