Britain's two biggest coffee roasters, Kraft Foods and Nestlé, are planning to launch their own ethically aware coffee brands.
According to a report in The Guardian, Kraft – producers of Kenco, Carte Noire and Maxwell House – plan to launch a new brand likely to be called Kenco Sustainable Development.
Under the proposals Kraft will pay farmers a 20% premium on green coffee beans. The current price of which is about 65 cents (35p) per pound. Companies operating under the Fairtrade certification are paid a flat rate of $1.21.
Kraft said the company was coming up with its own certification rather than seeking to gain Fairtrade certification because: "We believe the majority of our consumers are not willing to take the premium we have to charge if we were to convert to the Fairtrade system."
Fairtrade has complained that rival brands featuring their own certification would confuse the market. Deputy director Ian Bretman said: "When people suggest these initiatives are 'like Fairtrade', we have to point out that they are, in fact, not Fairtrade."
