Cafédirect
Encyclopedia
Cafédirect is a UK
-based alternative trading organization
. It is currently one of the largest Fairtrade
hot drinks companies in the world. As well as coffee, Cafédirect has a hot beverage range that includes 100% Fairtrade tea and hot chocolate. Cafédirect works with over 260,000 coffee
, tea
, and cocoa growers in 40 registered Fairtrade producer organisations across 14 countries, affecting the lives of over 1.2 million people in developing countries.
Cafédirect's mission
is to "change lives and build communities through inspirational, sustainable business. We focus our social and economic impact in the developing world."
Cafédirect was founded in 1991 by Oxfam
, Traidcraft
, Equal Exchange Trading
and Twin Trading
as a response to a global collapse in coffee
prices. Cafédirect revolutionized the Fairtrade world by launching the movement's very first mainstream coffee brand
. It was also the first Fairtrade coffee
brand to carry the Fairtrade Mark in the UK and the first Fairtrade product to be sold in supermarkets such as Co-op
and Safeway
.
In 2007, the company's market share for hot drinks equated to 34%, 32%, and 14% respectively of the UK's Fairtrade coffee, tea, and drinking chocolate markets. In the overall market, Cafedirect is the 5th largest coffee brand and 7th largest tea brand in the UK.
In addition to paying a fair price to growers in developing countries
, the company donates a percentage of its profits
to producers for activities such as market
information and management
training
. In 2007, the company invested a £600,000 in its Producer Partnership Programmes (PPP) and these investments attracted, without additional cost to the company, matched funds of £700,000, meaning growers benefited from a total investment of £1.3 million.
In 2007, the organization launched amongst other things:
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
-based alternative trading organization
Alternative trading organization
An alternative trading organization is usually a non-governmental organization or mission-driven business aligned with the Fair trade movement, aiming "to contribute to the alleviation of poverty in developing regions of the world by establishing a system of trade that allows marginalized...
. It is currently one of the largest Fairtrade
Fairtrade labelling
Fairtrade certification is a product certification system designed to allow people to identify products that meet agreed environmental, labour and developmental standards. Overseen by a standard-setting body, Fairtrade International , and a certification body, FLO-CERT, the system involves...
hot drinks companies in the world. As well as coffee, Cafédirect has a hot beverage range that includes 100% Fairtrade tea and hot chocolate. Cafédirect works with over 260,000 coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
, tea
Tea
Tea is an aromatic beverage prepared by adding cured leaves of the Camellia sinensis plant to hot water. The term also refers to the plant itself. After water, tea is the most widely consumed beverage in the world...
, and cocoa growers in 40 registered Fairtrade producer organisations across 14 countries, affecting the lives of over 1.2 million people in developing countries.
Cafédirect's mission
Mission statement
A mission statement is a statement of the purpose of a company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decision-making...
is to "change lives and build communities through inspirational, sustainable business. We focus our social and economic impact in the developing world."
Cafédirect was founded in 1991 by Oxfam
Oxfam
Oxfam is an international confederation of 15 organizations working in 98 countries worldwide to find lasting solutions to poverty and related injustice around the world. In all Oxfam’s actions, the ultimate goal is to enable people to exercise their rights and manage their own lives...
, Traidcraft
Traidcraft
Traidcraft is a UK-based fairtrade organisation, established in 1979. The organisation has two components: a public limited company called Traidcraft plc, which sells fairly traded products in the United Kingdom; and a development charity called Traidcraft Exchange that works with poor producers in...
, Equal Exchange Trading
Equal Exchange Trading
Equal Exchange Trading is a UK-based alternative trading organization. Equal Exchange is a workers co-operative distributing food and beverage products in the independent natural food sector...
and Twin Trading
Twin Trading
Twin Trading is a leading alternative trading company in the United Kingdom. It was founded in 1985 and is based in London.Twin Trading is wholly owned by Twin, a registered charity and membership organisation. Twin's membership comprises 24 farmer co-operatives in eight countries, drawing together...
as a response to a global collapse in coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
prices. Cafédirect revolutionized the Fairtrade world by launching the movement's very first mainstream coffee brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...
. It was also the first Fairtrade coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
brand to carry the Fairtrade Mark in the UK and the first Fairtrade product to be sold in supermarkets such as Co-op
The Co-operative brand
The Co-operative is a common branding used by a variety of co-operatives based in the United Kingdom.Many in the UK mistakenly consider the Co-op to be a single national business, however each Co-operative is actually a franchise selling branded goods produced by the Co-operative Group The...
and Safeway
Safeway (UK)
Safeway was a chain of supermarkets and convenience stores in the United Kingdom. It started as a subsidiary of the American Safeway Inc., before being sold off in 1987....
.
In 2007, the company's market share for hot drinks equated to 34%, 32%, and 14% respectively of the UK's Fairtrade coffee, tea, and drinking chocolate markets. In the overall market, Cafedirect is the 5th largest coffee brand and 7th largest tea brand in the UK.
Producer support programmes
Cafédirect established the Gold Standard, a guarantee to pay above the world market price for coffee, and to support the development of producers. Between 2004 and 2009, Cafédirect paid more than £7.5 million above the market price to growers (including Fairtrade premiums), invested over £3 million in tailor-made programmes to strengthen growers’ businesses and which represents more than 50% of the company's profits and in total, paid more than £10.5 million towards the businesses and communities of our grower partners.In addition to paying a fair price to growers in developing countries
Developing country
A developing country, also known as a less-developed country, is a nation with a low level of material well-being. Since no single definition of the term developing country is recognized internationally, the levels of development may vary widely within so-called developing countries...
, the company donates a percentage of its profits
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
to producers for activities such as market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
information and management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
training
Training
The term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. It forms the core of apprenticeships and provides the backbone of content at institutes of...
. In 2007, the company invested a £600,000 in its Producer Partnership Programmes (PPP) and these investments attracted, without additional cost to the company, matched funds of £700,000, meaning growers benefited from a total investment of £1.3 million.
In 2007, the organization launched amongst other things:
- Initiated a three year public private partnership with the German Technical Cooperation (GTZ) to support small farmers in analysing the threats of climate change to their specific environments and identifying viable adaptation strategies
- Supported its 162,007 African grower partners in developing community-led and cooperative-specific environmental initiatives to increase energy efficiency and reduce deforestation
- Worked directly with tea growers to introduce an improved pricing structure to provide additional support when market prices drop. As a result, the company increased its minimum price by 8%, and, including the Fairtrade premium, paid on average 47% over and above market prices
Awards
- In 2008 and 2009 Cafédirect's products won 10 Gold Great Taste Awards from the Guild of Fine Foods.
- Teadirect, Cafedirect's tea brand, is nominated for Best Hot Beverage in the 2008 Branded Excellence Awards
- In a survey of 2,000 global brands Cafedirect ranks No. 1 as the most recommended brand (Source: Millward Brown, March 2007).
- Cafedirect's Machu Picchu gourmet coffee beans were awarded a Gold Star in the 2007 Great Taste awards.
- Cafédirect's Machu Picchu ground and wholebean coffees both won Soil AssociationSoil AssociationThe Soil Association is a charity based in the United Kingdom. Founded in 1946, it has over 27,000 members today. Its activities include campaign work on issues including opposition to intensive farming, support for local purchasing and public education on nutrition; as well the certification of...
Awards in 2008. - Combining taste, price, ethics, and availability, Teadirect tops the Fairtrade Tea category: New Consumer Magazine, February 2008.
- June 2009 Anne MacCaig, Chief Executive of Cafedirect won the Triodos Bank Women in Ethical Business Awards, Ethical Business of the Year.
External links
- Cafédirect
- Cafédirect's Blog
- Cafédirect on Twitter
- Cafédirect films on Youtube
- Cafédirect on Flickr
- The Fair Trade Story Case Study on Cafédirect's development