The next question was, which supermarket chain would be the most
accessible?
On the face of it, the Co-op supermarket seemed like a good choice since
their current promotional platform emphasized the ethical nature of the
whole organization, which they were able to reinforce through the histori-
cal roots of the Co-operative movement. The unique appeal of Cafédirect
would complement this positioning very well. However, it emerged that
the Co-op’s response was coloured by plans to launch their own range of
fairly traded products. Furthermore, the younger, ABC1 consumers crucial
to success do not do much shopping at Co-op supermarkets, so the target
group could not easily be accessed through Co-op outlets.
The supermarket group eventually selected for the 1992 product launch
was Safeway. Not only does Safeway have the right consumer profile, built
through an association with ethical consumerism over a number of
years, it also has a reputation for supporting organic food and fair trade
initiatives.
The choice of Safeway as the point of market entry had other advantages
too. In Scotland, where the store group planned to test market Cafédirect,
they have a single distribution depot. Furthermore, the Beverages Buyer
was sympathetic to Cafédirect’s cause and was willing to give help and
guidance on matters such as delivery scheduling, tailgate heights and the
division of responsibilities between supermarket and supplier. As Equal
Exchange is also based in Scotland, Lorna Young was able to build rela-
tionships with Safeway managers on a day-to-day basis from her
Edinburgh head office. These relationships were to prove invaluable to the
success of the launch.
By the middle of 1996, the brand was stocked by all major British
supermarkets and had achieved a national market share of 3.1 per cent
(Table 3.2.2). This was a remarkable achievement in a market that is tra-
ditionally image-led and which usually requires multi-million pound
The supplier and alliance market domain 205
Table 3.2.2 Manufacturer’s value share of the ground coffee market, 1996.
Source: IRI Infoscan, 12 months to May 1996.
*Paulig acquired Allied Lyons’ ground coffee business in March 1994.Kraft General Foods 15%
Sara Lee 14%
Paulig (inc. Lyons Tetley*) 13%
Lavazza 7%
Cafédirect 3%
Other brands 5%
Own label 44%
Total 100%