Sales of ethically sourced Fairtrade products in the UK have risen for the first time since 2013 as the Co-op gets ready to become the first supermarket to use only Faitrade cocoa in its own-brand products.
The boost in Fairtrade sales comes despite falling sales of ethically sourced tea and cocoa – and is driven by the increasing dominance of Fairtrade bananas. It follows declining sales in 2014 and 2015 when consumers were reining in spending in favour of cheaper alternatives.
In the UK, bananas are by far the most popular Fairtrade product. Their sales volumes increased by six per cent last year, according to new figures from the Fairtrade Foundation.
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Sainsbury's and Waitrose now only stock Fairtrade bananas, says The Guardian. The UK's biggest supermarket, Tesco, started stocking them for the first time last year.
Michael Gidney, the chief executive of Fairtrade, said: "We are in growth despite tough economic times and while the grocery market continues to be in disarray. There is a sense of businesses committing to Fairtrade backed by unstinting support from the public."
Falling sales of tea and cocoa were partly the result of "changing habits", says the newspaper. Consumers, particularly young people, are drinking less tea as the coffee craze continues.
Fairtrade coffee sales rose by eight per cent last year, with Lidl stocking it again after taking 12 months off and Starbucks launching a Fairtrade version of the Seattle Best Coffee label it delivers to offices and other businesses.
Co-op switches to Fairtrade cocoa
By the end of May, the Co-op will have completed a switchover to using only Fairtrade cocoa in its 200 own-brand chocolate products.
Brad Hill, Fairtrade strategy manager at the Co-op, said: "When we consider that demand for cocoa is set to rise by 30 per cent over the next three years alone, it is imperative that we keep moving forward with sustainability initiatives in order to shape this industry."
Premiums of £30m
The rising sales of 2016 will trigger about £30m in premium payments on top of the fair price already paid to producers for goods. These will be used for social development projects in developing nations that include Malawi and the Dominican Republic.
The Fairtrade Foundation was launched in the UK in 1992. It enjoyed year-on-year expansion in sales until 2014.
