FAIRUSA TRADE CELEBRATING20 YEARS 1998-2018

1 I FAIR TRADE USA I 2018 ANNUAL REPORT fair price.” be achieved if our coffee ispurchased at a a better future for our children. All this can our farms andour communitiesandprovide in harmony with nature. We want to invest in continue producing ahighquality product just alittlebitmore for our coffee, we can “If consumersin the UnitedStates pay message forourthis followers: visited hiscommunity inearly 2019, hehad cooperative innorthernRwanda. When I and proud member of the Abakundakawa generation coffee farmer, father of four, Jean MarieBikamumatuba, 58, isa third- their quality products. don’t needcharity—just a fair price for improve quality, andproved that farmers organized cooperatively, worked to invested in their communities. They sustainable agricultural practices and Fair Tradefarmers who transitioned to at the core of this new model were for responsible sourcing. Of course, Trade products andreward companies those first consumers willing tobuy Fair Our model would have collapsed without farmers worldwide. viable organization generating impact for partnerships primedus to becomea putting our sealon their products. These buying Fair Trade Certified™coffee and signed on to the “crazy” notion of Exchange andGreen Mountain Coffee grant dollars.Early partnerslike Equal sustainable we neededmore than For Fair Trade USA to become confidence. grant enabledconviction to become betting onus with our first grant. That office without the Ford Foundation There wouldn’t have beenaoneroom Trade products America. inNorth global movement. Fair Trade USA of isnowtheleading certifier Fair California. withcoffeeWhat started and conviction hasgrown into a be me) brought an idea from Nicaragua toaoneroom officeinOakland, More than twenty years ago, an idealistic, young do-gooder (that would FRIENDS, DEAR With deepestgratitude, makes the Fair Trade difference. or you’re justleaningin,YOU Whether you’ve been with us20 years value. One with you inmind. based onmutualbenefit andshared companies, consumers,and the earth, servesfarmers,that One workers, combine sustainability andprofitability. One that helpsmainstream companies revenue andis financially sustainable. driven nonprofit that generates earned different kind of organization—a mission- We establishedFair Trade USA asa capitalism. challenge the status quoandre-imagine the everyday heroes who joinedus to aroundthe world families without over 20 years or reached over 1million USA simply wouldn’t have survived Trade work, grow, and thrive. Fair Trade Everyone did their part to make Fair Founder &CEO Founder Rice, Paul

are what

3 I FAIR TRADE USA I 2018 ANNUAL REPORT sustainable income. food security andprovide additional farming project inorder to create better improvehopes to community the women’s children to attend university. Shealso on Fair Trade terms will enableallof her the additionalincome from selling tea attend when oldenough.Shehopes that exceptschool for the youngest whowill seven children andallof them are in been farming tea since1999. Shehas Kajoina Jenifer andher family have Th F Leader F I V Ind Ce M Where We Work amily Farmers Dear Friends Contents of Table P 20 H The F Im M T t Started withaDream air Trade USA Donors inancials able ofContents rogram Spotlight isionary Philanthropyisionary ow We Work ovement Building ission, Vision andModel lebrating20 Years Years ofFair Trade USA Impact ank you pact ustry Partnerustry Fishing Communities F F F actory Workers armworkers air Trade Difference ship

42 40 38 36 34 32 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2

5 I FAIR TRADE USA I 2018 ANNUAL REPORT members. cooperative coffee for fellow where shebrews cooperative site Homacho Waeno is shown at the of coffee farmers, 20 anddaughter Abebitu Nigussie, succeed in the globalmarket. deliverneed to resourcesproducers and that thetools,training, educate consumers;enroll new brands andretailers; and transactions between companiesand their globalsuppliers; of Fair Trade products inNorth America. We audit andcertify Fair Trade USA, anonprofit organization, is theleadingcertifier Model products and vote with their dollars for a better world. and affordable for allconsumers tochoose Fair Trade Certified™ profit – willbecome thenorm. We envision a time whenitiseasy with purpose–companies that combinepeople, planet, and working conditions andaliving wage. We believe that business sustainably. We envision aday when all workers enjoy safe them to stay on the land,keep their kidsinschool, and farm all farmers deserve a fair price for their harvest that enables Our vision forFairis the future Trade for All. Webelieve that Vision farmers,around workers,the world. familiesand eliminates poverty andenablessustainabledevelopment for business, consciousconsumption andshared value that Fair Trade USA is buildinganinnovative modelof responsible Mission Model and Vision Mission,

7 I FAIR TRADE USA I 2018 ANNUAL REPORT $400M $600M $300M $500M $200M $100M generated four dollars inimpact. market andmovement, we have in growing theFair Trade For every dollar we have invested Investment: ReturnSocial on $0M CUMULATIVE FINANCIAL BENEFIT TO PRODUCERS (USD): (USD): PRODUCERS TO BENEFIT FINANCIAL CUMULATIVE 1998

20 COMMUNITY DEVELOPMENT FUNDS 00

20 02

2004

20 06

YEAR 20 08

20 10 MINIMUM GUARANTEED PRICE

20 12

workers. and to farmers higher income guarantees a certification that independent only is the Fair Trade $610 million 20 14

20 16

20 18 Our impact significant is CONSUMER AWARENESS IN2018 BEGAN IN1998 CUMULATIVE FINANCIAL BENEFIT TO FARMERS AND WORKERS SINCE WE TOTAL NUMBEROF BUSINESSPARTNERS IN2018 NUMBER OF NEW BUSINESSPARTNERS IN2018 NUMBER OF FAIR TRADE CERTIFIED™ PRODUCERS WORLDWIDE NUMBER OF COUNTRIES WHEREWEWORKOF NUMBER CUMULATIVE FINANCIAL BENEFIT TO FARMERS AND WORKERS IN2018 46 countries 60% $610 million $105 million 1,250 companies 120 partners 1.6 million

9 I FAIR TRADE USA I 2018 ANNUAL REPORT • • • • • projects, including: in anarray of vital grassroots development In 2018, communitiesinvested their funds thousands ofcommunities we serve. is oneofthekey drivers ofimpact inthe unique feature oftheFair Trade model, Community Development Fund, a together howtospend thefunds. The there, thefarmers and workers decide back tothecommunity oforigin.From Development Fund, which goes directly small premium into aCommunity sold, thebusiness selling itpays a For every Fair Trade product Certified™ Difference Trade Fair The

other needs R A conservation R Nutritional pr water infrastructure Schools, healthclinics,r evolving loan funds to supporthousingand eforestation andenvironmental dult education andskillsdevelopment ograms for children 36% oads, andclean members globally are women. of elected Fair Trade Committee his remote, mountain community’s greatest He’s beenamember of the COOPERANDES Fair Trade, we have created and theentire community.” four, isa third-generation coffee producer. co-op inColombiasince1987. Hebelieves important for maintaining Reginberto Serna,a61-year-old father of and help usget our coffee a road maintenance fund that benefits our farmers our community tolots of high qualityand earning a better price.a better Thanks to economic opportunities to market faster. That’s Better roadsBetter can open Reginberto SernaReginberto need is for better roads. COLOMBIA “

DevelopmentFund. Without Latha Maheshwari, a38-year oldmother his future and for thefuture have beenable tokeep him two years. She sharedtwo that the working She years. happy to have found the BestitchKnits this support, we would not of two, works hard to give her children factory, aFair Trade Certified™apparel My son, Gautam, received a promising future. Shehasheldjobs environment issafer, the benefits are factoryshe’s where been workingfor in school. I’m hopeful for an academicscholarship factory means factory I can take through theCommunity better carebetter ofmy family. Working ataFair Trade in several factories inIndiaandis of allour families.” greater, andsheishappier. Latha Maheshwari INDIA “

families inmy community.” computer center, agrocery Committee, works in the tomato seedling seedling Committee, worksin thetomato section for Wholesum Harvest inSonora, Fabiola Lauro, 33,amother, farm worker, scholarship program, and invested our Community Development Funds ina in improving thelives of healthcare services. I’m Trade. We have abetter work environment and most farmworkers. We so proud toplay apart and the president of her Fair Trade store,a asoccerfield, it is to be part ofFairit istobepart I realize howspecial more support than more support than Fabiola Lauro MEXICO Mexico. “

11 I FAIR TRADE USA I 2018 ANNUAL REPORT We Work We How rigorous Fair Trade standards. meeting products while Grow andmanufacture Workers Farmers and

market partners. standards andsell to Fairwith Trade Ensure compliance Holders Certificate development projects. the workforce andmanages farmers and workers that represents Democratically-elected group of Fair Trade Committee Trade premium. and pay the Fair sell certifiedproducts Purchase, label,and Partners Market families andcommunities. ofneeds theiraddress the the premium inprojects that Farmers and workers invest Community farmers and workers.farmers livelihoods for sustainable practices and Support ethical Consumers

for families. stewardship isessential for improving livelihoods protect natural resources. Soundenvironmental implement sustainableproduction practices and to grow organically. We require producers to agrochemicals andoffer incentives for farmers Our standards prohibit useof the mostharmful Environmental stewardship. leading to better community development results. a voice in the workplace and the community, standards. Our modelgives farmers and workers are able to ensure compliance with Fair Trade Through workertraining,and weengagement Empowerment. and theirfarmers families. outcomes allsupportsustainablelivelihoods for and sustainableagricultural practices. These productivity, product quality, crop diversification, price for their harvests. Frequently, they reinvest in relationships with U.S. buyers, andearnabetter empower themselves,directform trading Fair Trade helpssmall farmers organize and Income sustainability. housing, andhealthcare. greatest needs,suchas water, education, by farmers and workers in their communities’ Fair Trade premium, which in turn isinvested skills andself-confidence. Companiespay a worker engagement and training programs build benefits, and workplace healthandsafety. Our Fair Trade standards helpimprove wages, Individual well-being. andcommunity 13 I FAIR TRADE USA I 2018 ANNUAL REPORT CUMULATIVE FINANCIAL BENEFIT TO PRODUCERS (USD) $400M $600M $300M $500M $200M $100M $0M Impact Trade Fair of Years 20 1998 Foundation. first grant from Ford California. Receives doors inOakland, USA) opensits (nowFair Trade TransFair USA 1998

Association ofAssociation America. at the Specialty Coffee coffeeCertified™ Fair Trade Launch of 1999 20 00

Ashoka Fellow. Rice named an entrepreneurship, In recognition of social tea. Certified™ Launch ofFair Trade 2001 20 Economic Forum. entrepreneurshipby World Honored forsocial cocoa. Certified™ Launch ofFair Trade 2002 02

Paul awards Ford Foundation in grants andPRIs. 2003 20 nearly $3million Certified™ bananas.Certified™ Launch ofFair Trade 2004 04

Entrepreneurship. Skoll Award for Social Paul Ricereceives the 2005 Receives Award Capitalistannual Social years. 2006 for fourconsecutive Fast Company’s products hits Trade Certified™ sales of Fair Annual U.S. billion. 2007 20 06

$1 wine andhoney. Certified™ Launch of Fair Trade 2008 20 08

flowers, its name to Fair Trade USA. certification program. Launch of apparel TransFair USA 2010 COMMUNITY DEVELOPMENT FUNDS 20 10

Trade for All Announces its United States. Fair Trade city in the Chicago becomeslargest double impactby 2015. 2011 changes large commerciallarge farms. Tradefarmworkers to on Extends benefits of Fair 2012 20

12 Fair vision to

Green Mountain Coffee coconut from the Philippines. fromcoconut the Launch of Fair Trade Certified™ coffeeCertified™ for the 3rd year ina row. world’s largest purchaser of Fair Trade 2013 $10 Million challenge grant Bob andChristineStiller announcea Certified™ seafood. Launch of the world’s first Fair Trade support Fair Trade for All initiative. 2014 20 14

MINIMUM GUARANTEED PRICE $2 million Foundation grants Rockefeller seafood certification. 2015 is the is the Certified™ farm Certified™ FirstFair Trade Harvest in Arizona. States: Wholesum United 2016 20 to expand 16

of the Consumer recognition seal reaches 67%. 2017 to Fair Trade ahead. impact in the decade accelerate growth and in technologyaim to Strategic investments in the 2018 20 18 15 I FAIR TRADE USA I 2018 ANNUAL REPORT MILLION FAMILY MEMBERS. DIRECTLY IMPACTING AROUND 5 GLOBAL FAIR TRADE MOVEMENT, SMALL-SCALE FARMERS IN THE 1 million OVERALL, THERE ARE OVER Community Development Fund. providedare services that through the receives training, tools, andother support she joined the cooperative. Shealso earnings have becomemore stable since cooperative since2014. Shesays her been amember of the Kokowa Gayo at her farm in Aceh, Indonesia.Shehas Ibu Suslaini,39, picks coffee cherries $100M $40M $80M $60M $30M $50M $90M $20M $70M $10M $0 2013 TOTAL FINANCIAL BENEFIT 2013-2018:$340million IMPACT ON SMALL-SCALE FARMERS SMALL-SCALE ON IMPACT 2014 2015 2016 2017 2018 Family Farmers Farmers Family Spotlight: Program protecting family ruin. complete farmers from of $1.60/pound. In today’s 90-cent market, this “floor price” is standards guarantee coffee farmers aminimum export price The positive financial impact of these efforts wassignificant. Our effects throughout thecoffee industry. benefitting thousands of smallholder farmers andsendingripple 100% of its Archer Farms coffee line to Fair Trade Certified™, Among the mostnotable announcements: Target isconverting veteran brands andretailers ramped up their commitments. As aresult, many new brands joinedour program in2018 while On the market side, we focus onindustry outreach andpromotion. implementing high-impactcommunity development projects. Fund, farmers receive higher andmore predictable income while the Fair Trade minimumpriceandCommunity Development management, anddevelop climate changeresilience. Through farmers boost productivity, improve quality, strengthen cooperative cocoa, sugar, and coconut.Our producer supportserviceshelp commodities inLatin America, Africa andpartsof Asia: coffee, Our family farmer program prioritizes growers of four key communities have beenhithard. for coffee and cocoatotheequationand farming change. Add historically lowcommodityprices challenges, from volatile global markets toclimate small-scale family farmers stillfaceimmense movement. While much progress hasbeenachieved, Family farmers are oftheFair theheart Trade 17 I FAIR TRADE USA I 2018 ANNUAL REPORT farmworkersand their families. been significant, already benefiting almost 400,000 produce improvements. The positive financial impact of these efforts has protection from discrimination, and workplace health andsafety disability benefits, access topotable water, better housing, from increased wages, overtime pay, health insurance and As aresult, farmworkers at homeandabroad are now benefiting impact assessments. and promotion, new farm onboarding, farmworker training, and investments indeveloping new standards, industry outreach our successfulcapitalcampaign, we were able to make key Trade home” andstartcertifying farms in the U.S. Thanks to Moreover, we made the unprecedented decision to “bringFair Central America. and vegetables, focusing onmigrant farmworkers inMexico and standards in2012 and launcheddozens of new Fair Trade fruits In response to this high-impactopportunity, we evolved our farms andharvested by migrant farmworkers. fruits and vegetables. These products are largely grown onlarge supermarkets for a year-round supply of Fair Trade Certified™ marketplace supported this vision due to growing demandby model calledus to expand our model to farmworkers. The farmworkers from our benefits. Our vision of amore inclusive Fair Trade certification, apolicy which systematically excluded Historically, large-scale commercial farms were not eligible for rural communities. Migrant farmworkers are thepoorest ofthepoorin Farmworkers Spotlight: Program $10M $4M $8M $6M $3M $5M $9M $2M $7M $1M $0 2013 TOTAL 2014 IMPACT ON FARMWORKERS PREMIUM 2013-2018:$41.4million 2015 2016 2017 are migrants. ofall farmworkers 36% and Mexico, U.S.In the 23, harvests Fair Trade peppers at Divemex in Certified Yasmin Guadalupe Aispuro Sandoval, Culiacán, Mexico. ™ organic bell 2018 19 I FAIR TRADE USA I 2018 ANNUAL REPORT Target Barn Pottery West Elm J. Crew Athleta prAna Patagonia partners: Leading thousands of milesaway. some of whom have traveled from for visiting parents of workers, storage lockers andaccommodations community kitchenspace,personal herself, includingestablishment of a to supportmigrant workers like Komil hasadvocated for programs serve on the Fair Trade Committee. and was electedby her peers to worked at the factory for five years at Pratibha Syntex inIndia.Shehas Komil Baror, 24, works asa tailor $4.0M $3.0M $4.5M $5.0M $0.5M $3.5M $2.0M $2.5M $1.0M $1.5M $0 2013 TOTAL IMPACT ON FACTORY WORKERS 2014 PREMIUM 2013-2018:$9.9million 2015 2016 072018 2017 Factory Workers Factory Spotlight: Program environmental impact. safety andhealth,reduce harmful discrimination andharassment, improve wages andbenefits, prevent workplace other standard to improve workers’ launched in2010, go farther than any Our rigorous Fair Trade factory standards, doesn’t go far enough. workers died, the prevailing auditmodel Rana Plaza factory fire, when1,100 But as the world learned from the 2013 audits, aimedat improving conditions. In recent times, brands required factory reputation for “sweatshop” conditions. gave the garment industry abad women. Historically, worker exploitation people worldwide, 75%of whom are The apparel sector employs 60million Fair Trade market. fastest-growing segment ofthe Apparel and homegoods are the home goods. leader inethically sourced apparel and is now poised to become the market ofthese workers areFair women. Trade empowering over 80,000 workers. Most factories in 13countries, protecting and In 2018, we worked with 56certified flung factories. visibility into the actualconditionsin far- engagement, givingusmuchgreater protocols includedeep worker Our training, auditing,andcertification benefits, scholarships,andhousing. fund daycare centers, healthcare Fair Trade premiums are helping workers 21 I FAIR TRADE USA I 2018 ANNUAL REPORT late 2019. surrounding environment, shouldseecertifiedproduct hit themarket in aims to improve the lives of workers on fish farms whileprotecting the highly-respected Aquaculture Stewardship Council. This initiative, which In 2018, we launchedour aquaculture program incollaboration with the Half of global fish consumption comes from farmed fish, or aquaculture. since the program’s inception. Trade andhave received $1.7 millioninCommunity Development Funds of Europe. Over 3,000 fishermen and workers are benefiting from Fair skipjack tuna are available for consumersin the UnitedStates andparts Alaskan salmon,Mexican shrimp, New England scallops,andMaldivian meet rigorous Fair Trade standards. As of 2018, Fair Trade Certified™ in five countries and trained hundreds of small-scale fishersin howto Since then, we have expanded certification tonine wild-capture fisheries Our first pilot was acooperative of 116 yellowfin tuna fishersinIndonesia. health, education, clean water, andincomediversification. pays apremium back to fishers for important community investments in worker safety, andrequire sustainable fishing practices. The industry also fill this void. Our standards safeguard against trafficked labor, improve In 2014, we launched the world’s first Fair Trade seafood program to communities. gave insufficient tothelivelihoods attention offishing for fisheries focused onenvironmental challenges and worldwide. Historically, however, sustainabilityprograms sector isestimatedtoemploy some37millionpeople According totheUnited Nations, thesmall-scalefisheries Fishing Communities Spotlight: Program $400K $600K $300K $500K $200K $700K $100K $0 2013 2014 TOTAL IMPACT ON FISHING FAMILIES PREMIUM 2015 2013-2018:$1.7million 0621 2018 2017 2016 make abetter living.So far, he skipjack tuna off BuruIsland, AND THEIR FAMILIES ARE Indonesia. Hestarted fishing yellowfin tunain2007. Umar Umar Pabolia, 35, pullsina said hejoined the Fair Trade program in2014, hoping to is pleased with the results. FISHERMEN, WORKERS, ALREADY BENEFITING FROM FAIRFROM TRADE’S NEWEST PROGRAM. 3,000 OVER 23 I FAIR TRADE USA I 2018 ANNUAL REPORT C ANAD EL GU MEXICO A

A SA US TEMALA LV A COS ADOR TA ECUADOR RIC P ANAMA BELIZE A HONDURA NICARAGU CHILE COLOMBIA HAITI PERU ARGENTINA S BOLIVIA A DOMINICAN REPUBLIC GRENAD P BRAZIL ARAGU A AY D’IVOIRE COTE SPAIN GHANA CONGO RW AFRIC SOUTH AND UGAND EG A A YPT BURUNDI A KENY We Work We Where MALAWI ETHIOPIA T A ANZANIA MAURITIUS MALDIVES P AKIS TA N INDIA LANKA SRI NEPAL SOCIAL, ENVIRONMENTAL,SOCIAL, AND WE ENABLE TRANSFORMATIVEWE THAILAND 46 COUNTRIES ECONOMIC IMPACT IN CHINA VIETNAM INDONESIA PHILIPPINES GUINEA P NEW APU A

25 I FAIR TRADE USA I 2018 ANNUAL REPORT Universities in the UCsystem. Berkeley, oneof seven Fair Trade student andcampaignleader at UC Joselyn Ruiz,isanundergraduate universities, including Texas A&M and Arizona State University. their strategy became a model for student leadersat other large They continue to grow the movement on their campus,and becoming the largest Fair Trade University in the country in2016. After three years of persistent advocacy, UCLA celebrated Trade resolution. sourcing andengage the student senate to passastrong Fair these students were able to ensure Fair Trade product Certified™ of the core principlesof our movement–building relationships– Manager for HousingandHospitality Services.By following one persistence, the students enrolled akey ally–the Sustainability the 22diningoutlets oncampus. After a year of organizing and launched their campaign to get Fair Trade products Certified™ into In 2013,students at University of California-Los Angeles (UCLA) country. 2018, we hadover 350active grassroots campaigns around the served in these institutions to Fair Trade Certified™products. In They create direct impact by converting the food andbeverages States. These campaigns gobeyond simply raising awareness. universities, schools,and congregations across the United advocates to launchandgrow campaignsin their towns, We provide tools, resources, andleadershipsupport for these purchasing power. grassroots movement, awakening U.S. consumers to our Fair Trade advocates andambassadorsare buildingapowerful agency totheworld’s consumers. social movement thatbringsstrength, hope, and For us, Fair Trade isnot justamarket—it isalso a Building Movement 27 I FAIR TRADE USA I 2018 ANNUAL REPORT 20 Years 20 Celebrating allies andsupporters who have madeour impactpossible? hours. What better, more joyful way to thank all the amazing concert that hadour guestssinginganddancinguntil the wee and activistMichaelFranti rocked the house with aprivate Certified™ ingredients. To complete thismagical event, musician Chef Marcus Samuelssonand featuring deliciousFair Trade The evening also featured aspecialdinner curated by renowned mission and movement over thelast 20years. extraordinary contributions toour Fair Trade USA 11 individuals and organizations who have made Valetta asour guest serving emcee, we honored community. With fashion model and actress Amber the world –a microcosm ofour global Fair Trade media, celebrities, activists, and farmers from around includingattended, business leaders, philanthropists, Studios in Tribeca, New York. Over 350special guests and awardsparty ceremony inOctober 2018 atSpring Fair Trade USA celebrated its20thanniversary witha Whole Foods Market supporters and award winners Amber Valetta helped Keurig DrPepper Skoll Foundation Ford Foundation Anniversary us celebrate our 20th Franti andactress Anniversary instyle! Hugh Jackman Michael Franti Musician Michael at the20th Merling Preza Visionary Honest Tea Bob Stiller Patagonia West Elm event: 29 I FAIR TRADE USA I 2018 ANNUAL REPORT the earth. for the consumers,andgood for are good for the workers, good the sealstands for products that Certified™ seal.They trustthat are seeking the Fair Trade Increasingly, consumers These are justafew ofour1,250 make theFair Trade market business partners that help and mission possible. Partners Industry

31 I FAIR TRADE USA I 2018 ANNUAL REPORT Our donationisachallenge not only to theorganization, but alsotoother donors and investors out there looking For many years, Keurig Green Mountain hassupported for atangible way toshift sustainable trade from niche the Fair Trade movement becausewe believe thatour to norm. We want tobuild momentum around this highest qualitycoffees comefrom coffee-growing communities withahealthy qualityoflife.” increasingly important work. Bob and Christine Stiller Christine Bob and “ Philanthropy Visionary have had aninvaluable impactonour organization’s journey. His brilliant businessmind,hugeheart, warmth and collegiality In 2014, Bobaccepted the invitation to joinour Board of Directors. broaden the availability of Fair Trade Certified™products. deepen consumer engagement to increase market demandand of farmers and workers, innovate our certification model,and extraordinary giftishelping usbuild the entrepreneurial capacity challenge grant to the Fair Trade for All capitalcampaign. Their investors inFair Trade USA. Most recently, they gave a$10million Bob andhis wife Christineare alsogenerous philanthropic coffee in the world, adistinction they have maintained ever since. coffees. In2011, they became the largest purchaser of Fair Trade of the first roasters in thecountry to offer Fair Trade Certified™ in makingFair Trade USA what itis today. In2001, they were one As oneof our earliest businesspartners,KGM played ahugepart make theFair Trade visionpossible. business brand and reputation, and much more to (KGM), hasinvested personal timeand money, Stiller, chairman emeritusofKeurig Green Mountain and advocates. SinceFair Trade USA’s early days, Bob USA asbusiness partners, donors, board members, Individuals and organizations invest inFair Trade 33 I FAIR TRADE USA I 2018 ANNUAL REPORT Thank you for sharingand supporting this journey. ofand workersmillions farmers worldwide. and sustainabledevelopment. The future isnow better andbrighter for evolving andscaling our market-based model for poverty alleviation investments inpeople,product and technology. Thanks to you, we are which successfully concludedinlate 2018, we are making critical Thanks to the generous support we received for our capitalcampaign, • • • • • scope to achieve impactat scale. that we believed would helpusinnovate our modelandexpand our would unlock growth andimpact.Five high-impactinitiatives emerged needed to invest strategically inemerging market opportunities that As amarket-based approach to sustainabledevelopment, we knew we billion by 2020. farmers, workers, and theirfamilies toa cumulative $1 dream was simple: dramatically increase impact for 2014 withan ambitious goal ofraising $25million.Our We launched theFair Trade for Allcapital campaign in with a Dream Dream a with Started It

consumer activation. monitoring andevaluation, stronger certification systems, and Str certification. aquaculture workers through the world’s first Fair Trade seafood Sustain enjoy the protections andbenefits of Fair Trade. Enable can builda future free of abuseandpoverty. Bring certifica can tap into vital markets while improving quality andproductivity. Support small-scale engthen the Fair Trade model with investments in technology, factory workers, such as those in the garment industry, to fishing communities by improving thelives of fishersand tion to farmworkers both at home and abroad so they family farmers in the Fair Trade movement so they at the company’s Fair Trade Agrocoex employee Jenny Ante, with hisclassmates DeverlynJordan Tigas USA supportednursery. Ante (forefront), sonof 35 I FAIR TRADE USA I 2018 ANNUAL REPORT Donors Trade Fair STILLER CHRISTINE D N A B O B SPIVACKALLAN SCHAFER BETTY ADRIANA ODAK ANDPERRY JON FREEMAN FOUNDATION CORDES INITIATIVE BLUE HAVEN AMIN HIRNA TARANG AND Council President’s JACK C A J D N A Michael Farnsley Robin Evitts Enilo Lanre Eichstadt Sarah Karen Eaton Evangeline Dugbenu Duda Kathy and Chris Beth Doolittle Collins Carly GeoffreyCobden Troy Christensen Woody Chittick Yi-Huan Chan Carpenter Aaron Dana Cardona Chris Caenepeel Sandy Burkholder Thomas Bullock Nadene Brouwer Undranay Broussard Boyd Bella Jenifer Botch Ross Boone Berlik Elizabeth Talia Bellia Jamie Baulier Bauhaus Mark and Caroline Barrow Irene and David Adarkar Aditya Gifts Individual Ryan Little Ryan David Lipton Benjamin Lerner Lee Katharine Connie Lazoration Rick Larson Guido Lambelet Lucy Koelle Keller Victoria Ira Josephs Jonas Gary Jackson Robert Jennifer Isailovski Irgens-MollerKirsten Kimi Hosoume Herz Henry Olivia Herbert Hedahl Mary Bradley Harzman Peter Handy Gosenpud Jerry Galeria Jessica Furnish Ksenia Anthony Fuller Wendy Frieder Sean Foote Finch Katherine Michael Ferrier Andrew Ferren Ken Redding Ken Ron Rankin Randall Sarah Preiksat Suzan Phillip Prado Rebecca Posey Howard Pittman Sherri Michael Perman Joseph Palen Leanne Ogata-Frobb Noparstak Barbara Janet Nezhad Band Nass Marjorie Pamela Mullen MulderLauren Downing &Jennifer Mlinac Matt Miller Patrick Diane Meyer Simon Merriam Julie and Fred Erin McKenney Anthony Marx David Martin Brian Mackowiak John Mackey Mack Lauren LynchBruce Tobing Lumban Kristina Ira Jonathan Lowell Declan Wyrick James D. White Kathleen Wallace Valerie Viterbi VargasCarlos TysonLaura Jordan Trinh Steinhoffer Sara Eli Steier Curtin Julia Starmack Elaine Spaull Kelly Soria Vicki Slater Daniel Shively David Sherman Derek Shendell Stephen Sellers Schulte Karen George Scharffenberger Jessie Scanlon Ingrid Sassenhagen Sanghvi Siddharth Ruff Larry Paul Rice Amazon Smile Foundation GlobalAdtalem Education LLC 8451 Support Foundation and Corporate Wholesum Family Farms The Walton Family Foundation The Kroger Foundation The Kroger Company Target Corporation Roasters Coffee Organic Strongtree Speakable SERRV International Fund Venture New Moss Adams LLP Foundation for the Americas Corporation Mitsubishi Lake Champlain Chocolates Honestly pHresh Greendale Middle School Good World Solutions Germeshausen Foundation Coop Frontier Natural Products FLG Partners America Fairtrade Educational Testing Service Multiples deServicio Tarrazu y Caficultores de Cooperativa Conrad N. Hilton Foundation Services Dining Educational Chartwells Catholic Relief Services Company Bon Management Appetit Bewley’s America North Causes Benevity West the of Bank Teas Arbor Taleo Salesforce.org Goulston and Storrs Google EnvironmentalCalifornia Associates Aramark Services In-kind Wildfish Wholesum Harvest Wholesome Sweeteners Elm West Vosges Chocolate TCHO Chocolates Sunspire World Sun Spectrum Road Saffron Tea Numi Chile Naturipe Naturipe Farms Co Marich Confectionery Lake Champlain Chocolates Kroger/Simple Truth Honest Tea Hain Group Celestial Gotham Greens Gallant International Fyffes Flor de Caña Dole Seafoods Pacifico Del Roasting Brooklyn Anova Tuna Eco Alter In-kind Gifts Trade cooperative inGuatemala. Mayan coffee grower andone of the leadersof the CODECH Fair Isabela Torres, 48, isaPopti 37 I FAIR TRADE USA I 2018 ANNUAL REPORT Leadership **AS OF AUGUST 2019 Ricardo Crisantes James D. White Sherri Pittman Pittman Sherri Liesel Pritzker Pritzker Liesel BOARD VICE CHAIR VICE BOARD DIRECTORS FOUNDER AND CEO AND FOUNDER Robert Stiller Robert Nezhad Band Robin Evitts Robin OF O D R A O B Larry Ruff Larry BOARD CHAIR Simmons Paul Rice Paul Howard Janet

Andrew J. Ferren, Esq. Aishetu Fatima Dozie Aishetu Siddharth Sanghvi Ronnie Robinson Ronnie Aaron Carpenter Aaron Scharffenberger Michael Perman Michael David Sherman David Johann Zueblin Johann Olivia HerbertOlivia Angela Pelaer Angela Carlos VargasCarlos ADVISORY Ron Cordes Ron Sean Foote Sean COUNCIL George George CHIEF DEVELOPMENT OFFICER DEVELOPMENT CHIEF CHIEF INNOVATION OFFICER INNOVATION CHIEF CHIEF MARKETING OFFICER MARKETING CHIEF CHIEF OPERATING OFFICER OPERATING CHIEF CHIEF IMPACT OFFICER IMPACT CHIEF MANAGEMENT Bennett Wetch Bennett Anna E. Banks E. Anna FOUNDER AND CEO AND FOUNDER Mark Gunton Mark Mary Hedahl Mary Mary Ostafi Mary CHIEF OF STAFF OF CHIEF Clay Brown Clay Paul Rice Paul SENIOR

In partnership, within reach. ideas, the ambitiousgoalof Fair Trade for All is your investment of time, money, skill,effort, and conscious consumer, donor, or volunteer. With worker, fisherman, advocate, company, this journey, whether you’re a farm or factory I invite you to joinusin the next stepsalong workers, fishermen, businesses,andconsumers. bring the benefits of Fair Trade tomore farmers, We have auniqueopportunity before us—to with Fair Trade USA. atforefront the opportunitybe of to that tide continues to riseandI’m honored to have an and more consciousconsumers.It’s a tide that the riseof more consciousbusinessleaders celebrating for Fair Trade—I’ve experienced executive—the same two decades we’re During my two decadesasacorporate for profit, butbusiness withapurpose. promote consciouscapitalism—not justbusiness me to live both of those values by helping to community. Beingpartof Fair Trade USA enables me astrong work ethic andcommitment to In fact, it was my parents who instilledin endeavor asBoard Chair for Fair Trade USA. But I think they’re mostproud of my newest Juice. And my parents were always pleased. brands suchasCoca-Cola,Gillette, andJamba fortunatebeen I’veto work for well-known wanted a job that would make my parents proud. For aslongIcanremember, I’ve always , D R A O WHITE D. B JAMES E H T CHAIRMAN OF FROMLETTER Chairman of the Board D. White, James

39 I FAIR TRADE USA I 2018 ANNUAL REPORT NET ASSETS LIABILITIES AND NET ASSETS AND LIABILITIES CURRENT ASSETS TOTAL LIABILITIES and NET ASSETS NET and LIABILITIES TOTAL TOTAL NET ASSETS TOTAL LIABILITIES TOTAL LIABILITIES CURRENT TOTAL ASSETS ASSETS CURRENT TOTAL Unrestricted Total Restricted Total Accrued Lease Incentive Lease Accrued Payable Notes Liabilities Current Notes Payable, current portion current Payable, Notes Revenue Deferred Liabilities Accrued Payable Accounts Other Current Assets Current Other Equivalent Cash and Cash Grant Receivables, long term Receivables, Grant Deposits net Equipment, and Property Expenses Prepaid Term Short Receivable, Grants Receivables Other Fees and Service 2018 Statements Financial $11,759,269 $8,440,907 $985,546 $7,455,361 $ 3,318,362 $111,125 $978,088 $2,229,146 $121,912 $191,229 1,485,842 $ $430,166 $ 11,759,268 $295,000 $50,450 $410,229 $11,003,589 $378,086 $1,044,276 5,161,160 $ $150 $4,419,918 EXPENSES REVENUE Financials Financials Fundraising Administrative and General Program TOTAL EXPENSES TOTAL SUPPORT AND REVENUE TOTAL Other Donations Kind In Contributions and Grants Fees,Services net 2018 Revenue and Support $ 20,981,677 $ 1,899,749 $ 2,849,834 $16,232,094 $19,245,940 1,371 $ $ 571,002 $ 3,757,675 14,915,892 $ EXPENSES REVENUE 77% 77% 3% 1% 9% 14% 19% 41 I FAIR TRADE USA I 2018 ANNUAL REPORT Thank you for buyingFair Trade Certified make the world abetter place. donors, supporters,andadvocates. Together we make Fair Trade. Together we Fair Trade dependsonallof us—producers, consumers,businesspartners, you Thank generous contributions toFair Trade USA. Fair Trade community. Thank you for your products. Thank you for a partofthe being health oftheconsumer.” family, for thehealthof the planet, andfor the For thehealthofmy Colombian organic Fair coffeeTrade grower, Certified™ WhyFair Trade? JOSE EDWAR MUÑOZ, a memberofCOSURCA “ ™

“ organic Fair Trade Certified Jose Edwar Munoz, Colombian grower, amember of COSURCA. ™ coffee 43 I FAIR TRADE USA I 2018 ANNUAL REPORT FAIRTRADECERTIFIED.ORG

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