Fair Trade Certified Labels Sell Coffee

SHARE:

Email

Print

LinkedIn

Facebook

Twitter

May 9, 2011

The prominent appearance of the Fair Trade Certified label increases sales among coffee-buying consumers, according to joint research conducted by Harvard Univeristy, the London School of Economics and Massachusetts Institute of Technology.

Over the course of six months, the research team examined the purchasing behavior among consumers at 26 grocery stores and found that the Fair Trade Certified label alone had a large positive impact on sales. In fact, they found that sales of the two most popular bulk coffees sold in each of the 26 test stores increased by up to 13 percent when labeled as Fair Trade Certified.

The study also revealed that a substantial segment of consumers are willing to pay up to 8 percent more for a product bearing the Fair Trade Certified label.

The findings are consistent with a Globescan study conducted in 2010, which revealed that 75 percent of consumers said Fair Trade certification makes them feel “very positive or positive” about products, according to Fair Trade USA, a leading third-party certifier of Fair Trade products in the United States. The 2010 research also found that 30 percent said Fair Trade is “likely to increase their purchase interest;” and more than 50 percent said “independent third-party certification is the best way to verify” a product’s social and environmental claims.

According to Michael J. Hiscox of Harvard University, his research team’s findings “suggest that there is substantial consumer support for Fair Trade. The Fair Trade label by itself had a large positive effect on sales, indicating that a substantial number of coffee buyers place a positive value on Fair Trade certification.”

Read These Related Articles:

• Research: Private Label Coffee Introductions Trump Premium Brands
• Eight O'Clock Uses Social Media to Stimulate Consumer Loyalty
• Sam's Club Unveils New Fair Trade Store Brand Coffee From Brazil

Most Read

Guest Columns

Grocery Aisle Innovation Key to Retailer and Consumer Cost Savings

Retailers are redesigning the aisle, appealing to environmentally friendly consumers and capitalizing on market trends to make their private label brands more competitive.

Source: Tetra Pak Inc.

How to Develop a Private Label Expression Aligned with Retail Brand Strategy

By creating private label as a marketing tool rather than just a price alternative, retailers gain the opportunity to tell a complete brand story while simultaneously boosting customer loyalty.

Source: CBX

Using the Store Banner to Endorse Private Label Architecture

Although the economic downturn accelerated private label growth in Europe, there was another key driver -- retailers started to brand their stores.

Source: IPLC

See All Guest Columns »

Press Releases