Starbucks doubles fair trade purchases: opportunities for new entrepreneurs?

This article, written by Nathaniel Whittemore and published October 29, 2008, examines how Starbucks is working to increase its Fair Trade involvement. Although this is just one example, it is important for consumers to examine which companies they support and what initiatives they support. Equally important for consumers is looking through publicity and judging how effective these initatives work for positive change.

Fairtrade.change.org’s Zarah published recently that Starbucks has just announced that they would be doubling their purchasing of Fair Trade Certified coffee to 40 million pounds in 2009, making them the largest purchaser in the world. Paul Rice, president and ceo of TransFair USA, said that "[this] initiative empowers consumers to make ethical decisions about the coffee they drink, and support the farmers that produce it."

Fair trade and ethical consumer products in general are providing one of the most fertile areas for social entrepreneurs, also. But, they face huge challenges moving from “niche” markets to mainstream. Perhaps the the “tipping point” for ethical consumption – whether its coffee, clothing, or anything – will come when consumers start looking at the shelves and asking where the sustainable, ethical, fair trade options are.

Starbucks has big coattails (read this Slate.com article about how Starbucks actually helps local mom-and-pop coffee shops) and this has the possibility of a major “mainstreaming” of fair trade. Maybe, rather than harming competitors with deep fair trade and organic products like Adina, it just increases the value of those other company’s brands.

Nathaniel Whittemore is the founding Director of the Center for Global Engagement at Northwestern University, which works annually with hundreds of students in dozens of countries around the world through curricular programs and student project incubation.