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CAFEDIRECT: Onward and upward: Increased profitability and social impact, new chief executive for CAFeDIRECT; Strong Numbers in a Challenging Year(M2 PressWIRE Via Thomson Dialog NewsEdge) RDATE:05022008 Cafedirect plc, the UK's largest and longest running Fairtrade hot drinks company, today announced pre-tax profits for the year ended 30th September 2007 of GBP705,000. These rose from GBP48,000 in 2006. The company's performance was buoyed by its best year ever in the out-of-home sector (restaurants, cafes, businesses, venues), which at GBP4.6 million grew by 33% compared with 2006 and now represents over 20% of the company's total revenues. Total turnover grew 3% to GBP22.3 million for the financial year ended 30th September 2007. In the retail sector, although Cafedirect's sales slowed 4% to GBP17.0 million, distribution reached an all-time high, and the company's market share for hot drinks equates to 34%, 32%, and 14% respectively of the UK's Fairtrade coffee, tea, and drinking chocolate markets. The company also fortified its position for the year ahead, increasing its net cash balance by GBP1.3 million to GBP3.1 million. Financial returns are only a part of Cafedirect's impact. The company works directly with 39 grower organisations across 13 developing countries, directly benefiting the lives of 1.4 million people. This year the amount paid to coffee, tea, and cocoa growers over and above the market price totalled nearly GBP1 million, bringing the total for the past three years to more than GBP4.3 million. Additionally in 2007, and unique to Cafedirect, the company invested a further GBP0.6 million in its Producer Partnership Programmes (PPP) and these investments attracted, without additional cost to the company, matched funds of GBP0.7 million, meaning growers benefited from a total investment of GBP1.3 million. Above and Beyond ? the Power of Partnership Cafedirect PPP programmes are aimed at strengthening the grower organisations, widening their influence, and making them more sustainable in the longer term. The breadth and depth of these bespoke programmes extend well beyond the scope covered by Fairtrade premiums, including mitigating the effects of climate change and supporting business and quality development. In 2007, Cafedirect, amongst other things: -- Initiated a three year public private partnership with the German Technical Cooperation (GTZ) to support small farmers in analysing the threats of climate change to their specific environments and identifying viable adaptation strategies -- Supported its 162,007 African grower partners in developing community-led and cooperative-specific environmental initiatives to increase energy efficiency and reduce deforestation -- Worked directly with tea growers to introduce an improved pricing structure to provide additional support when market prices drop. As a result, the company increased its minimum price by 8%, and, including the Fairtrade premium, paid on average 47% over and above market prices This groundbreaking business model means that working directly with farmers, Cafedirect receives the pick of the crop. This quality is reflected in Cafedirect's status as the Most Recommended Brand in the UK and its awards for quality and taste. In a survey by Millward Brown, March 2007 A Change at the Top The company also announced Penny Newman will be stepping down as Chief Executive on 10 March 2008. Ms. Newman, who has been CEO for nearly a decade and has spearheaded Cafedirect's pioneering business model, was awarded an OBE in January's New Year's Honours for her services to ethical business. In her time Cafedirect has grown from a niche category to the 6th largest coffee brand and 7th largest tea brand in the UK. "Penny's service to Cafedirect has been invaluable, and her leadership has been instrumental in our success," said Krishna Gopala, Chairman of Cafedirect. "Thanks to Penny's passion and drive our foundation is solid and we are well positioned for further growth." Anne MacCaig will take the helm as Chief Executive effective 11 March 2008. Ms. MacCaig's 20 years of FMCG experience includes Persil, Dove and as Marketing Director has led the strategic turnaround of Ribena, including the "95% of Britain's Blackcurrants Make it Campaign". This has included working in partnership with UK blackcurrant growers and The Wildlife Trusts. "Anne has a passion for growing brands, and her desire to positively impact the world and her history of supporting farmers makes her skill set and experience complementary to the ethos and business needs of Cafedirect," Mr. Gopala said. "I'm tremendously excited to be joining one of the most pioneering and respected brands in the UK," Ms. MacCaig said. "Cafedirect applies the highest quality standards to everything they do. Their coffee, tea and cocoa ranges are uniquely delicious and produced through innovative business partnerships with growers. Consumers expect these high standards and Cafedirect is perfectly positioned to meet their expectations" - Ends - For further information please contact the Cafedirect Press Office on 020 7490 9542 or email [email protected] "Through their Producer Partnership Programme, Cafedirect has gone out of the box to show there is a lot more that can be done than just Fairtrade. The extra effort made in building farmer and management capacity in a bid to sustain supplies of tea has been received by us farmers and factory staff with appreciation. It has placed Cafedirect in a class of its own which is worthy of my respect." Julius Ethang'atha, Tea Grower, Michimikuru, Kenya "When our cooperative first began working with Cafedirect over five years ago I didn't believe there would be any change in our lives. Now I am sitting here today feeling very happy. The growers are paid better prices and receive training. Cafedirect is not like the others. I did not believe anything would change but now it is changing." Emiliana Aligaesha, Coffee Grower, KDCU, Tanzania. Awards -- Teadirect, Cafedirect's tea brand, is nominated for Best Hot Beverage in the 2008 Branded Excellence Awards -- In a survey of 2,000 global brands Cafedirect ranks No. 1 as the most recommended brand (Source: Millward Brown, March 2007). -- Cafedirect's Machu Picchu gourmet coffee beans were awarded a Gold Star in this year's Great Taste awards. -- Combining taste, price, ethics, and availability, Teadirect tops the Fairtrade Tea category: New Consumer Magazine, February 2008 Notes on Cafedirect plc: -- Growers play a key role in every aspect of Cafedirect, from governance to product design. They own shares in the company and have 2 directors on the Board. -- Together with our grower partners, we share a passion for producing the best quality teas, coffees and drinking chocolate. Our latest is the premium Teadirect Gold, now available at Waitrose. -- Cafedirect was founded in 1991, predating Fairtrade in the UK by three years and was the first coffee brand to carry the mark. With a turnover of GBP22.3 million (2006/07), we are the UK's largest 100% Fairtrade hot drinks company, the 5th largest coffee brand and 7th largest tea brand. -- Cafedirect's work has directly improved the lives of 1.4 million people in developing countries by partnering with nearly 300,000 smallholder growers through 39 grower organisations across 13 developing countries. -- Over the last 3 years the company has invested on average 60% of profits in the businesses and communities of its grower partners. -- Supporting sustainable development, Cafedirect pioneered a minimum price for tea growers, and reward growers for quality and organic produce. -- Our range of delicious 100% Fairtrade coffees, teas, and hot chocolate is available in major supermarkets, independent retailers, Oxfam shops, Traidcraft mail order, and the Cafedirect online store, as well as thousands of food service venues, such as hospitals, universities, schools and hotels. They are also available in Ireland, Hong Kong, and Singapore. -- To learn more about Cafedirect visit www.cafedirect.co.uk. ((M2 Communications Ltd disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected])). Copyright ? 2008 M2 Communications Ltd. |