Asda delists Fairtrade coffee duo

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Asda has delisted two pioneer brand Fairtrade coffee products and replaced them with own-label lines, reports The Grocer.

The retailer told the food industry weekly that it was delisting Cafédirect and Clipper instant coffees because they hadn’t met sales expectations. But it said it would continue with Percol instant coffee.

However, Cafédirect says its overall listings with Asda have actually increased, which it describes as a “fine achievement under difficult trading conditions”.

One coffee supplier speculated that smaller brands were finding it tough trading against multinational companies like Nestlé. “Sales are marketing driven. The instant coffee market is not price-driven — it is about brand awareness.”

0 Responses to Asda delists Fairtrade coffee duo

  1. Andy Good April 9, 2010 at 10:57 am #

    The Grocer (which first reported it) selectively reported the facts and failed to mention that cafedirect had extended its ASDA listing on roast and ground coffee which is a fine achievement under difficult economic conditions.

    The Grocer repeated statement is also simplistic. The coffee categories in multiples are planned and co-managed by the big brands who can then offer the multiple a category margin across Fairtrade certified and non Fairtrade products. A 100% FT brand like cafedirect cannot compete easily against that power to control margins still remaining in non Fairtrade supply chains. This will eventually reduce both competition and the surplus being re-invested with farmers to strengthen and empower their supply chains.

    It is well time for independent retailers and consumers to back the 100% FT companies in preference to big brand and distributer own-label FT which are supported by non fair trade buying practices.

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