Conscious Consumption: Navigating the Grocery Store

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In the first installment of a three part series titled "Conscious Consumption", Invoke Solutions digs deeper into the ultimate purchasing choices driven by consumers attitudes and behaviors in relation to terms such as "organic", "local" and "natural.

Some of the key finding from this study are:

-Local offers a three-fold message and is regarded with the highest amount of positivity from consumers.
-While respondents aren't necessarily searching for the information, all three claims influence the purchasers decision for brand loyalty.
-The term "Green" is not the only way to communicate "good for the environment".

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Conscious Consumption: Navigating the Grocery Store

  1. 1. Invoke Live! – Conscious Consumption Part I: Navigating the Grocery Store Key Findings ReportMay 2012
  2. 2. Table of Contents Page Background and Objectives 3 Key Insights 4 Executive Summary 7 Shopping Behaviors: Reading Labels 12 Claims: General Findings 17 Digging Deeper: Local 23 Digging Deeper: Natural 29 Digging Deeper: Organic 35 Digging Deeper: Green 40 Appendix: Respondent Profiles 442 © Invoke Solutions - Confidential
  3. 3. Background & Objectives • In this first of a series of studies on Conscious Consumption, Invoke gathered feedback on consumer attitudes and behaviors regarding product benefit claims and how they are ultimately driving purchase, diving deeper into terms such as “organic,” “natural” and “local” to understand how these are resonating with consumers today. • This study used Invoke’s Live online, real-time research platform to speak to a sample made up of 108 individuals and Invoke’s Open asynchronous platform made up of 103 individuals defined by the following criteria (total sample = 211): • Adults, Ages 18+ • Mix of household incomes, regions, education, ethnicities • Primary grocery shopper • Open to shopping for foods with benefits beyond taste • Not employed in Marketing, Market Research, Advertising, or Public Relations3 © Invoke Solutions - Confidential
  4. 4. Key Insights
  5. 5. Key Insights 1. While consumers aren’t often searching for the information, organic, local and natural are all purchase drivers. When asked what information they are looking for on labels, consumers go to more “traditional” information such as fat, calories and sugar rather than claims such as local, organic and natural. However, these claims are often regarded positively and cause favorable brand opinions. This may simply mean a need for food/beverage manufacturers to continue to take the need for searching out by putting these types of claims on package fronts. 2. Local offers a three-fold message. Although local is regarded with the highest amount of positivity from consumers, it actually scores lowest in terms of comparative health perceptions. This may be due in part to local actually delivering not only health benefits to some, but also the chance to support a local economy and a way to positively impact the environment to others. Those developing and manufacturing products with local claims should keep these messages in mind. 3. Local is not defined. Consumers are slightly more likely to consider products produced and sold in the same state as local, but some others consider distances (such as 50 or 100 miles) or even simply may consider products sold within the same country in which they were produced as local. Therefore, there appears to be a need for standards or at least some sort of definition of local. As it is still up in the air, companies may have a chance to not only sell local products, but also define the term in the next few years.5 © Invoke Solutions - Confidential
  6. 6. Key Insights (cont.) 4. Natural raises doubts. While natural claims to garner a good deal of positivity from consumers, some do raise concerns regarding the lack of standards to define the term. This causes some to question how meaningful the term is. Perhaps this means that companies considering use of the term (since it is received so positively) need to be cognizant of this doubt and include information on-package that helps explain what makes the product natural, such as an absence of artificial ingredients. 5. Cost is still a concern. In the cases of both organic and green products, consumers sometimes remain concerned over costs. Consumers often note that organic products are too expensive and some even question whether the delivered benefits are worth it. When it comes to green products, consumers are specifically saying these claims do not affect their purchase behavior specifically because of the high cost associated with these products. 6. “Green” is not the only way to communicate “good for the environment.” Interestingly, while “green” does signal a positive impact on the environment, other terms (such as organic, local and natural) remain top-of-mind for many when it comes to communicating this, as does packaging. Since green is not as compelling a stand- alone benefit as the other claims mentioned, manufacturers may want to start thinking about how green might work as a secondary message, rather than a primary one.6 © Invoke Solutions - Confidential
  7. 7. Executive Summary
  8. 8. Executive Summary • 86% of consumers pay attention to labels when deciding whether or not to try a new food or beverage. • 67% of consumers are looking for information related to the amount of fat in a food/beverage when looking at the label. This is followed closely by calories per serving, amount of sugar and amount of sodium. Only 26% are looking to see whether the food/beverage is natural, 22% are investigating where the product is made and 15% are checking to see if it is organic. • While consumers often feel informed when reading labels, several note feelings of confusion and being overwhelmed. • When asked which claim would cause them to have the most favorable opinion of a brand, 32% of consumers select organic, 31% select local and 26% select natural claims. 11% would select a product that is not bad for the environment. • 57% of consumers would be less likely to buy a food product if they knew it contained High Fructose Corn Syrup (bottom 2 box). 36% say this knowledge would have no impact on their intent to purchase.8 © Invoke Solutions - Confidential
  9. 9. Executive Summary (cont.) • 84% react positively to products that carry a “local” claim, making it the claim that garners the most positive reaction. When it comes to health, however, products with local claims are regarded as healthy by the lowest amount of consumers (59% top-two box) when compared to natural and organic claims. • Interestingly, local carries with it benefits beyond health for consumers. While they are seen as healthy (often because of an absence of additives), these types of products are also well-liked often because they help to support a local economy, are seen as fresher and/or better for the environment. • Nearly three-fourths of consumers do not associate local claims with a specific brand. A few do associate the claim with brands like Whole Foods’ 365, Dole, Del Monte and Newman’s Own. • While many consumers believe a product needs to be from the same state (or even the same county, city or town) to be considered “local,” some require a specific distance, such as 50 or 100 miles, for a product to be considered local. A few others simply require that the product be from the same country. • 75% of consumers feel positive towards natural products and 70% see these types of products as healthy, often because they equate the claim with an absence of artificial ingredients. • However, some raise concerns regarding how meaningful the claim is when it comes to the health of the product. • Nearly half of consumers do not associate specific brands with natural claims, but others focus on juice brands (such as Tropicana, Juicy Juice, and Dole), store brands (such as Whole Foods and Trader Joe’s) and other national brands, such as Newman’s Own, Kashi and Perdue. • 65% of consumers see no difference between the terms “natural, “all-natural” and “made from natural ingredients.” • For some, however, “all-natural” may mean a more complete list of natural ingredients, while for others, “natural” might communicate a more “untouched” product.9 © Invoke Solutions - Confidential
  10. 10. Executive Summary (cont.) • 73% of consumers have a positive opinion towards products that carry an organic claim and 68% see these products as healthier than those that do not. Similar to natural products, this is often because consumers equate these claims with an absence of artificial ingredients (chemicals, pesticides, preservatives), but some consumers also feel that organic certification requires adherence to stricter standards. • Quite a few consumers note that organic products are too expensive. • Nearly half of consumers do not associate organic claims with a specific brand. However, others do associate these claims with store brands (such as Whole Foods’ 365, Trader Joe’s and Safeway’s O Organics), brands with a strong tie to organic (Newman’s Own, Kashi, Stonyfield, Horizon, Amy’s, Cascadian Farms, Earthbound Farm) and some national brands (such as Dole, Quaker and Mott’s). • Consumers are relatively split on buying products because of how they affect the environment, with 36% saying they do so and 30% saying they do not. Those who do so often are because taking care of the environment is a strong personal issue. Those who do not most often see these products as too expensive. • Although the term “green” does often communicate that a product is not bad for the environment, consumers also say organic, natural and local labeling does this. Additionally, a few consider the packaging used. • Approximately two-thirds do not associate green claims with a particular brand, but some associate the claim with products that fall in the organic category often for consumers, such as Kashi, Stonyfield, Amy’s, Whole Foods 365 and Cascadian Farm. • Even though we specifically asked consumers to name food and beverage brands, a few went to products outside the category, such as cleaning and paper products.10 © Invoke Solutions - Confidential
  11. 11. Key Findings
  12. 12. Shopping Behaviors: Reading Labels
  13. 13. Most consumers pay attention to labels 86% Sought after information on labels • 86% of consumers pay at least some attention 43% 43% to labels (top 2 box) 8% 6% 5% 1% Top 2 Box A lot of attention Some attention A little bit of Not much No attention at Bottom 2 Box attention attention allSome often read labels when More often, consumers tend to read labels when concernedlooking at products such as cereal, about processing or ingredients deemed as unhealthy, such assnacks, frozen foods and juices. sodium or fats.• Cereals, baked goods, snack foods. • I dont like to purchase foods with a long list of processed ingredients like• Cereals, cookies, ice cream. high fructose corn syrup and hydrogenated oils (trans fat), artificial colors,• Snacks like chips and crackers. and other unnecessary chemical ingredients.• Frozen foods with a lot of preservatives. • Check out if whole grain, low sodium, low sugar and has the FDA organic seal.• Juice products that claim to be 100% natural. Selling at such a premium price, • I spend more time reading the labels of unhealthy foods to see exactly how I want to make sure Im getting bad they are, things like trans fat, sodium and sugar. something good • Highly processed foods. • I look for artificial sweeteners, fat, sodium content, Q: When youre deciding whether to try a new food or beverage, how much attention would you say that you typically give to the information available on product labels? Q: Are there any types of foods/products for which you typically spend more time reading the labels, if so, what are they?13 © Invoke Solutions - Confidential
  14. 14. Label-readers tend to search for more “traditional” information over claims such as natural, organic and local • 67% of consumers are looking for information related to the amount of fat in a food/beverage when looking at the label. This is followed closely by calories per serving, amount of sugar and amount of sodium. • Interestingly, only 26% are looking to see whether the food/beverage is natural, 22% are investigating where the product is made and 15% are checking to see if it is organic. Sought after information on labels Amount of fat 67% Calories per serving 63% Amount of sugar 62% Amount of sodium 58% I am searching labels for… Familiarity with ingredients 50% • The fat content and the amount of Vitamins/minerals/nutrients included 43% Amount of protein sugar and calories are important. 42% Serving size 38% • Fat content, sodium, sugar, Amount of carbohydrates 33% ingredients. Presence of artificial sweeteners 28% Whether the food/beverage is natural • Calories at this point in time. I may 26% Presence of artificial colors/preservatives 26% change my mind later if health Length of ingredient list 25% requires it (Sugar or Sodium levels). Where the food/beverage is made 22% • I usually look at calories, fat, sugar, Whether the food/beverage is organic 15% protein content, and ingredients.Allergen information (nuts, dairy, wheat, etc.) 14% I do not read labels 3% • Serving size, calorie content, fat Other 2% content, sodium, sugar, vitamins, and the ingredients. • Calories, fat, amount of fiber. Q: Looking at the list below, what information are you usually looking for when reading food/beverage labels, if you are reading them? If you do not read labels, simply select "I do not read labels." (Please select all that apply) Q: What types of information, if any, would you say that you are most interested in reading about on food/beverage labels?14 © Invoke Solutions - Confidential
  15. 15. Most consumers find current labels easy to understand and thorough 82% Label ease of understanding • 82% of consumers say a 52% typical food/product label is easy to 30% understand (top 2 box). 11% 7% 7% 0% Top 2 Box Very easy to Somewhat Neither easy Somewhat Very difficult to Bottom 2 Box understand easy to nor difficult to difficult to understand understand understand understand 82% Label thoroughness 51% • 82% of consumers say a typical food/product 31% label is thorough (top 2 box). 16% 1% 1% 2% Top 2 Box Very thorough Somewhat Neither Somewhat Very Bottom 2 Box thorough thorough nor incomplete incomplete incomplete Q: How easy to understand would you say the information on a typical food/product label is? Q: Thinking about the typical food/product label, how thorough or incomplete would you say the information provided is?15 © Invoke Solutions - Confidential
  16. 16. Reading labels helps consumers stay informed, but also causes confusion and feelings of being overwhelmed “Typically, when I read food/product labels, I feel… • Although many consumers feel positive emotions when reading product labels, noting they feel “informed,” “good/better,” “smart” or “satisfied,” quite a few say they feel confused and/or overwhelmed. • This is especially interesting given the high incidence of consumers claiming typical product labels are easy to understand. Some do note sources of these feelings, such as confusion about what is left off the label or being overwhelmed with the amount of “bad” ingredients in a product: • Shocked at what’s in food. • Overwhelmed that so many artificial ingredients are added. • Like I have some understanding of what is in the food item, but also wonder what is left off the label. • A little lost, there isnt much details and the ingredients are so arcane. • Like there is more than they are stating. • Unsure if all information is given Q: Please fill in the blank for the following statement: "Typically, when I read food/product labels, I feel __________."16 © Invoke Solutions - Confidential
  17. 17. Claims: General Findings
  18. 18. Many react positively to local products, though it might not signal health as often as natural or organic claims Key measures (% top-two box) Local Natural Organic Opinion of products with claim 84% 75% 73% Perception of health 59% 70% 68% Change in purchase behavior 40% 44% 41% (compared to 3 years ago) • 84% of consumers have a positive opinion of products that carry a “local” claim, making it the claim that garners the most positive reaction. Both natural and organic claims are regarded with a relatively equal amount of positivity from consumers, with 75% and 73% giving each a top-two box rating, respectively. • Interestingly, products with local claims are regarded as healthy by the lowest amount of consumers (59% top-two box), when compared to natural products (70%) and organic products (68%). • This could, perhaps, be due to the fact that consumers note that local products offer more than just health benefits. In addition to being considered healthier by some consumers, quite a few like local products because they offer the chance to support a local economy and/or are better for the environment.18 © Invoke Solutions - Confidential
  19. 19. Organic, local and natural have a more positive effect on brand opinion than green claims • Organic, local and natural claims Claim that would cause most favorable opinion of brand have similar effects on consumers’ 32% perceptions of brands, with nearly Organic 27% 42% 1/3 of consumers selecting each as causing the most favorable 31% Local 27% opinion of a brand. 32% • 42% of those aged 18-34 say that 26% organic has the most favorable Natural 27% effect on brand opinion, which is 26% significantly higher than the 27% 11% Is not bad for the of 35-64 year-olds who say the environment 4% 15% same. 35-64 (n=126) 18-34 (n=74) TotalOrganic often means no additives or While for some, Local signals healthier Natural means, for many, healthypesticides. Some think it is the most or fresher products and a positive and/or nothing artificial added. A few“regulated” term. A few say it covers impact on the environment, many more note that natural also signals moreoff on not only being healthy/natural like that this helps support a local affordable than the other claims listed.but also good for the environment. economy. • Natural makes me feel good about what• Organic means no pesticides and only • Local means natural and healthy, good Im putting in my body natural ingredients. for environment. • I dont want to have all the chemicals in• I care more about not eating chemicals • Less emissions to transport. my food. than the environment(shame on me). • I put local. It supports the local farmers • Better ingredients means healthier.• Organic is grown naturally so the and economy. • I think natural foods are important and environment must be affected in a • Because you‟re doing more for your healthier without claiming something positive way. community. outrageous or being priced really• Can be certified versus just being a claim • Gives money to local growers, not other expensive. made by a company. countries. Q: Which of the following "natural," "organic," "local" or having a positive impact on the environment would cause you to have the most favorable opinion of a brand touting these claims? Please tell me why you gave the answer that you did...19 © Invoke Solutions - Confidential
  20. 20. Nearly three-fourths are familiar with High Fructose Corn Syrup, and many have a negative impression of it 74% Familarity with HFCS • Nearly three-fourths of consumers are familiar 47% with High Fructose Corn Syrup (top 2 box). 27% 16% 10% 7% 3% Top 2 Box Very familiar Somewhat Neither familiar Not very Not at all Bottom 2 Box familiar nor un-familiar familiar familiar 59% Impressions of foods with HFCS • 59% of consumers have 35% 36% negative impressions of foods that contain High 23% Fructose Corn Syrup (bottom 2 box). 6% 4% • 35% are neutral towards 1% these types of foods. Top 2 Box Very positive Somewhat Neutral Somewhat Very negative Bottom 2 Box positive negative Q: How familiar are you with high fructose corn syrup? Q: What are your impressions of foods that have high fructose corn syrup?20 © Invoke Solutions - Confidential
  21. 21. Over half of consumers would be less likely to buy a product with high fructose corn syrup 57% • 57% of consumers would Effect of HFCS on purchase likelihood be less likely to buy a 36% food product if they 35% knew it contained High Fructose Corn Syrup 22% (bottom 2 box). • 36% say this knowledge 7% 3% 3% would have no impact on their intent to purchase. Top 2 Box Make me much more likely to Make me somewhat No impact Make me Make me much Bottom 2 Box somewhat less less likely to purchase more likely to likely to purchase purchase purchaseThose less likely to buy foods with HFCS often Those who say “no impact” often either do notsay this because they see it as unhealthy, often know enough about HFCS, think the claims arebecause it’s processed. A few note that the overblown or simply don’t care about it.ingredient tastes worse than real sugar. • Some people use honey to sweeten things, some• High Fructose Corn Syrup is very processed. Studies people use molasses. I dont really feel like HFCS is any have been done that have linked it to cancer and different. obesity. • As far as I know its made naturally so how could it be• High fructose is laden with empty calories. bad for you?• I think this is an unhealthy and unnecessary ingredient. • If I find something with that in it, I was probably looking• Why would I buy something that is bad for my health for something sweet anyway, so it really wouldnt impact and my family‟s health? my decision.• Id prefer cane sugar just for the taste. • Because I dont know what that means.• I like natural tastes, not tastes smothered by corn syrup. • Because I feel that too much emphasis is being given to high fructose corn syrup. Q:If you knew that a food had high fructose corn syrup, how would that impact your likelihood to buy that item? Q:Please tell me why you gave the answer that you did . . .21 © Invoke Solutions - Confidential
  22. 22. While artificial colors are somewhat of a concern, no food/beverage stands out as most concerning • When it comes to artificial colors, consumers are relatively equally concerned with artificial colors across the categories listed, with between 33% and 41% of consumers claiming they are concerned (top 2 box). Foods/beverages that carry artificial color concerns Bottled dressings and sauces 41% 24% Boxed dinners 40% 22% Gum and candy 38% 25% Boxed dessert mixes 37% 23% Cookies and crackers 36% 23% Bottled beverages 36% 26% Frozen foods 35% 23% Cereal 33% 24% Top Box Top 2 Box Q: How concerned are you with whether the following foods/beverages contain ARTIFICIAL COLORS?22 © Invoke Solutions - Confidential
  23. 23. Digging Deeper: Local
  24. 24. The local claim is largely regarded positively and it carries with it a number of benefits 84% Opinion of products with local claim • 84% of consumers feel positive towards a 46% food/product touting a 38% local claim (top 2 box). 14% 1% 0% 1% Top 2 Box Very positive Somewhat Neither positive Somewhat Very negative Bottom 2 Box positive nor negative negativeQuite a few like local products Several think the closer proximity of Some consumers think local productsbecause they help to support a local local products makes them fresher are healthier, often because nothing iseconomy. (and thus better tasting) and causes added to them/they are seen as more• I like the idea of supporting the local less of an impact on the environment. natural and are fresher. farmers and growers. • They product hasnt been trucked for • If things are grown locally they do not• I would be getting fresher food and long distances so they were picked at have to have preservatives added as supporting a community businesses. their ripest. when shipped from a long way away.• Because you are supporting the local • Local produce usually tends to be • It gives the feelings its healthier and farmers and farms when you buy these fresher. fresh for my area. products. • Leaves less of an environmental impact • They are naturally growing foods that• I think its always positive to buy due to less fuel being used in order to contains no injections or growth something locally grown to support deliver the product. hormones to produce the foods. members of your local community. • Locally grown foods are much better for you and taste fresher as well. • I grow my own garden & dont use• Because I feel it is important to support our community by purchasing locally • Locally grown produce is flavorful and chemicals, when I buy produce I want grown produce. taste like what they are supposed to the same as home grown. taste like. Q: What is your opinion of foods/products that have claims like those on the left? Q: Please tell me why you gave the answer that you did . . . 24 © Invoke Solutions - Confidential
  25. 25. Just over half of consumers think local products are healthier 59% Local – Perception of health • 59% of consumers see local foods/beverages as healthier than other 38% 36% products that do not carry this claim (top 2 box). 20% • 36% see local and non-local products as equally 5% 6% healthy. 0% Top 2 Box Much healthier Somewhat About the same Somewhat less Much less Bottom 2 Box healthier healthy healthyMany consumers think local Several think since local products A few, however, think local claimsproducts are healthier because they travel less of a distance, they do not signal health. Often, theseexpect nothing added, such as retain their nutrients better and/or consumers see local claims as notpreservatives or pesticides. are fresher. carrying any type of standards or• Other companies use harmful things • The food grown locally gets to regulations. to help their produce grow. market faster and would be fresher. • Just because its local doesnt mean• Grown without all the pesticides. • Fresher - tends to retain its nutrition its any better - they could be using• They will get to the stores more fresh better than those that need to be the same things the bigger and do not need preservatives to frozen, chilled, or shipped over companies are, only in smaller keep them fresh. several days to its destination. amounts.• There arent pesticides on these • When it doesnt have to be picked • Locally grown doesnt give me the products at all. prior to ripening and shipped across info on what the local farmers use. the globe it retains more nutrients.• They are more naturally made and do • They have the same healthiness as not have any kind of growth hormone • Because they are fresher since they a product not grown locally. Locally or injections that can be bad to didnt have to get shipped from just is better for the environment to humans. other states or countries. me. Q: Compared to items that that do not carry these claims, how healthy would you say these types of foods/beverages are? Q:Please tell me why you gave the answer that you did . . . 25 © Invoke Solutions - Confidential
  26. 26. Over half of consumers are buying the same amount of local products as they were three years ago • 40% of consumers are buying more local products than they were 3 years ago (top 2 box) and 7% are buying less. • 54% are buying the same amount of local products as they were 3 years ago. Changes in purchase habits regarding local products 54% 40% 22% 18% 7% 3% 4% Top 2 Box Buying these Buying these Buying these Buying these Buying these Bottom 2 Box types of types of types of types of types of foods/beverages foods/beverages foods/beverages foods/beverages foods/beverages more often than somewhat more about the same somewhat less much less often before often than before as before often than before than before Q: Thinking about your grocery buying now compared to 3 years ago, would you say that you are buying more or less foods/beverages that have claims like those on the left?26 © Invoke Solutions - Confidential
  27. 27. Local is most often not associated with a specific brand Consumers often look for the following products Nearly three-fourths of consumers do not associate with the “local” label (in descending order): “local” with a specific brand, often more associating the claim with local farms. • I dont find this question applicable. If a veggie or fruit is “Local” Shopping List locally grown quite a bit of the time its not going to be labeled under a brand. More than often its just provided by the store in association with the farmers. • Can‟t think of any specifics. items are usually labeled Fruits "local" but dont give brand/growers names. • I dont know, mostly they are local brands like Yarnick‟s Vegetables and other area farmers. • No brands at all...when I see locally grown produce it is not Meat marked by a brand. Juice A few, however, do have name some brands with a local link. Quite often, these are store brands such Dairy as Whole Foods, though some do mention more Eggs national brands such as Dole, Del Monte and Newman’s Own: Q: What types of foods/beverages, if any, do you usually try to buy labeled with claims like those on the left? Q: What brand(s), if any, do you associate with claims like those on the left?27 © Invoke Solutions - Confidential
  28. 28. There does not appear to be a standard definition of “local” A large number of consumers believe a product needs to be from within the same state (or sometimes even the same county, city or town)to be considered local. • I would say that it should come from the same state to be considered local. • Within the state at a minimum. • I would consider anything that was made in my state to be local to me. • The same state Im living in or better yet as close as possible to Denver. • The local area I live in, the county or state. Some consumers assign a specific distance, usually between 50- 100 miles, for a product to have to travel for it to be considered local. • Probably less than 100 miles away. The farther the product is sourced, the more environmental stressors it will have been under and therefore the less nutritional value it will have. • it would have to come within a certain mileage radius, about 50 miles or so. • Within 100 miles of the store. A few think a product can be considered local so long as it stays within the same country. • I think anywhere in the country. • Anywhere within the USA. • From the United States of America. Q: Now, think about products that might be labeled as "local." Where would a food/beverage have to come from in order for you to consider it local?28 © Invoke Solutions - Confidential
  29. 29. Digging Deeper: Natural
  30. 30. Many feel positive toward natural products, though some doubt remains 75% Opinion of products with natural claim • 75% of consumers feel 40% positive towards a 35% food/product carrying a natural claim (top 2 box). 19% 6% 4% 2% Top 2 Box Very positive Somewhat Neither positive Somewhat Very negative Bottom 2 Box positive nor negative negativeMany consumers feel positively towards natural products because they A few consumers think the naturalare seen as healthy, often because nothing artificial is added. claim is too ambiguous and,• 100% Natural is good because I know that nothing was added to my products. They are what they are suppose to be without adding anything to make them that therefore, raises some doubt. way. • I do not think that the FDA has really set• Naturally grown means that there are no added preservatives or pesticides to firm standards as to what can be labeled accelerate growth. Therefore, it is healthier. 100% natural.• Natural has less artificial ingredients. • Though they say 100% natural.....are they really??? Have my doubts.• Id prefer to buy foods without additives, preservatives, etc. • Once again, until I find out that the claim• Processed foods are not good for you generally and natural ones are. is actually true. I choose to research• Better than processed foods. until I find some that are good for me.• I like the idea of less processed foods. They are easier for the body to process. • Unless its certified organic, they can put• Because the absence of artificial ingredients makes me feel that it is a safe healthy natural on anything. product. • I‟m skeptical of claim such as this, not• Because I want my food to be only foods not additives or sweeteners, etc. really sure if they are telling the truth Q: What is your opinion of foods/products that have claims like those on the left? Q: Please tell me why you gave the answer that you did . . . 30 © Invoke Solutions - Confidential
  31. 31. Many see natural products as healthier, often because they expect nothing artificial added 70% Natural – Perception of health • 70% of consumers regard natural products as healthier 41% than other products (top 2 box). 28% 24% • Just under ¼ say these products are just as healthy as products 7% that do not carry this claim. 5% 1% Top 2 Box Much healthier Somewhat About the same Somewhat less Much less Bottom 2 Box healthier healthy healthyNot surprisingly, an overwhelming majority of those that view natural Again, some consumers raise doubtsproducts as healthy think this because they are unaltered and do not when it comes to products claimingcontain artificial ingredients. “natural.”• They have no chemicals on them that we would consume if we ate the products • "Natural" isnt a well-regulated term, so it that arent natural. could be the same as any other product.• Natural foods are often free of artificial ingredients and higher in nutrients. • Because the claim has no meaning, no• Because, by definition, "natural" means there are no artificial means of product to difference. create. • Claims should be backed up with facts &• Because, to me, something that is 100% natural is way ahead of those food items anyone can make claims but not all have that are artificially altered, either chemically, through pesticide use or any number the backing. of other things that make them less wholesome. • „Natural isnt defined and because its• Those products are devoid of artificial ingredients, are non-genetically modified. meaningless it doesnt make a• Because without preservatives they would naturally be healthier. meaningful distinction between products and ingredients. Arsenic is natural.• The products are not chemically treated , NOR do they artificial product or preservatives added. Q: Compared to items that that do not carry these claims, how healthy would you say these types of foods/beverages are? Q:Please tell me why you gave the answer that you did . . . 31 © Invoke Solutions - Confidential
  32. 32. Nearly half of consumers are buying more natural products than they were three years ago • 44% of consumers are buying more natural products than they were 3 years ago (top 2 box) and 11% are buying less. • 46% are buying the same amount of natural products as they were 3 years ago. Changes in purchase habits regarding natural products 46% 44% 28% 16% 11% 6% 4% Top 2 Box Buying these Buying these Buying these Buying these Buying these Bottom 2 Box types of types of types of types of types of foods/beverages foods/beverages foods/beverages foods/beverages foods/beverages more often than somewhat more about the same somewhat less much less often before often than before as before often than before than before Q: Thinking about your grocery buying now compared to 3 years ago, would you say that you are buying more or less foods/beverages that have claims like those on the left?32 © Invoke Solutions - Confidential
  33. 33. consumers are most often buying natural juices and often associate the claim with juice brands Consumers often look for the following products Nearly half of consumers do not associate “natural” with the “natural” label (in descending order): with a specific brand, but others name brands such as: “Natural” Shopping List Juice Fruits Vegetables Meat Snack Foods Milk Cereal Eggs Yogurt Q: What types of foods/beverages, if any, do you usually try to buy labeled with claims like those on the left? Q: What brand(s), if any, do you associate with claims like those on the left?33 © Invoke Solutions - Confidential
  34. 34. While many see no difference between the terms, some think varied “natural” labels promise different things Difference in “natural” terminology • 65% of consumers say there is No 65% no difference between the terms “natural,” “all-natural” and “made from natural ingredients” which leaves over 1/3 thinking there is a difference. Yes 35%Those who see a difference often see While “natural” raises some doubt for “Made from natural ingredients”“all-natural” as being a more complete some regarding how natural a product causes a few to question how naturaldefinition. is, others think it conveys every ingredient might be.• If they do not say all natural, then some “untouched” more than the other • “Made from natural ingredients" means of the ingredients might not be. It leaves labels. that the things they put in the product are a window of opportunity in there. • Natural is vague and leaves room for natural, but they also add chemicals• Apple, for example, is a natural fruit. qualifiers. and/or preservatives.. When it is processed without • Because natural simply means "as • All-natural and made from natural preservatives, then it becomes ALL- nature allows it to grow.” The other ingredients would probably have natural. It is all in the processing. simply hides the fact that other things additives.• I think that natural might mean it contains where added to it. • Made from natural ingredients could some natural ingredients, while all • Because I think the "all natural" natural means it only has natural mean that there are natural sometimes have added additives in them ingredients. compared to the "natural" ones. ingredients in there but they are processed in some way.• Something that is "all-natural" uses all natural ingredients opposed to just some Q: Do you think there is a difference between products labeled as "natural" versus products that are labeled as all-natural" or "made from natural ingredients"? Q: Why do you say that? 34 © Invoke Solutions - Confidential
  35. 35. Digging Deeper: Organic
  36. 36. While many are positive towards organic’s lack of additives and certification process, some see organic as too expensive 73% Opinion of products with organic claim • 73% of consumers have a positive opinion of 40% organic products (top 2 33% box). 20% 7% 4% 2% Top 2 Box Very positive Somewhat Neither positive Somewhat Very negative Bottom 2 Box positive nor negative negativeMuch like with natural products, Some like organic because itmany consumers like that organic carries with it a certification Quite a few consumers, however,products signal to them nothing backed by standards and note that organic products are oftenartificial has been added or used. regulations. too expensive.• Organic products do not have • Because they are very good for you • I like organic products just don t like the chemicals and pesticides, so they are and certified to be. added cost. generally safer to eat and are grown • It is grown or prepared under strict naturally. • I think its ok, but the cost for certification laws. is passed on to the consumers.• It means that no chemicals that are • If the product has this seal of unhealthy for you are used when • I dont dislike them, they are just approval then it must be organic growing that particular product. ridiculously expensive, sometimes I and the real deal. think it is a ploy.• I believe there are no pesticides in • Because I think certified organic organic products. • Organic food is usually too expensive to products are of a very high standard buy.• It is healthier than foods that are and that is how they achieved the produced by injecting hormones or certification. • Not worth paying twice as much. preservatives to it. • They are very overpriced and out of my buying range. Q: What is your opinion of foods/products that have claims like those on the left? Q: Please tell me why you gave the answer that you did . . . 36 © Invoke Solutions - Confidential
  37. 37. Many do see organic products as healthier, though some doubt these claims due to a lack of supporting data 68% Organic – Perception of health • 68% of consumers perceive organic products as healthier than other products (top 2 box). 36% 31% • 19% think non-organic products are just as healthy as organic 19% 13% products (bottom 2 box). 12% 1% Top 2 Box Much healthier Somewhat About the same Somewhat less Much less Bottom 2 Box healthier healthy healthyAs mentioned before, organic products are often seen as healthierbecause they are expected to contain no artificial ingredients. Again, Some have not seen any data that linkssome consumers point out the organic certification process as a organic to health. A few do not see thereason to believe. benefits of organic as being worth more.• They are safer to eat and are healthier b/c they do not contain harmful • Have yet to see any nutritional claims that it is pesticides and other unknown chemicals. healthier, perhaps safer is the term to use.• Because I believe that certified organic products have met specific criteria and • I havent read studies which suggest how been certified as having met that criteria by an independent agency who much healthier organic foods actually are. specializes in such certifications. • What would be the differences? if I do not• Chemical-free products are going to be better for me and safer than ones that know the process or info, a banana is a use pesticides and chemicals. banana, is a banana.• Because no pesticides are used they are higher in nutrients and no harmful • Because like the one person said - just effects from chemicals. because it says organic, they feel they can• The foods dont contain a lot of preservatives which is a lot healthier. charge more, when theres other products out• These products‟ claims are verified by the USDA and certified as such. there just as healthy and less expensive Q: text37 © Invoke Solutions - Confidential
  38. 38. Half of consumers are buying the same amount of organic products as they were three years ago • 41% of consumers are buying more organic products than they were 3 years ago (top 2 box) and 9% are buying less. • 50% are buying the same amount of organic products as they were 3 years ago. Changes in purchase habits regarding organic products 50% 41% 27% 14% 9% 7% 2% Top 2 Box Buying these Buying these Buying these Buying these Buying these Bottom 2 Box types of types of types of types of types of foods/beverages foods/beverages foods/beverages foods/beverages foods/beverages more often than somewhat more about the same somewhat less much less often before often than before as before often than before than before Q: Thinking about your grocery buying now compared to 3 years ago, would you say that you are buying more or less foods/beverages that have claims like those on the left?38 © Invoke Solutions - Confidential
  39. 39. Organic products are often associated with store brands or brands that focus strongly on organic within their portfolio Consumers often look for the following products Nearly half of consumers cannot think of a brand with the “organic” label (in descending order): they associate with organic foods, but others can name some brands, such as: “Organic” Shopping List Fruits Vegetables Meat Milk Eggs Chicken Other dairy Q: What types of foods/beverages, if any, do you usually try to buy labeled with claims like those on the left?39 © Invoke Solutions - Confidential
  40. 40. Digging Deeper: Green
  41. 41. The decision to buy “green” has consumers weighing personal convictions and cost-based concerns 36% “Green” as a purchase driver 34% • Consumers are relatively 30% split on buying products 27% because of how they affect the environment, with 36% saying they do 15% 15% so (top 2 box) and 30% 9% saying they do not (bottom 2 box). Top 2 Box Very often Somewhat Neither often Somewhat Never Bottom 2 Box often nor rarely rarelyThose buying products because of how they Those who do not most often see theseaffect the environment often do so because products as too expensive. Some simply don’tprotecting the environment is a strong personal think about it, don’t care or do not often seeconcern. products labeled as such.• I try to buy these products somewhat often because I • They are usually too expensive, just dont think to buy care about the environment. these products.• I support the environment. • I am not concerned on how it affects the environment• Because as a vegan, and an environmentalist, its part of only how it affects me and my family. my lifestyle. • I dont usually think about that when I am buying• I care about the environment and what we are doing to it. food/beverages.• I believe that to preserve environment is a important • I dont see that much "green" produce to buy, and I cant factor for everybody. afford to buy most of it. Q: How often would you say you buy foods/beverages BECAUSE of how they affect/impact the environment? Q: Why is that?41 © Invoke Solutions - Confidential
  42. 42. “Green” is not the only thing that signals green • Although “green” often signals a positive impact on the environment for consumers, they are just as likely to say organic labeling communicates this. • Natural and local labeling also conveys this for some consumers and a few say they look at the packaging. Organic, local, packaged in something that is bio- Are packaged The USDA degradable or that Natural, organic, with recycled certified and all can be recycled. earth-friendly. products, less organic labels packaging always help me. involved The green Yes, I would look check mark for "organic" or on their "locally grown." labels. I just compare the packaging Sustainable and choose the one that and green doesnt have a lot of unneeded bulk or that will biodegrade or can recycled and made into something new. Q: If you ever do buy foods/beverages because of how they affect/impact the environment, what types of things (words, claims, pictures, etc.) do products have that signal to you they are not bad for the environment?42 © Invoke Solutions - Confidential
  43. 43. Green is not typically associated with a brand, but when it is, consumers often think organic or beyond foods/beverages Approximately two-thirds of consumers do not associate green products with any specific brand. However, some consumers often associate green with brands similar to those associated with organic products, with Kashi being mentioned quite a bit: Interestingly, even though we asked consumers to specifically name food and beverage brands associated with being green, a few went to products outside the category, such as cleaning or paper products: • I really dont know a lot of brands that are natural other than things like "Simply Green“ • Toilet paper and cleaning products. • Paper products. • Green Works, Meijer cleaning products. • Plastics, metals, paper. Q: What food or beverage brands, if any, do you associate with products that are not bad on the environment?43 © Invoke Solutions - Confidential
  44. 44. Appendix: Respondent Profiles
  45. 45. Marital Status, Gender and Age Marital Status 8% 2% 19% 53% 18% Married Single, living with partner Single, living alone Divorced or separated Widowed Age Gender 4% 35% 44% 56% 60% 18 to 34 35 to 64 65+ Male Female45 © Invoke Solutions - Confidential
  46. 46. Education, Region, and Household Income Education 24% 76% Less than college College and higher Household Income Region 19% 25% 14% 51% 31% 34% 25%EAST - CT, DC, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT MIDWEST - IA, IL, IN, KS, MI, MN, MO, NE, ND, OH, SD, WISOUTH - AL, AR, FL, GA, KY, LA, MS, NC, OK, TN, VA, TX, SC, WV WEST - AK, AZ, CA, CO, HI, ID, MT, NV, NM, OR, UT, WA, WY Less than $50,000 $50,000 to $99,999 $100,000+ 46 © Invoke Solutions - Confidential

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