2017 Food and Beverage Trust Barometer - MCGA · SNAPSHOT OF FOOD & BEVERAGE TRUST • While trust in institutions around the world see a broad decline, food and beverage continues

THISEXIT

MARKET

In Today’s Global Food & Beverage Environment

A Conversation with Ag Communicators

June 7, 2017

SNAPSHOT OF FOOD & BEVERAGE TRUST

• While trust in institutions around the world see a broad decline,

food and beverage continues to earn trust with both the mass

population and the Informed Public.

• However, the gap between the mass population and Informed

Public saw its sharpest growth in the past five years. The sector’s

success in conversing with the Informed Public is threatening to

leave mass population behind in bigger ways than before.

• While food and beverage enjoys a higher trust level than business

writ large, it is crucial to proactively seek to earn more trust/protect

trust – use it responsibly or risk losing it.

• “Swing trusters” – the largest group of constituents – are the food

and beverage industry’s equivalent to “on-the-fence” voters, and

continue to be a key determiner in which way the trust pendulum

could swing.

Informed

Public

9 years in 20+ markets

Represents 13% of total global population

500 respondents in U.S. and China; 200 in all other countries

Must meet 4 criteria:

Ages 25-64

College educated

In top 25% of household income per age group in each country

Report significant media consumption and engagement in business news

General Online

Population

6 years in 25+ markets

Ages 18+

1,150 respondents per country

All slides show General Online Population unless otherwise noted

2017 Edelman Trust Barometer

Methodology

28-country global data margin of error: General Population +/-0.6% (N=32,200), Informed Public +/- 1.2% (N=6,200), Mass Population +/- 0.6% (26,000+). Country-

specific data margin of error: General Population +/- 2.9 ( N=1,150), Informed Public +/- 6.9% (N = min 200, varies by country), China and U.S. +/- 4.4% (N=500),

Mass Population +/- 3.0 to 3.6 (N =min 740, varies by country), half sample Global General Online Population +/- 0.8 (N=16,100).

3

17 years of data

33,000+ respondents total

All fieldwork was conducted

between October 13th and

November 16th, 2016

Online Survey in

28 Countries

Mass

Population

All population not including Informed Public

Represents 87% of total global population

50% 55 5348

42

53 52

43 41

Trust in All Four Institutions Declines

Source: 2017 Edelman Trust Barometer. Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right

using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) General Population,

28-country global total.

5

Percent trust in the four institutions of government,

business, media and NGOs, 2016 vs. 2017

Business MediaNGOs Government

Two of four institutions distrusted

Neutral

Trusted

Distrusted

-2 -1 -5 -1

20172016

6

Most Trusted

Business is the most trusted

among the 1 in 3 who are

uncertain about the system

The Last Retaining Wall:

Business Most Trusted

by the Uncertain


using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population, 28-

country global total, cut by “the system is failing’ segments. Q672-675, 678-680, 688-690. For details on how the “system failing” measure was calculated, please refer

to the Technical Appendix.

NeutralDistrust Trust

% trust in each

institution

Among those

who believe the

System

is Working

Among those

who are

Uncertain

Among those

who believe the

System

is Failing

Most Trusted

Most Trusted

NGOs 51 57 52

Business 47 58 58

Media 37 50 47

Government 29 53 62

When the System is Failing,

Companies Must Do More

Source: 2017 Edelman Trust Barometer Q80-639. How important is each of the following attributes to building your TRUST in a company? Use a 9-point scale where

one means that attribute is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box,

Importance) Data displayed is mean Top 2 Box rating for the listed items. Items were included if they were considered important by 50% or more of those who believe

the system is failing. General Population and cut by “the system is failing segments”, 28-country global total. Q672-675, 678-680, 688-690. For details on how the

“system failing” measure was calculated, please refer to the Technical Appendix.7

Percent who rate each attribute as important in building trust in a company

(top 5 most important shown)

56

56

58

59

62

65

66

67

68

72

Ethical business practices

Pays its fair share of taxes

Listens to customers

Offers high-quality products/services

Treats employees well

Among those who have

lost faith in the system,

expectations are higher

across the board

On average

+9 pts

higher expectations

System Failing

General Population

Partnerships/

programs to address

societal issues

Business practices/

crisis handlingFinancial earnings &

operational

performance

Employees Most Credible

Source: 2017 Edelman Trust Barometer. Q610. Who do you trust MOST to provide you with credible and honest information about a company's financial earnings and operational

performance, and top leadership’s accomplishments? Q611. A company’s business practices, both positive and negative, and its handling of a crisis? Q612. A company’s employee

programs, benefits and working conditions, and how a company serves its customers and prioritizes customer needs ahead of company profits? Q613. A company’s partnerships

with NGOs and effort to address societal issues, including those to positively impact the local community? Q614. A company’s innovation efforts and new product development?

Q615. A company’s stand on issues related to the industry in which it operates? General Population, 28-country global total, question asked of one-quarter of the sample.8

Most trusted spokesperson to communicate each topic

Innovation effortsTreatment of

employees/customersViews on

industry issues

Company CEO

Senior executive

Employee

Activist consumer

Academic

Media spokesperson

1720 21

2426

2121 22 23

31

2623

53

38 37

33 3230

28 29 29

2522

29

16

22 22 2123 22

9 911 11

13 14

Which is more believable?

Talk With, Not At

9

Source: 2017 Edelman Trust Barometer Q754. You are about to see a series of two choices. Each choice describes a different source of information, a

different format for presenting information, or a different style of communicating information. For each pair, we want you to choose the one that you are

more likely to believe is giving you the truth. While we know that some of these choices may not be easy, please do your best to select only one of the two

options given-the one that is most likely to be true most often. General Population, 28-country global total, choices shown to half the sample.

51% Personal

experience

49% Data

57% Spontaneous

speaker

43% Rehearsed

speaker

54% Blunt and

outspoken

46% Diplomatic

and polite

62% Company’s

social media

38% Advertising

Food and Beverage More Trusted Than Business

11

Trust in business vs. trust in food & beverage, 2017

Trust in Business

Trust in the Food & Beverage Sector

52%

66% Trust in Food &

Beverage higher than

trust in business in all

countries

Trust in Food &

Beverage rises in all

countries but Brazil,

Canada, Ireland, Italy,

and the UAE

Source: 2017 Edelman Trust Barometer. Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one

means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust). Q45-429. Please indicate how much you trust businesses in each of the following industries to

do what is right. Again, please use the same nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust). General Population,


Key Themes to Maintain Position

12

Two themes to keep in mind

The Gap is GrowingThe gap between the mass population

and Informed Public saw its sharpest

growth in the past five years. The

sector’s success in conversing with the

Informed Public is threatening to leave

mass population behind in bigger ways

than before.

Trust is Fragile“Swing trusters” – the largest group of

constituents – are the food and

beverage industry’s equivalent to on-

the-fence voters, and continue to be a

key determiner in which way the trust

pendulum could swing.

Food & Beverage More Trusted Than Business

Across All Markets

13

Percent trust in business vs. trust in food & beverage, 2017

52 51 50

58

6764

61

4541

45 46

60

43

5046

55

4340 39

56

64

74

67

3429

41

56 58

76

48

66 66 66

73

81 7973

68

55

68

54

66

6062

6864

51 5246

6873

85

71

64

52

59

73 76

84

70

Glo

ba

l 2

8

GD

P 5

Ca

na

da

U.S

.

Me

xic

o

Co

lom

bia

Bra

zil

Arg

en

tin

a

Ire

land

U.K

.

Sw

ede

n

Ne

the

rla

nd

s

Ge

rma

ny

Fra

nce

Sp

ain

Ita

ly

Turk

ey

Po

land

Ru

ssia

S. A

fric

a

UA

E

India

Ch

ina

Ho

ng

Ko

ng

S. K

ore

a

Ja

pa

n

Ma

laysia

Sin

ga

po

re

Indo

ne

sia

Au

str

alia

50%

+22 +9 +12 +7 +12 +9 +11 +4 +30 +23 +18 +17 +18 +8 +22+16 +15+14 +12+8 +6 +17+23+12 +23 +14+14 +15 +8+15


using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust). Q45-429. Please

indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where one means that you

“do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust). General Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K.

Food and BeverageBusiness

63 6364

6364

66

47

5049 49

5352

2012 2013 2014 2015 2016 2017

Trust in Food & Beverage Sector Rising

14

Percent trust in business vs. trust in the Food & Beverage sector, 2012 to 2017

Food & Beverage

Business

6667 67

6667

73

54

58 5856

6263

2012 2013 2014 2015 2016 2017

General

Population

Informed

Public


using a nine-point scale, where one means that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust) Q45-429. Please

indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you

“do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust). General Population and Informed Public, 25-country global total.

2017: Trust Gap Widens

Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please

use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public

and Mass Population, 25-country global total.

15

Percent trust in food and beverage, 2012 to 2017 (25-country global total)

16 pts

16 pts

14 pts

66

67

73

63 63

65

2012 2016 2017

Informed

Public

8pt

Gap

3pt

Gap

A 4-point

increase in

the last year

4pt

Gap

Largest Gaps

Mass

Population

Spain

South Korea

UAE

66 66

4651 52 52 54 55

59 60 62 64 64 66 66 68 68 68 68 70 71 73 73 73 7376

79 8184 85

Glo

ba

l 2

8

GD

P 5

Ru

ssia

Turk

ey

Po

land

S. K

ore

a

Sw

ed

en

Ire

land

Ja

pa

n

Ge

rma

ny

Fra

nce

Ho

ng

Ko

ng

Ita

ly

Ca

na

da

Ne

the

rla

nd

s

Arg

en

tin

a

S. A

fric

a

Sp

ain

U.K

.

Au

str

alia

Ch

ina

Bra

zil

Ma

laysia

UA

E

U.S

.

Sin

ga

po

re

Colo

mb

ia

Me

xic

o

Indo

ne

sia

India

50%

Food & Beverage Sector

Trusted Across Most Markets


use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General

Population, 28-country global total.

GDP 5 = U.S., China, Japan, Germany, U.K. 16

Percent trust in the Food & Beverage sector, 2016 vs. 2017

Trusted in 21 countries

+4 +1 +1 +4 +2 +1 0 +5 -1 +3 +8 +3 +2 +9 +10+3 +6+3 0+4 +5 0+3+3 -5 +7+2 +4 +1+3

Declines in 2 countries

Y-to-Y Change+−


74 73

5458 59 59

62 63 64 65 66 6771 71 72 73 73 74 75

78 79 81 81 82 82 82 8287 88 88

Glo

ba

l 2

8

GD

P 5

Ru

ssia

Turk

ey

Po

land

Sw

ed

en

Ire

land

Ja

pa

n

Ne

the

rla

nd

s

S. K

ore

a

Ge

rma

ny

S. A

fric

a

Ca

na

da

Ita

ly

Fra

nce

Ho

ng

Ko

ng

U.K

.

Arg

en

tin

a

Au

str

alia

Sin

ga

po

re

Ma

laysia

Bra

zil

Ch

ina

Colo

mb

ia

Me

xic

o

Sp

ain

U.S

.

UA

E

India

Indo

ne

sia

50%

Among Informed Public, Food & Beverage

Sector Trusted in Nearly All Markets


use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Public,


GDP 5 = U.S., China, Japan, Germany, U.K. 17

Percent trust in the Food & Beverage sector, 2016 vs. 2017, Informed PublicY-to-Y Change+−


+13 +11 +8 -2 +5 +3 0 0 0 -6 +9 +3 +15 +6 +8+9 +6+5 +3+13 -8 +5+120 +9 +3+10 +3 +2+5

Trusted in 24 countries

Declines in 3 countries

The Food & Beverage Sector as a Whole Sees a

Larger Trust Increase than its Subsectors


use the same nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Q62D-

67D;Q52. Now thinking about specific sectors within the food industry, please indicate how much you trust businesses in each of the following sectors to do what is

right. Again, please use the same 9-point scale where one means that you "do not trust them at all" and nine means that you "trust them a great deal". (Top 4 Box,

Trust), question asked of one-fifth of the sample. General Population, 28-country global total.18

Trust in Food and Beverage subsectors; and percentage point change from 2016 to 2017

66 6862

51

66 70

58

Food &

Beverage

Industry

Grocery,

Supermarkets &

Food Retailers

Food

&

Beverage

Manufacturers

Fast Food

Restaurants

Agribusiness Farming &

Fishery

Brewing &

Spirits

+1 +2 +2 +2 +1+3 +2

Y-to-Y Change+−

Among Food & Beverage Subsectors,

Trust Gap Highest in Brewing and Spirits

19

Percent trust in business, the food and beverage sector and subsectors

65

74

57

69 70 73 74 77

50

65

50

57 61 6467 69

Food and

beverage

Business

Trust in food and beverage industry subsectors

Food and

beverage

manufacturers

Fast food

restaurants

Agri-

business

Farming

and

fishery

Grocery,

supermarkets

and food

retailers

Informed

Public

Brewing

and spirits

Source: 2017 Edelman Trust Barometer. Q11-620. Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a nine-point scale, where one means

that you “do not trust them at all” and nine means that you “trust them a great deal.” (Top 4 Box, Trust). Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is

right. Again, please use the same nine-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust). Q62D-67D;Q52. Now thinking about

specific sectors within the food industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you

"do not trust them at all" and nine means that you "trust them a great deal". (Top 4 Box, Trust), question asked of one-fifth of the sample. Informed Public and Mass Population, 28-country global total.

Mass

Population

15 9 7 12 9 9 7 8

Trust Gap

Across Subsectors, Weak Trusters Increase Trust Fragility

Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where

one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (High Trust, Codes 8-9), (Weak Trust, Codes 6-7), (Neutral, Code 5), (Distrusters, Bottom 4 Box) Q62D-

67D;Q52. Now thinking about specific sectors within the food industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point

scale where one means that you "do not trust them at all" and nine means that you "trust them a great deal". (High Trust, Codes 8-9), (Weak Trust, Codes 6-7), (Neutral, Code 5), (Distrusters, Bottom 4 Box),

question asked of one-fifth of the sample. General Population, 28-country global total.20

Percent trust in various industry subsectors, General Population

Digging deeper into

Trusters, Neutrals and

Distrusters reveals

industry and subsector

vulnerability.

High Trusters (8,9)

Weak Trusters (6,7)

Neutral (5)

Distrusters (1-4)

16 1419

30

15 1322

16 16

17

18

1514

17

41 4341

36

4141

38

26 2522

15

25 2920

Food &

Beverage

Industry

Grocery,

Supermarkets &

Food Retailers

Food &

Beverage

Manufacturers

Fast Food

Restaurants

Agribusiness Farming &

Fishery

Brewing &

Spirits

Moveable Middle Offers Big Opportunity – and Big Risk

21

Percent trust in various industry subsectors, General Population

Swing Trusters57 59

58

54

56 55

Food &

Beverage

Industry

Grocery,

Supermarkets &

Food Retailers

Food &

Beverage

Manufacturers

Fast Food

Restaurants

Agribusiness Farming

&

Fishery

Brewing

&

Spirits

55

High Trusters (8,9)

Swing Trusters (5-7)

Distrusters (1-4)

Source: 2017 Edelman Trust Barometer. Q45-429. Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same nine-point scale where

one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (High Trust, Codes 8-9), (Weak Trust, Codes 6-7), (Neutral, Code 5), (Distrusters, Bottom 4 Box) Q62D-

67D;Q52. Now thinking about specific sectors within the food industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point

scale where one means that you "do not trust them at all" and nine means that you "trust them a great deal". (High Trust, Codes 8-9), (Weak Trust, Codes 6-7), (Neutral, Code 5), (Distrusters, Bottom 4 Box),

question asked of one-fifth of the sample. General Population, 28-country global total.

Trust-Building Behaviors:

Transparency and Authenticity Shows the Largest Gap

Importance vs. performance of behavior in building trust in a food and beverage company

22

63

66

66

63

67

72

81

82

83

84

85

85

Has leadership that effectively represents theinterests of all stakeholders

Develops innovations that have a positive impacton my life and the world

Contributes to the greater good

Is transparent and authentic in how it operates

Protects consumer data

Ensures quality control

Importance

Performance

13

Performance

Gap

18

21

17

16

18

Source: 2017 Edelman Trust Barometer. Q336-657. How important is each of the following behaviors to building your TRUST in a company? Use a 9-point scale where one means

that behavior is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4 Box, Importance) Q347B-347M.

How well do you think the food and beverage industry is performing on the behaviors listed below. Use a 9-point scale where one means they are “performing extremely poorly” and

nine means they are “performing extremely well”. (Top 4 Box, Performing), question asked of one-fifth of the sample. General Population, 28-country global total.

Technology HealthFood &

Beverage

Financial

ServicesEnergy

Is transparent and authentic in how it operates 16 23 21 24 23Has leadership that effectively represents the interests of all

stakeholders, including customers, employees and partners 13 20 18 20 20

Protects consumer data 14 16 18 16 18

Contributes to the greater good 10 13 17 22 17Develops innovations that have a positive impact on my life and the

world 3 13 16 19 15

Ensures quality control 9 16 13 18 16

AVERAGE GAP 11 17 17 20 18

Sector Falling Short on Trust-Building Behaviors

23

Gap in importance of behaviors in building trust vs. percent who agree each industry is

performing well against these behaviors

Source: 2017 Edelman Trust Barometer. Q336-657. How important is each of the following behaviors to building your TRUST in a company? Use a 9-point scale

where one means that behavior is “not at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 4

Box, Importance) Q344B-348M. How well do you think the [INSERT SECTOR] industry is performing on the behaviors listed below. Use a 9-point scale where one

means they are “performing extremely poorly” and nine means they are “performing extremely well”. (Top 4 Box, Performing), question asked of one-fifth of the

sample. General Population, 28-country global total.

Food for Thought

Source: 2017 Edelman Trust Barometer. Q661-664. For each of the statements below, please indicate how much you agree or disagree. (Top 4 Box, Agree), question

asked of one-fifth of the sample. General Population, 28-country global total.

24

86% Think media should be more accurate and balanced in reporting about F&B safety, nutrition and related health issues

70%Agree that policy makers should tax foods that negatively impact health

83%Agree policy makers have a role in ensuring the production of food and beverages does not harm the environment

Media EnvironmentTax Policy

78% Agree policy makers are responsible for encouraging healthier food and beverage choices

Policy

Documents

2017 Food and Beverage Trust Barometer - MCGA · SNAPSHOT OF FOOD & BEVERAGE TRUST • While trust in institutions around the world see a broad decline, food and beverage continues