…It isn’t the supply chain or manufacturing

Imagine an out-of-control cruise ship bearing down on the sunny Island resort dock at 30-knots full speed with no captain at the wheel. 200,000 tons of steel coming in hard to shore, kicking up a gigantic spray of water behind it. There you are at the coffee shop in front of the pier, enjoying your latte while waiting for the ship to arrive. You watch in horror as this gigantic floating hotel with 4,000 souls aboard is barreling right for you, the bow getting taller and taller in the closing moments. You freeze – unable to move as the disastrous, tragic end draws near – paralyzed by _________.

The word is fear.

You didn’t see it earlier, but painted on the bow in bright green, it’s the USS Climate Chaos coming in hot …literally.

Sustainability at one time was more leisurely focused on clean energy use and efforts to improve, say, recycling and clean energy from the manufacturing plant to customer warehouses. The annual report would recite the efficiencies and efforts made to use less fossil fuels in the daily routine of manufacturing, shipping and commerce.

But wait; more recently we learn that greenhouse gas levels, despite the economic shutdown caused by the pandemic, have reached their highest concentration in 4 million years and shows no signs of slowing down. The planet is rapidly warming. Climate impacts start to get closer and closer to home through unrelenting wildfires, droughts, super-storms and wild weather shifts. You can feel it and see it now.

Then as if on cue, along comes a series of reports that reveal the incredibly significant relationship our food system has to climate impact, now the second leading contributor of global greenhouse gas production at 24%. Consumers who are already increasingly aware and sensitized to big societal issues like climate trouble, begin to realize there is a relationship between their food choices and climate outcomes.

The word sustainability acquires new gravitas and deeper meaning as it is redefined to signal climate threat from supply chain actors like livestock production and soil-damaging industrial agriculture practices.

• Who knew it took 1,600 gallons of water, massive land resources and two years to produce one 16-ounce steak?

• Why didn’t we know before that the world’s largest carbon sink, the Amazon rainforest, is disappearing at the rate of an acre per second due to repurposing the forested land for animal agriculture and crops to feed them?

Sustainability may now be the most popular term in modern marketing

Yet it is still vastly underserved as companies wrestle with its deeper meaning and implications. Will we get to solutions soon enough to prevent portions of the planet from becoming uninhabitable? Or will the streets of Toronto begin to resemble Beverly Hills with giant royal palm trees lining the Yorktown shopping district, while the southern hemisphere reels from millions of climate refugees running north for survival?

• Sustainability is an operational imperative that starts at the field or ranch and works its way forward to the retail store. The challenge ahead begins with understanding what an organization’s carbon footprint looks like though objective, data-driven scientific analysis that runs all the way back through the supply chain and forward through manufacturing, distributing and recovery of packaging materials.

Within this analysis comes visibility to the conditions that impact climate threat contributions and identifying where improvements can be made, and carbon mitigation targets set.

The biggest threat to progress here is various forms of organizational fear

Given the speed at which climate threat is turning into a passion point for consumers on the path to a purchase decision, there is a need to get this right sooner rather than later. Yet some companies still struggle to navigate.

Why?

Fear of change

Change is hard. No one likes it except the most progressive leaders who see it as a path to reinvention and growth. Changing institutionalized thinking and processes is difficult. But change it must. We need a wildfire of movement towards credible sustainability solutions.

Fear of risk

The street looks for quarterly reports that repeat positive progress. Companies may worry that fundamental changes in infrastructure and operational standards will be a risk – that even with disciplined planning, to some degree, – they’ll still be steering in uncharted waters. Yes, but it’s a necessary risk worth taking.

Fear of truth

Every business resides in a glass house these days because anything that can be known, will be known. Are there some policies and behaviors that under scrutiny in the light of day could cause a little unease?

Transparency is demanded by users and stakeholders at a time when missteps can be discovered and reported globally in the digital age of communication. You already own that problem. The larger social responsibility demerit is knowing the problems exist yet doing nothing to improve them.

A spoonful of sugar helps the medicine…

Thinking differently – turns out robust sustainability commitments and policy are actually a path to improved innovation, financial outcomes and business growth.

Our partners at Brand Experience Group (BXG) made the business case, quantifying the impact of holistic sustainability strategies on balance sheet progress. Overwhelming evidence points to business growth from progressive sustainability programs, properly communicated to all relevant stakeholders. The research also proves that absence of these programs leads to sub-optimal business performance. (if you want to see the report, request it here).

How can this be true?

Because the number of consumers who care about sustainability investments, programs and verified outcomes is NOT some small tertiary cohort. According to BXG:

• 34% of consumers are deeply passionate about sustainability progress, and
• another 33% are “concerned” about sustainability policies and behaviors.
• That’s 67 percent of your consuming marketplace.

If consumers want it, you need to deliver, right?

In a sentence: sustainability is good for business.

It may require changes in how the company operates, sources and manufacturers, but these changes are necessary when the great ship Climate Chaos is coming in all gas and no brakes to ultimately reward the climate caretakers and punish the deniers who claim they didn’t see it coming.

Is this going to be expensive for our economy?

Not if the thesis set out by think tank RethinkX is correct. They forecast ambitious but realistic targets for change in the next 10 years, based on deployment of technologies we already have in place, such as precision fermentation in food making. They state:

“By leveraging the power of market forces, mitigation of greenhouse gas emissions can be transformed from a costly expense into a lucrative investment at every scale from local to global. Regions, nations, communities, cities, businesses, and investors choosing to embrace and lead the disruptions rather than resist them will reap enormous economic and social rewards as well as environmental benefits.”

Decarbonizing the global economy will not be costly, it will instead save trillions of dollars…

“By leveraging the power of market forces, mitigation of greenhouse gas emissions can be transformed from a costly expense into a lucrative investment at every scale from local to global. Regions, nations, communities, cities, businesses, and investors choosing to embrace and lead the disruptions rather than resist them will reap enormous economic and social rewards as well as environmental benefits.” – RethinkX Climate Change Report

Time to get on board and pilot the new Climate Threat ship to a better, brighter and hopefully cooler future.

If you want to get a clear understanding of how to get ahead of the unstoppable and pervasive need for sustainability readiness, read our Brand Sustainability Solution report. You can download it free here.

If you want to know exactly where your business is on climate readiness, take our five-minute online Sustainability Readiness questionnaire. It is complimentary along with the scoring and follow-up report on what the results mean. You’ve got nothing to lose and everything to gain by knowing exactly where your company sustainability challenges reside. Here’s the link to take the electronic questionnaire.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Costs of climate threat are growing

A new study released by the Rockefeller Foundation reports $900 billion annually in added costs to the U.S. food system from agriculture derived greenhouse gas (GHG) and biodiversity losses as a result of land use transformation, animal grazing impacts and nitrogen pollution.

• One major source of environmental impact is the 10 billion farm animals we harvest each year for food and the related damage from methane, water depletion and soil erosion from crops raised to feed livestock.

The U.S. has the most affordable, abundant food supply on earth requiring only about 5% of disposable income from families. According to the Rockefeller report, Americans spend approximately $1.1 trillion on food each year. However, that figure doesn’t take into account the unintended consequences of a food system that in many respects works against planet health and also the wellbeing of people when you consider the accelerated growth rates in obesity, diabetes and heart disease.

Time for a reality check as we talk about the future of food

Our current food system is designed to deliver three things consistently:

• Volume of food
• Safety from food-borne illnesses
• Inexpensive calories

However, we need a food system that is also aligned to help protect the environment and support human health.

An encouraging promise about the future of food is now emerging as vast sums of investment capital race to support the development of new food technologies. From 2015 to 2020 more than $4 billion has been invested in alt. protein technologies. These new food solutions may help reduce climate threat while offering a healthier nutritional profile for cleaner proteins in center-of-plate dishes.

How we eat, what we eat and where food comes is changing

Advancements in bioengineering have authored a tsunami of new food tech businesses pioneering ways to create foods that are not dependent on legacy ingredient supply chains. What’s coming is more food made from cultures, microbes and fermentation technologies.

Will consumers suddenly stop eating animal meat? Not likely. That said will substantial transfers of market share move to these new products not linked to a cow, lamb, pig or chicken? Highly likely; assuming the eating experience and taste hit the mark as an analog to the conventional version. Equally so for non-fish seafood.

Plant-based offers a hint at the transformation

According to Statista, total sales of plant-based meat and dairy products in 2020 reached an astounding $7 billion; of which ‘dairy-free dairy’ led the pack at $2.5 billion in sales of soy, almond, pea, rice and oat milks. An entire generation of milk users is growing up with a different definition of what milk is and how it tastes.

Plant-based meat, the fastest growing segment, hit stride at $1.4 billion in sales volume. That’s a whopping 45.3% jump over 2019 sales results. With new plant-based chicken nugget brands now simultaneously launching in food service channels, the likelihood of more trial and retail movement for non-meat meats is nearly a foregone conclusion. Equally impressive is the surge in plant-based cheese products, up 42.5% over 2019 to $270 million in sales.

• The plant-based meat takeover has been quick. The trends suggest a potentially rapid uptake on the proposition for foods perceived to be healthier (less saturated fat than animal meat) and less taxing on the environment.

Industrial agriculture and meat production produce 24% of total greenhouse gases, the second leading contributor to climate threat behind fossil fuels. Meat production alone accounts for 65%of the world’s nitrous oxide, a gas with a global-warming impact 296 times greater per pound than carbon dioxide. What’s more, total emissions from agriculture are forecasted to increase 80% by 2050due to a significant growth in demand for meat and dairy products.

The development of new food solutions is really a higher-stakes proposition. Climate friendlier food tech may indeed help tamp down the surge in global warming that spawns wildfires, droughts, superstorms and other weather anomalies.  An unprecedented 115-degree heat wave in the Pacific Northwest came dangerously close to upending the regions’ agricultural eco-system.

Eating our way into climate chaos?

What happens when consumers begin to see there’s a relationship between food choices and climate impacts? Consumer attitudes and behaviors have shifted in recent years to focus on issues and more values-based considerations. Purchase behavior has already swung from a historic focus on taste, price and convenience to new concerns about transparency and visibility to the supply chain alongside the number one consumer issue, health and wellness.

The food industry will be obligated to pay attention to these transformational changes and look more fully at climate readiness, sustainability policies and commitments.

Questions food and beverage companies must address:

• What is the true carbon footprint of products, taking into consideration all aspects of supply chain and manufacturing?

• How does this trickle down to hidden costs in bio-diversity impacts such as land use disruption, over-consumption of water resources (it takes 1,500 gallons of water to produce one 16 oz. steak) and harmful farming practices that destroy the ability of cropland to sequester carbon in the soil.

• How will companies verify and validate their sustainability policies and commitments in a transparent and trustworthy way?

• What aspects of sustainability performance and outcomes do core customers care about the most?

• How should sustainability bona fides best be conveyed to a company’s key audiences and stakeholders?

For our part, Emergent sees a food culture transformation on the horizon that will change what consumers believe about where food should come from, how it is made and what they should buy.

To help companies better assess and explore the right path to sustainable practices and climate readiness, we have created the Brand Sustainability Solution report as a guide to the key issues and direction on strategies to solve.

You can download your complimentary copy here.

To secure a snapshot of where your climate sustainability readiness stands today, take the five-minute free Brand Sustainability Readiness survey here.

Looking for more food for thought? Subscribe to the Emerging Trends Report.

Is your brand’s higher purpose dialed in?

“Food is now so much more than food: It’s this representation of the self. We’ve managed to use it as a signifier for so many virtues, whether that’s obvious ones like health or indulgence, but also ancestry and connection to kin and family, or the fact that you’re just a unique person out in the world.” – Benjamin Lorr, The Secret Life of Groceries, Grocery Business interview.

To successfully build and grow a base of enthusiastic brand fans these days consumer relevance is everything. In the absence of a high-quality consumer connection and a valued relationship, food, beverage and lifestyle brands can be cast out of the economic Garden of Eden, forced to wander in the wilderness of commodities interchangeably bought on price.

Now a new challenge is emerging to creating relevance that must be weighed carefully if brands are to retain the attention and support of a growing an influential new base of users. Here’s what’s coming fast and hard:

The Socialization of Brands

Six years ago we tracked a cultural shift indicating consumers were leaning heavily into deeper, meaning, values and mission in assessing the merits of their preferred brands on the path to purchase. This condition is rapidly evolving and is accelerated farther and faster as a result of Pandemic induced upheaval in mindset and evolving personal priorities.

COVID-19 presents an out-of-control social and economic environment. It is enhanced by the absence of effective readily available solutions and clear public policy guidance from previously respected sources of social organization, government and educational institutions. Into this societal vacuum comes a new form of behavior we call brand activism.

• “COVID-19 has forced communities to grapple with how individual behavior impacts collective health and social wellness, and it has elevated the mandate that companies demonstrate how their products, practices and systems positively impact the community and support the greater good.” – Hartman Group, Value in the Time of COVID 19” whitepaper

Brands are now expected to be social actors.

“My Wallet is My Vote”

Imagine the checkout aisle at your supermarket or drug store transforming into a form of voting booth. The wallet and purchase performs the role of ballot-enhanced virtue signaling as consumers cast a vote on their brand candidate’s values through the purchases they make.

• Purchases are largely symbolic gestures now, intended to telegraph what people want others to know about their priorities and identity. That said, the nature of this beast is evolving further with emergence of pressing issues that are forming on the horizon of our food system, how it operates and what it represents beyond abundance, indulgence and health.

The cultural shift taking place is a pervasive belief among people, Gen Z especially, that they are unique and empowered to help create change. Rather than relying on the performance of others or institutions, people look at their own relationships, networks and voices as opportunities to activate their advocacy on a larger canvas.

Alignment reaches a new level

Awhile back people discovered alignment between the quality of what they ingest and the quality of their lives. The impact of this revelation was seismic. Enter the fresh food revolution, the move to perimeter shopping at grocery, the emergence of preference for locally-sourced foods, and the decline of heavily processed packaged products.

Healthy food was no longer defined as addition by subtraction (or food science at work) to remove fat, sugar, salt and calories in order to achieve a better-for-you claim. In its place came higher quality real fresh food solutions that impacted the course of emerging food brands from large cap CPG line extensions to entrepreneurial, new food brands with an ethos and higher quality, small batch formulation.

Now another revolution is in the works as alignment evolves yet again.

The relationship of food to climate change threat

The alignment emerging now is awareness of a relationship between our current food system and the over-production of greenhouse gases that sit at the foundation of the climate change crisis. The increased pace of super storms, wildfires, droughts followed by floods, topsoil erosion, and the threats to shorelines advanced by higher water levels, serves as evidence the earth has its problems.

Now comes the realization that meat and industrial agricultural practices are the largest contributor to greenhouse gas creation on earth. The revelation: food production enabled by increased consumption by an ever-growing global population could endanger the planet. The food system specifically meat production and large-scale industrial agriculture, is producing greenhouse gas at a level exceeding the contribution of all forms of global transportation combined. Current GHG levels outstrip any prevailing public policy or naturally occurring solution that would lower it sufficiently to address rising earth temperatures and their impact.

• As this knowledge becomes more widespread it will usher in a new era of calculation on favorable brand attributes, specifically carbon footprint. Advantage will go to brands that provide evidence of their sourcing and production processes that work to mitigate contributions to greenhouse gas creation.

Many plant-based brands have already stepped into this arena by invoking climate change in their stories. Some brands have already begun including carbon footprint claims on their product packaging or menus (Panera, Chipotle and Flora plant butter).

Fast on the move is another generation of new product concepts that employ the latest techniques in fermentation and microbe use designed to step away from the agricultural production chain entirely and thus advancing a new cadre of claims and benefits associated with climate change.

Brand activism and brand voice

We have long lauded those incredibly advanced brand ethos players like Yeti who have injected new-found lifestyle associations and deeper meaning into their brand personas. These companies take consumer lifestyle very seriously and operate as mirrors of people who, in Yeti’s case, are devoted to outdoor adventure – or at least aspire to do so.

Now a new battlefield emerges for brands that take the socialization of food and food production to a new level. These informed brands work to answer both the coming tide of planet-level food scarcity and the impact of our global agricultural system on greenhouse gas creation.

Thus we envision a new phalanx of emerging brands that weigh in on such important topics, working to associate themselves with the activist mindset of consumers wishing to vote their preferences via the food purchases they make.

Supporting regenerative agriculture practices will be one area we expect to rise in importance in the year ahead. The potential exists now to help support a new view of farming practices that can help turn farmland into the world’s largest carbon sink. These kinds of stories and the behavioral moves by brands to embrace this new thinking will mark a new era and opportunity in brand communication.

• As consumers increasingly view purchases as a flag of their beliefs, it is vital that brand communication strategy advances to lead this conversation and facilitate the dialogue in social channels.

It’s coming faster due to the cultural shift now underway that aligns food production with climate change, making activism a part of the purchase decision. Failure to recognize this coming shift could put brand relevance at risk and hand competitive advantage to those who are already moving to answer this form of brand activism.

• If further guidance on this evolving path is of interest to optimize your brand’s higher purpose-related messaging and story creation, we can help you determine the right path and create the right story.

Use this link to start a fresh conversation around questions you have about this emerging change-in-motion.

Looking for more food for thought? Subscribe to the Emerging Trends Report.