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Case Title:

Cafédirect (A) : Brand with a Concience

Publication Year : 2005

Authors: Vasudha Aich

Industry: Food, Diary and Agriculture Products

Region:UK

Case Code: BBP0041B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Cafédirect Limited, UK’s pioneering Fairtrade coffee company had been founded in the year 1991. The company followed the Fairtrade business model that aimed at delivering quality beverages to consumers and a fair deal to growers in the developing world. The brand ‘empowered’ the consumers by giving them a role in promoting fair trade and also the farmers by paying them fairer prices and through developmental projects. The company had set up its Gold Standard Policy which guaranteed to always pay above the world price for coffee and to support the growers. The case talks about the Fairtrade business model and questions whether Cafédirect could become a successful brand, not just an altruistic one, while following the fair trade model.

Pedagogical Objectives:

  • Could discuss the Fair Trade movement in the US and Europe
  • Discuss whether conscience brings in more profit
  • iscuss how Cafedirect would proceed in the market with this strategy.

Keywords : Ethics, Corporate Social Responsibility, Fair trade, Hot Beverages in UK, Coffee Trade, Alternative Trading Orgs, Ethical Consumerism, Brands & Branding Case Study, Instant Coffee MKT in UK Free Trade, World Trade, Conscience Brand Tea & Coffee in UK, Speciality Coffee, Fair Trade Business Model, Cafedirect

Contents:

  • Emergence of Fairtrade Foundation
  • Coffee trade: Current situation
  • Cafédirect's Gold Standard Policy
    • Delivering a fair deal to farmers
    • Delivering quality products to consumers
  • Future Outlook

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