UK Fairtrade sales soar to £500m in 2007
81 per cent increase in sales doubles the trend of the past decade
LONDON, 6th March 2008 - A number of high profile guests from private equity firms, corporations and high net worth individuals learnt about a strategy review which has identified growth potential for the Fairtrade Foundation at a drinks reception last night. The event was organised by Impetus, a leader in venture philanthropy and hosted by OC&C Strategy Consultants.
The popularity of Fairtrade products in the UK surged during the past year, according research from OC&C Strategy Consultants, sparking predictions that the market is will be as big as it is now for organic products within the next five years. As awareness levels of the FAIRTRADE Mark among the UK population also reached their highest levels last year at 57% (TNS Omnimas), British shoppers are demonstrating a growing appetite for Fairtrade products like tea, coffee and bananas. The top concerns shaping consumer purchasing decisions are helping farmers in developing countries while positively impacting on third world poverty and human rights.
The rise in popularity of Fairtrade products has been helped by supermarkets making the switch to Fairtrade. Decisions by the major supermarkets like Sainsbury and Waitrose to stock only Fairtrade bananas and Marks & Spencer to stock only Fairtrade tea and coffee have been notable successes. The Co-op also joined this movement recently by stocking only Fairtrade beverages. Most recently, Tate & Lyle has announced plans to move its entire retails cane sugars range to Fairtrade.
As the Fairtrade movement has been gaining momentum in the UK, the need in the developing world to address conventional trade failure has also been increasing. To help with its next phase of growth and help millions more farmers, the Fairtrade Foundation approached a venture philanthropy organisation Impetus for support. Impetus is providing Fairtrade with an integrated package including strategic funding, expertise and co-investment through the Charities Aid Foundation (£75,000 funding and a minimum of 20 days consultancy time).
Over the last nine months, Impetus has been working with Fairtrade in helping to shape its strategy in order that Fairtrade can maximise its social impact. As part of the strategy review work, OC&C Strategy Consultants (OC&C), a key Impetus pro bono partner, carried out an extensive study for the Foundation to identify further growth potential.
The work carried out by OC&C included a consumer survey; extensive interviews with the licensees; a market review to establish which commodity groups offered the biggest potential; and a review of Fairtrade’s market share. The research confirmed the strength of the brand and success of the model, as well as the scope to broaden the range of Fairtrade products and improve the service delivery to more commercially orientated customers, such as the large retailers.
The strategy has specified a series of actions, from working with a wider range of producers to continuing to galvanise public opinion with UK consumers and deepening the commitment of business partners. The next phase in the partnership between Impetus and the Fairtrade Foundation is to draw up an implementation plan to ensure the strategy becomes a reality.
Anita Balchandani, Associate Director at OC&C for Fairtrade comments: "The opportunities for Fairtrade to increase its penetration of staples such as coffee, tea, chocolate, bananas and cocoa are enormous. Our survey showed that consumers want to buy more Fairtrade products. They would also over time like to see a larger range of products such as fruit, vegetables and non-food items like clothing and flowers to be easily available through a wider range of outlets including cafés and restaurants"
Harriet Lamb, Executive Director of The Fairtrade Foundation, comments:
"We are delighted that awareness of Fairtrade is climbing so high. The research carried out by OC&C through Impetus is invaluable in identifying growth opportunities for disadvantaged producers. With the study suggesting we lift the level of our ambition and build on our market position, it has helped to strengthen our current strategy.”
Daniela Barone Soares, Chief Executive of Impetus adds: "Consumers are becoming increasingly concerned about conditions in the developing world. We very much look forward to working with Fairtrade in putting together an implementation plan so that they can increase the penetration of their products and thereby improve the living standards of farmers in developing countries and maximise social impact."
Victoria Anderson, Head of Grantmaking at CAF adds “CAF works with donors, both companies and individuals, on a global scale to add value to the not for profits that they support. We aim to maximise the social difference they can make which means really listening to the needs of the local communities. The issues that Fairtrade addresses are integral to that we work that we do, so being able to co-invest in this project makes absolute sense for us.”
ENDS
Notes for Editors:
Enquiries:
Impetus Trust Eela Devani +44 207 745 7204
Fairtrade Foundation Eileen Maybin +44 207 440 7686
OC&C Strategy Rachel Griffiths/ + 44 207 413 4456
Natasha Vickers +44 207 413 3728
Equus Vimala Camadoo +44 207 223 1100
You can find additional information about OC&C Strategy Consultants at www.occstrategy.co.uk
Venture Philanthropy (VP): Strategic funding and expertise for charities based on venture capital principles for social rather than financial return.