1. Fairtrade Seminar 2008 Birmingham
Martin Hill, Head of Commercial Relations,
The Fairtrade Foundation
20th February 2008

2. The Fairtrade Foundation’s Vision
“A world in which every person, through their work, can sustain their families and communities with dignity. ”

3. Fairtrade - Aims and Objectives
Fairtrade is a strategy for poverty alleviation and sustainable development.
Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalised by the conventional trading system and it promotes trading partnerships based on dialogue, transparency and respect that contribute to sustainable development by offering better trading conditions to producers and workers.

4. The Scale of Poverty 1 billion people live on less than $1 a day
Half the world (about 3 billion) live on less than $2 a day
So what does this actually mean for people in their daily lives ?
1.1 billion (1 in 6) have no access to clean drinking water and 2.6 billion ( nearly half the world ) lack basic sanitation (WHO )
Approx 790 million are chronically undernourished
30,000 children die every day due to poverty ( UNICEF )
That is now about 10 million children a year under 5 yrs
Source: Oxfam 2007

5. Other Effects of Poverty
Nearly a billion people entered the 21st century unable to sign their names or read a book
80 million children receive no education at all
Most of these will be girls and children from rural families
Source: Oxfam 2007

6. Role of the Fairtrade Foundation
Certify FAIRTRADE Mark products
Expose the injustices of global commodity markets to consumers and engage the public in trade-related issues
Raise awareness of the FAIRTRADE Mark and increase purchases of Fairtrade
Develop relationships with commercial partners to expand product range and extend distribution
Our job
Award the only independent consumer product guarantee of Fairtrade - the FAIRTRADE Mark
To manage & monitor licensee activities & relationships

7. Members A charity set up in 1992 by several groups
6 original (Founder) members: Oxfam, Christian Aid, CAFOD, Traidcraft, World Development Movement, National Federation of Women’s Institutes
8 additional members since 2003: Banana Link, Methodist Relief and Development Fund, Nicaragua Solidarity Campaign, People and Planet, Scottish Catholic International Aid Fund (SCIAF), United Reformed Church, Shared Interest Foundation, Tearfund

8. The case for Fairtrade Coffee Price Fluctuations

9. One Global System
Fairtrade Labelling Organisations International (FLO), unites initiatives across 80 countries
22 consumer countries - Europe, Japan, North America, Mexico and Australia/New Zealand
Producers from 58 developing countries
Worldwide, some 7 million farmers, workers and their families are able to benefit from participating in, and shaping, Fairtrade
Over 400 producer groups.

10. Producer Organisations Supplying the UK Market

11. How do we do it? Certification
Inspecting and auditing producer organisations
Auditing other traders in the supply chain
Licensing products for the UK market
Certification applies to organisations that represent farmers and workers. Key aspects is that producets in addition to being sourced from certified producers must also be licensed for the UK market with the Foundation

13. Fairtrade Labelling organisation
Working with Producers:
Development and Certification
Standards, pricing & premium levels
Producer support
Highlight that FLO is a separate organisation to the Foundation, but that we work in partnership. Them focusing on the producers – us on the market and consumers.

14. What do Fairtrade standards cover?
Social & gender
Avoidance of forced & child labour
Freedom of Association
Minimum working conditions
Economic
Access to Fairtrade markets
Minimum price & The Fairtrade Premium
So guaranteeing that for any Fairtrade sales the farmer/group will always receive this minimum price + premium.
If the market price goes above the minimum then the market price applies + premium

15. What do Fairtrade standards cover?
Environmental
Reduction in use of pesticides
Development of Integrated Crop Management
Ongoing improvements in the environmental sustainability of the production

16. Who can be involved?
FLO defines the countries in which it certifies producer organizations as;
Poorer countries
Countries with extreme differences between the poorest and the richest
defined by the United Nations Human Development Index (HDI)

17. The difference that Fairtrade is making
There are now 400 producer groups selling to the UK Fairtrade market
More than 7m people in Africa, Asia and Latin America now benefit from Fairtrade (Farmers, workers and their families)
The Fairtrade Premium is being used to;
Build Schools
Provide clean drinking water
Pay for sickness benefits and build facilities
Pilot expensive organic conversion schemes to help farmers improve their futures

18. Benefits for the whole community
For example in the Windward Islands…Farmers decided to use the Fairtrade Premium to finance:
Farm Improvements
Roads
Education Projects
Community projects

19. “Confidence has been returned to the farmers through access to the Fairtrade market and continued employment is promoting peace and stability”
Prime Minister Roosevelt Skerrit of Dominica

20. The things we take for granted..
“Fairtrade has put money into the hands of women to meet our children’s needs. We can buy pens and notebooks so they can go to school. We have bought seeds and fertiliser to grow vegetables and improve our family’s diet.”
Sira Souko, Batimakana

21. Issues of equality…
“Women now join in the decision making. The women are now involved in the harvest and decisions about production and conservation. We were part of the decision to build a new school.”
Bamakan Souko,
Dougourakoroni.

22. The strong perception of Fairtrade as an effective and trustworthy way of tackling poverty suggests significant potential for growth
Most Effective and Manageable Way to Help Poor People1
% of Respondents (n=503)
Brands Most Trusted to Deliver on Ethical Promise2
% of Respondents (n=503)
Buying Fairtrade products
Giving money to charities who support long-term development
Recycling
Reducing carbon emissions
Lobbying my MP or Government (eg on aid, third world debt etc)
49% of Respondents disagreed with the statement “It’s better to give money to charity than to buy Fairtrade products” (vs 7% agreeing)
Sponsoring a child
Avoiding buying big global brands
Giving money to emergency relief charities
“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)”
“Which of the following brands do you MOST trust to deliver against any ethical promise? (Choose maximum of five)”

23. The British Fairtrade Market
A positive opportunity for consumers to help reduce global inequality
About sustainable food production & trade
A commercial proposition for suppliers and retailers
Distinct & complementary to ethical trading
At its most effective when embedded as a springboard for overall CSR strategy

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

27. Opticians, Ultravision, Leighton Buzzard- with local Fairtrade town campaigner celebrating the switch to Fairtrade tea and coffee

29. UK Sales of Fairtrade Products 1999 - 2006
2002
2001
2000
2004
2003
2006
2005

30. Extensive Availability of Products

31. 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

32. Overall awareness- The FAIRTRADE Mark

33. High recognition of FAIRTRADE Mark versus other schemes
Respondent Brand Recognition1
% of Respondents (n=503)
Never Seen
Seen Once or Twice
Seen a Bit
Seen a Lot
“How familiar are you with the following organisations (and their logos)?”
Source: OC&C Online Consumer Survey May 2007, OC&C analysis

34. Why don’t consumers buy more Fairtrade products
2007
2006
Availability/visibility in store
29%
34%
Habit
23%
19%
Price
18%
Brand loyalty 9%
11%
Awareness of products 8%
Quality 4% 3%
Don’t support / not convinced 2%
Not the main shopper
14%
13%

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

36. GROWING AWARENESS, ENGAGEMENT AND DEMAND

37. Campaigners Word of Mouth key for Fairtrade 70-80 000 supporters
“Multiplier” Campaigners
300+ Fairtrade Towns, cities and boroughs
60 Fairtrade Universities
Over Faith Groups

38. Campaigner Events

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

40. Images copyright Simon Rawles Images copyright Simon Rawles
Aims:
Following increased interest from businesses and Fairtrade suppliers and a range of qualitative data
The YouGov survey asked respondents to put in order of importance a range of 10 initiatives that companies could do to improve their ethical and environmental sourcing and procurement habits.
 45% put reducing carbon emissions at the top of their list
38% made Fairtrade put Fairtrade closely behind, while among other results,
32% said their company should recycle or use recycled goods,
 19% said their employer should donate a percentage of company profits to charity
We launched the Fairtrade at work campaign in Autumn BT announced that Launched October 2006 with switch of BT to exclusively Fairtrade Hot Beverages (moved to exclusively FT offering, over 3 million cups annually)
1. Increase awareness of Fairtrade in the workplace
2. Stimulate wider availability of Fairtrade products in the work environment

41. On-line Developing presence on Facebook, MySpace
Extensive peer-to-peer communication via Fairtrade YahooGroups

42. On-line Developing presence on Facebook, MySpace
Extensive peer-to-peer communication via Fairtrade YahooGroups

43. On-line- new Fairtrade Foundation website

44. Fairtrade Fortnight

45. What is Fairtrade Fortnight?
Our biggest annual promotional campaign (and one of the biggest in the UK)
2008 will be 13th 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.

46. Fairtrade Fortnight- 2008

47. Retailer Activity ‘07: Product display

48. Retailer Activity ‘07: Indoor displays

49. Retailer Activity ‘07: Window/Car park display

50. Retailer Activity ‘07: Shelf POS

51. Sales Impact

52. Role of The FAIRTRADE Mark in brand and product development

53. 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”

54. Producer ownership / mission focussed brands

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

56. FAIRTRADE Mark is a contributor to equity and customer communication

57. FAIRTRADE Mark and provenance

58. Private Label Brand Development- Fairtrade as core reason to believe

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

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

61. Private Label Brand Development- Fairtrade as part of core category

62. Other Branded Product Development

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

65. 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

66. 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
Qualifying statement appears alongside the symbol

67. 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 :

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

69. First- contact The Fairtrade Foundation

70. 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?

71. 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”…

72. Consumer Trust is critical
Brands Most Trusted to Deliver on Ethical Promise2
% of Respondents (n=503)
“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)”
“Which of the following brands do you MOST trust to deliver against any ethical promise? (Choose maximum of five)”

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

74. Thank you