Cafédirect

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Cafédirect
Type	Public
Founded	1991
Headquarters	London, United Kingdom
Key people	Anne MacCaig, CEO Krishna Gopala, Chairman
Industry	Beverage
Products	Coffee, Tea, Cocoa
Revenue	£22.3 million (2006/07)
Website	www.cafedirect.co.uk

Cafédirect is a UK-based alternative trading organization. It is currently one of the largest Fairtrade hot drinks companies in the world. Its brands include Cafédirect, Teadirect and Cocodirect. Cafédirect works with over 300,000 coffee, tea, and cocoa growers in 39 registered Fairtrade producer organisations across 13 countries.

Cafédirect was founded in 1991 by Oxfam, Traidcraft, Equal Exchange and Twin Trading as a response to a global collapse in coffee prices. Cafédirect revolutionized the Fairtrade world by launching the movement's very first mainstream coffee brand. It was also the first Fairtrade coffee brand to carry the Fairtrade Mark in the UK and the first Fairtrade product to be sold in supermarkets such as Co-op and Safeway.

In 2007, the company's market share for hot drinks equated to 34%, 32%, and 14% respectively of the UK's Fairtrade coffee, tea, and drinking chocolate markets. In the overall market, Cafedirect is the 5th largest coffee brand and 7th largest tea brand in the UK.^[1]

[edit] Producer support programmes

Cafédirect established the Gold Standard, a guarantee to pay above the world market price for coffee, and to support the development of producers. In 2007, the amount paid to coffee, tea, and cocoa growers over and above the market price totalled nearly £1 million, bringing the total for the 2004-2007 to more than £4.3 million.^[1]

In addition to paying a fair price to growers in developing countries, the company donates a percentage of its profits to producers for activities such as market information and management training. In 2007, the company invested a £0.6 million in its Producer Partnership Programmes (PPP) and these investments attracted, without additional cost to the company, matched funds of £0.7 million, meaning growers benefited from a total investment of £1.3 million.^[1]

In 2007, the organization launched amongst other things:

• Initiated a three year public private partnership with the German Technical Cooperation (GTZ) to support small farmers in analysing the threats of climate change to their specific environments and identifying viable adaptation strategies
• Supported its 162,007 African grower partners in developing community-led and cooperative-specific environmental initiatives to increase energy efficiency and reduce deforestation
• Worked directly with tea growers to introduce an improved pricing structure to provide additional support when market prices drop. As a result, the company increased its minimum price by 8%, and, including the Fairtrade premium, paid on average 47% over and above market prices

[edit] Awards

Cafedirect coffee shop on Regent Street, in central London

• Teadirect, Cafedirect's tea brand, is nominated for Best Hot Beverage in the 2008 Branded Excellence Awards
• In a survey of 2,000 global brands Cafedirect ranks No. 1 as the most recommended brand (Source: Millward Brown, March 2007).
• Cafedirect's Machu Picchu gourmet coffee beans were awarded a Gold Star in this year's Great Taste awards.
• Combining taste, price, ethics, and availability, Teadirect tops the Fairtrade Tea category: New Consumer Magazine, February 2008

[edit] References

[edit] See also

[edit] External links

• Cafédirect
• The Fair Trade Story Case Study on Cafédirect's development