Blockbusting Brands: Fairtrade
This month we’re celebrating the rise of the Fairtrade ‘brand’ and the impact it has had on the retail landscape in the UK.
The Fairtrade Mark has become a symbol for ethical shopping and appears on 3,000 products on sale in the UK. The independent consumer label certifies that a fair price has been paid to the producer organisation at the start of the supply chain. And the UK should be proud of its support for the brand – stimulating the most dynamic, wide-reaching Fairtrade market in the world through consumer support and grass roots activism.
Fair price, fantastic sales
At the beginning of March, to coincide with Fairtrade Fortnight, figures were released demonstrating the increasing impact that the Fairtrade Mark has had on the UK food and retail industry. Sales of Fairtrade goods leapt from £273m in 2006 to £493m in 2007 – a massive 81% increase, following 40% year-on-year increases since 2002. The sale of Fairtrade bananas alone reach £150m, with coffee and tea both rising by 24% to reach £117m and £30m respectively. All this has been achieved despite an economy that has seen consumer caution and poor sales for many reputable organisations.
Certified products range from fruit and flowers to wine and cotton clothing and the Fairtrade Mark is gaining increasing importance for suppliers and retailers, with consumer awareness of the symbol reaching 57%.
Sweet new deal for producers
This may be why Tate & Lyle has just announced a landmark decision to switch their entire retail cane sugar to Fairtrade within two years – becoming the largest UK company to carry the distinctive mark.
Fairtrade Foundation executive director Harriet Lamb recently told the BBC about the move, stating: "In terms of size and scale, this is the biggest ever Fairtrade switch by a UK company and it's tremendous this iconic UK brand is backing Fairtrade."
The company, which is this year celebrating the 125 year history of the world’s oldest brand – Lyle’s Golden Syrup – has a long history of philanthropy from its founders. The switch will occur for all packs of sugar sold in retail outlets and the company has longer-term ambitions to convert industrial supplies to Fairtrade goods.
Building the Foundation
The Fairtrade Foundation was established in 1992 as an independent non-profit organisation that licenses the use of the Fairtrade Mark on products in the UK. A number of charities, including Oxfam and the World Development Movement set up the organisation and have since been joined by other members.
It is a member of Fairtrade Labelling Organisations International (FLO), which brings together over 20 national initiatives in Europe, N America, Japan, Mexico & Australasia with the producer networks in Asia, Africa, Latin America and the Caribbean.
Since 2001, Harriet Lamb has steered the organisation to extraordinary success – from £30m pa in the sale of Fairtrade products to the whopping £493m in 2007, by securing prominence in retailers’ shelf space and consumers’ organic cotton shopping bags.
The Fairtrade future
Last month The Adam Smith Institute produced a report implying that Fairtrade ‘does more harm than good’, a claim that the organisation strongly denies.
“The fantastic increase in sales of Fairtrade goods in 2007 shows the public’s huge and growing appetite for Fairtrade,” says Lamb.
“After years of chipping away, Fairtrade supporters are finally beginning to make some significant impression on the way companies trade. Increasing numbers of people in the UK are buying Fairtrade goods as a practical action everyone can take to help tackle poverty in the developing world.”
Not many brands can claim that.
The challenge for the future is to increase momentum and gain critical mass – from consumer support to supplier commitment - reducing the number of workers around the world who are trapped in ‘trade poverty’ by securing fair trade at a fair price.
Jonas Consulting
Otterburn House
8-12 Bromley Road
Beckenham
Kent
BR3 5JE
020 8650 9210
0845 873 6176
0845 299 2459
food@jonas.co.uk
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