Trust Truth and Transparency

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Truth in Labeling In the midst of a “We Want to Know What’s in Our Food” movement, where consumers are demanding more product information, labeling has become a greater concern. Market Research Group’s recent Packaged Facts Consumer Survey found that 39 percent of consumers actively purchase grocery products with “GMO-free” on the labels. However, during a time when food companies are not required by law to list every ingredient, some companies use misleading claims to convince health- and socially conscious consumers to purchase their “healthy” products. For example, some brands are committing Economically Motivated Adulteration (EMA), or Food Fraud, that involves an undeclared substitution or addition of an ingredient(s) for financial advantage. Other companies are using more specific “free of” claims in product packaging that often identify certain unwanted ingredients while including other ingredients that consumers want to avoid. MANY NEW ATTRIBUTES ARE NOW PART OF CONSUMERS’ DEFINITION OF SAFETY 62% Criteria not traditionally considered as part of “safety” definition 51% 47% 42% 41% Free of harmful elements Clear and accurate labeling Clear information (ingredients/ sourcing) Fewer ingredients, processing, no artificial Nutritional content Source: Capitalizing on the Shifting Consumer Food Value Equation, Deloitte 8 | THE RISE OF A NEW FOOD INDUSTRY MANDATE: TRUST, TRUTH AND TRANSPARENCY
“More than one-third of consumers (37 percent) would switch brands if another brand shared more detailed product information.” – 2016 LABEL INSIGHT FOOD REVOLUTION STUDY Mistrust A measurable level of mistrust clouds the opinions of consumers across demographics, which undermines the credibility of food-product health and safety claims, and results in consumer reluctance to purchase healthy products. The roots of consumer mistrust can be traced to a number of causes. For example, although Genetically Modified Organisms (GMOs) were generally viewed as safe by food manufacturers, and not disclosed in food products’ ingredient labeling when introduced in 1990, controversy and consumer outrage began to occur in 2013 when safety concerns heightened. Also, a 2016 Stanford University study, a first-of-its-kind national sample and published in Environmental Research, unveiled a link between canned foods and exposure to hormone-disrupting chemical Bisphenol A (BPA). The highest BPA levels, in descending order, were found in canned soups, canned pasta, and canned vegetables and fruit, otherwise seemingly healthy choices. Marketplace Identity The benefits of healthy products can become diluted, or in some cases even lost, due to a large selection of similarly labeled products, such as “natural,” “green” and “organic,” among others. What follows is confusion for consumers and a lack of product differentiation for food companies. Among the ways companies can bring clarity, identity and transparency to their product offerings are through unique ingredients, specific target marketing and branding. Companies that are focused on sustainability and community-improvement differentiate themselves by increasing their authenticity and aligning values with today’s consumers, who seek companies that offer more than low-priced better-for-you foods. THE RISE OF A NEW FOOD INDUSTRY MANDATE: TRUST, TRUTH AND TRANSPARENCY | 9
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