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Archive for December, 2011

Eat This or Die

Wednesday, December 7th, 2011

Coffee, wine, beer and chocolate have long been considered vices, but recent studies reveal their health benefits: Coffee cuts skin cancer risk and lowers women’s depression; beer can help women protect against osteoporosis; and red wine and cocoa antioxidants could boost metabolism and benefit the heart, respectively.

Even so, consumers should have enough sense to not overindulge in traditionally unhealthy products. But, how do they react when a study reports health claims of nutrients without an existing bias?

The overly-trusting consumer may run out to buy every product with ginger in the ingredient list after reading that it reduces colon inflammation and cancer risk. Suddenly, CPG manufacturers of ginger-snaps have some decisions to make. Should they attempt to capitalize on these claims with front-of-packaging ingredient information?

Packaging claims have been a hot issue lately, as two camps of thought sparked a great debate. The Grocery Manufacturers Association’s (GMA) “Facts Up Front” rivals the Institute of Medicine (IoM) over what should be included in front-of-package nutritional facts.

IoM believes displaying calories and a simple star rating will sufficiently inform consumers of nutritional level, while the Facts Up Front Label will present calories, total fat, sodium, sugars, and two “nutrients to encourage” for the manufacturer to choose.

These systems ultimately have the same goal: help consumers make healthier choices. But striking a balance between information overload and ease of use is key.

Time Healthland featured a University of Minnesota study suggesting that people don’t actually look at the same nutrition information on food packages as they claim. Researchers used an eye-tracking device with a group of designated shoppers to reveal which components of nutrition labels participants paid attention.

“Although 26% of people self-reported that they almost always look at Nutrition Facts labels at the grocery store, 37% of them actually noticed at least one component of the label for almost all food items,” according to the article.

But, customers seem to be unaware of which components they actually noticed. There were large discrepancies between self-reports and eye-tracking data. While 33% said they looked at calorie count, only 9% actually did. In addition, 31% reported they paid attention to total fat content, 24% said they looked at sugar content, and 26% said they looked at serving size, when in reality, only 1% studied each of these components.

It will be interesting to see if this data changes when front-of-package nutrition facts become more prominent, as they’re expected to do in 2012. Will consumers trust only a standardized system, such as Facts Up Front or IoM’s, or can CPG manufacturers continue to play up key healthy ingredients in a less structured manner?  What’s your take?

Let’s Talk More About Innovation

Monday, December 5th, 2011

Thanks for the comments and viewpoints generated by my first post on innovation.

While change comes in many forms, we’ve identified five types of change that we believe spark innovation more often than others.  These include:

Societal change – as cultural norms shift, shoppers’ needs also evolve, creating an outstanding innovation opportunity.  The ongoing innovation in better-tasting and higher-quality prepared foods reflects the growing number of two-income households in America, for example.

Mass movements – the widespread growth in consumer interest for a particular cause often drives new innovation.  The explosion of sustainable products to combat global warming, burgeoning landfills and depleted oil stocks has sparked significant new innovation

Economic conditions – As the recent recession brutally illustrates, economic conditions are a powerful driver of innovation.  The continued and growing popularity of private label products is perhaps the strongest example of economics-driven innovation.

Demographics – The ongoing shift in the age, ethnic composition, geographic location and work patterns of shoppers drives innovation.  Consider cans with easy-to-open lids, catering to an older population more likely to suffer from arthritis.

Scientific advances – Advances in technology enable new forms of innovation.  Breakthroughs in packaging materials have given us microwavable trays and single material packaging.

Often two or more of these conditions occur simultaneously to push innovation even faster.   For example, mass interest in environmentally-benign packaging and scientific advances has resulted in the much wider availability of recycled boxes, cans, pouches and bottles.

As you are thinking about innovation, I’ve observed several ingredients that are part of every innovative company:

  • Ensure the R&D team is focusing efforts on fulfilling your organization’s long-term vision and mission, as well as its short-term tactical plans
  • Confirm that your organizational structure supports and nourishes innovation by removing hierarchies wherever possible and encouraging direct communication among internal and external resources for everything from product ideation to packaging
  • Develop cross-functional teams that include every discipline that will “touch” a new product
  • Think big.  Innovative companies are not built on line extensions

I know many of you will have thoughts and I look forward to reading and sharing these.