Oxfam to launch its own Fairtrade coffee shops…
Oxfam is to take on Starbucks and Caf‚ Nero with the launch of a new Fairtrade coffee shop chain, Progreso.
Progreso aims to launch three outlets by the end of 2004 and have a chain of 20 within three years.
Progreso's USP will be its partnership with coffee grower co-operatives in Honduras, Ethiopia and Indonesia, which will own a 25% stake in the business. A further 25% will be held in trust for projects in the wider community, alongside Oxfam's remaining 50%.
The new concept is a joint venture between Oxfam and the UK's largest independent coffee roaster, Matthew Algie. Both companies will put up an initial £50,000 to launch the chain. More money is understood to be available from other sources for expansion.
Wyndham James, Progreso's managing director, said: "We definitely think there is room for us in the market. This is a bona fide commercial venture. We will be launching smart, contemporary outlets that provide consumers with fantastic coffee and help growers through ready-made retail outlets."
The first sites are expected to open in September and will be a mixture of concession and stand-alone outlets in and around London and in Scotland. The average price of a coffee will be about £1.80. Food will also be available.
Competitor Starbucks reacted with cautious enthusiasm to the announcement, saying: "We are delighted that Oxfam GB is helping to continue to build the market and an awareness of the need for taking a long-term, sustainable approach to coffee sourcing."
