Big tick winner

Bettys & Taylors of Harrogate - Sustainable Coffee Sourcing Programme

John Lewis And Waitrose Supply Chain Award 2007 supported by the Department for the Environment, Food and Rural Affairs

By paying a fair price for coffee Bettys & Taylors are able to ensure a high quality product both now and in the future whilst farmers are able to achieve a decent standard of living and invest in the future of their businesses.

Processes

Bettys & Taylors is a traditional family business based in North Yorkshire, with six Bettys Café Tea Rooms and a tea and coffee merchants, Taylors of Harrogate. This case study focuses on Taylors of Harrogate coffee supply chain, made up of 49 different suppliers in 20 countries.

In the late 1990s the world coffee market was in crisis. The price of coffee dropped and coffee farmers all over the world were hit. Many tried alternative forms of farming and those who continued to farm coffee were reluctant to invest and therefore quality fell. 

In response to this situation Taylors of Harrogate launched their Sustainable Coffee Sourcing Programme. Having previously thought they were too small and too under resourced, Taylors realised that developing a sustainable way of buying was not optional: it was imperative for their long-term prosperity. The programme was built on three pillars: building direct personal relationships with the growers; maintaining quality, not only in the end product, but throughout the process, including meeting ethical and environmental standards; and finally rewarding this quality with a fair price.

To ensure they are paying fair prices, Taylors have developed a cost-modelling matrix, a tool that helps them understand the full cost of production and the profits a farmer needs to invest in his family farm and workforce. Every supplier completes the matrix each year.

To monitor conditions in their supply chain, Taylors coffee buyers are qualified social auditors, accredited by the Ethical Trading Initiative. These audits assess working conditions against international labour and human rights standards as well as compliance with local legislation. All audit reports are submitted on to the SEDEX system (Supplier Ethical Data Exchange) and every estate is left with a corrective and preventative action report, and improvements are monitored after each visit. 

By offering suppliers forward contracts and by pre-financing crops they are able to give farmers the stability and the confidence to plan ahead, invest in their crops and therefore provide Taylors of Harrogate with the on-going quality they need for their blends.

Impact

  • Product sales have grown encouragingly over the last five years and market share has been maintained in an increasingly competitive coffee market
  • Since the launch of their Sustainable Sourcing Programme all of their suppliers have remained in business
  • 100% of their coffee suppliers now receive a guaranteed fair, sustainable price. These fair prices have helped many farmers stay at their farms
  • Better health and safety, improved working hours and housing are among the benefits seen by employees of their suppliers as a result of the corrective and preventative action plans
  • The sourcing programme has been a critical factor in helping the family business secure increased distribution and new listings.