Fairtrade coffee is being divided into winners and "casualties", according to supplier Percol, which this week diversified into roasted beans.
Over the past year, Food Brands Group-owned Percol has gained new Fairtrade instant coffee listings in Morrisons and Asda and recorded sales up 8% to £8m. Its rivals Cafédirect and Clipper, however, have fallen 39% and 20% respectively [Nielsen].
"The challenge now is, how do you create a point of difference?" said David Brooks, sales director at Percol. "Every retailer is looking to make the space work harder. Traditionally Fairtrade was a point of difference, but now you've got Rainforest Alliance and other ethical brands, which are starting to blur the boundaries. The retailers are looking to rationalise their coffee ranges to make them easier to shop and navigate."
Some brands had had a tough time trying to evolve their offering to compete, and had lost listings, he said. "It has been a tough trading environment for a premium-quality ethical brand like Cafédirect, particularly as retailers have adopted the Fairtrade mark with a discounting strategy," said a spokesman for Cafédirect. The brand had generated a strong pipeline of new products and packaging for 2011 and 2012, and was working with retailers on joint sustainability programmes, he added.
Percol's new launch, Black & Beyond Espresso (rsp: £3.79), goes into Tesco this week in a pack with a transparent window a market first, according to Food Brands Group. It is also launching an new instant Fairtrade Italiano instant coffee (rsp: £3.29) in Waitrose this month and repackaging the entire instant range to clearly mirror its premium roast and ground line-up. Both coffees were higher strength than the rest of the portfolio to reflect a trend towards darker, stronger coffees, said Brooks.
"The brand is going from strength to strength in premium instant coffee," said Food Brands Group director Brian Chapman. "We have seen a significant uplift in sales in this category over the past 12 months, with one of our varieties doubling in growth."
Over the past year, Food Brands Group-owned Percol has gained new Fairtrade instant coffee listings in Morrisons and Asda and recorded sales up 8% to £8m. Its rivals Cafédirect and Clipper, however, have fallen 39% and 20% respectively [Nielsen].
"The challenge now is, how do you create a point of difference?" said David Brooks, sales director at Percol. "Every retailer is looking to make the space work harder. Traditionally Fairtrade was a point of difference, but now you've got Rainforest Alliance and other ethical brands, which are starting to blur the boundaries. The retailers are looking to rationalise their coffee ranges to make them easier to shop and navigate."
Some brands had had a tough time trying to evolve their offering to compete, and had lost listings, he said. "It has been a tough trading environment for a premium-quality ethical brand like Cafédirect, particularly as retailers have adopted the Fairtrade mark with a discounting strategy," said a spokesman for Cafédirect. The brand had generated a strong pipeline of new products and packaging for 2011 and 2012, and was working with retailers on joint sustainability programmes, he added.
Percol's new launch, Black & Beyond Espresso (rsp: £3.79), goes into Tesco this week in a pack with a transparent window a market first, according to Food Brands Group. It is also launching an new instant Fairtrade Italiano instant coffee (rsp: £3.29) in Waitrose this month and repackaging the entire instant range to clearly mirror its premium roast and ground line-up. Both coffees were higher strength than the rest of the portfolio to reflect a trend towards darker, stronger coffees, said Brooks.
"The brand is going from strength to strength in premium instant coffee," said Food Brands Group director Brian Chapman. "We have seen a significant uplift in sales in this category over the past 12 months, with one of our varieties doubling in growth."
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