Nestlé is plotting its first assault on the fair trade market with its Nescafé brand.
The food and drinks multinational is holding top level talks to throw its Nescafé instant coffee stalwart into the arena by bringing out a fair trade variant of the top selling drink.
A spokeswoman said the plan was still in the preliminary stages but high on the company’s agenda. However, she warned that the project may still make it no further than the drawing board. A final decision on a rollout is likely to depend on how the proposed product researches with customers.
The attraction of a move into fair trade would appear obvious for Nestlé with accreditation body the Fairtrade Foundation estimating that sales of brands operating under its Fairtrade mark are £2m a week.
A move away from Nestlé’s
historical defence against the charge of unethical marketing would also appear to be a wise move and would build on the company’s ongoing programme to help coffee producers who are disadvantaged.
The company already provides technical assistance and advice to coffee farmers in China, Thailand, the Philippines and Ethiopia and, in 2002, bought 110,000 tonnes of coffee directly from producers.
However, one buyer claimed Nestlé’s record in bringing added value variants to the Nescafé stable was not outstanding, pointing to the 2002 flop of an organic version.
Ian Bretman, deputy director of the Fairtrade Foundation, welcomed Nestlé’s decision to join the fair trade fray but claimed it would need his organisation’s stamp of approval to stand any chance of gaining credibility with consumers.
“We have not spoken to Nestlé about this yet but there is no reason why it would not qualify for our mark if it meets our standards.
“Our whole aim is to be inclusive and our work is to provide a product certification scheme, not a company endorsement.”
Sainsbury launched a £2m TV advertising campaign this week, focusing on its affordable quality. The five-week campaign features its 65th TV advert starring Jamie Oliver acting as a ‘quality detective’. Suppliers feature in the commercials, for the first time, as Oliver visits a pasta manufacturer to witness the quality and authenticity of Sainsbury’s Italian range.
Simon Mowbray
The food and drinks multinational is holding top level talks to throw its Nescafé instant coffee stalwart into the arena by bringing out a fair trade variant of the top selling drink.
A spokeswoman said the plan was still in the preliminary stages but high on the company’s agenda. However, she warned that the project may still make it no further than the drawing board. A final decision on a rollout is likely to depend on how the proposed product researches with customers.
The attraction of a move into fair trade would appear obvious for Nestlé with accreditation body the Fairtrade Foundation estimating that sales of brands operating under its Fairtrade mark are £2m a week.
A move away from Nestlé’s
historical defence against the charge of unethical marketing would also appear to be a wise move and would build on the company’s ongoing programme to help coffee producers who are disadvantaged.
The company already provides technical assistance and advice to coffee farmers in China, Thailand, the Philippines and Ethiopia and, in 2002, bought 110,000 tonnes of coffee directly from producers.
However, one buyer claimed Nestlé’s record in bringing added value variants to the Nescafé stable was not outstanding, pointing to the 2002 flop of an organic version.
Ian Bretman, deputy director of the Fairtrade Foundation, welcomed Nestlé’s decision to join the fair trade fray but claimed it would need his organisation’s stamp of approval to stand any chance of gaining credibility with consumers.
“We have not spoken to Nestlé about this yet but there is no reason why it would not qualify for our mark if it meets our standards.
“Our whole aim is to be inclusive and our work is to provide a product certification scheme, not a company endorsement.”
Sainsbury launched a £2m TV advertising campaign this week, focusing on its affordable quality. The five-week campaign features its 65th TV advert starring Jamie Oliver acting as a ‘quality detective’. Suppliers feature in the commercials, for the first time, as Oliver visits a pasta manufacturer to witness the quality and authenticity of Sainsbury’s Italian range.
Simon Mowbray
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