Fair Trade and the UK Cooperatives

1. Fair Trade and the UK Cooperatives Jacqui MacDonald Co-operative College

4. The World Fairtrade Market

5. The UK Market for Fairtrade The UK is the world’s largest Fairtrade market

6. Fairtrade Sales through UK Co-ops The Co-op is the UK’s market leader in Fairtrade

7. The Co-op is driving UKFairtrade growth • The UK is now the largest Fairtrade market in the world • In the £100M UK market, around £60M is sold through supermarkets • The Co-op, which accounts for 6% of supermarket sales, claims a third ofFairtrade supermarket sales

8. Increase Sales??? • Sales of Fairtrade products through Co-ops have increased by a further 72% year on year to end Oct 04 • Co-op Chocolate blocks increased by 25% in the 12 months following conversion to Fairtrade and more than doubled the UK Fairtrade chocolate market • Co-op Chocolate blocks have grown by a further 50% this year whilst brands have remained static.

9. Co-op coffee initiative increased the UK Fairtrade coffee market by 15% • Fairtrade coffee in Co-op will triple to £6.5M this year • 90% of ground coffee sold through Co-op’s is now Fairtrade. This compares to a Fairtrade national market share of 14% • Only 4% of bananas sold in the UK are Fairtrade. In Co-ops the figure is 17%.

10. How Did We Get Here?

11. Jan 1999 – extends stocking of fair trade • Strategic stocking move • selection of fair trade products made available in all Co-op grocery stores – even the smallest convenience or rural stores • Dramatically increasing availability for consumers • Co-op has more outlets selling fair trade products than any other retailer

12. THE CO-OP & FT Chocolate • Early stockist of Divine • March 2000 Joint Co-op Divine Milk Chocolate • August 2001 Co-op MP Linda Gilroy visited Kuapa in Ghana, EDM and Exhibition in Parliament • March 2002 joint Co-op Divine White Crispy Chocolate • September 2002 Co-op Chocolate Cake with Kuapa’s Cocoa • November 2002 Co-op convert all Co-op chocolate to Fairtrade

15. A TRULY CO-OPERATIVE FAIRTRADE VENTURE The finest Fairtrade chocolate produced by The Day Chocolate Company using cocoa from Kuapa Kokoo Co-operative in Ghana and brought to you by the Co-op

16. Development Outcomes include: • Increased Income • Increased Capability • Community Development • Personal and Organizational Development

18. “We want them (Divine Customers) to know that we work hard to produce cocoa beans and that they are produced under good conditions, great care and pride!”

19. Co-op to Co-op

20. David Ogilvy “ A Company with a price advantage can be undercut. But a company with an emotional difference can potentially demand a premium forever.”

21. Commission Report -The Co-op Advantage • If the movement promotes and exploits its social goals, • seen as a USP • bring competitive advantage, • which should in turn bring commercial success, • which should generate even more resources to meet our social goals.

22. the Co-operative Groupand Fairtrade • Whats the connection? • our purpose ….. “to be a successful co-operative business“

23. The Co-op is founded on a set of guiding values & principles • which have strong links to those of fair trade

24. CO-OPERATIVE VALUES • democracy • equality • self help • solidarity • social responsibility

25. CO-OPERATIVE PRINCIPLES • autonomy & independence • concern for community • education & information • co-operation among co-operatives

31. The Key Streams • Globalisation and Poverty Reduction • Food Integrity • Environment and Sustainability • Animal Welfare and Animal Testing • The Whole Truth • Local Life Support

42. “Fair Trade helps to boost the morale of farmers and helps us financially. We are very proud of the cocoa that we grow; it is the bridge that brings people together”