Paper Summary:

This paper examines fair trade as an attractive segment for Nescafe in particular and for Nestle as a whole. The paper notes that on a pragmatic level Nescafe Partners' Blend is a fair trade product without the Fair trade label. The paper then considers the conditions necessary for it for it to enter the market. On the surface, it hardly seems possible that such a battle could hurt Nestle.

From the Paper:

"Fairtrade is an attractive segment for Nescafe in particular and for Nestle as a whole. Purely on a pragmatic level, this is because the Nescafe Partners' Blend is a fair trade product without the Fairtrade label; for it to enter the market would therefore be to court a "competitive battle" (Mitchell 1). On the surface, it hardly seems possible that such a battle could hurt Nestle. After all, the so-called ethical instant coffee market is only $20 million (Mitchell 3), a very small fraction of Nestle's global revenues. However, the true risk goes far beyond issues of market share, or..."

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