The Power of Brand Transparency in CPG Food Brands

Brand Transparency & Traceability: THE Imperative for CPG Food Brands

In an era where consumer empowerment is at its peak, the demand for brand transparency and traceability in the food industry has reached unprecedented heights. Consumers are expecting more honesty from the consumer packaged goods (CPG) food brands they love.

People crave a deeper understanding of ingredient information and nutrition facts, where their food comes from and how it was grown or raised. They use this information to make informed purchasing decisions about the foods they choose to serve on their dinner tables.

So, how can food CPG brands exceed consumer expectations of transparency to build brand sales, loyalty and unbreakable trust?

What is Brand Transparency and Traceability?

Brand transparency refers to sharing food ingredient information with consumers — including where ingredients are sourced and how they are grown, raised and made.

Brand traceability follows the movement of specific food products and ingredients on its journey from farm to fork through the supply chain.

Do Consumers Really Care About Transparency … and What do They Want to Know About the Foods They Consume?

According to research, yes — consumers care deeply about brand transparency and traceability when it comes to the foods they consume.

• About 75% of shoppers surveyed say transparency from brands and manufacturers is extremely important or important.
• 86% of consumers who report transparency as important also rank traceability as extremely or very important.
• 55% of U.S. consumers are asking for “the story” behind their food — they want to feel more connected to the products they purchase.

When consumers have access to accurate, comprehensive, and easily understandable information about their food choices, brand preference and trust can be cultivated.

The data paints a clear picture of what product information consumers seek when it comes to transparency and traceability:

• Some 79% of shoppers say they actively look for at least one product attribute displayed on the front of the package.
  • The biggest themes they seek are avoiding negatives (63%), minimal processing (49%), whole grains/fiber (31%), and ethical practices (26%).
• 85% of shoppers focus on availability of ingredients information as a sign of
• 59% indicate providing a complete list of ingredients is the leading indicator of transparency, followed by a plain-English description of ingredients (49%).
• 55% reported environmental sustainability as very to extremely important.
• 45% say that providing in-depth nutrition information is important for them in determining if a brand or manufacturer is being transparent.

What Does the Demand for Transparency Mean for Your Food Brand?

Whether it’s concerns about allergens or the environmental impact of production, consumers should have the ability to make well-informed purchasing decisions.

Detailed labeling, certifications, and easily accessible information enable individuals to navigate the complex landscape of food choices and support brands that align with their personal convictions.

Consumers act on what they learn:

• Over 50% reported they were willing to pay a 5% premium for transparent labeling.
• Almost two-thirds of shoppers (64%) say they would switch from a brand they usually buy to another brand that provides more in-depth product information, beyond what is provided on the physical label.
• Younger shoppers, Gen Z (74%) and particularly Millennial (79%), are more likely to say it is important that the companies they buy from are transparent than Gen X (63%) and Boomers (70%).

How Can Your Food Brand Improve Consumer Trust, Preference and Sales?

1. Be as transparent as possible.
2. Pursue traceability in your supply chains.
3. Share your brand story with your stakeholders.

Employees, suppliers, investors, customers, and consumers all want to know what you’re doing to align with society’s increasing expectations around food transparency and traceability. They want to feel good about supporting your business. It’s up to you to encourage them to do so by sharing the story behind your brand.

Sharing your brand backstory is a powerful way to position the true value of your brand and its commitment to transparency and traceability. Share your story on product packaging, your website, digital channels like social media and email, in stores and directly with consumers. Be proud of your efforts! This exposure to your transparency and traceability story will translate into brand preference, increased trust and long-term loyalty.

At MorganMyers, we help brands like yours capture, package, and deliver transparency and traceability stories to the right audiences and bolster your reputation to grow brand trust, preference, and sales.

We’re passionate about what we do. We’d like to help you discover what in your brand’s back story matters most to your specific audiences, and then help you craft and share your authentic transparency and traceability stories.

For more information about MorganMyers and to schedule a quick introductory meeting contact mhamrin@morganmyers.com.