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The Consumer Conundrum - Conflict or Co-operate? Simon Wright, O&F Consulting FDIN Fairtrade Seminar February 20th 2008.

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Presentation on theme: "The Consumer Conundrum - Conflict or Co-operate? Simon Wright, O&F Consulting FDIN Fairtrade Seminar February 20th 2008."— Presentation transcript:

1 The Consumer Conundrum - Conflict or Co-operate? Simon Wright, O&F Consulting FDIN Fairtrade Seminar February 20th 2008

2 Today’s Presentation 1.Introduction to O&F Consulting 2.The Strength of The Fairtrade Message 3.Rainforest Alliance 4. Organic Ethical Trade 5. Meeting Consumer Aspirations - Conflict or Co-operate ?

3 1. Simon Wright - O&F Consulting Working with Organic and Fairtrade Food since Examples of clients include; Sainsbury’s Supermarkets (multiple retailer) Planet Organic Ltd (independent retailer) Green & Black’s (organic and Fairtrade chocolate) Divine (Fairtrade chocolate) Liberation (Fairtrade savoury snacks) The Organic Spirits Company (gin, vodka, rum) Information / contact

4 ADVERTISEMENT ! The Handbook of Organic and Fair Trade Marketing Published February 19th 2007 by Blackwells First ever book on this subject Edited by Simon Wright and Diane McCrea More information at Written by industry experts - covers UK, Germany, Italy and the USA Case histories on the success of key brands such as Green & Black’s, Yeo Valley, Clipper, Duchy Originals, Abel & Cole

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6 2. The Strength of the Fairtrade Message

7 Fairtrade Symbol has highest recognition of any ‘ethical’ symbol 54% of consumers said they had seen mark ‘a lot’ compared to 18% for Red Tractor and 13% for Soil Association Majority aware of FT coffee, tea, chocolate, bananas and cocoa only 96% had heard of the mark, 70% had bought a product at some time, 27% of people bought more than one product regularly Source: OC&C Strategy Consultants / Fairtrade Foundation survey of 503 consumers, January 2008

8 2. The Strength of the Fairtrade Message Reasons for Success of FT Symbol Simple, Single Message - Always The Same Good design discipline - logo is always the same place on pack and same colours Fairtrade Foundation Consumer Marketing is relentless and effective and supports FT symbol Annual Fairtrade Fortnight uses celebrities to hammer message home effectively NB Organic does not do this stuff nearly as well!

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10 Sunday, May 03, 2015© Copyright Rainforest Alliance The Rainforest Alliance

11 Sunday, May 03, 2015© Copyright Rainforest Alliance 11 “What is the Rainforest Alliance? The Rainforest Alliance is an international, nonprofit environmental and sustainable development organisation. Our mission is to protect ecosystems and the people and wildlife that depend on them by transforming …” Consumer behaviour Business practices Land use practices

12 Sunday, May 03, 2015© Copyright Rainforest Alliance 12 Reaching Consumers Caribou Coffee Company coffee package artwork Innocent Drinks banana smoothie Banana seal

13 13 3. Rainforest Alliance Commercial Activities in the UK currently include Innocent strawberry and banana smoothies (the current TV and press ad campaign also promotes the link with Rainforest Alliance). McDonalds - all their coffee is Certified. Pret a Manger - sell triple Certified coffee ie Rainforest Alliance Certified, Fair Trade and Organic. Sainsbury in store cafes also serve triple certified coffee. Kenco Sustainable Development coffee is Certified. Liptons - have made a commitment to have all their tea sold across Europe Certified by 2010 PG tips are aiming to have all their tea certified by 2010 Good Natured fruit juice made from Certified fruit is also launching

14 4. Organic Ethical Trade Why ? Originally a joint Pilot Project between Soil Association and Fairtrade Foundation Launched in January 2003 as an attempt to get a better deal for organic farmers from the North (since FT only applies to the South) Provides a single inspection to cover both Organic and fair trade issues (cheaper for producers) Follows in footsteps of other combined joint organic + fair trade schemes such as Bio-Equitable (Ecocert, France), Bio & Fair (Naturland / Gepa, Germany) and IMO (Switzerland)

15 4. Organic Ethical Trade How? I took over Chairing the Standards Development process in March 2003 Became Soil Association Ethical Trade Pilot in January 2004 Ran with three licensees until July 2007 when decided to begin process of adding Ethical Trade Standards to main SA Standards over a very extended period (TBC)

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17 Blue Skies Pineapple

18 Blue Skies Coconut

19 4. Organic Ethical Trade Current Status Aim of Standards is to ensure Fair and ethical trading relationships Socially responsible practices Fair and ethical employment: 1.through the whole organic food chain 2.from producer to retailer, and 3. in both developing and developed countries

20 4. Organic Ethical Trade Air Freight Standards 2007 In parallell to ET Pilot, Soil Association were working on what they should do about airfreight of organic products into the UK After extensive consultation proposal made in October 2007 that countries should only be allowed to export organic products into the UK by air if the products met either the Ethical Trade Standards or the Fairtrade Foundation’s Standards Had the effect of putting ET Standards in the spotlight and accelerating development Decision welcomed by the Fairtrade Foundation Architect of this work is Ken Hayes, here today

21 5. Meeting Consumer Aspirations - Conflict or Co-operate? Summary of how Fairtrade, Rainforest Alliance and Soil Association Organic Ethical Trade differ Rainforest Alliance Focuses on sustainable agriculture in the South - no minimum price set for producers Soil Association Ethical Trade Requires everyone in the supply chain to agree that they have received a fair price - can apply to producers in North and South Fairtrade Sets minimum price for producers in the South as part of a range of other measures

22 5. Meeting Consumer Aspirations - Conflict or Co-operate? What we said last time! November 2005 Dorothy Mackenzie of Dragon speaking at FDIN Fairtrade Seminar summarising qualitative research: Organic and Fairtrade are not directly associated, but the issues are strongly compared No confusion between the issues, but packagining showing both logos did cause some confusion Organic purchasers likely to be interested in Fairtrade Strong interest in seeing more Fairtrade products utilising foods that children eat Super-premium and highly processed foods such as ready meals were seen as a poor fit with Fairtrade (the latter appears true for organics from marketplace observation)

23 5. Meeting Consumer Aspirations - Conflict or Co-operate? What we said last time! May 2006 Dragon speaking at FDIN Organic Seminar summarising qualitative research: All groups were able to separate out certain other themes from what they saw as ‘organic’ issues eg “organic is not necessarily about Fairtrade. I suspect some organic producers exploit their workers in the fields as much as any big corporation” Not a two-way disconnect however: Organic does not imply fairer cultivation But Fairtrade does lead to assumptions that the product will be raised in a way that is better for the natural environment

24 5. Meeting Consumer Aspirations - Conflict or Co-operate? Conflict Fairtrade products can disappoint consumers if they are subsequently found to be at variance with what consumers expect eg use of pesticides in production, acceptance of Genetic Modification, etc Organic products can disappoint consumers if it becomes apparent that the producers did not receive a fair reward for their work or were unable to join a trade union

25 5. Meeting Consumer Aspirations - Conflict or Co-operate? Co- operate Jointly certified products very popular with retailers (especially Sainsbury’s) Organic and Fairtrade consumer groups are not identical but there is considerable overlap so you hit two target markets with the same product Avoids “lefthand - righthand” confusion at the fixture Cuts cost of inspection to producers - one third of Fairtrade producers use premium to pay for organic certification However joint certification (FLO/Organic) can only apply to products from “Third World” countries Other schemes such as Soil Association Ethical Trade can cover “developed and developing” countries

26 Today’s Presentation 1.Introduction to O&F Consulting 2.The Strength of The Fairtrade Message 3.Rainforest Alliance 4.Organic Ethical Trade 5. Meeting Consumer Aspirations - Conflict or Co-operate ?

27 The Consumer Conundrum - Conflict or Co-operate? Simon Wright, O&F Consulting Thank You ! February 20th 2008


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