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Anton Xavier

By: Anton Xavier on January 27th, 2016

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How Brands Can Win With Consumers by Going Beyond the Package Label

SmartLabel™  |  Company Viewpoint

On Monday, a new study by Deloitte, the Food Marketing Institute (FMI) and the Grocery Manufacturers Association (GMA) was released that showcased some of the evolving factors influencing customer decisions in food and beverage purchases. These findings were very much aligned with what Label Insight is seeing in the industry and what we’ve heard from our customers.

My key takeaways from the study:

  • Consumers take a more holistic view of nutrition, health and wellness
    While nutritional content has been historically the solitary consideration in purchase decisions based on health and wellness and most consumers focused on a single element of nutritional content (such as carbohydrates, protein, or sugar), today’s consumer looks at many data points simultaneously (such as qualitative product claims and quantitative nutritional content information) related to Health & Wellness."¹
  • The importance of health, wellness and transparency has been elevated to the level of “food safety”
    Americans no longer define the concept of food safety based on near-term risks to their health, according to the study. Instead, 74% of consumers surveyed believe that a definition of food safety limited to "one that will not cause any immediate, physical, harm" is insufficient. Consumers now link health, wellness and transparency with their definition of safety, and include factors such as free from harmful ingredients (62%); clear and accurate labeling (51%); and fewer ingredients, processing and nothing artificial (42%).²
  • Consumer values are influencing purchasing decisions more than ever before
    Consumer values such as health wellness, safety, social impact, experience and transparency are now influencing purchasing decisions more than ever before. More than half of Americans surveys put more weight into these factors than the traditional drivers of taste, price and convenience. Demographic factors did not influence answers.³

What this means for food and beverage CPG companies

Not only have the customer definitions of nutrition, health and wellness evolved, the importance of these elements has increased to a point where they impact purchase decisions more so than traditional drivers. Consumers are seeking more information than what has traditionally been available on product packaging. Jim Flannery, senior executive vice president, operations and industry collaboration at GMA summed it up by saying, “Brands that win with consumers will likely be those that provide the information they seek, well beyond what is on the label."

We could not agree more. The opportunity to provide true transparency -- to go beyond the product label -- is upon us and leading CPG companies are begin to embrace this value to engage customers in a way that aligns with their priorities to gain trust and long-term loyalty.

Where to go from here

The challenge for brands is in how to address this demand for transparency. And with every challenge lies an opportunity for those that solve the challenge first.

One such opportunity is participating in SmartLabel™, a first-of-its-kind transparency initiative that will give consumers easy, instant access to detailed information about the products they use and consume.

For more reading on SmartLabel check out my past posts on the subject:
SmartLabel Launch Brings transparency to Food Industry
SmartLabel, Why it Matters, And Why Now
Transparency is the opportunity with SmartLabel - and the biggest challenge

Interested in getting started with SmartLabel? Learn more about our solutions:

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¹ 2015 US Grocery Shopper Trends report by FMI

² Capitalizing on the Shifting Consumer Food Value Equation by Deloitte, Food Marketing Institute (FMI) and Grocery Manufacturers Association (GMA)

³ Capitalizing on the Shifting Consumer Food Value Equation by Deloitte, Food Marketing Institute (FMI) and Grocery Manufacturers Association (GMA)

About Anton Xavier

Anton Xavier is a Co-Founder and founding CEO of Label Insight, and works closely with the marketing and the senior management teams.