Food Business News - February 9, 2016 - (Page 12)

'The U.S. consumer has changed' Deloitte study reveals dramatic differences in how consumers perceive quality, food safety, transparency and much more NEW YORK - Such traditional factors as price, taste and convenience hold less sway over consumer purchasing decisions, according to a report published by the consultancy Deloitte in a study conducted with the Food Marketing Institute and the Grocery Manufacturers Association. The report, titled "Capitalizing on the shifting consumer food value equation," said new purchasing influences, such as health and wellness, safety, social impact, experience and transparency, are motivating consumers and forcing food and beverage manufacturers and marketers to adapt. "Contrary to conventional wisdom, it's not just the millennials or most affluent putting these evolving drivers in the mix," said Jack Ringquist, a principal with Deloitte Consulting L.L.P. and global consumer products leader for the company. "Our research reveals that the preference for these attributes does not differ by generation, income level or region, but is pervasive across these groups. The The consumer value driver plate 12 FOODBUSINESS NEWS ® U.S. consumer has changed in a fundamental and impactful way, and people's preferences are becoming even more fragmented than the food industry may have anticipated." The research included a survey of 5,000 U.S. consumers, interviews with food and beverage industry executives from 40 companies, and secondary research from Deloitte, the F.M.I. and the G.M.A. A report about the research effort titled "Capitalizing on the shifting consumer food value equation" was released Jan. 25. Adding to the complexity of the new environment food manufacturers and marketers face is how consumers define each of the emerging purchasing influences. Health and wellness, for example, is no longer strictly associated with health and nutrition. It includes organic production, natural ingredients and fewer ingredients perceived as artificial, according to the report. The situation is similar with the topic of safety, which applies to such product attributes as an absence of allergens and fewer ingredients as well as complete and accurate labeling. Social impact relates to local sourcing, sustainability, animal welfare and fair treatment of employees. Experience includes retail store layout and service as well as brand interaction and personalized engagement spanning pre-, during and post-purchase. The study identified transparency as an "overarching" influence that includes such attributes as clear labeling, certification by trusted third parties and the access and trust of manufacturers. Those consumers most susceptible to be influenced by the new drivers are those who are actively engaged in social media and digital channel use. The tools have disrupted the traditional reliance of manufacturers and retailers on traditional communication and marketing efforts, according to the company. "Food retailers are inherently 'shopper advocates,' and they respect that their customers want both genuine and transparent shopping experiences," said Mark Baum, the F.M.I.'s chief collaboration officer. "Our study sheds light on how companies can better understand the intersection of these new consumer food values and their own growth strategies." As a result of the emerging purchasing influences, the report predicts consumer tastes and preferences will continue to fragment, the retailer's role in influencing purchases will continue to grow, smaller and February 9, 2016

Table of Contents for the Digital Edition of Food Business News - February 9, 2016

Food Business News - February 9, 2016
Mondelez expects snack sales to slow
Starbucks ‘firing on all cylinders’ in C.P.G.
Beverage Business News - Boosting the nutrition profile of beverages
Table of Contents
Web Contents
Editorial - Trust and the rising bar for ‘achieving’ food safety
Survey finds natural labels may mislead consumers
‘The U.S. consumer has changed’
Take the lead in transparency
ChemChina to acquire Syngenta for $43 billion
A new venture for PepsiCo
Chipotle focusing on recovery, food safety
Coca-Cola takes stake in Nigerian business
SuperValu picks new president, c.e.o.
Madagascar 2 - Vanilla prices soar again
Nestle in talks to acquire Israel’s largest food company
Global challenges weigh on Hershey’s earnings
Court sides with Dannon, General Mills in yogurt case
Market Insight - Beef is bouncing back
Ingredient Trends - Plant protein applications evolving
Ingredient Innovations - Three considerations when choosing emulsifiers
Emulsion innovation extends beverage stability
New Food Products
Ingredient Market Trends - Ethanol fuels fireworks in the Iowa Republican caucus
Ingredient Markets
Supplier Innovations and News
Ad Index

Food Business News - February 9, 2016