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Building Brand Reputation through Third-Party Endorsement: Fair Trade in British Chocolate

Published online by Cambridge University Press:  22 November 2016

Teresa da Silva Lopes
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Abstract

This article looks at the evolution of the British chocolate industry from the 1860s to the 1960s, a period during which it was dominated by Quaker businesses: Cadbury, Rowntree, and their predecessor, Fry. It provides evidence of early forms of fair trade by these Quaker businesses, showing that, before the fair trade movement took off in the 1970s, they contributed to social change and to improvement in living standards and long-term sustainable economic growth in developing countries. This article argues that when the mechanisms for enforcing food standards were weak and certification bodies did not exist, the Religious Society of Friends acted as an indirect independent endorser, reinforcing the imagery and reputation of the Quaker-owned brands and associating them both with purity and quality and with honest and fair trading.

Type
Research Article
Information
Business History Review , Volume 90 , Special Issue 3: A Special Issue on Food and Agriculture , Autumn 2016 , pp. 457 - 482
Copyright
Copyright © The President and Fellows of Harvard College 2016 

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34 However, the trademarks “Cadbury” and “Cadbury Brothers” were first registered in 1886 under the numbers 53575 and 53576 for cocoa and chocolate (class 42), respectively, with a user claim of about twenty years before the Trade Mark Registration Act was passed in 1875. Trade Mark Journal: Britain (London, 1886).

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36 “Chairman's Reports on York to General Board, 1933–1935,” R/B/2/2 RABI; Memo “Cocoa,” 29 Nov. 1932; “Rowntree's Cocoa,” 16 Aug. 1932; Memo “Cocoa,” undated, ca. 1932–1933, all in box 293, Rowntree, J. Walter Thompson, History of Advertising Trust, Norwich, U.K.

37 The brand Kit Kat was first registered by Rowntree in 1911 and subsequently renewed in 1925, 1939, 1953, and 1967. “Register Relating to Applications for the Registration of Trademarks,” R/DP/F/19, RABI.

38 “In the Name of Sweet Success,” Financial Times, 10 Mar. 1969.

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43 See Miers, Suzanne, Slavery in the Twentieth Century: The Evolution of a Global Problem (Walnut Creek, Calif., 2003)Google Scholar, chaps. 1 and 2.

44 Among the early critics of slavery was George Fox, the founder of Quakerism. The aim for the creation of the Anti-Slavery Society was to campaign for the universal extinction of slavery and the slave trade, by moral, religious, and pacific means. With the abolition of slavery in British dominions this organization remained committed to abolishing slavery worldwide. Carroll, Kenneth L., “George Fox and Slavery,” Quaker History 86, no. 2 (1997): 16–25 CrossRefGoogle Scholar; Forclaz, Amalia Ribi, Humanitarian Imperialism: The Politics of Anti-Slavery Activism, 1880–1940 (Oxford, 2015)Google Scholar; Hollis, Patricia, Pressure from Without in Early Victorian England (London, 1974)Google Scholar.

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48 The report prepared by the agent became available to the British public in 1908. An article published in The Harper's Magazine in September 1907 commended the Quaker chocolate firms for their investigation into labor conditions in Portuguese West Africa, criticized the British Foreign Office for its caution, and advocated a boycott of São Tomé cocoa. Burtt, Joseph, “Slavery in São Thomé,” Friend, 22 July 1910, 485 Google Scholar; Nevisson, Henry H., “The Angola Slave Trade,” Fortnightly Review 82 (Sept. 1907): 488–97Google Scholar.

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57 Rowntree Fry Cadbury was nationalized in 1961 by the United Ghana Farmers Council and Ghana Farmers Marketing Association, which became the monopoly of cocoa in Ghana, controlling the prices of commodities and the returns of the trade to local economies. Fieldhouse, Merchant Capital, 168–70, 418.

58 “Gum Arabic,” CWM, no. 28, June 1904, 42–48.

59 “Mr. Spiers of Northern Nigeria,” CWM, Oct. 1933, 927; Rowntree film about the production of gum arabic in Sudan  (n.d., ca. 1930s), Nestlé Archives, York, U.K.

60 “Script on Dr. Pond's Broadcast on Trinidad Radio: The Plan of Subsidized Cacao Rehabilitation in Trinidad and Tobago,” box 51/9/1 and L. R. Voyle, “Report on Condition and Prospects of Estate at Caruao to Sir Francis Terry,” 18 June 1945, 7–8, box 51/9/1, TABI.

61 “They Came to See Us: Course of Mr. Kunle Oyedipe from Nigeria in York about Export Promotion,” CWM, Christmas 1967, 11.

62 “The Rowntree Trusts,” CWM, Summer 1967, 10–12; “The Joseph Rowntree Charitable Trust,” CWM, Spring 1968, 8–11.

63 Reputation Institute, The World's Most Reputable Companies (New York, 2014)Google Scholar; Heer, Jean, World Events, 1866–1966: The First Hundred Years of Nestlé (Rivaz, Switzerland, 1966)Google Scholar. This reputation has been tarnished in some parts of the world as a result of antiglobalization movements. Tucker, Laura and Melewar, T. C., “Corporate Reputation and Crisis Management: The Threat and Manageability of Anti-Corporatism,” Corporate Reputation Review 7, no. 4 (2005): 377–87Google Scholar.

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66 Cadbury began exporting its products in the 1870s; even though exports represented 15 percent of Cadbury's sales by 1911, most went to Australia, South Africa, and India. By 1930, Rowntree's exports represented only 2 percent of the total sales activity of the firm. The high increase in tariffs to imports during the 1920s led the two firms to invest in foreign production, particularly in Australia, Canada, New Zealand, Ireland, South Africa, and Germany. Jones, “Chocolate Multinationals,” 96–118; Corporate Accounts, 1933–1950, 3/BSR/1 and “Sales Statistics Department,” folder R/DF/CS, RABI.

67 See, for example, “The Newspaper as a Servant of the Public,” Printers’ Ink Monthly 6, no. 18 (1892): 572 Google Scholar; Political and Economic Planning Press Group, Report on the British Press: A Survey of Its Current Operations and Problems with Special Reference to National Newspapers and Their Part in Public Affairs (London, 1938), 3, 4, 8, 30, 33, 51–56Google Scholar; Times, Printing in the Twentieth Century: A Survey Reprinted from the Special Number of the Times, October 29, 1929 (London, 1930)Google Scholar.

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70 Genuine news articles include pieces published in the following sections of the Times: Business, Editorial and Commentary, Features, News, and People.

71 Similar numbers are also obtained when searching for the terms “Quaker” and “Society of Friends” in the titles of articles and for the words “Cadbury” and “Rowntree” in the main text of articles. “Mr. Gladstone and the Society of Friends,” Times, 22 May 1888, 6; “Friends’ Foreign Mission Association,” Times, 30 May 1899, 12; “Friends’ Social Union,” Times, 27 June 1910, 12; “Rallying Britain's Friends,” Times, 1 Dec. 1938, 9; “Friends Ambulance Unit,” Times, 29 Nov. 1941, 6.

72 Contrary to popular belief, the man on the box is a generic Quaker, not William Penn. Marquette, Arthur, Brands, Trademarks, and Good Will: The Story of the Quaker Oats Company (New York, 1967), 31 Google Scholar.

73 The Society of Friends sued a brewer who had used the word “Quaker” on the label of bottles. “Minutes and Proceeding of London Yearly Meeting—Society of Friends,” 1904, 41; “Minutes and Proceeding of London Yearly Meeting—Society of Friends,” 1905, 62; “Minutes of the Meeting for Sufferings 1900–1905,” LSF.

74 “Men and Matters: The Cadbury's of Bournville,” Financial Times, 9 May 1962, 10; “Should a Brand's Heritage Be a Concern to Shareholders?” Financial Times, 16 Sept. 2009, 18; “Eat to Be Eaten,” Financial Times, 10 Mar. 2010; “A Multi-Million Sweetener for Cadbury's,” Daily Express, 30 Jan. 1969; Stephen Overell, “Plain Dealing Pays Dividends,” Financial Times, 22 Aug. 2000, 12.

75 Between 1857 and 1965, the following topics appeared most often in the minutes of the Society's annual meetings, LSF: peace, 271 times; war and disarmament, 261; temperance, 221; slavery and slave trade, 157; opium trade 50; gambling, 23; liquor, 12; famine, 2.

76 “Mr. George Cadbury and the Housing of the Working Classes,” Times, 18 Mar. 1901, 8; “Libel Action by Messrs. Cadbury,” Times, 2 Dec. 1909, 4; “Messrs. Cadbury Action,” Times, 7 Dec. 1909, 9; “Mr. Maurice Rowntree Defence,” Times, 14 Feb. 1917, 5; “Mr. George Cadbury—Business Man and Social Worker,” Times, 25 Oct. 1922, 14; “Mr. Rowntree—Industrial and Social Reform,” Times, 25 Feb. 1925, 19; “Mrs. Rowntree,” Times, 3 Apr. 1929, 17; “Mrs. M. L. Rowntree,” Times, 29 Oct. 1949, 7; “Mr. Arnold Rowntree—Adult Education,” Times, 23 May 1951, 8; “Mr. J. Stephenson Rowntree,” Times, 30 July 1951, 6; “Mr. Seebohm Rowntree,” Times, 8 Oct. 1954, 11; “Mr. Walter Rowntree,” Times, 4 Apr. 1957, 14.

77 George Cadbury, giving evidence to the committee appointed to consider the working of the 1872 Adulteration of Food, Drink, and Drugs Act, suggested that the word “cocoa” should be used only for unmixed preparations of the cacao bean and that mixtures of the cacao bean with sugar or other substances should be sold always under the name of chocolate. Williams, The Firm of Cadbury, 41–42.

78 “Cadbury's Cocoa—Guaranteed Absolutely Pure,” Times, 25 Jan. 1894, 12; “Cadbury's Cocoa Is Made under Ideal Conditions,” Times, 15 Oct. 1909, 3; “Either Cadbury's Cocoa—Pure Cocoa Essence or Bournville Cocoa—with Its Unique Flavour,” Times, 14 Feb. 1910, 3; “Reduced Prices and Increased Sales—A Statement by Cadbury Brothers Ltd.,” Times, 6 June 1931, 17; “90% of the Nourishment in Cadbury Bourn-Vita Can be Turned to Human Energy in a Few Hours,” Times, 29 Sept. 1932, 15.

79 See, for example, “What Bournville Does for the Health of Its Workers,” Times, 30 Sept. 1937, 8.

80 Fitzgerald, Rowntree and the Marketing Revolution, 67.

81 “Say a Happy Christmas with a Box of Rowntree's Chocolates—the Always Welcome Gift,” Times, 11 Dec. 1922, 18. In 1919, Rowntree created a very successful campaign around two little children, the “Cocoa Nibs.” Appearing in various colorful chocolate advertisements, the boy and girl portrayed health and happiness while involved in a series of exciting adventures. The almost instant success of this campaign led to the creation of an additional Cocoa Nib, this time a little boy with an African look—he lived at the cocoa plantations and his adventures took place in a very different environment in Africa, enhancing the exotic nature of the ingredients. CWM, May 1920, 17–19, 65, 93; Fitzgerald, Robert, Rowntree and the Making of the Marketing Revolution (Cambridge, U.K., 1995), 140 Google Scholar; CWM, Mar. 1922, front cover. There are some critics of these companies’ use of African characters in advertisements; see, for example, Robertson, Emma, Chocolate, Women and Empire: A Social and Cultural History (Manchester, U.K., 2009), chap. 2 Google Scholar.

82 “Chocolate Shortbread Has a Real ‘Peacetime’ Flavour!” Times, 19 Sept. 1944, 2.

83 “Hospitals Day—Please Give Freely,” space generously given by Rowntree, Times, 2 May 1944, 2.

84 “The Boer War,” London Daily News, 3 July 1901, 5; “The Concentration Camps,” London Daily News, 8 Nov. 1901, 6; “Concentration Camp Horrors,” London Daily News, 7 Nov. 1901, 3; “Chinese Slavery,” Daily News, 26 Mar. 1904, 8; “Sweated Labour,” London Daily News, 16 Jan. 1907, 12; “Mr. Henry Cadbury—the Liberal Press in London,” Times, 26 Sept. 1952, 8; “Lieu Cadbury War Service,” Birmingham Daily Mail, 4 Dec. 1916.

85 “Tory Failures—Speech by Mr. M. J. Morley: Chinese Slavery,” Daily News, 26 Mar. 1904, 8; “Mr. Arnold Rowntree—Adult Education,” Times, 23 May 1951, 8.