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Origin Story Connecting with the consumer Tim Hunt General Manager - - PowerPoint PPT Presentation
Origin Story Connecting with the consumer Tim Hunt General Manager - - PowerPoint PPT Presentation
Origin Story Connecting with the consumer Tim Hunt General Manager Food & Agribusiness Research 26 th November 2018 Australia and New Zealand What is an origin story? 2 A brief outline of where we are headed Section 1 Context of
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A brief outline of where we are headed
Section 1 Context of consumer engagement is changing – fast ! Section 2 Priorities vary considerably between markets Section 3 Industries are now responding Section 4 How can the NZ dairy industry capitalise ?
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Food demand growth is concentrated mainly in emerging markets
Source: FAO, 2009
Net Trade in Food
An increasing share of global food production will travel long distances, across borders and into less developed supply chains Consumer priorities in emerging market can be different to ours
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In advanced economies, consumers are becoming interested in more than quality and price
None of these attributes are self-evident at purchase or consumption
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Trust in institutions is in decline
Markets EPA Official Accused of Helping Monsanto ‘Kill’ Cancer Study The Guardian Chairman of UN’s joint meeting on pesticide residue co-runs scientific institute which received donation from Monsanto
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Social media is facilitating lower barriers to entry
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Retail models are also starting to change
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Technology is increasing our ability to trace products
Is it the real thing? What is in it ? Where do the profits go? Beneath the accreditation The whole story
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A brief outline of where we are headed
Section 1 Context of consumer engagement is changing – fast ! Section 2 Priorities vary considerably between markets Section 3 Industries are now responding Section 4 How can the NZ dairy industry capitalise ?
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USA: The media narrative on food supply chains in the US is revealing
Summary of 13 years of film making: The supply chain is producing food that is unhealthy, in a way that is environmentally harmful and abusive of both animals and employees (and sometimes farmers) Change the way you eat/vote to address this
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USA: Social media acts as an echo-chamber to re-enforce views
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Consumers looking for more natural/less industrial food
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In China – Safety Remains the #1 Trust Issue in Food
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In China – Safety Remains the #1 Trust Issue in Food
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Imported food sales are still rising rapidly as a result
0% 5% 10% 15% 20% 25% 30% 35% 40%
- 50
100 150 200 250 300 350 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Import penetration '000 tonnes Import volume Import penetration (import/market volume estimate)
Chinese Imports of Infant Formula
Source: Customs Statistics, Rabobank
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Supply chain concerns can kill new categories
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Point of origin sustainability is lower down the list
2016 Palm oil buyers scorecard’ by WWF
….Asian markets – particularly India and China – are lagging way behind The little sustainable palm oil (China) imports is driven by demand from multinationals…
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A brief outline of where we are headed
Section 1 Context of consumer engagement is changing – fast ! Section 2 Priorities vary considerably between markets Section 3 Industries are now responding Section 4 How can the NZ dairy industry capitalise ?
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USA: Holistic trust via 3rd party accreditation
Danone’s North America Business Receives B-corp certification
12 April 2018
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USA: Multi-level pitch that’s cuts through
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China: Offshore presence to create ‘halo’ effect
Source: AFR November 2018
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Companies creating ‘clean’ products
Only milk and culture Ingredients: Fresh raw milk, and 3 types
- f live cultures
No added food additives:
- No thickeners
- No colourants
- No fragrances
- No sugar
The yoghurt comes with a honey pouch for you to add based on your preference.
The honey pouch under the lid. No additives Pure and genuinely true Only milk and live cultures The label Brand name: Ru Shi Meaning: as is, truthful
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A brief outline of where we are headed
Section 1 Context of consumer engagement is changing – fast ! Section 2 Priorities vary considerably between markets Section 3 Industries are now responding Section 4 How can the NZ dairy industry capitalise ?
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How can NZ (and its farmers) capitalise?
- dislocation of local producer community and offshore customers creates a challenge to monetise
sustainability
- pasture base and sustainability will have to be sold as part of a package
- opening markets where sustainability is high on agenda will be valuable (UK, EU)
- defining terms, meeting them and being able to prove they have been met will be important to the
long term sustainability of any value derived
- staying in control of your ‘origin story’ is crucial
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In the real world, origin stories can be re-written
1950s “Macaque fruit” 1950s “Macadamia” 2018 “Qiyi guo” 2018 “Hawaiin nut”
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