The Harvard Business School has published one of their famous case studies about Equifruit, a trailblazing importer and marketer of Fairtrade bananas to the North American market. Co-owners Jennie Coleman (President) and Kim Chackal (VP, Sales & Marketing) were on site at Dartmouth College's Tuck School of Business on January 16th when Professor Elizabeth Keenan, who authored the case, taught it for the first time.
Kim Chackal and Jennie Coleman at Dartmouth College's Tuck School of Business.
The case centers on the Equifruit team's work to introduce a higher-priced banana, based on respect for Fairtrade International standards, into a market which has long promoted cheap bananas as a way to draw customers into stores. It gives a short overview of the banana industry in North America, defines what the problem is which Equifruit is solving, delves into what is meant by "Fairtrade" in the banana sector, tells the story of Equifruit's evolution and paints a picture of their growth and success, despite the persistent challenge of entrenched mindsets on banana pricing at retail.
The case – like all published by the Harvard Business School – is not an endorsement of the company, nor is it intended to illustrate effective or ineffective management, but rather to be used as the basis for class discussion. "It's sort of surreal to sit in a room of smart young business minds who have studied the challenges your business faces and who come at them with a fresh perspective", said Chackal.
Left to right: Jennie Coleman, professor Keenan, Kim Chackal.
Coleman became aware of Prof. Keenan's work through a conversation she had recorded with the Harvard Business Review's "Cold Call" podcast. She was presenting another case she'd written, about the Bombas sock company. She framed their problem as "How much would you be willing to pay for a pair of socks", the question they faced as tried to grow their social mission. "I thought immediately, YES!", said Coleman, "This is what Equifruit is asking customers to consider, too. In our case, we're encouraging people to acknowledge that bananas are too cheap, ridiculously so, irrationally so – and small growers and plantation workers are paying a price for our reluctance to pay more for our favourite fruit."
She reached out to Prof. Keenan, who taught a Purpose-Driven Marketing course to Harvard MBA students and the two began an exchange on Equifruit's unique approach to marketing a sustainable product. In April 2023, Chackal and Coleman drove down to the HBS and presented their work. "The idea for a case came from that first lecture", recounts Chackal. "Usually, we think of innovation as being some technological advancement or new food engineering – but we stood up and presented Equifruit's award-winning, humorous marketing which, in a very stagnant market, shakes things up and catches eyeballs. In the end, we'll do whatever we can to change mindsets on banana pricing to drive impact to growers."
Coleman chimed in: "Our innovation is paying people fairly. It's crazy to think this should be some kind of new idea – and yet less than 1% of the US market is bought and sold on Fairtrade terms. Equifruit has made this story of a sustainable banana industry as interesting and followable as pop culture, and the sales impact has followed. Prof. Keenan was intrigued."
Prof. Elizabeth Keenan teaching the case.
So what did the Tuck students see as opportunities for Equifruit? First, they liked that Equifruit offers a provocative yet fun product whose branding differentiates them in the produce aisle and appeals to Gen Z's social consciousness. There was some discussion on the say / do gap on sustainable products, but overall, the price increase was seen as so little as to be negligible. "Students recommended we lean into that story," said Chackal, "We've already tested a concept with the theme "Make it Rain for Banana Farms" in which we highlight that it would only cost roughly 5 USD more per year to switch to Equifruit Fairtrade bananas. The student interest in this messaging reinforced this as a key communication point to the market."
After lectures at both the Harvard Business School and Tuck School of Business, Coleman and Chackal joke that they're taking bookings at the other Ivy League schools. "We love a good road trip", they laugh, "and we love telling the Equifruit story of change and innovation. Global Fairtrade Banana Domination, here we come!" Give them a call, already their case is worth teaching.
The case study can be purchased here.
Ben Huyghe, Jennie Coleman, Kim Chackal proudly show the case study.
For more information:
Jennie Coleman
Equifruit
Tel: (+1) 514-910-4360
Jennie.coleman@equifruit.com
www.equifruit.com