‘Local’ supplanting ‘organic’
in consumer preferences

by Pan Demetrakakes
Executive Editor

Food shoppers prize local foods and, in some cases, may value them above organic, according to a pair of recent studies.

An Ohio State University study showed that shoppers are willing to pay a premium for locally produced products—at farmers’ markets, almost twice as much. The study, which appeared in the May issue of the American Journal of Agricultural Economics, was based on 477 surveys in Ohio grocery stores and farmers’ markets.

The survey offered respondents a choice between two baskets of strawberries, each presented with a variety of factors involving price, farm location and type, and freshness guarantees. Respondents at grocery stores were willing to pay an average of 48 cents more for strawberries produced locally, and shoppers at farm markets, 92 cents extra.

Under one scenario, respondents were offered a choice between berries labeled “Fred’s” and “Berries Inc.” The former won out, with grocery shoppers willing to pay 17 cents more for the product with the less-corporate name; farmers’ market shoppers were willing to pay 42 cents more.

“Farmers could actually be a little less efficient on the production side and still be more profitable on the revenue side if they can capture that premium price,” said Ohio State professor Marvin Butte, the study’s co-author.

Another study, by the Food Marketing Institute, showed that local food products have stronger appeal for consumers than organic ones.

FMI’s 16th annual Shopping for Health survey revealed that when local and organic versions of a theoretical product cost the same, 50% would choose the local version, 28% the organic one. The survey also showed that, of respondents who said they have stopped buying organic products, 70% cited high cost as the main reason.

“The battle between organic and locally grown represents who shoppers believe can deliver the freshest produce,” Cary Silvers, director of consumer insights for Rodale, the publisher of Prevention magazine, said when he offered the results at the recent FMI trade show in Las Vegas.

Price is certainly the biggest issue, but consumer mistrust of large food companies may also enter into the equation. As organic products increasingly become the province of major corporations like Kellogg and General Mills, consumers may be left wondering whether there’s a true value proposition involved.

TOP DEVELOPMENTS

Consumers growing tired of greenwashing
Consumers are demanding stronger proof of sincerity from consumer goods companies in terms of sustainability, according to the Natural Marketing Institute. In a recent update to its 2007 report on LOHAS (lifestyles of health and sustainability) consumers, the NMI indicated that while consumers are willing to consider their environmental responsibility when making purchases, skepticism due to greenwashing is causing them to seek credibility through a reliable third-party source. Clear and concise corporate social responsibility messaging should be provided to alleviate confusion; the more confused customers get, the more likely they will stop purchasing sustainable products.

Nestlé opts out of children’s advertising standard
Nestlé SA has refused to join an initiative from the Council of Better Business Bureaus to set nutrition standards on foods marketed toward children. The campaign is similar to a pledge in Canada and Europe that the company signed last December to stop advertising junk food to children under 12 to avoid a European Commission ban. If the U.S. initiative fails, the Federal Communications Commission could ban or limit the amount of all junk food ads, or even prohibit broadcasters’ license renewal if they air junk food ads during children’s programming.

Chicken-cleansing ban lift disputed
A proposal by the European Food Safety Authority to lift a European Commission ban against imports of U.S. poultry is facing scrutiny by members of the European Parliament (MEP). At issue is the use of chlorinated, reused water to rinse chickens, which is standard practice at U.S. poultry plants. Some MEPs claim that using chlorinated water on poultry threatens food quality and safety standards. If the ban is lifted, it will open the door for the first time since 1997 for U.S. poultry products to be sold in EC nations.

NEW PACKAGES

M&M carton holds ice-cream bars
Mars Inc. is marketing an M&M ice-cream novelty in a paperboard carton reminiscent of its iconic M&M candy container. The carton has roughly the length-to-height ratio of a paperboard carton for M&M candy, with horizontally oriented graphics. The product is a round vanilla ice-cream bar, with a candy shell over a chocolate coating, bearing the trademark “m.” The stick holding the bar has a riddle at the base whose answer is at the tip, concealed by the product.

Mrs. Fields gets a makeover
Mrs. Fields cookies, one of the most prominent brands of premium cookies, has undergone a graphics makeover for its signature peaked-top paperboard carton. The new packaging for cookies from Mrs. Fields Famous Brands LLC retains the signature elements of the old graphics, including the vivid red background, typography and product shots. But the new product shot is larger, more appealing in color, and completely fills the front panel below the product logo, instead of floating as a cut-out. The new label also includes a no-trans-fats claim. The new packaging coincides with an improved formulation.