Hot Beverage Business Piping Hot In The Run Up To Fairtrade Fortnight

With the approach of Fairtrade Fortnight 2007 (February 26 – March 11), a new trend continues to brew as more and more businesses and catering establishments are choosing Fairtrade hot drinks.

This year has started off with good news for coffee farmers in Ethiopia, Honduras, Peru and Indonesia in the run up to Fairtrade Fortnight. Farming groups in these countries will benefit from the decision by café chain Pret A Manger to switch all the coffee it sells to Fairtrade certified.

Simon Hargraves, Commercial Director of Pret A Manger, explained his company’s decision: "To Pret, Fairtrade is the obvious and right thing to do. Pret has been offering Fairtrade coffee as its filter coffee since 2002 and has now decided to roll this out to cover all of the coffee we sell. Whilst our coffee has always been ethically sourced, official certification allows us to communicate this clearly to our customers." The coffee is also certified organic and environmentally friendly.

Meanwhile other developments echo a growing success for Fairtrade within the hot drinks sector. The conversion of all Marks & Spencer’s tea and coffee to Fairtrade last year has led to sales growth of 6% against market growth of 1.5%, the company has revealed.

Smaller companies, too, have noticed a difference. Mike Steel, Managing Director of hot drinks company Fairtrade Vending, has reported a doubling of turnover in the past twelve months. “There has been an increase in demand within the local authority sector and in companies generally,” he said.

And at the top end of the market, Harvey Nichols is stocking its first Fairtrade hot beverages –Taylors of Harrogate’s Fairtrade Colombian High Andes Coffee, Fairtrade Guatemalan Cloud Forests coffee and Fairtrade Breakfast Tea. Emilie Taylor, Assistant Grocery Buyer at Harvey Nichols, said: "We are trying to introduce more Fairtrade products The Harvey Nichols’ customers selection is led by quality and origin. We always endeavour to buy only the highest quality premium products from smaller plantations with sustainability programmes. Over the past few years market trends have shown a definite increase in our customers' awareness and knowledge of these important issues."

AMT Coffee, the first national coffee chain to switch to 100% coffee in all of its outlets is reporting increased awareness and support for Fairtrade among its customers. “Comments we get, via our Customer Comment Cards in answer to the question ‘Why do you buy at AMT?’ include, ‘It’s Fairtrade without even asking or paying more.’ And ‘Because it’s Fairtrade and it tastes great’,” said a representative. The chain has also switched its flapjacks, Eccles cakes and brownies to Fairtrade versions.

Many commercial announcements are expected from large and small companies over Fairtrade Fortnight as they respond to consumer demand and push to ensure farmers in developing countries are guaranteed a fair deal for the crops they grow. These announcements are also timely for the theme of this year’s promotional drive - Change Today. Choose Fairtrade.

Latest statistics from the Fairtrade Foundation show that there are now twenty different types of Fairtrade tea available – including Earl Grey, Darjeeling, English Breakfast, Green Tea, Lemon Ginger, Decaffeinated, and Vanilla Chai – from more than 40 different companies. There are five different types of coffee – instant, Decaffeinated, Roast & Ground, Espressos and Whole Coffee beans - from more than 70 different companies.

Martin Hill, Head of Commercial Relations at the Fairtrade Foundation, said: “Businesses often tell us that their sales increase when they switch to Fairtrade, which is excellent news for the farmers in developing countries and speaks volumes about the choices that UK consumers are making. The range of products now available carrying the FAIRTRADE Mark helps us to help businesses to find precisely the products they need.”

Also positive is Jason Danciger of the Slug and Lettuce pub chain. “We have had a significant amount of positive feedback from our consumers since we introduced Fairtrade coffee,” he said. “This has given us invaluable brand loyalty and an opportunity to further share our passion about food and drink with our consumers. Coffee sales have increased and the quality has remained consistent. Introducing Fairtrade coffee was the right choice both morally and commercially.”

Cafédirect, the leading Fairtrade coffee company, has two products in the top 20 best selling lines in the UK coffee market – its 100g Medium Roast Standard and its Decaffeinated Organic 100g. Its Fairtrade Freeze Dried Coffee is growing at more than 15% year on year. Sylvie Barr, Head of Marketing at Cafédirect, says: “We are injecting real excitement into the Fairtrade Freeze Dried Coffee sector. We are offering a completely new taste experience in Freeze Dried Coffee. We’re ticking all the right boxes in order to fulfil consumer demand and drive category growth.” During Fairtrade Fortnight the company, part owned by its farmers, will have a new advertising campaign, a roadshow, a retail sampling programme and a direct mail campaign.

The Percol coffee company has seen a 30% rise in sales of its Fairtrade Instant Espresso, which it compares to an increase in sales of 1.3% for the instant coffee market as a whole. Percol also won two Gold Awards at the Great Taste Awards 2006 for its Fairtrade Guatemala and Fairtrade Rainforest Mexico products.

The estimated retail value of sales of Fairtrade products in the UK in 2005 was £195m, a 40% increase on 2004. The Fairtrade Foundation expects sales of products with the FAIRTRADE Mark to at least maintain the growth recent years. A recent survey by Mintel said British shoppers will spend £2bn on Fairtrade, organic and locally sourced products during 2006, an increase of 62% since 2002. It also found Fairtrade to be the fastest growing of these sectors with a 265% growth since 2002.

The guaranteed fair price which comes with Fairtrade means coffee farmers selling on Fairtrade terms do not have to face the huge dips in commodity prices which have left them struggling to maintain their farms. They have used the additional premium which comes with Fairtrade to improve the healthcare, education and other important benefits for themselves and their families and to improve and strength their businesses.

Notes to Editors
1. The Fairtrade Foundation is an independent certification body that awards the FAIRTRADE Mark to products which meet international Fairtrade standards set by FLO (Fairtrade Labelling Organisations International) the umbrella organisation that unites national initiatives across Europe, Japan, USA, Canada, Mexico, Australia and New Zealand. This independent consumer label appears on products as a guarantee that disadvantaged producers are getting a better deal. Today, more than five million people - farmers, workers and their families - across 58 developing countries benefit from the international Fairtrade system.

2. The full range of Fairtrade products is: coffee, tea, chocolate, cocoa, sugar, bananas, apples, pears, grapes, plums, lemons, oranges, satsumas, clementines, lychees, avocados, pineapples, mangoes, fruit juices, smoothies, quinoa, peppers, green beans, coconuts, dried fruit, rooibos tea, herbal teas, green tea, ice-cream, cakes, biscuits, honey, muesli, cereal bars, jams, chutney, sauces, herbs, spices, nuts, nut oil, wine, beer, rum, flowers, sports balls, rice, yoghurt, babyfood, sugar body scrub, cotton wool and cotton products.

3. A recent Institute of Grocery Distribution report says UK shoppers are now spending £13bn a year on premium food and groceries - products which are organic, Fairtrade, premium brands, retailers’ premium own label, local and regional foods, and specialist fine foods. It predicts the value of the market will rise to £19.2 bn by 2011. The report suggests that the premium sector now makes up around 10 % of the food and grocery market, and will rise to 13.5% by 2011, with the strongest growth in organic, Fairtrade, retailers’ private label ranges, and premium brands.

4. Fairtrade Fortnight is promoted by networks around the country including development agencies ActionAid, CAFOD, Christian Aid, Oxfam, SCIAF, Tearfund, Traidcraft Exchange and the World Development Movement, as well as a wide range of other organisations: Banana Link, the Methodist Relief and Development Fund, the Mothers’ Union, The National Federation of Women’s Institutes, the Nicaragua Solidarity Campaign, People & Planet, Shared Interest Foundation, Soroptimist GBI, the Public and Commercial Services Union, UNISON, and the United Reformed Church and many individual churches.

For further information, phone 020 7440 7686/7695 or mobile 07770 957 451 or email eileen.maybin@fairtrade.org.uk or martine.julseth@fairtrade.org.uk.

The Fairtrade Foundation,
Room 204, 16 Baldwin’s Gardens,
London EC1N 7RJ.