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Case
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Reference no. 705-035-1
Subject category: Ethics and Social Responsibility
Authors: Vasudha M (IBS Case Research Center (IBS CRC)); TR Venkatesh (IBS Case Research Center (IBS CRC))
Published by: IBS Research Center
Published in: 2005
Length: 9 pages
Data source: Published sources
Topics: Cafedirect; Fairtrade business model; Tea and coffee in the UK; Ethics; Corporate social responsibility (CSR); Fairtrade; Hot beverages in the UK; Coffee trade; Alternative trading organisations; Ethical consumerism; Instant coffee market in the UK; Free trade; World trade; Conscience brand; Specialty coffee
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Abstract

This is the first of a two-case series (705-035-1 and 705-040-1). Cafedirect Limited, UK''s pioneering Fairtrade coffee company had been founded in 1991. The company followed the Fairtrade business model that aimed at delivering quality beverages to consumers and a fair deal to growers in the developing world. The brand ''empowered'' the consumers by giving them a role in promoting fair trade and also the farmers by paying them fairer prices and through developmental projects. The company had set up its Gold Standard Policy which guaranteed to always pay above the world price for coffee and to support the growers. The case talks about the Fairtrade business model and questions whether Cafedirect could become a successful brand, not just an altruistic one, while following the fair trade model.
Location:
UK
Industry:
Hot beverages
Size:
GBP6,262,000 turnover
Other setting(s):
1991-1998
Case
-
Reference no. 705-040-1
Subject category: Ethics and Social Responsibility
Authors: Vasudha M (IBS Case Research Center (IBS CRC)); TR Venkatesh (IBS Case Research Center (IBS CRC))
Published by: IBS Research Center
Published in: 2005
Length: 16 pages
Data source: Published sources
Topics: UK hot beverages market; Tea and coffee market in the UK; Cafedirect; Fairtrade business model; Corporate social responsibility (CSR); Ethical trading; Penny Newman; Nestle; Kraft; Ethical markets; Ethical consumerism; Fairtrade organisation
View full details

About

Abstract

This is the first of a two-case series (705-035-1 and 705-040-1). Cafedirect Limited, UK''s pioneering Fairtrade coffee company had been founded in 1991. The company followed the Fairtrade business model that aimed at delivering quality beverages to consumers and a fair deal to growers in the developing world. The brand ''empowered'' the consumers by giving them a role in promoting fair trade and also the farmers by paying them fairer prices and through developmental projects. The company had set up its Gold Standard Policy which guaranteed to always pay above the world price for coffee and to support the growers. The case talks about the Fairtrade business model and questions whether Cafedirect could become a successful brand, not just an altruistic one, while following the fair trade model.

Settings

Location:
UK
Industry:
Hot beverages
Size:
GBP6,262,000 turnover
Other setting(s):
1991-1998

Related

Case
-
Reference no. 705-040-1
Subject category: Ethics and Social Responsibility
Authors: Vasudha M (IBS Case Research Center (IBS CRC)); TR Venkatesh (IBS Case Research Center (IBS CRC))
Published by: IBS Research Center
Published in: 2005
Length: 16 pages
Data source: Published sources
Topics: UK hot beverages market; Tea and coffee market in the UK; Cafedirect; Fairtrade business model; Corporate social responsibility (CSR); Ethical trading; Penny Newman; Nestle; Kraft; Ethical markets; Ethical consumerism; Fairtrade organisation
View full details