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What does Fair Trade really mean? And, how does it stack up with consumers among the proliferation of eco-labels? Taiga has a good definition: Fair Trade 101. It doesn’t answer the second question, however, as to whether the label is meaningful to consumers. The bottom-line is that it’s not widely recognized or understood. It doesn’t come close to labels like Energy Star, with over 70% consumer awareness, or Good Housekeeping. It appeals to a niche audience who’s looking for the more socially conscious option in specific product categories, like coffee or tea, and even in specific retail locations. I’d venture to guess that most grocery retailers have at least one product with the fair trade seal, but it’s probably not much more than that. The question is how much shelf life does it have? Will it continue to provide a valuable differentiator for some consumers or it will fade away and be replaced by new and expanding eco-labels such as Good Housekeeping Green, UL’s new green label or Green Seal. Time (and money) will tell.

What does Fair Trade really mean? And, how does it stack up with consumers among the proliferation of eco-labels? Taiga has a good definition: Fair Trade 101. It doesn’t answer the second question, however, as to whether the label is meaningful to consumers. The bottom-line is that it’s not widely recognized or understood. It doesn’t come close to labels like Energy Star, with over 70% consumer awareness, or Good Housekeeping. It appeals to a niche audience who’s looking for the more socially conscious option in specific product categories, like coffee or tea, and even in specific retail locations. I’d venture to guess that most grocery retailers have at least one product with the fair trade seal, but it’s probably not much more than that. The question is how much shelf life does it have? Will it continue to provide a valuable differentiator for some consumers or it will fade away and be replaced by new and expanding eco-labels such as Good Housekeeping Green, UL’s new green label or Green Seal. Time (and money) will tell.

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