1. Ashbury Confectionery - making life a little sweeter Making life a little sweeter The conflict and complexity of demand and supply in Fair Trade product development. Steve Osborn Technical Manager Ashbury Confectionery Ltd.

2. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Major manufacturer of confectionery. Tesco, JS, Asda, Co-Op, Waitrose, Duchy Originals, Gordon Ramsay….. Fair Trade licensees since 2003. – 2 products for Tesco. – 3 products for Co-Op. – More for 2006.

3. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Challenges in NPD Fair Trade (FT) ingredients carry premium FT seen as a mark of quality –Not necessarily better. –Premium prices force them to compete with premium products. –Demand driven by premium market. –FT drives non FT ingredients – (the spirit of FT….). Not quite main stream.

4. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Demand by farmers supply The Development Supply/ Demand Chain Demand Processors Retailer Demand from social awareness

5. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Commodity FT supply is well established –Sugar –Cocoa –Coffee –Nuts –Honey –Vanilla Great for retail packs. –Becoming common place and competitive. - Bananas

6. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Compound, industrial ingredients. Fair trade – ‘… must be used where available…..’ –Vanilla ? –Rum ? –Sweetened condensed skimmed milk ? –Marzipan ? –Praline paste ? –Coffee masse ?

7. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Demand from Farmers supply Demand from social awareness The New Fair Trade Supply/ Demand Chain Retailer Commodity suppliers

8. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Summary Demand for Fair Trade is in danger of outstripping supply of NPD Limitations of ingredients is the rate determining step limiting FT NPD Whilst quality is important – ‘premium’ perception inhibits full scope of NPD

9. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Continuing the evolution of Fair Trade ‘FT’ ingredients –need to be more widely available. –Complex. –Compound. –and Industrial. Availability will create the demand….

10. Ashbury Confectionery - making life a little sweeter Making life a little sweeter Thank you….