The Challenges of Marketing Fair Trade - Wynne, Sandy

changes in trade rules and corporate behavior. Instead, it has put the financial security of
its own organization and, by default, the work of the U.S. Fair Trade movement, at risk,
should either or both of the two referenced companies stop carrying Fair Trade products.
TFUSA’s business strategy of increasing consumer demand for certified products
by licensing MNCs has positive and negative consequences. The increase in sales is
impressive. On the other hand, this strategy of mainstreaming Fair Trade Certified
products in the U.S. has not required MNCs to make additional commitments to Fair
Trade principles or to increase future purchases. TFUSA states “We celebrate the
engagement of large, mainstream businesses in Fair Trade as a sign that we are
accomplishing our mission” (Raynolds et al., 2007, p.75). Time will determine if this
mainstreaming strategy results in changing corporate behavior.
Given the imbalances of the marketplace, MNCs have little motivation to change
without pressure. One has only to look at the global coffee market with its hour glass
shape to see the need for change in trade structures and corporate policies (Holt-Gimenez
et al., 2007). There are millions of coffee farmers at the bottom and millions of coffee
drinkers at the top with a handful of MNCs controlling both ends. Ultimately Fair Trade
must be about helping poor producers “grow not just their market, but their market
power, not just their business, but their controlling share within the business” (Holt-
Gimenez et al.,2007). Giving more power to producers, rather than just increasing sales,
has not been a priority for TFUSA or its MNC licensees.
The current challenges for retailers in marketing Fair Trade products in the U.S.
suggest that TFUSA and the U.S. Fair Trade movement may be approaching a
crossroads, where the two groups may end up heading down different roads. TFUSA
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