35 / 40
Ethical Product Claims
are on the Rise
According to Mintel research, about a third
of food and drink products introduced in
2015 carried ethical or environmental
claims. This is a significant increase since
2011 when just 18 percent of products
carried similar claims.
While the availability of food and drink
products with ethical claims is rising in the
U.S., retailers and brands have to be careful
about how the stories they tell about them
as skepticism regarding motivations remains
rife. In fact, 52 percent of consumers say that
marketing products as ‘ethical’ is just a way
for companies to manipulate consumers,
according to Mintel research.
When it comes to marketing organic
products, both brands and retailers recognize
that there is consumer confusion, potentially
leading to apathy and skepticism. Indeed,
only 42 percent of U.S. consumers trust that
organic-labeled products are actually organic,
while half think that labeling something
organic is an excuse to charge more,
according to Mintel research.
Consequently, more retailers and their
related brands are taking a proactive
approach to organics and green products,
in general. Walmart recently has updated
its Sustainability Index, which includes
five key sustainability initiatives over 700
Walmart categories.
Target is expanding its “Made to Matter”
program, which showcases new sustainable,
organic, and natural products. Companies
have to agree to sell their new organic or
natural product exclusively to Target for six
months, and the retailer is expanding the
program (now in its second year) to include
more than 200 products, including new
exclusive ice cream flavors from Ben & Jerry’s
(Peanut Butter World and Blondie Ambition)
and an aloe water drink for children.
The program allows Target to elevate its
reputation in terms of health and wellness,
while also offering it notable and exclusive
organic options.
‘
Real
’
Stories Build Trust —
Warts and All
Realness is a quality that applies to both a
product and the marketing that surrounds
a product. In the case of the latter, it seems
that a “warts and all” approach is starting
to be more appealing than the airbrushed
or otherwise edited alternative. Minor
blemishes or shortcomings can have a
positive impact as they can make brands
seem more genuine.
All brands have an opportunity to explore
and share the heritage of their own products,
especially those with a compelling narrative.
One needn’t be off the beaten path to be
genuine. Moreover, the movement towards a
more “warts-and-all” approach to advertising
provides another way for brands to be
authentic without necessarily having to
be exotic.
Consumers are expecting a higher level of
engagement with retailers and brands than
ever before. Retailers and brands that provide
2011
2012
2013
2014
2015
30%
35%
25%
20%
15%
10%
5%
0%
Total Ethical & Environmental
Environmentally Friendly Product
Ethical – Human
Carbon Neutral
Environmentally Friendly Package
Ethical – Animal
Ethical & Environmental Claims on Food & Drink Introductions,
U.S., 2011-15
Source: Mintel GNPD
2011 2012 2013 2014 2015
Environmentally
Friendly Package
13.7 14.4 20.4 21.8 24.7
Environmentally
Friendly Product
2.4 2.3 5.9 6.7 7.9
Charity
2.4 2.3 3.5 3.5 3.5
Ethical – Human 1.7 1.4 2.5 2.7 4.0
Ethical – Animal 0.6 0.5 0.9 1.3 2.0
Carbon Neutral
0.2 0.1 0.3 0.2 0.2
Total Ethical &
Environmental
17.6 18.1 26.8 29.0 33.0
Tabular view of same data shown in chart above
truthful, authentic and compelling stories
about products — including the places they
come from and the people that make them —
have an opportunity to connect consumers to
an experience that is more than just buying
groceries and leaving, but one of building
trust, confidence and shopper loyalty.
■
Patty Johnson is a global food & drink
analyst for Mintel and leverages her in-depth
knowledge of consumer trends to bring keen,
insightful and forward-thinking strategies and
tactics to Mintel
’
s client base.
35
ALABAMA GROCER |