New report confirms ESG impact on business outcomes…

The consumer’s growing concern about sustainability and the environmental impact of food products is translating into behaviors on the path to purchase. A new study released by Glow, a Nielsen IQ research partner, affirms that ESG performance is impacting brand switching, preference and purchase.

• Glow reported their calculations that a brand with $500 million in sales and a Social Responsibility Score (SRS) that is 10 points higher than a similarly sized competitor, can expect to secure an additional $25 million in revenue over three years, on average.  

Glow’s study verified consumers are exercising choice by “shedding” brands that don’t meet their sustainability expectations, while also moving their allegiance to products that are more closely aligned with their values. In sum, consumers are increasingly regulating their purchases to operate in sync with their beliefs about environmental responsibility.

Sustainability driven brand switching – how much and which categories

The percentage of consumers switching brands based on their assessment of devotion to more sustainable behaviors and policies ranges currently between 30 and 40 percent. The categories where switching is occurring most often include:

Meat and seafood

Pantry (pasta, rice, condiments, oils)

Frozen

Pet

Bakery

Dairy

Don’t ignore the business driver – communications

The research also flagged that some brands aren’t getting the sustainability performance recognition they deserve, and thus aren’t seeing an impact on business outcomes. This happens because their environmental story isn’t breaking through. Glow’s report is a rallying cry for food brands to work harder to close the gap between rising consumer expectations of ESG commitments and actual progress towards credibly fulfilling and activating the brand’s sustainability story.

• Emergent’s recent Brand Sustainability Solution analysis of 25 food, beverage and lifestyle brands and retailers’ sustainability readiness, showed an almost universal weakness tracing back to sub-optimal communications efforts. Sustainability communications outreach to close the loop with consumers is missing or tepid. Read: not effective.

Glow’s study revealed the top five channels where consumers prefer to learn about ESG commitments:

1. News media
2. Product packaging
3. Advertising
4. Brand web site
5. Social media

News media scored highest because of its perceived credibility as a trusted third-party source. Packaging also tracked high given it’s a shelf-ready, shopper-facing place to get information. The most important on-pack claims to consumers were animal welfare, environmental impact, social responsibility and sustainable packaging.

According to Glow:

• Nine out of 10 consumers believe it is important for brands to act responsibly in their environmental policies and actions.

• One out of two consumers say they have changed brands based on their perceptions of ESG performance.

• 78% of consumers say brand purpose and values play an important role in their purchase decisions.

• 79% claim they are more loyal to brands with a clearly defined higher purpose.

• 85% believe it’s important for companies to act responsibly about climate impact.

• One in five rank ESG and sustainability in the top three purchase considerations alongside price and quality.

• Despite the challenges of inflation, sustainability commitments also provide a compelling reason not to trade down, especially among Millennial consumers.

Glow’s study analyzed the impact of 13 different ESG characteristics on consumer behavior. In the food category the most important considerations are:

1. Reducing emissions and climate change
2. Respecting natural resources (like water)
3. Protecting wildlife and eco-systems.

This study verifies what we at Emergent have been reporting now for over a year, that sustainability and environmental policies and commitments have formed one of the most important foundations of marketplace competitive advantage for the foreseeable future.

• Consumers are voting their preferences in the checkout lane and make decisions on the brands they prefer based on their perceptions of sustainability readiness.

When sustainability communications is just a quarterly progress report

Importantly, strategic communications cannot be underestimated in its relevant role to close the deal and convince consumers. And this goes way beyond regurgitating complex and often confusing scientific data points. Creative outreach works to connect investments in sustainability readiness progress with audiences most likely to act on that information. The absence of strong communications usually occurs when the sustainability team is not connected to the marketing team, or it operates as a stand-alone silo and isn’t integrated into the main go-to-market strategic plan.

• The Glow study validates that sustainability commitments, policies and performance isn’t just “talk” as far as consumers are concerned. It is impacting the “walk” of what goes in the shopping cart and gets purchased.

In our view, when organizations understand and act to secure the business benefits of sustainability investments, we will see more meaningful progress on the path to emission reductions and a healthier planet. And businesses will see consumer reciprocation in the form of enhanced brand preference, purchase intent and product movement. Sustainability is a business builder.

If you believe your sustainability strategies and communications could use fresh strategic eyes and a creative lift, use this link to start an informal dialogue around your questions.

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We’re nearly out of time to slow emissions juggernaut…

The moment has arrived for the food and beverage industry to upgrade sustainability performance and answer System 3 (supply chain) emission challenges. The incentive to act now: bottom line business growth benefits can be secured through authentic, credible strategies to fully execute a climate-responsible transition plan. Later in this post we will reveal the number one barrier to achieving business benefits from sustainability investments.

Why now?

According to the latest alarm bell report from the U.N. Intergovernmental Panel on Climate Change, we’re on pace to burn through our remaining carbon budget (500 gigatons) by 2030, potentially placing the Paris Accords’ 1.5˚ Celsius ceiling beyond the world’s grasp. The U.N. states outcomes of unabated global warming could be catastrophic with every proportional degree of warming past the Paris Accords threshold.

The impact of our fossil fuel economy has already transformed the planet at a pace unrivaled in human history. The U.N. report characterizes carbon mitigation efforts to date as “woefully inadequate.” As such U.N. Secretary General Antonio Guterres is demanding that developed nations such as the United States eliminate carbon emissions by 2040, a decade earlier than the rest of the world.

• More than 40 percent of cumulative carbon emissions have occurred since 1990. After decades of disregarding the warnings, delaying policy changes, or making the tough choices to curb emissions from our industrial food system, the window to solve the climate crisis is closing.

Past the Paris Accords ceiling, impacts get extreme

Left on our current emissions pace, scientists claim global temperatures could rise by 3.2 degrees Celsius by the end of the century. What would follow is melting arctic ice sheets that cause sea levels to rise by several feet, extinction of hundreds of animal species and displacement of millions of people from southern hemisphere regions no longer able to sustain an acceptable quality of life.

The issues are systemic in part because the world has shrouded itself in fossil fuel energy use and a food system churning out affordable proteins that come with a hidden yet steep environmental cost. Our current infrastructure supports buildings designed to use gas for heat. Cars and trucks for the most part remain gas powered. Public policy encourages the fossil fuel energy sector while struggling politically to invest in a more sustainable future.

• Energy industries double down now on fossil fuel source development
• China is on pace to add more coal-fired power plants
• Methane emissions compound as ruminant animal populations (cows, sheep, goats) grow to keep up with rising protein demands

In short, we find ourselves on a carbon-paved superhighway in the fast lane, zooming past the 1.5˚ Celsius off ramp – hurtling towards a point of no return, even though we face irrefutable evidence about the outcomes of not applying the brakes. Chaotic weather patterns, severe storms, wildfires, droughts, dwindling fish populations, the spread of infectious disease emerging from climate-disrupted biodiversity impacts – all indicators it’s time to summon the political courage to change direction.

Can the food and beverage industry help lead the shift to a sustainable future?

Yes.

If we muster the will and mettle to execute on pledges for change required to help the world reduce emissions by 50 percent over the next eight years. A recent report from Boston Consulting concludes emerging low carbon technologies in food creation give us the best chance of measurably reducing greenhouse gas from food production. Friederike Otto, Climate Scientist at the Imperial College London, recently said “We have all the knowledge we need. All the tools we need. We just need to implement it.”

An eco-system of regenerative agriculture commitments, adoption of emerging precision fermentation food technologies and efforts to minimize consumer eating patterns that favor ruminant animal products are needed to help curtail the food system carbon footprint. To the extent companies make assurances here and monitor performance against System 3 supply chain emissions, we have an opportunity to pull back from the brink of severe economic and social shocks pouring from a hotter planet.

• Business reasons for implementing these changes are compelling as consumers increasingly want to vote their sustainability values in the checkout lane. Sustainability investments can be good for business. However, there are barriers to overcome on the path to business benefit.

Silo-ization of sustainability programming

All too often we run across organizations in the food industry that inadvertently silo their sustainability investments by treating it as a department down the hall, cut off from other areas of the organization vital to making the investment payout as a business generator.

Sustainability is a strategic initiative the organization needs to answer from the C-suite level on down, not as a “right thing to do” effort, rather a business imperative the organization embraces as a core organizational mission and higher purpose. Sustainability executives and marketing teams should be working together to close the loop and inform all stakeholder audiences of carbon mitigation goals and milestones.

The #1 deficit in sustainability readiness performances is….

Since we launched the Brand Sustainability Solution platform in early 2021, Emergent has deployed an online Self-Assessment Questionnaire to help food, beverage and retail organizations better understand where they are on the path to sustainability best practices. Our database of self-assessment results reveals one consistent weakness across nearly all  company survey participants.

To achieve business benefits from sustainability ventures, integrated communications tactics must be employed to inform stakeholder audiences of what the company is doing to address sustainability challenges. In the absence of these strategic communications initiatives, brands can’t get credit for the investments they’re making or the improvements they’re realizing.

Thus, the loop is not closed with constituent audiences. Simply stated: sustainability performance is a brand preference driver in a marketing environment where consumers seek alignment between their beliefs and values and the brands that matter to them. All-too-often the sustainability team operates in isolation, and activity there isn’t integrated with marketing programs and assets that help customers of all segments understand what the organization is doing.

• This weakness has popped to the surface often enough that we are compelled to flag its importance here as “the missing link” to creating positive business outcomes from sustainability strategies.

Sustainability programs anchored to carbon footprint improvements can’t operate successfully in a vacuum. If we’re going to make the significant moves necessary to avoid condemning future generations to the invasive risks of a hotter planet, the entire effort must be a top-level priority for the company as a whole – with all hands-on-deck to help implement and communicate.

If you think your organization would benefit from an audit on sustainability readiness best practices, use this link to launch an informal conversation on evaluating the state of sustainability in your company. The solution set will invariably tap into everything, everywhere, all at once.

Download our emerging food tech education strategy guide…

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New website illuminates the changes and solutions ahead

The number of Americans who are passionate or concerned about sustainable choices in the food products they buy is rising. Rapidly. At the same time media are galvanizing around stories that report on the climate impacts from agriculture. These two conditions will fast-track the pace of change in consumer sustainability preferences and demands.

• We are headed towards a tipping point when recognition of the role our food system plays in environmental impacts will prompt mandates for public policy changes, food production improvements and more sustainable brand choices.

The time is now to prepare for sustainability readiness as media, influence and culture shifts coalesce to push consumer sentiment forward to tangible behavior changes. We believe this will substantially impact your business strategies in the coming decade.

Two converging issues: carbon footprint visibility and supply chain realities

Supply chain emissions are, on average, 11.4 times higher than operational emissions.

The growing corporate uptake on ESG performance measurement started with ‘low hanging fruit’ evaluations of operational emissions (Scope 1). Then advanced to confront energy use (Scope 2). However, supply chain lifecycle analysis (Scope 3) will unearth the most salient and vital conditions that impact an organization’s true carbon footprint – and thus inform the most meaningful mitigation progress targets. You can’t know where you’re going until you know where you are!

Industrial animal agriculture derived environmental impacts will become visible. In the food business, this is likely to influence brand and retailer decisions about your supply chain partners.

The food system reality check(mate)

Here’s relevant data that helps us understand why the significant cultural shifts are here.

• Agriculture generally is responsible for anywhere from 24 to 30 percent of total greenhouse gas emissions, more than all transportation systems combined.

• According to the United Nations, 14.5 percent of those emissions can be attributed to meat production. The impacts of raising livestock for food are far reaching – from ruminant animals producing methane to land degradation, loss of biodiversity and over-consumption of limited freshwater resources.

• Forty percent of the world’s available land is currently used for food production and of that, nearly 75 percent of it is dedicated to livestock farming. Rainforest conversion to livestock production is occurring at a shocking rate of an acre per second.

• Today more than half of Americans think livestock production contributes to global warming “at least a little.” Only one in four believe beef contributes “a lot.” And those numbers decline slightly for dairy production.

• However, awareness of these impacts is expanding and media attention on sustainability deficits and emissions in the food system are gaining momentum.

• Currently 67 percent of Americans eat meat daily or a few times a week. Yet nearly every study we see points to growing consumer interest in adding more alternative proteins and plant-based foods to their diet. The reasons for these dietary modifications are swinging from health to environmental concerns.

• The barriers to alternative protein adoption are price compared to legacy options, and taste compromise. Those two issues can be resolved by manufacturers through innovation, formulation improvement and cost reduction. As awareness of environmental impacts grows, adoption of new food sustainable categories will rapidly expand alongside it.

• Studies suggest a shift to alternative protein sources could reduce emissions by 92 percent compared to raising livestock for food while reducing land use by up to 95 percent.

• The United Nations warns we are running out of time before climate impacts and global warming exceed our ability to reverse it. At risk is the southern half of the earth and potential permanent loss of farmland rendered unsuitable for growing crops.

What does all of this mean to your business?

The time to get ahead of sustainability readiness best practices is here and now. Performance in this critical area creates important levers of competitive marketplace advantage. Why? Consumers are demanding sustainable choices. How this transition is handled strategically will have implications for future growth and brand relevance.

What brands and businesses need: guidance on sustainability readiness practices and support to level up improved strategies all the way through to the marketplace.

Today we announce brandsustainabilitysolution.com. Your online destination for information, thought leadership and support services to help meet and exceed consumers’ sustainability expectations in food, beverage and related retail categories.

• We invite you to explore and learn more about the Brand Sustainability Solution™ platform. There, you can sign-up for our free Sustainable Business Update™ and access our free sustainability readiness self-assessment questionnaire that will provide a quick snapshot of where your business is today on the readiness path.

What’s at stake? The future of your business, brand relevance and the planet itself.

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The one that knows the secret to sustainability success…

The stakes in 2022 are high. The marketplace victory could be substantial. Who will win the sustainability derby and emerge as the pet category leader in environmental readiness?

Never before has so much been at stake so quickly as consumer culture change pushes sustainability to the front as a core driver of marketplace competitive advantage. This is a tougher hill to climb because it’s not about legacy advantages such as company size or distribution or ingredient quality. The outcome may bring a new cadre of progressive brands that gain incremental market share while the deniers and laggards face brand equity and value proposition declines.

• It won’t be the biggest budget – this isn’t about balance sheet heft
• It won’t be the loudest – this isn’t about media tonnage
• It won’t be the fastest – this isn’t just a pole race

Why sustainability is a pet category game changer

The Pandemic has served as a catalyst to refocus consumer priorities on more meaningful issues and conditions that help protect the world around us as much as they benefit ourselves and our pets. This development is occurring amidst increasingly obvious global warming events and signs of escalating climate chaos. Consumer research shows a growing priority placed on brand sustainability performance. Underneath we find increased awareness that our food system, both human and pet, is a key contributor to greenhouse gas impacts.

• According to a recent study conducted by Emergent’s insight research partner Brand Experience Group, 66% of consumers today are either passionate or deeply concerned about sustainability. The consumer is already there. It’s time for the pet industry to answer this call to action.

Rapidly changing consumer sentiment is pushing sustainability commitments and policies to the forefront. Along with it is a form of shopping friction bubbling up because there’s no simple way to sort one brand from another on sustainability bona fides. Consumers want to know what a more sustainable brand choice looks like. Who will step forward with the right, credible, trustworthy story? Which retailers will surface to offer guidance on more sustainable choices in their stores?

It’s time for a new pet brand mantra anyway

For more than a decade the premium pet food business has been focused on a short list of competitive arguments around grain free, percentages of meat in the formula and the relevance of an ancestral diet. It’s time to begin a new conversation with pet parents that isn’t another rehash of the tropes that have been popular over the long tail of the pet food premiumization revolution.

Sustainability is a welcome departure to a new brand narrative, one that is values driven. It may also be a catalyst for a wave of product innovation that changes the ingredient complexion of the pet food industry. The recent joint venture announcement between Hill’s and Bond pet foods, a pioneer in precision fermentation technology, may presage the dawn of meat proteins that don’t originate with an animal, bird or fish. The sustainable ingredient story there will be unprecedented.

Where’s the beef?

Well, it’s on top of the list of carbon generators from ag sources. At 30% of global greenhouse gas contributions, agriculture is the number two worldwide contributor to global warming. When you look underneath the hood, you find that the top two sources of GHG from agriculture are beef and lamb production. It stands to reason that pet food has a job to do in raising the bar for improvements over time – both in promoting regenerative farming practices and sourcing from environmentally-responsible suppliers with a more sustainable story to tell.

The secret to sustainability success

Fly right.

The essential sustainability truth in pet food is revealed in the supply chain.

• Meat forward diets mean carbon impacts are embedded in the product formulation.
• Pet food makes up between 25 and 30% of the entire environmental impact of domestic meat consumption.
• Meat centric pet diets generate approximately 64 million tons of carbon dioxide, equivalent to driving 13.6 million cars for a year, according to Gregory Okin, a UCLA Professor who published an environmental impact study on pet food in the PLOS ONE Journal.

The road to pet brand sustainability readiness begins with a scientific, data-driven analysis of carbon footprint. From that foundation comes the ability to establish science-based mitigation and improvement targets over time. It’s important to note that every brand in the business faces similar sustainability challenges. The advantage goes to those who will do the science-based analysis to understand where the business is today before creating the roadmap for where it will go tomorrow and beyond.

The science-based approach helps brands avoid the trap of greenwashing by bringing data informed benchmarks and commitments. This reality benchmark in the sustainability conversation provides the brand with a credible, trustworthy platform on which to build its narrative. Invoking sustainability claims without the science assessment, knowing the challenges exist in the supply chain, is risky territory. Media and consumers are getting smarter about what constitutes credible moves to improve sustainability readiness vs. less genuine apple-polish style messaging.

Who is going to be the first with carbon footprint labeling?

Granted this is a new conversation to start with pet parents. Just as consumers may not fully understand what the protein percentage numbers on a bag truly mean, they may also lack deep knowledge of carbon scores. Nonetheless, when a brand anchors its narrative in real researched targets, it gains immediate cachet for bringing new belief points to the stage.

The initial footprint statement is likely to be aligned with standards and commitments for change over time, so the brand users know what the company is planning for improvement. No one expects a brand to be perfect right out of the gate. No brand will be for that matter. However, the transparency and clarity delivered will measurably advance the brand’s position as “the more sustainable choice.”

Whoever grabs first-mover status here is likely to be a perceptual and voice leader in the conversation around pet food sustainability. We can imagine the remarkable anchor this will create for storytelling at Global and Superzoo, especially when you can establish a unique state of the art for sustainable practices in the industry.

Anatomy of a pet brand sustainability winner

The crown for sustainability leader will likely pass to the pet brand that steps in with the greatest integrity and authenticity.

• Begins with science-based carbon assessment and data informed mitigation targets.
• Grounded in insight research that reveals the areas of sustainable performance that matter the most to brand users.
• Backed by infrastructure to properly measure the business impacts of sustainability investments.
• Supported with a robust communications platform to tell the brand’s sustainability bona fides to key consumer and stakeholder audiences.

If you think sustainability matters in the year ahead to competitive advantage in the pet brand market, we would invite a conversation to discuss how we can help build your sustainable brand platform and story. Use this link to learn more in our Brand Sustainability Solution program guide.

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Analysis reveals aspirations may mask reality

A summary analysis of recently completed sustainability readiness questionnaires has revealed a measurable disconnect for participating brands between their sustainability activity and authentic performance. Based on results scoring, brands responding to Emergent’s initial questionnaire routinely over-estimate current sustainability readiness conditions by an average of 25%, ahead of a reality-check discussion to pressure test the survey responses.

The first step in Emergent’s Brand Sustainability Solution program starts with answers to a Sustainability Readiness questionnaire. It is designed to establish a baseline understanding of where a brand or business currently sits on the readiness pathway.

The Sustainability Readiness questionnaire self-evaluation process is focused on four key areas of sustainability performance:

1. Scientific, data informed review of carbon footprint and Lifecycle Analysis (LCA)
2. Consumer insight research to determine what areas of sustainability solution and commitment are most important to brand consumers
3. Establishing metrics to track business performance and outcomes of sustainability investments and commitments
4. Marketing communications strategies and tactics to tell the brand sustainability readiness story to consumers and relevant stakeholders

Emergent analyzes the questionnaire responses and produces a readiness scoring report for review with the individual or team submitting the evaluation. Invariably through more detailed conversation around outcomes and existing company behaviors, policies and mitigation activities, a different picture begins to emerge!

Aspiration can skew reality

Sustainability is now one of the most significant transformational strategies impacting brand communication and business growth. It is a key driver of competitive marketplace advantage. Why? Because over 66% of consumers now care deeply about more sustainable choices in the products they buy. People have become aware of the connection between food production, food ingredients, and potential negative impacts on the environment.

As companies prioritize sustainability and seek to answer this cultural shift in consumer sentiment, the priority to make performance claims can at times color actual readiness status. The Brand Sustainability Solution process is designed to determine quantifiable carbon targets, mitigation policies and develop solutions to truly walk the walk that supports credibility when talking the sustainability talk.

A recent investigative news report on McDonald’s sustainability misfires reveals why the authentic baseline carbon footprint assessment and related mitigation policies are so important to avoiding the possibility of greenwashing risks and scrutiny.

Corporate enthusiasm for claiming sustainable bona fides at times can obscure the correct and proper evaluation of specific actions the company must undertake to manage its carbon impact, evaluate resource consumption alongside energy use, and track backwards through the supply chain.

You can’t know where you are going until you know where you are

The challenges begin at the front door of science-based, data driven carbon footprint analysis that often remains untouched and unfunded on the to-do list. It isn’t possible to verify the company’s current readiness state or to establish quantifiable benchmarks for improvement over time without this review. Establishing baseline sustainability performance measurement will inform every aspect of readiness and the optimal brand communication that follows it.

More often than not, we’ve found that brand sustainability assessment is limited to low hanging fruit solutions such as improved packaging or reduced energy use. Most of the significant sustainability challenges exist in the supply chain, where food ingredients often deliver an outsized climate wallop. How come?

Agriculture is the second largest source of greenhouse gas (GHG) in the environment and the largest user of land and water resources. Within the snapshot of agriculture’s impact on climate, raising livestock for food is by far and away the highest GHG contributor. It is led by ruminant animals including beef, lamb and dairy in the form of cheesemaking. The combination of the animals themselves combined with re-purposed land use, natural resource over-consumption and raising crops to feed them, all coalesce to deliver excessive levels of highly toxic methane gas and nitrous oxide.

Regenerative farming practices that work to sequester more carbon and the development of non-animal protein creation technologies such as plant or microbe-based meat and dairy solutions, can help diminish the overall impact. But only when you know what it is you’re trying to reduce over time.

Two major culprits in aspirational assessment

Emergent’s study revealed two other hotbed areas of over-zealous sustainability performance evaluation. First and foremost is brand communication. It is the easiest lever to pull, one that can quickly get ahead of credible sustainability readiness when the messaging isn’t grounded in the science-based analysis of carbon impact and related improvement targets. Brands routinely reward themselves for getting ‘out there’ with sustainability storytelling, that may inadvertently invite media and consumer blow back when it isn’t anchored to authentic mitigation performance.

Right behind story is establishing the baseline infrastructure for measuring sustainable business performance. Investments in sustainability improvements should be tracked against business outcomes. This is the only way to know if the sustainability readiness platform is functioning fully and correctly. It is important to note that sustainability is ‘aging out’ of traditional CSR, and rapidly evolving into ESG – hence a part of business performance. The C-Suite must be involved in sustainability programming to ensure the right level of true organizational commitment.

We know consumers care deeply about sustainable choices. They are also getting smarter about what separates empty claims vs. substantive behaviors and policies that are well-executed. We have a proven, verified link now between optimal sustainability readiness strategies and competitive marketplace leverage that results in market share and volume growth. Integrating business measurement into the game plan is vital to assessing how well the entire sustainability strategy is progressing.

Fly right to reap the benefits

Transformational change has already occurred. We are living in the midst of a culture shift that is demanding companies step up to make improvements in their sustainability policies and standards.

When grounded in science and driven by informed communications strategies that help brands gain credit for their efforts, brands and businesses will out-perform the competition while establishing leadership in an area that will impact consumer preference for the foreseeable future.

If you’re interested in assessing where your business is today on sustainability performance and where it could go tomorrow with the optimal readiness program, click HERE to take the free Brand Sustainability Readiness questionnaire. The scoring and analysis are provided at no cost.

We promise a revealing, interesting and informative conversation that could open a new chapter of growth and prosperity for your brands in the year ahead.

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Early adopter behavior driving the marketplace…

Emergent appreciates our growing CEO and C-suite readership. Our goal is to provide meaningful trends analysis and strategic guidance through the Emerging Trends Report. We are introducing a special series – the CEO Bulletin – intended to inspire new thinking on organization planning and strategy. Should you have a topic you’d like us to cover – drop us a note. Your comments and feedback are always welcome.

Sustainability will be the most important strategic consideration for your company in the coming year, and Higher Purpose will be a key point of differentiation that helps move your performance in the marketplace.

Here’s why.

Sustainability is no longer a tertiary, benign or merely aspirational construct. This strategic imperative is connected to the health and wellbeing of the planet on which we live. Early adopter consumers see conscientious consumption as their flag and are empowered to signal to the world around them that climate-responsible products are their first choice. Half-baked solutions and absence of Climate Footprint and Life Cycle Analysis fundamentals that guide mitigation metrics will be exposed for all to see. These influential consumers are driving expectations, preference and marketplaces.

Being responsive to their Sustainability concerns isn’t just the “right thing to do” it is a source of competitive advantage and a critical point of leverage on the path to growth in marketing, distribution and sales leadership.

• Imagine the friction consumers are encountering right now because it’s nearly impossible to sort which product is a more sustainable choice at retail. The consumer’s priority is once again ahead of brand performance in the marketplace. Who will be first with the most? How will sustainability impact labeling and retail navigation?

When cultural changes take root, it presages larger shifts in sentiment – leading to momentum deviations that are an immutable guide to strategic investment. What should be at the forefront of your thinking now is the very real potential of ending up on the wrong side of this sea change. Not because the word sustainability is left out of your brand communication lexicon, rather because it is not fully, correctly built out, thus creating real vulnerabilities around greenwashing. People will notice, experts will weigh in, influencers will influence. There will be winners and losers in the “Sustainability Battles”.

Moreover, we have data and proof that fully realized sustainability strategies lead to share growth and sales leadership in your respective category. Why? The same rule applies here: because consumers care about it and support businesses that authentically walk the walk of climate impact mitigation alongside business strategies that clearly, emphatically support authentic sustainability practices. Consumers are watching. Early adopters are showing them what to do. This creates a steamroll effect that leads to category upheaval as smarter brands overtake the laggards and pretenders.

• Recent research conducted by IRI and the NYU Stern Center for Sustainable Business indicates consumer uptake of sustainability marketed products has remained strong despite the Pandemic. Sustainable brands outperformed conventional alternatives across 36 categories in 2020. The segment achieved 16.8% of total purchases in a banner year for CPG sales. 

Think differently

Sustainability practices should lead business strategy and will have a profound impact on new product launch initiatives. This isn’t just a corporate commitment, it’s an anchor at the street level to differentiation, meaning and value and must be fully baked into marketing planning all the way through to execution.

• What will your brand voice be on this? What evidence can you provide to the early adopters who know great practices from anything less than that? How is this integrated into your story and narrative? You already know that story-well-told is where all of this begins and takes root.

In a recent report at Pet Food Industry magazine, one quote-able source nailed the conditions squarely:

“Clean label will move into sustainability — how are pet food manufacturers being more conscious of the environment?” said Tammi Geiger, marketing manager U.S. for Oterra, a supplier of natural colors. “How are they producing their products so they are having a positive impact on the planet and even communities? Manufacturers will be asked by their customers to tell their production story and they will therefore put pressure on their ingredient vendors to have sustainability as a main focus. This can be a way to differentiate from other brands as well.”

Purpose is a marketplace imperative

You can see the pattern emerging. Purpose, beliefs and meaning equate to value and preference. The trouble with Purpose is you can’t bolt it on as a marketing message construct. Purpose needs to emanate from why your company exists, what you are doing to empathize with user needs  and how are you adding value to their quality of life in tangible ways.

Sustainability and higher purpose are family, joined forever in a union that showcases how people have changed, what matters and the real drivers of competitive advantage that goes way beyond the features and benefits layered into your products.

You need:

Purposeful brands

Purposeful labels

Purposeful shopping experience

Purposeful supply chain

Purposeful organization

Purposeful employee policies

Purposeful corporate soul

There is a natural tendency to lean in on technology and better mousetrap thinking. To be sure product quality and innovation are key to brand and business health. But the truth of the matter is brand beliefs, values and higher purpose matter even more on the path to success. The world has changed, and you must change with it to remain relevant and resonant.

The chin you lead with

Now more than any other time in the history of business and marketing strategy, uniqueness and differentiation are key to elevating your business above the vast degree of sameness and similarity that exist category to category, retailer to retailer.

Higher Purpose is a differentiator!

This is how your unique company DNA and value system gets wired into the brand narrative in a manner that’s own-able for your organization. It manifests in how your business operates to meet the life-journey aspirations of your customers. Note: you have to truly care about the welfare of the people you serve to make this work.

Our Brand Sustainability Analysis process is designed to optimize this requirement for the very reason it is aligned with consumer preferences and behaviors. The early adopters you encounter are the ones creating influence that drives momentum changes. What becomes popular, noticed and sought after should factor in to your strategic thinking.

• Purpose is a center-of-bulls-eye concept that works seamlessly into the sustainability recipe as a component of business and brand value.

If fresh perspective and assessment of your sustainability and purpose bona fides would be helpful to your planning, use this link to open an informal conversation with us about your needs. We promise a thorough, complete analysis of competitive advantage at a time when consumer behaviors are changing the game around you.

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