getting clear on clean labels · annette maggi, ms, rdn, ld, fand ... deloitte analysis, deloitte...

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Getting Clear on Clean Labels

Annette Maggi, MS, RDN, LD, FAND

[email protected]

@annettemaggi

651.485.7787

February 23, 2018

Clean Label 101

©2018AnnetteMaggi&Associates, Inc.

Where it All Began


Consumers are actively shaping and expanding the number of drivers they incorporate

into their food purchasing decisions.

Consumer Values Drive Food Purchases

Source: Deloitte Food Value Equation Survey 2015, Deloitte Analysis, Deloitte Industry Executive Interviews 2015

• Evolving value drivers (Health & Wellness, Safety,

Social Impact, Experience, and Transparency) as a

group have become meaningful for a sizeable

number of consumers.

• Traditional value drivers continue to be among the

most important drivers of behavior.

• More consumers making purchase decisions based

on the full plate—Traditional and Evolving value

drivers combined—represents a fundamental

disruption of the value equation for retailers and

manufacturers.


The Demand for Clean Label


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Source: Clean Label: Public Relations or

Public Health?,

Center for Science in the

Public Interest, 2017.



• According to Innova Market Insights, more than 20% of new

US products tracked in 2014 featured a clean label

positioning, up from 17% in 2013.

– There is no legal definition of “clean label”

• According to Healthfocus International:

– 65% of study respondents believe “processed” means things have

been added like preservatives, artificial flavors or colors or GMOs

– 41% of shoppers think “preservative free” is important

Source:

1. 20% of U.S. Food, Beverage Launches Tout Clean Label, Judie Bizzozero. Food Product Design, July 2015.

2. Consumers & Clean Labels: Where is the Market Heading? Barbara Katz. Nutraceuticals World, April 1, 2015.

Retailers Providing Shopper Education

• Is your company prepared to provide consumer

education on the following labeling issues?

– Clean/Clear Labeling

• Yes: 50%

• No: 23%

• Would like more resources for this: 27%

Source: Retailer Contributions to Health and Wellness, Food Marketing Institute, 2017

School Districts

Respond to Trend


Clean Labels Defined

• Clean Label Magazine: Consuming food that

is in its most natural state.

• National Starch Food Innovation: free of

chemical additives, simple ingredient listing

that consumers understand, foods process

using traditional techniques or that are

minimally processed.

• Whole Foods: 84 ingredients are

unacceptable to be in any food sold in their

stores including artificial sweeteners, colors

and flavors, non-natural preservatives,

DATEM, irradiated foods, bleached flour,

HFCS.

• Panera: 100% of food is 100% clean.

That means no artificial preservatives,

sweeteners, flavors and no colors from

artificial sources. Eighty-one ingredients

on their “No No List.”

Source: IFIC 2016 Food & Health Survey

©2018AnnetteMaggi&Associates, Inc. ©2018AnnetteMaggi&Associates, Inc.

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What’s missing in the new approach to

health and wellness?


Lawsuits have begun



Consumer Insights


Source: Natural Marketing Institute, Inc. 2017

Pollan’s Advice has Taken Hold


Conflicting Views on Packaged Foods

Source: IFIC 2016 Food & Health Survey


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Source: Shopping For Health, 2016

Consumer Perceptions


Consumer Perceptions: Aided vs. Unaided Data

Consumers Lack Trust in CPGs

• Only 44 of respondents in Nielsen global survey strongly or

somewhat agree that they trust industry prepared food (Nielsen, 2016)

• Only 12% of Americans rank food brands as their most

trusted resource for what is in their foods (Label Insights Food

Revolution Study, 2016)

• 33% of shoppers believe food manufacturers are working

against them when it comes to eating healthy (Center for Food

Integrity, 2016)


Transparency: Clear vs. Clean

Labels


Retail RD Advice:

Clear Labels instead of Clean Ones

Clean Labels

• Suggests all other foods

are dirty

• Philosophy suggests there

is a prescribed number of

ingredients that is ideal

and no chemicals or

additives should be seen in

an ingredient listing

Clear Labels

• Everything shown in a

product’s ingredient list

has an essential function

in that product

• Manufacturers educate

consumers on the function

of various ingredients


CPGs are Providing Transparency


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CPGs are Providing Transparency


According to a 2015 Hartman

Group report, CPGs can earn

consumer trust by providing

information on

-the ingredients used

-the manufacturing process

-animal welfare

-sourcing

-the treatment of employees


Smart Label: Industry Initiative

SmartLabel™ is a tool that gives consumers a way to access more detailed

product information about a wide range of food, beverage, household, pet care

and personal care products. It is fast and easy to use, with a consistent digital

format that shares accurate data directly from the manufacturer in real-time.

People can access SmartLabel™ and its information whether they are in the

store, at home, or at work, by using a smart phone, tablet or desktop computer.

SmartLabel™ was created by a group of consumer companies and retailers

formed by the Grocery Manufacturers Association and the Food Marketing

Institute called the Trading Partner Alliance (TPA).


Transparency

• Ingredient sourcing

• Animal welfare

• Where animals live

• Animal feed

• Hormone Use

• Antibiotic Use


Recommendations


Clean Label Trend is not Waning


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Recommendations

• Use only ingredients with a function

• Align with regulations

• Understand consumer tolerances

• Remember taste, convenience, price and nutrition

are top consumer priorities

• Prioritize food safety

• Manage communications responsibly


Be Truthful &

Not Misleading• True of all vs. some

• What laws require

• Authentic messaging

• Inform, educate &

communicate why

• Focus on providing

consumer choice


Truthful


The Whole Supply Chain Matters

Grower Processor

Pack

er &

sh

ipp

er Food Company

Retailer

What are the inputs and outputs at each stage of the process

and how are they managed?


In Closing. . .


Questions and Discussion


getting clear on clean labels · annette maggi, ms, rdn, ld, fand ... deloitte analysis, deloitte...

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