How can you increase sales by implementing food traceability?
- 1. How can you increase sales by implementing food traceability?
- 2. Looking at these trends, many consumers started to believe that the state of food safety becomes worse each year. The common dissatisfaction grows, which puts a growing pressure on food companies and authorities. Thanks to the technology advancements, cheaper and more accurate inspection technologies reveal more cases of contamination than earlier. At the same time, emotional headlines in the news, and the ability to share the news quickly through social media resulted that more and more people notice food scandals. Following the media, someone could think that the number of outbreaks and food frauds have been growing during the recent years.
- 3. This trend can be seen in survey results as well. Now three consumers from four are willing to change to a brand which provides more information. Label Insight and the Food Marketing Institute (FMI) Yes No Yes No Would you switch to a brand that provides more in-depth product information, beyond what’s provided on the physical label?
- 4. When you implement farm-to-table traceability, • You let your supply chain to log their activities in relation of the products/ingredients supplied to you, and • you allow your consumers to view these activities. By doing this, you ensure consumers that you believe in transparency. How can traceability help to restore the trust?
- 5. On a technical level, to store the traceability data you can use centralized databases, or blockchain technology. Using blockchain is a new, and popular technology to implement food traceability. As blockchain is an unmodifiable, incorruptible ledger technology, it provides credibility to the claims you make about your products.
- 6. When you implement food traceability, you display serialized QR codes on your products. When consumers scan those QR codes with their mobile phones, they see the events from the history of that exact product instance they hold in their hands. They see activities in a chronological order which can cover • activities on the farms • transports • quality inspection results • processing information • packaging information What should you show to consumers?
- 7. While traceability data is important to display, to engage consumers, you need to present it in a visually appealing way: • Photos and videos about the supply chain events (e.g. harvest, packaging, etc.) • Introducing suppliers • Explaining processes • Displaying quality inspection results and certifications Story of the product
- 8. Visitors of the traceability landing page are qualified leads. They are conscious shoppers, smartphone users, and they are actively interested in your product. You can use several ways to engage with them through the product history landing page. Engagement Survey Loyalty Event
- 9. A 2017 study by Response Media asked consumers about their food traceability preferences. Nine out of ten wanted to see transparency in • ingredients and their sources, • production and manufacturing processes, • shipping and handling, and • sustainability efforts of the food companies What should be the main message?
- 10. There are several concepts which resonate well with blockchain based traceability, and can form the brand image: Transparency • Provide proof about the provenance of food, the steps during processing, the quality inspections • Show the quality control certifications your suppliers comply with (especially in case of organic, or non-GMO farms) • Explain that by buying traceable food, consumers can be notified in case of food recalls, which adds another line of defense • Display the nutrition content of the food with interactive, personalized data (e.g. with gender/weight selection). Sustainability • Provide proof of the sustainability achievements in the food processing, packaging • Explain what steps were made towards sustainable energy and water consumption in the processes. • Show animal welfare certifications, or audits regarding child labor of your suppliers. • Explain how traceability leads to reduced food waste through optimized sourcing of the products.
- 11. Sustainability efforts on your web site is information no one reads. The same information for a hesitating shopper at the Point of Sale is the right push to close the deal. „ „
- 12. According to a 2017 study by Response Media, nearly all consumer segments find transparency in food and beverage important, and most of them responded that they would pay more for more transparent products. A particularly interested group was millennial moms, from which 100% said they would pay more. Two years earlier, Nielsen measured 75% of Millenials, and 51% of Baby Boomers are willing to pay extra for sustainable offerings. As millenial spending will represent 30% of total retail sales by 2020, the trend is clear. Which target groups are preferred?
- 13. NATURALITES LOHAS DRIFTERS LOHAS (Lifestyles of Health and Sustainability) is another consumer segment quickly growing in importance for traceability projects, as they are devoted to sustainable consumption. They prefer organic and locally grown food, sustainable production, and fair trade products. A food traceability program is an ideal way to prove how these initiatives are implemented in practice. While LOHAS being the main target segment, other groups according to the Sustainability Segmentation Model, like Naturalites and Drifters are also possible targets, but require more complex product presentation.
- 14. Traceability gives you the opportunity to explain how your sustanability initiatives are affecting your real world products.
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- 16. 6000 Supply chain companies trust us 400 000 Transactions daily 10 000 Users trained We are happy to help you exploring how blockchain based food traceability can help your business. Please reach out to us! Marton Ven - marton.ven@te-food.com