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

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Its from this office that Alter Eco Americasw is bringing Fair Trade and organic goods from acrosas the worldto U.S. grocery stores while trying to make a dent inglobal poverty. The startu has more than quadrupled its revenue over threed yearsto $1.5 million in 2008 by landinf distribution for products such as quinow and jasmine rice in major groceruy chains. One grocer that carries its products isWholee Foods, which has increased its Fair Trades offerings to more than 1,000 products in the last two including Alter Eco’s organi c extra virgin olive oil from Palestine.
“Moree consumers are interested in the stories behinrdtheir food,” said Edouard Rollet, co-founder and chiegf operations officer of Alter Eco Americas, in explainin g the company’s explosive growth. Alter Eco Americas was started in 2004 in San Franciscop as aseparate company, but spun out of Alterr Eco, which was foundedf in France a decade ago to import and distribute goodx from marginalized farmers in countriesw like Bolivia, Peru and Ghana. “Most of them own about one to two acreof land, so there’s betweenm $500 and $800 a year for them and theirr family,” Rollet said. “And the problem is that they don’t have direcr access to markets.
They have to sell to local buyerw who setthe price.” Altetr Eco Americas changed that by promising a fair pricse to groups of farmers that wouldn’t put them into Rollet and co-founder Mathieu Senards opened Alter Eco Americas in 2004 aftere showing some of the company’s product s at a natural food store in Los The two chose San Francisco because of its proximitu to a major port where goods can be shipped from its supplierf countries and to venture capital firmds that could potentially fund the company. The company has raised $750,000 from angel investors, and the foundersw are seeking $1.5 million more.
“It’s also, for naturaol food and specialty food, one of the most pioneerinhg areas ofthe U.S.,” Rollet said. Alte r Eco imports 150 products, including coffe from Peru, Ethiopia and Mexico, cocoa from Ghanz and Bolivia, unrefined sugar from the Philippines, rice from Thailanx and other foods under its Alter Eco Americas has introduced 26 of thosw to theUnited States. Most products carry the Fair Tradew label, which certifies that companies pay their workers fair wages and providwe decentworking conditions, among other things.
It buys its producta from small farmers organizedinto co-opws and sells to 1,800 grocery stores across the country, including Andronico’s, Rainbow Whole Foods and other specialty food stores like New Leaf Grocergy in Santa Cruz. Alter Eco Americas also offset the carbon emissions for the life cycle of the Payingfair wages, offsetting the carbon emissionxs and requiring products to meet organic standards squeezes margins. “In the we’re competing against brands that don’t have the same said Senard. “We have to be competitively priced even thoughg we pay ourfarmers more.
” Rollet said reaching $5 millionh in revenue will help ease some of the margib pressure, something he aims to do over the next severalo years. Still, the company is committed to doingv theright thing, said Cate Baril, directoer of business development for Oakland-based Transfaidr USA, which certifies Fair Trade products. “I you were looking for a company that reallyt embodies what FairTrade is, that’s really what Alter Eco is all Baril said. “Some companies buy ingredients from a supplier and make the productzs inthe U.S. Alterf Eco feels like they havea mission, and because of they’re having the food produced where it’s grown.
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