The Impact of Starbucks on the Growth of Fair Trade Certified™ Coffee in the United States
    --By Lloyd Gray, Public Relations Manager, TransFair USA

TransFair USA’s first “national headquarters”—a one-room office in a converted warehouse in downtown Oakland—opened in late 1998 with lofty goals: to facilitate direct trade between farmers in developing countries and U.S. businesses, and to ensure that those farmers received fair prices for their products. To carry out this mission, TransFair adopted the policy of auditing the entire Fair Trade supply chain, from crop to cup, and issuing Fair Trade Certified™ labels to clearly identify products meeting internationally recognized Fair Trade criteria. With all of the key components in place, the nation’s first and only Fair Trade certification organization was born.

Since then, TransFair has branched out to provide Fair Trade certification to tea, cocoa, bananas, grapes, mangos, pineapples and, most recently, sugar and rice. Though imports of all of the products that TransFair certifies have grown rapidly, coffee has seen the most explosive growth, and is today the fastest-growing segment of the $9 billion specialty coffee industry. Helping reach that distinction was a company well-known to coffee connoisseurs around the globe: Starbucks Coffee Company.

The Starbucks-TransFair relationship began in early 2000, with Starbucks committing to sourcing, roasting and selling Fair Trade Certified™ coffee through its network (at the time) of 2,300 company-owned retail stores and through more than 400 colleges and universities throughout the United States. Subsequent years saw Starbucks commitment to Fair Trade grow dramatically. Noteworthy initiatives include doubling the amount of Fair Trade Certified™ coffee purchased each year (expected to top 10 million pounds this year); providing millions of dollars in affordable credit to farmers (including Fair Trade cooperatives); making whole bean Fair Trade Certified™ coffee available in all of the Company’s North American stores and promoting Fair Trade Certified™ coffee in its brewed “Coffee of the Week” rotation.

Most recently, Starbucks rolled out a new Fair Trade Certified™ coffee this month called Café Estima Blend™, a bold, dark roasted blend of washed coffees from Latin America and the Pacific region. (Please see the article titled, “Starbucks Highlights New Café Estima Blend™ Fair Trade Certified™ Coffee in Celebration of Fair Trade Month” in this newsletter for more information on this and other Fair Trade Certified™ coffees offered by Starbucks.)

Starbucks and TransFair USA collaborate in a variety of ways, which go well beyond simply purchasing certified coffee from Fair Trade cooperatives and selling labeled Fair Trade Certified™ products. Some of this joint work includes co-marketing, product development, farmer and industry connections and consumer education.

Since 1998, TransFair has certified more than 80 million pounds of coffee, translating into $62 million in additional money for Fair Trade farmers—money that is typically used to provide health care and education for children and families and to make improvements to communities. TransFair’s success to date is an indication of the enormous potential of Fair Trade to transform international trade. The challenge now for TransFair is to seize the opportunity to make the U.S. market—the world’s largest consumer market—an engine for positive change. TransFair looks forward to continuing to collaborate with Starbucks on its Fair Trade Certified™ initiatives to help the benefits of globalization extend to those who need it most.

To learn more about TransFair USA, and to find out how you can support Fair Trade Month 2005, please visit the Fair Trade Certified™ website at www.fairtradecertified.org.

About TransFair USA
TransFair USA, a 501(c)(3) nonprofit organization, is one of 19 members of Fairtrade Labeling Organizations International (FLO), and the only third-party certifier of Fair Trade products in the United States. It audits transactions between U.S. companies offering Fair Trade Certified™ products and the international suppliers from whom they source in order to guarantee that the farmers and farm workers behind Fair Trade Certified™ goods were paid a fair, above-market price. In addition, annual inspections conducted by FLO ensure that strict socioeconomic development criteria are being met using increased Fair Trade revenues. To learn more, visit www.transfairusa.org.

About the author
Lloyd brings to TransFair USA a unique blend of nonprofit, journalism and public relations experience. His background includes stints at the prestigious global firm of Edelman Public Relations and enterprise software giant PeopleSoft Inc. Lloyd made his mark in journalism as a reporter for the Quincy Patriot Ledger and as a reporter for PC Week Magazine, the country’s leading information technology publication. On the nonprofit front, Lloyd has worked in an array of positions as the leader of a truancy prevention program, staff supervisor at an emergency youth shelter and street worker in a gang prevention program.

Back to top