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1	
  
Clean	
  Labeling:	
  
Focusing	
  on	
  What	
  Consumers	
  Want	
  
Jim	
  Lucas	
  
Evanston	
  Consul9ng	
  Group	
  
May	
  21,	
  2015	
  
Desire	
  for	
  Clean	
  Labeling	
  
•  Consumers	
  today	
  are	
  drawn	
  to	
  brands/
products	
  that	
  equip	
  them	
  to	
  live	
  healthier,	
  
fuller,	
  longer	
  lives.	
  
•  Product	
  recalls,	
  allergy	
  scares	
  and	
  harmful	
  
added	
  ingredients	
  in	
  many	
  of	
  the	
  products	
  on	
  
today’s	
  store	
  shelves	
  are	
  a	
  serious	
  concern	
  to	
  
consumers	
  of	
  all	
  demographic	
  stripes.	
  	
  
2	
  Clean	
  Labeling	
  
Concerned,	
  but	
  Confused	
  
Most	
  consumers	
  feel	
  packaging	
  nutriBonal	
  informaBon	
  
is	
  important	
  
–  38%	
  of	
  consumers	
  trust	
  what	
  companies	
  say	
  on	
  labels	
  	
  
–  More	
  than	
  1/3rd	
  (37%)	
  are	
  confused	
  by	
  claims	
  on	
  their	
  
food	
  packaging	
  
–  More	
  than	
  70%	
  of	
  BFG’s	
  survey	
  respondents	
  said	
  that	
  they	
  
agreed	
  some	
  food	
  labels	
  were	
  meaningless,	
  but	
  37%	
  said	
  
they	
  sBll	
  "trusted"	
  the	
  label’s	
  intent.	
  	
  
Sources:	
  Mintel,	
  “Clean	
  Labeling	
  is	
  the	
  New	
  Natural,”	
  2015;	
  Fast	
  Company	
  Exist,	
  “Americans	
  will	
  Pay	
  more	
  for	
  Organic,	
  But	
  also	
  
have	
  No	
  Idea	
  What	
  Organic	
  Means”.	
  
hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐
means#6	
  :	
  BFG	
  survey	
  conducted	
  September,	
  2015,	
  n	
  =	
  300.	
  
3	
  Clean	
  Labeling	
  
Truth	
  Smuggled	
  
•  Much	
  of	
  the	
  challenge	
  around	
  product	
  
labeling	
  can	
  be	
  thought	
  of	
  as	
  “truth	
  
smuggling”—both	
  trying	
  to	
  communicate	
  and	
  
trying	
  to	
  extract	
  understanding.	
  
•  Or	
  at	
  least	
  telling	
  truth	
  at	
  a	
  slant	
  (Emily	
  
Dickenson)	
  
•  Consumers	
  are	
  concerned,	
  but	
  confused.	
  
4	
  Clean	
  Labeling	
  
Organic	
  Food:	
  Not	
  So	
  Simple	
  
•  69%	
  buy	
  organic	
  meat,	
  poultry,	
  dairy	
  and/or	
  fruits	
  
and	
  vegetables,	
  but	
  
•  20%	
  correctly	
  defined	
  how	
  the	
  USDA	
  defines	
  
“organic”;	
  (16%	
  knew	
  that	
  organic	
  has	
  no	
  chemicals,	
  
addiBves	
  or	
  GMOs)	
  
•  75%	
  agree	
  that	
  organic	
  has	
  simply	
  become	
  a	
  
marke9ng	
  tool	
  
•  53%	
  don’t	
  trust	
  that	
  a	
  product	
  labeled	
  organic	
  is	
  
actually	
  organic	
  
Sources:	
  Fast	
  Company	
  Exist,	
  “Americans	
  will	
  Pay	
  more	
  for	
  Organic,	
  But	
  also	
  have	
  No	
  Idea	
  What	
  Organic	
  Means”.	
  
hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐
means#6	
  :	
  BFG	
  survey	
  conducted	
  September,	
  2015,	
  n	
  =	
  300.	
  
5	
  Clean	
  Labeling	
  
Unnaturally	
  Confusing	
  
•  41%	
  believe	
  natural	
  is	
  beer	
  for	
  you	
  
•  37%	
  believe	
  natural	
  is	
  not	
  beer	
  for	
  you	
  
•  63%	
  agree	
  that	
  “natural”	
  is	
  a	
  markeBng	
  term	
  
6	
  
Sources:	
  Fast	
  Company	
  Exist,	
  “Americans	
  will	
  Pay	
  more	
  for	
  Organic,	
  But	
  also	
  have	
  No	
  Idea	
  What	
  Organic	
  Means”.	
  
hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐means#6	
  :	
  BFG	
  
survey	
  conducted	
  September,	
  2015,	
  n	
  =	
  300.	
  
Clean	
  Labeling	
  
GMOs	
  
•  59%	
  are	
  concerned	
  about	
  GMO	
  food	
  products	
  
•  32%	
  know	
  how	
  to	
  define	
  a	
  GMO	
  food	
  
•  21%	
  did	
  not	
  know	
  what	
  GMO	
  is	
  
Image:	
  hp://www.inlander.com/Bloglander/archives/2013/09/27/syringes-­‐gas-­‐masks-­‐and-­‐frankenfood-­‐visuals-­‐of-­‐the-­‐gmo-­‐debate	
  
7	
  
Sources:	
  Fast	
  Company	
  Exist,	
  “Americans	
  will	
  Pay	
  more	
  for	
  Organic,	
  But	
  also	
  have	
  No	
  Idea	
  What	
  Organic	
  Means”.	
  
hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐means#6	
  :	
  BFG	
  survey	
  
conducted	
  September,	
  2015,	
  n	
  =	
  300.	
  
Clean	
  Labeling	
  
•  31%	
  believe	
  it	
  means	
  lower	
  sugar	
  content	
  
•  13%	
  believe	
  it’s	
  sugar	
  free	
  
8	
  
Sources:	
  Fast	
  Company	
  Exist,	
  “Americans	
  will	
  Pay	
  more	
  for	
  Organic,	
  But	
  also	
  have	
  No	
  Idea	
  What	
  Organic	
  Means”.	
  
hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐means#6	
  :	
  	
  
BFG	
  survey	
  conducted	
  September,	
  2015,	
  n	
  =	
  300.	
  
Image:	
  hp://mealsandmovesblog.com/2011/04/26/no-­‐sugar-­‐added/	
  
Clean	
  Labeling	
  
Sweetness	
  in	
  SoS	
  Drinks	
  
9	
  Clean	
  Labeling	
  
The	
  Rise	
  of	
  Clean	
  Labels	
  
•  When	
  it	
  comes	
  to	
  food	
  purchases	
  and	
  nutriBon	
  
labels,	
  consumers	
  want	
  it	
  one	
  way:	
  Clean.	
  	
  
•  22%	
  of	
  U.S.	
  grocery	
  consumers	
  would	
  like	
  to	
  see	
  
improved	
  labeling	
  on	
  packaging	
  to	
  help	
  them	
  
easily	
  idenBfy	
  more	
  healthful	
  food	
  products,	
  and	
  
less	
  than	
  38%	
  trust	
  what	
  companies	
  say	
  on	
  
labels,	
  according	
  to	
  the	
  global	
  consumer	
  trends	
  
for	
  2015	
  from	
  internaBonal	
  market	
  research	
  firm	
  
Mintel.	
  	
  
10	
  Clean	
  Labeling	
  
Enter	
  Clean	
  Labeling	
  
•  The	
  clean	
  labeling	
  concept	
  has	
  gained	
  tracBon	
  in	
  
recent	
  years,	
  as	
  consumers’	
  need	
  for	
  beer	
  
transparency	
  has	
  grown	
  and	
  is	
  unlikely	
  to	
  fade,	
  given	
  
the	
  FDA’s	
  upcoming	
  nutriBon	
  label	
  regulaBon.	
  
•  Unlike	
  the	
  terms	
  “organic	
  or	
  natural,”	
  there	
  is	
  no	
  legal	
  
definiBon	
  for	
  the	
  term	
  “clean	
  label.”	
  	
  
•  It	
  has	
  largely	
  been	
  determined	
  by	
  consumers.	
  	
  
•  It	
  refers	
  to	
  consumers’	
  desire	
  for	
  straighhorward	
  food	
  
labeling	
  that	
  lists	
  exactly	
  what	
  ingredients	
  are	
  and	
  are	
  
not	
  in	
  the	
  product,	
  as	
  well	
  as	
  a	
  clear,	
  complete	
  and	
  
accurate	
  depicBon	
  of	
  the	
  product	
  these	
  people	
  are	
  
considering	
  purchasing.	
  
11	
  Clean	
  Labeling	
  
Clean	
  Labeling:	
  Truth-­‐based	
  Rela9onships	
  
•  And	
  how	
  might	
  clean	
  labels	
  on	
  packaging	
  help	
  
build	
  deeper,	
  trust-­‐based	
  relaBonships	
  with	
  
consumers?	
  	
  
–  A	
  clean	
  label	
  gives	
  consumers	
  a	
  clear,	
  complete,	
  and	
  
accurate	
  depicBon	
  of	
  the	
  product	
  they	
  are	
  considering	
  
purchasing.	
  	
  
–  It	
  can	
  incorporate	
  several	
  consumer-­‐friendly	
  themes,	
  
but	
  there	
  are	
  key	
  components	
  that	
  we’ve	
  seen	
  
successfully	
  applied	
  across	
  product	
  lines	
  in	
  the	
  food	
  
and	
  beverage	
  category	
  by	
  brands	
  and	
  retailers.	
  
12	
  Clean	
  Labeling	
  
Accessibility	
  
•  Consumers	
  are	
  trying	
  to	
  figure	
  out	
  what	
  they	
  
are	
  eaBng,	
  but	
  brands	
  and	
  retailers	
  have	
  not	
  
provided	
  them	
  with	
  informaBon	
  that	
  is	
  easy	
  
to	
  understand	
  nor	
  readily	
  accessible.	
  	
  
•  Therefore,	
  a	
  clean	
  label	
  should	
  be	
  easy	
  to	
  find	
  
and	
  read,	
  and	
  should	
  not	
  require	
  the	
  use	
  of	
  
addiBonal	
  resources	
  to	
  decipher	
  its	
  contents.	
  
–  Wegmans	
  Food	
  Markets	
  parBcipates	
  in	
  the	
  
Facts	
  Up	
  Front	
  iniBaBve	
  and	
  presents	
  key	
  data	
  
points	
  such	
  as	
  calories,	
  saturated	
  fat,	
  sodium	
  
and	
  sugar	
  on	
  the	
  front	
  of	
  packaging	
  for	
  store	
  
brand	
  products	
  in	
  a	
  large,	
  easy-­‐to-­‐read	
  
format.	
  	
  
•  A	
  host	
  of	
  other	
  well-­‐known	
  companies	
  have	
  
also	
  implemented	
  Facts	
  Up	
  Front	
  on	
  their	
  
products.	
  
hp://www.factsupfront.org/	
  
13	
  
30-­‐35%	
  	
  
of	
  food	
  &	
  beverage	
  
product	
  pageviews	
  are	
  
being	
  accessed	
  from	
  
mobile	
  devices.	
  
Bazaarvoice,	
  The	
  info-­‐hungry	
  
consumer,	
  2015	
  
Clean	
  Labeling	
  
Transparency	
  
•  Transparency	
  puts	
  your	
  relaBonship	
  with	
  your	
  shoppers	
  
and	
  consumers	
  first	
  and	
  “owning”	
  it,	
  for	
  beer	
  or	
  for	
  
worse.	
  Transparency	
  is	
  an	
  opportunity.	
  
–  An	
  opportunity	
  to	
  do	
  something	
  refreshing	
  and	
  different-­‐-­‐
providing	
  shoppers	
  and	
  consumers	
  with	
  the	
  informaBon	
  that	
  they	
  
need.	
  	
  
–  If	
  your	
  product	
  includes	
  an	
  ingredient	
  that	
  is	
  not	
  quite	
  good	
  for	
  
you	
  such	
  as	
  added	
  sugar,	
  include	
  that	
  on	
  your	
  packaging	
  and	
  
explain	
  why	
  it’s	
  there.	
  If	
  you	
  can	
  do	
  this	
  right,	
  you	
  will	
  gain	
  
consumers’	
  trust	
  and	
  ground	
  on	
  your	
  compeBBon.	
  	
  
–  It’s	
  not	
  just	
  about	
  compliance,	
  but	
  about	
  finding	
  opportuniBes	
  to	
  
pay	
  it	
  forward,	
  not	
  because	
  you’re	
  mandated	
  to,	
  but	
  because	
  it	
  is	
  
what’s	
  best	
  for	
  the	
  consumer.	
  
14	
  Clean	
  Labeling	
  
Simplicity	
  
•  Consumers	
  crave	
  simplicity.	
  They	
  are	
  
inclined	
  to	
  purchase	
  products	
  that	
  
contain	
  100	
  percent	
  natural,	
  tradiBonal	
  
and	
  familiar	
  ingredients.	
  	
  
•  Marketers	
  can	
  expect	
  consumers	
  to	
  buy	
  
based	
  on	
  not	
  just	
  what	
  isn’t	
  in	
  a	
  
product,	
  but	
  also	
  what	
  is	
  in	
  a	
  product.	
  
In	
  this	
  regard,	
  Naked	
  Juice	
  got	
  it	
  right	
  
with	
  labels	
  that	
  include	
  straighhorward	
  
messaging	
  such	
  as	
  “Green	
  Machine”	
  or	
  
Siggi’s	
  simple	
  ingredient	
  list.	
  
•  The	
  use	
  of	
  familiar,	
  tradiBonal	
  
ingredients	
  appeal	
  to	
  consumers’	
  need	
  
for	
  simplicity	
  in	
  the	
  food	
  products	
  they	
  
purchase	
  
hp://www.drinkwhat.com/naked-­‐green-­‐machine-­‐all-­‐natural-­‐juice-­‐smoothie/;	
  	
  
hp://brineyg.typepad.com/sparkwood_21/2012/02/big-­‐big-­‐fan-­‐siggis-­‐
skyr-­‐icelandic-­‐style-­‐yogurt.html	
  	
  
15	
  Clean	
  Labeling	
  
Fewer	
  Villainous	
  Ingredients	
  
•  Consumers	
  want	
  foods	
  that	
  are	
  simple,	
  
natural,	
  organic	
  –	
  the	
  fewer	
  harmful,	
  
“villainous	
  ingredients”	
  in	
  products	
  the	
  beer.	
  
Some	
  retailers	
  have	
  taken	
  a	
  leading	
  role	
  in	
  this	
  
area,	
  especially	
  with	
  their	
  refrigerated	
  and	
  
frozen	
  foods.	
  	
  
–  An	
  example	
  is	
  the	
  Simple	
  Truth	
  and	
  Simple	
  
Truth	
  Organic	
  “Free	
  from	
  101”	
  statement	
  from	
  
The	
  Kroger	
  Co.,	
  CincinnaB.	
  All	
  products	
  marked	
  
with	
  the	
  “Free	
  from	
  101”	
  label	
  are	
  literally	
  free	
  
from	
  101	
  ingredients	
  that	
  customers	
  told	
  
Kroger	
  they	
  don’t	
  want	
  in	
  their	
  food.	
  	
  
–  Similarly,	
  Whole	
  Foods	
  Markets	
  has	
  a	
  list	
  of	
  78	
  
ingredients	
  that	
  are	
  unacceptable	
  for	
  food	
  
products.	
  
hp://www.simpletruth.com/	
  
16	
  
hp://www.wholefoodsmarket.com/about-­‐our-­‐products/quality-­‐standards/food-­‐
ingredient	
  
Clean	
  Labeling:	
  Some	
  Final	
  Thoughts	
  
•  Clean	
  labeling	
  is	
  an	
  opportunity.	
  So	
  start	
  the	
  conversaBon	
  now!	
  
•  As	
  companies	
  experiment	
  with	
  new	
  and	
  engaging	
  ways	
  to	
  
incorporate	
  “clean	
  labeling”	
  into	
  their	
  markeBng	
  mix	
  on,	
  it’s	
  
evident	
  that	
  there	
  is	
  no	
  one-­‐size-­‐fits-­‐all	
  soluBon.	
  	
  
–  Provide	
  fundamental	
  product	
  informaBon	
  across	
  touchpoints—
packaging,	
  product	
  websites,	
  social	
  media,	
  etc.	
  
–  Provide	
  product	
  informaBon	
  in	
  an	
  easily	
  digesBble	
  format	
  
–  Accessible,	
  transparent,	
  simple	
  and	
  fewer	
  villainous	
  ingredients	
  
–  Use	
  CGC	
  to	
  understand	
  consumer	
  percepBons	
  of	
  a	
  brand/product	
  
–  Supplement	
  standard	
  informaBon	
  with	
  authenBc	
  CGC	
  
•  Brand/product	
  doesn’t	
  have	
  to	
  be	
  perfect	
  to	
  make	
  a	
  lasBng	
  impact	
  
on	
  shoppers	
  and	
  consumers.	
  	
  
•  Make	
  it	
  clear	
  to	
  consumers	
  that	
  you	
  have	
  their	
  best	
  interests	
  at	
  
heart	
  and	
  are	
  using	
  this	
  opportunity	
  to	
  reconcile	
  and	
  refocus	
  on	
  a	
  
more	
  meaningful	
  relaBonship	
  with	
  them.	
  
17	
  Clean	
  Labeling	
  
Thank	
  you!	
  
	
  
Ques9ons	
  
Jim	
  Lucas	
  
Evanston	
  ConsulBng	
  Group	
  
847-­‐691-­‐8155	
  
Retailecologist@gmail.com	
  
18	
  
Clean	
  Labeling	
  arBcle	
  in	
  Store	
  Brands	
  can	
  be	
  found	
  at:	
  
hp://www.storebrands.info/clean-­‐labeling-­‐focus-­‐what-­‐consumers-­‐really-­‐want	
  
	
  
Clean	
  Labeling	
  

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Clean Labeling Brand Square Presentation

  • 1. 1   Clean  Labeling:   Focusing  on  What  Consumers  Want   Jim  Lucas   Evanston  Consul9ng  Group   May  21,  2015  
  • 2. Desire  for  Clean  Labeling   •  Consumers  today  are  drawn  to  brands/ products  that  equip  them  to  live  healthier,   fuller,  longer  lives.   •  Product  recalls,  allergy  scares  and  harmful   added  ingredients  in  many  of  the  products  on   today’s  store  shelves  are  a  serious  concern  to   consumers  of  all  demographic  stripes.     2  Clean  Labeling  
  • 3. Concerned,  but  Confused   Most  consumers  feel  packaging  nutriBonal  informaBon   is  important   –  38%  of  consumers  trust  what  companies  say  on  labels     –  More  than  1/3rd  (37%)  are  confused  by  claims  on  their   food  packaging   –  More  than  70%  of  BFG’s  survey  respondents  said  that  they   agreed  some  food  labels  were  meaningless,  but  37%  said   they  sBll  "trusted"  the  label’s  intent.     Sources:  Mintel,  “Clean  Labeling  is  the  New  Natural,”  2015;  Fast  Company  Exist,  “Americans  will  Pay  more  for  Organic,  But  also   have  No  Idea  What  Organic  Means”.   hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐ means#6  :  BFG  survey  conducted  September,  2015,  n  =  300.   3  Clean  Labeling  
  • 4. Truth  Smuggled   •  Much  of  the  challenge  around  product   labeling  can  be  thought  of  as  “truth   smuggling”—both  trying  to  communicate  and   trying  to  extract  understanding.   •  Or  at  least  telling  truth  at  a  slant  (Emily   Dickenson)   •  Consumers  are  concerned,  but  confused.   4  Clean  Labeling  
  • 5. Organic  Food:  Not  So  Simple   •  69%  buy  organic  meat,  poultry,  dairy  and/or  fruits   and  vegetables,  but   •  20%  correctly  defined  how  the  USDA  defines   “organic”;  (16%  knew  that  organic  has  no  chemicals,   addiBves  or  GMOs)   •  75%  agree  that  organic  has  simply  become  a   marke9ng  tool   •  53%  don’t  trust  that  a  product  labeled  organic  is   actually  organic   Sources:  Fast  Company  Exist,  “Americans  will  Pay  more  for  Organic,  But  also  have  No  Idea  What  Organic  Means”.   hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐ means#6  :  BFG  survey  conducted  September,  2015,  n  =  300.   5  Clean  Labeling  
  • 6. Unnaturally  Confusing   •  41%  believe  natural  is  beer  for  you   •  37%  believe  natural  is  not  beer  for  you   •  63%  agree  that  “natural”  is  a  markeBng  term   6   Sources:  Fast  Company  Exist,  “Americans  will  Pay  more  for  Organic,  But  also  have  No  Idea  What  Organic  Means”.   hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐means#6  :  BFG   survey  conducted  September,  2015,  n  =  300.   Clean  Labeling  
  • 7. GMOs   •  59%  are  concerned  about  GMO  food  products   •  32%  know  how  to  define  a  GMO  food   •  21%  did  not  know  what  GMO  is   Image:  hp://www.inlander.com/Bloglander/archives/2013/09/27/syringes-­‐gas-­‐masks-­‐and-­‐frankenfood-­‐visuals-­‐of-­‐the-­‐gmo-­‐debate   7   Sources:  Fast  Company  Exist,  “Americans  will  Pay  more  for  Organic,  But  also  have  No  Idea  What  Organic  Means”.   hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐means#6  :  BFG  survey   conducted  September,  2015,  n  =  300.   Clean  Labeling  
  • 8. •  31%  believe  it  means  lower  sugar  content   •  13%  believe  it’s  sugar  free   8   Sources:  Fast  Company  Exist,  “Americans  will  Pay  more  for  Organic,  But  also  have  No  Idea  What  Organic  Means”.   hp://www.fastcoexist.com/3038415/americans-­‐will-­‐pay-­‐more-­‐for-­‐organic-­‐but-­‐they-­‐also-­‐have-­‐no-­‐idea-­‐what-­‐organic-­‐means#6  :     BFG  survey  conducted  September,  2015,  n  =  300.   Image:  hp://mealsandmovesblog.com/2011/04/26/no-­‐sugar-­‐added/   Clean  Labeling  
  • 9. Sweetness  in  SoS  Drinks   9  Clean  Labeling  
  • 10. The  Rise  of  Clean  Labels   •  When  it  comes  to  food  purchases  and  nutriBon   labels,  consumers  want  it  one  way:  Clean.     •  22%  of  U.S.  grocery  consumers  would  like  to  see   improved  labeling  on  packaging  to  help  them   easily  idenBfy  more  healthful  food  products,  and   less  than  38%  trust  what  companies  say  on   labels,  according  to  the  global  consumer  trends   for  2015  from  internaBonal  market  research  firm   Mintel.     10  Clean  Labeling  
  • 11. Enter  Clean  Labeling   •  The  clean  labeling  concept  has  gained  tracBon  in   recent  years,  as  consumers’  need  for  beer   transparency  has  grown  and  is  unlikely  to  fade,  given   the  FDA’s  upcoming  nutriBon  label  regulaBon.   •  Unlike  the  terms  “organic  or  natural,”  there  is  no  legal   definiBon  for  the  term  “clean  label.”     •  It  has  largely  been  determined  by  consumers.     •  It  refers  to  consumers’  desire  for  straighhorward  food   labeling  that  lists  exactly  what  ingredients  are  and  are   not  in  the  product,  as  well  as  a  clear,  complete  and   accurate  depicBon  of  the  product  these  people  are   considering  purchasing.   11  Clean  Labeling  
  • 12. Clean  Labeling:  Truth-­‐based  Rela9onships   •  And  how  might  clean  labels  on  packaging  help   build  deeper,  trust-­‐based  relaBonships  with   consumers?     –  A  clean  label  gives  consumers  a  clear,  complete,  and   accurate  depicBon  of  the  product  they  are  considering   purchasing.     –  It  can  incorporate  several  consumer-­‐friendly  themes,   but  there  are  key  components  that  we’ve  seen   successfully  applied  across  product  lines  in  the  food   and  beverage  category  by  brands  and  retailers.   12  Clean  Labeling  
  • 13. Accessibility   •  Consumers  are  trying  to  figure  out  what  they   are  eaBng,  but  brands  and  retailers  have  not   provided  them  with  informaBon  that  is  easy   to  understand  nor  readily  accessible.     •  Therefore,  a  clean  label  should  be  easy  to  find   and  read,  and  should  not  require  the  use  of   addiBonal  resources  to  decipher  its  contents.   –  Wegmans  Food  Markets  parBcipates  in  the   Facts  Up  Front  iniBaBve  and  presents  key  data   points  such  as  calories,  saturated  fat,  sodium   and  sugar  on  the  front  of  packaging  for  store   brand  products  in  a  large,  easy-­‐to-­‐read   format.     •  A  host  of  other  well-­‐known  companies  have   also  implemented  Facts  Up  Front  on  their   products.   hp://www.factsupfront.org/   13   30-­‐35%     of  food  &  beverage   product  pageviews  are   being  accessed  from   mobile  devices.   Bazaarvoice,  The  info-­‐hungry   consumer,  2015   Clean  Labeling  
  • 14. Transparency   •  Transparency  puts  your  relaBonship  with  your  shoppers   and  consumers  first  and  “owning”  it,  for  beer  or  for   worse.  Transparency  is  an  opportunity.   –  An  opportunity  to  do  something  refreshing  and  different-­‐-­‐ providing  shoppers  and  consumers  with  the  informaBon  that  they   need.     –  If  your  product  includes  an  ingredient  that  is  not  quite  good  for   you  such  as  added  sugar,  include  that  on  your  packaging  and   explain  why  it’s  there.  If  you  can  do  this  right,  you  will  gain   consumers’  trust  and  ground  on  your  compeBBon.     –  It’s  not  just  about  compliance,  but  about  finding  opportuniBes  to   pay  it  forward,  not  because  you’re  mandated  to,  but  because  it  is   what’s  best  for  the  consumer.   14  Clean  Labeling  
  • 15. Simplicity   •  Consumers  crave  simplicity.  They  are   inclined  to  purchase  products  that   contain  100  percent  natural,  tradiBonal   and  familiar  ingredients.     •  Marketers  can  expect  consumers  to  buy   based  on  not  just  what  isn’t  in  a   product,  but  also  what  is  in  a  product.   In  this  regard,  Naked  Juice  got  it  right   with  labels  that  include  straighhorward   messaging  such  as  “Green  Machine”  or   Siggi’s  simple  ingredient  list.   •  The  use  of  familiar,  tradiBonal   ingredients  appeal  to  consumers’  need   for  simplicity  in  the  food  products  they   purchase   hp://www.drinkwhat.com/naked-­‐green-­‐machine-­‐all-­‐natural-­‐juice-­‐smoothie/;     hp://brineyg.typepad.com/sparkwood_21/2012/02/big-­‐big-­‐fan-­‐siggis-­‐ skyr-­‐icelandic-­‐style-­‐yogurt.html     15  Clean  Labeling  
  • 16. Fewer  Villainous  Ingredients   •  Consumers  want  foods  that  are  simple,   natural,  organic  –  the  fewer  harmful,   “villainous  ingredients”  in  products  the  beer.   Some  retailers  have  taken  a  leading  role  in  this   area,  especially  with  their  refrigerated  and   frozen  foods.     –  An  example  is  the  Simple  Truth  and  Simple   Truth  Organic  “Free  from  101”  statement  from   The  Kroger  Co.,  CincinnaB.  All  products  marked   with  the  “Free  from  101”  label  are  literally  free   from  101  ingredients  that  customers  told   Kroger  they  don’t  want  in  their  food.     –  Similarly,  Whole  Foods  Markets  has  a  list  of  78   ingredients  that  are  unacceptable  for  food   products.   hp://www.simpletruth.com/   16   hp://www.wholefoodsmarket.com/about-­‐our-­‐products/quality-­‐standards/food-­‐ ingredient  
  • 17. Clean  Labeling:  Some  Final  Thoughts   •  Clean  labeling  is  an  opportunity.  So  start  the  conversaBon  now!   •  As  companies  experiment  with  new  and  engaging  ways  to   incorporate  “clean  labeling”  into  their  markeBng  mix  on,  it’s   evident  that  there  is  no  one-­‐size-­‐fits-­‐all  soluBon.     –  Provide  fundamental  product  informaBon  across  touchpoints— packaging,  product  websites,  social  media,  etc.   –  Provide  product  informaBon  in  an  easily  digesBble  format   –  Accessible,  transparent,  simple  and  fewer  villainous  ingredients   –  Use  CGC  to  understand  consumer  percepBons  of  a  brand/product   –  Supplement  standard  informaBon  with  authenBc  CGC   •  Brand/product  doesn’t  have  to  be  perfect  to  make  a  lasBng  impact   on  shoppers  and  consumers.     •  Make  it  clear  to  consumers  that  you  have  their  best  interests  at   heart  and  are  using  this  opportunity  to  reconcile  and  refocus  on  a   more  meaningful  relaBonship  with  them.   17  Clean  Labeling  
  • 18. Thank  you!     Ques9ons   Jim  Lucas   Evanston  ConsulBng  Group   847-­‐691-­‐8155   Retailecologist@gmail.com   18   Clean  Labeling  arBcle  in  Store  Brands  can  be  found  at:   hp://www.storebrands.info/clean-­‐labeling-­‐focus-­‐what-­‐consumers-­‐really-­‐want     Clean  Labeling