Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

The conflict and complexity of demand and supply

in Fair Trade product development.

Steve OsbornTechnical Manager

Ashbury Confectionery Ltd.

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

• Major manufacturer of confectionery.

• Tesco, JS, Asda, Co-Op, Waitrose, Duchy Originals, Gordon Ramsay…..

• Fair Trade licensees since 2003.– 2 products for Tesco.– 3 products for Co-Op.– More for 2006.

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

Challenges in NPD

• Fair Trade (FT) ingredients carry premium• FT seen as a mark of quality

– Not necessarily better.– Premium prices force them to compete with premium

products.– Demand driven by premium market.– FT drives non FT ingredients – (the spirit of FT….).

• Not quite main stream.

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

Demand by farmers

supply

The Development Supply/ Demand Chain

Demand

Pro

cess

ors

Retailer

Demand from social awareness

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

• Commodity FT supply is well established– Sugar– Cocoa – Coffee– Nuts– Honey– Vanilla

• Great for retail packs.– Becoming common place and competitive. - Bananas

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

Compound, industrial ingredients.

• Fair trade – ‘… must be used where available…..’ – Vanilla ?– Rum ?– Sweetened condensed skimmed milk ?– Marzipan ?– Praline paste ?– Coffee masse ?

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

Demand from Farmers

supply

Demand from social awareness

The New Fair Trade Supply/ Demand Chain

Retailer

Co

mm

od

ity

sup

plie

rs

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

Summary

• Demand for Fair Trade is in danger of outstripping supply of NPD

• Limitations of ingredients is the rate determining step limiting FT NPD

• Whilst quality is important – ‘premium’ perception inhibits full scope of NPD

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

Continuing the evolution of Fair Trade

• ‘FT’ ingredients –need to be more widely available. – Complex. – Compound.– and Industrial.

• Availability will create the demand….

Ashbury Confectionery - making life a little sweeterMaking life a little sweeter

Thank you….