Sustainability isn’t just a buzzword, it’s a movement. Consumers care about the environment, and they want the brands they buy to care, too.
A recent Nielsen ratings report found that 81 percent of people around the world feel strongly that companies should help improve the environment. For proof consumers are pledging their support for companies that are Mother Nature’s advocates, look at their wallets. Nielson ratings found product sales grew twice as fast for companies with specific environmental impact claims.
“No matter what, sustainability is no longer a niche play: your bottom-line and brand growth depend on it,” the report reads.
Nielson looked at three products sustainability efforts, two which are fermented: chocolate, coffee and bath products. Chocolate was the main focus of the report.
Cocoa is grown in difficult circumstances. Of the world’s cocoa supply, 90 percent of it is grown on small family farms by about 6 million farmers. Cocoa farmers work in rough circumstances. Cocoa is a fragile crop that grows in hot, rainy, tropical environments and the trees don’t yield cocoa pods until its fifth year. Farmers work hard and profit is low.
Research drilled down to specific consumer sentiments about chocolate, from environmental claims (like ethically sourced, made with renewable energy or carbon neutral), to the absence of artificial ingredients and fair trade.
Chocolate with environmental claims account for an extremely small percent of the chocolate category, only 0.2 percent. But it grew four times the rate of sales, from 22 percent from March 2017 to March 2018. Unit growth is also huge. Chocolate with environmental claims is “flying off the shelves at a rate five times faster than the overall market.” Environmental chocolate had a 15 percent unit sales growth compared to the competition with just 3 percent sales growth.
Fair trade chocolate is performing well, too. Fair trade chocolate only makes up 0.1 percent of the total chocolate market, but dollar sales growth for fair trade chocolate doubles the rest of the category (10 percent versus 5 percent). Unit sales are five times higher for fair trade chocolate (15 percent versus 3 percent).
No artificial ingredients
Unit sales of chocolate made without artificial ingredients are growing at the same 3 percent rate as the rest of the chocolate category. But dollar sales of clean chocolate are triple the market (16 percent versus 5 percent). The report infers that, because clean chocolate is priced higher than chocolate made with artificial ingredients, consumers will pay more for a sustainable choice.
The report reads: “In many ways this space is evolving; however, what we do know is that sustainability presents an opportunity to be creative about innovative growth. Embedding consumer demand for sustainability into your company strategy and product pipeline requires data specific to your brand footprint and consumer profile.
Sustainability: “Life and Death Matter”
Consumers are empowered by evidence that “sustainability has become a life and death matter.” The World Health Organization estimates 12.6 million people die every year from environmental health risks. Air pollution and water quality are listed as top concerns for people around the world, the survey found. Increasing cases of asthma and typhoid are linked to deteriorating air and water quality.
“In light of these concerns, consumers around the world are making adjustments in their shopping habits,” the report reads. “While still juggling convenience, price and awareness along with their need to better the world, they’re looking for companies to step up as partners in their quest to do good.”
Another finding of note: though protecting Mother Earth is an important issue for survey respondents globally, consumers in developing countries are more concerned. The percentage of European and North American respondents who said they were “extremely” or “very concerned” about environmental issues was lower than respondents in third-world countries, like Latin America, Asia-Pacitic and Africa/Middle East.
Other interesting finds: environmentally advocacy is typically attributed to Millennials. Millennials are the generation most vocal advocating for corporate social responsibility. But the ratings found every generation and every gender cares deeply about the health of the planet. While 85 percent of Millenials (age 21-34) ranked a company’s environmental responsibility as “extremely” or “very” important, other generations weren’t far behind. Generation Z (15-20) was at 80 percent, Generation X (age 35-49) was at 79 percent, Baby Boomers (age 50-64) were at 72 percent and the Silent Generation (age 65+) was at 65 percent.
Forbes shares a detailed list of how companies can “champion” climate change. Their tips relevant to food producers include:
- Measure your carbon footprint annually through a third party audit.
- Develop an action plan, from reducing supply chain emissions to improving energy efficiency to cutting unnecessary transportation environmental hazards, like shipping by sea freight instead of air or using regional warehouses.
- Set emission reduction goals, then monitor your progress.
- Support environmental change politics by using lobbying influence for policymakers who are working to improve the health of the planet.
When in doubt, throw it out? Smell check? Taste test? Eyeball it? Food date labels have become so confusing that many consumers use their own sensory check to decode food expiration dates.
The food industry noticed. “Use By” dates are becoming uniform, with nine in 10 grocery store products now printing consumer-friendly labels. By 2020, all products will carry a simplified date. The 10 date-label categories will pair down to two – “Best if Used By” and “Use By.”
From Farm to Trash
Critical to food product relabeling is curbing massive amounts of food waste. A study by Harvard Law School’s Food Law and Policy Clinic and the Natural Resources Defense Council found more than 90 percent of Americans are throwing away food before it goes bad because they misinterpret the food label.
“Expiration dates are in need of some serious myth-busting because they’re leading us to waste money and throw out perfectly good food, along with all of the resources that went into growing it,” said Dana Gunders, NRDC staff scientist. “Phrases like ‘sell by,’ ‘use by,’ and ‘best before’ are poorly regulated, misinterpreted and leading to a false confidence in food safety. It is time for a well-intended but wildly ineffective food date labeling system to get a makeover.”
Over 40 percent of the American food supply doesn’t even make it to a plate. That amounts to $165 billion worth of food that’s thrown away annually. Food waste has become the single largest contributor of solid waste in U.S. landfills. The USDA and EPA set the first national food waste reduction goal in 2015: 50 percent less food waste by 2030.
The product labeling initiative was launched in 2017 by the two largest grocery trade groups – the Grocery Manufacturers Association and the Food Marketing Institute. Geoff Freeman, GMA president and CEO, called it a “proactive solution to give American families the confidence and trust they deserve in the goods they buy.”
The standardized labels are not mandatory. They are voluntary.
The USDA Food Inspection and Safety Service made the recommendation in 2016 for food manufacturers to to apply “Best if Used By” to product label. But the industrywide label standardization is not government mandated.
“Virtually every discussion included concerns regarding waste generated as a result of consumer confusion about the various date labels on foods and what they mean,” said Mike Conaway, R-Texas, the House Agriculture Committee Chairman. “I am pleased to see the grocery manufacturing and retail industries tackling this issue head on. Not every issue warrants a legislative fix, and I think this industry-led, voluntary approach to standardizing date labels is a prime example.”
Dozens of consumer packaged goods brands and retail companies voted unanimously to change expiration dates exclusively to “Use By” by January 2020. Major brands like Walmart, Campbell, Kellogg and Nestle all spearheaded the change.
The 2020 date was set to give companies time to change dates on their packaging. It also coincides with the release of the new FDA nutrition facts panel.
The old labels – which included options like “Sell By” and “Display Until” – left consumers in a guessing game. Most products don’t include an explanation of the date, like whether it’s a descriptive feature for the store or the consumer. Even grocery store workers were confused. Employees were polled and reported they, too, cannot distinguish dates on food labels.
The new labels mean:
- “Best If Used By” – quality designation. This is the date the food manufacturer thinks the product should be consumed for peak flavor.
- “Use By” – safety designation. Perishable food is no longer food after this date.
Legal Change on Horizon
Is a government mandate likely?
Currently, the only product federally regulated for expiration dates is infant formula. There is no legal definition for food expiration dates in most states. And state food labeling standards vary widely – 20 states restrict stores from selling products after the expiration date, while 30 states don’t enforce such a rule.
The Food Date Labeling Act was introduced to Congress in 2016, but no further action has happened. The act would legally require food date standardization, and require the USDA and Department of Health and Human Services to educate consumers on date label meanings.
Interesting, the proposal also questions the subjective nature of expiration dates. It states no one could “prohibit the sale, donation or use of a product after the quality date for the product has passed.”
Today’s food is packaged in so much plastic that humans now regularly consume plastic molecules in their food. A Polish design student created Scoby packaging, an edible and recyclable packaging that farmers can grow to wrap products. The zero waste biological tissue is a similar texture to animal tissue used to encapsulate sausage or salami, but Scoby is vegetarian and can be grown with a simple chemical process student Roza Janusz of the School of Form in Poznan, Poland invented. The process is similar to making kombucha, and the fermentation growth time per sheet is two weeks.
Read more (Fast Company)
The notoriously unsustainable chocolate industry is reevaluating business practices, according to a new study. As global demand increases, more companies are looking at sustainable cocoa sources. Jack fruit seeds are one growing alternative – once fermented and roasted, the flavor is similar to chocolate. Many confectionery companies are setting socially responsible policies and pledges, like Mars who is aiming for 100 percent sustainability by 2020.
Read more (Gourmet News)