How can stakeholders work together to change the food production and consumption chain? Presentation in Brussels for Ifi (int. food ingredients) congres on april 14, 2011

1. Towards a healthy world?
Public Private Partnership in sustainable
foodchains: Brussels, April 14, 2011

2. Index
1. We face growing food problems p. 4 Towards a healthy world?
Public Private Partnership in
2. Changing people: a little theory p. 11 sustainable foodchains:
Brussels, April 14, 2011
3. The 4 phases translated to your industry p. 21
4. Conclusions and discussion p. 39
TNS NIPO, Amsterdam
Auteur
Sibolt Mulder
TNS NIPO
| © TNS

3. Introduction
Drs. Sibolt Mulder
Senior consultant: on building public support for
governmental policies
Relevant projects:
Dutch ministery of environment and housing: public
support for various types of sustainability measures
for CO2-reduction and nature in Holland
Dutch Environmental Agency: Future projections
towards 2040 of the consumption of food, travel
and housing with climate consequences
Marketing opportunities for biological food
Dutch Butchers Union: The sustainable butcher Sibolt.mulder@tns-nipo.com
The Greenery: branding fresh vegetables?
3

4. We face growing food problems
Towards a healthy world?

5. Growing health problems
55% of the Dutch men and 45% of the women between 20-
70 years are overweight
In the last 25 years the percentage of serious obese adults
has grown to 10%. Children show the same growth pattern
in problems
In the coming 20 years the obesity problem will rise to 15%
of the population
Lower educated people and ethnic minorities are much more
at risk for obesity and it’s problems
Overweight causes 40.000 weight related patients each
year. 5% of all deaths are weight related
Eldery people are increasing in numbers and have dieet-
problems: malnutrition, diabetes
Costs for the Dutch economy are about € 2 billion each year
5

6. Growing environmental problems with food-production
(Note: Holland is big: the worlds second exporter of agricultural products, after the USA)
Worldwide demand for meat will double to about 450 billion kilo’s a year in 2050
Mineral problems: a shortage of phosphates in countries producing animal food / soil
contamination with phosphates in the Nord-West Europe
Agriculture uses about 70% of the worlds fresh water supply
Waste of food in the total chain of production varies between 30-50% (excluding
consumption spillage, which adds about 10%). Food waste is not enough being reused or
recycled
Urban people don’t understand the food production process. Sensitive for hypes
6

7. Damage to biodiversity 1700 - 2050
7
Source: Planbureau voor de Leefomgeving 2008

8. Food industry is under fire. How to react?
1962 1965 2004 2011 ?
Other industries have learnt to deal with it:
1. Stakeholder monitoring on the corporate image of your industry and company
2. Develop active Public Affairs policies aimed at a constructive stakeholders dialog
3. Help inventing solutions before other do that for you….
8

9. Dutch governmental food production policy priorities
In 15 years the food patterns of the current ‘innovators’ among the consumers should
become the average pattern of consumption
Influencing consumers: educating them combined with a growing supply of sustainable
products and diminishing supply of wrong foods
Stimulation of innovation ( = money) in Dutch sustainable food production chains
Reduction of waste of food
Before 2010 about 15% of meat products must be produced in sustainable chains.
Animal welfare levels must be socially acceptable
Transparancy in production and retail chains
Promoting European food regulation
9

10. Dutch governmental food consumption policy priorities
Create an environment reducing the development of obesity
Promote a better balance between nutrition and physical activity
Early identifying and treating obesity
Prevention as a part of general healthcare provision
Improve parenting to protect young people
Counteract malnutrition among the elderly
Improve composition of food products
Improve product information for the consumer
Develop guidelines for good nutrition
Improve animal welfare and sustainable practises in the food chain production
(Source: Memorandum on Obesity, Ministerie of VWS, 2009)
10

11. Changing people: a little theory
Towards a healthy world?

12. Behaviour is mainly determined by our environment
Demografy
Technology Economy
Politics
Geografy
Ecology
Infrastructure
Social trends
12

13. Prochaska: psychological model of phases in change
Six stages of change Change Strategy
1. Precontemplation - "people are not intending to take action in
the foreseeable future, usually measured as the next 6 months"
consciousness
2. Contemplation - "people are intending to change in the next 6 raising
months"
3. Preparation - "people are intending to take action in the self-reevaluation
immediate future, usually measured as the next month"
4. Action - "people have made specific overt modifications in their
self-liberation
life styles within the past 6 months"
5. Maintenance - "people are working to prevent relapse," a
stage which is estimated to last "from 6 months to about 5 years" Reinforcement
6. Termination - "individuals have zero temptation and 100% management
self-efficacy... they are sure they will not return to their old
unhealthy habit as a way of coping"
NOTE: People differ in their pace of adopting change

14. E. Rogers: sociological model of segments in adopting change
% of population
Innovators Early Adopters Early Majority Late Majority Laggards
Specialists/ Ambassadors Convincable Sceptics Opponents?
idealists Trendsetting in opinions Can be made aware Do not see an issue as Resistance against the
First to define a trend and behaviour. Select of the problem. their problem. analyses of the problem
and problem. Must fight the issues, often ahead Open to change in Opportunistic. Look to and to the solutions.
for agendasetting of policymakers attitude and what happens to other Will try to avoid
behaviour people who do and do compliance to
not change. Calculate regulation
price of change
14

15. Our various sustainability surveys show that a minority
wants a choice but the majority prefers convenience
% of population
The majority expect industries and governments
together provides them with “good” products
without responsibility to choose themselves
To change average to low motivated groups the
desired behaviour must be made very easy
Idealists & Convenience
Convincable seekers
ambassadors ` Opponents
3-5% 30% 3 - 5%
60- 70%
15

16. Building change, step by step, segment by segment
% of population
1. Public and political 2. Introducing behaviour-options 3. Facilitating 4. Regulation &
agendasetting Industry: ‘green’ innovations behaviour reinforcement
Government: social marketing - remove hurdles Soft & hard
Idealists & Convenience
Convincable seekers
ambassadors ` Opponents
3-5% 30% 3 - 5%
60- 70%
16

17. Working together in a public/private partnership?
% of population
1. Public and political 2. Introducing behaviour-options 3. Facilitating 4. Regulation &
agendasetting Industry: ‘green’ innovations behaviour & reinforcement
Government: social marketing remove hurdles Soft & hard
Industry & Industry & Goverment
NGO’s & government Government
scientists, Convenience (Industry,
Idealists & Convincable
politicians seekers NGO’s)
Opponents
ambassadors `
3-5% 30% 3 - 5%
60- 70%
17

18. During the phases of change-strategy the focus changes,
based on the curves of attitude and behaviour
Phase 1: low knowledge and sense of Phase 2. high initial resistance ->
urgency offer tempting behaviour-alternatives
-> agendasetting is needed
10 6
pct. of population
pct of population
8 5
6 4
3
4
2
2
1
0
1 2 3 4 5 6 7 8 9 10 11
1 2 3 4 5 6 7 8 9 10 11
Phase 3: a large part of the population Phase 4: resistance by a small group ->
has changed regulation and reinforcement is needed
-> lower hurdles for change for the next
6
segments
pct of population
6 5
pct. of population
5 4
4 3
3 2
2 1
1 0
1 2 3 4 5 6 7 8 9 10 11 1 2 3 4 5 6 7 8 9 10 11
18

19. Food = Culture = Politics
Segmentations with socio-demographic and value axes improve our insight
in peoples openess for types of change
•Higher education
•Higher incomes
Social / cultural elite •High abstract thinking-levels Liberal / business elite
• moralists / socialistic thinking • Individualists / liberal thinking
• seek political & legal solutions • seek economic & technical solutions
• want to see development of morality • want to see effectivity & efficiency
• Lower education
Right wing populists
Social populists •Lower incomes
•Low abstract thinking-levels
19

20. Various strategies for sustainable food can co-exist
Liberal / business elite
Social / cultural elite
•Higher education and incomes
•High abstract thinking-levels
•Open to change
• moralists / socialistic thinking • Individualists / liberal thinking
• seek political & legal solutions • seek economic & technical solutions
• want to see development of morality • want to see effectivity & efficiency
Social populists Right wing populists
• Lower education and incomes
•Conservative
•Low abstract thinking-levels
20

21. The 4 phases translated to your industry
Towards a healthy world?

22. Phase 1. Agendasetting: quarrel and/or co-operate with NGO’s?
The drama behind
cheap meat
Friends of the Earth
NGO’s vary in strategy. Some are radical, other are co-operative
Agendasetting is their mission, so expect that from them
Most value it if you even start looking for solutions with them
22

23. Phase 2: Marketing desired behaviour: governments actions
1. Research shows: a healthy diet also helps global sustainable food production-goals
2. Educate the population: make them conscious of the problems and the solutions
3. Promote physical exercise (1 hour a day)
4. Promote consumption of fruit, corn and vegetables
5. Organize early medical detection of obesity
6. Covenant with the Dutch food industry on healthy products and regulated advertising
7. Reduce the availability of unhealthy food for the consumers (= reduce the exposure of
people to these products). Food with high fat content and high energy type of food like
soft drinks might be discouraged
8. Reduce advertising for unhealthy food for children
23

24. Phase 2. UK-example: Change4life Social Marketing Plan
Pre-stage Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Mobilising the Reframing the Personalising Rooting Inspiring Supporting as
network of issue of the issue behaviours people to they change
profit and non obesity change
profit partners
Change4life is This isn’t This isn’t about I know what I know people I can see the
coming. We about how my bad parents or to do to like me are difference this
should be part children look. very fat reduce my changing their is making
of it It’s about children. family’s risk lives so I
diabetes, It’s about my believe it’s
cancer and children possible
heart disease
24

25. Phase 2. examples of public/private partnership in
Change4life-strategie in de UK
25

26. Phase 2. Governmental accredited labeling;
helping or confusing consumers?
Consumers may be helped by using labeling
Currently, there is still no strict regulation on
labeling
It is left to the consumer responsability to check
it’s credibility
Greenwashing and consumers loosing
confidence are dangerous trends
Official educational organisations like the
“Voedingscentrum” (= Foodcentre) give
information on accredited labels.
Others are not supported
26

27. The gap between the citizen and the consumer
Who do you feel is responsible for preventing unhealthy food? (2010)
Russia 25 28 2 2 2 40 1
Italy 28 20 21 11 5 10 5
France 33 31 4 12 6 12 2
Consumers
Producers
Media
Spain 39 21 9 8 3 15 5 Consumers NGO's
Retailers
Government
Others
Great Brittain 58 18 4 3 5 7 4
Germany 69 16 3 3 2 6 1
Holland 70 15 3 3 2 5 2
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% %
Source: TNS, sept. 2010
27

28. The gap between the citizen and the consumer
% less use of Support (%) Support with
Public support for high foodprices land without explanation (%)
(for less usage of land) explanation
•Tax on meat: € 1,25 per pound 2,1 38 44
•Tax on meat: € 2,50 per pound 4,1 28 36
•Tax on meat: € 5,00 per pound 6,2 21 27
•Milk + € 0,75 / litre 0,6 35 37
•Milk + € 1,50 / litre 0,9 24 26
•Milke + € 3,00 / litre 1,1 18 19
•GMO in animal feed 2,8 42 47
•GMO in animal and peoples food 4,1 32 38
The difference shows which % of the people are high or average to low motivated
Bron: Veldkamp 2007
28

29. Phase 2: Commercial marketing: for popularisation the
branding has to improve and the prices have to go down
In Holland the biological segment has grown about 20% in 2010
However: biological products are often 200-300% more expensive than regular products
However: Biological is technically not always optimal for the environment
For popularization prices for more sustainable products should go and can down
Intermediate products may be the way to popularization with a reasonable price
Semi-biological Consumers can
brand trace the Dutch
origins
29

30. Phase 2. Industry: retailer positioning as a responsible
brand using the accredited labels
30

31. Phase 2: industry: improve your production chain
Can you help preventing wasting 30-50% of the food in the total chain?
Can you help making reuse and recycling easy? Adapt your packaging?
General principles of gaining sustainability in production
Lack of
discussion
in total
production
chain
31

32. Warning: “greenwashing” is dangerous
Case: test of a press campaign exposing green claims on customer loyalty
Loyalty before Loyalty after
33 24 43 30 3 Eneco (n=178) 91 3 6 34 57
43 19 38 41 2 Essent (n=160) 94 06 33 61
Press
campaign
48 16 36 43 5 Nuon (n=160) 94 34 32 62
20 39 38 3 93 25 33 60
41 Totaal (gem)
Entrenched Average Shallow Convertible Entrenched Average Shallow Convertible
32

33. Greenwashing?
Clean Label congres
november 2010, Madrid
Naturally and ethically improve your NPD
Naturally and ethically improve your NPD
Learn new ways to source natural ingredients
Learn new ways to source natural ingredients
ethically and be seen as ‘a moral champion’
ethically and be seen as ‘a moral champion’
above your competitors
above your competitors
Health benefits: Looking at the next big functional foods
• Utilising vitamins and minerals to make substantial health claims which align to
consumer priorities
• The demand for simplicity and natural for big business wins
• Demonstrating the impact on sales from buzzwords such as ‘natural’, ‘clean label’,
‘authentic’ and ‘homemade’
33

34. Phase 3. Facilitating: organizing stimuli for desired behaviour
The average to low motivated consumer needs very convenient ways to be seduced
Nudge = creating stimuli for desired behaviour
Healthier
frying oil
34

35. Phase 3. Facilitating: remove barriers for behaviour
35

36. Phase 4. regulation & reinforcement: if marketing fails
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Braithwaite: Pyramid of responsive regulation
36

37. Phase 4. Self regulation: convenant “healthy weight” 2010
37

38. Phase 4. Reinforcement: where soft regulation fails
Inspections are
often forgotten in
the stakeholder
discussions
A trade union could
try to involve them
too in policy making
for an industry
Braithwaite: Pyramid of responsive regulation
38

39. Conclusions and discussion
Towards a healthy world?

40. Conclusions
Worldwide food demand is exploding due to growth of the population and incomes
The food industry should react to growing public opposition to health an sustainability
problems
Knowledge and attitude changes are not enough; the environment around the consumer
must be changed; he expects it from his governments and industries
Changing behaviour in whole societies requires a step-by-step segmented strategy with
public/private partnerships between governments and industries
Industries in the food chain must take up the leadership in their whole chain if they want to
position themselves as a sustainable brand on planet and people issues
Governments, industries, NGO’s and knowledge institutes must improve their strategic
dialog to lower behaviour-barriers for consumers for the average to low motivated
segments
40

41. Discussion: for a popular positioning of sustainable food it’s
best to combine personal health with global sustainable
production: “a healthy world”
High education/income
Low education/income
41

42. Discussion: stakeholders cooperation should improve
Can we raise the level of working together?
NGO’s
Level 0 = stakeholder do not know their Multinationals
counterparts
Level 1 = sharing information and policies
EU and Level 2 = voluntary deals
national
governments Level 3 = shared strategies
Level 4 = contracts
Trade unions
Local Level 5 = central steering for small
governments business
Inspections
42

43. However: changing our own behaviour is difficult
43

44. More information:
sibolt.mulder@tns-nipo.com
tel: +31 20 522 54 02