LUXEMBOURG

The structure of fair trade

Terra Roxa is involved in importing and wholesaling, Maison Santos only in wholesaling (coffee roaster and wholesaler to the institutional market). The majority of imports are realized through German, Belgian and Dutch importers. The retail market consists of 4 world shops (in Bettembourg, Esch, Ettelbrck and Luxembourg), 3 supermarket chains (Monopol, Match and Cactus) and 35 natural food shops. This totals 40 points of sale in the fair trade and natural food sector plus 80% of the supermarkets.

Two fair trade marks are used in Luxembourg: TransFair and Max Havelaar, making it the only country surveyed in this study with more than one fair trade mark.

The fair trade sector in Luxembourg employs only one person (at TransFair Minka). The world shops are run entirely by volunteers.

Retail channels include individual stores, chains of stores, commercial stores and commercial chains of stores. Information on fair trade and fair trade products is disseminated through the radio, television, newspaper articles, press conferences, information leaflets, seminars and personal information.

The budget for education and marketing amounts to 25,000 ECU (probably only for TransFair Minka).

There is no umbrella organization in Luxembourg's fair trade sector, although the trademark organization TransFair Minka is actually functioning as one. All four world shops are members of TransFair Minka, in addition to a number of third world organizations, solidarity groups and environmental organizations. Besides, a variety of informal networks exists between the wholesale organizations, the trademark organization and the world shops.

In October 1994, TransFair Minka established an office with one staff member with the aim to achieve a further professionalization of the fair trade sector in Luxembourg. This is the most important recent development.

The market for fair trade

Wholesale turnover in the sector amounts to 150,000 ECU; retail turnover figures are not available.

No studies are available on public awareness of the fair trade sector. Some interest has been shown by commercial retailers, as is reflected by the large number of supermarkets engaged in the sale of fairly traded coffee.

The products sold in the world shops include a range of food and non- food products. The customers appear to be relatively wealthy, which may have a certain effect on their willingness to pay more than for other products.

The market share of fair trade coffee is 1.4%.

Table 1: The structure of fair trade in Luxembourg
import organizations: 1
wholesale organizations: 1
retailers:
   world shops 4
   natural food shops 35
   chains of supermarkets 3
points of sale: 40 in fair trade plus
80% of supermarkets
staff: 1
trademarks: Max Havelaar and TransFair
retail channels:
   mail order no
   individual fair trade stores yes
   chains of fair trade stores no
   commercial stores yes
   commercial chains of stores yes
budgets for education & PR: 25,000 ECU
Table 2: The market for fair trade in Luxembourg
wholesale turnover: 150,000 ECU
retail turnover - rough estimate: 190,000 ECU
public awareness of fair trade: -
public awareness of fair trade products: -
willingness to pay a higher price: -
market share:
   coffee 1.4%
turnover per product category: -

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