On-the-field Experiences Fairtrade, the growing awareness of Italian chains

Fairtrade,

the growing awareness of Italian chains

After more than 25 years of collaboration with large-scale distribution labels in Italy, the international certification takes stock of relationships and initiatives during the most difficult year of all times.

As much as 436 million euros is how much Italians spent on products with at least one Fairtrade certified ingredient last year in Italy. In addition to fresh fruit, such as bananas and pineapples, coffee, chocolate, breakfast cereals, bars, cookies, dried fruit, cut flowers, cotton clothing and many more can also be labelled with Fairtrade Marks. This has emerged from the annual report by Fairtrade Italia ‘Fairtrade’s response to the challenges of change’, a snapshot of global certified fair trade in 2020. Thanks to Fairtrade sales in Italy, farmers' and workers' organizations in Asia, Africa and Latin America have received over 3 million euros to be invested in technical and productive development, such as the purchase of fertilizers or other products and machinery for agriculture, as well as, for the construction of classrooms and school facilities, clinics, and so on. In the large-scale distribution channel, Fairtrade products have consolidated their presence thanks to its historic collaboration with Coop Italia, which, in 2020, doubled the assortment compared to the previous two years. Moreover, the discount chains that are Fairtrade partners have shown great dynamism and growing commitment: Lidl, In's Mercato and Aldi have collectively added dozens of new products. Other brands in the retail sector are working to widen the range of products offered and increase sales. We spoke about it with Thomas Zulian, FairTrade Commercial Director.

Can you take stock of 2020 with respect to your collaboration with Gdo? 2020 was a difficult year for consumers and companies in our country. However, our partners had the courage to further bet on Fairtrade, significantly expanding their product supply. This makes us happy and confirms that a proposal of strong social value is increasingly in line with the demands of a growing number of citizens, and an opportunity for companies to develop their business.

Which supply chains have grown the most? 2020 was a difficult year for consumers and companies in our country. However, our partners had the courage to further bet on Fairtrade, significantly expanding their product supply. This makes us happy and confirms that a proposal of strong social value is increasingly in line with the demands of a growing number of citizens, and an opportunity for companies to develop their business.

And which ones have struggled? Bananas are still the top product by volume. But after growing steadily over the last 15 years in terms of volume, for the first time in 2020 recorded a -15% drop equal to 13,500 tons of sales. The losses in the away-from-home industry were not offset by the increase in sales in retail. However, the first 2021 forecasts give us hope for a return in the current year to the figures recorded before the crisis.

How do you think the relationships with distributors are? Sensitivity for people and the environment is in some distributors’ DNA, others are catching up by quickly changing attitudes, while others see it as an empty word. The collaboration is going well with the first two ‘categories’, both with the historic brand and with the FSI Mark, which, being so handy, has favored the use of Fairtrade raw materials: cocoa, for example, has been used in many recipes for products such as breakfast cereal, snacks, ice cream, cookies and many other references. In some cases, we have seen the conversion of entire lines of PLs. This has significantly expanded the range of Fairtrade products in distribution, making them easier to find for consumers, something we’re very proud of.

What chains have you established the closest/most effective relationships with? The first Fairtrade certified coffee was in our market more than 25 years ago thanks to the still fruitful collaboration with Coop Italia. Since then, we’ve pursued our mission to improve the living conditions of those who work in the fields by entering into partnerships with most PL brands, such as Conad, Selex, Carrefour, Despar, Pam, Lidl, In's Mercato, Aldi and others, exceeding 2,500 certified references. We’d say we’re on track.

What is the Fairtrade Premium? In order to certify their products, companies using our brands commit to pay the organizations of agricultural producers, with no additional profit margin. That is the Fairtrade Premium, whose use is decided collectively by the workers. This year, Nova Coop, one of the cooperatives of the Coop system in the Piedmont Region, received the Fairtrade Best Partner 2020 Award for its commitment to the banana supply chain.l

Francesca Liistro, economic journalist specialising in food.

What does Fairtrade guarantee to the labels that choose to develop PLs together?

The creation of a PL with a solid and credible image is the result of a long, articulated and expensive process where the label risks it all to win consumer’s trust. Sustainability is increasingly becoming an essential element to gain trust. At the same time, when being a mere marketing gimmick with no real change, sustainability may also lead to a rapid and fatal loss of reputation. As Fairtrade, we’ve been working every day for more than 30 years to promote a model of sustainable agriculture through the most rigorous international economic, social and environmental standards. But, above all, we carry out strict inspections through an independent certifier and measure the environmental impact so as to make the change generated for people and the environment clear and traceable. Thanks to this way of working, we offer a simple and reliable tool that allows brands to put themselves out there in a serene way, a tool that responds to the growing demand for sustainability of those who buy in stores. In Italy, the Fairtrade Mark inspires confidence in 4 out of 5 consumers and is number one among ethical brands in this specific ranking (Nielsen, 2021).