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Marks & Spencer and Shell Foundation to set up new type of supply chain to help tackle poverty

Source: http://www.marksandspencer.com , ,

Marks & Spencer and the charity, Shell Foundation, have formed a unique partnership to set up a new type of supply chain in Africa and other developing countries with the aim of creating job security and eliminating poverty. The partnership will be announced by Stuart Rose, Chief Executive, Marks & Spencer, during his keynote speech at Business in the Community’s Awards for Excellence Gala Dinner at the Royal Albert Hall tonight (Tuesday 5 July 2005).

The partnership will invest in up to three supply chains in the developing world with the aim of delivering products to Marks & Spencer stores, while also helping to alleviate poverty and protect the environment. Its first project will help to improve the lives of more than 3,000 South African wild flower growers living in poverty on the Agulhas Plain, where unemployment is as high as 80 per cent.

Over the coming year, Marks & Spencer and Shell Foundation employees will be lending advice and expertise to the flower growers to help them run their businesses more efficiently and profitably. At the same time, the growers will receive support on how to manage their local environment, one of the most fragile ecosystems in the world and the area from where the flowers are harvested. The Shell Foundation will invest up to $1 million over the next 12 months to support this work.

Research* conducted by TNS for Marks & Spencer shows that over 80 per cent of people believe that the best way for businesses to help Africa is for them to improve long term trade links rather than donate money to charitable causes. Nearly 60 per cent of people believe that British businesses are not yet doing enough to help African countries out of poverty.

Stuart Rose, Chief Executive, Marks & Spencer said:

"This new partnership will help tackle a critical aspect of growth in developing countries – job creation and sustainable livelihoods - while delivering a product Marks & Spencer customers want and will continue to want.

"We could triple sales of our wild flowers with the right supply chain. At the moment, however, the small scale farmers in the Agulhas plain who harvest these flowers don’t have the capacity to meet the growing demand from our customers or the ability to manage one of the world’s most fragile eco-systems. This project is designed to help them do both."

Kurt Hoffman, Director of the Shell Foundation, said: "The partnership is a completely new way of approaching the issue of development. It’s about demonstrating that businesses have a big role to play in development and that engaging with small suppliers in the developing world can be a win-win: good for business while helping to eradicate poverty."

Marks & Spencer sources a wide range of products from across Africa including coffee, flowers, beans and Fairtrade tea from Kenya; Fairtrade coffee from Ethiopia and Tanzania; wine, flowers, grapes, citrus and fruit from South Africa; and fruit juices from Ghana.

For further information: Olivia Ross, Marks & Spencer; Tel: 020 8718 1618 / 020 8718 1919 Marc Lopatin, Shell Foundation; Tel: 0207 934 2097

Notes to editors:

The Marks & Spencer / Shell Foundation partnership will be run on a 12-month pilot basis.

Shell Foundation is a UK registered charity no 1080999.

Research conducted by Taylor Nelson Sofres’ (TNS) in July 2005 via telephone omnibus. Sample size 1,000 adults

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