By Lynn Santa Lucia

category spotlight

Vanilla from India, wine from Argentina and bananas
 from Ecuador are all part of a new wave of products 
and ingredients landing on U.S. shelves.

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Fair Trade products are no longer limited to mainstays such as coffee and cocoa. In the past 11 years since these products first became available in the U.S., the market for Fair Trade Certified™ items has grown to encompass a slew of new categories—helping it surpass $1 billion in U.S. sales.

“Each year we have added new products—from sugar and spices to fresh fruit and wine,” says Katie Barrow, public relations manager of TransFair USA, the only third-party certifier of Fair Trade products in the U.S. The organization, which is one of 20 members of Fairtrade Labelling Organizations International (FLO), acts as a middleman between more than 1.4 million small family farmers in 60 countries around the world and American retailers and suppliers.

In 2009, TransFair USA decided that it was the right time to offer certification in the U.S. market to all of the Fair Trade products that were already being certified by its European counterparts. Barrow explains, “Everything was in place: There is enough demand from U.S. manufacturers and retailers to increase their Fair Trade Certified offerings; consumer awareness is on the rise; and there are enough producer organizations in the Fair Trade system to meet this demand.”


Growing Consumer Demand
Fair Trade sales were up 10 percent in the U.S. in 2008 versus 2007, according to a recent survey by FLO. A growing number of consumers who shop with an ethical, rather than price-based, mindset are responding to key criteria of the Fair Trade mission such as paying fair wages and ensuring environmental sustainability of the goods produced.

The same FLO survey shows that shoppers increasingly expect companies to be more accountable and fair in dealing with producers in developing countries. Among the 14,500 people surveyed in 15 countries, almost three-quarters believe companies should actively support community improvement in developing countries.


Sipping Away Injustice
Coffee remains TransFair’s biggest product category, notes Barrow. Since 1999, more than 338 million pounds of Fair Trade Certified coffee have been imported into the U.S.; more than 87 million pounds were imported last year alone. “There has been a lot of education about the injustices that coffee producers face, and this has drawn consumers to seek out a more ‘just’ cup whenever possible,” she notes.

In response to increasing consumer interest, Starbucks, one of the largest buyers of Fair Trade Certified coffee, plans to double its purchases to 40 million pounds in 2009, making the company the largest purchaser of Fair Trade Certified coffee in the world. Additionally, Virgin Atlantic, which serves seven million cups of coffee and five million cups of tea in one year, is now offering only Fair Trade varieties.

Fair Trade Certified tea is also growing in popularity. Honest Tea, in 2004, became the first bottled tea manufacturer in the U.S. to market a Fair Trade Certified product with its Peach Oo-la-long. The company recently converted its entire line of glass-bottle teas—including Pomegranate Red Tea with Goji Berry, Jasmine Green Energy Tea, Peach White Tea and Lemon Black Tea—to Fair Trade Certified. “We are committed to the well-being of the folks along the value chain who help bring our products to market,” says Honest Tea Co-founder, President and TeaEO Seth Goldman. “Our funding has gone to support initiatives such as the opening of the Makaibari Computer Center and School on the Makaibari tea plantation, with more than 200 children already enrolled.”

Consumer interest in fairly traded non-traditional beverages is also growing. “Now, there is a proven market for rainforest-grown yerba mate,” notes Troy Laur, manager of Maryland’s Roots Market, a two-store natural and specialty grocer that carries an array of Fair Trade products such as chocolate, bananas and fruit juices. Roots recently began working with the eco-conscious Guayaki, Sebastapol, Calif., producers of organic and fairly traded yerba mate. “This is a company that is making a difference,” notes Laur, who points out Guayaki’s efforts to reforest 200,000 acres of South American Atlantic rainforest with native mate forests, and create more than 1,000 living wage jobs by 2020.


The Fairer Fruit
From apples and avocados to lychees and papaya, the Fair Trade fresh fruit market is expanding, coming from 16 countries such as Argentina, Costa Rica, Mali, Morocco, Senegal and South Africa. “The fresh fruit market is still growing in the U.S., with the most growth in bananas,” says Barrow. For instance, Oké bananas (with Ecuador-based El Guabo Cooperative as their main source) are being introduced across the country, from New England to the mid-Atlantic states to, soon, the West Coast.

Fair Trade sales are still a small part of total volume for many producers, but hopes are high that the segment will strengthen. “We have a lot of social projects we’d like to carry out with the Fair Trade premium to improve the lives of our producers and the people that work in our packing shed. We hope to see Fair Trade sales grow,” says Juan Bernardo Soto Durán, general manager for FRUSSI, a small mango producer co-op in southern Sinaloa, Mexico. Frussi is part of Grupo N6, an association made up of 37 farmer members who produce high-quality, Fair Trade Tommy Atkins mangos for export from Brazil.


Flavoring the Fair Trade Market
According to Barrow, Fair Trade sugar is becoming a widely accepted ingredient among suppliers. “It is not only sold by itself, but found in baking mixes, baked goods, ice cream and bottled beverages,” she notes. Some companies are incorporating certified sugar in their jams. For example, adding to its popular existing line of spreads and conserves, Crofter’s Organic® recently unveiled its new Superfruit™ Spreads made with Fair Trade sugar. Food for Thought, an Honor, Mich.-based supplier of jams, syrups, salsas and other condiments, also uses Fair Trade sugar and locally grown fruit in its jam.

Beyond sugar, consumers can support struggling farmers worldwide by purchasing Fair Trade black pepper, white pepper, ginger, nutmeg, cinnamon, turmeric, clove, cardamom, rosemary, hibiscus, thyme and just about any other spice that inhabits their kitchen cupboards. Frontier Natural Products Co-op, Norway, Iowa, will be introducing the first Fair Trade spices in the U.S. in the coming months.

In addition, Eco-Agri Research Foundation (EARF), a nonprofit organization that promotes organic and sustainable farming methods among small-scale farmers in India, has been working with vanilla growers in Karnataka and Kerala states since 1994. EARF has been instrumental in assisting four farmers’ associations to achieve Fair Trade certification.


Wine Hits Mass-Market Retailers
Fair Trade Certified wines from South Africa, Argentina and Chile launched in the U.S. in the final months of 2008 and have proven to be hits. Several award-winning varietals can now be found in chain retailers such as Target and Sam’s Club at price points that make them accessible to entry-level consumers. “We feel that this success is a combination of education about the challenges faced by workers as well as the interesting new grape varietals that these countries produce,” explains Barrow.

Fairhills, a world-known Fair Trade brand, is sourced from all three countries. The Fairhills initiative improves the living and social conditions of more than 1,300 producers. Varietals include Chardonnay and Merlot, both from Western Cape, South Africa; and Malbec and Cabernet Sauvignon, both from Mendoza, Argentina.

Stellar Organic Winery, situated north of Cape Town, is the largest producer of organic wines in South Africa. Award-winning collections include Stellar Organics Sauvignon Blanc and Pinotage, Sensory Collection Cabernet, Merlot and Shiraz, and Heaven on Earth Natural Sweet Wine, which won the IWSC 2007 Silver Best in Class award.

Last April, Biagio Cru and Estate Wines announced the U.S. arrival of the Fair Trade Ecologica line, produced by Argentina’s La Riojana. The line will include a Torrontes/Chardonnay blend as well as a Syrah/Malbec blend. “Ecologica combines a quality and affordable wine with a social conscience and healthy living,” says Darren Restivo, marketing director of Biagio Cru and Estate Wines.

As for what’s to come with Fair Trade, Barrow notes that more certified products such as olives, olive oils, nuts, honey and a number of fruits and products incorporating these ingredients are being rolled out to meet U.S. market demand. |SFM|

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