AlabamaGroceryJan2017Final

Ethical & Environmental Claims on Food & Drink Introductions, U.S., 2011-15

2011 2012 2013 2014 2015 13.7 14.4 20.4 21.8 24.7

30% 35% 25% 20% 15% 10%

Environmentally Friendly Package 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

5% 0%

Total Ethical & Environmental

17.6 18.1 26.8 29.0 33.0

2011

2012

2013

2014

2015

Source: Mintel GNPD

Tabular view of same data shown in chart above

Total Ethical & Environmental Environmentally Friendly Package Environmentally Friendly Product

Ethical – Human Ethical – Animal Carbon Neutral

Ethical Product Claims are on the Rise

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

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.

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

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