Is fair trade coffee a beachhead for bananas?

By: MICHAEL HILL - Associated Press | Wednesday, October 20, 2004 9:32 PM PDT ∞

GUILDERLAND, N.Y. ---- Mark Van Wormer is a fair trade coffee guy. He drinks it at home. He persuaded the private school where he teaches to make the switch. And he always requests a fair trade blend at Starbucks.

"I was very attracted to the notion of buying a product that could actually put a little bit more money in the pockets of the smaller farmers," said Van Wormer, an Albany-area resident.

Socially conscious consumers such as Van Wormer have made fair trade brews a rapidly growing niche of the coffee market. The beans can now be found on supermarket shelves next to the Folgers and in the espresso at Dunkin' Donuts.

The term "fair trade" describes organized efforts to give small growers in other countries ---- often in Central and South America ---- a price for their products that gives them a decent living. Not-for-profit organizations, such as TransFair USA in this country, certify which products can carry a fair trade label.

The growth in sales of fair trade coffee has been so strong that fair traders are increasing their marketing efforts beyond coffee. Get ready for a fair trade push on sugar, chocolate, fruit juice, bananas and more.

"There's a trend across the food industry of people getting into their food more and more," explained Rodney North of Equal Exchange, a fair trade business. "There's a whole interest in authenticity."

TransFair USA President and Chief Executive Officer Paul Rice expects about 30 million pounds of fair trade coffee to be imported this year, up from 18.7 million pounds in 2003.

Rice concedes that would still amount to about 1 percent of a market that continues to be dominated by the likes of Folgers and Maxwell House. But with a speedy growth rate, fair trade coffee has spilled into the mainstream.

Starbucks' fair trade use has tripled in the last two years. (Their baristas honor requests for fair trade drinks, even if they're not a featured blend.) Espressos at Dunkin' Donuts are fair trade. Procter & Gamble, maker of Folgers, in September began offering a fair trade certified Mountain Moonlight coffee under its premium Millstone brand.

"It's still a very small percentage of the market, but something that people are starting to pay more attention to and roasters are starting to view as a market niche worthy of servicing," said Joseph DeRupo of the National Coffee Association.

Rice cites the broader trend of consumers paying more attention to what they eat. In an era when food is scrutinized for everything from carb content to growth hormones, it's not a stretch to check its political pedigree.

He also mentions the "feel good" factor ---- the belief held by consumers such as Van Wormer that they are making the world just a little bit better with their daily cup of coffee. Not surprisingly, many fair trade consumers also buy organic food.

Coffee was a logical fair trade beachhead since drinkers of high-toned brews such as mocha java were already used to paying a bit more per cup. It's not yet known if fair trade can expand significantly beyond the coffee cup.

"For us the big question is, 'Can we replicate that in other crops?' " Rice said.

TransFair began certifying fair trade bananas, pineapples and mangoes this year. Rice expects fair trade fruit juices to be sold eventually and sees big potential in jasmine and basmati rice. Equal Exchange just launched its own fair trade chocolate bars, joining a number of specialty producers, and will offer fair trade sugar packets to food service businesses.

Chocolate, like coffee, is often viewed as a luxury food, so pricier chocolate could potentially succeed as a fair trade item, said Susan Kleine, a professor of marketing at Bowling Green State University. She thought it might be harder to market fair trade staples such as bananas and sugar.

For fair trade to really catch on, Rice said more consumers would have to "connect the dots" between the food on the shelf and the farmer in the field. Advocates say the message will get out the same way it was through coffee: word-of-mouth.

For the first time, this summer's Fancy Food trade show in New York City included a fair trade exhibit featuring makers of coffee, tea, chocolate syrup and fruit juices.

"We see it as a category that will grow," said Denise Shoukas, spokeswoman for the National Association for the Specialty Food Trade, which staged the show. "It's just like organic was a few years ago where a certain kind of consumer was buying it, and now organic is expected in your produce section."

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