Ethical shoppers spur firm to rapid growth

Mar 20 2008 by Andrew Mernin, The Journal

AN ETHICAL trading firm is in negotiations for new investment which will help increase its revenue 20-fold to £40m in five years.

Newcastle company Ethicalsuperstore.com, which sells Fairtrade and eco-friendly products online, says it is on the verge of landing £3m in venture capital investment which will take the company on a rapid growth spurt.

The news follows a period of exponential growth for the firm, which saw its sales jump 285% to £300,000 last December alone.

The £2m-a-year business was set up in Ouseburn in 2006, has increased its workforce to 25 and expects to bring this to 60 by 2010.

Co-founder Vic Morgan said: “Christmas was ground-breaking for us and has proved UK consumers are keener to look behind the label to find out more about where their purchases come from and how they were made.

“Given how strong the customer response has been so far, there is every reason to suggest that we could reach turnover figures in excess of £40m within five years.”

The company is looking for a new Newcastle premises in excess of 25,000sq ft, having outgrown its current site on the Hawick Trading Estate.

Morgan, who hails from Boston in the United States, has a wealth of experience in ethical products and co-founded Onenest – an ethical sourcing and distribution firm in New York. His business partner, former Traidcraft and Cafe Direct director Andy Redfern, said the behaviour of ethical consumers in recent months had helped the company redefine its plans.

He said: “Eco-gadgets and bulk Fairtrade and organic food purchases have been two major areas of growth for us.

“In addition we’ve seen better-than-expected spikes in sales of our gift range throughout key dates in the calendar. These are the three core areas we will be putting a lot of energy and focus on, to further improve the range.”

The two are an established part of the Tyneside group of ethical companies which have sprung up around Gateshead’s Traidcraft, which has pioneered fair trade retail for nearly 30 years.