Fair Trade for Business

Marketing Facts

What is Fair Trade?

A Fair Trade contract guarantees a long-term income for producers of certain products in developing countries. The price is usually fixed above the average price on the stock market. Under the traditional market system coffee growers, for example, often end up not even recovering the costs of production, effectively subsidising our coffee drinking. Fair Trade is a commercial alternative. It applies to a range of commodities including tea, coffee, bananas, sugar, cotton, wine and many more.

Market Growth

The UK has the most dynamic Fair Trade movement in the world. There are Fair Trade groups in many towns across the UK and Wales is due to become the world’s first Fair Trade country in 2008. The Fairtrade logo is recognised by 57% of shoppers[1].

As ‘ethical consumerism’ grows, more and more consumers expect Fair Trade products to be available in cafes, restaurants and in workplaces.

Fair Trade retail sales for 2007 reached £493m (an increase of 81 per cent on 2006), following a 40 per cent year on year increase since 2002. The biggest volumes were in bananas, followed by coffee, cotton and tea[2].

However, most of these commodities are still sold through the traditional market system, meaning Fair Trade producers want to sell more of their products on these terms.

Can you spot the gap in the market? If you offer Fair Trade in your business you are demonstrating to your customers and staff that you are not only responsive to market developments but are ethically-minded. What’s more, your customers of the future are even more likely to expect ethical options – 53% of young people believe it’s worth paying extra for ethically sound goods[3].

Good for sales

Much of the early consumer awareness of Fair Trade and market growth was pioneered through Traidcraft, the co-operative movement and churches. There are sound commercial reasons for offering Fair Trade products to your customers, for example, The Co-operative food business converted all its own-brand chocolate to Fair Trade in 2002 and coffee in 2003. Overnight the value of UK Fair Trade coffee sales increased by 15 per cent. Consumers now recognise the Co-op as one of the leading supermarket retailers of Fair Trade.

Leading businesses such as Marks & Spencer switched to selling only Fair Trade coffee in their cafes and Tate and Lyle sugar plans to convert its full retail range to Fair Trade within two years. Plus, the world’s biggest buyer of Fair Trade coffee is Starbucks.

What does the Fair Trade label mean?

The Fairtrade label is a guarantee of a Fair Trade product, licensed by the Fairtrade Foundation in the UK and brokered through the Fairtrade Labelling Organisation (FLO), an international body that matches up producers and retailers.

‘Fairly traded’ refers to products where no official labelling system exists yet, such as hand-crafts or rubber. To be sure you are getting an ethically traded product, it is advisable to use a BAFTS (British Association of Fair Trade Shops) registered supplier, available at

In both cases a list of ethical criteria must be met by the producer organisations which prevent exploitation.

Fair Trade products

There are more than 3,000 certified products in Britain now including footballs, coffee, honey, sugar, cotton, rugby balls, oranges, ginger, chocolate, rice, tea and bananas and fairly traded musical instruments and sneakers.

How could you use Fair Trade in your organisation?

Fair Trade at work

A recent YouGov survey has revealed that despite growing support for Fair Trade in the UK, only 17% of UK workers say their companies are currently serving Fair Trade products at work. Almost two out of five workers (38%) say they think their company should make products carrying the FAIRTRADE Mark available to staff at work.

Products include tea, coffee and juice, biscuits and cakes for meetings, and wine for client dinners. You can also source Fair Trade certified cotton for your company T-shirts and uniforms and brighten up reception with Fair Trade flowers!

Employees and visitors will be impressed to see Fair Trade products on offer. Providing them demonstrates concern for workers throughout the production process and your business will be seen as socially responsible. For more information, see the Fairtrade Foundation’s campaign

A Fair Trade Policy

If you really want to show your organisation’s commitment to Fair Trade – why not adopt a Fair Trade policy? We have developed a policy to help you show you are introducing Fair Trade into your business practice. By completing it you can feature on an online map of Fair Trade in Wales – get a copy from

Fair Trade in catering outlets

It's easy to make Fair Trade available to your customers and 65 per cent of people in the UK think Fairtrade products should be available in cafés and restaurants as well as shops[4]. There are hundreds of Fair Trade teas and coffees to choose from as well as Fair Trade hot chocolate, sugar, chocolate, break-bars and bananas, all at competitive prices.

Speak to your supplier about Fair Trade foods. You may be able to source from them. A list of Fair Trade suppliers who can source the out of home market is available from the Wales Co-operative Centre, the Fairtrade Foundation or from the British Association of Fair Trade Shops (BAFTS)

What if your current supplier doesn’t offer Fair Trade but you don’t want to upset the relationship? Run Fair Trade alongside your current blend or brand as a trial. If you decide to run it permanently, you could ask your supplier to start stocking Fair Trade: you may not be the first to ask and it is in their interests to meet market needs.

Cafés and restaurants can order a Fair Trade Point of Sale Pack which includes tent cards, tissue coasters, window stickers and posters, from

How can I combine ‘Fair Trade and local’?

Fair Trade and local products can go hand in hand. Both concepts naturally appeal to ethical consumers (along with the environment and animal welfare). Restaurants or cafes could try menus featuring both. Most Fair Trade commodities, such as coffee or bananas, are not grown in the UK or Europe.

Will Fair Trade products cost more?

On average, the retail price of Fair Trade coffee is less than 1p per cup more than non-Fair Trade coffee. You could contact the suppliers suggested for a quote.

Fair Trade consumers recognise the value to producers and are generally prepared to pay for the added value, as is demonstrated by the market growth. A recent Institute of Grocery Distribution report says UK shoppers are now spending £13 billion a year on premium food and groceries – including products which are organic, Fair Trade and local. This market represents 10 per cent of the food and grocery market and the report predicts the value of this market will rise to £19.2 bn by 2011[5].

Test the market

Ask consumers what they want, why not set up a simple voting system? If you have interest, buy some small samples and run them as an alternative for a trial period.

Fair Trade in Wales

The Wales Fair Trade Forum is campaigning to help Wales become the world’s first Fair Trade nation in 2008. The campaign is backed by the Welsh Assembly Government. It asks for support from shoppers, campaigners, town groups, universities, organisations and businesses. Other countries are also following this lead.

To help your town achieve Fair Trade status, you could offer Fair Trade products at work or in your shop or cafe. Visit the forum at or or for details on what becoming a Fair Trade town means go to

What are the benefits of Fair Trade to producers?

  • The guaranteed minimum means growers can afford to improve their life chances, such as sending their children to school.
  • Producers also receive a Fair Trade premium – they decide collectively how to spend this money to improve their community, in many cases building wells to get an accessible water supply.
  • The democratic decision-making process allows women to have a voice. Some organisations provide women’s development programmes, such as Kuapa Kokoo in Ghana.
  • With less pressure for high yields and therefore pesticide use, and more cash for re-investment, Fair Trade products are often better for the environment and consumers. Where pesticides are no longer used and organic farming is developed, for example in cotton or tea production, producers often experience less sickness.
  • For co-operatives, using Fair Trade products brings to life the 6th principle ‘Co-operation among co-operatives’. Many producers work in co-operatives, such as South African wine growers, so it’s only natural to support them.
  • If you would like to find out more about the benefits to producers take a look at (or listen to one of our pod casts of producers in India and Ghana).

And the benefits to your business or organisation

  • Your organisation may benefit from increased sales, and Fair Trade will give you an advantage over your competitors by staying in tune with consumer expectations.
  • Your commitment to Fair Trade may increase customer loyalty which will reduce your marketing costs and increase your income. This may work particularly with younger generations.
  • Recruiting staff and volunteers may be easier if you show you are a caring and ethical employer, and volunteer or staff retention may also increase.
  • Fair Trade provides an opportunity for positive public relations – tell the local press about your move to become a Fair Trade business, as well as your funders and other stakeholders. If you stock a minimum number of products you can be featured in your local Fair Trade town guide. You can play a part in Wales becoming a Fair Trade country.

Written by: Elizabeth Hudson (Fair Trade Marketing Officer) and

Catherine Evans (Marketing Officer)

Last updated: February 2008

[1] Fairtrade Foundation Press release 26/02/2008 - three out of five people in the UK now recognise the FAIRTRADE Mark (TNS Omnimas 2007)

[2] Fairtrade Foundation press release 25/02/2008

[3] TechTribe 2006 survey of 16-25 year olds by youth marketing agency Face

[4] Fairtrade Foundation press release: 26/02/2008 Source OC&C 2007

[5] Fairtrade Foundation press release 26/02/2007