The second of our Covid-19 supplier commitments is to honour every one of our long-term agreements and contracts already in place and look to grow volumes where practical.
Strong relationships and responsible trading practices, supported by long term contracts, are central to the way we work with our suppliers. They allow us and our suppliers to plan for the future.
Our use of long term contracts is very different to how many tea and coffee buyers operate. Tea and coffee are mainly used in blends, where small changes in ingredients at different times of year aren’t noticeable for us enjoying our brew at home. This means that buyers often focus their business on where they can get the best value at any given time, making it difficult for growers and producers to plan ahead and putting downward pressure on prices.
The security of a long term contract means that our suppliers are more likely to invest in their business – their farms or factories. We want our suppliers to know we remain committed to these agreements, both through the bad times and the good, and that we’ll buy more where we can. In turn our suppliers can confidently make the investments needed to employ and support their people through the pandemic.