{"id":821,"date":"2018-11-01T11:04:07","date_gmt":"2018-11-01T18:04:07","guid":{"rendered":"https:\/\/southernoregonbusiness.com\/?p=821"},"modified":"2019-07-16T11:19:30","modified_gmt":"2019-07-16T18:19:30","slug":"whats-sustainability-got-to-do-with-it","status":"publish","type":"post","link":"https:\/\/southernoregonbusiness.com\/whats-sustainability-got-to-do-with-it\/","title":{"rendered":"WHAT’S SUSTAINABILITY GOT TO DO WITH IT?"},"content":{"rendered":"\n

\n\nLINKING SUSTAINABILITY CLAIMS TO SALES\n\n<\/p>\n\n\n\n

\n\nFMCG AND RETAIL\nHTTPS:\/\/WWW.NIELSEN.COM\/US\/EN.HTML\n\n<\/p>\n\n\n\n

\n\n\u201cAll natural,\u201d \u201cfair trade,\u201d \u201corganic\u201d\u2014more and\nmore products across the store include claims of\nsustainability. But what do all these claims mean?\nDescribing a product as \u201csustainable\u201d could mean\nthat it\u2019s sourced responsibly, for example, or that it\nutilizes recyclable packaging\u2014as well as a whole\nhost of other potential attributes. Understanding\nhow and why sustainability claims are gaining\nmomentum across product categories is critical to\nunderstanding how, when and why consumers\nprioritize sustainable options.\n\n<\/p>\n\n\n\n

\n\nWith all of the various sustainability factors and\nevolving trends in play, companies need to understand whether and how these broader sentiments\nplay out for their specific brand and consumer\nprofile. For example, who are the consumers you\nhave yet to reach? Does your product have a\nsustainable attribute\u2014and could leveraging\nsustainability claims on product packaging present\na new market opportunity?\n\n<\/p>\n\n\n\n

\n\nAs society becomes more aware of the social and\nenvironmental impact of products and services,\nconsumers are becoming more mindful of their\npurchases.\n\n<\/p>\n\n\n\n

\n\nIn this report, we deep-dive into three product\ncategories\u2014chocolate, coffee, and bath products\u2014\nto demonstrate how and where sustainability\nsells. Our analysis focused on U.S. consumers\u2019\npurchasing behavior, using sales data from the\nfood-drug store-mass merchandiser (FDMx)\nchannel. There are many categories to choose\nfrom, but for this study we selected chocolate,\ncoffee and bath products because they are\nsufficiently different from one another and are\namong the most common fast-moving consumer\ngoods (FMCG) purchases across consumer groups.\n\n<\/p>\n\n\n\n

\n\nWhat did we find? Overall, sales of items with\ncertain sustainability claims across all three\ncategories grew faster than the total category.\n\n\n<\/p>\n\n\n\n

In a recent report<\/a>, we compared the performance of sustainability claims in the U.S. across three product categories\u2014chocolate, coffee, and bath products\u2014to understand consumers\u2019 sentiments toward various sustainability factors. <\/p>\n\n\n\n

For all three categories, dollar sales of items with the specific claims studied grew twice as fast as the weighted average dollar growth of the three categories combined. In other words, products with certain sustainability attributes outperformed the growth rate of total products in their respective categories despite challenges that might have predicted otherwise, like a relatively smaller market share. <\/p>\n\n\n\n

That said, one size does not fit all. Given the range of different, interrelated sustainability aspects in each product category, we focused on select product claims for each category. But the methodology can be replicated across many fast-moving consumer goods product categories and customized for specific brands or companies. No matter what, sustainability is no longer a niche play: your bottom-line and brand growth depend on it. <\/p>\n\n\n\n

\n\nSWEET, SWEET SUSTAINABILITY\n\n<\/p>\n\n\n\n

\n\nDiving deeper into the chocolate category, our\nresearch explored the impact of three key claims\nacross the category: environmental claims (carbon\nneutral, ethically sourced, made with renewable\nenergy, etc.), absence of artificial ingredients, and\nfair trade.\n\n<\/p>\n\n\n\n

\"\"
Source: Nielsen Answers\non Demand\n(Health & Wellness\nCharacteristics) &\nNielsen Product Insider,\npowered by\nLabel Insight | Total US\nFDMx | 52 Weeks\nPeriod Ending\n03\/24\/2018 vs Year Ago<\/figcaption><\/figure>\n\n\n\n

\n\nWhile chocolate with environmental claims makes up\nonly 0.2% of the total category share, it grew by\n22% from March 2017 to March 2018. This is more\nthan 4x the rate of total category dollar growth\nwhen it comes to sales. Looking at units, it\u2019s a\nsimilar story: We see chocolate with environmental\nclaims flying off the shelves at a rate 5x faster than\nThe overall market\u201415% unit sales growth\ncompared with 3%.\n\n\n<\/p>\n\n\n\n

\n\nSales of products with fair trade claims (which make\nup only 0.1% of total chocolate share) are growing\nfaster than the overall category as well, with dollar\nsales growth outpacing category growth by 2x (10%\nvs. 5%) and unit sales growth by 5x (15% vs. 3%).\n\n<\/p>\n\n\n\n

Chocolate that is free of artificial ingredients, or made with \u201cclean\u201d ingredients, is growing on par in unit sales with the total chocolate category, both growing at 3%. This could lead to the assumption that products with this claim are not growing faster than the total category. However, products with this claim have grown faster from a dollar sales perspective than the total market (16% vs 5%). Based on that, we can infer that price is actually higher per unit, and that consumers are willing to pay more for the sustainable choice. <\/p>\n\n\n\n

\n\nAlong with the increase of the average retail unit\nprice, chocolate free from artificial ingredients is\nincreasingly being sold in a greater number of\nstores, while the distribution of all other chocolate is\nflat. This again shows that consumers are actively\nchoosing to pay more for chocolate products free of\nartificial ingredients and that brands are increasing\ndistribution to account for that demand.\n\n<\/p>\n\n\n\n

\n\nCOFFEE STIMULATES SUSTAINABILITY\nOPPORTUNITIES\n\n<\/p>\n\n\n\n

\n\nAs with the chocolate category, we\u2019ve chosen to\ntake a look at the same three sustainability claims\nfor coffee: environmental claims, absence of\nartificial ingredients and fair trade. \n\n<\/p>\n\n\n\n

\"\"
Source: Nielsen Answers on Demand\n(Health & Wellness Characteristics).\n\u201cAbsence of Artificial Ingredients\u201d data\nsourced from Nielsen Product Insider,\npowered by Label Insight | Total US\nFDMx | 52 Weeks Period Ending\n03\/24\/2018 vs Year Ago<\/figcaption><\/figure>\n\n\n\n

\n\nWhile the total coffee category declined 1% in dollar\ngrowth from March 2017 to March 2018, coffee\nproducts with environmental and fair-trade claims\nexperienced double-digit dollar sales growth for the\nsame period. Overall, sales of coffee products with\nsustainability claims grew faster than the total coffee\ncategory.\n\n<\/p>\n\n\n\n

\n\nIn many ways this space is evolving; however, what\nwe do know is that sustainability presents an\nopportunity to be creative about innovative growth.\nEmbedding consumer demand for sustainability into\nyour company strategy and product pipeline requires\ndata specific to your brand footprint and consumer\nprofile.\n\n<\/p>\n\n\n\n

For more information, download our full report, “What’s Sustainability Got to Do With It?<\/a>” <\/p>\n\n\n\n

\"\"<\/figure><\/div>\n\n\n\n

Crystal Barnes <\/em>
SVP, Global Responsibility and Sustainability, Nielsen; <\/em>
Executive Director, Nielsen Foundation<\/em> <\/p>\n","protected":false},"excerpt":{"rendered":"

LINKING SUSTAINABILITY CLAIMS TO SALES FMCG AND RETAIL HTTPS:\/\/WWW.NIELSEN.COM\/US\/EN.HTML \u201cAll natural,\u201d \u201cfair trade,\u201d \u201corganic\u201d\u2014more and more products across the store include claims of sustainability. But what do all these claims mean? Describing a product as \u201csustainable\u201d could mean that it\u2019s sourced responsibly, for example, or that it utilizes recyclable packaging\u2014as well as a whole host…<\/p>\n","protected":false},"author":29,"featured_media":826,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"pmpro_default_level":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_wp_rev_ctl_limit":""},"categories":[11],"tags":[21,20,32,22,23,24,33,25,29,27,28,26,30],"yoast_head":"\nWHAT'S SUSTAINABILITY GOT TO DO WITH IT? - Southern Oregon Business Journal<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/southernoregonbusiness.com\/whats-sustainability-got-to-do-with-it\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WHAT'S SUSTAINABILITY GOT TO DO WITH IT? - Southern Oregon Business Journal\" \/>\n<meta property=\"og:description\" content=\"LINKING SUSTAINABILITY CLAIMS TO SALES FMCG AND RETAIL HTTPS:\/\/WWW.NIELSEN.COM\/US\/EN.HTML \u201cAll natural,\u201d \u201cfair trade,\u201d \u201corganic\u201d\u2014more and more products across the store include claims of sustainability. 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