The Business Implications of Certifications

Certifications have provided companies with a set of audited standards that can help ensure the values they have committed to are practised throughout their supply chain and assure consumers that their products are being sustainably sourced while also ensuring equity, safeguarding the planet, and often both. But certifications come at a cost — to the producer and the coffee or tea brand seeking the certification. By Anne-Marie Hardie.

Over the last decade, there have been drastic improvements in the agricultural and labour practices within the tea and coffee industries. Despite these improvements, there continue to be reports of child labour, extremely low wages, inequitable labour conditions, and the use of carbon-intensive practices. Investing in the certification process has provided companies with a set of audited standards that can help ensure the values they have committed to, are practised throughout their supply chain.

“For tea and coffee companies, our supply chains are incredibly complex and often reach into remote regions,” said Jamie Horst, chief purpose officer of Traditional Medicinals.  “Getting comprehensive data from all those suppliers can be a significant logistical challenge, requiring the cooperation of everyone in the chain.” Certifications, along with their external auditing process and industry expertise, can help navigate those challenges.

“If you go for responsibly sourced certified coffee, you protect your brand because you know there’s no greenwashing; it’s third party certified,” said Dilara Celik, partnerships and
cooperations manager, 4C Services. “On the producer side, you are well prepared to go into negotiations to provide that premium that pays for the efforts they put into producing the coffee.” She shared that one of the benefits of partnering with a certification, such as 4C Services, is that the set of standards is consistent with the EUDR regulation. “We are experts in regulations, and we provide solutions that the coffee roasters or intermediary buyers need; for example, we are one of the only certification systems on the market that offers an EUDR onestop solution,” said Celik.

Paul Rice, founder of Fair Trade USA, explained that there are three value-creation opportunities or benefits associated with certifications. These are reputation, specifically risk mitigation, supply chain resilience and brand differentiation. “Companies know that if they depend on high-quality coffee, they’re going to have to take care  of the farmer. Trickle-down economics does not work if you do not have a transparent and traceable supply chain,” he said.

The motivation for opting for certified coffee or tea depends on both the company’s needs and the consumer’s demands. “A number of the roasters that I talked to say their certified businesses are probably more resilient and able to survive a price hike better than other tiers of coffee,” said Rice. “The specialty coffee consumer is still pretty committed to sticking with that affordable luxury, even if it’s a dollar a pound more expensive now.”

It is often a delicate balance, which involves reviewing the various certifications to determine the best fit. “The industry, therefore, confronts a tricky balancing act: sustainability is essential, yet it must be achieved cost-effectively. Clearly, action needs to be taken,” said Ilaria Abagnale, consultant at Euromonitor International. “Focus on energy efficiency, shorter supply routes, alternative ingredients, reductions in waste products, and less water usage are all options being pursued that reduce both costs and carbon footprint.”

Wild Orchard Tea Company’s tea is grown on a 1,000-acre farm using regenerative practices. When seeking out certifications, it wanted one that reflected its commitment to soil health, biodiversity, and carbon sequestration. “We prioritised certifications with global recognition that would support our expansion into health-forward retail, D2C, and foodservice channels, as well as our growing partnerships as a regenerative organic ingredient supplier,” said Michael Ham, founder of the company.

The requirements within the Regenerative Organic Certification aligned with Wild Orchard Tea’s values, and so, in 2022, it decided to become the first tea farm to achieve this certification. Ham shared that having this certification has helped secure several placements and partnerships, including Whole Foods Market and Sprouts (a natural- and organic-focused grocery store chain in the United States), as well as Michelin-starred chefs, foodservice providers, and mission-aligned companies, such as Steaz and Nourish Cold Press Juice, which were specifically looking for ingredients with verified regenerative organic credentials. It has also helped to open conversations with global sustainability leaders, co-branding partners, and institutional buyers.

“Our certifications have enabled us to tell a powerful, trust-based story — not only about tea quality, but also about our climate impact, commitment to farmer welfare, and protection of biodiversity,” said Ham. “This has helped us build deeper loyalty with conscious consumers and premium buyers.”

Purity Coffee invests in several certifications, including USDA Organic, Bird Friendly Coffee, and B Corp. “There are multiple reasons why certifications are important for us, but one of them is transparency, the fact that there’s an outside validation that the farmers are following the necessary things that will produce a healthier coffee plant,” said Andrew Salisbury, founder and CEO of Purity Coffee. Salisbury developed his business by sourcing the healthiest coffee, including being grown organically and high in chlorogenic acid (CGA). During the research process, he discovered that the type of coffee he was seeking was consistently produced in farms that followed the Bird Friendly-certification standards.

“One of the requirements of the Bird Friendly program is the coffee has to be, of course, certified at the producer level but then travel through the licensed importers that are involved in our program to the licensed roasters,” said Kirstin Hill, program manager, Smithsonian Bird Friendly Coffee. “So, the licensed importers kind of get this exclusive access to this growing community of roasters who are roasting and selling bird-friendly certified coffees.”

Traditional Medicinals also holds multiple certifications, including Fair for Life, FairWild, and USDA Organic, each serving a distinct purpose within their comprehensive approach to operating sustainably. The set of standards in B Corp provided Traditional Medicinals with a comprehensive way to measure its performance, from its supply chain to its treatment of employees. “The B Corp recertification process pushes us to keep raising the bar for ourselves with each cycle, and there’s power in transparency about the certification journey,” said Horst. “When we share the challenges we have faced and how we’re addressing them, it builds credibility with our stakeholders. People appreciate knowing that creating positive impact is an ongoing process and that we are committed to transparency throughout the journey.”

The scale of impact that companies can achieve through certification makes it a key driver for investment. “Companies that join our Rainforest Alliance program often do so because they want to build more resilient supply chains, improve traceability, demonstrate their commitment to sustainability to consumers, reinforce stakeholder and shareholder trust, and access reliable data to meet ESG and regulatory expectations,” said Joel De Figueiredo, tea markets lead, Rainforest Alliance.

Balancing Costs with Benefits

When asked about their decision to invest in certifications, including Rainforest Alliance, Fair Trade Organic, Organic Certified by the Minnesota Crop Improvement Association, and Kosher certification, Verena Street Coffee emphasised that these decisions were not made to check a box. “Certifications reflect our broader mission: to offer craft-roasted coffee that’s ethically sourced and sustainably grown,” said Eric Gantz, co-founder of Verena Street Coffee. “Certifications have made us more disciplined in how we source and trace our coffee, leading to a more consistent supply chain. On the supplier side, we have built stronger partnerships with farms that share our values and meet the standards we are committed to.”

According to Mintel Reports UK, Everyday Sustainability, 2023, 44 percent of UK consumers say they trust third-party certifications for sustainability. In addition, Mintel Reports Global’s Global Outlook on Sustainability: A Consumer Study, 2023, revealed that 36 percent of UK and Canadian consumers and 46 percent of Chinese consumers stated that recognisable certifications motivate them to buy environmentally friendly products.

Consumers are increasingly seeking out companies that align with their values, including those with environmental and social sustainability commitments. “While many consumers remain interested in sustainable options, there is a noticeable rise in scepticism around greenwashing claims, and they are looking for more trustworthy products,” said Abagnale.
Certifications have become a means of externally communicating a verified set of standards that companies adhere to. It helps ensure that sustainability initiatives and commitments are followed through while also providing transparency into the practices across the supply chain. Investing in certification requires both a shift in practices and the capacity to implement these practices consistently.

This poses challenges throughout all levels of the supply chain, but particularly for smallholders and the commodity-priced sector.

On 12 May 2025, Rainforest Alliance received a letter from the Government of Kenya requesting the suspension of tea certification activities for Rainforest Alliance-certified operations in Kenya, which primarily affects small-scale tea factories and their farmers. Withdrawing from this certification, shared Christine Simon, business development at Buy Kenyan Tea, improves both the short-term cash flow of producers and their operational flexibility.

However, withdrawing from this certification, Simon stated, involves risks to market access and competitiveness, including possible exclusion from premium buyers or reduced price premiums.

Rainforest Alliance is currently engaging with the Kenyan State Department of Agriculture to gain clarity and work towards a joint resolution as soon as possible. The organisation has also contacted all certificate holders in Kenya to advise them that their certificates remain valid until their expiration dates, enabling the farmers to sell their tea as certified. “We are committed to working in close collaboration with all supply chain actors to effectively address the ongoing challenges in the Kenyan tea sector and to continue supporting our partners,” said Rainforest Alliance in a statement, adding, “we do not know what prompted this action, other than there has been a change in the Ministry of Agriculture in Kenya, and there is a new Cabinet Secretary of Agriculture. We hope to have more information soon.”

Although it is too early to assess the business and environmental impacts of this potential withdrawal, it has highlighted the fact that significant barriers remain throughout the supply chain. New certifications are being developed to help address these barriers, including hybrid models, which are being created in producing countries.

Investing in certifications has helped strengthen consumer confidence that they are investing in a value-aligned product, while also ensuring that the supply chain is committed to sustainable and equitable practices. However, several barriers still prevent some sectors of the coffee and tea supply chain from investing in these practices.

“Ultimately, certification [should be viewed] as one tool among many to enhance sustainability, market access, and competitiveness — balancing certification benefits with local realities and buyer expectations,” said Simon.