Running under the Progresso brand, Oxfam plans to launch three outlets by the end of 2004 and have a chain of 20 within the next three years. The new chain’s espresso will be a premium quality fair trade blend of coffee beans from three co-operatives in Honduras, Ethiopia and Indonesia.
“Coffee growers will win three times with Progreso. They’ll be selling their coffee at a fair trade price; they’ll share directly in the profits and will also showcase their coffee to the UK,” said Chris Coe, Oxfam’s Trading Director and one of the originators of the Progreso concept.
The producer co-operatives will own 25% of the firm’s shares and 25% are being held in trust for projects in the wider grower community. Oxfam, which co-founded Cafédirect in 1991, will own the remaining 50% of Progreso.
Oxfam is partnering with Glasgow-based independent roaster, Matthew Algie, in the project. Both parties are providing initial funding of £50,000 for the Progresso chain, which will be a standalone operation. Sites in Scotland and the southeast are being investigated and concession partners able to provide suitable locations within existing retail operations, such as large bookstores, are being sought.
“This is a bona fide commercial venture,” said Wyndham James, managing director of Progreso, who led the development of a new Oxfam in Germany among his 20 years of experience with Oxfam. “We will be launching smart, contemporary outlets that provide consumers with fantastic coffee and help growers through ready-made retail outlets. Progreso will have a strong brand identity and its high quality coffee will be the cornerstone of its offering.
Fair trade coffee is the fastest growing sector of the UK coffee market. In 2003, consumers purchased 2083 tonnes of fair trade coffee from shops and supermarkets – an increase of 42% from 2002. Coffee shops sold 385 tonnes of fair trade coffee during the same period – an annual increase of 67%.
Oxfam is running an ongoing campaign for the large players in the coffee industry to increase the percentage of fairtrade products that they source.
For more information, contact Katie Abbotts, Oxfam, on 01865 312 334
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