AlabamaGroceryJan2017Final

According to Mintel research, 70 percent of U.S. shoppers say they like to know where their food and drink comes from. Further, about 75 percent of U.S. consumers with internet access have conducted online research for purchases in the last week. In short, today’s consumers are equal parts skeptic and sleuth. Consumers Want Transparency from Retailers Besides the obvious drivers of convenience, price and familiarity, grocers have many other “stories” to tell in marketing communications. At the store level, one asset to prioritize and invest in is human capital. The role of the employee can be elevated beyond just telling customers which aisle items are in, and/ or ringing up items efficiently. Informed and knowledgeable employees can assist consumers who are seeking more detailed information regarding the origin of the foods they buy. Highlighting fresh produce and the stories of the farmers that grow it is especially relevant for baby boomers and swing generation consumers who are most likely to choose a retailer based on its fresh produce selection, according to Mintel research. Meanwhile, stories about unique and exclusive items including organic and natural food selections offer maximum appeal to millennials. Demand for transparency is especially pronounced for private label products. According to Mintel research, U.S. store brand buyers overwhelmingly agree that store brands should provide more transparency about who makes them, where they are produced, and their origins. As retailers continue to expand their store brand offerings with many making organic and BFY (better-for-you) claims, consumers appear to be skeptical about whether they can trust these claims. This presents retailers with an opportunity to tell a stronger story about the origin of their products as a way to connect with buyers and quell any concerns about how they are made, especially since more than half of buyers agree that national brands do a better job of providing this information.

Attitudes Towards Food, by Demographics,U.S., February 2015

Swing Generation/ World War II (1945 or before) (70+)

iGeneration (1995 - 2007) (18-20)

Millennials (1977-1994) (21-38)

Generation X (1965-1976) (39-50)

Baby Boomers (1946-1964) (51-69)

All

There are probably more harmful or excess ingredients in foods than manufacturers are telling us I want to see more transparency in food product ingredients I worry quite a bit about potentially harmful ingredients in the food I buy

71%

80%

70%

71%

71%

73%

69%

62%

68%

67%

70%

72%

53%

60%

60%

55%

46%

35%

Base: 2,000 internet users aged 18+ Source: Lightspeed GMI/Mintel Source: Mintel Reports: Free-from Food Trends – U.S., May 2015

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Now More Than Ever, True Stories are Important

Storytelling is more important now because the necessity for retailers and brands to be transparent has never been higher. Product recalls, questionable claims and shady business practices have made us more suspicious shoppers and worried about the foods we buy. In fact, nearly three-quarters of U.S. consumers show a high level of skepticism towards food integrity, according to Mintel research. Younger U.S. adults aged 18-38 are the most worried about harmful ingredients, while demand for transparency in food product ingredients increases with age. Food worries are often multifaceted; consumers often express concern over the impact on their own health as well as what ’ s good for the planet. (The recession made Americans more conscientious shoppers. Now consumers are examining every purchase because we can; the rise in price and product tracking tools has made it easy for us to be more informed and savvy shoppers.)

Attitudes Toward Store Brand Products , U.S., November 2015

Agree

I want to see more transparency about who makes them

81%

I want to see more transparency about where they are produced

79%

I would trust a store brand more if it listed the product’s origin

76%

I would buy more store brand products if they used locally-sourced ingredients National brand products share more information about their origins than store brands

69%

56%

Base: 1,864 internet users aged 18+ who purchase any private label Source: Lightspeed GMI/Mintel Source: Mintel Reports: Private Label Food Trends – U.S., February 201

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