Charlie Arnot. CEO of The Center for Food Integrity
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- Egbert Richards
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1
2 Charlie Arnot CEO of The Center for Food Integrity
3 Building and Maintaining Trust with the Influencers Driving Food Trends Charlie Arnot
4 Today s Food System Today food is generally: Safer More available More affordable Despite your best intentions, consumers are increasingly skeptical about today s food How did that happen?
5
6 1968 Assassinations
7 1968 Democratic Convention
8 Vietnam
9 1968 First Photo from Lunar Orbit
10 Kent State
11 1972 Watergate Break-In
12 70s- 80s Events
13 90s 2000s Events
14 2000s - Events
15 Subprime Mortgage Crisis
16 2010s More Events FERGUSON, MO RIOTS: 2014 MICHAEL BROWN, JR NEW YORK CITY, NY: 2014 ERIC GARNER BALTIMORE, MD RIOTS: 2015 FREDDIE GRAY
17 What does this have to do with ag and food?
18 Consolidation, Integration and Industrialization
19 Historical Perspective on the Decline of Trust THEN Authority is granted primarily by office Broad social consensus driven by WASP males Communication is formal, indirect (mass communication) Progress is inevitable Big is respected NOW Authority is granted primarily by relationship No single social consensus, great diversity, many voices Communication is informal, direct (masses of communicators) Progress is possible Big is bad
20 Trust Model (Sapp/Look East) SOCIAL LICENSE FREEDOM TO OPERATE Trust research was published in the December 2009 Journal of Rural Sociology
21 Social License The privilege of operating with minimal formal restrictions based on maintaining public trust. Public trust is based on a belief that your activities are consistent with social expectations and the values of your stakeholders.
22 The Social License To Operate Social License Flexible Responsive Lower Cost Guided by Ethics Values Expectations Self regulation Tipping Point Single triggering event or cumulative impact Social Control Rigid Bureaucratic Higher Cost Guided by Regulation Legislation Litigation Compliance
23 Social License Challenge: Biotechnology
24 Social License Challenge: Public Health
25 Social License Challenge: Animal Welfare, Environment
26 Cost of Losing Social License Cost of future regulations + Cost of assets lost + Cost of lost sales + Reduced stock price + Loss of consumer confidence + Increased operating cost + Loss of reputation + Reduced employee satisfaction Total cost of social license lost
27 Trust Model (Sapp/Look East) CONFIDENCE VALUE SIMILARITY COMPETENCE TRUST INFLUENTIAL OTHERS SOCIAL LICENSE FREEDOM TO OPERATE Trust research was published in the December 2009 Journal of Rural Sociology
28 What Drives Consumer Trust? TRUST Shared values are 3-5x more important to building trust than sharing facts or demonstrating technical skills/expertise
29 Sustainable Balance
30 Answering the Wrong Question Should? Can?
31 A relationship without trust is like a cell phone without service
32 all you can do is play
33 Traditional Communication is Less Effective in Today s Environment Traditional Communication Model Consumer Online Friends Family Tribal/Network Communication Model Neighbor Consumer Friend Family Expert Consumer Online Friends Family Blogs
34 Where Consumers Get Information About Food Local TV 11% 10% 15% Info Sources Ranked #1 17% 17% Websites Family Not Online Friends Not Online
35 The Mom Tribe Consumer Panel What information sources have you used to come to your conclusions that GMOs are dangerous? Heidi: I m part of a moms group. When there is a big consensus, I think there s something here. You don t need doctors or scientists confirming it when you have hundreds of moms.
36 The Mom Tribe Consumer Panel Lisa: I think mom guilt is a huge factor. If someone is telling you something is dangerous, for example fructose, and you hear the message more than once you owe it to yourself to research it or quit consuming it. I can t keep giving my kids fructose if there s a potential problem. We have to do our best job..
37 BFF Do Onions Absorb Bacteria That Cause Illness? No, onions do not absorb bacteria. The idea that a vegetable would attract and suck into itself bacteria from the air is not even logical. The onion may turn black because it would eventually rot from both cell breakdown events and bacterial contamination if you left it out, not because it absorbs germs. - Ruth MacDonald, PhD, RD, Chair and Professor of the Department of Food Science & Human Nutrition at Iowa State University Total thumbs down on this article. Old wives tales endure centuries for a reason. I started leaving a cut onion on the counter when my son was 12 and neither of us had as much as a cold throughout until his graduation. Science doesn't have to "prove" anything to make me believe it works. - Cindy Gable
38 Impact of Food on Health and Food Safety are Topics Most Commonly Searched; Search Engines are Most Common Starting Place 62% Impact of Food on Health (72%) Food Safety (72%) Two of Three (66%) Believe They Have Access to All Information They Need to Make Good Decisions for Their Families. Up from 17% in 2008!
39 Brands as Agents of Social Change
40 Market Pressure Drives Change We can dance with you or dance on you We attack the weakest link in the company s value chain, Kert Davies, Director of Research, Greenpeace Discovering brands was like discovering gunpowder
41 Greatest Impact on Society Source: A.T. Kearney analysis
42 Greatest Impact on Society by Generation Source: A.T. Kearney analysis
43 Consumer Trends Reshaping the Market
44 Macro Shifts Who we are is changing: There are fewer households with kids, more single-person households, more men are primary shoppers. What we do: We are eating alone and snacking more. Meal rituals are diminishing. We are increasingly turning to the food service sector to satisfy our food needs and wants. How we shop: Multi-channel shopping is now the norm; immediate consumption is rising. What we value: We live in a changing culture of health and wellness where fresh is the symbol of quality in food and beverage. There is greater appreciation for personalized, customized and global foods. FLP Food Less Processed. Source: The Hartman Group, GMA Leadership Forum
45 Key Trends to Watch Projected Growth Rate Next Five Years Source: A.T. Kearney analysis
46 The Trends are Real Greater interest in diet and health Demand for greater transparency Desire for more evolved food (FLP) Greater interest in food safety, environmental impact, treatment of animals and workers, etc Changes in who we are, what we do, how we shop, what we value Fundamental shifts in who we trust and where we get information Increased pressure on brands to drive social change through the supply chain Competition now is for share of wallet AND share of heart, mind and voice
47 The BIG BIAS
48 I believe (size) food companies are likely to put their interests ahead of my interests. 0 to 3 4 to 7 8 to 10 Small 18% 52% 29% 2015 Mean % 20% 40% 60% 80% 100% 0 to 3 4 to 7 8 to 10 Large 5% 38% 57% 2015 Mean % 20% 40% 60% 80% 100%
49 (Size) farms are likely to put their interests ahead of my interests. 0 to 3 4 to 7 8 to 10 Small 22% 51% 27% 2015 Mean % 20% 40% 60% 80% 100% 0 to 3 4 to 7 8 to 10 Large 7% 46% 47% 2015 Mean % 20% 40% 60% 80% 100%
50 Trust-Building Transparency
51 Overcoming the Bias Against Size Shared Values = Trust Big is Bad Inverse relationship between size and the perception of shared values
52 Transparency Means Business Consumers have begun to weigh a new set of factors more heavily in their purchase, disrupting the consumer value equation in ways that present both opportunities and challenges for the food industry.
53 Elements of Trust Building Transparency Motivations Accuracy Disclosure Credibility Stakeholder Participation Clarity Relevance
54 Trust Building Transparency Motivations 1. Motivation Act in a manner that is ethical and consistent with stakeholder interest. Show you understand and appreciate issues and take action that demonstrates you balance public interest with self interest. Disclosure 2. Disclosure Share information important to stakeholders, both positive and negative, even if it might be damaging. Make it easy to find; helpful in making informed decisions; easy to understand and timely. Stakeholder Participation 3. Stakeholder Participation Ask those interested in your activities and impact, for input. Make it easy to provide; acknowledge it has been received and explain how and why you make decisions.
55 Trust Building Transparency Relevance 4. Relevance Share information stakeholders deem relevant. Ask them. Show you understand. Clarity 5. Clarity Share information that is easily understood.
56 Trust Building Transparency Credibility 6. Credibility Admit mistakes; apologize; accept responsibility; engage critics; share plans for corrective action. Demonstrate you genuinely care and present more than one side of controversial issues. Accuracy 7. Accuracy Share information that is truthful, objective, reliable and complete.
57 Influencing the Influencers
58 DIGITAL ETHNOGRAPHY A belief-based segmentation of the market, as well as the unspoken motivations of each consumer group. INFLUENCE MEASUREMENT & TREND ANALYSIS Identify the most influential beliefbased segment, examine the beliefs, and identify the idea that is undergoing a shift in the marketplace.
59 Consumer Types What we know by segment Why each consumer type talks about Food and Agriculture Population size and Share of voice in food and agriculture conversations Demographics age, gender, marital status, family status, etc. A deep understanding of their Food Philosophy and anxieties World view and political philosophies Trusted brands Where they go for information and who influences them
60 Consumer Types Food Fatalists SM Peak Performers SM Providers SM Comfort Seekers SM Wellness Seekers SM
61 Living well means FOOD IS DIRECTLY CONNECTED TO WHETHER SOMEONE FEELS LIKE THEY ARE LIVING WELL. My body is a Temple. Enjoy Life.
62 Share of Voice & Influence Wellness Seekers Food Fatalists Peak Peformers Providers Comfort Seekers POPULATION SHARE OF VOICE
63 Share of Voice & Influence Wellness Seekers 15 5 Food Fatalists 17 Peak Peformers POPULATION Providers SHARE OF VOICE 35 Comfort Seekers Peak performers are taking over new high protein, healthy fat alternatives from Food Fatalists. Providers are looking for Energy Solutions from Peak Performers.
64 What is the Shift in the Marketplace Ideology Abandon traditional convenience foods that haven t evolved. Unevolved Convenience Food = Your life is stagnating. Vulnerability Greater physical achievement through adoption of newly evolved set of convenience foods. The Food Fatalists and Peak Performers are together changing the culture around conventional food. The Food Fatalist is abandoning foods that haven t really evolved in a while - that are still made the way they traditionally have been. They don t want anything the old American way. WELLNESS SEEKERS FOOD FATALISTS PEAK PERFORMERS PROVIDERS COMFORT SEEKERS
65 What is the Shift in the Marketplace Ideology Abandon traditional convenience foods that haven t evolved. Unevolved Convenience Food = Your life is stagnating. Vulnerability Greater physical achievement through adoption of newly evolved set of convenience foods. The Peak Performer is adopting a new set of evolved products to enhance their physical appearance skin, hair, body shape/physique etc.. And all this talk of evolution in food is starting to create anxiety in the mind of the Provider. The last thing they want is to learn that they ve been making the wrong choices for their families. WELLNESS SEEKERS FOOD FATALISTS PEAK PERFORMERS PROVIDERS COMFORT SEEKERS
66 Peak Performers 17% 25% POPULATION SIZE SHARE OF VOICE Food is about self-improvement Food is a critical ingredient for looking good and enhancing performance Moderately educated about food and food politics Food is an obsession, because they are obsessed with their physical and professional performance
67 Providers Providers SM never feel quite good enough and the last thing they want is to be seen as a neglectful parent snoozing on the job. Providers SM look to others for guidance on food and agriculture.
68 How to talk to Peak Performers SM Peak Performers Listen for their concerns about foods affects on their body and mind Listen for their trusted sources Ask about their interests in lifestyle, exercise, self-improvement Share your story via shared interests or as a fellow Peak Performer SM
69 Peak Performers Functional Emotional Social Seeking foods that: 1. Boost my metabolism 2. Manage my cravings 3. Enhance my appearance and performance 4. Address my anxiety about performance 5. Allow me to engage with others and highlight my performance
70 Three Things You Can Do 1. Begin your public engagement using shared values People don t care how much you know until they know how much you care. T. Roosevelt 2. Open the digital door to today s agriculture Find ways to make what you do transparent to illustrate your commitment to do what s right. Digital engagement is your best opportunity to influence the influencers 3. Commit to engaging early, often and consistently Your voice, your knowledge and your credibility matter. You can make a difference in building public support, but you have to learn how to play by new rules
71 Building and Maintaining Trust with the Influencers Driving Food Trends Charlie Arnot
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