Consumerism and altruism are finally making friends. Consumers want to feel like their spending is doing good in the world, and retailers are obliging. Recently we've seen not just high-end stores, but traditional retailers like Safeway, Kroger and Ahold making serious commitments to fair-trade sourcing.
The hospitality and restaurant industries haven't quite followed suit, however. Hotels were pioneers in conservation efforts, introducing energy- and water-saving programs before almost anyone else, observes Jennifer Gallegos, director of coffee for Fair Trade USA. "But they have been very slow to embrace fair trade," she says. "Very slow." The reasons aren't clear, but she says foodservice research firm Technomic will soon be conducting a study to find out more. Is it time for hotel and restaurant companies to start using fair-trade coffee and other products? Here's some perspective.
What is fair trade, anyway?
When you see a product labeled "fair trade," that means the farmers or workers who produced it are being justly compensated. But those two words also mean a lot more. Fair trade signifies that workers enjoy safe labor conditions; that they sell their goods directly to importers, when possible, through democratically organized groups or cooperatives; that they use sustainable (although not necessarily organic) farming practices, and that they're investing in their community.
The term "fair trade" is used worldwide — and improperly used, some contend, to describe products that really don't qualify. "Fair Trade Certified" means that a nonprofit group, such as Fair Trade USA, has independently examined a company's supply chain to ensure its products are adhering to these standards. "With fair trade, the money you spend on day-to-day goods can improve an entire community’s day-to-day lives," the group says.
But do consumers understand all this?
Yes and no. Consumer awareness has grown significantly in the last 10 years, Gallegos tells Hamilton Beach Commercial. About 55 percent of U.S. consumers are aware of the Fair Trade Certified™ label. She attributes this partially to the efforts of large national retailers who carry fair-trade products, such as Target, Dunkin' Donuts, Whole Foods and Sam's Club.
However, Gallegos says, "If you ask a consumer about their understanding, that's where it gets a little more complicated." In the early 2000s, people paid more attention to the plight of farmers in developing nations, she says, because coffee prices had plunged and farmers were starving. People bought fair-trade coffee as a way to help. However, Gallegos says, the public's attention has since shifted to other things, and "people tend to forget."
She has seen a recent uptick in public interest and awareness, thanks to companies such as West Elm, Patagonia and Honest Tea adopting fair-trade standards. They're bringing awareness to a new set of consumers, she says.
Why should hotels and restaurants serve fair-trade coffee?
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