Sainsbury’s to Increase Trade with Africa by £250 million

South Africa is the third biggest supplier of fruit to Sainsbury's, after the UK and Spain. South Africa is also actively developing into growing soft fruit and melons and is perfectly placed to meet requirements in these categories when they are out of season in the UK and Europe.

14 Jun 2010 --- Sainsbury's has announced that it is to step up its commitment to Africa by increasing investment in the continent by quarter of a billion pounds over the next five years.

The supermarket, which recently announced that it has become the world's largest retailer of Fairtrade products, is making the commitment as part of its long-term strategy to support developing countries through trade.

Mike Coupe, Sainsbury's trading director, said: "With the focus currently on South Africa, many people might be wondering how companies like ours are supporting the developing world.

"Customers want us to source British where possible, but at the same time, they do not want us to neglect African countries, many of whom rely on our trade to help keep their economies moving.
"Sainsbury's has ambitious expansion plans, so we will need to increase the amount of food we source from Africa in order to cater for the increased number of customers.

"As the world's largest Fairtrade retailer, we feel that we are the industry leader in supporting African economies through trade, and we see this additional investment as key to our success as a company."

Andrew Mitchell, International Development Secretary, said: "This is very good news. Trade and private enterprise are the best ways for the people of Africa to pull themselves out of poverty, and this investment will help thousands do just that.

"I look forward to seeing more African products on Sainsbury's shelves very soon, giving British shoppers the choice to make a difference in some of the world's poorest nations."

The announcement is made following South African president Jacob Zuma's visit to Sainsbury's flagship environmental store in Greenwich this year; the first ever visit by a head of state to a UK supermarket, which was prompted by the President's interest in the store's environmental credentials. The visit followed Sainsbury's first ever African supplier conferences held in Cape Town and Nairobi in February.

Sainsbury's is the world's largest retailer of Fairtrade products. One in every four pounds spent on Fairtrade in the UK is spent at a Sainsbury's store, and the supermarket's annual Fairtrade sales have increased by around 10% to £218m.

Sainsbury's efforts have generated far-reaching results thanks to the social premiums paid to Fairtrade communities across the world. The 800+ Fairtrade products currently sold in Sainsbury's stores generate an annual total Fairtrade premium of $16 million - which is substantially more than any other retailer. This means that Sainsbury's customers have contributed to the education of thousands of school children, helped to improve health and social care for workers and their families, and added to community infrastructures such as roads, bridges, lighting and wells.

South Africa is the third biggest supplier of fruit to Sainsbury's, after the UK and Spain. South Africa is also actively developing into growing soft fruit and melons and is perfectly placed to meet requirements in these categories when they are out of season in the UK and Europe.