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It's Official: Customers Prefer Sustainable Companies 

 

When we built the Barefoot Wine brand, we lived and died on the latest Nielsen ratings. So if you are in the ​packaged goods space​,  you want to pay careful attention to the latest Nielsen report  "How and Why Sustainability is Gaining Momentum with  Customers."    For the purposes of this report, Nielsen chose to study purchases  of three of the most common fast-moving consumer goods,  coffee, chocolate, and bath products, because of their differences  from each other. What they found was that products with  sustainability claims generally outperformed the growth rate of  total products in their respective categories.   


For instance, based on sales for the 52-week period ending 3/24/2018, the weighted average of all three categories showed 3  percent m ​ ore growth​ for sustainable products. Sustainable coffee  11 percent more, sustainable chocolate 2 percent more and  sustainable bath products 13 percent more than the total of their  respective categories.    In the case of coffee, brands advertising environmental  sustainability can claim greater retail shelf placement because of  increasing demand. Having built a retail brand ourselves, and  have had to fight over precious shelf placement, we can attest  that this is a very big deal. Better shelf placement generally  means better sales.    According to the Nielsen report, "Brands that are able to  strategically connect (sustainability) to actual behavior are in a  good place to capitalize on increased consumer expectation and  demand." The report adds, that "Sustainability claims on  packaging must also reflect how a company operates inside and  out."    In other words, customers want sustainable products from  sustainable companies.     This includes everything from labor practices to the  environmental impact of t​ heir production​. We caught up with  Tim Grosse, who has written extensively on this subject and is  the CEO and founder of E Squared Energy Advisors. He says,  "This new consumer sustainability report from Nielsen  reinforces what we have been advocating for in terms of  sustainable energy programs and technologies that reduce the  planet's carbon footprint." 


He further states, "This is official validation for how energy and sustainability work together to boost your top-line revenue  growth and your profitability at the same time. Your business can  ride this tsunami wave by gaining market share from the rapidly  growing number of environmentally responsible consumers or  your business can lag the market and peers by ignoring this  trend."    For years we have been saying ​consumers vote with their  purchases​. It's nice to see the world's most respected sales  research and analytics company finally prove it and do so in  terms that any company can understand, sales! With the rapid  increase in climate-related news, damage and hazards to health,  this new mega-trend can do nothing but accelerate.    The Fourth National Climate Assessment mandated by Congress  a decade ago was just released. According to Tony Barboza of the  Los Angeles Times, the report by 13 federal agencies found that  climate change is now being felt in communities across the  country.     "It projects widespread and growing devastation as temperatures  and sea levels rise with worsening wildfires and more intense  storms bringing cascading harmful effects to our ecosystems  infrastructure and society." The report calls for immediate steps  to reduce carbon emissions.    In other words, consumers are already being affected by the  purchases they have made in the past. They know they must  change their spending habits now for the sake of their own health  and that of their children. Oh, and that millennial market that 


everyone has been trying to crack? Who has the most to lose? The millennials of course! They and the next generations behind  them will live the ​longest in an increasingly compromised  environment.    As the Nielsen report concludes, "No matter what, sustainability  is no longer a niche play: your bottom-line and brand growth  depend on it."    But as Grosse says, "Energy efficient alternatives, such as chiller  and HVAC optimization, LED lighting retrofits, and solar energy  are a huge piece of the sustainability puzzle. With the recent price  shifts, these technologies are very economical as well. In fact,  many solutions provide almost immediate positive cash flow  while dramatically lowering a company's carbon footprint." He  adds, "Companies that embrace new energy technologies enjoy a  triple-bottom-line win in productivity, profits, and planet."      So now, energy efficiency is not only desirable, it's sustainable,  and it's doable!    The Nielsen report says "Unmet consumer needs exist across  many categories. Strategically aligning your business and  marketing strategy to meet that unmet demand will ensure that  the next big sustainability wave is a market win for your brand."  It's time to jump on the energy and sustainability bandwagon  now … or miss the boat!   

Profile for Mizanur Rahman

It's Official: Customers Prefer Sustainable Companies  

When we built the Barefoot Wine brand, we lived and died on thelatest Nielsen ratings. So if you are in the packaged goods space , you want...

It's Official: Customers Prefer Sustainable Companies  

When we built the Barefoot Wine brand, we lived and died on thelatest Nielsen ratings. So if you are in the packaged goods space , you want...

Profile for mizansoft
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