Oxfam and independent coffee roaster, Mathew Algie, have announced plans to launch a chain of fair trade coffee shops, called Progreso, in partnership with coffee grower co-operatives.

Progreso hopes to launch three outlets by the end of 2004 with sites in Scotland and the south east of England currently under investigation. Concession partners are also being sought to provide suitable locations within existing retail operations, such as books and clothes shops and sites are currently being investigated between 800 and 1800sq ft.

Fair trade coffee is currently the fastest growing sector of the UK coffee market. In 2003, for example, consumers purchased 2083 tonnes of fair trade coffee from shops and supermarkets – an increase of 42 per cent from 2002.

The espresso sold at Progreso sites will be a premium quality fair trade blend of coffee beans sourced from three co-operatives in Honduras, Ethiopia and Indonesia, who will have partial ownership of the venture. Fair trade cakes and biscuits will also be sold.

The producer co-operatives will own 25 per cent of the firm’s shares and a further 25 per cent will be held in trust for projects in the grower communities. The remaining 50 per cent of the company will be owned by Oxfam who, along with Matthew Algie, will provide initial funding of £50,000 each.

Managing director of Progreso, Wyndham James, said: “This is a bona fide commercial venture. We will be launching smart, contemporary outlets that provide consumers with fantastic coffee and help growers through ready-made retail outlets. Progreso will have a strong brand identity and its high quality coffee will be the cornerstone of its offering.”

Oxfam added: “This unique project aims to showcase the quality of fairly traded coffees and pioneer a new style of doing business that closes the gap between coffee growers in the developing world and coffee lovers on the high street.” Details: www.progreso.org.uk