NAVIGATING CONSUMER ACTIVISM: How Industry Can Be a Part of the Dialogue Without Letting Consumers’ Whims Drive Business Strategy

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NAVIGATING CONSUMER ACTIVISM: How Industry Can Be a Part of the Dialogue Without Letting Consumers’ Whims Drive Business Strategy MARCH 2014 Page 4 Emotional Eating: It's Not What You Think Page 18 The Sweet Tooth Prevails! Page 20 The Genetics of GMOs Insight Through the Value Chain I WANT... NAVIGATING CONSUMER ACTIVISM: How industry can be a part of the dialogue without letting consumers’ whims drive business strategy Brought to you by March 2014 CONTENTS GMO Technology is Simply 3 Viewpoint 20 Precision Breeding How Food Activists are Changing the Way Consumers 4 Relate to Their Food 23 The Sweet Truth Overcoming the ‘Big is Bad’ ‘All Natural’ Remains Elusive 8 Food Bias 26 Term in Food-Labeling Litigation Communicating Food Transforming the Incredible 11 Ingredients in a Changing World 30 Egg into Credible Marketing From Clean Label to 7 Must-Have Plays to Change 15 Enhanced Natural 32 Your Online Marketing Game Sweetener Attitudes vs. Buying 18 Behaviors Among Consumers #THEBRJ Food Product Design | BRJ BOARDROOM JOURNAL 2 theboardroomjournal.com Viewpoint Are You the Driver or Navigator? iven the choice, I’d rather be the driver than the navigator. There’s a perception of greater control and decision-making power that is lacking when sitting in the passenger seat. When traveling in parts Gunknown, the navigator takes on a critical role; if she wants to go off the highway or stop for a bite on the way, giving those directions can take the driver off the expected path. What does this have to do with your business practices? In today’s increasingly interconnected, social media-driven world, consumers are taking an active interest in companies’ business practices and wanting to have more say. Back in the 1970s, if my The challenge mom didn’t like a cereal, she wouldn’t buy it again and maybe would tell the story to a friend or two. Today, she might share the story on Facebook, or write a blog, or write to the facing food company, or start a petition around an ingredient of concern or ... you get the picture. The challenge facing food and beverage companies is to operate in a world and beverage overwhelmed with information—not all of it accurate or productive. Increasingly, consumer companies activists are targeting ingredients, or even whole categories of products, for real (or perceived) concerns, and looking for companies to quickly respond, whether with is to operate reformation or explanation. Every day brings a new story of a company reformulating products (today was Subway removing azodicarbonamide from its bread; last week was in a world the GMO-free Grape Nuts), whether the change had already been in process or was in response to a Change.org petition or other public outcry. overwhelmed This quarter’s issue of The Boardroom Journal delves into the topic of ingredients and with the activist consumer. It’s playing out in the legal realms, as discussed in articles on the “all-natural” label; around ingredient suppliers, with a great look at the comeback of the information— egg from ‘80s concern to ‘10s ideal inclusion; into the marketing department, where our contributors offer insights on how to both listen to and hear consumers; and certainly not all of it across the broader R&D landscape, where bigger issues like biotechnology are facing a frenzied outcry with a lack of rationale dialogue. accurate or Ultimately, businesses are looking to provide consumers with the foods and beverages productive. they want, while running a profitable enterprise that contributes to the economy and keeps folks employed. Keeping an open dialogue and providing more transparency may be the way companies can share the road and keep their customers on board for the long haul. Best regards, Heather Granato VP Content, Health & Nutrition Network [email protected] @heathergranato Food Product Design | BRJ BOARDROOM JOURNAL 3 theboardroomjournal.com How Food Activists are Changing the Way Consumers Relate to Their Food BY LORI COLMAN rom the C-suite to brand management to Professionals such as Greenpeace and Green the food lab, ask virtually any executive America are often crafting impressive multi-media campaigns: involved in food processing what keeps • Most famously, Greenpeace went after Trader them up at night: being the target of food Joe’s for selling red-listed seafood with its activists is sure to be high on the list. We “Traitor Joe’s” campaign (traitorjoe.com) and hit are in the midst of a tremendous power • Nestle for the palm oil in Kit Kat bars (greenpeace. Fshift between businesses and their customers, and org.uk/files/po/index.html). food companies absolutely must have a game plan. • Green America petitioned Cheerios to drop the GMO grains and is now focusing on Grape Nuts What it boils down to is Americans have trust There are multitudes of activist bloggers, a issues with “big food”—myriad recalls, the banning community replete with conferences, awards (“The of trans fats and studies linking the role food plays 100 Best Mommy Blogs”) and entire enterprises in disease have put consumers on the alert. launched by one-time hobbyists who made it big. Labeling laws, the transparency that the Internet There are names like Jamie Oliver and Marion Nestle provides and the outlet for discussion that social who have large followings and seek social change as well. Then, there are common folks with concerns, media offers have collectively created the perfect referred to by the insiders as “amateur activists.” storm for debate and for change. A petition platform that’s making it easy for the Food activists and evangelists are transforming the amateurs is Change.org, which launched in 2007 as relationship people have with what they eat. For a blogging platform and is now solely defined as an processed foods, ingredient performance and empowering platform for sourcing are under the microscope. Yet most food petitions. The statistics are companies are loathe to give these activists the time incredible—40 million global of day, accusing most anyone who questions their users post as many as 1,000 practices as at best uninformed and, at worst, stupid. petitions per day. A recent headline of an op-ed piece in Forbes by In a Fast Company story contributor Henry I. Miller entitled, “How much of (September 2013), Food Activism is Airy Fairy New Age Nonsense?” Change.org’s director of points to the folly of the Food Police and the “loonies” campaigns, Katie Bethel, like Michael Pollan, Mark Bittman and pretty much said, “Campaigns that rise everyone at the Center for Science in the Public to the top are based in Interest (CSPI). What Miller—like many food strong stories of companies—fails to grasp is handling consumer individuals standing challenges with rage or indignation comes off as against injustice that smug and ultimately gets you nowhere. The genie is anyone can understand.” never going back into the bottle and thus created a Change.org recently added new normal for the food industry and a huge the ability for a company opportunity if embraced correctly. But before we dive that has been the target of a into that, let’s first look at the types of food activists petition to be able to post a and some incredible statistics. public response to an issue. Food Product Design | BRJ BOARDROOM JOURNAL 4 theboardroomjournal.com A recent study by Ketchum Communications took notice. The two women made multiple identified a population segment they call Food appearances on ABC, NBC, CBS, Fox, CNN, Dr. e-Vangelists. Young, financially secure, action- Oz, etc., asking why Kraft would use colors oriented, global in perspective and active online, banned in other countries. On Nov. 4, about nine this group wants to influence the way food is months from the posting of the petition, Kraft raised, grown, packaged and sold. It is estimated announced the removal of the artificial dyes that collectively, they generate 1.7 billion from some of its Mac & Cheese products. conversations about food online each week! Gatorade’s removal of brominated vegetable A few of the more recognized food activists oil (BVO) came on the heels of a Change.org include The Food Babe, Vani Hari petition by Sarah Kavanagh, a young girl who (foodbabe.com) with more than 200,000 asked the company to not “put flame retardant Facebook fans and a Twitter following of more chemicals in sports drinks.” More than 200,000 than 40,000; Lisa Leake, whose “100 Days of supporters signed this online petition and soon Real Food” has 1.2 million Facebook fans; and thereafter BVO disappeared. According to Jamie Oliver, who has nearly 4 million Facebook Gatorade, the reformulation was “in the works fans. Each of them (and many others) has their for over a year as a response to concerns from faithful followers and their detractors. Whether consumers but not because of the petition.” you love them or despise them, you have to Starbucks, on the other hand, took less than a acknowledge their incredible ability to influence. month to switch its red food coloring from cochineal to lycopene as a result of a Change is Inevitable Change.org petition that drew only about 7,000 Recent reformulations by Kraft (Macaroni & signatures. Knowing its audience exceptionally Cheese), PepsiCo (Gatorade) and Starbucks have well, Starbucks adjusted and moved on. In fact, been spurred by activists petitioning online, the company actually apologized. No fighting specifically through Change.org. The way each back. No protesting the unfairness of it all. And of these campaigns unfolded is interesting. certainly, no attempt whatsoever to come off as Let’s look at Kraft. The aforementioned Vani disdainful of its critics. Hari and Lisa Leake posted a petition on Change.org in February 2013 to “stop using Handling it Badly—What We Can Learn dangerous food dyes in our mac & cheese.” In From HFCS and Pink Slime March, Kraft posted a lawyerly response about Two of the most impactful advocacy initiatives following the laws and regulations in the in the past few years have been those against countries where products are sold, and how in “Pink Slime” and high fructose corn syrup the United States all colors are approved and (HFCS).
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