Sustainability in the Marketplace

SUSTAINABILITY
IN THE
MARKETPLACE
July 18 | 12:30 -2:00 p.m.
IFT 2016

PRESENTERS
“IFIC’s Consumer Perception Data: Sustainable
Brands, Retailers and Practices”
• Liz Sanders, MPH, RDN, Associate Director, Nutrition
and Food Safety | International Food Information
Council
“McDonald’s Case Study: How Sustainable Practices
Affect the Bottom Line”
• Bob Langert, Retired VP, CSR & Sustainability |
McDonald’s Corporation; Editor at Large | Green Biz
“View From the Farm: Insights about Soy’s
Sustainability”
• Josiah McClellan, Director of Food Market Issues and
Sustainability | United Soybean Board

• Soybean checkoff led by 70 soybean farmers
• USDA Agricultural Marketing Services has
oversight
• More than 550,000 U.S. soybean farmers
• Soybean oil is the most widely used edible oil
in the U.S.
• Soybean farmers champion sustainable
innovations, such as biotech varieties that are
herbicide tolerant and reduce tillage
ABOUT THE
UNITED SOYBEAN
BOARD

SUSTAINABILITY
ON HAMMER &
KAVAZANJIAN
FARMS (WI)
Cover crops & crop
rotation
Reduced tillage,
wind energy &
more

Solar-powered
shop
Pollinator habitat
SUSTAINABILITY
ON HAMMER &
KAVAZANJIAN
FARMS (WI)

International Food Information Council Foundation
Food and Health Survey 2015
IFIC Foundation
Mission:
To effectively communicate science-based information on health, nutrition
and food safety for the public good.
 Primarily supported by the broad-based food, beverage and agricultural industries.
2
Liz Sanders, MPH, RD
Associate Director,
Nutrition Communications
sanders@ific.org

2016 Food and Health Survey
3
• Americans surveyed: 1,003 (ages 18 to 80)
• 11th edition of the annual survey
• Conducted by Greenwald & Associates, using ResearchNow’s consumer panel
• Fielding: March 17 to March 24, 2016
• Survey duration: 29 minutes, on average
• Results weighted to reflect American population ages 18 to 80
• Weighted by Age, Education, Gender, Race/Ethnicity and Region
• Subgroups reported for Age, Education, Income, Gender, Those with or
without children under 18, BMI and Ratings of own health.
• Additional analysis and subgroups included throughout
Background and Methodology
Full Survey Results available at foodinsight.org/2016-FHS

Taste continues to have the greatest impact on the decision
to buy foods and beverages. Sustainability is up from 2015.
How much of an impact do the following have on your decision to buy foods and beverages?
(% Rating 4 to 5 on 5-point scale, from No Impact to A Great Impact)
4
2016 n=1,003
Arrows indicate significant (.95 level) differences vs. 2015.

“Natural” is most often associated with having no preservatives
or additives.
5
2016 n=1,003
Coded for multiple responses
What does the term “natural” mean to you (when applied to food)? (Open-ended response)
NO PRESERVATIVES OR ADDITIVES
No preservatives, additives or food
coloring. No processed foods.
Female, age 38
Natural nutrients that are ingrained in
the food products. That is, not any
artificial chemicals added in the food
to enhance shelf life or taste.
Female, age 67
NATURAL INGREDIENTS/STRAIGHT FROM NATURE/WHOLE FOODS
Taken straight from the source; no
chemicals whatsoever have been used
on it.
Male, age 20
Not manufactured in a food-
plant/factory but instead, grown in
nature.
Male, age 48
NO ARTIFICIAL INGREDIENTS OR FLAVORS
It should mean no artificial ingredients,
but that is why I read the labels.
Female, age 49
No man-made ingredients.
Female, age 61

Two-thirds think it is very important to ensure all people have
access to healthy food.
6
Knowing that the global population will rise from 7 billion to 9.5 billion by the year 2050, how important do
you think it is to ensure all people have access to healthy food?
2016 n=1,003
85%THINK IT IS IMPORTANT
Who is more likely to see
it as important?
• Age 50-80
• College grads
• Higher income
• Women

Seven in 10 see modern agricultural practices as having at least a
small role in ensuring that all people have access to healthy food.
7
Do you see a role for modern agricultural practices (precision farming, biotechnology, etc.) in ensuring that
all people have access to healthy food?
2016 if believes important to ensure all have access to healthy food n=861
70%SEE A ROLE
a role?
• College grads
• Higher income
• Men

Seven in 10 think it is important that food products are
produced in a sustainable way.
8
How important is it to you that food products you purchase or consume are produced in a sustainable
way?
2016 n=1,003
73%THINK IT IS IMPORTANT
it as important?
• Age 50-80
• College grads
• Women
• In better health

Four in 10 find conserving the natural habitat and reducing the
amount of pesticides used to produce food to be important
ways to produce sustainable food.
9
What three aspects of producing food in a sustainable way are most important to you?
(Net of top three choices picked)
2016 If believes important that food products are produced sustainably n=751
Groups
more likely
to select:
Women, Lower
BMI
Age 35-80,
Women
Higher BMI
Age 50-80,
Higher income
Age 65-80
College grads
Groups more likely
to select:
Age 18-34, Higher income,
Men
Age 18-49
Those with children,
Lower BMI
Age 18-49, Lower income

People are split on whether they would pay more for food and
beverage products that are produced sustainably.
10
Are you willing to pay more for food and beverage products that are produced sustainably?
2016 n=1,003
Who is more likely to
pay?
• College grads
• Higher income
• Lower BMI
• In better health

Groups more likely to select:
College grads, Higher income, Men
College grads, Men
Men
College grads, Men, Those without
children
College grads, Men
Age 35-80, Women
Less than college, Lower income,
Women
A third need more information to make an informed decision of
the role of biotechnology.
11
As you may know, some food products and medicines are being developed with the help of scientific
techniques. One such technique is genetic engineering, which is used to produce crops and food products
known as “GMOs.”
Do you think there is a role for biotechnology (“GMOs”) in ...? (Select all that apply.)
2016 n=1,003

Net Agree
Groups more likely to
agree:
56% Age 50-80
53% Age 50-80
51%
Age 50-80, Those without
children
47% Age 50-80
37% Less than college
Half agree that modern agriculture produces nutritious foods,
safe foods, and high-quality foods.
In general, to what extent do you agree or disagree with the following statements about the use of modern
tools, equipment and technologies in agriculture? Modern agriculture...
12
2016 n=1,003

Groups more
likely to select:
College grads, Women
College grads
College grads, Women
Age 50-80, Women
Age 50-80, Women,
Those without children
Women, Lower BMI
Higher income, Lower BMI
Less than college, Men
Groups more
likely to select:
Lower income, In better health
College grads, Higher income,
Women, In better health
College grads, Women,
In better health
Women
Women
College grads, In better health
Less than college,
In worse health
Consumers are less impacted by labeling in restaurants than
they are at the grocery store.
13
Which of the following, if any, do you do on a regular basis? (Select all that apply.)
Eat at restaurants because
they advertised their foods
and beverages as...
Buy foods and beverages
because they are advertised
on the label as...
2016 Sample A n=502; Sample B n=501; There were no significant (.95 level) differences vs. 2015.
Natural
No added hormones or
steroids
Locally-sourced
Organic
Raised without antibiotics
Pesticide-free
Non-“GMO”
Sustainably sourced
None of the above
NEW
NEW

58%
53%
51%
51%
47%
35%
33%
25%
21%
11%
6%
Take leftovers home from restaurants
Use leftovers for cooking
Plan my meals
Make shopping lists
Use or freeze leftovers in a timely manner
Buy or order smaller portions
Buy smaller quantities of food
Prepare a large batch of food to freeze or eat
throughout the week
Use more frozen and canned foods with a longer
shelf life
Compost
None
Almost six in 10 try to reduce food waste by taking leftovers
home from restaurants.
Which of the following do you actively try to do to reduce the amount of food you waste/throw away?
(Select all that apply.)
14
2016 n=501
Age 65-80, College grads, Higher income
Age 50-80, Higher income
In better health
Age 50-80, Higher income, Women
Age 50-80, Those without children
College grads
Women
College grads, In better health
Age 65-80, In better health
Age 18-34, Those without children

The top contributors to food waste are forgetting about
perishables and purchasing too much fresh food.
What contributes the most to the amount of food waste you produce? (Please select just your top answer.)
15
2016 n=502
*Age 65-80 is even more likely to select than Age 35-64.
College grads
Age 18-34, Those who eat in less than 30 minutes
Those who eat in less than 30 minutes
Age 18-34
Higher BMI
Those without children, Lower BMI, In better health
Age 35-80*, Lower income

Sustainability Takeaways
• More consumers are citing sustainability as an important factor in
purchasing decisions.
• Despite this fact, consumers are split on whether they’d pay more
for sustainably produced products.
• Conserving natural habitats and reducing pesticides are the most
important aspects of sustainable production.
• Reducing food waste and carbon footprint are less important.
• Food production considerations are more important in the grocery store
than at restaurants.
16

Get Connected
 Foodinsight.org/2016-FHS
 @foodinsight

Bob Langert
Retired VP, Corporate Social
Responsibility & Sustainability
McDonald’s Corporation
Editor at Large
Green Biz Group

10 Evolutionary Ideas to
Win Over the Consumer for Good, Safe,
Affordable & Responsible Food
Winning Over the Consumer with Sustainability
3

1
From:
Customers Caring
To:
Customers Rewarding
5

QSC&V
Quality, Service, Cleanliness
& Value
7

QSC&V
Quality, Service, Cleanliness, Value
& Purpose
8

2
From:
Sustainability as a
Threat/Treehugging
To:
Sustainability as
Shared Value
11

I F W E D O N ’ T D E F I N E I T … T H E 1 %
U N S C I E N T F I C W I L L
12

GROWING OUR BUSINESS BY MAKING A
POSITIVE DIFFERENCE IN SOCIETY
13

3
From:
The What
To:
Adding the How and Why
15

4
From:
Crisis Management
To:
Anticipatory Issues
Management
17

5
From:
Leaning Solely on
Science
To:
Relying on Ethics and
Brand Reputation too
19

6
From:
Treating NGOs as the Enemy
To:
NGOs as Best Friends
21

Brand Story and Sustainability 22
Trust gap between companies and scientists/NGOs
Net Trust in Institutions,* Average of 22 Countries, 2012
22

EDF and McDONALD’S
Waste Reduction
Partnership Outcome
From the Outhouse to
the
White House

Unprecedented Results
• In 2006, after 120 days, McDonald’s negotiated a
moratorium on Amazon Soya
• The 2-year moratorium was extended in 2008, 2009, 2010
and again through 2015
25

With Dr. Temple
Grandin
Colorado State
University
Preeminent Animal
Welfare Scientist
McDonald’s
Transformed Animal
Welfare
In Animal
Agriculture….Globally
26

7
From:
Risk Aversion
To:
Leadership and Smart Risk
27

RISKTOLERANCE
SUSTAINABILITY LEADERSHIP
1 2 3 4 5
The Leadership Spectrum
Low
High
28

GOALCERTAINTY
SUSTAINABILITY LEADERSHIP
1 2 3 4 5
0%
100%
Benchmarking Competition Leadership
1. Design and build all new company
restaurants to be LEED certified by
2015
2. Reduce energy consumption in
company-owned restaurants 10%
3. Reduce water consumption in
company owned restaurants 10%
1. Ensure 100% of coffee is ethically sourced
2. Invest in farmers and communities by increasing
farmer loans to $20M by 2015
3. Build all new company-owned stores to achieve
LEED Certification
4. Reduce energy consumption by 25% in company
owned stores
5. Reduce water consumption by 25% in comp own
stores
6. Purchase renewable energy equivalent to 100%
of electricity used in global comp own stores
7. Implement front of store recycling in our comp
own stores
8. Serve 5% of beverages made in stores in
personal tumblers
9. Contribute 1 million hours of community service
per year
10. Engage a total of 50,000 young people to
innovate and take action in their communities
Serve 5% of beverages
made in stores in
personal tumblers
29

8
From:
Operating in Silos
To:
Extensive Engagement
30

Australian
Roundtable
Producer
Commerce &
Processing
Retail Civil Society Global
31

The Future of Beef Will Never Be the Same
32

9
From:
Getting Caught Doing Good
To:
Openly Engaging in the
Connected World
33

Regarding transparency -- the
producer’s response tends to be ‘we
have nothing to hide, but it’s none
of your business.’
Charlie Arnot, chief executive officer
at The Center for Food Integrity
34

10
From:
Telling Your Story
To:
Sharing; Having a Dialogue
35

Views from the Farm:
Insights about Soy’s Sustainability
IFT 2016
Presented by Josiah McClellan

ABOUT THE UNITED SOYBEAN BOARD
• Led by 70 soybean Farmer-
Directors
• Directs funds from the soy checkoff,
which is supported entirely by U.S.
soybean farmers
• Invests in research, marketing and
communication programs to
expand market

U.S.-GROWN SOYBEANS
• Soybeans are grown in
31 states
• 82.5 million acres
planted in 2016

THE SUSTAINABILITY OF SOY
• 97% of U.S. farms are family owned1
• Soybeans are an inherently sustainable crop, offering
environmental and agronomic benefits

BENEFITS OF U.S.-GROWN SOYBEANS
• U.S.-grown soybeans result in:
• Shorter supply chain for the food industry
• Reduced transportation costs
• Lower carbon footprint

• Regulations at the national, state
and local levels
• Environmental regulations
• Health and safety
• Food safety
• Worker safety
• Voluntary conservation programs
• More than $1 billion NRCS funding
• Public/private partnerships
• Best practices inside the farm gate
• Best practice adoption rates
• Regional customization
U.S. SOY
SUSTAINABILITY
ASSURANCE
PROTOCOL

TRACKING SUSTAINABILITY
• Monitoring and reporting sustainability performance
• Annual tracking of conservation outcomes
• Aligned with USDA sustainability goals
• Life cycle assessment
• Soybean meal and oil
• No additional cost
• Compatible with all supply chains
• Quantifying sustainability performance that comes with commodity
soybeans

BIOTECHNOLOGY AND
CONSERVATION TILLAGE Conservation Tillage Benefits2
• Cropland erosion reduced from
2.78 (1982) to 1.56 billion
tonnes/yr (2007)
• Wind erosion reduced by 90%
with 60% residue cover
• Clearing cropland sediments from
waterways and reservoirs can cost
$6 billion annually due to erosion

IMPROVING AGRICULTURE’S CARBON FOOTPRINT
• Carbon sequestration in no-till soils effectively reduces atmospheric
CO2
• 6.6 million ha of continuous no-till sequesters
8.8 million tonnes of CO2 annually
• Reduced fuel consumption through reduced field passes
• No-till saves 36.5L/ha fuel compared to moldboard plowing

• Soy’s domestic growing area: key
part of its sustainability
• Consumers claim sustainability
and domestic sourcing influence
purchase behavior
• Soybean oil and soy-based product
case studies affirm this influence
CONSUMER
PRIORITIES PUT
TO THE TEST

USB 100% SOYBEAN
OIL LABELING
PROGRAMS
• Launched in 2012
• Aims to move the food
industry toward labeling
vegetable oil as soybean oil
• Two retail partnership phases
• Vegetable oil labeled as
100% soybean oil
• U.S. grown

LABELING INSIGHTS
• 100% of bottlers would consider changing to a “100%
Soybean Oil” label with persuasive consumer demand3
• Only 4% of shoppers are aware that most vegetable oil
is 100% soybean oil4
• Just 1% of shoppers are aware that most soybean oil is
made with U.S.-grown soybeans4

83% of shoppers said that knowing most
vegetable oil is U.S.-grown 100% soybean
oil will influence their future cooking oil
purchase*
*As determined by a post-promotion
consumer survey conducted by Schnucks

USB partnered with a large Midwest
grocery retailer (230+ locations) who
promoted its vegetable oil as
“U.S.-Grown 100% Soybean Oil”
Campaign Elements
• In-store advertising (shelf talkers,
bottle neckers and aisle blades)
• Shopper education (in-store food
sampling demos)
USB 2015 CASE
STUDY – PRIVATE
LABEL VEGETABLE OIL

• 27% unit sales increase;
• 15 stores saw more than a 100%
increase5
PRIVATE LABEL
VEGETABLE OIL
SALES RESULTS

SHOPPER FEEDBACK
• 87% of consumers said they are more likely to
purchase U.S.-grown 100% soybean oil after learning
the health benefits6
• When asked which messaging has the most impact on
future purchase, health benefit information (73%),
sustainably grown (64%) and U.S. grown (54%) were
listed6

USB 2015 CASE STUDY –
PACKAGED FOODS
USB partnered with a global
consumer goods company who called
out “U.S.-Grown 100% Soybean Oil”
as an ingredient in its mayonnaise
Campaign Elements
• In-store advertising (shelf tags,
bottle neckers and aisle blades)
• Recipe Cards

PACKAGED FOODS
SALES RESULTS • 7.7% sales increase as a result of
ingredient promotion7
• 58% of consumers influenced by
knowing that mayonnaise is made
from U.S.-grown soybeans8

SOURCES
1. Farm Size and the Organization of U.S. Crop Farming; Economic Research Report
No. (ERR-152) 61 pp, August 2013
2. Facilitating Conservation Farming Practices and Enhancing Environmental
Sustainability with Agricultural Biotechnology; Conservation Technology
Information Center; April 2010
3. 2012 United Soybean Board Oil Bottler Study
4. 2015 shopper intercept survey conducted by Schnucks
5. Sales data reported by large Midwest grocer
6. Post-promotion consumer survey conducted by the United Soybean Board
7. Sales data reported by global consumer goods company
8. Post-promotion consumer survey conducted by the United Soybean Board

Questions?
Josiah McClellan
Director of Food Market Issues and Sustainability
United Soybean Board
+1 314 579 1597
jmcclellan@smithbucklin.com

Sustainability in the Marketplace

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