Traidcraft raises £3.25m to expand

Traidcraft's sales soared over Christmas.

The UK's biggest fair trade organisation has raised £3.25m ($5.2m) from shareholders even though its main aim is not to make a profit.

Traidcraft sells products ranging from chocolate to pottery which it sources in the developing world.

The charity launched a share offer in October to raise extra funds.

It said this had been fully subscribed, effectively tripling the organisation's capital base to fund expansion plans.

Paul Chandler, the chief executive said he was hugely encouraged by the offer, "especially at a time when the market has been so unstable and people have been reluctant to invest their money in traditional shares".

Record growth

Traidcraft is also celebrating a record Christmas, when its sales increased by 14% compared with the previous year.

It said that In the nine months to December sales were up by £1m, indicating last year's record turnover of £10.3m would be surpassed.

The charity has seen five consecutive years of growing turnover and sales have increased by 40% over the past two years.

"People are more socially aware nowadays. I think they really want to put their money were their mouth is," said a spokeswoman.

"Unfair" trade

Traidcraft, set up in 1979, is an independent organisation and a member of the Fairtrade Foundation.

It sells food and craft products from some 100 different producer groups based in Africa, Asia and Latin America.

It was set up to challenge what it calls the "unfair" way in which international trading systems are usually structured.

Traidcraft gives producers a fair price for their goods, which are sold in supermarkets, in churches and through catalogues.