Data loading...

MSC To Reduce Logo Fee To Boost Use Of Ecolabel

The Marine Stewardship Council (MSC) is introducing a revised charging structure for ecolabel license holders from 1 April 2013. The fee structure will be more related to the volume of business, creating a sliding fee with an increase in value of sales. This way the organization hopes to incentivize an increase in certified products from key high-volume supply partners. 
The revised pricing model incorporates a tiered volume royalty rather than the current single fixed percentage rate and will reduce the effective logo fee charged on the sales of MSC certified and labeled seafood sales for the majority of MSC’s current logo licensees. Smaller businesses will also see benefits with a single fixed fee and the elimination of all logo fees that would have been due on sales of certified and labeled seafood.
The different strands within the revised pricing model are designed to meet the needs of both large and small companies and to promote and incentivize the use of MSC’s consumer-facing ecolabel. Companies generating over 75 percent of total royalty income will benefit from this new charging regime.
‘The MSC has been listening to its stakeholders. We are introducing this revised charging structure after extensive consultation with our partners and supporters. The new structure will reduce the overall costs of participation in the MSC programme and add value to those companies who share our vision of healthy and productive oceans. We also hope it will encourage greater use of the ecolabel in the global marketplace that is increasingly demanding credible, third-party and fully traceable assurance of the sustainability of its seafood choices.’ said Rupert Howes, MSC CEO.

Increasing the value proposition for all MSC partners and where possible, taking out costs and complexity whilst maintaining the rigor of the programme, is one of the core strategic objectives as outlined in MSC’s new Strategic Plan, covering the period 2012-17.
Effective 1 April 2013, the beginning of the MSC financial year, the revised royalty arrangements will be as follows:
•        The royalty fee of 0.5% will be tiered to decrease as the value of sales of MSC labeled products rises. In the tiered system, adding new products will result in a progressively lower rate, which is designed to incentivize an increase in products from key high-volume supply partners.

•        Independent outlets such as fishmongers and restaurants trading less than £125,000 (USD 200,000) wholesale value of MSC labeled products annually will pay a fixed fee of £156 (USD 250)  annually rather than a fee based on percentage of sales. Small businesses will no longer pay the volume licensing fee.

The annual fixed fee will make the MSC programme more accessible to small businesses such as independent restaurants and fishmongers by making costs more predictable upfront, reducing uncertainty and minimizing any administrative burden of tracking and reporting sales. It will also encourage use of the MSC ecolabel in these settings.

The tiered royalty fees for higher-volume licensees and fixed fees for small businesses will be implemented across all markets globally.