Subject category:
Ethics and Social Responsibility
Published by:
IBS Research Center
Length: 16 pages
Data source: Published sources
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https://casecent.re/p/66066
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Abstract
This is the second of a two-case series (705-035-1 and 705-040-1). In 2004, the leading players in the UK hot beverages market, Nestle Corporation and Kraft Foods announced their plans to launch ethical brands. Despite their traditional cynical attitude towards Fairtrade, they had decided to enter the ethical market taking into account the success achieved by Fairtrade products and companies such as Cafedirect. Cafedirect was the fastest growing coffee and tea brand in the UK hot beverages market, which had been stagnant since the beginning of the second millennium. While this move by Nestle and Kraft was an acknowledgement of the success achieved by Cafedirect and its Fairtrade business model, analysts wondered how the company would fare in the face of stiff competition from the well established mainstream players in the market.
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Abstract
This is the second of a two-case series (705-035-1 and 705-040-1). In 2004, the leading players in the UK hot beverages market, Nestle Corporation and Kraft Foods announced their plans to launch ethical brands. Despite their traditional cynical attitude towards Fairtrade, they had decided to enter the ethical market taking into account the success achieved by Fairtrade products and companies such as Cafedirect. Cafedirect was the fastest growing coffee and tea brand in the UK hot beverages market, which had been stagnant since the beginning of the second millennium. While this move by Nestle and Kraft was an acknowledgement of the success achieved by Cafedirect and its Fairtrade business model, analysts wondered how the company would fare in the face of stiff competition from the well established mainstream players in the market.