For Wal-Mart, Fair Trade May Be More Than a Hill of Beans

That is why the Bom Dia packaging room is filled with pallets of Marques de Paiva coffee ready to ship to Sam's Club. Wal-Mart's code of conduct for suppliers is posted at the entrance. The nutty aroma of roasting coffee lingers outside the building.

If Bom Dia expands from hundreds of Sam's Clubs to thousands of Wal-Mart stores, Alcantara estimated, sales could easily double.

At Wal-Mart, executives say a rebirth is occurring inside their no-frills headquarters. "Sustainability" and "trend-right" have entered the corporate lexicon alongside "everyday low prices." Chief executive Lee Scott drives a Lexus Hybrid.

Greg Spragg, executive vice president for operations and the No. 2 guy at Sam's Club, has christened Bom Dia's coffee his "volume producing item," which means everyone down the ladder is focused on boosting sales. "I really felt like it was important to be able to put the words that we had been using around sustainability [and] kind of bring them to life in an item," Spragg said from Wal-Mart headquarters. "What we had in these products were really great quality items at an extraordinary value."

It remains to be seen whether shoppers will buy the story.

The Organic Consumers Association posted a notice on the Web about the fair-trade and organic coffee at Sam's Club that urged shoppers to patronize independent cafes and roasters instead. Ronnie Cummins, the group's national director, said the most common complaints about Wal-Mart -- that it runs out small businesses and lowers prices and wages to unsustainable levels -- do not disappear just because the merchandise changes.

Marketing consultant Simon Sinek, who teaches at Columbia University, said labels such as "organic" and "fair trade" may work against Wal-Mart because they are losing resonance with shoppers. "Wal-Mart is the absolute pinnacle of mass market appeal," Sinek said. "If Wal-Mart is selling it, then it's not a big deal."

There is a saying that Cafe Bom Dia's Alcantara likes to repeat: "When you're working with the world's largest retailer, you can never win. You can only be winning."

Pereira's co-op depends on Bom Dia and Wal-Mart for fair-trade prices. For most fair-trade farmers, finding a willing buyer is the most difficult part of the process. About 35 to 45 percent of fair-trade-certified coffee is actually sold at fair-trade prices, according to TransFair USA. The rest goes for market value, undistinguishable from regular coffee.

If Wal-Mart has a change of heart -- if Bom Dia goes the way of Millstone -- the effect could be devastating. Wal-Mart acknowledges that.

"I think whether you say it or not, you're putting all of your eggs in one basket," Mark Hoffman said.

Alcantara has a packed itinerary for the Wal-Mart executives. A tour of Cafe Bom Dia's headquarters. A horse ride through a hillside farm. Passion fruit caprinhas and music.

But perhaps the most effective pitch will be trips to coffee farms. Pereira's home is on the agenda. Wal-Mart will come right to his door.

Pereira is not sure what he will say to the company that could determine his future.