How does labeling works in Azerbaijan? If we look around us, we can notice that most of the products we use have icons on them, which we call labels or sustainable certification. This term refers to standards related to some issues like food, social and environmental, and it is taken by companies to show off their quality and performance to some people. This so called “labeling” started in 1980s and 90s when some labels, called “Ecolabels”, were introduced to the world. However, after 90s, the number of these labels has rapidly increased. There are two premises of these sustainable standards. First, they began to appear in the places where legislation was not so powerful, and these places demanded some action. Especially, NGO movements around the world needed these actions that were also supported by the consumer. The most interesting factories like Nike, Levi Strauss and other famous brands helped to create the welfare standards. Second, in order to show the truth about both environmental and organic values of products, which helped to increase the number of labels tremendously. We can show FLO International as an example that gained huge success and sales in the world because of their product. Other example is Forest Stewardship Council’s Standards (FSC) used for many products made from trees. However, there are some problems between consumers and B2B standards that lead many buyers to buy only something with a certain label: for example to buy books with only FSC mark. In order to solve the problems like these, the State of Sustainability Initiatives was created, which is funded by the UNCTAD and the IISD. There has been a rapid development in the number of people who want to buy products with labels over the past years. The improving role of sustainability standards in commerce is not the only part of their role; they can also affect to public policy. They were acknowledged as main aspects for public law, to be the main foundation and core some laws, and they can be precursors to new law. Understanding and acknowledging the main roles of these standards in governance is very important. However, while many researchers can recognize the importance of these standards keeps growing , some policy makers and the general public neither do not know about their importance or have a hard time to understand this issue. If the people do not understand and realize the true meaning and role of these standards, they are not going to fully reach their full potential. When company creates some label, it requires its time and some financial investment. The leader of this company must make this brand known and have to be sure that it will gain them some benefit. Then there should be some sacrifices in marketing costs in order to explain this standard and how it will benefit them. Anyone who works in sustainability have to show what it means to offer a “responsible”, “green” product, or it is going to be tough to create a product that should be benefical. The labels has their own advantages and disadvantages. The labels help to improve the economy and to create new innovative ideas. Private labels offer retailers control over different things such as , price, size, production and especially distribution. It is also advantageous because it can make quick adjustments to some products according to the taste of customers. Compared to the some national brands, retailers can change customer’s experience to some level. For example, retailers can use new technological advances such as shelf displays or brand blocking to make private labels to be much more improved than national labels. "The need for affordable packaged goods solutions is high, and private label products are going a long way toward answering that need," Thom Blischok, Consulting and Innovation president at Information Resources Inc., told Packaging Digest. The most significant advantage of store brand labels during economic downturns is that price gains importance as consumers increasingly turn to money-saving strategies like increasing private label brands to manage budgets. Organic methods also contribute to product quality, and the certification (which Fetzer has held for 20 years for the Bonterra brand) is so intertwined with the brand that it would be difficult to tease out the benefit of the certification from the demand for the Bonterra brand itself. The Fetzer winery also is certified by the California Certified Sustainable Winegrowing program (CCSW).
Although the benefits of that particular certification program are less clear in the market currently, Thrupp commented, some buyers are paying attention to sustainability standards as well, so it makes sense for their company to have third-party verification of their track record of using comprehensive sustainable approaches.Another example of the benefit of standards for clarification is in the supply chain. "Standardization begets commoditization," says Tim Mohin, Director of Corporate Responsibility for AMD. "And while I don't know if the industry is ready for broad sustainability standardization, it is very helpful for areas that are complex, such as in the supply chain, where conformance is necessary."Does adherence to standards allow companies to reap the benefits of sustainability?Mohin points out, though, that the commoditization that accompanies broad sustainability standards is not necessarily conducive to business advantage. "The alignment of CSR with specific strategies, operations and products of a given company almost defies commoditization. Creating differentiation can create specific business benefits."
The Constitution of Azerbaijan, adopted in 1995 and amended in 2002, enshrines the right of citizens to a healthy and clean environment. The Constitution also outlines the division of environmental responsibilities between central and local bodies. The 1992 Law on Environmental Protection and Utilization of Natural Resources introduced, among other things, the polluter-pays principle, opened the door for the use of economic instruments, envisaged the bridging of the gap between existing end international environmental standards, and enhanced the role of public awareness. Activities gathered pace with the political stabilization after 1995. The most important environment-related pieces of legislation since then are listed in Appendix 5.The Law on Environmental Protection and the Law Environmental Safety of 1999 are central. Among other provisions, Chapter 7 of the Law on Environmental Protection defines the practices and procedure of conducting environmental expertise. Appropriately, the new legislation has a framework character, and its effectiveness depends on the quality of implementation rules and regulations. The almost automatic presumption that a new law has to be an improvement over the old one tends to be justified in FSU countries, simply because the new socioeconomic reality is so different from the old one. However, transition economies offer a very large number of examples where new laws were constructed and drafted poorly, or, finally, where the speed of change in underlying conditions surprised the legislative framers. Some laws then become dated very quickly, requiring amendments, too many of which add to a sense of legislative and regulatory flux, with its drawbacks. Azerbaijan conducts work to protect the copyright of digital content on the Internet.The Ministry of Communications & IT of Azerbaijan informs that the Copyright Agency along with development of e-services is fulfilling work on copyright protection to create system of e-services for digital rights management and licensing in digital networks.The Agency’s preparatory work aims to develop e-services to order on control marks for labeling of products relating to intellectual property, in particular phonograms, audiovisual works distributed through retail sale, equipping them with numerical codes.The Agency also carries out work to organize the Center for Intellectual Property and implement control holograms used for labeling products of intellectual labor, including purchase and installation of relevant equipment.
We also have our own labels and keep creating new ones. The renewed 'halal' standard will soon be applied in Azerbaijan's food market that almost fully covers its consumers' demand. The State Committee for Standardization, Metrology, and Patents will sanction the new "halal" standard in April 1, 2014, to protect consumers' rights, prevent unhealthy competition, and increase public confidence in the domestic market.

The requirements are based on Islamic rules and extend to ingredients, preparation rules, storage, transportation, and employee requirements for production facilities.This standard will set requirements on special packing, marking, export, and import.The new quality standard is expected to boost "halal" products in the market and lead to positive tendencies."The new standard will increase competition among local producers, which will lead to price reduction," expert of the Center for Economic and Social Development Narmin Ibrahimova told AzerNews. "Furthermore, the new quality standard will promote the use of new technologies. "She said "halal" products will increase the consumers' confidence and the demand for these products in the country. "The new quality standard will have a positive impact on the export potential of such products, as the standard will meet respective international standards," she concluded. Islam has the dominating position in Azerbaijan, since approximately 95 percent of its population is Muslims. Naturally, "halal" products, which are allowed to eat or drink under the Islamic law, are in high demand among Muslims. Azerbaijan's local market offers a range of various "halal" foodstuffs for customers, which mainly include sausages and chicken products. The customers believe that the label "halal" means the products really meet all the requirements of this standard.Halal certification is the recognition that the products are permissible under Islamic law. These products are thus edible, drinkable, or usable by Muslims. Muslim followers cannot consume pork or pork-related products, animals that were dead prior to slaughtering, animals not slaughtered properly or not slaughtered in the name of God, and products that have blood.Azerbaijan approved three state "halal" standards which came into force on August 1, 2012. Until now none of the meat-food producers has ever applied to the Committee for getting the standards and produce fully "halal" food products.The State Committee said the enterprises selling such goods will be given time to change the labels of the products, otherwise such products will be removed from the market.The Committee will carry out its monitoring after April 1, and in case of finding cases of groundless label "halal", measures aimed at suspending sale and production, as well as penalties, will be applied against the producers.
Despite all of these, we also had some bad terms with our neighbors about labeling especially with Armenia. The State Committee for Standardization, Metrology and Patents stated Armenia-labeled products were revealed in Masalli region of the country. Goods found at the site of wholesale trade are the products of the Armenian company "Sevan" (dried fruits and sweets).How Armenian goods enter Azerbaijani market? Through which foreign markets they are supplied? Chairman of the Union of Free Consumers (UFC) Eyyub Huseynov answered the afore-said questions. Huseynov said the organization he leads has repeatedly raised the issue that Armenia-labeled goods are sold in Azerbaijan."We have notified related bodies so that they will take all necessary measures to prevent the import of Armenian products to our republic. Unfortunately, in Azerbaijan it is still possible to meet Armenia-labeled products, but it is not widespread,” he said. “I think that the authorities should think seriously about it, they should strictly monitor food products imported to the country all border crossings. In our office there are examples of Armenian cognac "Jubilee", wine "Arena" cigarettes "Sigarollo and coffee packaged in Armenia,” Huseynov said. "Markets Sadakhli, Tausch, Red Bridge located on Georgian territory is a place for daily meetings of Georgians, Azerbaijanis and Armenians. It is possible that the Armenian goods are imported into the territory of Azerbaijan from those markets. It is possible that the Armenian products are imported into the country from Iran,” he said. “The fact that products labeled in the Armenian language were revealed in Masalli region of Azerbaijan means that the transport of these products to the country is deliberately organized. There are cases when Armenian goods are smuggled to Azerbaijan in bags. I want to emphasize that the Armenian goods are not sold in Baku stores. They can be found in the border areas.” "The laws of the Azerbaijan Republic on state language and on food states that label of all products sold in Azerbaijan must contain not only foreign, but also the Azerbaijani language. Unfortunately, goods only with foreign labels imported to Azerbaijan. Of course, goods must also be labeled in Azerbaijani,” he said. In this regard, we have repeatedly appealed to the authorities and the Customs Committee. But the biggest trouble is the smuggle of goods produced in Armenia to the country. We must somehow stop the import of Armenian products to the Azerbaijani market,” Huseynov added.
In order to learn how labeling does work in Azerbaijan, especially in Baku, we went to the Bazarstore, which is one of the biggest stores in Baku, and checked some products. When we check these labels on the products, we have to be very attentive about the information about the product. First of all, label has to tell the truth. For example we checked some sausages from the “Halal Dad” company, and noticed that its label matches it name. Also it is recommended to through the percentage labeling. It shows the main ingredients inside of the product and some elements that can be dangerous for your health. Our group checked “Natakhtari” lemonades. Group members looked for its label in order to know whether it matches with lemonades name. Then we looked for its percentage labeling. It contains fruits, water, sugar and some chemical elements like natrium benzoit, E-150d, E-122, E-131 and others. We also saw the label of Coca-Cola. It has one of the simplest labels in the world, yet the sales of it shows how can the company gain bigger sales with that kind of labels. Another interesting label was “Krepkaya”, which was developed for our market. Label design is very good which was performed in classic style and the main point is that it shows its nature. They used some modern technologies to create this label. The colors are vivid and completes the label. Some labels can increase the popularity of product, and it does not depend on whether it is bad or good. For example, there is a label on the pack of cigarette saying that this is going to harm your health and it can kill you. The percentage label also supports it by showing how much nicotine inside of one cigarette. However, the sale of cigarettes is one of the biggest sales in the world. This situation can be clearly seen in the case of alcohol too. Despite the information the sales of alcohol keeps increasing day by day. For example, in 2007 the volume of distilled spirits increased by 2.4%. In 2008 sales increased by 4.6%, to 19$ billion. The revenue of Vodka increased by 7.65%, growth was $4.3 billion. Rum’s revenue growth was 8.9%-$2.1 billion. Whiskey improved its growth to with 3.8%-$5.2 billion. Especially whiskey could achieve very high growth and it again proved that despite the label, product can be successful in the market. We also went to check some other products like, especially sweet ones-Kinder, Nestle, Mars and etc. The same situation with cigarettes and alcohol, also happened to these one. When we checked their percentage labels, we could see the high level of calorie: 126 kcal, 210 kcal, 80 kcal and etc. Some people, especially fat ones with their weight problems, have to consult with their doctors before eating these kind of products.