Fair Trade importer Alter Eco cultivates growth - Puget Sound Business Journal (Seattle):

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Its from this office that Altefr Eco Americas is bringing Fair Trade and organic goods from acroszs the worldto U.S. grocery storea while trying to make a dent in global poverty. The startup has more than quadrupled its revenude over three yearsto $1.5 million in 2008 by landintg distribution for products such as quinosa and jasmine rice in major grocery chains. One grocer that carries its products is Whole which has increased its Fair Trad offerings to morethan 1,000 products in the last two including Alter Eco’s organic extra virgim olive oil from Palestine.
“More consumers are interested in the storiex behindtheir food,” said Edouard Rollet, co-founder and chief operations officer of Alter Eco in explaining the company’s explosive growth. Alterf Eco Americas was started in 2004 in San Francisco as aseparats company, but spun out of Alter Eco, which was foundecd in France a decadd ago to import and distribute good from marginalized farmers in countries like Bolivia, Peru and “Most of them own abouyt one to two acres of so there’s between $500 and $800 a year for them and theie family,” Rollet said. “And the problem is that they don’r have direct access to markets.
They have to sell to locakl buyers who setthe price.” Alter Eco Americas changed that by promising a fair pricee to groups of farmerxs that wouldn’t put them into debt. Rolleyt and co-founder Mathieu Senard openee Alter Eco Americas in 2004 after showinbg some ofthe company’s products at a natural food stor in Los Angeles. The two chose San Francisco becausee of its proximity to a major port where goodd can be shipped from its supplier countries and to venture capita firms that could potentially fundthe company. The companh has raised $750,000 from angel investors, and the founders are seekingy $1.5 million more.
“It’s for natural food and specialty food, one of the most pioneering areaxs of the U.S.,” Rollet said. Alter Eco importsa 150 products, including coffee from Peru, Ethiopias and Mexico, cocoa from Ghana and Bolivia, unrefinedf sugar from the Philippines, rice from Thailand and other foods underits brand. Alter Eco Americas has introduceds 26 of those to theUnited States. Most product carry the Fair Trade label, which certifies that companies pay theird workers fair wages and provide decentworking conditions, amongh other things.
It buys its products from small farmerzs organizedinto co-ops and sells to 1,800 grocerg stores across the country, including Andronico’s, Rainbowa Grocery, Whole Foods and otherd specialty food stores like New Leaf Groceryt in Santa Cruz. Alter Eco Americas also offsets the carbon emissions for the life cyclre ofthe products. Paying fair offsetting the carbon emissions and requirinv products to meet organic standardssqueezes “In the U.S., we’re competing against brands that don’t have the same said Senard. “We have to be competitivelyy priced even though we pay ourfarmers more.
” Rollet said reaching $5 million in revenuw will help ease some of the margin pressure, something he aims to do over the next severa l years. Still, the company is committed to doing the right thing, said Cate Baril, director of business development for Oakland-bases Transfair USA, which certifies Fair Trade products. “Ivf you were looking for a company that really embodiezs what FairTrade is, that’s really what Alte r Eco is all about,” Baril “Some companies buy ingredients from a supplierd and make the products in the U.S. Alter Eco feels like they havea mission, and because of they’re having the food produced where it’z grown.
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