Ethical Sourcing: A Blossoming Trend in Food

Consumers identify unethical food sourcing as practices that have crossed the bounds of food safety, health, environmental and social responsibility. For example, consumers perceive gestation crates unethical from an animal welfare point of view. In the mind of the consumer, it is difficult to separate unhealthy animal treatment with the final product they consume. Likewise, unethical practices that don’t affect food production, such as Nestle’s baby formula promotional tactics or Dole Pineapple’s labor law violations, have also had a profound impact on consumers’ buying decisions. Like any other product, consumers vote with their wallets to “punish” companies for perceived unethical behavior. No matter how superior in quality, if your coffee grain is linked to child-labor, consumers will hardly want to associate themselves with your product.

When it comes to making food choices based on ethical sourcing, consumers seem to be influenced by both brand reputation as well as individual product reputation. Chipotle’s efforts to highlight its ethically raised meat have paid off in phenomenal growth during very difficult economic times. When it comes to individual product selection, third-party certifications are playing a huge role in influencing consumer perceptions. The number of U.S. products launched with Fair Trade Certification doubled from 2008 to 2011. For the same time period, Innova Market Insight, a marketing research firm, reported that sales of ethically positioned foods grew from 3.7 percent to 6 percent. Clearly, third-party food certification is having an impact on buying behavior.

Stonyfield Farms is a great example of how a company can leverage both brand reputation and third-party endorsements to promote “ethical” products. The company promotes its ethical farming practices (organic, sustainable, animal welfare and chemical-free) as well as environmentally-responsible operations (efficient transportation, renewable energy, and zero waste). The business uses third-party certifications like the USDA Organic Seal to further its credibility. The company has maintained an overall annual revenue growth rate of over 26 percent (5 times the industry average) and built annual revenues of $300 million. They attribute this financial success directly to core values that dictate how well food is made, animals and employees are treated as well the environment.

As much as food manufacturers and businesses would like to distill a proper definition for ethical sourcing, it seems it won’t be possible for the time being. A survey conducted by Innova Market Insights in 2011 shows that people consider several factors beyond organic when considering “ethical” food purchases. Most foods recognized as “ethical” are using third party certifications from Fair Trade USA, The Marine Stewardship Council and the Rainforest Alliance. All these certifications touch different realms of sustainability, human and environmental responsibility –thus making it difficult to narrow down a static definition for ethical sourcing.

One of the best ways for brands to engage consumers on ethical sourcing is to proactively improve on issues that are important to consumers. Third party certification schemes definitely lend to brand integrity but, to best navigate consumer quality expectations, brands must listen into consumer conversations in real-time. In the case of ethical sourcing –which is a fluid, evolving concept– listening to what is being discussed on online is essential to understanding what is today’s definition of ethical sourcing and matching a company’s ethical sourcing efforts to consumer expectations.

 

 

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Trade Show Tips

When your world is a blur of expo floors, faces and business cards, how can you best stand out given the whirlwind of activities that surround you? Here are some trade show tips from CBD to help keep your eye on the ball:

Use Exhibit Design Wisely

According to CBD’s Executive Creative Director, Mary Olivieri, every inch of your exhibit booth is valuable real estate for business messaging. This year, take a step back and evaluate whether your current exhibit is conveying the information you want to resonate. Define your audience early during the design process, and aim to evoke an emotional response. Narrow down the message you would like to communicate, but don’t forget to clearly emphasize your product or service. Color schemes and design should be consistent with your company’s color palette and other marketing collateral—both digital and in print.

Staff Strategically

While booth activities, promotions and demonstrations are necessary to create the buzz, don’t forget that you need an energetic and well-prepared booth staff to make it a memorable visit. In our experience, it’s always a good investment to conserve your staff’s energy by using agency support. Social media presence, trade media outreach and booth designs are all areas where you can and should consider external expertise. Allow your staff to focus their energies on what they know best—providing a knowledgeable and unforgettable connection with prospects.

The Magic is in the Follow-up

Rather than prioritizing the volume of leads gathered at shows, your goal should be to have year-round follow-up with your new contacts. One affordable and engaging way to stay on a lead’s radar is through a monthly blog or periodic e-newsletter, provided that it is both visual and insightful. If planned strategically, it should take a few hours every month to plan, write, publish and distribute a thoughtful issue electronically. Another neat way to keep up a year-long interaction with your trade show leads is to use free social media tools like Twitter, LinkedIn and Pinterest. Keep the conversation light and relevant. Stick to content that best showcases your company’s strengths and services.

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Almonds Get a Heart-Healthy Checkmark from the American Heart Association

Whenever someone travels to my hometown, I always make sure they take a bag of almond chocolates for my Dad. Why almond chocolates? It’s because my father can’t resist his sweet tooth nor can he live without the crunchy texture that comes with almonds. He’s so particular about that crunch that, if I forget almonds in his gifts, I’ll get an email reminding me to “shop better” next time.

Such is the wisdom of fathers and, apparently, the American Heart Association (AHA) agrees.

This February, AHA has certified almonds with its signature Heart-Check mark to signify their approval of almonds as a heart-healthy food. AHA’s Heart-Check mark is one of the most consumer-trusted nutrition symbols on packaged foods. One study found that more than half of shoppers use the Heart-Check mark when purchasing a new product. If consumers haven’t already been swayed by the nutritional tributes of almonds, they can now easily identify almonds as a smart choice.

Nearly two decades of research have shown almonds to be one of the most outstanding nuts available to consumers. In fact, since 2003, the Food and Drug Administration approved a strong health claim regarding almonds: “Scientific evidence suggests, but does not prove, that eating 1.5 ounces per day of most nuts, such as almonds, as a part of a diet low in saturated fat and cholesterol may reduce the risk of heart disease.”

Jenny Heap, MS, RD Health Professional Marketing Manager at the Almond Board of California agrees that the AHA Heart-Check mark is a positive step. Heap says, “Now consumers will be able to more easily identify almonds in the supermarket as a heart-smart food, helping take the guess work out of shopping.”

Likewise, Al Greenlee, North American Retail Marketing Director at Blue Diamond Almonds, the world’s biggest almond supplier and a CBD Client, couldn’t agree more. Greenlee believes that it’s important to communicate to consumers where and how they can substitute healthier options in their diets: “By featuring the mark on our Blue Diamond Almond packaging and citing the certification in our advertising, we will help the AHA to communicate the importance to eating smart and becoming active to consumers in North America.”

In my opinion, Blue Diamond’s AHA Heart-Check mark couldn’t have come at a better time. The National Center for Health Statistics lists heart disease as one of the leading health concerns affecting baby boomers. I’m looking forward to AHA Heart-Check mark to remind me to choose healthier eating options – both for my father and myself. With almonds on my mind, I know Dad will be glad to know that I won’t forget to get them with his chocolates.

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Wednesday, April 18th, 2012 Food, Supplements, Ingredients No Comments