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Excerpts from The Hartman Group, Sustainability Report- 2017

DMI SUMMARY:

Key Takeaways

• Consumers are becoming more purposeful in their consumption. Though the gap between aspiration and

action varies with consumers’ level of engagement with sustainability, we see this “conscious

consumerism” only gaining power and momentum in the future.

• Consumers continue to lack awareness about companies’ responsibility efforts. Addressing this

communications gap — especially via social media — may help bring in new customers.

• Packaging and signage is still the primary way to communicate with consumers, who look for an

accumulation of details to assess authenticity.

• While certifications go a long way toward building sustainability credentials, claims must be backed up in

brand narrative and company policies that communicate a sincere commitment to stated sustainability

goals.

2Source: The Hartman Group, Sustainability 2017

Approach

Quantitative

• Online survey among a national

representative sample of 1,500 U.S.

adults age 18 to 71; Primary grocery

shoppers

Timing

August 2017

Topics

• Familiarity and concepts/attributes associated with sustainability and corporate transparency

• Attitudes and behaviors associated with sustainability and corporate transparency

• Engagement with key sustainability issues and certifications

• Purchasing criteria and barriers and willingness to pay for sustainability-related attributes in key macro-categories

3

Qualitative

In-home ethnographies: 2-hour in-home individual interviews, including a tour of sustainability-related

spaces and kitchen food storage

Virtual interviews: 75-minute interviews via Skype

Background & Methodology

NOTE: Age cohorts are defined as:

• Gen Z: aged 18–19 (base size is too small to report in most cases)

• Millennials: aged 20–38

• Gen X: aged 39–52

• Boomers: aged 53–71

Source: The Hartman Group, Sustainability 2017

13%

29%

29%

16%

13%

SUSTAINABILITY WORLD MODEL

87% of consumers are inside the World of Sustainability

Core

Inner Mid-level

Outer Mid-level

87%Inside the Worldof Sustainability

Segmentation based on reported respondent behavior regarding: animal testing, packaging, community issues, supporting companies helping local community, recycling, price. SUST2017. Base: Total (n=1500). Q12. Are you familiar with the term ‘sustainability’? Base: Total (n=1500); Core (n=203); Inner Mid-level (n=449); Outer Mid-level (n=436); Periphery (n=228); Outside (n=184).

Core

Inner Mid-level

OuterMid-level

Periphery

Outside

The Core is most intensely involved in sustainability.

• Promoting sustainability for the benefit of the greater good —rather than personal benefit — is a defining feature of their values, consistently driving decision making.

The Mid-level represents the majority of consumers and thus the biggest opportunity.

• Inner Mid-level (29%) consumers adopt Core attitudes and behaviors pragmatically and are often more driven by personal benefits.

• Outer Mid-level (29%) consumers are occasionally influenced by sustainability in their purchases when it intersects with personal benefits.

The Periphery is least involved in sustainability.

• rarely consider sustainability explicitly in their decision making, but it does play a role in their value system more generally.

13%

58%

16%

Inner Mid-levelPeriphery (16%)

Outer Mid-level (29%)

Inner Mid-level (29%)

Core (13%)

As consumers become more engaged and as the breadth of their sustainability-driven behaviors grows, the gap

between their aspirations and actual behaviors narrows.


SUSTAINABILITY WORLD MODEL

Sustainability trends originate with Core consumers and are adopted more

pragmatically by the Mid-level

OpportunityThe Periphery borrow

sustainability cues from the Mid-level.

TrendsThe Mid-level are

influenced by the Core.

Mid-level consumers offer the biggest opportunity for sustainable messaging, products, and services. They look to

the Core for purchase criteria, knowledge, and potential actions to take but choose trends that offer them practical,

accessible, and convenient ways to live their values.

The Outside is not concerned with

sustainability in their lives or purchasing …

yet.

Greater GoodAuthenticityTransparency

Trust

TransparencyTrust

ExperienceSafety

ExperienceSafety

ComparabilityConvenience

SafetyComparabilityConvenience

Price

Segmentation based on reported respondent behavior regarding: animal testing, packaging, community issues, supporting companies helping local community, recycling, price. SUST2017. Base: Total (n=1500).

Core

13%

Inner Mid-level

29%

Outer Mid-level

29%

Periphery

16%

Outside13%


Sustainability is a complex term that

incorporates not only the environment but also

how humans interact and fit within it. Even

unengaged consumers recognize connections

between personal benefits and wider social,

economic, and environmental issues.

DEFINING SUSTAINABILITY

Four overlapping zones of responsibility help explain how

consumers think about, and act upon, sustainability issues

Personal

Responsibility for one’s own (or one’s family’s)

needs and desires

Consumers tend to evaluate products, services, and actions through four zones of responsibility: personal, social, economic, and environmental.

Consumers can compartmentalize each of these zones into discrete areas separate from one another. However, for the engaged sustainability consumer, these zones do not exist in isolation; each is fundamentally linked to one another as parts of a whole.

Social

Responsibility for the well-being of others,

including animals

Economic

Responsibility for the economic well-being of one’s town, region, or nation or for

businesses one supports

Environmental

Responsibility for the well-being of the planet

at both the local and global level

Zones of Responsibility


58%

50%

46%

41%

35%

34%

33%

31%

26%

25%

25%

23%

13%

13%

12%

12%

10%

10%

6%

6%

5%

5%

Ability to last over time

Conserving natural resources

Recycle, reuse, reduce

Environmentally friendly

Ability to support oneself (self-reliance)

Responsible farming methods

Responsibility

Reducing carbon footprint

Maintaining a clean water supply

Green

Stewardship of land

Economic viability

Humane treatment of animals

Simple living

High quality

All-natural

Fair Trade

Organic

Local

Social activism

Connecting with others

Reduction of meat consumption

Consumer definitions of sustainability tend to cluster within a few key dimensions that are aligned with zones of

responsibility

• Ability to support oneself (self-reliance)

• Economic viability

• Ability to last over time

• Reducing carbon footprint • Stewardship of land

• Environmentally friendly

• Maintaining a clean water supply

• Conserving natural resources • Green

• Responsible farming methods • Responsibility

• Recycle, reuse, reduce

• All-natural • High quality

• Organic • Simple living

• Social activism • Connecting with others

• Fair Trade• Reduction of meat

consumption

• Humane treatment of animals • Local


Connections among attributes reveals 4 key dimensions of sustainability that

align with the zones of responsibility

SUST2017. Q13. The word "sustainability" may mean different things to different people. What does it mean to you? (Please select all that apply). Base: Familiar with term “sustainability” – Total (n=1243).Principal factor analysis identified 4 factors or themes among the list of sustainability attributes and then identified which meanings comprise each theme. Any respondent who selected one or more attributes within each theme was assigned as present in that theme. An individual respondent could qualify for multiple themes.

Sustainability Means…Consumer-defined Dimensions

Among those familiar with the term


In general, the more zones an attribute touches for a consumer, the more influential it is in their

purchasing. Attributes in the center are especially powerful because they encompass more zones of

responsibility for a wider set of consumers.

Organic

Fair/direct trade

Locally made

Wild-caughtGrass-fed

Cage-free/ free-range

Hormone/antibiotic-free

Simple/minimal ingredients

Less processed ingredients

Ingredients not banned in another

country/state

Locale

Humanely raised/slaughtered

B Corp

Well-treated/satisfied employees

Political affiliations

Involvement in community groups

Pesticide-free Non-GMO

Non-toxic packaging

Biodynamic

Minimal/no pollutants

Local/cooperative ownership

Locally sourced

Domestic (USA) production

Renewable/limited energy use

Preventing pollution of air, water, soil

Minimal packaging

Ownership transparency

Re-usable packaging

Land stewardship

Recyclable

Compostable/ biodegradable

Country of Origin

Minimizing carbon footprint


In practice, the zones of responsibility overlap, especially for more engaged consumers who tend to think about sustainability holistically



“Sustainability” is more likely to reflect future and farm/land-oriented

meanings than in the past — a responsibility to future generations

Sustainability is associated with a wide

range of concepts.

• More than environmentalism, social activism

and product purity are key elements for many

consumers.

• More see it as an essential responsibility than

in the past.

Consumers who are more engaged with

sustainability associate it with a more

wide-ranging set of concepts than

others.

• Core consumers associate sustainability more

strongly with more concepts.

• Mid-level consumers are likely to see

sustainability as a quality cue, associating it

with high quality, all- natural, and organic.

58%

50%

46%

41%

35%

34%

33%

31%

26%

25%

25%

23%

13%

13%

12%

12%

10%

10%

6%

6%

5%

5%

Ability to last over time

Conserving natural resources

Recycle, reuse, reduce

Environmentally friendly

Ability to support oneself (self-reliance)

Responsible farming methods

Responsibility

Reducing carbon footprint

Maintaining a clean water supply

Green

Stewardship of land

Economic viability

Humane treatment of animals

Simple living

High quality

All-natural

Fair Trade

Organic

Local

Social activism

Connecting with others

Reduction of meat consumption

Sustainability Means…Among those familiar with the term

4-year trend from 2013: Base: Familiar with term “sustainability” and aged 18-69 — 2013 (n=1356); 2017 (n=1208)SUST2017. Q13. The word "sustainability" may mean different things to different people. What does it mean to you? (Please select all that apply). Base: Familiar with term “sustainability” — Total (n=1243).

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WHO IS RESPONSIBLE FOR SUSTAINABILITY?

Consumers across the World of Sustainability see themselves as primarily

responsible for sustainability efforts

Governments and large companies still play a key role, however, with

consumers placing more responsibility in government than in the past.

Many consumers see those institutions as responding to consumer/citizen

demand and so place primary responsibility for sustainability with

individuals.

66%

60%

73%

47%

54%

50%

46%

52%

27%

25%

37%

24%

23%

10%

6%

Individuals

Governments

Large companies

Environmental or social justicegroups/non-profits

Small companies

Who Bears the Most Responsibility in Making Our World More Sustainable?

4-year trend from 2013: Q69 Base: Total aged 18-69 – 2013 (n=1841); 2017 (n=1456). SUST2017. Q69. In your opinion, who bears the most responsibility for making our world more sustainable? Please rank the choices from 1 to 5, with "1" being most responsible and "5" being least responsible. Base: Total (n=1500).

Ranked 1st 1st or 2nd 1st, 2nd or 3rd

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Millennials, who are more likely to say their purchasing has a larger impact than their voting, assign a larger role to individuals than older generations.

Gen X and Boomers believe large companies have a bigger role to play in sustainability.

Political orientation influences how consumers see the role of government:

Liberals are more likely to view governments as having more responsibility.

Moderates and conservatives see a bigger role for individuals and companies — especially small ones.


Americans’ belief in individualism likely plays

a role in their sense of how much power

individuals have over company and

government policies and practices.

Core and some Inner Mid-level consumers

tend to question how much individuals can

actually achieve.

• They understand the scale of what

government intervention and corporate policy

can accomplish.

• While they continue to strive to do all that

they can themselves, they acknowledge that

individual purchasing has little effect

compared to other, more difficult lifestyle

changes.

WHO IS RESPONSIBLE FOR SUSTAINABILITY ?

Qualitatively, however, we see a more nuanced assignation of responsibility to

various institutions and actors

Core

I think government regulation plays the biggest role in moving towards sustainability, even more so than individual practices.

—Gen X, Core, male

Inner Mid-level

Politically, there are a lot of changes that could be made. Everyone can make a difference, but the people in power can make a bigger difference faster.

—Millennial, Inner Mid-level, female

Outer Mid-level

I fear that people aren’t catching on fast enough, that people will take the approach of “we’ll just see what happens” instead of being proactive and assuming that there is something going on and taking steps for the environment.

—Gen X, Outer Mid-level, male

PeripheryI believe the government should completely step out of the way.

—Millennial, Periphery, male

A Core consumer’s photo of their local food pantry where they volunteer


SUSTAINABILITY IN PURCHASING

More than a quarter of consumers claim that environmental and social

concerns impact much of their purchasing

Predictably, the Core and Inner Mid-level factor sustainability into their

purchasing the most. However, sustainability is an important consideration

for other demographic groups as well, especially Millennials.

26%

60%

35%22%

8%7% 20% 9% 4%

How Often Do Environmental/Social Concerns Influence Your Purchase Decisions?

22%

50%

31%

15% 9%

Increased Sustainable Purchasing in Past 12 Months

Always/ Usually

Always

Total Core Inner Mid-level

Outer Mid-level

Periphery

4-year trend from 2013 – no significant changes.SUST2017. Q9. How often are your purchasing decisions based upon your concerns for issues such as the environment and social . In the past year, how, if at all, has your purchasing of sustainable products changed? Base: Total (n=1500); Core (n=203); Inner Mid-level (n=449); Outer Mid-level (n=436); Periphery (n=228); Millennials (n=546); Gen X (n=369); Boomers (n=529); Kids <18 in HH (n=473); No Kids <18 in HH (n=1027); Liberals (n=413); Moderates (n=554); Conservatives (n=444); Women (n=790); Men (n=703)

Environmental/social concerns are more

important purchasing considerations for:

• Millennials (33% always/usually vs Gen X 23%

and Boomers 20%)

• Parents (31% always/usually vs 24% for those

without children <18 in the house)

• Liberals (36% vs Moderates 23% and

Conservatives 22%)

These groups are also more likely to say

they’ve increased their sustainable

purchasing in the past year:

• Millennials and Gen X (23% and 25% vs 19%

Boomers)

• Women (25% vs men 20%)

• Parents (27% vs 20% for those without kids)

• Liberals (32% vs Moderates 20% and

Conservatives 19%)

BCD CD D

Total Core Inner Mid-level

Outer Mid-level

Periphery


69%

28%

27%

22%

7%

29%

16%

14%

4%

16%

11%

10%

16%

16%

17%

11%

8%

6%

4%

10%

8%

Sustainability Information Sources Used in Past 3 Months

LEARNING ABOUT SUSTAINABILITY

More have recently sought sustainability-related information than 5 years

ago, with product labels and online being key sources

ANY SOURCE

Internet websites

Internet search engine

Social media site/app

Bloggers

Product label

Product company's website

Product company's advertisement

Product company's annual/CSR report

TV/Radio

Books/Magazines

Newspapers

Family member

Friend or colleague

In-store information

Retailer websites*

Govt agency (e.g., EPA, USDA)

Medical prof. (e.g., doctor, nurse)

Nutritionist, Dietician, Sports Coach*

Non-profit consumer advocates (e.g., EWG)*

Special interest orgs (e.g., Audubon Society)

Unsurprisingly, more Core

and Inner Mid-level

consumers have sought

sustainability information

recently, and they use more

sources than less engaged

consumers.

Millennials are much more

likely than older generations

to have sought out

sustainability information,

especially online.

79% of Millennials have

sought out sustainability-

related information from any

source in the past 3 months.

This is significantly higher

than Gen X’s 66% and

Boomers’ 58%.

48% Net Online

42% Net Package/ Company Communications

26% Net Traditional Media

25% Net Family/ Friends

23% Net Retailer/ In-store*

14% Net ExpertAuthority*

14% Net third-partyOrganization*

4-year trend from 2013: Base: Total age 18-69 – 2013 (n=1841); 2017 (n=1456). * No 4-year trend available.SUST2017. Q16. Which of the following INFORMATION SOURCES have you used in the PAST 3 MONTHS to learn about SUSTAINABLE PRODUCTS/SERVICES OR COMPANIES? (Please select all that apply). Base: Total (n=1500); Millennials (n=546); Gen X (n=369); Boomers (n=529).

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KEY SUSTAINABILTY ISSUES ON THE HORIZON

Many of the areas to which consumers are turning their attention include

issues where multiple zones of responsibility overlap

Labor issuesForced labor and transparency of sourcing

(particularly seafood)U.S. economic need for imported labor

Living wages for retail & food service workers

Fair trade for global farmers

WasteFood waste while some face food scarcity

Environmental impact of trash

Industrial & agricultural waste

Lack of recycling & composting programs in rural areas

GMOs & glyphosateImpact of GMOs on plant diversity

Potential impact of glyphosate & GMOs on human health

Glyphosate resistance in mutated plants

Monoculture and deforestationEcosystems less resilient to climate change

Destruction of rainforests

Critical species endangered

Palm oil production

Cultural & social upheaval in deforested areas

Water quality, scarcity, and rightsContaminated tap water and public water sources

Bottled water & trash production

Water rights on indigenous lands

Water scarcity & unequal access

The impact of meatImpact of hormones/antibiotics on human health

Requires more water, land, and energy resources

Animal welfare and treatment

Impact of meat production on climate change


DEFINING TRANSPARENCY

Consumers associate transparency with how authentically committed a

company is to ethical action

Transparency is more than a sustainability checklist.

Consumers want to understand how a company addresses the 4 zones of responsibility, including:

• Personal — what ingredients are in a product and why? Where do they come from?

• Social — who is making the product, where, and how they are treated?

• Economic — why are certain business practices and goals prioritized over others?

• Environmental — what is a company doing to conserve and protect natural resources?

However, naming a transparent company is difficult for most consumers, even in cases when they have already talked about companies that they know and trust, pointing to a communications gap.

of consumers would like companies’ sustainability practices to be more publicly visible (4 or 5 on 5pt scale)

No 4-year trend available.SUST2017. Q14. NEXT, we are going to ask you some questions about "SUSTAINABLE PRODUCTS. "How strongly do you agree or disagree with each of the following statements? Top 2 Box – 4 or 5 (strongly agree) on 5pt scale. Base: Total (n=1500)

69% Personal

Responsibility for one’s own (or one’s family’s) needs and desires

Social

Responsibility for the well-being of others, including

animals

Economic

Responsibility for the economic well-being of one’s town, region, or

nation or for businesses one supports

Environmental

Responsibility for the well-being of the planet

at both the local and global level


More sustainability-minded consumers

tend to care more about business practices

related to the “greater good” than others —

animal welfare, environmental impact, and

community involvement.

All segments want to know about quality

control basics and sourcing — especially

country of origin.

SHOPPING FOR TRANSPARENCY

Besides ingredients, consumers want transparency around quality control,

animal welfare, and labor practices

60%

46%

44%

45%

32%

20%

38%

29%

18%

42%

10%

15%

13%

11%

Business Practices About Which Companies Should Be Transparent

Ingredients in a food/bev product

How products manufactured to assure quality, safety standards

Product/service problems, issues, recalls

How animals used in products are treated

Actions taken to reduce impact on env.

Whether company gives back to community

Where product ingredients are sourced

Where products are manufactured/ assembled

Locations and types of suppliers used

How employees are treated

Diversity of workforce

Who owns company

Charities/causes the company supports

Political party/politicians company donates to

83%Quality control

72%Social/

environmental responsibility

63%Sourcing

47%Labor

practices

32%Ownership/ affiliationsNo 4-year trend available.

SUST2017. Q101. To earn your trust, about which of the following business practices should a company be open and honest? (Please select up to 5 items that are most important to you). Base: Total (n=1500)

“Ben & Jerry's has a reputation of treating their employees well, being very open about company policy, and very much involved in the health and environmental space. Those are the kinds of things I like to see.” —Outer Mid-level, Gen X, male


49%

45%

33%

31%

29%

27%

26%

17%

16%

14%

Total

Packaging is the primary way consumers interact with

information from a CPG company and thus is the most

convenient way for them to learn about corporate

responsibility efforts. However, the company website is a good

backup, especially if claims are verifiable from other,

independent sources.

COMMUNICATING TRANSPARENCY

Ideally, consumers want a company’s responsibility efforts stated on-pack,

the primary area where they see and assess claims

Capital letters indicate statistically significant differences among the indicated groups at the 95% confidence level.SUST2017. Q103A. How would you prefer to learn about companies' policies and practices related to corporate responsibility issues like sustainability, social issues, labor issues, charitable giving, or community involvement? (Please select all that apply). Base: Total (n=1500); Core (n=203); Inner Mid-level (n=449); Outer Mid-level (n=436); Periphery (n=228); Millennials (n=546); Gen X (n=369); Boomers (n=529).

Preferred Sources of Information About Corporate Responsibility Efforts

On-product packaging

Company website

From the news media

From third-party orgs (e.g., Consumer Reports, Humane Society)

Through social media

From retailers or stores

Through advertisements

Special reports from company (e.g., quarterly report)

QR code on pack to scan for more info

Emails from company

Despite preferring companies to communicate sustainability claims

on-pack, consumers claim to be skeptical when they see them

“I never read food labels because they’re deceptive and confusing. I look for seals — Greenguard is one of them — but I'm not sure how strict they actually are. Products can just be labeled that way without anything behind them.” —Core, Gen X, male


64%55%

53%53%

44%44%

40%37%36%

32%25%

23%23%

20%18%18%

16%16%16%15%15%

14%13%

22%19%16%15%13%13%9%10%11%9%6%5%6%5%5%5%5%4%5%5%4%4%4%

USDA Organic

Energy Star Qualified

Certified Kosher

Fair Trade

Non-GMO Project Verified

Certified Vegan

American Grassfed

Certified Humane

Animal Welfare Approved

Certified Pesticide Residue Free

Rainforest Alliance Certified

Certified Halal

Certified Carbon Neutral

Food Alliance Certified

Transitional Organic

Fair for Life

GAP 5 Step Animal Welfare Rating System

FSC Certified (Forest Stewardship Council)

MSC Certified (Marine Stewardship Council)

Oregon Tilth Certified Organic

ASC Certified (Aquaculture Stewardship Council)

Certified B Corporation

Demeter/Certified Biodynamic

66%79%

31%65%

68%33%

70%74%

77%75%

62%34%

60%59%61%

58%62%

57%58%

51%58%

53%55%

27%38%

12%17%

35%15%

26%38%

36%40%

20%13%

22%22%

27%23%

28%26%26%

24%23%22%23%

PACKAGING CONTENT

For food and beverage, the most influential certifications concern pesticides,

animal welfare, fair trade, and GMOs

SUST2017. Q64A. There are many types of claims, certifications, and seals that appear on product packaging. For each claim, certification, or seal below, please tell us which answer best describes your experience with it. Base: Total (n=1500). Q64B. Here are all the claims, certifications, and seals you indicated you knew a bit about. For each one, please indicate how it affects your purchasing when you see it on an item you're considering. Base: Know a lot/little about certification (n varies from 202-951).

Know a lot

Know a lot/ little about it

Much more likely to purchase

Much/somewhat more likely to purchase

Certification Engagement% who know a lot/little about certification

Impact on PurchasingAmong those who know a lot/little about certification


PACKAGING LABELS

Sustainability-minded consumers scrutinize a wide amount of information

on packaging labels, beyond just certifications

Sustainability information is part of a constellation of other quality cues

that consumers consider when they approach products.

Consumers weigh sustainability cues with others, including taste, health and wellness needs, price, and freshness.

While sustainability consumers often look first to third-party certifications,

they interpret these certifications through brand and company narrative.

They look for narratives that back up certifications and claims with details on the who, what, where, when, and why behind the product.

Narrative elements not associated with a certification — such as charitable giving, involvement within a community, or a specific mission — can be compelling points of evidence underlying a strong sustainability and transparency story.

Only a few certifications speak for themselves. Most require further explanation in product narratives.

• The B Corp certification, for instance, reflects strong credentials for employee welfare,

environmental stewardship, and transparency — all appealing to engaged sustainability

consumers. Even Core consumers, however, are often unfamiliar with it and what it

represents.

I don’t know what some of these labels mean, but it looks like they are really making an effort. Non-GMO is something that I generally look for, and I certainly appreciate that it’s 100% wind power. I’ll have to look into what B-Corp and TestPledgemean. —Millennial, Inner Mid-level, female


CoreInner

Mid-levelOuter

Mid-level Periphery

Ingredients & Nutrition

Panel

Short ingredient list

No “chemicals”

No excess sugar

Claims & Certifications

No hormones & antibiotics

USDA Organic

Non-GMO

Charitable giving

Fair trade

Ethically raised animal (e.g., pasture-raised, grass-fed)

Materials

Recyclable

Made of recycled/renewable resources

Reusable

Biodegradable

Minimal/non-existent

PACKAGING PRIORITIES

Consumers look for a variety of positive cues in packaging materials when

they are purchasing products

Typical Priorities Toward Packaging by Segment

Just as the purchase criteria are additive (e.g., convenience is important not only to the Periphery), the priorities each segment places on packaging labels and materials accumulate the more involved a consumer is in the World of Sustainability.


SUSTAINABILITY IN FOOD AND BEVERAGE

What qualifies as a “sustainable” food or beverage varies depending on

one’s sustainability orientation

For less engaged consumers in the Outer Mid-level and Periphery,

healthy food is seen as inherently more sustainable.

• Fresh, less processed foods — especially organic — are seen as “better for me, better

for the world.”

For more engaged consumers, standards are higher.

• The most sustainable foods are those one has grown oneself, and beyond that, whole

foods — preferably domestically produced — that one processes and cooks oneself.

• Processed food in general is seen as less sustainable, and these consumers look for

detailed claims and certifications to determine a packaged product’s health value,

environmental effects, labor issues, and company values.

Consumers across the board see locally sourced food and beverage as

more sustainable, as well as fresher and healthier.

• However, sustainability orientation still influences how likely one is to actually seek out

and pay more for local products.

I feel that if you really want to

support sustainability, you either

have to plant your own food or

buy local.

—Inner Mid-level, Millennial,

female

A Core consumer’s backyard garden with a variety of herbs and berries, maintained with a passive water collection system.


71%

61%

59%

58%

57%

54%

52%

52%

52%

48%

47%

44%

41%

41%

40%

40%

30%

27%

Total


More engaged consumers value sustainable food/beverage attributes more,

but so do Millennials and women

Free of potential toxins

Supports US economy

Good animal welfare practices

Fair treatment of workers/employees

Minimizing pollution of air, water, soil

Minimizes food waste

Conserves natural habitats, resources

Supports local economy

Good pay/benefits for workers/employees

Natural agricultural methods/practices

Supporting small companies

Minimal/eco-friendly packaging

Fair trade sourcing of products/ingredients

Organic ingredients/production practices

Small carbon footprint

Involvement/support for social causes

Knowing who owns the company

Supporting large companies with big impact

Capital letters indicate statistically significant differences among the indicated groups at the 95% confidence level.SUST2017. Q43A_1. For each attribute below, how important is it to you when deciding which FOOD AND BEVERAGES to purchase? Base: Total (n=1500); Core (n=203); Inner Mid-level (n=449); Outer Mid-level (n=436); Periphery (n=228); Millennials (n=546); Gen X (n=369); Boomers (n=529); Men (n=703); Women (n=790).

Importance of Sustainability in Food and Beverage PurchasingTop 2 Box — 4 or 5 (very important) on 5pt scale

Significantly Higher Among…

CoreInner Mid-level

Outer Mid-level

Periphery Millennial Gen X Boomer Men Women

(A) (B) (C) (D) (E) (F) (G) (H) (I)

BCD CD D

CD CD E E

BCD CD D H

BCD CD D E E

BCD CD D H

BCD CD D H

BCD CD D

BCD CD D

BCD CD D

BCD CD D G G H

CD CD D

BCD CD D H

BCD CD D G

BCD CD D G G

BCD CD D G H

BCD CD D G H

BCD CD D G G

CD CD FG G


I like this Bob’s Red Mill Coconut Flour. One of the main things I like to see is this organic USDA stamp. I also like that it’s an employee- owned company, so it’s not so corporate. It feels good to support a good small company.

—Periphery, Millennial, male


Sustainability-related attributes appear to be more important to younger

consumers than older ones

Although Boomers are more likely to be Core or Inner Mid-level

consumers, they are less likely than Millennials in general to rate

sustainability attributes as important to their purchasing — or to be

willing to pay as high a premium for them.

Why is this?

• Millennials have grown up with sustainability as a civic virtue and place more social

responsibility in individual purchasing than Boomers

• Millennials are a bit more likely than Boomers to define sustainability in terms of

personal health. This suggests that they are more likely to see sustainability-related

attributes as quality cues in the mindset of “better for me, better for the world.”

• Millennials tend to be less driven by price, brand, and familiarity than Boomers in their

grocery shopping and more influenced by product attributes.

• Despite their attitudes toward sustainability, it seems that Boomers are less willing to break out of established habits related to brand preferences and discounts.

My priorities are: it has to taste good, and I do think

about impact, but it also has to be affordable. I

mostly shop at the grocery stores, not so much the

farmers market. They’re fantastic, but the idea of

paying $4 for a tomato is crazy to me. —Inner Mid-

level, Boomer, female

For me, how we eat is very important, so I don’t feel like I’m wasting money getting more expensive things. I’m looking for a good price, but if I sacrifice myself and get cheap food, in 2-3 years maybe I’ll get sick.

—Inner Mid-level, Millennial, female

Millennials value sustainability attributes across the board…

But Boomers less so.


Consumers tend to be focused on other priorities when dining

out, making sustainability lower on their priority list.

• Even Core consumers perceive dining out to involve sacrificing some of

their standards for the sake of others’ preferences, convenience, price, or

availability.

However, consumers do associate sustainability in dining out

with farm-to-table restaurants and see it more as a quality cue.

• Good animal welfare, local sourcing, sustainable agriculture/production —

these have all become de rigueur for upscale restaurants.

Sustainability does have a role to play in convenience and

value-oriented food service, however.

• QSR (Quick Service Restaurants) and fast casual customers value

sustainability in those restaurants similarly to food and beverage overall.

• However, fast casual customers appear to expect more from those

restaurants than from QSR, rating sustainability criteria higher in importance

than for QSR.

SUSTAINABILITY IN FOOD SERVICE

For all but the most engaged, sustainability remains a bonus and a quality cue

when consumers dine out

Personal

Responsibility for one’s own (or one’s family’s) needs and

desires

Social

Responsibility for the well-being of others, including

animals

Economic

Responsibility for the economic well-being of one’s town, region, or

nation or for businesses one supports

Environmental

Responsibility for the well-being of the

planet at both the local and global level


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