Winning with Big Food: Part 2

The battle between Big Food and small food was no more apparent than last month when the Brewers Association (BA) unveiled its Verified Independent Craft Brew seal.  The association—whose mission is to promote and protect America’s small and independent craft brewers—makes the seal free to all members.

Brewers Association Independent Craft Brew seal
Brewers Association Independent Craft Brew seal

The catch: Breweries must “run their business free of influence from other alcohol beverage companies, which are not themselves craft brewers.”

Cue frustrated response from a group of independent brewers who are technically owned (25% or more) by Big Beer:

"At the end of the day, the beer does the talking - not the label on the package - and the consumer makes up their own mind. The problem is, the Brewers Association continues to refuse to let the consumer make up their own mind and tries to make it up for them." Garrett Wales, Owner, 10 Barrel Brewing Co.

Why It’s Happening

Over the last few years, we’ve seen Big Food purchase smaller brands for a variety of reasons, yet the customer response is increasingly negative. They threaten boycotts, rant on social media and accuse independent owners of selling out. What’s behind the vitriol?

Consider the following:

  • *35% of U.S. consumers distrust big brands.
  • *60% of U.S. consumers distrust corporate America.

It all boils down to customers believing that Big Food will change—or destroy—what they know and love about the brand.

What We Think

Big Food should proactively prioritize building—or rebuilding—customer trust by focusing on the interpersonal customer relationship.

In their 2016 “Customer Quotient™ U.S. Report,” C Space reveals that customer trust “is about much more than having confidence in the reliability of a product. It is founded in the relationship.”

Big Food has done remarkably well in developing beloved brands that are high in quality, safe for families and delicious.  But in a world where those deliverables are considered table stakes, Big Food must also work to strengthen those personal connections customers have with the brand and the company behind it.

What’s Next

To get personal with customers, Big Food needs to be more personable.

Speak with an authentic human voice. Communicate like a real personremove the marketing fluff and the corporate talking points. We must say what we mean rather than forcing customers to interpret our message.

Case in point: In the days following a forcible removal of a passenger from a United Airlines flight in April 2017, the company’s CEO Oscar Munoz learned just how damaging corporate-speak can be in the midst of a scandal. On April 10, Munoz released a statement that was regarded as callous by customers. 

Corporate voice example from United

The statement caused a firestorm on social media and United Airlines’ stocks began tanking as news of the incident and the company’s response went viral. Less than a day later, Munoz issued a mea culpa to the press.

Human voice example from United

Highlight your people. Customers crave a personal connection, so help them get to know you on a deeper level. The Johnsonville Sausage campaign from 2016 is a great example; the ads were inspired by—and featured—real employees.

Keep Small-Brand Acquisitions Autonomous. The frequency of mergers and acquisitions within the food and beverage space is likely to continue for Big Food to realize continued growth. But to ensure those small-brand customers stay with you, Big Food must encourage any acquired company to stay true to its roots.

Stay tuned for our third and final installment of “Winning with Big Food” in September.

Missed Part 1? Read it here

*Source: “Untruth and Consequences.” Iconosphere 2017. Iconoculture Consumer Insights.

Rethinking a Facts-First Approach

Sanderson Farms isn’t backing down from its antibiotic use in poultry, despite most major players in the poultry  industry moving toward “no antibiotics ever”.  Faced with mounting customerand shareholdercriticism, the company released a comprehensive infographic backed by outside professional resources explaining its position.


(click to see full graphic)

The experts are reputable. The facts are correct. The rationale is sound. Yet I’m willing to bet this newest effort will fall on mostly deaf (and likely defiant) customer ears.

Why It’s Happening

At their 2017 Iconosphere research presentation “Untruth and Consequences,” strategists Lindsey Roeschke and Derek Stubbs argued when customers accuse brands of lyingas many Sanderson Farms customers have done when it comes to the safety of their chicken productsit has little to do with facts. Roeschke and Stubbs point out that today’s customer increasingly believes that a lie is “anything I disagree with.” We are now called liars when our company’s actions suddenly misalign with our customer’s personal values.

Roeschke and Stubbs aren’t alone in this assertion; the Oxford Dictionaries declared “post-truth” as the word of the year for 2016. Sanderson Farms’ current situation illustrates that post-truth has moved from politics to plate.

What We Think

Sanderson Farms would be more successful if they reprioritized its communication to values-first, facts-second.

The problem isn’t Sanderson Farms’ position, it’s how the company is arguing it. The company’s current approach seems to be “our facts are better than your facts;” an argument that is unwinnable with today’s customer. The disconnect here isn’t about facts. It’s about customers feeling that the safety of themselvesand their familiesis at risk and their concerns aren’t being acknowledged.

What’s Next

Changing our approach to prioritize values alignment requires us to rethink how we talk to customers about hot-button issues.

Identify the real issue. By looking beyond what they say, to what they mean, we can address our customers’ real concerns.

Identify the real issue.

Share their concern first. By acknowledging—and sharing—their real concerns upfront, we are putting our customers’ needs ahead of our own.

Share their concern first.

Follow it with the facts and/or company position. Facts are still important. But facts only matter when we trust the source. By placing values first, we help to build customer trust.

Follow it with the facts and/or company position.

Finish by reiterating the real issue. By bookending a response with the real issue, we reinforce our common ground.

Finish by reiterating the real issue.

 

Just some Thought for FoodTM

Questions, comments or want to learn more? Let's connect! akile@jtmega.com

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