Fair Trade Certified™ Wine Frequently Asked Questions Where is Fair Trade wine grown? Wine from estates and/or small farmers organized in cooperatives in Argentina, Chile, and South Africa can be certified as Fair Trade. Twenty new producer groups gained Fair Trade certification in 2009, increasing the number of certified wine estates and cooperatives in the Fair Trade system to more than 60. Plentiful supply of conventional and organically grown Fair Trade grape varietals are available, including Cabernet Sauvignon, Carmenère, Chenin, Chardonnay, Malbec, Merlot, Muscat, Pinotage, Sauvignon Blanc, Syrah and more. The growers sell to registered wine cellars that produce high-quality wines, all under the Fair Trade standards. For a list of registered wine producers and importers in the Fair Trade system please email wine@ fairtradeusa.org. How can I sell Fair Trade Certified wine? Companies that wish to trade and manufacture Fair Trade Certified products must enter into a formal relationship with Fair Trade USA and/or the Fair Trade Labeling Organization: •Producers and importers sign a certification and licensing agreement with FLO and/or Fair Trade USA, purchase wine from a FLO registered producer, submit all packaging and marketing materials for approval, and submit quarterly reports on imports and sales. •Importers registered with TransFair USA pay a licensing fee of $0.10/750ml bottle imported. Why should my company offer Fair Trade Certified wine? There are thousands of vineyards and wineries around the world that produce uniquely flavorful wines. Developing origins such as Argentina, Chile and South Africa produce unique grape varieties and blends, yet farmers and workers in those wine producing countries also face economic, social and political challenges. It is difficult for producers to meet the market demand for highquality wine, and ensure safe and fair working conditions, when grape prices cannot cover the most basic costs of living. Small winegrowers in countries such as Argentina and Chile are often unable to compete with large estates and are susceptible to low market prices that do not generate enough income to meet their family’s basic needs. This limits their opportunity to improve farming systems, lowers productivity and threatens their livelihood. Hired workers on large wine plantations in developing countries are often not protected from labor abuses. For vineyard workers in South Africa, the legacy of apartheid has meant limited opportunities for economic advancement. The fundamentals of Fair Trade are economic, social and environmental sustainability. Fair Trade provides the protection of a floor price, so that producers do not have to sell their crop below their cost of sustainable production. The Fair Trade premium gives farmer or worker organizations the opportunity to invest in the future of their farms and communities. And Fair Trade standards provide a framework for farms to increase their environmental sustainability. How will Fair Trade Certified wine help my business? Consumer demand for socially responsible goods is rising. According to the Hartman Group, 76 percent of consumers consider environmental and social aspects when they make purchasing decisions. More than 50 percent of “ethical consumers” (who total 33 percent of Americans) are aware of and familiar with the Fair Trade certification. Fair Trade USA works with more than 800 corporate partners to audit and certify more than 6,000 products. Fair Trade products are offered at over 50,000 U.S. retail locations and involve key partners such as Sam’s Club and Whole Foods Market. Since 2003, Fair Trade Certified wine has had incredible success in European markets, where Fair Trade wine sales have grown 50 percent each year. In major retailers in the United Kingdom, such as Co-op, Sainsbury’s, Waitrose, Marks and Spencer, Tesco and ASDA, there are now more than 120 different Fair Trade Certified wines to choose from. This success of Fair Trade Certified wine is now being repeated in the United States. Fair Trade Certified wine was launched in 2008, and we saw immediate success with U.S. imports of Fair Trade Certified wine reaching 1.7 million bottles in 2009. With these volumes, U.S. Fair Trade wine sales make up 10 percent of the global sales of Fair Trade Certified wine. With consumer recognition, retail pull and brand commitment, Fair Trade offers a rapidly-growing opportunity for buyers to make a profound difference in the lives of more than five million people in farming communities around the world simply by choosing to purchase certified products. 1500 Broadway, Suite 400, Oakland, CA 94612, +1 510 663 5260 www.FairTradeUSA.org Fair Trade Certified™ Wine Frequently Asked Questions What is the economic and social impact of Fair Trade on wine producing communities? Our unique commitment to fair prices and premiums for community development distinguishes the Fair Trade Certified label from other sustainability labels. Fair Trade wine growers are guaranteed a price that covers the cost of sustainable production. In addition, for every bottle of Fair Trade wine sold on the market, farmer groups and wine workers are guaranteed a premium for community development projects. Minimum prices and premiums for Fair Trade Certified wine grapes vary depending on country of origin: Workers on wine plantations in South Africa benefit from a special set of Fair Trade guidelines that support government mandated postapartheid economic empowerment programs. These programs are groundbreaking as previously disadvantaged workers can buy shares of at least 25 percent of the certified business entity through a government funded trust, which means a first time opportunity to land and business ownership. •Fairhills Project, du Toitskloof, South Africa— Premium funds have been invested to build preschools, purchase school buses and computers, and to establish scholarship funds for education and adult literacy programs. Plans are underway to buy a farm that will cultivate grapes for delivery to the cellar as well as operate as a guest house. A critical component of our system is a rigorous certification and audit process during which we verify that the Fair Trade price and premium reach producer organizations. Fair Trade USA conducts on-site audits of companies that offer certified products to ensure they are in full compliance with our standards. We verify the U.S. chain of If you have any additional questions on Fair Trade wine certification,please email [email protected] or visit our website: www.fairtradeusa.org. •La Riojana, Argentina—The Fair Trade minimum price that is guaranteed to small farmers who are members of the cooperative La Riojana in Mendoza, Argentina, has kept farmers on their land and has enabled them to further improve the quality of their grapes. The small farmer organization has used the premium to drill fresh water wells, establish infrastructure for building schools and lay the foundation for a hospital. How does Fair Trade USA ensure that wine grape growers and workers receive Fair Trade benefits? Our certification gives consumers the confidence that every purchase has a real impact in farmers’ lives. The Fair Trade certification model is designed and audited to ensure that equitable trade practices are enacted at every level of the supply chain. Questions? custody to make sure companies that display the Fair Trade Certified logo meet our strict trade standards. In 2009, Fair Trade USA audited more than 40,000 transactions between producers, importers and manufacturers. Annual inspections at the farm level are also conducted by FLO-Cert, Fair Trade USA’s international certification partner. FLO-Cert is an independent producer certification body and is the first and only ethical certification organization in the world to achieve the prestigious ISO 65 accreditation. How does Fair Trade wine protect the environment? Fair Trade’s strict environmental standards focus on the environmental health and safety of farmers and their families. Farmers must: •Protect water resources and natural vegetation •Promote agricultural diversification, control erosion, and forbid slash and burn •Restrict the use of pesticides and fertilizers •Ban the use of genetically-modified organisms (GMOs) •Properly manage waste, water and energy 1500 Broadway, Suite 400, Oakland, CA 94612, +1 510 663 5260 www.FairTradeUSA.org
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