Strengthening Partnerships in Fair Trade Alternative Distribution Channels:

Purpose – The purpose of this paper is to discuss success factors behind ATO distribution channels by examining successful partnerships between producers and alternative trading organizations (ATOs). Research design, data, and methodology – This is a case study, an analytical approach, which illustrates how the partnership between producers and ATOs has strengthened the fair trade and the performance of participants in the trade based on the example of the trading relationship between Beautiful Coffee, an alternative trading organization dealing coffee related products, and the coffee cooperative union (CCU), a coffee producing cooperative in Gulmi, Nepal. Results – Beautiful Coffee in the partnership with HELVETAS empowered small coffee farmers by a successful institutionalization of CCU that consolidated the distribution channel to be more efficient. Also, Beautiful Coffee and its partnership with KOICA have tried to increase productivity and quality of coffee beans. Conclusions – The case of Beautiful Coffee demonstrates that the partnership between producers and alternative trading organizations (ATOs) has benefited the fair trade partners. In other words, Beautiful Coffee s partnerships with a NGO working in the local producing area, HELVETAS, and a government aid agency, KOICA could strengthen the relationship between the producers and the ATO, and thus contributes to the whole distribution channel.