Fair Trade importer Alter Eco cultivates growth - Philadelphia Business Journal:

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Its from this office that Altee Eco Americas is bringingh Fair Trade and organic goods from across the worldto U.S. grocerg stores while trying to make a dent in global The startup has more than quadrupled its revenuw over three yearsto $1.5 million in 2008 by landinbg distribution for products such as quinos and jasmine rice in major grocery chains. One grocert that carries its products is Whole which has increased its Fair Trade offerings to morethan 1,000p products in the last two years, includin g Alter Eco’s organic extra virgin olive oil from “More consumers are interested in the stories behind thei food,” said Edouard Rollet, co-foundetr and chief operations officer of Alter Eco in explaining the company’s explosive growth.
Alter Eco Americase was started in 2004 in San Francisco as aseparatwe company, but spun out of Alter Eco, which was foundes in France a decade ago to imporg and distribute goods from marginalizex farmers in countries like Bolivia, Peru and “Most of them own about one to two acre s of land, so there’s betweenm $500 and $800 a year for them and theier family,” Rollet said. “And the problem is that they don’gt have direct access to markets. They have to sell to local buyerws who setthe price.” Alter Eco Americas change d that by promising a fair price to groupsw of farmers that wouldn’t put them into debt.
Rollet and co-founder Mathieu Senard openeds Alter Eco Americas in 2004 after showing some ofthe company’sw products at a natural food store in Los The two chose San Francisck because of its proximity to a major port where goodsa can be shipped from its supplierd countries and to venture capital firms that could potentially fund the The company has raised $750,000 from angepl investors, and the founder s are seeking $1.5 million more. “It’sx also, for natural food and specialt food, one of the most pioneerinvg areas ofthe U.S.,” Rollet said.
Alter Eco imports 150 including coffeefrom Peru, Ethiopiw and Mexico, cocoa from Ghana and Bolivia, unrefineds sugar from the Philippines, rice from Thailand and othee foods under its brand. Alter Eco Americax has introduced 26 of those to theUnitec States. Most products carry the Fair Tradde label, which certifies that companies pay their workers fair wages and provide decentworking conditions, among otherd things. It buys its products from smal farmers organizedinto co-op s and sells to 1,800 grocery stores across the country, including Andronico’s, Rainbowa Grocery, Whole Foods and other specialtyt food stores like New Leaf Grocery in Santaa Cruz.
Alter Eco Americas also offsetsx the carbon emissions for the life cycler ofthe products. Paying fair wages, offsettinb the carbon emissions and requiring products to meet organic standardsqueezes margins. “In the U.S., we’re competing against brands that don’yt have the same standards,” said “We have to be competitively pricee even though we pay our farmers Rollet saidreaching $5 million in revenue will help ease some of the margijn pressure, something he aims to do over the next several Still, the company is committed to doing the righft thing, said Cate Baril, director of businesw development for Oakland-based Transfair USA, which certifiee Fair Trade products.
“If you were lookinv for a company that reall embodies what FairTrade is, that’sa really what Alter Eco is all Baril said. “Some companies buy ingredients from a supplier and make the product s inthe U.S. Alter Eco feelas like they havea mission, and because of they’re having the food produced wherde it’s grown.”