Dive Brief:
- Food and beverage companies rely on a combination of marketing and product claims to promote sustainability efforts, while other consumer packaged goods companies favor marketing over product claims, according to Nielsen data.
- "The heavier use of claims for consumable goods may indicate that customers consider sustainability a higher priority when buying products they personally consume versus those used around the house," Nielsen said.
- About two-thirds of millennials in a global Nielsen survey reported being willing to pay more for sustainable items. Nielsen also found that 45% of consumers could be swayed in their product purchase decisions based on a company's commitment to the environment.
Dive Insight:
"Nielsen defined 'claim only' as a brand that directly indicates a connection to sustainability on a product’s label or packaging. 'Marketing only' was defined as a brand that uses web sites, news coverage and other messaging vehicles to promote positive social and/or environmental impact in the local or global community," Food Business News reported.
Many companies have made visible contributions to sustainability with changes to their operations. Earlier this month, the Food Waste Reduction Alliance released a food waste guide for the industry that highlighted efforts by Campbell, ConAgra, and other companies.
"While marketing good deeds is critical and expected by consumers, authenticity and credibility are essential," said Carol Gstalder, senior vice president of reputation and public relations solutions for Nielsen. "Using multiple communication methods is important, i.e., third-party validation (news coverage), annual reports, affiliation with a respected non-profit or civic organization, employee volunteerism, advertising, or reporting actual work in the community on a web site."
In September, PepsiCo announced it had generated savings of $375 million from its sustainability initiatives. Other companies have made commitments for more sustainable sourcing throughout their supply chains, such as Post with sustainable palm oil and Hershey with sustainable cocoa.