Cost of coffee.indd - RISC

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appendix 3: sustainable development Kraft Foods launches ‘Kenco Sustainable Development’ coffee in retail market 30 August 2005, Cheltenham Kraft Foods has today announced the launch to consumers of a new soluble coffee, Kenco Sustainable Development, made entirely from beans from certified sustainable farming sources. Kenco Sustainable Development will be available in major UK retailers this autumn. The new coffee is independently certified as being grown under sustainable conditions by the Rainforest Alliance, an independent, not-for-profit organisation that is an international leader in sustainable farming. Rainforest Alliance standards help coffee farmers improve their farming practices – and so their incomes and quality of life – and protect the environment. On farms certified by the Rainforest Alliance, forests and wildlife are preserved, and farm workers are treated with respect and have access to clean water, medical care and education for them and their families. By meeting standards of sustainability set by the Rainforest Alliance and monitored by local not-for-profit organisations, farmers can command a higher price in the market. Kraft Foods pays a premium based on the market price for certified coffee based on availability, quality and an appreciation of the beneficial way the coffee is grown. Currently the premium paid by Kraft Foods is in the region of 8-12 US cents per pound. Through its partnership with the Rainforest Alliance, Kraft is committed to supporting sustainability in the coffee market in three important ways: by funding technical assistance and training to improve living and working conditions on coffee farms; by purchasing significant and increasing quantities of certified sustainable coffee to blend into its mainstream European brands; and by stimulating consumer demand through the introduction of 100% certified products under existing trademarks in key markets within Western Europe and the US. Thibaud de Saint-Quentin, vice president and area director, Kraft Foods UK & Ireland, said that the new launch marks an exciting step in Kraft’s commitment to grow a better future for coffee: “Kenco Sustainable Development is our first brand to be made with 100% Rainforest Alliance Certified coffee beans and brings high quality, sustainably produced coffee into the mainstream marketplace. “Kenco Sustainable Development has all the great coffee taste that our consumers expect from Kenco, combined with the benefits to farmers and their workers that spring from the Rainforest Alliance programme.” Tensie Whelan executive director of the Rainforest Alliance, said of the initiative, “Kraft’s commitment to purchasing sustainably grown coffee is making a positive impact on coffee growers throughout Latin America, in countries like Brazil, Colombia and El Salvador. The launch of Kenco Sustainable Development is a significant step in bringing sustainable choices within the reach of mainstream consumers.” In 2004, the first year of its partnership with the Rainforest Alliance, Kraft bought 2,400 tonnes of certified coffee. Most of this was blended directly into Kraft’s mainstream brands such as Maxwell House, Kenco and Carte Noire, in the UK and overseas. In 2005, this more than doubled to 6,400 tonnes, and has benefited more than 100,000 people in coffee growing areas and preserved more than 50,000 acres of forest in Central and South America. These certified coffees will continue to be blended into Kraft’s popular coffee brands in modest levels and also will be used for specialist 100% sustainable brands, such as Kenco Sustainable Development. source: www.kraftfoods.co.uk 52
appendix 4: co-op’s fairtrade coffee Buy our coffee because it is the best quality, not because we are poor farmers. Blanca Rosa Molina, Cecocafen, Nicaragua fairtrade coffee market The market for Fairtrade coffee may still be small in comparison to the mainstream, but it’s a growing one. The retail value of Fairtrade coffee has grown by nearly 70 per cent over four years: from £13.7 million in 1998 to £23.1 million in 2002 and the trend continues. Fairtrade in 2002 accounted for 14 per cent of the total UK ground coffee market and two per cent of instant. This is the national picture. The picture at the Co-op, which has long supported Fairtrade, is different. In 2002, 36 per cent of all ground and four per cent of all instant coffee sold in our stores, whether Co-op or other brand, was Fairtrade. Co-op shoppers now buy more than double the national average of Fairtrade coffee. In other words, they are twice as likely to choose Fairtrade. This, with the pioneering heritage of the Co-op and our commitment to co-operative values and principles as a responsible retailer, gives us a tremendous advantage in taking the next big step in support of Fairtrade across the range. switch to 100 per cent fairtrade Up to now the Co-op has sold four product categories of coffee, whether instant or ground: 1 Co-op brand, non-Fairtrade 2 Co-op brand, Fairtrade 3 Other Fairtrade brands (eg Cafédirect, Percol) 4 Conventional non-Fairtrade (roaster brands) From November 2003, we will be switching Co-op brand coffee in all our stores to Fairtrade. We will still offer conventional brands and continue to support other Fairtrade brands such as Cafédirect and Percol, which have helped to build the success of Fairtrade coffee in the UK. predicted impact Assuming no change to overall sales, this move will triple the total value of Fairtrade coffee sold in Co-op stores to almost £6.5 million. Sales of Fairtrade instant coffee will quadruple and almost 90 per cent of all the ground we sell will be Fairtrade. Effectively, the Co-op initiative offers a greater Fairtrade choice to coffee drinkers and brings Fairtrade firmly into the mainstream, without sacrificing taste and quality for the consumer. At the national level, the Co-op initiative will increase all Fairtrade coffee sold in the UK by 15 per cent overnight, again assuming no change to overall sales. These figures are conservative estimates: they assume no increase or decrease in consumption of Co-op brand coffee as a result of the conversion to Fairtrade. But we believe the initiative will encourage drinkers of conventional brands to switch to Fairtrade, further increasing Fairtrade’s share of the overall coffee category. the chocolate experience This optimism is based on our experience with chocolate, in which consumers have embraced the Fairtrade alternative. In November 2002, the Co-op switched all its own-brand block chocolate to Fairtrade, sourced through a single cocoa grower co-operative in Ghana called Kuapa Kokoo. The products are different, but the initiative was a similar one, in that we converted an entire Co-op brand line to Fairtrade. 53
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credits devised, written and design
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“ 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 49 and 50: actionpage: press release Statement
Page 51 and 52: appendix 1: the coffee crisis The I
Page 53 and 54: demand sides in which the coffee cr
Page 55: demonstrating that traditional shad
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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