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Case
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Reference no. SI39
Subject category: Entrepreneurship
Published by: Stanford Business School
Originally published in: 2004
Version: 20 September 2004
Length: 21 pages
Data source: Field research

Abstract

TransFair USA, the US fair trade labeling arm of the Fair Trade Labeling Organization (FLO), faced strategic challenges in 2003. The Fair Trade label denoted coffee (and other products) sold at a price high enough to allow small certified farmers to earn a living wage. TransFair, like the other fair trade organizations worldwide, enjoyed an exclusive niche status in the United States. In 2003 Fair Trade Certified(TM) coffee accounted for 3-5 percent of all coffee sold in the US, a substantial accomplishment given that TransFair was founded in 1998. Paul Rice, Founder, President, and Chief Executive of TransFair USA, wanted to push Fair Trade Certified(TM) coffee beyond its niche status, into the mainstream. In doing so he faced the challenge of convincing uninformed mainstream consumers and skeptical large scale coffee roasters to buy Fair Trade Certified(TM) coffee, and FLO to allow TransFair to certify large coffee growing estates.
Industry:
Other setting(s):
2003

About

Abstract

TransFair USA, the US fair trade labeling arm of the Fair Trade Labeling Organization (FLO), faced strategic challenges in 2003. The Fair Trade label denoted coffee (and other products) sold at a price high enough to allow small certified farmers to earn a living wage. TransFair, like the other fair trade organizations worldwide, enjoyed an exclusive niche status in the United States. In 2003 Fair Trade Certified(TM) coffee accounted for 3-5 percent of all coffee sold in the US, a substantial accomplishment given that TransFair was founded in 1998. Paul Rice, Founder, President, and Chief Executive of TransFair USA, wanted to push Fair Trade Certified(TM) coffee beyond its niche status, into the mainstream. In doing so he faced the challenge of convincing uninformed mainstream consumers and skeptical large scale coffee roasters to buy Fair Trade Certified(TM) coffee, and FLO to allow TransFair to certify large coffee growing estates.

Settings

Industry:
Other setting(s):
2003

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