London, UK: Cafédirect plc, the UK’s largest 100% Fairtrade hot drinks company, announced record results for the 2008 financial year. Cafédirect’s turnover, profits, and investment in the businesses and communities of its producer partners all reached their highest levels in the company’s 17 year history despite the major downturn in the global economy.
“I am happy with these results because they enable us to change lives and build communities even further,” said Anne MacCaig, Cafédirect’s CEO. “Our results show that consumers are not prepared to compromise on quality when it comes to their cuppa. It also demonstrates that doing business in a socially and environmentally responsible manner continues to matter.”
“Quality, in our products and our relationships, continues to be the key driver for our success,” said Jon Marlow, Cafédirect’s Head of Sales. “We work with our grower partners to get the best possible ingredients, and we work with our business partners to encourage consumers to support our more equitable way of trading” .
Turnover for the year totalled £22.34 million, slightly up on 2007, and profits were £901,000. Supply chain and environmental initiatives were key developments during the year, with raw materials and finished products transported more directly and efficiently. Quality was also recognised as eight different Cafédirect products won at least one Gold Star each in the Great Taste Awards, the highest total of any hot drinks company.
Cafédirect invested £658,000 in the businesses and communities of its grower partners through its unique policy of reinvestment, which supports all 39 grower organisations across 13 developing countries. Combined with the £707,000 raised by Cafédirect’s development partners Twin Trading and Imani, Cafédirect’s grower partners benefited by a total of £1.37 million, which was in addition to £886,000 paid above market prices.
Over the last five years, Cafédirect has invested more than £3 million in its grower partners, representing more than half of the company’s profits, and has paid more than £7.5 million above market prices for its raw materials.
“While many of us are feeling the crunch of the economy in the UK, it has been much worse for the majority of our grower partners,” said Wolfgang Weinmann, Cafédirect’s producer partner manager. “It has been tremendously satisfying to have increased our support during the tough times, which is exactly the point of our business model.”
“This has been a pioneering company in so many ways, for so long, for two reasons,” MacCaig added. “Firstly, because of our direct, long-term relationships with our grower partners, we get the best ingredients for our products. This is reflected in the quality of our drinks. Secondly, we have a passionate and growing support base of customers who are dedicated to our mission.”
Source: FML Public Relations
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