Merging health and wellness with other corporate objectives
September 27, 2023 - By Rachel Kubik, Senior Content Writer for ARC
Today’s consumers are looking for more than just tasty and affordable products. They want to align their purchasing decisions with their values, whether it’s related to sustainability, transparency, ingredient quality, animal welfare or corporate responsibility. Health and wellness brands that can address these concerns and communicate their commitment to these values are likely to thrive in the evolving market.
Public relations firm MikeWorldWide said corporate social responsibility is vital in food and beverage. A portion of the population (35%) identifies as corporate-minded consumers, or “CorpSumers,” who base their purchasing decisions on a company’s values and reputation. Brands need to align their messaging and actions with the values of their target audience. Consumer preferences and expectations are changing. Here are some of them:
Corporate Social Responsibility (CSR): Consumers are considering a company’s reputation and values beyond its products. Employee wellbeing and corporate culture are important factors. CSR programs can help companies demonstrate their commitment to broader social and environmental goals.
Sustainability: Consumers are concerned about the carbon footprint of their food. They want to know about sustainable agricultural practices, supply chain management and packaging. According to a report from Food Processing Magazine, all of the top 10 companies by U.S. sales have active sustainability initiatives, many of them across multiple fronts. Some sustainability initiatives include encouraging or mandating sustainable agricultural practices by the farmers who supply a company; sustainable manufacturing practices, such as using less water or electricity, and generating less waste; better packaging, often meaning less overall, and less use of virgin plastic; and other initiatives. Brands that can demonstrate a commitment to sustainability are more likely to attract consumers.
Transparency: Consumers expect transparency from health and wellness companies. They want to know about packaging materials, such as paper or plastic, recyclability and the overall environmental impact of products. Brands that can provide clear information are more likely to gain consumer trust.
Ingredient sourcing: Consumers are paying close attention to ingredient lists and product labels. They prefer products with clean and natural ingredients and no artificial additives. Additionally, they are concerned about the safety and quality of ingredients, as well as labor conditions in their production.
Animal welfare: The treatment of animals in food production is a growing concern. Consumers want to know how animals are treated and demand higher standards of animal welfare. Products containing animal-derived ingredients are often scrutinized for ethical practices.
Plant-based options: The plant-based food market is growing rapidly. Many consumers are adopting flexitarian diets and seeking alternatives to animal-based products for health and ethical reasons. Brands that offer plant-based options are likely to appeal to a broader customer base.
Lifestyle compatibility: As online grocery shopping becomes more popular, consumers are looking for products that fit their lifestyles and values. Convenience is important, but quality, nutrition and sourcing still matter. Brands need to adapt to changing shopping habits.
Philanthropy: According to consumer intelligence suite KPI6, charity, with a focus on helping others and supporting local communities, is a significant aspect of CSR. Consumers expressing their views online have a positive view of humanitarian aid, and discussions about food brands often revolve around their contributions to those in need, including monetary and food donations. Consumers additionally expect food brands to make their products accessible to those facing financial difficulties, especially during crises. Specific brands demonstrating these principles include Nestlé, Caulipower and Arla.
PR and messaging: Building a socially-responsible brand requires accountability and transparency. Effective public relations and messaging can help companies communicate their commitment to values that matter to consumers.
One example
Danone has pledged commitment to responsible business practices in the food and beverage industry. It focuses on various aspects of corporate responsibility, including food safety, marketing to children, sourcing practices and providing nutritional information to consumers. By talking publicly about these efforts in a coordinated way, the company can show it can “be a force for good” – both as a business and as a corporate citizen – out there with the rest of the communities it works with. The company can show it’s active in the discussion on agriculture policy, transportation policy or a price on carbon for the energy sector.
One focus area for the company is responsible and sustainable sourcing practices. The manufacturer and producer of dairy and nutritional products integrates its Danone Sustainability Principles (DSP) into contracts with suppliers, aiming to promote good working conditions, environmentally responsible practices and ethical behavior throughout the supply chain.
The company has implemented a comprehensive food safety management system that adheres to local laws and regulations while maintaining stringent standards based on the latest science and technology. Collaboration with various stakeholders can promote safer and more sustainable food solutions.
The manufacturer conducts compliance audits to ensure that its practices align with its commitments. Danone restricts marketing communications to children under the age of 13 to products that meet specific nutritional criteria. The company avoids misleading messages, promotes healthy diets and lifestyles and supports the role of parents in guiding dietary choices.
Danone follows responsible marketing practices and adheres to international standards, such as the International Chamber of Commerce Framework for Responsible Food and Beverage Marketing Communications. The company commits to transparent and truthful marketing communications, particularly related to product benefits and nutritional information. The producer provides extended nutritional information to consumers on product packaging. This includes detailed nutritional tables, recommended daily intake levels, portion sizes and energy values. Danone has established internal guidelines to ensure the scientific accuracy and credibility of health and nutrition messages in its communications. Claims are confirmed by scientific evidence and comply with regulatory frameworks.
Conclusion
As consumers place more value on Corporate Social Responsibility, including health & wellness objectives in broader CSR programs can help illuminate these efforts. Brands and retailers can look to companies like Danone as an example of how to tie these efforts together in a cohesive message. As dietitians, keep an eye on how these companies are speaking publicly about their broader social and environmental goals to better educate shoppers on the holistic impact these companies are having beyond just the health benefits of their products.
Final note
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