Fairtrade and The FAIRTRADE Mark:

Demand Generation and Brand Development

Getting Involved…Mark Varney

Commercial Manager

The Fairtrade Foundation

1999 200220012000 20042003 20062005

UK Sales of Fairtrade Products 1999 - 2006

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

0%

10%

20%

30%

40%

50%

60%

1 2 3 4 5 6 7 8 9

Recognition & Understanding of the FAIRTRADE Mark 1999 - 2007

Source: MORI /TNS Omnibus studies

Recognition

Understanding

= % of people w ho recognize the Fairtrade symbol

= % of people w ho correctly associate the Fairtrade symbol w ith the phrase "Guarantees a better deal for Third World farmers".

1999

11% 12%

2004

39% 42%

2003

25% 33%

2002

20% 24%

2001

20% 19%

2000

12% 16%

2005

50% 51%

2006 2007

51%52% 57% 53%

High recognition of FAIRTRADE Mark versus other schemes

54%

18%13%

4%

19%

17%

14%

11%

3% 3% 3% 2% 3%

17%

16%

20%

19%

14% 13% 11% 11% 4%

11%

49% 53%

66%

83% 83% 85% 87% 91%99%

1%

FairtradeFoundation

Red TractorScheme

SoilAssociation

ForestStewardship

Council

RainforestAlliance

WaitroseFoundation

MarineStewardship

Council

Ethical TeaPartnership

Product(RED)

UTZCertified

Seen a Lot

Seen a Bit

Seen Once or Twice

Never Seen

Respondent Brand Recognition1

% 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

2007 2006

Availability/visibility in store 29% 34%

Habit 23% 19%

Price 19% 18%

Brand loyalty 9% 11%

Awareness of products 8% 11%

Quality 4% 3%

Don’t support / not convinced 2% 2%

Not the main shopper 14% 13%

The Consumer challenge

KNOWLEDGENEEDS

PURCHASING INVOLVEMENT

NEW -Aware, Interested

NON-Buyers

OCCASIONALBuyers –

Rationally engaged

REGULAR / FREQUENT

Buyers

engageddevotees

ENTRY-LEVEL

Awareness, some familiarity but no emotional buy-in OCCASIONAL

Buyers –

Emotionally engaged

Basic rationalInformation: 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

• 70-80 000 supporters• 10 000 “Multiplier”

Campaigners

• 300+ Fairtrade Towns, cities and boroughs

• 60 Fairtrade Universities • Over 3 000 Faith Groups

Campaigner Events

Fairtrade Schools

Officially launched Autumn 2007

Target: 2,000 primary and 500 secondary by March 2009

Images copyright Simon RawlesImages copyright Simon RawlesImages copyright Simon Rawles

On-line

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 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.

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 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”

Product

Supply

Chain

Producer

LicenseeImporter

(Manufacturer)

Exporter

Monitored by FLO International

Monitored by Fairtrade Foundation

(Processor)

Retailer

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 ingredientOR- 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 : certification@fairtrade.org.uk

So you are consideringThe FAIRTRADE Mark as part of your Brand / Innovation / Product

Development Plans?...

First- contact The Fairtrade Foundation

• commercial@fairtrade.org.uk

• mark.varney@fairtrade.org.uk

• www.fairtrade.org.uk

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)”

70%

34%

30%

27%

23%

21%

19%

13%

10%

7%

5%

5%

4%

3%

2%

2%

13%

Fairtrade Mark

Soil Association

Green & Black's

Co-op

Marks and Spencer

Innocent Drinks

Waitrose

Tesco

Sainsbury

Kenco

Cadbury's

Pret a Manger

Starbucks

Tetley

Nestlé

McDonalds

None of these

Accreditation Mark

Retailer

FMCG Brand

Brands Most Trusted to Deliver on Ethical Promise2

% of Respondents (n=503)

Key Developments and The Future

•International Project Management- capacity build

•Fairtrade Foundation capacity build

•Strategic Review roll out

Thank you