j.j. jones - consumer insights on trust-building transparency

Consumer Insights on Trust-Building Transparency

J.J. [email protected]

28 January 2016

TO EARN CONSUMER TRUST IN TODAY’S FOOD SYSTEM

CFI strives to: Be a Leading Voice in a Balanced Public

Conversation about Food Align the Culture of Today’s Food System Convene, Empower and Support Food

System Stakeholders

The Center for Food Integrity

Social/Consumer Decision Making

Consumers are asking more

questions about food

Scarcity of Food

Abundance of Food

No Trust

Complete Trust

Schwartz-Grant Inverted-U

Today’s consumersShifting societal attitudes

Many choices, Many voicesMistrust in farming and food

Desire to know/trust farmers

Historical Perspective: Decline of Trust

THEN NOW

Authority is granted primarily by office

Broad social consensus driven by WASP males

Communication is formal, indirect (mass

communication)Progress is inevitable

“Big” is respected

Authority is granted primarily by relationshipNo single social consensus, great diversity, many voicesCommunication is informal, direct (masses of communicators)Progress is possible“Big” is bad

Consolidated, Integrated, Industrialized

What’s Your Communication Goal?

PERSUADE

EDUCATE

Our Goals Should Be...

Embrace the skepticismConsumer concerns are

realPerception is their reality

Share your values

Building trusts requires a new approach

CFI Trust Model

VALUE SIMILARI

TY

CONFIDENCE

COMPETENCE

INFLUENTIAL

OTHERS

TRUST

SOCIAL LICENSE

FREEDOM TO

OPERATE

Trust research was published in

the December

2009 Journal of

Rural Sociology

Shared values are 3-5x more important in

building trust than sharing facts or demonstrating technical skills/expertise

What Drives Consumer Trust?

TRUST

SHARED

VALUESFACTS

“No one cares how much you know,

until they know how much you care.”

- Theodore Roosevelt

Leading from the heart led Plum Organics to the topFood NavigatorElizabeth Crawford

“The secret to Plum Organics’ rapid ascent to

the top of the organic baby, toddler and

children’s food industry is its deeply engrained

philosophy to ’lead with the heart.”

Neil Grammer, CEO

Food is necessary traditional personal

Thank You 2015 Research Sponsors

National Sponsors

Additional Sponsors

Thank You 2015 Research Sponsors

State Sponsors

TrustMotivation Bias

Shared Values

Foundation to Building Trust

TransparencyEffective Mechanism for Overcoming Motivation Bias

Role of Transparency in Promoting Trust

Moms Only 15%

Millenials Only12%

None Segment: Not Moms, Not Millenials, Not Foodies

43%

Foodies Only8%

Moms and Millennials 8%Moms and Foodies

5%

Millennials and Foodies 6%

Moms, Millennials and Foodies

3%

Segments Overlap; Just Under Half Not Classified

Share nutrition info (9.03)

Main Foodie Behaviors

FoodiesGeneral Population

Seek out info on ingredients used in food eaten (9.23)

Seek out info on ingredients used in food eaten (6.39)

Share info about cooking (9.17)

Share info about cooking (6.26)

Share info about food safety (9.11)

Share recipes with others (6.35)

Share nutrition info (5.84)

Seek out info about how food processing affects food safety (9.00)

Share recipes with others (9.14)

Rising Energy Costs (63%)

Keeping Healthy

Food Afford-

able (68%)

U.S. Economy

(69%)

Rising Cost of Food (70%)

Rising Health Care Costs (73%)

Women were more concerned

about most issues than men

Additional Food System Concerns*

• Food Safety (62%)• Enough to Feed U.S. (53%)• Humane Treatment of Farm Animals (47%)

Lowest concern was for having enough food to feed people outside the U.S. (31%)

All of the Most Concerning Life Issues are Beyond the Consumer’s Direct Control

1. Keeping Healthy Food Affordable

2. Rising Cost of Food3. Rising Health Care

Costs4. U.S. Economy5. Rising Energy Costs

1. Rising Cost of Food2. Rising Health Care Costs3. Keeping Healthy Food Affordable4. U.S. Economy5. Rising Energy Costs

Top Concerns About Issues by Segment

Moms

Millennials

1. Keeping Healthy Food Affordable

2. Rising Health Care Costs

3. Rising Cost of Food 4. U.S. Economy5. Rising Energy Costs

Top Concerns About Issues by Segment

Foodies

Foodies Expressed a Higher

Level of Concern

1. Rising Cost of Food2. Rising Health Care Costs3. Keeping Healthy Food

Affordable4. U.S. Economy5. Rising Energy Costs

Early Adopter

Right Direction/Wrong Track

2013 2014 2015Right Direction

34% 42% 40%

Wrong Track 38% 30% 27%Unsure 28% 27% 33%

Right Direction/Wrong Track 2014/2015

Early Adopters36% / 33%believe the

food system is on the wrong

track

48% / 49%Right

Direction

32% / 31%Wrong Track

Right Direction/Wrong Track 2014/2015

Right/Wrong Moms Millennials Foodies

Right Direction

36% / 31% 41% / 41% 49% / 50%

WrongTrack

35% / 32% 33% / 26% 35% / 30%

Unsure 29% / 37% 26% / 33% 16% / 20%

Consumers Search Online and Watch Local TV for Info for Food System Issues

Ranked First as Info Sourceon Food System Issues

Web Sites 21%

Local TV Station

15%

Friends-Not

Online13%

Family-Not

Online 13%

Google10%

Trust-Building Transparency

2015 Consumer Trust Research

Transparency Modeling

Company Trust

Global Transparency in

Topic

PoliciesIllustrative Policies

PracticesIllustrative Practices

Performance

VerificationIllustrative Verification

TrustMotivation Bias

Shared Values

Foundation to Building Trust

TransparencyEffective Mechanism for Overcoming Motivation Bias

Role of Transparency in Promoting Trust

Company Trust

Global Transparency in

Topic

PoliciesIllustrative Policies

PracticesIllustrative Practices

Performance

VerificationIllustrative Verification

Transparency Model Per Topical Area

SIX TOPICS of Global Transparency: • IMPACT OF PRODUCTS ON HEALTH• FOOD SAFETY• IMPACT ON THE ENVIRONMENT• HUMAN/LABOR RIGHTS• TREATMENT OF ANIMAL RAISED FOR FOOD• BUSINESS ETHICS IN FOOD PRODUCTION

Impact of Policies, Practices, Performance and Verification on Global Transparency

41

Performance

Global Transparency

in Food on Safety

Practices

Policies

VerificationPractices

Global Transparency in Impact of Food on Health

Performance

Policies

VerificationVerification

Global Transparency Impact on the Environment

Practices

Policies

PerformancePerformance

Global Transparency

in Labor/ Human Rights

Practices

Policies

VerificationPolicies

Global Transparency

in Tx of Animals

Practices

Performance

VerificationPerformance

Global Transparency

in Business Ethics

Practices

Policies

Verification

Practices were most predictive of Global Transparency in 5 out of 6 topical areas

• Policy – Is what I’m supposed to do

• Performance – My track record tells you what I did

• Verification – Is someone else validating my performance (table stakes for food safety and animal well-being)

• Practices – Are what I do. They are my values in action and a concrete way for me to illustrate my motives are aligned with yours

Aligning The Models

Consumers Primarily Hold Food Companies Responsible for Transparency

0% 50% 100%

42

49

40

38

37

41

27

30

32

37

28

28

16

11

15

13

17

16

15

10

14

12

17

15

Food Companies Farmers Grocery Stores Restaurants

Impact of Food Products on Health

(n=2001)

Food Safety

Impact of Food Produc-tion on the Environment

Labor and Human Rights

Treatment of Animals Raised for Food

Business Ethics in Food Production

Recommended Best Practices for Impact on the Environment

Predictive Practices for Impact on the EnvironmentProvides information about any impacts of food packaging on the environment, on the company website

Provides information on any corrective actions taken on violations of environmental regulations on the company website

Provides information about the disposal of the chemicals used in their food production, including sanitizers, refrigerants and petroleum products, on the company website Provides a way to ask questions about the company’s environmental stewardship on its website Responds to consumer inquiries about the company’s environmental stewardship in easy to understand language

Recommended Best Practices of Transparency in Labor and Human RightsPredictive Practices for Labor and Human Rights

Provides information about working conditions of laborers, who work to provide products or ingredients for the company, on the company web site

Provides a way to ask questions about the company’s labor and human rights practices on its website

Provides labor and human rights information through the company website

Provides information about the company’s relationship with the community in which food is produced, on the company website

Responds to consumer inquiries about the company’s labor and human rights practices in easy to understand language

Provides labor and human rights information through a QR code on the product package, which can be accessed through your smart phone

Recommended Best Practices of Transparency in the Treatment of Animals Raised for Food

Predictive Practices for Treatment of Animals Raised for Food

Provides information on how animals are raised through the website

Provides a way to ask questions about the treatment of animals raised for food for the company, on its website

Responds to consumer inquiries about the treatment of animals raised for food for the company in easy to understand language

Provides information on animal care through the website

Provides online videos showing how animals are raised, on the company website

Provides information on animal care through a QR code on the product package, which can be accessed through your smart phone

• Transparency is the key to overcoming the “Big is Bad” bias. It is no longer optional – it is a basic consumer expectation.

• Consumers want information on company practices – practices are an illustration of values in action and values drive trust.

• Consumers want the ability to engage. They want to be heard and acknowledged and they want straight answers to their questions.

Trust-Building Transparency Takeaways

Tracking Attitudes Toward the U. S. Food Supply Over Time

2014

2015

5%

6%

41%

35%

55%

60%

Two Year Tracking Comparison

0 to 3 4 to 7 8 to 10

2015 Mean = 7.602014 Mean = 7.46

2007 2008 2009 2010 2011 2012 2013 2014 20157.00

7.25

7.50

7.75

8.00

7.68

7.41

7.08

7.297.20

7.14

7.28

7.46

7.60

Yearly Mean Tracking

“If farm animals are treated decently and humanely, I have no problem consuming meat, milk and eggs.”

2014

2015

20%

19%

56%

57%

24%

25%


0 to 3 4 to 7 8 to 10

2015 Mean = 5.582014 Mean = 5.54

2007 2008 2009 2010 2011 2012 2013 2014 20154.30

4.80

5.30

5.80

6.30

5.02

4.80

5.50

5.89

5.385.24

5.58

5.54

5.58


“U.S. meat is derived from humanely treated animals.”

2014

2015

7%

7%

41%

40%

53%

53%


0 to 3 4 to 7 8 to 10

2015 Mean = 7.352014 Mean = 7.32

2008 2009 2010 2011 2012 2013 2014 20156.50

6.75

7.00

7.25

7.50

6.91

6.81

7.22

6.72 6.70

7.31 7.32 7.35


“I would support a law in my state to ensure the humane treatment of farm animals.”

2014

2015

32%

41%

46%

41%

22%

19%


0 to 3 4 to 7 8 to 10

2015 Mean = 4.412014 Mean = 4.86

2011 2012 2013 2014 20154.00

4.25

4.50

4.75

5.00

4.23

4.03

4.47

4.86

4.41


“The U.S. has a responsibility to provide food for the rest of the world.”

2014

2015

17%

22%

53%

50%

30%

28%


0 to 3 4 to 7 8 to 10

2015 Mean = 5.602014 Mean = 5.98

2012 2013 2014 20155.00

5.50

6.00

6.50

5.60 5.67

5.98

5.60


“Family farms are likely to put their interests ahead of my interests.”

2014

2015

6%

6%

45%

43%

50%

50%


0 to 3 4 to 7 8 to 10

2015 Mean = 7.222014 Mean = 7.19

2012 2013 2014 20156.85

7.10

7.35

7.60

6.86

7.20 7.197.22


“Commercial farms are likely to put their interests ahead of my interests.”

2014

2015

11%

13%

47%

48%

41%

39%


0 to 3 4 to 7 8 to 10

2015 Mean = 6.502014 Mean = 6.57

2007 2008 2009 2010 2011 2012 2013 2014 20155.50

6.00

6.50

7.00

6.13

5.88

5.85

5.73

6.116.22

6.446.57

6.50


“Food grown organically is more healthful than conventionally grown food.”

2014

2015

8%

10%

47%

45%

45%

45%


0 to 3 4 to 7 8 to 10

2015 Mean = 6.812014 Mean = 6.90

2013 2014 20156.50

6.75

7.00

7.25

6.91 6.90

6.81


“I am more concerned about healthy eating than I was a year ago.”

2014

2015

3%

3%

49%

51%

47%

46%


0 to 3 4 to 7 8 to 10

2015 Mean = 7.222014 Mean = 7.15

2013 2014 20157.00

7.25

7.50

7.75

7.03

7.157.22


“I feel confident about the food choices I make for my family.”

2014

2015

17%

18%

55%

56%

28%

25%


0 to 3 4 to 7 8 to 10

2015 Mean = 5.702014 Mean = 5.84

2014 20155.50

5.75

6.00

6.25

5.84

5.70


“I trust today’s food system.”

Consumer Insights on Trust-Building Transparency

J.J. [email protected]

28 January 2016