Fairtrade and The FAIRTRADE Mark: Demand Generation and Brand Development Getting Involved… Mark Varney Commercial Manager The Fairtrade Foundation

UK Sales of Fairtrade Products

Extensive Availability of Products

Existing Fairtrade standards Fairtrade Standards are available for: Bananas Cane Sugar Cocoa Coffee Cut Flowers Dried Fruit Fresh Fruit Herbs and Spices Honey Juices Nuts & Oil seeds Quinoa Rice Seed Cotton Sports Balls Tea Wine Grapes As well as single ingredient products, many of these appear in composite products such as chocolate bars, confectionary, biscuits and cakes, snack bars, spreads, jams and chutneys

Overall awareness- The FAIRTRADE Mark

High recognition of FAIRTRADE Mark versus other schemes Seen a Lot Seen a Bit Seen Once or Twice Never Seen Respondent Brand Recognition 1 % of Respondents (n=503) Source: OC&C Online Consumer Survey May 2007, OC&C analysis 1.“How familiar are you with the following organisations (and their logos)?”

Why don’t consumers buy more Fairtrade products Availability/visibility in store29%34% Habit23%19% Price19%18% Brand loyalty9%11% Awareness of products8%11% Quality4%3% Don’t support / not convinced2% Not the main shopper14%13%

The Consumer challenge KNOWLEDGE NEEDS PURCHASING INVOLVEMENT NEW - Aware, Interested NON-Buyers OCCASIONAL Buyers – Rationally engaged REGULAR / FREQUENT Buyers engaged devotees ENTRY-LEVEL Awareness, some familiarity but no emotional buy-in OCCASIONAL Buyers – Emotionally engaged Basic rational Information: products, producer benefits Reinforcement of producer benefits Detailed understanding Current Size of Segment Current Status Short-term Goal Longer-term Goal Source: Diagnostics Social & Market Research Ltd, August 2006

GROWING AWARENESS, ENGAGEMENT AND DEMAND

Campaigners Word of Mouth key for Fairtrade supporters “Multiplier” Campaigners 300+ Fairtrade Towns, cities and boroughs 60 Fairtrade Universities Over Faith Groups

Campaigner Events

Fairtrade Schools Officially launched Autumn 2007 Target: 2,000 primary and 500 secondary by March 2009

Images copyright Simon Rawles

On-line

Developing presence on Facebook, MySpace Extensive peer-to-peer communication via Fairtrade YahooGroups

On-line- new Fairtrade Foundation website

Fairtrade Fortnight

What is Fairtrade Fortnight? Our biggest annual promotional campaign (and one of the biggest in the UK) 2008 will be 13 th year Purpose: to unite all stakeholders: Grassroots supporters to licensees, media partners and NGO members A simultaneous promotion to maximise impact, awareness and sales of Fairtrade.

Fairtrade Fortnight- 2008

Retailer Activity ‘07: Product display

Retailer Activity ‘07: Indoor displays

Retailer Activity ‘07: Window/Car park display

Retailer Activity ‘07: Shelf POS

Sales Impact

Role of The FAIRTRADE Mark in brand and product development

Brand development The producer, farmer and worker and the Fairtrade standards are critical: Fair price, community development; environmental sustainability Democracy, engagement, involvement From a brand and new product development point of view, you can approach The FAIRTRADE Mark like an “ingredient brand”

Producer ownership / mission focussed brands

Fairtrade & FAIRTRADE Mark is a core contributor to reason to believe

FAIRTRADE Mark is a contributor to equity and customer communication

FAIRTRADE Mark and provenance

Private Label Brand Development- Fairtrade as core reason to believe

Private Label Brand Development- Fairtrade as part of other sub-brands

Private Label Brand Development- Fairtrade as part of core category

Other Branded Product Development

Launching FAIRTRADE Mark Products on the UK Market- the “nuts and bolts”

Composite Products All ingredients that can be Fairtrade, must be Fairtrade. In order to comply, the product must consist of either: - At least 20% of ONE Fairtrade ingredient OR - 50% of combined Fairtrade ingredients

The FAIRTRADE Mark An independent consumer label which appears on products as a guarantee. The FAIRTRADE Mark is a registered trademark and a certification mark – not a brand. Each piece of promotional and product packaging material needs to be signed off prior to printing ®

Licensee Responsibilities Every stage of a supply chain processing Fairtrade certified products must submit quarterly ‘flow of goods’ reports to FLO-Cert. Every licensee must submit quarterly reports on the number of finished products that come into the market License fee of 1.8 % of net wholesale price is charged for permission to use the FAIRTRADE Mark, this funds both the work of the Foundation and FLO Reports are required no later than 45 days following the end of the calendar quarter send to :

So you are considering The FAIRTRADE Mark as part of your Brand / Innovation / Product Development Plans?...

First- contact The Fairtrade Foundation

What role could Fairtrade have in your business? How could The FAIRTRADE Mark add value to your brand or business? What messages, emotions, etc. are you trying to communicate to your customers? What role does sourcing have in bringing your brand to life?

What role could Fairtrade have in your business? How will this initiative grow the Fairtrade market for producers? New product types? New consumers? New business channels? New useage or purchase occasions? How can existing Fairtrade producers contribute and benefit? How will this initiative enhance the lives of your producers? Fairtrade “guarantees a better deal”…

Consumer Trust is critical 1.“Which of the following do you think are the most effective and achievable ways for you to improve the lives of poor people around the world? (Select up to 3 items)” 2.“Which of the following brands do you MOST trust to deliver against any ethical promise? (Choose maximum of five)” Brands Most Trusted to Deliver on Ethical Promise 2 % of Respondents (n=503)

Key Developments and The Future International Project Management- capacity build Fairtrade Foundation capacity build Strategic Review roll out

Thank you