• by Karlene Lukovitz  @KLmarketdaily, July 11, 2008

Today, food marketers need to understand not only which claims and wording are appropriate for their products, but which resonate with distinct groups of consumers, says Ramin Ganeshram, director and consumer strategist, food/beverage for trend-spotting/analysis firm Iconoculture.

Since the "organic" term on labels has become ubiquitous and therefore diluted, "mounds of new labels are popping up to take its place in the 'notice-me' game," Ganeshram says. "Understanding your customer's specific informational cravings is vital to making labels stand out and combating growing consumer skepticism. Consumers want even higher, provable standards and labels that tell an appealing and truthful story."

Most newer food and beverage labels can be grouped into four categories, she explains: Safety, (non-GMO, rBGH-free and VeriPrime), heritage (protected designation of origin, country of origin), sustainability (fair trade, sustainably farmed, Rainforest Alliance, shade-grown, locally grown, protected harvest) and humane (Certified Humane Raised and Handled, American Humane Certified, cage-free, pastured). But there are also four types of label-conscious shoppers, and some are interested in multiple label categories. The first of these is safety shoppers, those who are primarily concerned with knowing that foods are safe, pure and healthy. Gen-X parents are a demographic "hot spot" within this segment. Label categories that resonate include "safety," "humane" (treatment of livestock is often equated with safer meat) and "heritage" (country-of-origin may enhance safety perception.) Examples of best labeling practices for safety shoppers include "rBGH-free" milk labels and "no antibiotics" meat/poultry labels.

The second is taste shoppers. These consumers value freshness, artisanal quality and small-scale regional production. Affluent Boomers are a demographic hot spot. Label categories that resonate with taste shoppers "heritage" (implying authentic flavor) and "humane" (less-stressed animals produce tastier meat). Labeling opportunities include calling out local sourcing (even on mass-market goods), telling a "story" around the producer and enhancing premium image by associating the product with regional traditions. If some ingredients are locally sourced, consider a farm-to-table chart or story about this on packaging, Ganeshram suggests.

Third is eco shoppers. Hearing that a product isn't contributing to land, water and air resource problems isn't enough for this group. They want a factual rationale for how it's protecting resources. Millennials and Boomers are demographic hot spots. Resonant label categories for eco shoppers include "sustainability" and "humane." Tesco's carbon miles labeling, being tested in the U.K., is a best-practice example. Ganeshram recommends addressing not just a product's production, but its impact along the food chain. Consider carbon labeling, participate in carbon-offset programs, and cite your carbon stats within the context of comparative ratings.

Lastly are ethical shoppers, who want to know that those producing the food get a fair wage within sustainable local environments, and that animals in the food chain are being treated respectfully. Millennials and Boomers are demographic hot spots. Resonant label categories for ethical shoppers include "humane" and "sustainability." Best practice examples include Murray's Chicken's "Certified Humane" labeling and Horizon Organics's dairy farmer profiles. Labeling opportunities include explaining how animals are raised or telling a story about the local farmer/producer.