Fair Trade Adoption Case Study

Goals

To find an example of an FNB company that has adopted fair trade practices, and the impact that it had on their operations and consumer response.



Early Findings

Global FNB Fair Trade Market

  • In 2018, some fair trade products in the FNB category continued their worldwide growth with 7% for bananas and 21% for cocoa, whilst other suffered a decrease such as sugar cane with -4% and tea with -8%.
  • In the same period, fair trade coffee sales remained stable despite coffee experiencing its lowest price in 12 years, and the fair trade pricing premium increasing the price by 50% over the average market price in H2 2018.
  • Low coffee prices hurt fair trade sales, with the global price hovering around $1/pound compared to $1.40/pound as the minimum fair trade price.

Matthew Algie

  • Matthew Algie is primarily a coffee roasting company founded in 1864 in Scotland, which started initially with tea and moved on to coffee after WWII.
  • It is owned by German group Tchibo.
  • The company offers a range of fresh and sustainably-sourced coffees destined to the catering and retail sectors in the British Isles.
  • It has a roastery in Glasgow, Scotland, that supplies restaurants, cafes, bars, and supermarkets.
  • The company has a strong fair trade sourcing policy with 86% of their coffee contracts being certified fair trade.
  • Matthew Algie promotes fair trade certifications in the UK and aims to convince consumers of their importance.
  • In terms of performance management and business objectives, one of their 2019 KPI focused on monitoring the sourcing of fair trade certified coffee whenever possible.
  • The company started focusing on fair trade products in 1997, introducing the UK's first ever fair trade espresso bean in the same year.
  • In 2017, it experienced a profit boost with 28% growth to reach £3.48 million with a 9.6% revenue increase to reach £41m in 2017.
  • The company claimed that this success was due to a stronger demand for quality coffee.

In addition to this public search, we scanned our proprietary research database of over 1 million sources and were unable to find any specific research reports that address your goals.

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