1. Global Account
Management
Information Days
© Fairtrade 2012 GAM Information Day

2. The goal of Global Account Management is to leverage
deeper commitment from business partners by streamlining
their engagement with FAIRTRADE and negotiating as a
single global system
An Introduction
to GAM
Central role for FLO
 Director of GAM
 Global Account Management Team
Integrated part of Fairtrade system
 Steering Committee
 Task forces
© Fairtrade 2012 GAM Information Day 2

3. Definition of GAM account:
2.Fairtrade sales in total above entrance threshold - €100 Mio
annual wholesale value of Fairtrade sales.
Global approach =
harmonisation 3.TNC with substantial Fairtrade sales in 3-4 markets outside of
home market (with a brand market share in the defined category
of 5-10% in each market.
4.Steering Committee can exercise judgement based on
company’s expansion plans, but also on the profitability/break
even point of the account.
Discount model and licence fee distribution
agreement
© Fairtrade 2012 GAM Information Day 3

4. GAM Construct
FLO
CEO
Steering Committee
• Director is Accountable to FLO CEO,
ultimately FLO Board
• Strong symbiotic relationship • Director has delegated authority to make
• Strategic direction given by Steering decisions on global account management
Committee (SC). Director to follow or
reach agreement to modify/amend with Global Account
SC Management
• 2-way Consult / Inform role Director
• Ways of working and governance role
between SC & Director will be defined in • Note: team members can be
clear protocol/process steps either full-time employed from the
GAM function or personnel
employed elsewhere in Fairtrade
• Close ‘enabling’ working relationship
but part-time aligned to GAM
between Deal/Launch Team, GAM Team
Global Account • Team members will have
& GAM Director, but no formal reporting Management programme management focus
lines Team and/or account focus (i.e. their
•“do the activities” that compliment the
responsibilities aligned to identified
GAM team’s core functional activities;
global accounts – e.g. SBUX,
with the combined aim to manage and
Cadbury etc)
drive forward relationships between
global accounts and Fairtrade
Deal / Launch / More Info next slide
Account Teams
© Fairtrade 2012 GAM Information Day 4

5. Deal Team will:
• be comprised of the right skills to engage with an Account irrespective of
geographical or organisational (FLO / LI) alignment
GAM Construct: • perform each of their own ‘home’ functions to compliment the Global Account
Deal / Launch Management function
Teams
• be configured for each global account engagement and will include a full suite of
functional areas
Functional Representation: (order not prioritised)
“Lead LI” rep FLO CERT
Global Product Management Producer Services and Relations
Legal Licensing
Brand Management & Marketing Strategy and Policy
Financial Standards
Social Compliance PN Executive rep
© Fairtrade 2012 GAM Information Day 5

6. Introduction to International Licensing
Gives a company the right to use the
Fairtrade Certification Mark on the
products made with Fairtrade
ingredients sold under their brand-name
for companies in countries with no LI.
Licence fee - Based on Currently Fairtrade
“wholesale before retail
value”
International has
FLO Licence fees are 1% 56 licensees in 19
in countries with no countries
national initiative (labelling
initiative or marketing
organization) GAM Information Day
© Fairtrade 2012 6

7. Licensee Applicant
Licensing
Process
Application &
Application &
Certification
Licensing
Certification fee No application fee
Certification Licence contract
contract Licence fee
Licence contract only valid with certification!
© Fairtrade 2012 GAM Information Day 7

8. Scope of Certification and Licensing
Who needs certification? Manufacturer
ct
du
pro
t he
rms
n sfo
Tra
Pro
Consumer-ready duc
t ow
ner
packaged product
Who is the licensee? Brand-
owner
© Fairtrade 2012 GAM Information Day 8

9. Crossborder
Sales One Contract, One Contact
Vietnam
HOME Market
Licensee
CBS approval required
Licence income
transferred
Singapore
Thailand
Germany
© Fairtrade 2012 GAM Information Day 9

10. Harmonisation of Licensing
Licensing and Contract Committee (LCC)
• CBS processes and issues
• Standard Contract and other licensing tools
• Regulations and recommendations
Licensing & Trade Audit Meeting (LTA)
• Annual meeting
• Forum on licensing and trade audit issues
© Fairtrade 2012 GAM Information Day 10

11. Introduction to New Markets
New Markets
Responsibilities
Management Building-up and strengthen current and prospective Fairtrade Marketing Organizations in
non-LI countries (Global North)
Development of domestic Fairtrade markets in producer countries (Global South)
Information exchange and project-based collaboration with fair trade organisations in
non-LI coutries worldwide
Current Activities
Market development in the North (in order of priority):
Poland, Hong Kong, Russia, Hungary
Market development in the South (in order of priority):
India, Brazil, Mexico, Philippines, China, Kenya
Support to existing Fairtrade Marketing Organizations – South Korea, Czech Republic
Strategic work, e.g. prioritization framework for new markets, global approach concept
for new markets;
© Fairtrade 2012 GAM Information Day 11

12. New Markets:
Where they are
Labelling Initiatives
Fairtrade Marketing Organization
New Markets - South
New Markets - North
On the list for New Markets
(Russia, Hungary, Slovakia, Arab States, Philippines)
© Fairtrade 2012 GAM Information Day 12

13. Topics Priority A Priority B Priority C
New markets Brazil * Kenya Singapore
South
Current Mexico * Arab States Philippines
priorities
India *
New markets Hong Kong * China Turkey
North
Poland * Taiwan
Building new Russia Hungary
contacts
Slovakia Portugal
Support for South Korea,
current FMO’s Czech
* Plan for a FMO in 2012
© Fairtrade 2012 GAM Information Day 13

14. GAM Information Day 14