Can Fairtrade buck the UK recession?

An encouraging story in The Grocer this week suggests that sales of Fairtade might hold up reasonably well - despite the severity of the downturn in consumer spending in the UK.

I had assumed that sales of organic and Fairtrade products might suffer in this downturn, given that their prices tend to be on the high side and there is plenty of evidence that retail consumers are flocking to the value segments.

However, for Fairtrade, consumers seem to be sticking with their principles. According to the Grocer:

UK Fairtrade sales rose 43% to £700m in 2008, according to Fairtrade Labelling Organisations International (FLO), while sales went up by an average of 25% in 15 countries surveyed. Growth for 2009 is expected to continue at 10%-15% this year, according to FLO chief executive Rob Cameron, who cited new GlobeScan consumer research that indicates shoppers will not abandon their beliefs during the recession.

The article claims that,  in the UK, almost half of consumers claim to be ethically active.  Their challenge is to find a broader range of Fairtrade products which they can then support with their consumer spending.  Interesting, then, that the Fairtrade portfolio may soon be joined by gold and fish!

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