Nestlé won't comment on move into Fairtrade

News that Nestlé is on the verge of launching a Fairtrade coffee has been dismissed as speculation by the company.

An article in Marketing magazine claimed that Nestlé was planning its own Fairtrade coffee under the Nescaf‚ brand, after the company issued a statement to the magazine, which read: "Nestlé believe in a sustainable approach to coffee production and are committed to helping with the problems connected with low coffee prices."

The company would not be drawn on whether that meant a Fairtrade brand was imminent, and said: "We cannot comment on commercial speculation."

If true, the news would represent a major shift in policy for the Swiss firm. Although it is the largest direct purchaser of coffee beans in the world, which means it buys straight from co-operatives rather than through markets, those prices are still dictated by global market conditions.

In the company's own report, Faces of Coffee, it opposed Fairtrade, arguing that paying coffee farmers more than the market price would encourage them to produce more coffee in an already saturated market.

The Fairtrade Foundation expressed surprise at the article, and said: "We have had no formal approach from Nestlé regarding the use of the Fairtrade mark."