Terry Fleck Executive Director, The Centre For Food Integrity ! - - PowerPoint PPT Presentation

LUNCHEON KEYNOTE PRESENTATION CRACKING THE CONSUMER CODE: BUILDING TRUST IN TODAY’S FOOD SYSTEM

Terry Fleck

Executive Director, The Centre For Food Integrity

!

Cracking the Code

• f Food Issues

Building Trust in Today’s Food System

Terry.Fleck@foodintegrity.org

• Mission:'To#build#consumer#trust#and##

confidence#in#today’s#food#system.'

• Vision:'Facilitate#dialogue#with#consumers#and#

the#food#system#to#create#be:er#alignment# with#consumer#expecta=ons.##

Center'for'Food'Integrity'

Breaking Through Consumer Skepticism

!

! ! ! ! !

CFI'Trust'Model''

Shared values are 3-5x more important to building trust than sharing facts or demonstrating technical skills/expertise

What Drives Consumer Trust?

FACTS SHARED VALUES TRUST

Sustainable'Balance'

Cracking'the'Code''

• n'Food'Issues'

'

Insights'from'2014'Consumer'Trust'Study'

Mom,'Millennials'and'Foodies'

Note:!These!groups!are! not!mutually!exclusive.! Respondents!can!qualify! as!more!than!one!(i.e.!a! Mom!who!is!a!Foodie).!! ! Just!less!than!half!did!not! fall!into!one!of!these! three!categories.#

Moms#30%# Foodies#21%# Millennials#37%#

N=2005#

Methodology'and'Sample'Data'

Online#survey#–#average#30#minutes# Na=onal#sample#–#2005#completed#surveys# Sampling#error#at##95%#confidence#level#=/N#2.2%## Gender#Sample#–#50%#male#and#50%#female# 60%#had#children#under#18#living#at#home;#58.2%#had#college#degrees# 80%#Caucasian/La=no;#8.9%#African#American;#6.6%#Asian;#3.1%#other# 53.4%#shop#once#per#week#for#groceries;#29.5%#shop#2x#per#week# 48.7%#Suburban;#32.5%#urban;#18.8#rural;#no#onNfarm#responses# 6.5%#vegetarian;#31.5%#conserva=ve;#37.1%#moderate;#26.8%#liberal;#4.6%#unsure# 27%#strong#consumer#advocates;#65%#of#foodies#are#strong#consumer#advocates# # #

All'of'the'Most'Concerning'Life'Issues'are'Beyond'the' Consumer’s'Direct'Control'

Women#were#more# concerned#than#men# about#most#issues#

Addi=onal#Food#System#Concerns*#

• Imported#Food#Safety#(63%)#
• Food#Safety#(62%)#
• Enough#to#Feed#U.S.#(55%)#
• Humane#Treatment#of#Farm#Animals#(49%)#
• Environmental#Sustainability#in#Farming#(49%)#
• Access#to#Accurate#Info#to#Make#Healthy#Food#Choices#

(49%)##

Lowest#concern#was#for#having# enough#food#to#feed#people#

• utside#the#U.S.#(33%)#

Early#Adopters#

Earlier#Adopters#were#more# concerned#about#all#issues#than# later#adopters#

*Top#Box#ra=ngs#(8N10)#

Moms#

• Rising#Cost#of#Food#

(8.71)#

• Keeping#Healthy#Food#

Affordable#(8.65)#

• Rising#Healthcare#

Costs#(8.51)#

• Rising#Energy#Costs#

(8.35)#

• Food#Safety#(8.29)#
• U.S.#Economy#(8.28)#

Top'Concerns'by'Segment'

Millennials#

• Keeping#Healthy#

Food#Affordable# (8.18)#

• Rising#Cost#of#Food#

(8.13)#

• Rising#Healthcare#

Costs#(8.09)#

• U.S.#Economy#(8.01)#

Foodies#

• Keeping#Healthy#Food#

Affordable#(9.27)#

• Food#Safety#(9.18)#
• Rising#Cost#of#Food#

(9.10)#

• Rising#Healthcare#

Costs#(9.08)#

• U.S.#Economy#(9.08)#

Early#Adopter#

• Keeping#Healthy#

Food#Affordable# (8.55)#

• Rising#Healthcare#

Costs#(8.50)#

• Rising#Cost#of#Food#

(8.47)#

• The#U.S.#Economy#

(8.44)#

• Rising#Energy#Costs#

(8.29)#

Right'DirecIon/Wrong'Track'

42%

Right Direction

27%

Unsure

30%

Wrong Track

Early Adopters 36% believe the food system is on the wrong track

48% Right Direction 32% Wrong Track

34% 38% 28%

Right/Wrong Moms Millennials Foodies Right Direction 36% 41% 49% Wrong Track 35% 33% 35% Unsure 29% 26% 16%

Right'DirecIon/Wrong'Track'

2014'Research:'Making'Science'Relevant'

• Consumer#concern#and#skep=cism#is#

understandable#

• Consolida=on,#integra=on#and#applica=on#of#

technology#prompts#concerns#about#who# benefits#

• Goal#–#not#to#win#scien=fic#or#social#argument#

but#to#find#more#meaningful#and#relevant#ways# to#introduce#science#and#technology ###

### # ##

The'DecisionMMaking'Maze'

Online'CommunicaIon'is'Tribal/Insular'

Consumer Consumer Consumer'

Traditional Communication Model Expert

Family

Online Friends

Neighbor

Family

Friend Tribal Communication Model

Family

Online Friends

Blogs

The'“Mom”'Tribe'

What'informaIon'sources'have'you'used'to'come'to'your' conclusion'that'GMOs'are'dangerous?#

# #

Heidi:#“I’m#part#of#a#moms# group.#When#there#is#a#big# consensus,#I#think#‘there’s# something#here.’#You#don’t# need#doctors#or#scien=sts# confirming#it#when#you#have# hundreds#of#moms.”##

2014'Research'…'' What'does'all'this'mean?''

Which'Messengers'are' Most'Trusted?'

It'depends…'

Trust'in'Sources'of'InformaIon'M'AnIbioIc' Resistance'

Sources'of'InformaIon' Total'' (A)' (Base)# (2005) # My#family#doctor# 7.22 # A#university#scien=st# 6.78 # A#scien=st#who#is#a#mom# 6.64 # A'veterinarian'who'treats'animals'raised'for'food' 6.54 # A'farmer'who'raises'animals'for'food' 6.39 # A#peer#who#shares#my#interests#about#food# 6.24 # A#state#government#scien=st# 5.82 # A#federal#government#scien=st# 5.77 # Someone#who#is#a#mom# 5.76 # A#wellNknown#food#blogger# 5.26 # Dr.#Oz# 5.12 #

Trust'in'Sources'of'InformaIon'M'GeneIcally'Modified'Foods'

Sources'of'InformaIon' Total'' (A)' (Base)# (2005) # A#university#scien=st# 6.66 # A#scien=st#who#is#a#mom# 6.41 # A'farmer' 6.31 # A#peer#who#shares#my#interests#about#food# 5.86 # A#state#government#scien=st# 5.83 # A#federal#government#scien=st# 5.82 # An#advocacy#group# 5.52 # Someone#who#is#a#mom# 5.39 # A#wellNknown#food#blogger# 5.07 # Dr.#Oz# 5.00 # A#celebrity#chef# 4.92 #

Which'Elements'Most' Promote'Believability'of'the' Message?'

Most'Impac[ul'Elements'for'Believability'

Accurate'PresentaIon'of'Risks:#Present#known#risks#since#known#risks#

“trump”#unknown#risks#by#accurately#communica=ng#safety#facts#

Openness/Transparency:'Acknowledge#both#sides#of#the#story,#

provide#level#of#depth#so#it#does#not#look#like#“holding#back,”#avoid#

• versimplifica=on#

Unifying'Message:#Singular,#compelling#message#that#touches#the#

deeper#drivers#of#human#behavior#N#values#

#

Fundamental'Message'Elements' Outrage'Factors'

Control:#Government#agencies#address#risks#competently# Process:#Company/Organiza=on/Agency#is#listening,#engaging#and# providing#informa=on#

Where'Consumers'Go'' for'InformaIon'

#1'Source'(33%'online)' Web'sitesM21%' FamilyNNot#OnlineN14%# GoogleM12%' Local#TV#Sta=onN12%# FriendsNNot#OnlineN11%#

Websites:'Top'Source'for'Food'System'Issues'

#1'Source'(37%'online)' Web'sitesM22%' FriendsNNot#OnlineN16%# GoogleM15%' FamilyNNot#OnlineN13%# FriendsNOnlineN8%# #1'Source'(37%'online)' Web'sitesM25%' FriendsNNot#OnlineN15%# GoogleM12%' FamilyNNot#OnlineN10%# Food#Specific#TV#Programs#

• r#NetworkN(9%#

Moms'

Millennials'

Foodies'

Early'' Adopters'

#1'Source'(41%'online)' WebsitesM28%' GoogleM13%' FriendsNNot#OnlineN10%# FamilyNNot#OnlineN9%# Local#TV#Sta=onN8%#

Trust'Building'Transparency'

Overcoming'the'Bias'Against'Size#

#

• Inverse relationship between size and the

perception of shared values

– Industrial processes = void of values – Mass production increases error – Profit ahead of principle

“I'believe'(size)'food'companies'are'likely'to'put'their' interests'ahead'of'my'interests.”' '

2013'Mean'6.06'

0% 20% 40% 60% 80% 100% 2013 15% 55% 31%

0 to 3 4 to 7 8 to 10

2013'Mean'7.38'

0% 20% 40% 60% 80% 100% 2013 6% 41% 53%

0 to 3 4 to 7 8 to 10

Small' Large'

Accuracy Relevance Stakeholder Participation Clarity Credibility Disclosure Motivations

Elements'of'Trust'Building'Transparency'

Strategic' Insights'

Transparency'Defined'

• Transparency#may#be#raBonally#defined#as#truthful#informa=on,#but#perhaps#

more#importantly,#it#translates#to#an#emoBonal#feeling#of#confidence.## #

# #

Two'Categories'of'Issues'

Direct# Impact#

NonN Direct# Impact#

Transparency##

Must'Have'InformaIon''

InformaIon'

Food'Neutral' Food'Aware'

Cost/value#

√#√#√#√#√#√#√#√# √#√#√#√##

Ingredients#(natural#and##ar=ficial)#

√#√#√# √#√#√#√#√#√#√#√#√#√#√#

Sugar#

√#√#√#√#√#√# √#√#√#

Salt#

√#√#√#√# √#√#√#√#√##

Calories#

√#√#√#√#√#√# √#√#√##

Fat#

√#√#√#√# √#√#√#

Carbs#

√#√##

Organic#

√# √##

Origin#(local)#

√#√#√# √#√#√#√#

NonNGMO#

√#√# √#√##

Gluten##

√#

CageNfree,#grassNfed#

√#√#√#√##

Hormones#or#an=bio=cs#

√#√#

Nutri=on#facts#

√#√## √#√#√#√#√#√#

Freshness#(expira=on#date)#

√#√#√#√#√#√# √#√##

Brand#

√#√#√#√# √##

Explosion'in'InformaIon'Sources'and'Interest'

“Sometimes word of mouth, family and friends who are

• knowledgeable. People share

information.” – Food Neutral “Labels are probably the biggest source.” – Food Neutral

“I tried [the Carl’s Jr.] burger too

because of the all natural claim in the commercial. “ – Food Aware “I have a lot of friends who have similar

• beliefs. I see stuff on Facebook or they’ll

recommend websites. For a while I was looking at a parenting blog. It’s like a rabbit hole. You fall down there and one thing leads to another and you have 8 tabs open.” – Food Neutral “Anytime I see a ‘do not eat these foods’ or ‘ten worst foods for X’ article, I tend to go see what they say.” – Food Aware

• Health concerns drive food information behavior. Participants

expressed concern about the connection between food and

• health. Many cite a chronic health issue as triggering greater

interest in food information.

– “You see cancer and stuff we’re getting more of. There’s more junk in food [and] more people are getting sick.”

• Manufacturers are held most accountable for transparency,

and they are not making the grade. Most participants are aggravated by what they view as intentional use of vague and/or misleading terminology in packaging and nutrition information. Most distrust manufacturer-generated information.

– “If you’re making food for a living, you’re going to put the least amount of information you can on it to make it sell.”

Strategic'Insights'

• Transparency expectations, standards and trust vary by

channel and product. More transparency expected from - and higher trust in - food co-ops and retailers such as Trader Joe’s than mass, chain or discount grocers. Most expect less from restaurants. Top transparency concern: meat, fish & dairy products.

• Consumers want clarity, simplicity and guidance. The top

complaint is ingredient list complexity. Many would like unfamiliar ingredients translated; expanded info on “hidden” ingredients bundled under ambiguous terms like “other natural ingredients;” and a nutrition rating or score system.

– “They group everything into ‘artificial ingredients.’ What are those ingredients? It should be more transparent.”

Strategic'Insights'

Key'Takeaways''

Believability'is'a'key'driver'in'creaIng'trusted'informaIon.' Evaluate#the#informa=on#you#want#to#share#against#the# Fundamental#Message#Elements#and#Outrage#Factors#and# modify#where#necessary.#(Let#us#know#if#CFI#can#help)#

#

IdenIfy'the'groups'you'would'like'to'engage.'## If#it’s#foodies,#think#about#their#values#and#their#concerns.# Think#about#the#sources#that#are#credible#to#them.#Listen## to#the#concerns#and#understand#their#values#before# developing#your#strategy.#

# #

Puing'the'Research'to'Work'

Meet'them'where'they'are.''

Today’s#monitoring#technology#allows#you#to#iden=fy#the#digital# and#physical#communi=es#where#conversa=ons#about#food#are# taking#place.#Select#those#communi=es#that#are#important#to#you# and#develop#engagement#strategies.#

#

# #

Speak'their'language.'

Choose#messengers#whose#values#align#with#the#values#of#your# stakeholders#(and#allow#messengers#to#be#themselves)##

#

Puing'the'Research'to'Work'

Develop'a'valuesMbased'engagement'strategy'that' starts'by'embracing'skepIcism'through'listening.# Build#a#rela=onship#before#sharing#informa=on.# Understand#and#respect#the#group#expecta=ons#and# cultural#norms.#Connect#through#shared#values.##

Puing'the'Research'to'Work'

2'M'Ask' 3'M'Share' 1'M' Listen'

Commit'to'engaging'over'Ime.## Building#trust#is#a#process,#not#an#event.# Con=nued#engagement#and#authen=c# transparency#build#trust.#

Puing'the'Research'to'Work'

Summary#report#available#at:## www.foodintegrity.org## # # For#more#informa=on#or# presenta=ons#please# contact:## learnmore@foodintegrity.or g##

Research'Summary'

QuesIons?' '

Terry.Fleck@FoodIntegrity.org# # '

Cracking the Code

• f Food Issues

Building Trust in Today’s Food System

Terry.Fleck@foodintegrity.org