How do you get some of the country’s biggest brands to revamp the way they do business? Just ask Paul Rice. As the founder of Fair Trade USA, Rice has convinced the powers-that-be at over 650 companies, including market leaders like Coca-Cola, Ben & Jerry’s, Whole Foods and Starbucks, to embrace the Fair Trade business model: paying farmers a reasonable price for a quality product.
Founded in 1998, Fair Trade USA is now the country’s leading third-party certifier of Fair Trade goods. The nonprofit organization places its stamp of approval on products in over 100 categories, from sugar to shirts to soccer balls, helping to improve the lives of over one million small farmers around the world and counting.
At its inception, Fair Trade USA (formerly known as TransFair USA) certified just coffee. Within a year, forward-thinking tea companies wanted in, too. Once retailers found that Fair Trade goods were selling well, it became clear that the concept was not only morally sound, but also profitable. Other product categories, like chocolate and sugar, were soon added.
“In the beginning, there were a dozen mission-driven companies that were practicing the values of Fair Trade and were eager to lead the way,” says Rice. Enlightened brands and leaders propelled product expansion. They saw that Fair Trade was not just a fit with their morals, but a good business plan.
Take, for example, Green Mountain Coffee Roasters. The company offered its first Fair Trade Certified coffee in 2000 and has since expanded its Fair Trade offerings to 15 different products.
“For many years, Green Mountain Coffee Roasters has supported the Fair Trade movement because we believe that our highest quality coffees come from coffee-growing communities with a healthy quality of life,” says Bob Stiller, the company’s founder and chairman and the president of the Green Mountain Coffee Roasters Foundation. Today, Fair Trade Certified products account for roughly 35 percent of the company’s sales, says Rice.
Getting ethically-minded companies on board is one thing, but in a profit-driven society, it can be challenging to persuade companies driven by their bottom lines to make a change that can be disruptive and costly. That’s why now, more than ever, the force propelling the Fair Trade movement forward is the rapidly growing consumer awareness and demand for such products. In 2005, Fair Trade awareness in the US was at just nine percent; by 2010, that number jumped to 34 percent.
“Some large companies see sustainable development as a moral imperative. Others see a four-fold increase in awareness in the last five years and want to be part of the rising trend,” Rice explains.
According to a recent survey, 91 percent of Americans feel that it is important to pay farmers and workers fairly. People want to help their fellow man; often they just don’t know how. Fair Trade empowers Americans to use their dollars to voice their support for human rights around the world.
Among US consumers who are aware of the movement, almost 80 percent buy Fair Trade products.
Through every day purchases like a cup of coffee or a chocolate bar, people can make a significant difference. Since 1998, consumers have driven more than $220 million back to producers in the developing world. That means schools, health care, roads and other vital services for communities that had previously been left behind by globalization.
“Price is not a huge barrier for millions of consumers that are looking for products that speak to their values,” says Rice. “With Fair Trade, we can make every purchase count.”
Photos courtesy of Fair Trade USA.