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Advancing the fresh campaign

by Brian Baker, Curt Fedder, Nithya Swaminathan, Jagadish Upadhyaya
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3 minute read 10 April 2020

Advancing the fresh campaign The future of fresh

3 minute read 10 April 2020
  • Brian Baker United States
  • Curt Fedder United States
  • Nithya Swaminathan United States
  • Jagadish Upadhyaya India
  • Jagadish Upadhyaya India
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  • Fresh needs a face-lift

Technology can help prompt consumers toward fresh food options.

Consumer interest in healthier food options is on the rise. As many as 80 percent of fresh food consumers actively seek healthier versions of the foods they purchase.1 And 31 percent of consumers have higher purchase intent within fresh foods, are highly committed to health and wellness, and are eager to experiment with fresh options. We call these consumers “Fresh Forwards.”2 We’re curious how fresh food companies can:

  • Attract new shoppers into the “Fresh Forwards” segment and retain them
  • Provide consumers with appropriate information to help them make healthy decisions at time of purchase

US consumers lack fresh food awareness, but demand is high

Learn more

Explore the retail & consumer products collection

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Common food labeling terms—such as natural, organic, 100% organic, and conventional—are not only confusing and vague but deciphering them is a burden that falls squarely on the convenience-seeking consumer. More than a third of our consumers surveyed said that they don’t fully understand the difference between the different food descriptions listed above. However, we know from our research that 80 percent of consumers actively seek out healthier food and beverage options, while 77 percent avoid preservatives and other chemicals in the food they buy. With clear purchasing intent for healthy food options, what can companies do to further the fresh agenda?

Fresh needs a face-lift

Does an apple a day keep the doctor away? Not particularly,3 but the adage has certainly helped promote apple consumption and, in general, healthy food choices. With access to modern communication channels and advancements in nutrition and food science, today’s marketers have the opportunity to shape a healthier society with more positive eating habits.

Packaging and labels continue to be an effective way to communicate nutrition facts and encourage healthier food choices. For example, a recent study found labeling reduced consumers’ intake of total fat by 10.6 percent, calories by 6.6 percent, and other unhealthy food options by 13 percent. At the same time, labeling helped increase vegetable consumption by 13.5 percent.4

However, with packaging real estate at a premium, companies and food producers are searching for creative new ways to provide information about their products. Recently, a produce supplier began leveraging QR codes on packaging to provide consumers with a wealth of product information, such as where and how the product was cultivated, harvested, and packed.5 In addition, many leading food retailers in the United States are using blockchain technology to provide end-to-end traceability of their fresh and leafy green suppliers. 6

Mobile apps and social media platforms are becoming increasingly important tools for sharing educational and inspiring content to consumers. Our study revealed that half of all fresh food users are willing to use a smartphone app to inform in-store decision-making.7 While nearly all industry executives (97 percent or more) believe in providing detailed information on a variety of fresh food topics (organic farming, sustainability, and food waste), 78 percent cited long lead times as a critical factor impairing their decision to implement new technology.8

Shopping today is the most convenient it has ever been for consumers.9 With technology becoming the medium of influence across all aspects of a customer’s journey, manufacturers’ ability to serve the right content, through the right channel and at the right time, can truly help further the growth potential of fresh foods.

Common food labeling terms are not only confusing and vague but deciphering them is a burden that falls squarely on the convenience-seeking consumer.

To learn more about fresh foods, please see our recent study, The future of fresh: Strategies to realize value in the fresh food category.

To learn more about advanced technologies in the consumer products sector, please see our recent series, The adoption of disruptive technologies in consumer products industry.

Acknowledgments

The authors would like to thank Kavita Saini, manager, Deloitte Support Services India Pvt. Ltd., for providing editorial assistance. 

Cover image by: Anna Godeassi

Endnotes
    1. Barb Renner et al., The future of fresh: Strategies to realize value in the fresh food category, Deloitte Insights, November 12, 2019. View in article

    2. Ibid. View in article

    3. Matthew A. Davis, Julie P.W. Bynum, and Brenda E. Sirovich, “Association between apple consumption and physician visits: Appealing the conventional wisdom that an apple a day keeps the doctor away,” JAMA Internal Medicine 175, no. 5 (2015): pp. 777–83. View in article

    4. Mary Ellen Shoup, “Study: What kind of impact does food labeling have on consumption?,” Food Navigator, January 14, 2019. View in article

    5. Dan Ochwat, “Square Roots QR codes,” Consumer Goods, February 25, 2019. View in article

    6. Jeff Wells, “Walmart mandates blockchain use for leafy greens suppliers,” Grocery Dive, September 25, 2018. View in article

    7. Deloitte’s analysis based on Future of Fresh survey which included fresh food manufacturers and retailers. View in article

    8. Ibid. View in article

    9. Rod Sides and Nithya Swaminathan, 2020 retail industry outlook: Convenience as a promise, Deloitte, 2020. View in article

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Consulting Services for Consumer Products

The consumer products industry today faces virtually unprecedented challenges and opportunities. Eroding brand loyalty, increased merger and acquisition activity, enduring recessionary consumer attitudes and the rising influence of digital technologies on shopping behavior all threaten traditional business models–but also give rise to new and exciting ones. In the face of changing consumer needs and behaviors, Deloitte’s Consumer Products team is working with clients to strengthen analytics, improve internal operations and develop new market-facing capabilities and channels. With experience across a wide range of sectors–including food and beverage, personal and household goods, agribusiness, apparel and footwear, and household durables–we position our clients to lead in the face of change.

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Brian Baker

Brian Baker

Managing Director | Retail and Consumer Goods

Brian is a managing director in Deloitte’s Retail and Consumer Goods practice, Deloitte Consulting LLP. His experience includes process design and evaluation, program assessments, systems implementation, managed services, and value delivery programs. Brian’s career experience covers multiple retail areas including: inventory management, procurement of both perishable and non-perishable goods, replenishment/allocation, promotional planning, pricing, third-party logistics, and import procurement. In addition, Brian has more than 15 years of store management experience, focusing on perishable departments. Brian has worked with leading national and regional grocery retailers in the areas of process redesign, supply chain solution implementation, SAP, and JDA software packages. He has additional experience with direct store delivery, scan-based-trading, open-to-buy management, hard lines, importing, and store operations.

  • brianbaker@deloitte.com
  • +1 785 580 8812
Curt Fedder

Curt Fedder

Senior Manager | Deloitte Services LP

Curt is a senior manager at Deloitte Services LP’s Center for Industry Insights and leads market research for consumer products. With expertise in consumer research, and a focus on brand equity, customer satisfaction, and advertising. Curt has led consumer research groups in consumer products and retail organizations. He has published articles in the Journal of Advertising Research and Quirks Marketing Research, and presented at market research industry conferences.

  • cfedder@deloitte.com
  • +1 312 486 3710
Nithya Swaminathan

Nithya Swaminathan

Chief of staff

Nithya Swaminathan is a senior manager and chief of staff at Deloitte’s Consumer Industry Center, Deloitte Services LP. She is focused on developing and operationalizing the consumer research agenda that spans across retail, consumer products, travel, hospitality, and auto sectors. She has more than 13 years of client-service experience at Deloitte Consulting, helping some of the largest brands in retail and consumer products leverage innovative solutions to become insight-driven organizations.

  • niswaminathan@deloitte.com
  • +1 312 486 1458
Jagadish Upadhyaya

Jagadish Upadhyaya

Research & Insights Manager – Consumer Products | Deloitte

Jagadish Upadhyaya is a manager at Deloitte Support Services' Consumer Industry Center and supports research for the consumer products sector. He has over 15 years of experience conceptualizing and designing research projects, project management, and advanced statistical analysis. Upadhyaya has rich experience writing high-impact thought leadership backed by detailed research and analytics. He has led client-specific multidisciplinary market research teams focusing on the analysis of real-time market data and identifying trends in the consumer products and retail space.

  • jupadhyaya@deloitte.com
  • +91 99890 22430

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