The launch of Nestlé Partner’s Blend coffee is more likely to be an attempt to cash in a growing market or a cynical marketing exercise than represent the beginning of a fundamental shift in Nestlé’s business model.

Responding to the announcement today of the launch of Nescafe Partner’s Blend coffee, Benedict Southworth, Director of the World Development Movement (WDM) said:

“The World Development Movement was a founder member of the Fairtrade Foundation. WDM continues to support fair trade and believes that buying fair trade is a good way for consumers to express their commitment to justice for the world’s poor.

“However, the launch of Nestlé Partner’s Blend coffee is more likely to be an attempt to cash in a growing market or a cynical marketing exercise than represent the beginning of a fundamental shift in Nestlé’s business model.

“If Nestlé really believes in FAIRTRADE coffee it will alter its business practices, lobbying strategies and radically overhaul its business to ensure that all coffee farmers get a fair return for their efforts. Until then Nestlé will remain part of the problem not the solution.

“WDM believes that consumers will be able to tell if this turns into a cynical marketing exercise and will treat it with the same contempt that they showed for BP’s failed re-branding exercise.

“In the past Nestlé has made decisions based entirely on its bottom line ignoring the impact on small farmers in the developing world. Nestlé is one of only three multinational companies, along with Kraft General Foods and Sara Lee, that are thought to control some 85% of instant sales in developed countries. This gives these companies significant leverage in the international coffee market. But this leverage has not been used to give all coffee farmers a better deal by, for example pushing for supply control to regulate prices. Instead Nestlé and the other major coffee buyers have opposed such measures and have happily watched while coffee prices have plummeted. Further, they have reaped increased profits as the price of their processed coffee has not been reduced in tandem with the drop in world coffee prices.

“WDM has asked its supporters to boycott Nestlé products since as far back as 1998 based on the company’s attempts, contrary to World Health Organisation codes, to market its baby foods in developing countries, undermining breastfeeding. The addition of a FAIRTRADE coffee to their range does not change that. We ask our supporters to use their powers as consumers to choose companies that help rather than hinder attempts to end poverty.

“WDM supports the concept of FAIRTRADE coffee, both as a way for consumers to take an individual positive action in solidarity with the poor and as a way to introduce people to wider development issues. However, we do not believe that, on its own, it is a long-term solution to the global coffee crisis. Despite the impressive growth of FAIRTRADE in the UK and globally, recent estimates suggest that FAIRTRADE coffee accounts for only around 4 per cent of total UK coffee sales, and probably less globally. Voluntary contributions, rather than government imposed taxation, would not provide the necessary and predictable resources to fund social security, health and education here in the UK. In the same way, the voluntary contribution of purchasing FAIRTRADE coffee alone will not be able to achieve the fundamental shift that is required in global coffee markets. Government action is imperative to ensure all coffee producers get a fair return for their product.”