July 21, 2008

3 Min Read
Food Recalls Forcing Consumer Label-Reading Shift

Much like how the recent attention to global warming and energy consumption is starting to drastically change the way Americans approach energy use and conservation, food recalls and other food safety incidents have forced consumers to be more aware of the information provided on food labels. A new research report from Deloitte details this very shift in consumer focus and desires relative to the information manufacturers share with them via labeling.

Overall, consumers are most worried about the healthiness of ingredients (trans-fats vs whole grains comes to mind), possible use of chemical ingredients detrimental to health (lead anyone?) and the safety of the ingredients (think triple-caffeine).

This trend should surprise no one, given the steady stream of food safety events in the United States this past year. Deloitte reported not only are consumers "increasingly distrustful of the food available to them in the grocery store and vigilantly checking food labels," but they are also demanding that all types of foods sold in supermarkets clearly display key information, including country of origin, so they can make more informed buying decisions.

In fact, a large majority of those surveyed said they want country of origin labeling for fresh fish (84 percent), fresh fruits and vegetables (80 percent) and packaged food ingredients (69 percent). I wonder when the locally grown demand will also gain decibels. Then maybe state of origin or county of origin will be applicable.

Back to Deloitte, while half of those surveyed said they frequently or always read the list of ingredients on an unfamiliar packaged food item, a whopping 92 percent don't understand at least some of the ingredients on packaged food items. What?! Long chemical names don't sound appetizing? Nothing better than some monosodium glutamate in your soup, right? How about potassium bromate in your bread? No, thanks.

As is the case in modern times, the Web is our new "go to" phone-a-friend, as Deloitte reports two-thirds of consumers turn to the Internet to learn more about foods. With the broad range of good-to-bad-to-worse nutrition information on the 'net, I hope consumers are finding manufacturer's Web sites to be open and informative on these issues. Highlighting this reliance on technology, more than half of those surveyed would welcome the ability to scan barcodes with their cell phones, obtaining information such as packaged date, use-by date and country of origin.

The good news (well, attention to such labeling should be good news to our industry) is consumers are willing to pay more for products with more upfront and informative labels. More than 70 percent of consumers in the Deloitte survey said they would still want country of origin labeling even at a slightly elevated cost at checkout.

Pat Conroy, Deloitte LLP’s vice chairman and US Consumer Products group leader, said while today's consumers have more access to food information than ever before, it’s clear that the info they are getting is not enough. "Consumers are spending more time checking labels and are often overwhelmed by a flood of contradictory nutrition ‘facts.’ They seek clear, straightforward information they can understand so they can make more informed choices and better protect themselves and their families.”

I think this is as overdue as fuel-efficient transportation and alternative energy sourcing, but I'm an armchair quarterback; and I understand the value in "better late than never."

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