The rise of Clean Labeling is a result of consumer needs and demands. But Clean Labeling also represents an opportunity to build trust with consumers, by putting on their needs and interests first.
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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
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