FReSH insight report CONSUMPTION

UnderstandingBEHAVIOR the shift ANDrequired towards TRENDS: healthy, sustainable and enjoyable diets Reform for Sustainability and Health (FReSH) thanks the following companies for their contributions to this insight report on consumption behavior and trends.

FReSH consumption workstream leaders:

FReSH consumption workstream member companies:

FReSH would also like to thank the following organizations for sharing their case studies in this report:

2 FReSH insight report FReSH insight report 3

FReSH insight report PB 4 FReSH insight report Content 1. Private-sector opportunity for a shift towards healthy, sustainable and enjoyable diets within planetary boundaries 2. Introduction The changing food landscape demands urgent adaptation 12 FReSH as a driving force behind transformation 13

3. Understanding consumers and future trends 14 Current consumption behaviors 16 Food preferences and choices 19 Barriers and enablers 20 Food influencers 23 Food trends and future drivers 24

4. Opportunity areas for the private-sector to drive transformational change towards healthy and sustainable diets 28 A . 29 B . Proactive self-regulation 30 C . Shaping demand by engaging with people in the right way 30 Promising examples from selected companies towards the FReSH shared ambition 33 Company examples 34 Danone 34 Kellogg Company 35 Nestlé 36 Sigma Alimentos 37 Sonae 38 Stora Enso 39 Unilever 40 Research and advocacy 42 Smart Food 42 World Resources Institute 43

5. Conclusion and outlook 44

6. Acknowledgements 46

FReSH insight report 5 1. Private-sector opportunity for a shift towards healthy, sustainable and enjoyable diets within planetary boundaries

6 FReSH insight report As businesses we have provided a broad set of food choices to people for decades. In this era of increasingly constrained resources, population growth and dietary-related disease, we need to deliver a broad set of food choices that all taste good, are nutritious, healthy and sustainable. To drive these better choices we must harness our knowledge of trends, behaviors and attitudes to food and align our business models within this paradigm shift.

Peter Bakker, President and CEO, World Business Council for Sustainable Development

FReSH insight report 7 Our global food system is unsustainable, unequal, destabilizing and unhealthy.

Not only is one third of food And while we acknowledge that Besides the societal and produced lost or wasted and business has played a key role in environmental urgency, improving 40% of agricultural soil degraded, these systems both on the positive food systems also provides 800 million people are also and the negative side, businesses a significant global business undernourished while food are joining forces to transform them. opportunity: A worldwide food and insecurity generates civil unrest. In order to identify best practices agriculture system in line with the In addition, two billion adults are to address the consumption Global Goals has an estimated value overweight, leading to increased challenges listed above and to potential of over US$ 2.3 trillion at health care costs and a rise in improve the value chain, a joint current prices. noncommunicable diseases program has been established in both the developing and the between EAT and the World developed world. Business Council for Sustainable Development (WBCSD): Food Fixing this broken system will require Reform for Sustainability and Health US$ 2.3 T a full-scale transformation. We (FReSH). It is designed to accelerate is the estimated need to provide healthy, enjoyable transformational change in global value of food system diets for all while contributing to food system, ensure healthy, in line with Global Goals socioeconomic development enjoyable diets for all, and provide and minimizing (and eventually that are produced responsibly eliminating) environmental impacts within planetary boundaries. and .

8 FReSH insight report This report assesses people’s Looking into the future, seven When FReSH was food behaviors, their preferences, major trends forseen by and how they select food, showing our member companies are launched jointly by that while several patterns summarized, which will guide food EAT and the WBCSD, can be categorized, there is consumption in the near future. a set of workstreams no clear and objective way to Based on those findings and project the behavior at any given the identified trends, this report were created across moment. Several influencers are proposes three opportunity areas the value chain, furthermore identified, which for the private sector to accelerate from production to play a critical role – sometimes businesses’ contribution towards from a very early point in our lives. a positive change of the food consumption. While those influencers are very system: (i) innovation (ii) proactive The consumption workstream set important to understand how to self-regulation and (iii) shaping out to provide an overview of the drive transformational change, demand by engaging with aggregated knowledge shared this report also assesses barriers people in the right way and gives confidentially by our participating - namely affordability, accessibility, examples of current initiatives and member companies as well as and food safety - that prevent a projects moving in that direction. publicly available consumer insight shift towards a more healthy and reports. This report is a summary sustainable diet. of findings and observations collected from nearly 80 consumer research reports. It provides a common base of knowledge about people’s food consumption behaviors, their preferences, and how we as people select food both globally and across eight regions— broken down into developing and developed regions This report does not intend to address a specific gap in consumer research or provide detailed scientific proof of each trend identified, but rather to provide transparency on consumption insights and opportunities identified by the program. The presented information is only a starting point meant to serve as food for thought and a basis from which to further develop opportunity areas and ideas such as looking at how business has driven consumption patterns and internal drivers. In addition, the report highlights the work that member companies and others are already doing to help accelerate positive consumer behaviors, preferences, and trends. These are first steps toward the FReSH shared ambition and the right transformational direction.

FReSH insight report 9 2. Introduction

10 FReSH insight report A full-scale transformation of the food system is required to enable healthy, enjoyable diets for all while contributing to socioeconomic development and minimizing (and eventually eliminating) environmental impacts and waste.

Businesses interact with customers For instance, reducing food waste The majority of the food consumed in different ways and with different in the value chain is estimated to be throughout the world is produced purposes. While it is acknowledged worth up to US$ 405 billion a year and supplied by the private that every business has to promote by 2030, while low-income food sector. This puts large and small its own products in order to make markets are valued at up to businesses at the heart of both profits, there are many examples US$ 265 billion in revenue growth1. the challenges and the solutions. of how making profits and “doing Where traditionally the focus of The companies that embark on good” can be combined. efforts to address food system this transformation journey first sustainability issues was on farm have the chance to demonstrate The potential value for a worldwide to fork, it is now time to look at fork leadership and position themselves food and agriculture system in line to farm: considering consumers’ ahead of the curve. with the Global Goals is estimated at needs and desires at the heart of solutions to enable longer-term US$ 2.3 trillion consumption shifts while taking at current prices. a complete value chain approach that links food consumption to production, distribution, and agriculture.

1 Business and Sustainable Development Commission, 2017. Better Business Better World. Available at: https://sustainabledevelopment.un.org/ index.php?page=view&type=400&nr=2399&=1515

FReSH insight report 11 The changing food landscape demands urgent adaptation

At present, agriculture is estimated In general, digital platforms have the to be the driver of around 80% potential to change consumption of deforestation and 70% of behaviors by increasingly providing freshwater resource usage consumers with consistent and 80% worldwide. Because of pollution high-quality food, consumption of deforestation and depletion of water resources, data, and speed of delivery. 28% of agriculture (including 58% Powered by increasingly capable and 70% of of irrigated cropland) already mobile technologies, consumer freshwater takes place in water-stressed choice is also greatly influenced by regions2. Moreover, nearly 70% social media. While technologies resource usage of all agricultural land globally is are enabling increased food considered degraded: eroded or transparency and accessibility through agriculture robbed of its nutrients by poor land in urbanized areas, the increase management and rapidly losing its in low-end discounters and ability to provide sufficient food to price transparency can enable local and far-flung populations. food access in low-income Population and economic growth neighborhoods and communities. brings an increased use of these While the world is wealthier than it natural resources, creating has ever been, with people in the 66% greater pressure on food systems middle-income bracket making of the world’s and the land, water, and energy between US$ 10 and US$ 20 per required to grow food. Since the day doubling in the last 15 years4, population world’s population is projected to income inequality remains one expected to live reach 9.2 billion people by 20503, of the biggest social challenges sustainable solutions need to we face, with 56% of the world’s in cities by 2030 be found. In addition, 66% of the population in the low-income world’s population is expected to bracket5. In addition, the cost of live in cities by 2030. The increase living is increasing faster than of diverse cultural backgrounds income for many people, impacting and skill sets in big cities is creating their consumption power and the an emerging middle class that foods they are able to buy. demands a greater choice of foods This is especially critical since food and . prices are expected to double Consumer choice over the next two decades6, mostly greatly influenced Convenience will also be a major affecting the emerging middle driver of food consumption in classes living in cities who are by social cities, since time is a scarce dependent on cash from jobs in resource. As people become more a vulnerable job market threatened media urbanized, their food selection is by increased robotization. increasingly determined by what is quick, available, and ready-to-go. All in all, the changing food Therefore, hyper-convenient digital landscape is presenting shopping will play a big role, since it is serious challenges that making food accessible everywhere need to be addressed by at any time. all players involved.

2 Food and Agriculture Organization of United Nations, 2017. The Future of Food and Agriculture 3 https://www.un.org/development/desa/en/news/population/world-population-prospects-2017.html 4 http://www.pewglobal.org/2015/07/08/a-global-middle-class-is-more-promise-than-reality/ 5 http://www.pewglobal.org/interactives/global-population-by-income/ 6 https://www.theguardian.com/environment/2011/may/31/oxfam-food-prices-double-2030

12 FReSH insight report World’s FReSH as a driving force behind 70% population of all agricultural transformation projected to reach land globally In order to identify best practices to address these consumption considered challenges and deliver improved 9.2 billion health and sustainability along the degraded people by 2050 food value chain, a joint program has been established between EAT and WBCSD: Food Reform for Sustainability and Health (FReSH). It has been designed to accelerate transformational change in global food systems in order to provide healthy, enjoyable diets for all-diets Convenience Digital shopping that are produced responsibly within planetary boundaries. as major driver making food To achieve this ambitious goal, of food accessible FReSH has brought business and consumption everywhere at science to work together. It draws on global knowledge and efforts in cities any time from premier research institutions and is working with the business community to develop successful and impactful solutions.

Putting the consumer at the center, FReSH has emphasized understanding consumption behavior and trends since its Food prices launch in mid-2016. With currently 56% expected around 40 member companies, of the world’s FReSH is trying to catalyze change to across food systems, now focusing population in double on a number of transformational over the next goals, specifically dietary shifts, low-income two decades food loss and waste, the true cost of food, and addressing hunger bracket in supply chains, along with measuring and reporting.

FReSH insight report 13 3. Understanding consumers and future trends

14 FReSH insight report The focus of the work within the consumption workstream of FReSH has been to assess people’s food consumption behaviors, their preferences, and how they select food - based on over 80 reports from public sources and member companies.

We have evaluated the main The heat map in Figure 2 provides The original research conducted influencers of food selection, a consolidated overview of the by the consumption workstream assessed the main barriers, and relevance of global behaviors analyzed eight regions of the world. identified the major trends shaping based on the “food consumption” This report provides a high-level future food consumption. workstream’s research findings. summary of this work by focusing It also includes consumption on the aggregated global findings; The objective of this work has been behavior barriers and enablers, the detailed findings would go to highlight the food consumption as well as future trends across beyond the scope of this report trends and behaviors that need to eight different regions, and shows but are available to FReSH member be accelerated, and conversely the relative importance of a topic companies upon request. those that need to be decelerated across regions, from insignificant and eventually reversed, in order to highly relevant. to identify concrete steps to improve the food system and to subsequently support a healthy and sustainable diets within planetary boundaries.

FReSH insight report 15 Current consumption behaviors

A growing number of people around the world are seeking healthier lifestyles. However, there are many factors influencing people’s food choices including availability, affordability, cultural preferences, lifestyles and convenience.

As seen on the Relevance Heatmap Figure 1: Definitions for Relevance Heatmap (Figure 2), a few major consumption 1. BEHAVIORS EXPLANATION behaviors stand out globally today: Convenience and on-the- go Speed and ease as a key purchase factor Food as a treat Food as a reward or stress relief towards instant satisfaction Food as self-expression Food as a reward or stress relief towards instant satisfaction Food as an experience Desire to discover new products or features and add • Convenience and on-the-go: them to one’s diet Search for healthier Demand for natural, organic, simple, and less processed foods; The time investment required to strongly driven by Millennials access a can be as influential 2. FOOD PREFERENCES in the food selection process AND SELECTION Simple, real, natural Search for minimally processed and more natural or organic foods as nutrition or ingredient claims. Low in , , lactose, etc. Low in sugar, fat, caffeine, and components leading to intolerances Less formal , up to six, are Ethical Ethical attributes in foods such as fair trade, organic, portion control, and fortification certifications replacing the traditional three meals Flexitarian Adoption of a flexitarian diet, one that is plant-based with the a day. Complete meals are being occasional inclusion of meat Smaller portions Consumption of smaller portions of food in general and of substituted with quick mini-meals and indulgence treats in particular snackification, both at home and on Processed foods Desire for convenient processed foods as a result of an urban the go, to adapt to people’s lifestyles, lifestyle Animal protein High animal protein consumption, mainly meat especially in cities. In the UK, The 3. BARRIERS Telegraph called millennials the Availability Sufficiency of the national food supply, the risk of supply “takeaway generation,” with research disruption, national capacity to disseminate food, and research efforts to expand agricultural output showing that they are ordering up Affordability Ability of consumers to purchase food, their vulnerability to price to 10 a month. This growing shocks, and the presence of programs and policies to support customers when shocks occur trend is linked to the ease of ordering Food safety Variety and nutritional quality of average diets, as well as the meals with an increase in the number safety of food of services such UberEats, Deliveroo, 4. INFLUENCERS Social media Celebrity endorsements, Instagram, Facebook, online advertising, and Amazon. In Southeast Asia, there and company websites’ influence on eating behaviors 7 was a 133% increase in the number Friends, family, etc. Recommendation from a friend or family member Traditional media TV, radio, and newspaper advertising of food and launches with on- Educational system School influence through food and eating habits the-go claims in 2016 compared to Regulatory Government initiatives to influence food selection towards better 2012. In , Mintel shows a 55% choices 5. TRENDS increase in the number of food and Tradition Maintenance and celebration of traditional food habits drink launches advertised as “on the Adventure Search for unique food experiences, new ingredients, and flavors Plant-based Desire to eat natural, simple, and flexible diets, downsizing meat go” between 2012 and 2016. protein consumption Food waste elimination and individual efforts towards food waste elimination Hyper-convenience Time and ease of access as a key factor in product choice Health awareness increase Desire for healthy and sustainable food as a means of achieving well-being and quality of life Accessible nutrition Increased demand for safe, affordable, and nutritious foods. More people expecting to find affordable options in the marketplace that are also healthy

7 https://foodindustry.asia/a-look-at-food-and-drink-trends-in-southeast-asia

16 FReSH insight report Figure 2: Relevance Heatmap Africa Developed Emerging Developed Emerging Latin Middle North Asia-Pacific Asia Europe Europe America East America

Current consumption behaviors

Convenience & on-the-go Foodie-ism Search for healthier eating Food as a treat

Food preferences & choices Health and belief driven

Simple, Real, Natural Low in sugar, , lactose etc

Ethical Flexitarian Small Portions Desire driven

Empty Calories Processed Foods Animal Protein

Barriers

Availability Affordability Food Safety

Influencers

Friends, family etc Educational System Social Media Traditional Media Regulatory Trends Trends

Tradition Adventure Hyper Convenience Health Awareness increase Plant Based Food Waste Elimination Accessible Nutrition

Insignificant Low relevance Medium relevance High relevance

FReSH insight report 17 • Foodie-ism, the appetite for • The search for healthier eating Shifting towards new food experiences and the is seen through an increase in use of food as self-expression, flexitarians (those who prefer healthier and more is driven by Millennials and plant-based dishes with the sustainable consumption Gen Z who want to experience occasional inclusion of meat) behavior will require new flavors and textures. and the greater demand for This diversity is driving food natural, organic, simple, and to take into account culture trends around the less processed foods, both in present eating behaviors exploration of authentic, global developed and in developing and the relative food experiences, seeking markets. Of particular interest pleasure and indulgence. here are the “Millennial food importance it has in Foods from all over the world sophisticates” who seek foods different regions. are now making their way on to that are minimally processed and into packaged food. (66%) and more natural or organic Furthermore food systems and People from to Brazil are (65%). More of them (63%) believe consumption behavior change more open to experimenting that they are eating healthier cannot be achieved without meeting with new and exotic flavors and than their parents. Millennials are consumers where they are today. The ingredients. In the United States, also constantly getting new food shift also requires an understanding Millennials and Gen Z consumers information from social media and of how people’s food choices are are ethnically diverse and friends. In the last five years, the made at the moment of choice, which incorporate eating habits from number of products labeled as can be contradictory and do not across many different cultures. vegetarian has increased by follow a clear rationale in the context In developing countries, higher 25% and vegan by 257%8. of different circumstances and the spending power has also led to person’s physical and emotional increased demand for foreign • Food as a treat state at that point in time. experiences. Familiar describes foods that serve foods and traditional meals “with as rewards or stress relievers. a modern spin” through They are becoming increasingly packaging, recipe, or popular, especially as more (e.g., on-the-go format, instant) people move to cities and have are also in high demand. In busy lifestyles, where food often addition, in a world where provides emotional breaks social media play such an and rewards towards instant important role in the way people satisfaction. interact, participate in groups, and express themselves, an increasing number of people are sharing their food experiences on Instagram and other social Products Products labeled as media channels. According to labeled as a 2016 BBC Good Food Nation vegetarian vegan Survey, 40% of Millennials have have increased have increased by posted photos of their food on social media channels. This trend by % raises awareness and appetite 25 % for adventure and gourmet eating 257 and influences the food culture among young people.

8 https://www.r-trends.ru/netcat_files/526/459/global_food_and_drink_trends_2017_mentel.pdf

18 FReSH insight report Food preferences and choices

Predetermined food preferences influence people’s food choices, but other external factors can also impact what people choose to eat at any particular moment in time. In that context, two prevailing choice categories have been derived that drive consumption behavior at the moment of choice depending on an individual’s circumstances.

This dual behavior is often displayed easy and appetizing for them to In one of our case studies from the by the same individuals, who make good food choices, removing World Resources Institute, we show make very different food choices the cost and access barriers how, e.g., language that increases depending, for example, on their and ensuring that the food taste food appeal can positively influence state of mind, the types of food appeal is enhanced and never consumer choices. FReSH will offerings available at a certain compromised. continue to explore this topic as part point in time, and also the type of of one of our current focus areas Achieving impact calls for cross- meal occasion. In some cases, the that deals with understanding how sector collaboration and a joint internal and external circumstances to make dietary shifts happen. effort of research, business, affecting an individual might governments and civil society. motivate them to make a health- conscious food choice, while a Figure 3: Health and desire driven preferences and choices few hours later the same individual could be making a choice driven by desire rather than health concerns, with the motivation of instant gratification. Therefore, in order to positively shift consumption patterns towards healthier and more sustainable decisions, we must also understand HH SR how the context and the individual’s Simple, real, natural Empty calories state of mind influences motivations towards a health- or value-driven Low in uick processed foods choice versus a desire-driven one. Ethical, sustainable Animal protein We have listed different elements Flexitarian, plant-based Reward of those choices on the Relevance Smaller portions Heatmap. Figure 3 sums up the Indulgent main differences between the two Food as a remedy Large portions prevailing behaviors towards food Free from choices. Research shows that nudging people to make better food choices for themselves is not about telling them what they should eat but instead is all about making it really

FReSH insight report 19 Barriers and enablers

While healthy foods are becoming more accessible and in many cases also more affordable, people’s decisions on what to eat also depend on physical, economic, attitudinal, psychological, biological, and social barriers or enablers.

Some of the most important Creating the practices to Food safety barriers include: enable access to safe and • Food safety continues to be a diverse fresh concern in developing markets Availability and is a critical step in where, for example, fresh • Food deserts are common in closing the nutritional gap in produce can be available but is both developed and developing many of these communities. not always safe to consume due urban areas. They represent a Building awareness and mental to water-borne diseases or lack significant challenge for low- availability of the taste and of hygiene while handling food. income communities to access health benefits of vegetables According to the WHO, about nutritious and fresh foods in the and fruits is also a key factor in 1 in 10 people in the world fall community, affecting as many closing the consumption gap. ill and over 400,000 people as 20 million people in wealthy 9 die annually after eating nations like the US . 12 Affordability contaminated food. • In rural communities in • Today, cost is one of the top developing countries, there is barriers preventing people a need for greater access to from buying fresh and healthy nutritious fresh vegetables, foods. This is true among low- fruits, and other foods. income and middle classes. According to the World Health In Asia-Pacific, fresh foods Organization (WHO) “developing account for as much as 60% of countries face policy-related food, grocery, and personal and structural barriers to care expenses across and production 10 channels, on average. Fresh and availability” with many foods account for 53% of developing countries losing average expenses in Europe, 30–40% of their fruits and 30% in the United States, and vegetables grown after the 11 25% in Latin America . harvest.

9 https://www.ers.usda.gov/data-products/food-access-research-atlas/documentation/ 10 http://www.who.int/bulletin/volumes/91/1/12-106955/en/ 11 Nielsen, 2013, “Why retailers are keeping it fresh” 12 http://www.who.int/mediacentre/news/releases/2015/foodborne-disease-estimates/en/

20 FReSH insight report Understanding the current barriers to healthy and sustainable food choices is essential for the to tackle the challenges that will drive the transformation. While these barriers vary by region, affordability and food safety are consistent barriers around the world. Food actors working to turn barriers into enablers towards healthier and more sustainable eating need to keep in mind that “taste is king” in food. Taste is indeed one of the main drivers why people buy food, so any efforts to shift consumer behavior should include a strong taste proposition.

Business can play a vital role in overcoming these obstacles by turning supply chain, commercial, and consumption barriers into opportunities and enabling more people to eat healthy and sustainable diets.

Finally, while availability, affordability, and food safety are the most critical barriers, businesses will need to continue to improve nutritional value and understanding, especially acknowledging that dietary habits and choices develop early in life.

FReSH insight report 21 22 FReSH insight report Food influencers

Eating behaviors are already shaped in people first formative years as children learn what, when, and how much to eat based on culture, family, attitudes, beliefs and surroundings.

The most important influencing • From childhood into influencers. Bloggers and other factors are described in more adulthood, social context cultural food influencers are detail below: strongly influences eating important stakeholders to engage behavior. We eat differently in in reshaping the food narrative • Parents play a critical role in a social setting than when we and what constitutes a healthy shaping their children’s food are alone. Moreover, our dietary and sustainable diet relevant to choices based on their own choices tend to converge towards the local culture. This holds true beliefs on what foods support a those of close social connections. especially within the group of healthy child. Millennials, 40% of whom have • Social media posted photos of their food on • The school system and media recommendations received social media, according to a 2016 also influence a child’s eating from food influencers and BBC Good Food Nation Survey. culture. Ingrained food beliefs close networks of friends and or paradigms are shaped by the colleagues through the internet child’s social context and have a or in apps can have a greater These influencers, as well as direct impact on his or her food ability to reshape food narratives, people’s eating behaviors, choices in the short and long e.g., gluten-free or GMOs, than preferences, and barriers term. For example, today’s eating science-based narratives. The have created a food culture culture makes it acceptable and success of the social media even preferable for many families food influencers builds on the and set of trends that will to switch from daily home-cooked trust that people place on the continue to drive the food meals to packaged foods and social media channel and the system in the future. food services. voices of other citizens and social

We want to explicitly acknowledge at this point that while business can play a key role influencing people’s consumption behaviors – and not always for the better – several of the societal influencers listed above can have an even stronger influence on people’s eating behaviors than individual companies.

FReSH insight report 23 Food trends and future drivers

Based on desk research with FReSH member companies, this section lists some of the most important trends to impact food culture in the near future.

Rooted in culture and tradition Food adventure shared with Hyper-convenience technology According to Mintel, two in three Food services are emerging that Chinese adults prefer to eat a Around the world, we’re experiencing include personalized recipes, familiar Chinese rather an insatiable appetite for sharable diets, delivery and ingredient than newer Chinese or Western food experiences, tasting new customization in all possible options13. The familiarity with ingredients and flavors, and turning combinations around people’s the taste profile and certain local them into social currency. A new lifestyles. Time is a very important flavors and recipes with the benefit wave of meal kits and customized consideration when choosing what of increased convenience in the food services are gaining to eat and can counteract or even format or preparation is a food momentum in developed markets, overrule nutrition and health factors trend identified across cultures. demonstrating a new trend towards if a choice needs to be made. Convenient packaging and food food customization and enabling service solutions such as on-the- technologies that make it easier for go and takeout are a welcome people to create, prototype, and upgrade to the already familiar market unique food offerings. foods they love.

13 https://foodindustry.asia/a-look-at-food-and-drink-trends-in-southeast-asia

24 FReSH insight report Health awareness increase Plant-based foods Consumption Increased individual and collective Natural and simple diets are on consciousness are linking trend. The percentage of flexitarians behaviors and healthy and sustainable food is growing across the world. The with well-being and quality of life, United States and Australia are future trends thus supporting expanded food driving the trend in these early vary significantly health and sustainability claims. stages. In Southeast Asia, vegetarian For example, in there is claims increased by 140% in the across regions. a growing demand for healthier period between 2012 and 2016, and and functional products as the vegan claims increased by 440% population ages. In Australia, there during the same period for food and While in developing countries has been a rise in popularity of drink launches in the region14. convenience, food as a treat, detox , as a result of celebrities and food adventure are the top advocating them as a good way consumption behaviors and food to cleanse the body of impurities. trends, in developed countries Finally, there is also an emergence of the focus is on convenience and personalized nutrition and DNA diets proactive health. Figure 4 on the that are radically changing the way in next page provides an overview of which people seek nutritional advice the most prominent behaviors and and personalized health diets. future trends FReSH consumption Food waste elimination work stream has identified for different regions: Mintel calls this trend “Waste Not.” It captures the many industry and individual efforts towards food waste elimination. Many retailers in Europe are already selling imperfect fruits or have unused food collection plans. This is still an emerging opportunity, Accessible nutrition with the United States and Europe The demand for affordable nutritious leading the way. foods for low-income and new middle-class people is perhaps one of the greatest growth opportunities for food companies.

13 https://foodindustry.asia/a-look-at-food-and-drink-trends-in-southeast-asia

FReSH insight report 25 Consumer trends worldwide indicate increasing demand for affordable healthy and natural products

Figure 4: Top consumer preferences and trends by region

North America • Convenience & on-the-go • Foodie-ism • Search for healthier eating • Adventure

Latin America • Search for healthier eating • Food as a treat • Adventure

26 FReSH insight report Emerging Europe • Foodie-ism Developed Europe • Search for healthier eating • Convenience & on-the-go • Adventure • Search for healthier eating • Hyper convenience • Adventure

Emerging Asia • Food as a treat • Tradition • Adventure • Hyper convenience • Plant-based • Accessible nutrition

Developed Asia-Pacific • Convenience & on the go • Search for healthier eating Middle East • Tradition • Foodie-ism • Plant-based • Food as a treat • Accessible nutrition • Hyper convenience

Africa • Convenience & on-the-go • Tradition • Accessible nutrition

FReSH insight report 27 4. Opportunity areas for the private sector to drive transformational change towards healthy and sustainable diets

28 FReSH insight report Although some businesses are already working towards a positive shift in the food system, the private food sector needs to do more to drive transformational change

While we recognize the role that Food redesign for convenience, be tailored to provide healthier and public-sector regulation needs to health and sustainability: more sustainable meals. play, we believe that business action Unfortunately, most convenient In parts of the world where food is also extremely important to drive foods today for the emerging safety and food availability remain the transformational change that middle class are not exactly healthy a challenge and people still lack is needed in the food system in the or sustainable. This opens up access to clean water, , and near future. The private sector can opportunities for food companies vegetables, food manufacturers use this opportunity to go beyond to redesign existing products as and retailers can partner to what the public sector regulates well as create radically reformulated innovate and deliver affordable and strive to be at the forefront of new offerings with a focus on and accessible foods. The types this movement. For that reason, connecting optimal processing, of innovation areas are manifold- the private sector is even more nutrient-rich foods, and alternative from improved packaging and important to drive transformative proteins to help close the gap. conservation techniques to change in consumption behavior : smart solutions to advance towards “healthy, enjoyable diets Connected to the demand for local production and enhanced for all, produced responsibly within convenient foods, there are many transport. Food manufacturers planetary boundaries by 2030.” opportunities to leapfrog on can also partner with other service Based on the analysis report of sustainable packaging solutions. providers (public and private) to the FReSH research findings, three There is also an opportunity to extend the market reach of existing opportunity areas for the private push towards new methods of players at a lower cost. It’s a clear sector have been identified. conservation, freshness inventory competitive advantage, unlocked tracking, or resealable packaging to by brand value. preserve freshness. A. Innovation Proactive health opportunities Nutrient-rich foods: in retail: The list above Many people today believe a Retailers can leverage trends of provides a sample product is better for them because proactive health, convenience, and it is labeled as “free from” or “low diversified proteins by promoting of clear innovation in”, missing the bigger picture of products with those attributes, opportunities but is whether the food is nutrient-rich providing displays, and creating and supports a balanced diet. Food maximum exposure in stores. not intended to be a brands can work to make foods The adoption of new distribution comprehensive list that are more nutrient-dense and and transparency technologies to promote the FReSH healthy and can make it easier and more of all the sustainable foods narrative aligned cost-effective for people to the private industry with the fast-growing trend towards choose healthy and sustainable simple, natural, and real food foods aligned with their health can help drive through product innovations. preferences. New distribution forward to enable the Alternative protein sources: and shopper opportunities can The growing trend towards more be gained through retail solutions transformation diversified and alternative protein that serve food deserts in in the food systems. sources opens up significant cities. Tracking technology (e.g., opportunities for product blockchain) can support more innovation and mind-changing effective decision-making along storytelling with protein sources the food supply chain on health and coming from fish, insects, and sustainability impacts and drive pulses, to name a few. greater transparency for shoppers. Food and meal home deliveries can

FReSH insight report 29 B. Proactive self-regulation to a single scalable change in food Focus on children: labeling that can significantly reduce Educational initiatives and Collaboration: edible food waste by simplifying partnerships geared towards The private sector can work food labels to “use by” and “best if younger generations are needed to throughout the value chain to drive used by.” Technology can enable change the nutritional paradigms proactive industry-wide initiatives greater farm-to-fork transparency formed during early years of life. towards FReSH’s shared goal and nudge consumers to make In many emerging markets, when of “healthy, enjoyable diets for better choices by providing helpful parents move up to the middle all, produced responsibly within information that can positively class, they buy more packaged planetary boundaries by 2030.” influence their choices. foods for their kids and see this as Harmonization: doing the right thing, as packaged Reframing food value: The private sector can help advance foods are more convenient and safe Educational initiatives are needed to and accelerate legislation on a to eat. The opportunity here is to reframe the value of healthy foods national and international level that ensure that parents don’t have to and emphasize the health, taste, and supports a shift towards a healthier compromise convenience for their versatility benefits to create mass and more sustainable food system. children’s health. demand for healthy and sustainable For example, a higher level of foods. Beyond education, it also Make it easier to prevent food label transparency with regard to includes the opportunity to enroll waste through education: health and sustainability of foods key food influencers, including Reducing food waste is not as can make it easier for shoppers to partnering with chefs to influence big a concern for people as choose foods that are better for food culture. For example, FReSH other food behaviors are (e.g., them. Mobile applications and other could consider a coalition of aligned food convenience). To provoke a technical solutions can inspire and FReSH chefs to help deliver on the transformational change in the way enable shoppers to make better shared FReSH program ambition people think and act around food choices for themselves and the towards a healthy and sustainable waste, companies can work together communities they source from. food system under planetary to use big data, technology, and boundaries. Chefs can help society packaging to help people better overcome the often perceived preserve the freshness of foods, C. Shaping demand by trade-offs of healthy versus tasty, facilitate portion control, and reduce engaging with people in the exemplified, for instance, by the food waste at home. Food producers right way Plant-Forward Global 50 curated by and retailers can also do their part to Create transparency to enable the EAT Foundation and the Culinary reduce food waste and loss along the better consumer choices: Labeling Institute of America. Leveraging the supply chain, considering how they can help consumers make better influence of social media as well purchase ingredients and packaging choices from a nutrition and as engaging in multi-stakeholder while exploring how reducing waste sustainability point of view. partnerships can furthermore help in the supply chain can be turned into The 2017 Consumer Goods Forum’s to make an impact. consumer value. call to action to more than 400 consumer goods companies shows We acknowledge that, over the how, together, companies can play past years, there have been many failures “educating” people towards healthy and sustainable eating. FReSH is collaborating with leading organizations in behavioral change to collect best practices and successful case studies to inform FReSH opportunities.

Basic good practices include the use of inspiring language and visuals that reframe the value and increase desire towards more sustainable and nutrient-dense diets, as well as choosing the right social media and cultural influencers who are trusted (e.g., chefs) and can inspire people to make better choices. These practices need to be a focus area for FReSH’s market-based solutions.

30 FReSH insight report FReSH insight report 31 32 FReSH insight report Promising examples from selected companies towards the FReSH shared ambition While it is still early days to say food companies are helping shift towards a healthier and more sustainable food system, it is worth covering some of the efforts companies are making to drive social and environmental impact through brand and supply chain innovations as well as educational initiatives. The case studies in this report show and the key trends it addresses. that it’s still early in the journey, with some examples of how businesses Furthermore, the key impact area is many opportunities still remaining are identifying solutions and laid out and an indication is provided for companies to take more interventions to help contribute to of the number of people impacted. proactive actions to help shift value healthy and sustainable consumer Although the case studies below chains and consumption towards a choices. Each case study is mapped provide good examples of how healthy and sustainable food system towards the opportunity areas of companies can effect positive for people and the planet. driving transformational change change, it’s important to recognize

Figure 5: Case Study Overview OPPORTUNITY AREA(S) TO DRIVE TRANSFORMATIONAL CHANGE

Shaping Key Key Geographic Self # of people Company / Case innovation Demad trends impact Comment study influence regulation impacted Contributor Engaging addressed area

Company > Examples Danone Reduction of World Progressive sugar content reduction of sugar > Nature healthy Kellogg MorningStar Farms America intentions into Company Vegucation delicious food > Nestlé for Inspire action and Nestlé Healthier Kids World help 50 M children lead healthier lives > Less Sodium Increase awareness Sigma and Fat in Europe/ and provide healthy Alimentos Packaged Meats products > Transformar.te Decrease food Sonae - transform Europe waste, reduce, yourself reuse and recycle Fresher > Stora Enso Optimise packaging Strawberries Europe from fields to fork of strawberries > Encourage Unilever Follow in My Africa increased iron Green Foodstep intake Research & Diversifying Advocacy > Smart Food Diets and Driving Africa Encourage Commercialization diversifying diets of Traditional and drive sales of traditional grains Grains > World Don’t put Tested how plant- Resources based sections vegetables World on menus change Institute in the corner ordering behaviour

Legend: ATTRIBUTE SCALE

KEY Rooted in Food Adventure Hyper-convenience Proactive Plant Based Food Waste Accessible TRENDS culture and Shared with health Foods elimination nutrition tradition Technology

KEY IMPACT AREA Health Environment Social

# OF PEOPLE IMPACTED < 1000 1000 - 1 M > 1 M

FReSH insight report 33 Company examples

Case Study 1: DANONE

Regarding fresh dairy products, for 21% of the volumes sold in 2017 have instance Danone has progressively had their nutritional value improved reduced sugar and fat content by reformulation in the three previous of brands in many countries. The years. Thanks to these efforts, by margin of reduction was minimal for the end of last year, 67% of Danone’s every year to ensure that consumers whole portfolio was compliant with did not notice a significant change their ambition for 2020. in taste but benefited from the To set up a mission as ambitious as continuously improved products. bringing health through food to as Even with these small changes in many as possible was a strategic sugar and fat levels, Danone was able decision Danone took two decades Progressive to achieve significant results over ago. Through a combination a long period of time. In Germany, of divestment, investment and reduction of sugar the kids brand ‘Fruchtzwerge’ has innovation, Danone has shifted the content reduced its sugar content by 25% share of its portfolio that classifies 15 When it comes to health, Danone since 1991. In Canada, added as ‘healthy categories from 39% strives to improve the nutritional in Danino drinks have been reduced in 1996 to 88% in 2016. The rest of quality of its products. To achieve by 18% since 2013. its portfolio is made up of healthier categories that allow customers to this goal, Danone has deployed Today, Danone has defined new choose options that improve their comprehensive internal nutritional targets with the objective to meet diets, like low sugar beverages, targets since 2005. These targets them by 2020 for all categories. They occasional chilled products, and have been applied in product are based on official nutrient intake cooking aids. The recent acquisition renovation and innovation projects, recommendations (WHO, EFSA, US of WhiteWave enabled Danone to in the frame of the “Nutrition Check” Institute of Medicine, etc.), the latest add a wide variety of great-tasting, procedure embedded in the scientific references on dietary healthier food to the portfolio. company’s project management practices as well as in-house targets system. They are based on nutrition developed from Danone’s own science, taking into account research programs. technical feasibility, and the consumer acceptance journey.

15 Danone has an operational definition for “healthy categories” that regroups products for the general population that are intended and suitable for daily consumption in line with the food-based dietary guidelines (water, yogurts, and other daily dairy products, milks, and sugar-free beverages) - products for early life nutrition (children below 3 years) and advanced medical nutrition products ; these products have a nutritional composition that is tailored to the needs of their specific targets; and they comply to very demanding regulations

34 FReSH insight report Case Study 2: KELLOGG COMPANY

The campaign featured materials As the campaign initiator, including news articles, educational MorningStar Farms formed a strong videos, a documentary and a Veg relationship with its consumers, Effect CalculatorTM—a unique who shared the positive benefits of tool allowing users to calculate swapping animal-based meals with the environmental impact that MorningStar Farms and other plant- swapping meat-containing meals based foods. MorningStar Farms® for veggie meals has on water While education on plant-based usage, land usage, and greenhouse ‘Vegucation’ - “Just 18 eating with initiatives such as gas emissions . The objective Vegucation continue to be very what the world of the calculator was to help US important for MorningStar Farms, TM consumers understand the power ordered ” the brand also recognizes the that they had to make sustainable Today, people in the United States critical role taste places in driving decisions and informed food consume on average 181 pounds of consumers’ choice, which nudges choices – at literally every meal. meat per person per year16. Raising a behavioral change towards more The Veg Effect Calculator animals for food consumes water, plant-based eating. Three quarters demonstrated the impact that land and energy. For example, of the U.S. population is open to swapping just one meal a week 19 cattle, raised for beef and milk, eating Veggie foods , but most could have on the environment represent about 9.4%17 of total consumers feel that a vegetarian and showed users that one swap anthropogenic greenhouse gas diet is full of sacrifice. In 2017, was equivalent to saving the water emissions. In 2016, MorningStar MorningStar Farms launched “Grill of 201 average showers and the Farms, a veggie line of foods it to Believe it!”, a multi touchpoint greenhouse gas emissions equal to within the Kellogg brand portfolio, commercial campaign with a 6 times the average daily commute. designed a campaign to reinforce focus on the taste experience of the people and planet benefits The campaign was successful. “America’s Number 1 Veggie Burger” of eating vegetarian meals. To The Veg Effect Calculator has during the U.S. grilling season. With carry out the ‘Just What the World generated more than 64,000 unique full commercial support in store Ordered’ campaign, the brand views since its launch and more alongside a robust sampling truck developed three communication than 30 million people have watched tour featuring celebrity Richard content pillars: (1) Veggie Cuisine – the documentary. Sustainability Blaise, MorningStar Farms saw ‘How veggie food fits my life’, (2) Veg was good for business too: the explosive growth through the back for All – ‘Who eats veggie protein’, MorningStar Farms brand saw a half of 2017 and ended the year and (3) Vegucation – ‘Why eat 25% advertising lift for digital and up +13% in Dollar Consumption vs 20 veggie protein’. print on its quest to educate more 2016 . people on the impact of shifting to more veggie meals.

16 Economic Research Service from the United States Department of Agriculture https://www.ers.usda.gov/amber-waves/2017/ januaryfebruary/ us-per-capita-availability-of-red-meat-poultry-and-fish-lowest-since-1983/ 17 http://www.fao.org/news/story/en/item/197623/icode/ 18 https://www.morningstarfarms.com/just_what_the_world_ordered/what-we-do.html#calculator 19 Nielsen P52W Rolling 10/08/16; Veggie Demand Landscape 20 Nielsen SCAN Data US xAOC Calendar Year 2017

FReSH insight report 35 Case Study 3: NESTLÉ

Offering tastier and healthier At the end of 2017, over choices: 7 million parents had registered, Over the past years, more than and Nestlé’s “It Takes All of 17,200 tons of and 8% of sugar Us” breastfeeding campaign have been removed from Nestlé’s reached 120 million parents, products. Furthermore, 1,041 new almost 95,000 healthcare nutritious products where launched professionals and 56,700 in 2017 that are targeted to address employees. children’s daily needs and gaps. Nestlé for healthier • Nestlé product brands also Moving forward, Nestlé has set lead the children’s health kids - A global clear commitments to make their journey. MAGGI, the cooking portfolio more nutritious, including ambition to inspire brand of Nestlé, helps millions a further reduction of salt, sugars, of families tasty and action and help 50 and saturated fats as well as the balanced meals. The brand addition of important ingredients million children lead is deploying an ambitious like fiber-rich grains, vegetables, cooking education program for healthier lives or micronutrient in thousands of parents and kids, with recipes, products across the world. simple cooking tips, and online Today, more than 2 billion people in courses. MAGGI is a Nestlé the world are overweight or obese, Inspiring people to lead billionaire brand with sales and 800 million are malnourished. healthier lives increasing at a rate of more In 2018, Nestlé launched Nestlé • Through the various services than 3 percent. Going forward, for Healthier Kids, an initiative that provided by Nestlé for Healthier as the company continues accelerates efforts to support Kids, it is aimed to foster healthy to transform itself based on caregivers on their journey to behaviors from the start of life its purpose and shared value raising healthier kids. Through the to adolescence. Two examples: approach, it foresees growth of alignment of Nestle’s portfolio A Nestlé program related to the as much as 5 percent. with the nutritional needs of first 1,000 days (Nestlé Start children and the adaptation of Healthy, Stay Healthy) translates their communication and services the latest scientific findings With the launch of the Nestlé delivered, the initiative is aimed at into practical advice and helps for Healthier Kids initiative in helping caregivers raise healthier parents understand what to 2018, Nestlé steps up actions for kids while ensuring sustainable feed, how to feed, and why the healthier kids, with the global business growth. first 1,000 days are so crucial ambition to help 50 million children to their baby’s future health. lead healthier lives.

36 FReSH insight report Case Study 4: SIGMA ALIMENTOS

time enjoy the taste and physical The advertising campaign was characteristics of the products measured and obtained a level they are used to buy. While the fat of awareness of 50% among the reduction varies from one product Spanish population during its first category to another, the sodium three years since its launch; around reduction was around 25% in all 11% of households have bought at of them. least one product from the Cuida-t+ at one point in time. In order to grow awareness on Less sodium and fat consumer minds of this new line, With the success of this product line in packaged meat Campofrio launched a three phase in Spain, Cuida-t+ was eventually campaign, which began with a placed in other Sigma business strong media mix of TV, print, units in Europe, such as NOBRE Sigma, a global food company outdoor, and digital ads, aiming in Portugal and Fiorucci in Italy. dedicated to bringing local favorite to inform consumers about the Moreover, in 2017 Sigma Mexico foods to communities everywhere. innovative product line availability adapted the concept and introduced Within 18 countries, Sigma offers in stores. Later on, the campaign Cuida-t+ under its flagship brand quality branded foods at a range focused on being part of important FUD. of price points and across diverse sports events such as cycling races, Overall, today Cuida-t+line has been categories. Campofrío, Sigma’s etc., through sponsorships, looking successfully launched in more than Spanish subsidiary introduced to address the target market. On ten countries, and is one of the in 2013, as part of its health and the last phase, collaborations were strong pillar product lines in Sigma’s wellness strategy, a variety of made with different organizations health and wellness innovation packaged meat products with low fat whose work is to promote healthy platform. This is only one example of and low sodium content, under the lifestyles, associations such as how global companies can provide new sub-brand Cuida-t +. the Spanish Heart Disease and the healthier and more sustainable The mentioned brand portfolio was Spanish Foundation of Nutritionists. designed for consumers looking for solutions to the needs of their healthier options, who at the same consumers.

FReSH insight report 37 Case Study 5: SONAE

Reuse: Communicate: Assigning a different use to the Generate awareness for food products by donating products that waste by participating in TV shows, no longer have any commercial value publishing reports and news but are still fit for consumption to articles, and distributing about half around 1,000 social institutions and a million “good practices” guides at make them available in social areas Continente stores. Transformar.te - of the stores or warehouses, to be Transform Yourself consumed by staff. Furthermore The project reached around depreciated products are being used 20% of the Portuguese population at internal or external caterings in and impacted more than 20,000 About one third of all food is wasted order to improve awareness about employees directly, giving them worldwide. To tackle food waste food waste. around €15–20 per month in and to reduce, reuse, or recycle products21. In two years, Sonae products without or with limited Recycle: more than doubled its donations and commercial value, Sonae MC, a Transforming waste into new decreased food waste by 10%. Portuguese retail company, created products to be sold at Sonae stores The yearly benefit of the project was the Transformar.te project, which in a circular economy approach by €10M in social benefit and €3M in translates into “transform yourself.” creating new products from the economic benefit. While Sonae didn’t The project is based on four key otherwise wasted food and selling measure the environmental benefit, pillars, namely: them. In order to be successful the brand goodwill, or the benefits this requires telling the whole story across the entire value chain, it is Reduce: and explaining why these kinds of believed to be very significant. Minimizing food loss and waste by products are good for the planet Additionally, the project won the repackaging bags of fruit when any and for society (Sonae e.g. launched sustainability award at the “Food unit is damaged, improving the a range of jams and chutneys and Nutrition Awards” and has depreciation process (pink labels), produced 100% from wastage been chosen as finalist for the reviewing the rules of depreciation, of fruits and vegetables and is “Sustainable Initiative of the Year” improving the operational process preparing a banana following at the World Retail Awards (the (fully mobile), creating different the same principle). winner will be announced on labels for “best before” and “use by” 19 April 2018). and offering happy-hour discounts to speed up the sales of daily products at the end of the product’s life (e.g., takeaway meals).

21 Estimated average value of products at consumer prices that have been given to employees

38 FReSH insight report Case Study 6: STORA ENSO

concept, which focused on three The customer experience: key topics – freshness, seasonality, Most strawberries are sold as and consumer experience – since commodities, with little attention these areas offered the most paid to the potential of branded optimization potential. packaging design. To increase the consumer experience, Stora Enso The freshness of strawberries: decided to design the top-opening Stora Enso found out that the corrugated cardboard sleeve packaging used in the field on the small boxes in a way that slowed down the cooling process allows customers to turn it into a and caused extra work. To improve convenient handle. In addition, the the process, strawberry pickers new take-away boxes communicate used a corrugated cardboard the product’s local origin, since handle to fit the plastic boxes from consumers more and more tend there on. to prefer ethical and sustainable Fresher strawberries In addition, the Stora Enso switched product choices. from field to fork the boxes with larger shipping cartons, which save energy and As a result of the tailored package provide fresher strawberries with a concept, the farmer was able Strawberries are big business in longer . to reduce the labor costs while Finland, but the harvest season also enjoying a fast and simple The seasonality: Consumers tend is short and they are highly packaging process. In addition, to buy only small volumes at the perishable. Therefore, Finland’s the time that strawberries need to beginning of the season when prices largest strawberry farm Koivistoisen travel from field to fork was reduced are high and large amounts when Mansikkapaikka approached offering retailers a fresher product prices start to drop. To address this Stora Enso to ask if the packaging with an increased shelf life. bulk-buying consumer behavior, process could be optimized so Stora Enso created a modular pack that fresher strawberries can be size system. Small, early-season delivered to stores. boxes were combined with larger, Stora Enso’s DesignStudio bulk-sized boxes for late season. cooperated with the customer in order to create a tailored packaging

FReSH insight report 39 Case Study 7: UNILEVER

To measure the impact, a study was conducted in collaboration with Ibadan University using a control and experimental group both consisting of mothers and daughters. The study showed that the programme increased awareness of anaemia from 34 to 79% among mothers and 21 to 73% among daughters in the intervention group. Forty one percent of ‘Follow My Green mothers in the intervention group Food Steps’ - started adding iron-rich leafy green vegetables to stews, which was the Increasing iron in targeted behaviour change. everyday meals As well as supporting Knorr’s ambition to improve iron intake and help decrease iron deficiency ’Follow My Green Food Steps’ is a anaemia, the program helped nutritious cooking behavior change deliver the brand’s sustainable program focused on increasing iron growth agenda as it created an in commonly consumed meals. In uplift in brand equity measures. 2015, Knorr launched iron-fortified By raising awareness about iron bouillon cubes in Nigeria, where deficiency, the programme also approximately 50% of women of created demand for Knorr’s new reproductive age have anaemia and iron-fortified bouillon cubes. iron-rich foods are not often part of daily meals. By doing a deep-dive The Follow My Green Food Steps into current cooking behaviours, a program has since been adapted program was developed to inspire to increase reach through media cooks of today and tomorrow to channels and to be locally relevant. add iron-rich ingredients, including Unilever is working closely with iron fortified bouillon cubes, to existing and new partners to revise their most loved dishes. Through the program for roll-out in Africa and the school and community-based South-East Asia. programme, Knorr has reached over 220,000 mothers and daughters and has demonstrated that a well-designed programme that resonates with consumers via a catchy song and dance, radio drama, in-market reminders and exciting assets, can change behavior.

40 FReSH insight report FReSH insight report 41 Research and advocacy

Case Study 8: SMART FOOD

In order to improve nutrition and Over 60,000 children below five health consciousness in Kenya, years have been reached with ICRISAT developed nutrition nutrition messages through their activities along three pathways: (1) parents, and around 800,000 production for own consumption, (2) Kenyans have been reached with agricultural income, and (3) women’s messages to increase knowledge, empowerment. change attitudes, and modify consumption behavior through the The pathways include educating the Smart Food TV show. local population on the importance of dietary diversity, encouraging In only one year, women’s and Smart Food: them to reserve produce for their children’s behavior changed Diversifying household consumption, using significantly towards a more social marketing approaches to build micronutrient-rich diet, indicated diets and driving markets for cereals and legumes, by a 20% increase in the dietary commercialization of and working to support women with diversity score for women (WDDS) knowledge and skills on nutrition, and an almost 100% increase in the traditional grains energy-saving technologies/ children’s dietary diversity score innovations, and income-generating (CDDS). Similarly, consumers showed Food and nutrition insecurity activities. a considerable change in buying continues to pose a serious patterns since data showed an challenge in many rural households Under the Smart Food initiative, increase in sales of grain for all crops in developing countries. In Kenya, ICRISAT trained over 10,000 men except the ones that are typically nutrition insecurity is reflected in the and women through two-day bought during droughts. Rich in iron increased prevalence of stunting workshops. Over 12,000 women and fiber, both cow pea and pearl (26%), wasting (4%), and underweight farmers have been trained through millet sales at the farm level have (11%) among children under five participatory cooking classes where more than doubled in the period of years of age22 and in micronutrient they were introduced to new recipes one year. There are plans to scale deficiencies. Poor nutrition and a and energy-efficient innovations. the Smart Food approach in other general lack of health consciousness Over 100,000 households have been regions within and outside Kenya. are the main causes of these reached with nutrition messages unhealthy outcomes. through a variety of behavior change communication activities.

22 KNBS and ICF Macro, 2015

42 FReSH insight report Case Study 9: WORLD RESOURCES INSTITUTE

Among 750 adults in the United To remedy this and give the Kingdom who usually eat meat or food industry an effective way fish, 56% were less likely to order of engaging diners who do not a labeled as vegetarian in a consider themselves vegan or separate section. In fact, only 5.9% vegetarian, the Better Buying Lab of those adults who received the is testing a range of language online test menu with a designated around plant-based foods in order vegetarian section chose a plant- to ultimately create a lexicon to Don’t put vegetables based dish, compared to 13.4% of describe the category, its dishes and the adults who received an online their benefits. in the corner menu with plant-based dishes listed The potential for , food among the meat and fish dishes. retailers, , and others to Terms like “vegetarian,” “vegan,” Given just how many rea world boost their bottom line through or “healthy” rarely appeal to menus currently put plant-based plant-based foods while advancing mainstream consumers—and dishes in special vegetarian-only their sustainability goals is there. they could be hamstringing the sections, there is a real opportunity But it will take the right language to advancement of sustainable foods. to increase sales of these foods seize it. Take a first-of-its-kind experiment by changing people’s ordering conducted by Linda , a behavior through more effective graduate student in behavioral language. Alternative language is science and former global strategy emerging, but no one framing has director at Mars, Inc., with support become adopted across menus and from the World Resources Institute’s advertising. The Better Buying Lab Better Buying Lab. Her research has also found that research about tested whether placing plant-based which terms appeal to consumers dishes in a separate vegetarian has also been inconsistent. section on menus influenced people’s ordering.

FReSH insight report 43 5. Conclusion and outlook

Conclusion While clearly emphasizing that An important next phase of businesses have been part of this work will be to build on the While understanding consumption the challenges to healthy and independently researched work behavior is a key prerequisite sustainable food systems in the on planetary boundaries by the for unlocking new supply and past, FReSH member companies EAT-Lancet commission, to be demand solutions towards a are clearly committed to being published later this year, which transformational change of the food part of the solution—not only by will be used which will be used to system, it is time for all food actors accelerating the multi-trillion- identify science-based targets to come together and take action. 22 dollar opportunity but also by for healthy and sustainable food This report aims to lay a foundation developing and driving sustainable systems. of consumption understanding business solutions. This can The FReSH member companies from which to develop business happen in at least three opportunity will continue to towards ‘develop‘ solutions to drive change areas detailed in the report that positive market-based solutions, towards a healthier and more businesses can act on, namely to advocate more strongly for an sustainable food system by 2030. innovation, proactive self-regulation abandonment of unhealthy food It has identified key consumption and shaping demand by engaging practices, and to provide scalable, behaviors, preferences, and with people in the right way. implementable solutions—working barriers affecting people’s food from fork to farm, across the whole choices. Moreover, the report has value chain. examined food trends that will need Outlook to be accelerated or decelerated, In the next stage of FReSH’s respectively, to achieve the shared Recognizing that we are only at endeavor, members will focus on goal of FReSH’s members. the very beginning of the journey building the vision and success towards our 2030 vision, this metrics, and on initiating market- In the overall discussion, it is report provides key insights on the based solutions that help advance important to not only consider ‘fork’ side of FReSH’s fork-to-farm FReSH’s four transformational health and nutrition but also approach. As FReSH teams start goals: (1) closing the dietary gaps, environmental and socioeconomic working on market-based solutions (2) assessing the true cost of food, factors. Social conditions of food to enable its transformational (3) reducing food waste and loss, production in particular are often goals, this report provides critical and (4) addressing hidden hunger in neglected or considered a second understanding of what consumers supply chains. priority behind environmental want and why, so we can build a Working together with member sustainability, while they should new healthy and sustainable food companies and partners, also be an integral part of the system that is relevant, meaningful, FReSH will explore how behavior quest for sustainability. While the and desirable to consumers in all can be shifted to close the gaps focus of this consumption report countries. is on health and nutrition aspects, and drive private-sector action on FReSH as a program considers all To translate the global and those four transformational goals dimensions, which can be clearly regional information and findings to achieve “healthy, enjoyable diets seen in its shared ambition. into transformative business for all, produced responsibly, within solutions, FReSH has performed planetary boundaries by 2030.” All member companies within a gap analysis that compares FReSH acknowledge their current diets with dietary responsibility and share the recommendations. ambition to drive positive changes in the food systems towards more healthy and sustainable practices.

22 Business and Sustainable Development Commission, 2017. Better Business Better World. Available at: https://sustainabledevelopment.un.org/ index.php?page=view&type=400&nr=2399&menu=1515

44 FReSH insight report FReSH insight report 45 6. Acknowledgements

Authors Disclaimer About the World Business Alison Cairns is the Managing This report is released in the name Council for Sustainable Director FReSH at the WBCSD. of WBCSD. Like other WBCSD Development (WBCSD) You may contact her by e-mail at publications, it is the result of a WBCSD is a global, CEO-led [email protected]. collaborative effort by WBCSD organization of over 200 leading staff, experts, and executives businesses working together Paloma Lopez is a brand strategist from member companies. A wide to accelerate the transition to a and sustainability leader at the range of members reviewed drafts, sustainable world. We help make Kellogg Company. You may contact thereby ensuring that the document our member companies more her by e-mail at broadly represents the perspective successful and sustainable by [email protected]. of the WBCSD membership. It does focusing on the maximum positive not mean, however, that every impact for shareholders, the Alexander Meyer zum Felde member company agrees with environment and societies. is a Principal in the Hamburg office every word. Our member companies come of The Boston Consulting Group. EAT is a non-partisan, non-profit from all business sectors and all He is BCG’s Expert Principal on organization devoted to fixing the major economies, representing Sustainability topics. You may global food system. The challenges a combined revenue of more contact him by e-mail at we face are complex and intimately than $8.5 trillion and 19 million [email protected]. intertwined. Thus, our actions employees. Our Global Network must be integrated across sectors, of almost 70 national business Anthony Pralle is a Senior Advisor disciplines and countries. Inviting councils gives our members to The Boston Consulting Group different perspectives to be part of unparalleled reach across and was a core member of the the conversation is necessary to the globe. WBCSD is uniquely Consumer practice area prior to this develop holistic solutions. positioned to work with member role. You may contact him by e-mail The views and opinions expressed companies along and across value at [email protected]. by our programs, partners and our chains to deliver impactful business event participants are their own solutions to the most challenging Other contributors and do not necessarily represent sustainability issues. those of EAT, nor do they represent Cassian Behlau Together, we are the leading voice an endorsement by EAT of any (The Boston Consulting Group) of business for sustainability: united company, service or product. Emeline Fellus (WBCSD) by our vision of a world where more than nine billion people are all living Felicity Glenn-Holmes (WBCSD) well and within the boundaries of Nicolas Jammes (WBCSD) our planet, by 2050. Filipe Josue Oliveira (Sonae) www.wbcsd.org Martin Ruth (The Boston Consulting Group) Follow us on Twitter and LinkedIn: Sebastian Schuliaquer (Kellogg Company) Credits Sophie Zielcke (The Boston Consulting Group) Copyright © WBCSD April 2018

The authors would like to thank the participating companies and their representatives, who greatly enhanced the outcome of the report with their valuable insights and contributions.

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