sustainability in the marketplace

SUSTAINABILITY IN THE MARKETPLACE

July 18 | 12:30 -2:00 p.m.

IFT 2016

PRESENTERS

“IFIC’s Consumer Perception Data: Sustainable Brands, Retailers and Practices”• Liz Sanders, MPH, RDN, Associate Director, Nutrition

and Food Safety | International Food Information Council

“McDonald’s Case Study: How Sustainable Practices Affect the Bottom Line”• Bob Langert, Retired VP, CSR & Sustainability |

McDonald’s Corporation; Editor at Large | Green Biz

“View From the Farm: Insights about Soy’s Sustainability”• Josiah McClellan, Director of Food Market Issues and

Sustainability | United Soybean Board

• Soybean checkoff led by 70 soybean farmers

• USDA Agricultural Marketing Services has oversight

• More than 550,000 U.S. soybean farmers

• Soybean oil is the most widely used edible oil in the U.S.

• Soybean farmers champion sustainable innovations, such as biotech varieties that are herbicide tolerant and reduce tillage

ABOUT THE UNITED SOYBEAN BOARD

SUSTAINABILITY ON HAMMER & KAVAZANJIAN FARMS (WI)

Cover crops & crop rotation

Reduced tillage, wind energy & more

Solar-powered shop

Pollinator habitat

SUSTAINABILITY ON HAMMER & KAVAZANJIAN FARMS (WI)

International Food Information Council Foundation

Food and Health Survey 2015

IFIC Foundation

Mission:

To effectively communicate science-based information on health, nutrition and food safety for the public good.

Primarily supported by the broad-based food, beverage and agricultural industries.

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Liz Sanders, MPH, RD

Associate Director,

Nutrition Communications

[email protected]

mailto:[email protected]

International Food Information Council Foundation2016 Food and Health Survey

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• Americans surveyed: 1,003 (ages 18 to 80)

• 11th edition of the annual survey

• Conducted by Greenwald & Associates, using ResearchNow’s consumer panel

• Fielding: March 17 to March 24, 2016

• Survey duration: 29 minutes, on average

• Results weighted to reflect American population ages 18 to 80

• Weighted by Age, Education, Gender, Race/Ethnicity and Region

• Subgroups reported for Age, Education, Income, Gender, Those with or

without children under 18, BMI and Ratings of own health.

• Additional analysis and subgroups included throughout

Background and Methodology

Full Survey Results available at foodinsight.org/2016-FHS


Taste continues to have the greatest impact on the decision to buy foods and beverages. Sustainability is up from 2015.

How much of an impact do the following have on your decision to buy foods and beverages?(% Rating 4 to 5 on 5-point scale, from No Impact to A Great Impact)

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2016 n=1,003

Arrows indicate significant (.95 level) differences vs. 2015.


“Natural” is most often associated with having no preservatives or additives.

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2016 n=1,003

Coded for multiple responses

What does the term “natural” mean to you (when applied to food)? (Open-ended response)

NO PRESERVATIVES OR ADDITIVES

No preservatives, additives or food coloring. No processed foods.

Female, age 38

Natural nutrients that are ingrained in the food products. That is, not any artificial chemicals added in the food to enhance shelf life or taste.

Female, age 67

NATURAL INGREDIENTS/STRAIGHT FROM NATURE/WHOLE FOODS

Taken straight from the source; no chemicals whatsoever have been used on it.

Male, age 20

Not manufactured in a food-plant/factory but instead, grown in nature.

Male, age 48

NO ARTIFICIAL INGREDIENTS OR FLAVORS

It should mean no artificial ingredients, but that is why I read the labels.

Female, age 49

No man-made ingredients.

Female, age 61


Two-thirds think it is very important to ensure all people have access to healthy food.

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Knowing that the global population will rise from 7 billion to 9.5 billion by the year 2050, how important do you think it is to ensure all people have access to healthy food?

2016 n=1,003

85%THINK IT IS IMPORTANT

Who is more likely to see it as important?

• Age 50-80• College grads• Higher income• Women


Seven in 10 see modern agricultural practices as having at least a small role in ensuring that all people have access to healthy food.

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Do you see a role for modern agricultural practices (precision farming, biotechnology, etc.) in ensuring that all people have access to healthy food?

2016 if believes important to ensure all have access to healthy food n=861

70%SEE A ROLE

Who is more likely to see a role?

• College grads• Higher income• Men


Seven in 10 think it is important that food products are produced in a sustainable way.

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How important is it to you that food products you purchase or consume are produced in a sustainable way?

2016 n=1,003

73%THINK IT IS IMPORTANT

Who is more likely to see it as important?

• Age 50-80• College grads• Women• In better health


Four in 10 find conserving the natural habitat and reducing the amount of pesticides used to produce food to be important ways to produce sustainable food.

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What three aspects of producing food in a sustainable way are most important to you? (Net of top three choices picked)

2016 If believes important that food products are produced sustainably n=751

Groups more likely to select:

Women, Lower BMI

Age 35-80, Women

Higher BMI

Age 50-80, Higher income

Age 65-80

College grads


Age 18-34, Higher income, Men

Age 18-49

Those with children,Lower BMI

Age 18-49, Lower income


People are split on whether they would pay more for food and beverage products that are produced sustainably.

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Are you willing to pay more for food and beverage products that are produced sustainably?

2016 n=1,003

Who is more likely to pay?

• College grads• Higher income• Lower BMI• In better health



College grads, Higher income, Men

College grads, Men

Men

College grads, Men, Those without children

College grads, Men

Age 35-80, Women

Less than college, Lower income, Women

A third need more information to make an informed decision of the role of biotechnology.

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As you may know, some food products and medicines are being developed with the help of scientific techniques. One such technique is genetic engineering, which is used to produce crops and food products

known as “GMOs.”

Do you think there is a role for biotechnology (“GMOs”) in ...? (Select all that apply.)

2016 n=1,003


Net AgreeGroups more likely to agree:

56% Age 50-80

53% Age 50-80

51%Age 50-80, Those without children

47% Age 50-80

37% Less than college

Half agree that modern agriculture produces nutritious foods, safe foods, and high-quality foods.

In general, to what extent do you agree or disagree with the following statements about the use of modern tools, equipment and technologies in agriculture? Modern agriculture...

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2016 n=1,003


Groups morelikely to select:

College grads, Women

College grads

College grads, Women

Age 50-80, Women

Age 50-80, Women,Those without children

Women, Lower BMI

Higher income, Lower BMI

Less than college, Men


Lower income, In better health

College grads, Higher income,Women, In better health

College grads, Women,In better health

Women

Women

College grads, In better health

Less than college,In worse health

Consumers are less impacted by labeling in restaurants than they are at the grocery store.

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Which of the following, if any, do you do on a regular basis? (Select all that apply.)

Eat at restaurants because they advertised their foods and beverages as...

Buy foods and beverages because they are advertised

on the label as...

2016 Sample A n=502; Sample B n=501; There were no significant (.95 level) differences vs. 2015.

Natural

No added hormones or steroids

Locally-sourced

Organic

Raised without antibiotics

Pesticide-free

Non-“GMO”

Sustainably sourced

None of the above

NEW

NEW


58%

53%

51%

51%

47%

35%

33%

25%

21%

11%

6%

Take leftovers home from restaurants

Use leftovers for cooking

Plan my meals

Make shopping lists

Use or freeze leftovers in a timely manner

Buy or order smaller portions

Buy smaller quantities of food

Prepare a large batch of food to freeze or eatthroughout the week

Use more frozen and canned foods with a longershelf life

Compost

None

Almost six in 10 try to reduce food waste by taking leftovers home from restaurants.

Which of the following do you actively try to do to reduce the amount of food you waste/throw away? (Select all that apply.)

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2016 n=501


Age 65-80, College grads, Higher income

Age 50-80, Higher income

In better health

Age 50-80, Higher income, Women

Age 50-80, Those without children

College grads

Women

College grads, In better health

Those without children

Age 65-80, In better health

Age 18-34, Those without children


The top contributors to food waste are forgetting about perishables and purchasing too much fresh food.

What contributes the most to the amount of food waste you produce? (Please select just your top answer.)

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2016 n=502

*Age 65-80 is even more likely to select than Age 35-64.


College grads


Age 18-34, Those who eat in less than 30 minutes

Those who eat in less than 30 minutes

Age 18-34

Higher BMI

Those without children, Lower BMI, In better health


Age 35-80*, Lower income


Sustainability Takeaways

• More consumers are citing sustainability as an important factor in purchasing decisions.

• Despite this fact, consumers are split on whether they’d pay more for sustainably produced products.

• Conserving natural habitats and reducing pesticides are the most important aspects of sustainable production.

• Reducing food waste and carbon footprint are less important.

• Food production considerations are more important in the grocery store than at restaurants.

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Get Connected

Foodinsight.org/2016-FHS

@foodinsight

Bob LangertRetired VP, Corporate SocialResponsibility & SustainabilityMcDonald’s Corporation

Editor at LargeGreen Biz Group

10 Evolutionary Ideas toWin Over the Consumer for Good, Safe, Affordable & Responsible Food

Winning Over the Consumer with Sustainability

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1From:

Customers Caring

To:

Customers Rewarding

5

QSC&V

Quality, Service, Cleanliness

& Value

7

QSC&V

Quality, Service, Cleanliness, Value

& Purpose

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2From:

Sustainability as a

Threat/Treehugging

To:

Sustainability as

Shared Value

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I F W E D O N ’ T D E F I N E I T … T H E 1 %

U N S C I E N T F I C W I L L

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GROWING OUR BUSINESS BY MAKING A POSITIVE DIFFERENCE IN SOCIETY

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3From:

The What

To:

Adding the How and Why

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4From:

Crisis Management

To:

Anticipatory Issues

Management

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5From:

Leaning Solely on

Science

To:

Relying on Ethics and

Brand Reputation too

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6From:

Treating NGOs as the Enemy

To:

NGOs as Best Friends

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Brand Story and Sustainability 22

Trust gap between companies and scientists/NGOs

Net Trust in Institutions,* Average of 22 Countries, 2012

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EDF and McDONALD’S

Waste Reduction

Partnership Outcome

From the Outhouse to

the

White House

Unprecedented Results

• In 2006, after 120 days, McDonald’s negotiated a moratorium on Amazon Soya

• The 2-year moratorium was extended in 2008, 2009, 2010 and again through 2015

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With Dr. Temple

Grandin

Colorado State

University

Preeminent Animal

Welfare Scientist

McDonald’s

Transformed Animal

Welfare

In Animal

Agriculture….Globally

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7From:

Risk Aversion

To:

Leadership and Smart Risk

27

RIS

K T

OLE

RA

NC

E

SUSTAINABILITY LEADERSHIP

1 2 3 4 5

The Leadership Spectrum

Low

High

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GO

AL

CER

TAIN

TY

SUSTAINABILITY LEADERSHIP

1 2 3 4 50%

100%

Benchmarking Competition Leadership

1. Design and build all new company

restaurants to be LEED certified by

2015

2. Reduce energy consumption in

company-owned restaurants 10%

3. Reduce water consumption in

company owned restaurants 10%

1. Ensure 100% of coffee is ethically sourced

2. Invest in farmers and communities by increasing

farmer loans to $20M by 2015

3. Build all new company-owned stores to achieve

LEED Certification

4. Reduce energy consumption by 25% in company

owned stores

5. Reduce water consumption by 25% in comp own

stores

6. Purchase renewable energy equivalent to 100%

of electricity used in global comp own stores

7. Implement front of store recycling in our comp

own stores

8. Serve 5% of beverages made in stores in

personal tumblers

9. Contribute 1 million hours of community service

per year

10. Engage a total of 50,000 young people to

innovate and take action in their communities

Serve 5% of beverages

made in stores in

personal tumblers

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8From:

Operating in Silos

To:

Extensive Engagement

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Australian Roundtable

ProducerCommerce &

ProcessingRetail Civil Society Global

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http://www.darden.com/

http://www.darden.com/

http://www.sodexo.com/en/default.aspx

http://www.sodexo.com/en/default.aspx

http://www.dowagro.com/

http://www.dowagro.com/

The Future of Beef Will Never Be the Same

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9From:

Getting Caught Doing Good

To:

Openly Engaging in the

Connected World

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Regarding transparency -- the

producer’s response tends to be ‘we

have nothing to hide, but it’s none

of your business.’

Charlie Arnot, chief executive officer

at The Center for Food Integrity

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10From:

Telling Your Story

To:

Sharing; Having a Dialogue

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Views from the Farm:Insights about Soy’s Sustainability

IFT 2016

Presented by Josiah McClellan

ABOUT THE UNITED SOYBEAN BOARD

• Led by 70 soybean Farmer-Directors

• Directs funds from the soy checkoff, which is supported entirely by U.S. soybean farmers

• Invests in research, marketing and communication programs to expand market

U.S.-GROWN SOYBEANS

• Soybeans are grown in 31 states

• 82.5 million acres planted in 2016

THE SUSTAINABILITY OF SOY

• 97% of U.S. farms are family owned 1

• Soybeans are an inherently sustainable crop, offering environmental and agronomic benefits

BENEFITS OF U.S.-GROWN SOYBEANS

• U.S.-grown soybeans result in:

• Shorter supply chain for the food industry

• Reduced transportation costs

• Lower carbon footprint

• Regulations at the national, state and local levels• Environmental regulations• Health and safety

• Food safety• Worker safety

• Voluntary conservation programs• More than $1 billion NRCS funding• Public/private partnerships

• Best practices inside the farm gate• Best practice adoption rates• Regional customization

U.S. SOY SUSTAINABILITY ASSURANCE PROTOCOL

TRACKING SUSTAINABILITY

• Monitoring and reporting sustainability performance• Annual tracking of conservation outcomes• Aligned with USDA sustainability goals

• Life cycle assessment • Soybean meal and oil

• No additional cost• Compatible with all supply chains• Quantifying sustainability performance that comes with commodity

soybeans

BIOTECHNOLOGY AND CONSERVATION TILLAGE Conservation Tillage Benefits2

• Cropland erosion reduced from 2.78 (1982) to 1.56 billion tonnes/yr (2007)

• Wind erosion reduced by 90% with 60% residue cover

• Clearing cropland sediments from waterways and reservoirs can cost $6 billion annually due to erosion

IMPROVING AGRICULTURE’S CARBON FOOTPRINT

• Carbon sequestration in no-till soils effectively reduces atmospheric CO2

• 6.6 million ha of continuous no-till sequesters 8.8 million tonnes of CO2 annually

• Reduced fuel consumption through reduced field passes

• No-till saves 36.5L/ha fuel compared to moldboard plowing

• Soy’s domestic growing area: key part of its sustainability

• Consumers claim sustainability and domestic sourcing influence purchase behavior

• Soybean oil and soy-based product case studies affirm this influence

CONSUMER PRIORITIES PUT TO THE TEST

USB 100% SOYBEAN OIL LABELING PROGRAMS

• Launched in 2012

• Aims to move the food industry toward labeling vegetable oil as soybean oil

• Two retail partnership phases• Vegetable oil labeled as

100% soybean oil• U.S. grown

LABELING INSIGHTS

• 100% of bottlers would consider changing to a “100% Soybean Oil” label with persuasive consumer demand3

• Only 4% of shoppers are aware that most vegetable oil is 100% soybean oil4

• Just 1% of shoppers are aware that most soybean oil is made with U.S.-grown soybeans4

83% of shoppers said that knowing most vegetable oil is U.S.-grown 100% soybean oil will influence their future cooking oil

purchase*

*As determined by a post-promotion consumer survey conducted by Schnucks

USB partnered with a large Midwest grocery retailer (230+ locations) who promoted its vegetable oil as “U.S.-Grown 100% Soybean Oil”

Campaign Elements • In-store advertising (shelf talkers,

bottle neckers and aisle blades) • Shopper education (in-store food

sampling demos)

USB 2015 CASE STUDY – PRIVATE LABEL VEGETABLE OIL

• 27% unit sales increase;

• 15 stores saw more than a 100% increase5

PRIVATE LABEL VEGETABLE OILSALES RESULTS

SHOPPER FEEDBACK

• 87% of consumers said they are more likely to purchase U.S.-grown 100% soybean oil after learning the health benefits6

• When asked which messaging has the most impact on future purchase, health benefit information (73%), sustainably grown (64%) and U.S. grown (54%) were listed6

USB 2015 CASE STUDY –PACKAGED FOODS

USB partnered with a global consumer goods company who called out “U.S.-Grown 100% Soybean Oil” as an ingredient in its mayonnaise

Campaign Elements • In-store advertising (shelf tags,

bottle neckers and aisle blades)• Recipe Cards

PACKAGED FOODS SALES RESULTS • 7.7% sales increase as a result of

ingredient promotion7

• 58% of consumers influenced by knowing that mayonnaise is made from U.S.-grown soybeans8

SOURCES

1. Farm Size and the Organization of U.S. Crop Farming; Economic Research ReportNo. (ERR-152) 61 pp, August 20132. Facilitating Conservation Farming Practices and Enhancing Environmental Sustainability with Agricultural Biotechnology; Conservation Technology Information Center; April 20103. 2012 United Soybean Board Oil Bottler Study 4. 2015 shopper intercept survey conducted by Schnucks5. Sales data reported by large Midwest grocer 6. Post-promotion consumer survey conducted by the United Soybean Board 7. Sales data reported by global consumer goods company8. Post-promotion consumer survey conducted by the United Soybean Board

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDAQFjAB&url=http://www.ers.usda.gov/ersDownloadHandler.ashx?file=/media/1156726/err152.pdf&ei=sE9-U4qWBom_sQSE8IKIDQ&usg=AFQjCNGWhzRSuCL-gUccutlh1aeOjM5pPw

Questions?

Josiah McClellanDirector of Food Market Issues and Sustainability

United Soybean Board+1 314 579 1597

[email protected]

mailto:[email protected]

sustainability in the marketplace

Presentations & Public Speaking