International Tea Day, 15 December, highlights the global tea trade and the millions of workers and growers who rely on the industry, many of whom remain trapped in poverty due to low commodity prices and wages. With an ambition to do business differently, the people behind speciality drinks makers Lemonaid and ChariTea are out to change the world - one drink at a time.
UK director Julian Warowioff, explains: “From the very start we set out to find the most ethical, fairest suppliers, instead of relying on brokers. We visited lots of tea plantations - we want to make sure we achieve [the] greatest possible social impact. We have always wanted to ignite change and show that business can be based on ethical principles and be successful – it is possible to have both.”
Their recipe for success? On top of sourcing only Fairtrade and organic ingredients for their award-winning beverages they donate an additional 5p from every bottle to charity via the Lemonaid & ChariTea e.V. Foundation. To date, the foundation has received more than £1m from the 5p promise, supporting projects from solar energy to education in developing countries.
It’s an achievement for such a young company that only launched in the UK in April 2015. Today, Lemonaid & ChariTea is now trading in 500 cafes, bars and health food stores across the country, as well as in 11 other countries. But their origins are humble.
Lemonaid & ChariTea was born in Sri Lanka back in 2008 when founder Paul Bethke was working on a humanitarian aid project. Working closely with communities, Paul understood that the best way of empowering them was through changing trade. He realised that a fair wage, fair prices, access to international markets and the security of long-term contracts would help solve communities’ reliance on hand outs. So, driven by a thirst for social change, he returned to Germany and began testing out recipes with two friends who became co-founders.
It took them 9 months to get started. 100 bottling companies turned them down but this ended up working in their favour. Lemonaid & ChariTea use natural ingredients only - pure fruit juice and freshly brewed leaf tea, packaged in minimalistic glass bottles. With a health-conscious consumer in mind, the drinks contain far less sugar than soft drinks and the iced teas are naturally sweetened with agave juice or honey.
Recognising a gap in the market for a range of premium healthy non-alcoholic drinks was key to its success.
Warowioff says: “Our customers understand the value of what we do and are willing to pay a slightly higher price for a soft drink that isn’t loaded with refined sugar, doesn’t harm the environment and treats everyone, down to the farmer on a tea garden, fairly and with dignity. More and more consumers care about the impact their lifestyle has on people living on the other side of the world and want to make a positive contribution through conscious consumption. We are giving them the chance to do so, drink by drink.”
Now, big business is catching on. Recognising that millennials and socially conscious shoppers are willing to pay for quality, healthy and ethical products, corporates are introducing their own ranges such as Coke’s recently launched Honest Tea, a range of organic iced teas.
But what’s different about Lemonaid and ChariTea is that they deal directly with the people behind their ingredients. They work with a small group of Fairtrade certified co-operatives. As Warowioff says, “We believe in Fairtrade and have seen the significance it makes in people’s lives. But we want to go one step further as a business and through the work of our foundation too. We try to understand how much work goes into producing tea, cane sugar and fruit. Most of us here have no idea, 10-12 hour days toiling in 32 degree heat. The farmers should get a decent deal in return.
“We find it very inspiring to see that other Fairtrade producers have begun adopting a social business model similar to ours. Consumer goods can be means of fundraising and we’re a growing part of the economy that believes business is not just about profits but being a responsible global citizen.”
One such community - which Lemonaid & ChariTea source from - is Heiveld, in South Africa, which formed the first “coloured” co-operative in the Suid Bokkeveld in 2001. Through Fairtrade and organic certification, Heiveld has been able to establish itself on the market. Farmer Berry Koopmann says: “When I started planting rooibos, prices were very, very low so we came together as coloured people and said no – we must have our own co-operative.”
By selling rooibos tea to Fairtrade importers, the farmers’ incomes tripled. The Fairtrade Premium has helped them to become more independent; they can process tea and be more profitable, but their lives are still basic. The area is very remote and not connected to the national grid. So the Lemonaid & Charitea Foundation invested in solar panels for the community which give them free energy and are maintained by the community. The farmers now have light in the evenings and because they can charge their mobile phones, can communicate with each other and the co-op head office.
So what next?
Lemonaid & ChariTea will launch in the US at the beginning of 2017, but ultimately, they measure success on what the business can achieve for the foundation.
Warowioff says: “We’re still at the beginning of a long journey. The beauty of our social business model is that the charitable donations are directly linked to the amount of products sold. Therefore, business growth and social impact go hand in hand - and the prospect of raising over £1m annually for our social projects in years to come is what ultimately drives us. Why would one want to make millions for anonymous shareholders when you can change the lives of millions of people instead?”
Content on this page is paid for and provided by Fairtrade Foundation, sponsor of the spotlight on commodities series
