Have a (Fair Trade) break. Have a Kit Kat!
The news that Nestlé has decided to coat Kit Kat, which has been the UK’s favourite chocolate bar for as long as anyone can remember, in Fair Trade chocolate didn’t surprise us in CO3 world. In a refreshingly honest radio interview this morning, a representative of the company explained the bottom line. This decision is more about securing the company’s supply chain (cocoa beans from Ivory Coast) than a conversion to the Fair Trade cause. Still, a move that increases and secures the prices that farmers get in the developing world has got to be a good thing.
Another thought occurred to me though. A proportion of the UK chocolate market is already held by exclusively Fair Trade chocolate products such as those manufactured by Divine. Clearly these products are gradually losing their unique selling point. How about some chocolate that is free from palm oil and without hydrogenated vegetable fats? That would be a much healthier option for those who choose to eat chocolate, and a more ethical one too!
2 Comments
While Nestle should still come under scrutiny for all areas of their business practice, it is hard to argue that increasing and stabilizing producers’ incomes is a bad thing. However, correct me if I’m wrong, but I believe the market price of cocoa is actually higher than the Fair Trade price at the moment. The real test of Nestle’s and Cadbury’s commitment to the principles of Fair Trade (not just its branding potential) will be when the the market price for cocoa drops.
Furthermore, as Tim mentions, a danger of Fair Trade branding is that there is no distinction made between Fair Trade certified products, like Nestle’s, and producer owned brands such as Divine. The vast majority of profits from Nestle’s products are still held by the brand, whereas as in the case of Divine all profits are received by the producers. This distinction should be made clear to consumers by a Fair Trade Producer Owned Certificate or the like.
The Fair Trade Foundation website has a lively debate on this subject. See here.
One Trackback
[...] to coat a proportion of their Kit Kats in Fair Trade chocolate, discussed a few days ago in the CO3 blog, has raised an interesting point. It is clear that opponents of the company, such as the Baby Milk [...]