1. Confidential & Proprietary Copyright © 2007 The Nielsen Company The rise and rise of the ethical consumer Jonathan Banks 20 February 2008

2. Confidential & Proprietary Copyright © 2007 The Nielsen Company Agenda Consumer concerns Consumer behaviour Manufacturer and retailer responses: sales/growth

3. Confidential & Proprietary Copyright © 2007 The Nielsen Company What is your biggest/2 nd biggest concern in the next 6 months? Source: Nielsen Global online survey Nov 2007 GB results

4. Confidential & Proprietary Copyright © 2007 The Nielsen Company GDP per capita vs. Household spend on food Sources: UN; International Labour Organization; allcountries.org; National Bureau Of Statistics of the The Peoples Republic Of China; swivel.com; World Resources Institute; International Finance Corporation; & Namibia Community and Household Surveillance (CHS) Findings, Oct. 2006.

5. Confidential & Proprietary Copyright © 2007 The Nielsen Company 4 megatrends: Fairtrade can address them all Health/ Well-Being Ethical Convenience/ Practicality Indulgence/ Pleasure

6. Confidential & Proprietary Copyright © 2007 The Nielsen Company Organic (y2) and Fairtrade (y1) drive sustainability buzz Buzz share for key categories, as a % of sustainability discussion Source: Nielsen BuzzMetrics n = 241,227 messages about sustainability, between 7/01/2006 and 6/30/2007 CSAs = Community Supported Agriculture

7. Confidential & Proprietary Copyright © 2007 The Nielsen Company Blogosphere mentions... Source: Nielsen BuzzMetrics

8. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade topics of discussion Source: Nielsen BuzzMetrics 2007

9. Confidential & Proprietary Copyright © 2007 The Nielsen Company In competition with other offerings... Source: Nielsen Homescan Survey 2007

10. Confidential & Proprietary Copyright © 2007 The Nielsen Company Which of these types of products do you actively try to buy? Fairtrade... Source: Nielsen Global online survey – April 2007

11. Confidential & Proprietary Copyright © 2007 The Nielsen Company To what extent are the following statements true? I will not buy a consumer product from a country or company with a reputation for: % agree (excludes “somewhat agree”) Source: Nielsen Global Online Survey April 2007

12. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade sales: Denmark 0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 W4604 W5004 W0105 W0505 W0905 W1305 W1705 W2105 W2505 W2905 W3305 W3705 W4105 W4505 W4905 W0106 W0506 W0906 W1306 W1706 W2106 W2506 W2906 W3306 W3706 W4106 W4506 W4906 W0107 W0507 W0907 W1307 W1707 W2107 W2507 W2907 W3307 W3707 W4107 1.000 kr. Source: Nielsen scanning data 2005 2006 2007

13. Confidential & Proprietary Copyright © 2007 The Nielsen Company US Fair trade coffee imports

14. Confidential & Proprietary Copyright © 2007 The Nielsen Company Source: Nielsen ScanTrack £m Grocery Multiples For Fair Trade Includes Co-Op Fairtrade fortnights highlighted 1 st -13 th March 6 th -19 th March 26 th Feb-11 th March Weekly sales in Grocery Multiples 2005 2006 2007 £m £280m +47%

15. Confidential & Proprietary Copyright © 2007 The Nielsen Company 80. 'Fairtrade' food Continuing to expand our ranges of ‘Fairtrade’ food including converting all our jams, conserves, and bagged sugar to ‘Fairtrade’ and offering more ‘Fairtrade’ fruit, wine and other products. 81. 'Fairtrade' clothing Converting 20 million clothing garments including £5 plain t-shirts, women’s strappy vests and oxford shirts to ‘Fairtrade’ cotton – equal to 10% of all M&S cotton use. Source: Nielsen Media Research

16. Confidential & Proprietary Copyright © 2007 The Nielsen Company Source: Nielsen Media Research

17. Confidential & Proprietary Copyright © 2007 The Nielsen Company Source: Nielsen Media Research

18. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade lines stocked Source: Nielsen Homescan

19. Confidential & Proprietary Copyright © 2007 The Nielsen Company Share of Fairtrade Source: Nielsen Homescan to y/e 29/12/07

20. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade’s ‘fair share’ index Source: Nielsen Homescan to y/e 29/12/07

21. Confidential & Proprietary Copyright © 2007 The Nielsen Company Source: Nielsen Media Research

22. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade super-categories Source: Nielsen Scantrack

23. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade: top category shares Source: Nielsen Scantrack

24. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade: top categories - £m Source: Nielsen Scantrack

25. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade sales on promotion Average sold on promotion for all products: 25% Source: Nielsen Homescan y/e 29/12/07

26. Confidential & Proprietary Copyright © 2007 The Nielsen Company Average price per pack indexed on 2005 Source: Nielsen Homescan y/e 29/12/07

27. Confidential & Proprietary Copyright © 2007 The Nielsen Company Fairtrade from the consumer’s viewpoint... Source; Nielsen Homescan survey % agree

28. Confidential & Proprietary Copyright © 2007 The Nielsen Company Media Exposure Source: Nielsen Homescan

29. Confidential & Proprietary Copyright © 2007 The Nielsen Company

30. Caution... “What’s the relevance of the ‘parrot’ logo?” “Low commodity prices are caused by over-supply” “Any subsidy or protection scheme is wrong” “Fair trade schemes encourage further over-production” “Fair trade rewards inefficient producers” “Only a small proportion of the premium I pay reaches the producer” “Makes things worse for producers outside Fair trade schemes” “Wrong for Fair trade schemes to align with big multi-national manufacturers and retailers” “Better to help poor farmers add value to a basic crop or grow something with higher demand (and therefore price)” “I choose better ways to give money to charity” “Fairtrade quality is lower than other similarly priced alternatives” “Manufacturers and retailers have an obligation to their shareholders to maximise (  optimise) profit” “There are so many different logos on packs it’s confusing” “Accreditation bodies are just there to make money for themselves”

31. Confidential & Proprietary Copyright © 2007 The Nielsen Company Summary Ethical consumption – awareness  attitudes  behaviour Fairtrade ‘competes’ with other offerings +47% Co-op, Waitrose, M&S and JS overindex Top categories: bananas, coffee, flowers, tea Prices lower than 2005 – but 48% agree “too expensive” Confusion Integrity

32. Confidential & Proprietary Copyright © 2007 The Nielsen Company Closing thought on the health of your customers and the planet... “It is not your duty to finish the work, but neither are you free to neglect it.” Source: Rabbi Tarfon, Pirke Avot, Talmud