Journal of Rural Development
Exploring Consumer Value of Certified Sustainability Labels of Local versus National Brands: A Case Study of US Coffee Consumers
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AuthorYoo, Juyoung
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Publication Date2026.09.21
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Original
Despite growing consumer interest in sustainability certifications, little is known about whether their value differs between local and national coffee brands. Using a discrete choice experiment with 893 US coffee-shop patrons, we estimated willingness to pay for four certifications (Fairtrade, USDA Organic, Rainforest Alliance, and Carbon Trust) on bagged coffee from a respondent-identified local shop versus three national brands, with a mixed logit model including brand-label interactions. Sustainability labels do not uniformly add value, and the value of some certifications depends on the brand. USDA Organic generates significant premiums for national brands but no measurable value on local bags. Carbon Trust, the least familiar label, interacted positively with the national brands and earned a $1.83 premium on Starbucks bags, the most robust result across specifications. No certification generated a premium on local bags at the 5% level; Rainforest Alliance indicated only weak (10% level) evidence of a local premium. These findings caution local coffee retailers against assuming that certification costs can be recovered through label premiums; certification adoption should be evaluated selectively in light of brand context.
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