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Forum NIL Nachhaltigkeit Im Lebensmittelhandel Forum NIL Nachhaltigkeit im Lebensmittelhandel Sustainability in Food Retailing A Comparison of Fair Trade in Selected European Countries Jasmin Baumgartl Ann-Kathrin Boderius Manfred Kiy Wiltrud Terlau Jana Voth Cologne University of Applied Sciences Faculty of Business, Economics and Law NIL Research Paper 1/2014 II Table of Contents Table of Contents .................................................................................................................... II Authors and Contact Persons ................................................................................................. III List of Figures ......................................................................................................................... IV List of Tables .......................................................................................................................... IV List of Abbreviations ................................................................................................................ V Abstract ................................................................................................................................. VII 1 Introduction .................................................................................................. 1 2 The Food Retail Industry in Europe ........................................................... 2 3 The Fair Trade System .............................................................................. 10 4 Development of Fair Trade Sales ............................................................. 19 5 Activities of Fair Trade Organizations ..................................................... 27 6 Conclusion ................................................................................................. 34 List of References ............................................................................................ 37 III Authors and Contact Persons This paper is part of the Forum Nachhaltigkeit im Lebensmittelhandel (NIL; Sustainability in Food Retailing) which is a collection of scientific papers dealing with various aspects of sustainability in the area of food retail trade. For further information on the Forum NIL the publishers, Prof. Dr. Manfred Kiy (Cologne University of Applied Sciences) and Prof. Dr. Wiltrud Terlau (Bonn-Rhein-Sieg University of Applied Sciences), can be contacted. The respective authors are responsible for the content of their own texts. Authors Jasmin Baumgartl, Cologne University of Applied Sciences Ann-Kathrin Boderius, Cologne University of Applied Sciences Manfred Kiy, Cologne University of Applied Sciences Wiltrud Terlau, Bonn-Rhein-Sieg University of Applied Sciences Jana Voth, Cologne University of Applied Sciences Contact Persons Prof. Dr. Manfred Kiy Prof. Dr. Wiltrud Terlau Cologne University of Applied Sciences Bonn-Rhein-Sieg University of Applied Sciences Faculty of Business, Economics and Law International Centre for Sustainable Tel.: +49 221 8275 3432 Development - IZNE E-Mail: [email protected] Tel.: +49 2241 865 410 E-Mail: [email protected] IV List of Figures Figure 1: Certification Systems along the Supply Chain in the Fair Trade System ..................14 List of Tables Table 1: Food and Non-Alcoholic Beverages Consumption Expenditures of Private Households in 6 European Countries 2008-2012 ..................................... 2 Table 2: Sales of Food and Near-Food Products in Retail and Wholesale Trade in 2012 ...... 4 Table 3: Market Share of Top Ten Food Retailers in 6 European Countries in 2012 .............. 6 Table 4: Number of Stores of Food Retailers in 6 European Countries in 2012 ..................... 8 Table 5: Shares of Total Sales Volume of Various Sales Channels in the Food Retail Industry in 6 European Countries in 2011 ............................................ 9 Table 6: Overview of Major Fair Trade Organizations and Participants in Selected European Countries.................................................................................17 Table 7: Fair Trade Retail Sales in 6 European Countries 2008-2012 ..................................20 Table 8: Per Capita Fair Trade Retail Sales in 6 European Countries 2008-2012 .................21 Table 9: Fair Trade Sales of Coffee in 6 European Countries 2008-2012 .............................22 Table 10: Fair Trade Sales of Tea in 6 European Countries 2008-2012 ..................................23 Table 11: Fair Trade Sales of Bananas in 6 European Countries 2008-2012 ..........................24 Table 12: Fair Trade Sales of Fruit Juice in 6 European Countries 2008-2012........................25 Table 13: Fair Trade Sales of Sugar in 6 European Countries 2008-2012 ..............................25 Table 14: Share of Fair Trade Products on the Per Capita Consumption of Food and Non-Alcoholic Beverages .......................................................................26 Table 15: License Fees by Labeling Initiatives in 6 European Countries in 2012 ....................28 Table 16: Key Indicators of National Labeling Initiatives in 2012 .............................................30 Table 17: Trust and Recognition of Fair Trade in 2011 ...........................................................32 V List of Abbreviations £ British Pound € Euro ACP African, Caribbean and Pacific Group of States ADDF Au-delà des Frontières AG Aktiengesellschaft ARGE Arbeitsgemeinschaft zur Förderung der Weltläden ASRO Association Romande des Magasins du Monde BAFTS British Association of Fair Trade Shops and Suppliers BV Besloten vennootschap e.V. eingetragener Verein EESC European Economic and Social Committee EFTA European Fair Trade Association EU European Union FLO Fairtrade Labelling Organizations FLO-CERT Fairtrade Labelling Organizations for Social Certification FTUSA Fair Trade USA g gram GbR Gesellschaft bürgerlichen Rechts GEPA Gesellschaft zur Förderung der Partnerschaft mit der Dritten Welt mbH GmbH Gesellschaft mit beschränkter Haftung IFAT International Federation of Alternative Trade IFOAM International Federation of Agricultural Movements Inc Incorporated ISO International Organization for Standardization kg kilogram KG Kommanditgesellschaft Ltd Limited Company M million n.d. no date NEWS Network of European Worldshops VI OHG offene Handelsgesellschaft PFCE Plate-Forme pour le Commerce Equitable plc Public Limited Company SAS Société par Actions Simplifiée sqm square meters UK United Kingdom V.O.F. vennootschap onder firma WFTO World Fair Trade Organization WL-DV Weltladen-Dachverband VII Abstract This paper gives an overview of the development of Fair Trade in six European countries: Austria, France, Germany, the Netherlands, Switzerland and the United Kingdom. After the description of the food retail industry and its market structures in these countries, the main European Fair Trade organizations are analyzed regarding their role within the Fair Trade system. The following part deals with the development of Fair Trade sales in general and with respect to the products coffee, tea, bananas, fruit juice and sugar. An overview of the main activities of national Fair Trade organizations, e.g. public relation activities, completes the analysis. This study shows the enormous upswing of Fair Trade during the last decade and the reasons for this development. Nevertheless, it comes to the conclusion that Fair Trade is still far away from being an essential part of the food retail industry in Europe. 1 1 Introduction The Fair Trade movement realized a remarkable development during the last decade. The degree of recognition of the Fair Trade idea and the FAIRTRADE certification mark increased enormously as well as the sales of Fair Trade products. However, the strong growth of Fair Trade is not documented well, providing a major barrier for potential new market entrants. This paper attempts to shed some light on this dynamic sector of the global economy. In this study, the Fair Trade organizations and performance within six European countries will be compared. The United Kingdom and the Netherlands are the countries with the longest European tradition of Fair Trade. Furthermore, Germany and France will be analyzed, as they are the largest economies on the European continent. The analysis is completed by Austria and Switzerland, countries with a relatively small population but a high per capita consumption of Fair Trade products. The analysis refers to the years 2008 to 2012. For this period, (more or less) comparable data for all six countries was available. Unfortunately, the data quality was not always satisfying. On the one hand, there are no official – internationally comparable – statistics of Fair Trade. The published data is mostly based on annual reports of Fairtrade Labelling Organizations (FLO) International and their national partners. On the other hand, calculations of the national figures (sometimes) refer to different methods. Insofar, comparisons of the activities in the six European countries are not always directly possible. This study consists of four parts. At first, the food retail industry of the six countries is analyzed under the aspects sales volumes, market leaders and structure of the markets. In the second part, the organization of Fair Trade worldwide and on the national level is described. Part three deals with the sales and consumption of main Fair Trade food products in the considered countries: coffee, tea, bananas, fruit juice and sugar. The last part focuses on the national labeling organizations and their
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