Our Purpose — Real food that matters for life’s moments — guides how we think about nutrition and health. It is our North Star amidst today’s dramatically shifting food landscape. As a key voice in the food industry, we must ensure that our products are relevant and meet the expectations of our nutrition-savvy consumers, who are increasingly demanding healthier and fresher food with minimal artificial ingredients and processing.
It is imperative for Campbell to stay abreast of changes in food and nutrition to better understand how we can provide our customers with the healthy food they desire and thus identify the opportunities we have for growth. In 2015, the food world continued to shift in unprecedented ways. These changes are reshaping the way food is grown, made, marketed, sold and consumed. In turn, an evolving food and nutrition landscape is fundamentally altering the way we think, talk and act about our products. We know that if we don’t evolve with these trends, we will not be able to thrive as a food company. Some of the trends influencing our food and nutrition strategy are:
Rise in Chronic Diseases
According to the 2015-2020 Dietary Guidelines for Americans, rates of chronic diseases related to poor-quality diet and physical inactivity have increased, with half of all U.S. adults having one or more preventable, diet-related chronic diseases, including cardiovascular disease, type 2 diabetes, and overweight and obesity.
Heightened Consumer Interest in Fresh and Healthy Foods
Consumer interest in health and wellness is growing as they recognize the role diet plays in health and well-being. They are demanding healthier, more “real foods,” which we define as foods with fewer artificial ingredients and minimal processing. Consumers are increasingly seeking fresh, natural, organic products and those made with ingredients they recognize. They are telling us to avoid artificial preservatives, colors and flavors and are seeking products with vegetables, whole grains and other components associated with good health.
Intersection of Health and Technology
We refer to the increased fusion of health and technology as society becoming “wired for well-being,” and it will have a profound impact on consumers’ food choices. People will soon make decisions about what to eat or what not to eat based on individual needs. Consumers are already leading “quantified lives” — tracking their activities and fitness through “wearables” that measure aspects of their overall health. The emerging trend in this area is bio-monitoring. We’re seeing it in health care and medicine, and it is only a matter of time before it impacts the food industry. In the future, consumers will no longer wonder about the “right food” for them because bio-sensors will scan their metabolism and recommend the “right” diets.
Our consumers are also increasingly using digital tools to shop and share their opinions about food. People love to socialize about the food they cook, shop for and eat. They take photos of their food and share, like and comment on their friends’ experiences through social media. This creates interesting opportunities for Campbell that we’re actively exploring.
Consumer Demand for Greater Transparency
Consumers today are savvy and have greater expectations of food companies to disclose how and where their food is made, which ingredients are used and how those ingredients are produced and sourced. In its 2015 Global Annual Review, PWC cited food integrity and transparency as one of four colliding megatrends, noting: “High profile contamination, adulteration and fraud incidents in the US, Europe and Asia have eroded public trust in the food industry, raising consumer awareness of food quality and ensuing safety risks. There is growing demand for higher quality food and transparency of food ingredients, origins and production processes, especially among the world’s growing urban middle class.”
Consumer demand and these evolving food trends, along with an industry call for greater transparency, were key drivers behind our decision to take a step back and give our nutrition strategy a refresh. In FY2015, we outlined our new corporate Strategic Imperatives, which included expanding our business in the areas of fresh and well-being. To help meet our new Strategic Imperatives, we implemented a major restructuring of the company. By reorganizing our business to prioritize food categories rather than regions, health and well-being became even more embedded into our products and overall corporate responsibility strategy. We will continue to accelerate growth in our Campbell Fresh division and expand into new categories in the packaged fresh category, as evidenced by our recent acquisition of Garden Fresh Gourmet.
We aspire, with this new approach, to make Campbell even more synonymous with real and better-for-you foods in the future. Moving forward, Campbell will continue to evolve its health and wellness strategies and policies to reflect these consumer demands. Currently, we are doing this by:
- measuring our progress;
- expanding our healthy product portfolio; and
- engaging and educating our consumers.