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Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

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PactCoffee.com sells specialty coffee in the UK. For various reasons we choose not to be Fairtrade certified, despite sustainability being a critical consideration for our business. These slides were used to introduce our position ahead of a customer forum that helped to set our course for the next 6 months.

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Page 1: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

Ethical Sourcing in 2014Customer Forum

N.B. For accompanying presentation and discussion visit:

https://www.youtube.com/watch?v=RIcgVlV2MR0

Thursday, 31 July 14

Page 2: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

Quick Intro

• Why Now?

• Our Pact With Growers

• Why Not Get FT Certified?

• What Are We Planning?

• What Have We Missed?

• Open Discussion

Thursday, 31 July 14

Page 3: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

Why Now?

• Just began direct trade, aim 95% in 6 months

• We’re reaching a size where we can make a difference

• It matters to our customers

Thursday, 31 July 14

Page 4: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

Pact With Growers

• We will always store treat your coffee with the same love, care and attention that you have

• We will ensure you are paid more than the Fair Trade rate for your beans

• If we are successful, we will use our influence to make your lives better, not worse

- blog.pactcoffee.com, June 2013

Thursday, 31 July 14

Page 5: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

Why Not Get FairTrade Certified?

• The best coffee producers are independent (not part of a cooperative, which is prereq.)

• The auditing process is flawed. It was compelling when introduced, but not any more.

• It disconnects quality with value, which is not sustainable.

Thursday, 31 July 14

Page 6: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

So What’s Our Approach?

• Seedling stage at the moment - now is the time to contribute!

• 3 measures in place whilst we work out a lasting position...

Thursday, 31 July 14

Page 7: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

1. Pay more

• We will pay min. 125% of the Fairtrade rate for all our coffee, and publish what the actual percentage is on blog.pactcoffee.com

Thursday, 31 July 14

Page 8: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

2.Verify Previous Claim!

• The fact that we have paid more will be independently audited by KPMG.

Thursday, 31 July 14

Page 9: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

Big Data

• Work with SOAS to ROBUSTLY answer this question:

“Does paying a higher price to coffee farmers for specialty coffee lead to higher wages being paid

and, if so, to what extent?”

Thursday, 31 July 14

Page 10: Pact Coffee: Why we're not Fairtrade and how we're going to ensure we're still ethical

Questions/Comment

[email protected]/pactcoffee

+44 203 095 3975

Thursday, 31 July 14