Home > Behavioural Economics > Major food companies fear big losses with a bit of nudging

Major food companies fear big losses with a bit of nudging

Choice ArchitectureA HT to colleague David Parr for this very interesting piece from Fortune magazine. The article is quite long but here are some of the highlights.

The top 25 U.S. food and beverage companies have lost an equivalent of $18 billion in market share since 2009 as shoppers are choosing fresh and organic alternatives.
“There’s enormous doubt and skepticism about whether large companies can deliver naturality and authenticity.”

Try this simple test. Say the following out loud: Artificial colors and flavors. Pesticides. Preservatives. High-fructose corn syrup. Growth hormones. Antibiotics. Gluten. Genetically modified organisms.

If any one of these terms raised a hair on the back of your neck, left a sour taste in your mouth, or made your lips purse with disdain, you are part of Big Food’s multibillion-dollar problem.
It’s pretty simple what people want now: simplicity. Which translates, most of the time, to less: less of the ingredients they can’t actually picture in their head.

Full article at this link: http://fortune.com/2015/05/21/the-war-on-big-food/

The U.S. Department of Agriculture (USDA) is suggesting major changes to grocery stores to “nudge” Americans to purchase healthier foods when they shop. Two preferred strategies—offering discount coupons for healthy food and changes to store marketing—will be examined in pilot studies. The USDA envisions that supermarkets, superstores, small grocers, specialty stores, and farmers markets would adopt changes in the future through an agency program.

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