Consumers Have Misguided Beliefs About Dairy Product Sustainability

Consumers Often Have Misguided Beliefs About Dairy Industry’s Product Sustainability

BY CAROLINE K. REFF

“I t’s not what you look at that matters, it’s what you see.” – Henry David Thoreau What consumers think about sustainability in the dairy industry and its products – from farm to table – may not be completely accurate, but it doesn’t matter. Unfortunately, what does matter is what people believe to be true, as that is what drives them towards – or away—from dairy. The challenge is making sure that what consumers “see” is, in fact, the truth about the dairy industry’s commitment to sustainability.

MilkPEP recently presented Sustainability in the Beverage Category: What Milk Processors Need to Know About the Latest Consumer Research, a webinar to give those in the dairy industry a closer look at why the perception of sustainability is critical to telling consumers the true story of dairy. Webinar panelists included Mike Stammer, senior manager, insights and analytics, MilkPEP; James Kulp, representing the California Milk Processors Board; and Dana Colbert, vice president of Radius Global Market Research. The information presented was based on data from a recent qualitative survey of consumers who were asked about their product preferences based on how sustainable they considered them to be.

In the overall beverage space, sustainable practices are certainly important to consumers, but possibly not quite as much as some may like to believe. Yes, many consumers are concerned that products and processes do not deplete or compromise natural resources. They look not only at the product itself but also consider how the product came to be. They want to know that the producers and processors making these products are leaving a minimal impact on the environment through every step of the supply chain. This involves the consumers’ perception of everything from animal care, sustainable processing practices, eco-friendly packaging, transportation methods and what ingredients go into the product itself.

Data from a recent survey sponsored by MilkPEP, showed that consumers have different levels of commitment when it comes to sustainability. Some have a staunch commitment, only choosing products they perceive to positively (or at least not negatively) impact the

environment. Others are committed but need some personal benefit from the product, as well.

According to Colbert, “Consumers are most receptive to sustainability when it’s a ‘win-win’ scenario. It’s a ‘better for me, better for the planet,’ attitude that is actually impacting choices in the beverage space.”

As an example, one survey respondent noted, “I feel like we all benefit but most important for me is my own personal health and wellness because I feel like if I am good and healthy, then I can do my part and make sure everyone else is great, as well.”

IT’S ALL ABOUT THE BRANDS

In general, consumers, particularly Millennials and Generation Z, are drawn to brands that are seen as having a strong commitment to sustainability. Clothing brand Patagonia, for example, is known for using organic, recycled materials in its inventory. Cosmetics company LUSH offers minimal packaging and refills original containers to reduce waste, and Tesla is the first name consumers think of when it comes to leveraging Positioning dairy milk as a sustainable choice requires a joint effort between the farmers, individual brands and retailers working together to increase use of natural energy sources, minimize water waste, increase electric vehicles for transporting products and more.

alternative fuel courses for automobiles. These companies are extremely popular with those committed to sustainability not only for being environmentally responsible but also because they have shaped their narrative and told their story through marketing, packaging, advertising and various forms of social media.

Labels matter to consumers, and they are reading them carefully. Putting “organic” or “made from recycled materials” definitely draws consumers in. However, it seems only some are really putting their money where their mouth is. Research shows that while many like to say their purchasing is based on these details, the data often shows otherwise. Survey respondents had different perspectives: “I like the brands that detail it on their label about how they are sustainable” but also, “It’s not a deal breaker for me.”

BEVERAGE-SPECIFIC SUSTAINABILITY

While thus far this data has reflected overall consumer consumption, how does it apply to the beverage category, specifically dairy? According to MilkPEP, there is a tension between consumers saying that sustainable practices are important in the beverage space and their actual buying habits. While consumers do like to talk about the importance of sustainable practices, many are still choosing first based on taste, routine, price and health benefits.

According to the webinar, “To have sustainable impact choices in the beverage category, they need to be positioned as a win-win for the consumer and the environment.”

The data from MIlkPEP’s survey shows that today’s consumers want their beverages to have plentiful, natural and/or organic ingredients that are minimally processed and packaged ideally in glass bottles or recycled (or recyclable) containers. Their beverage preferences tend first toward tap water, coffees and tea that are easily replenishable and also organic juices. Next comes plant-based beverages that tend to carry the reputation with consumers that they are highly sustainable, even though the numerous resources it takes to turn oats or almonds into beverages is often overlooked.

While it may be hard to swallow, traditional dairy milk just doesn’t get the credit it should for being a sustainable beverage, according to this data. On a scale of most sustainable to least, oat “milk” was a clear winner with consumers, with almond and soy close behind. Organic milk came next, followed by yogurt, ultra-filtered milk, lactose-free milk and even water. Traditional milk was almost at the bottom of the consumer sustainability perception scale, beating out only one product: soda.

WHY THE MISPERCEPTIONS?

Traditional milk is just not getting the credit it deserves, according to the MilkPEP webinar. Why? Because many people base their opinions and personal assumptions on online searches, wordof-mouth from family and friends, recent anti-dairy documentaries; health, wellness or environmental blogs; YouTube and even traditional news channels. This is unlikely to change, so it is up to the dairy industry to provide the facts through some of these same outlets.

According to MilkPEP, positioning dairy milk as a sustainable choice requires a joint effort between the farmers, individual brands and retailers working together to increase use of natural energy sources, minimize water waste, increase electric vehicles for transporting products and more.

The good news is that these “weaker perceptions” of dairy milk’s sustainability don’t necessarily impact purchasing decisions, according to the webinar. “The biggest factor to me is price,” said one survey participant. “I do try to purchase sustainable items if the cost isn’t a huge impact on my family. However, I am not able to make all shopping decisions solely based on sustainability.” Another said, “Sustainability plays a role in my life, but it is not a complete determining factor for me purchasing something.”

THE OPPORTUNITIES

So, how does the dairy industry improve sustainability perceptions or, better yet, engrain the truth into the minds of consumers?

“The industry is already doing a lot, but it’s not really talked about, and we’re not getting a lot of credit for it,” said Grubb, adding that “the real power lies with the brands” in telling their own sustainability stories. “Be loud and proud! Now is not the time to be humble. Be proactive and connect with consumers on a deeper level. You can prove to your consumers that your products align with their values. Consumers just want to know that you are doing something to better the planet.”

Caroline K. Reff is the editor of Northeast Dairy magazine.

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