Nestlé Controversial Alliance with Fairtrade


	Nestlé’s Controversial Alliance with Fairtrade In October of last year, Nestlé attempted a major PR coup by announcing that it was putting a Fairtrade endorsed coffee brand on sale in Britain. The Fairtrade mark is a seal of approval that indicates that in the opinion of the Fairtrade Organization, the small-scale producers of the food product in question have been paid a reasonable price by the multinationals which process the food into their own products. Baby Milk Action (IBFAN UK) was strongly dismayed by the announcement of Nestlé’s Fairtrade brand, which the group feels will damage the ongoing boycott campaign against Nestlé and will thus be detrimental to infant health. The problem lies in the widespread misapprehension of the meaning of the Fairtrade mark. Many, if not most, consumers believe that the mark amounts to an endorsement of the company as an ethical one. In reality, the mark is simply an endorsement of the one particular brand as ethically produced, and is not an indication that the company as a whole pays its suppliers fair prices. Roughly 200 farmers in El Salvador and Ethiopia benefit from contracts with Nestlé’s Fairtrade coffee brand, entitled Partner’s Blend coffee. Worldwide however, 3 million coffee farmers are dependent on Nestlé, none of whom are paid Fairtrade prices. In addition, Nestlé’s actions endangering the health of infants around the world have been well documented for almost three decades, and evidence of the corporation’s involvement in deadly anti-union violence in Latin America and the Phillipines is mounting. Baby Milk Action protested to the Fairtrade Organization that the awarding of a seal of ethical approval to a company with such a disgraceful ethical record could only be misleading to the public and would hardly contribute to the welfare of the impoverished people of the world. Given Nestlé’s refusal to change any of its pre-existing harmful policies in various aspects of its operations, the marketing of a Fairtrade brand appears less a commitment to human rights than a cynical PR move to draw attention from its dubious record. While Fairtrade in the UK refused to be swayed on the issue, the Italian Fairtrade Organization Transfair recently announced that it would not award Nestlé a mark in Italy should the company attempt to market a similar brand there. In a written statement, Transfair justified its decision, saying that Fairtrade UK’s alliance with Nestlé “seems nothing more than a victory of the marketing policy of Nestlé, and not a concrete and real change of attitude.” The statement also noted strong contradictions in the Nestlé Fairtrade mark being awarded for the company’s activities in El Salvador, noting that "In *April 2003, in El Salvador* , Nestlè closed a factory and refused to negotiate the terms and conditions of the closure with the local trade union, SETNESSA (Sindicato de Empresa de Trabajadores Nestlé S.A.)." Ultimately, Nestlé’s Fairtrade venture illustrates the company’s unwillingness to commit to human rights, and its sophisticated ability to manipulate public opinion and even abuse non-profit organizations. The corporation seems to spend much more effort creating a positive image for itself through public relations ploys rather than through actually changing its actions. Nestlé will do whatever it can to maintain its current policies and profits, all the while assuring the public it’s changing for the better. With thanks to Mike Brady at Baby Milk Action. [ Return to What's New! Page ] For further information on the Nestlé Boycott please click here.

Nestlé’s Controversial Alliance with Fairtrade

In October of last year, Nestlé attempted a major PR coup by announcing that it was putting a Fairtrade endorsed coffee brand on sale in Britain. The Fairtrade mark is a seal of approval that indicates that in the opinion of the Fairtrade Organization, the small-scale producers of the food product in question have been paid a reasonable price by the multinationals which process the food into their own products. Baby Milk Action (IBFAN UK) was strongly dismayed by the announcement of Nestlé’s Fairtrade brand, which the group feels will damage the ongoing boycott campaign against Nestlé and will thus be detrimental to infant health.

The problem lies in the widespread misapprehension of the meaning of the Fairtrade mark. Many, if not most, consumers believe that the mark amounts to an endorsement of the company as an ethical one. In reality, the mark is simply an endorsement of the one particular brand as ethically produced, and is not an indication that the company as a whole pays its suppliers fair prices. Roughly 200 farmers in El Salvador and Ethiopia benefit from contracts with Nestlé’s Fairtrade coffee brand, entitled Partner’s Blend coffee. Worldwide however, 3 million coffee farmers are dependent on Nestlé, none of whom are paid Fairtrade prices. In addition, Nestlé’s actions endangering the health of infants around the world have been well documented for almost three decades, and evidence of the corporation’s involvement in deadly anti-union violence in Latin America and the Phillipines is mounting.

Baby Milk Action protested to the Fairtrade Organization that the awarding of a seal of ethical approval to a company with such a disgraceful ethical record could only be misleading to the public and would hardly contribute to the welfare of the impoverished people of the world. Given Nestlé’s refusal to change any of its pre-existing harmful policies in various aspects of its operations, the marketing of a Fairtrade brand appears less a commitment to human rights than a cynical PR move to draw attention from its dubious record.

While Fairtrade in the UK refused to be swayed on the issue, the Italian Fairtrade Organization Transfair recently announced that it would not award Nestlé a mark in Italy should the company attempt to market a similar brand there. In a written statement, Transfair justified its decision, saying that Fairtrade UK’s alliance with Nestlé “seems nothing more than a victory of the marketing policy of Nestlé, and not a concrete and real change of attitude.” The statement also noted strong contradictions in the Nestlé Fairtrade mark being awarded for the company’s activities in El Salvador, noting that "In April 2003, in El Salvador , Nestlè closed a factory and refused to negotiate the terms and conditions of the closure with the local trade union, SETNESSA (Sindicato de Empresa de Trabajadores Nestlé S.A.)."

Ultimately, Nestlé’s Fairtrade venture illustrates the company’s unwillingness to commit to human rights, and its sophisticated ability to manipulate public opinion and even abuse non-profit organizations. The corporation seems to spend much more effort creating a positive image for itself through public relations ploys rather than through actually changing its actions. Nestlé will do whatever it can to maintain its current policies and profits, all the while assuring the public it’s changing for the better.

With thanks to Mike Brady at Baby Milk Action.

[ Return to What's New! Page ]

For further information on the Nestlé Boycott please click here.