A Comprehensive Guide for Food Retailers: Effectively Managing Food Product Attributes

Table of Contents:

1. The risks of relying on brands' self-reported attribute data

2. The limitations of relying on attributes from on-pack claims and certifications

3. Best practices for using product attributes for personalization and healthy shopping

4. Best practices for obtaining and tracking product dietary, health, & sustainability attributes

What are the risks for food retailers relying on brands' self-reported attribute data?

Attribute data self-reported by food manufacturers and brands is not unreliable and risky for food retailers to use for several reasons:

1. Bias and Subjectivity: When brands provide their own data, it can be biased or overly favorable. Companies will highlight positive attributes while downplaying or omitting negative aspects of their products, leading to a skewed representation that does not accurately reflect the true characteristics of the product.

   
   

2. Lack of Standardization: Different brands use varying criteria or methods to evaluate and report on the same attributes. This lack of standardization makes it difficult to compare products accurately across brands and classify products accurately within a catalog. This also complicates the deployment of reliable and consistent labeling in-store and filtering online.

   
   

3. Inaccuracy and Errors: Self-reporting can lead to errors or inaccuracies in the data due to misunderstanding, misinterpretation, and simple mistakes in data entry. Such inaccuracies can create inconsistencies in taxonomy or mislead consumers and damage the retailer's credibility if the misinformation is later exposed.

   
   

4. Outdated Information: Brands may not update their self-reported data regularly, leading to outdated information being available to retailers and consumers. This can affect product recommendations and purchasing decisions based on factors that may no longer be relevant or accurate.

   
   

5. Compliance and Verification Issues: Verifying self-reported data can be challenging and resource-intensive. Retailers may lack the necessary tools or expertise to validate every claim made by brands, potentially allowing unsubstantiated or false claims to reach consumers.

For these reasons, many food retailers are increasingly turning to third-party data providers like GreenChoice that offer cutting-edge technology solutions to gather, verify, and provide product content and attribute information. This helps ensure that the product data retailers use is accurate, unbiased, and standardized across all products, mitigating significant risks to the food retailer and enhancing consumer trust and decision-making.

What are the limitations for food retailers relying solely on attributes from on-pack claims and certifications?

Relying solely on on-pack claims and certifications for food product attributes presents several limitations for retailers:

1. Verification Challenges: While certifications are generally reliable as they are awarded by third parties following specific criteria, on-pack claims made by manufacturers themselves may not always be verified. This can lead to inconsistencies and potentially misleading claims. 

   
   

2. Limited Scope of Information: On-pack claims and certifications often focus on specific aspects of a product, such as being "organic" or "non-GMO". This often neglects other important factors consumers might be interested in, including dietary restrictions, carbon footprint, labor practices, or the overall nutritional profile.

   
   

3. Over-reliance on Certifications: Certifications do not cover all aspects of sustainability or health that are important to consumers. For example, a product might be certified organic but still be high in added sugars or unhealthy fats.

   
   

4. Consumer Understanding and Trust: With the rising number of certifications in the market many consumers don’t understand what different certifications actually mean. There’s also growing skepticism about the authenticity and importance of certain claims with XX% of consumers not trusting the food brands’ claims.

   
   

5. Lack of Differentiation: When many products have similar certifications, it becomes difficult for retailers to consolidate them to as shelf tags or filters and even harder for consumers to differentiate items.

   
   

6. Missing local and craft brands: Achieving and maintaining certifications can be costly for producers, leaving out many emerging brands that could qualify but can’t justify the spend. Additionally many products with certifications are priced at a premium, making these options less accessible to many consumers while there are still many healthy and sustainable options they can afford that may not carry the same certifications. 

   
   

7. Missing unbranded fresh foods: Most fresh produce, meat, seafood, and dairy items will not be captured by conventional data providers processing product images and extracting on-pack certifications and claims. That means your "keto-friendly" produce will never get tagged or come up in search results for keto foods.

   
   

8. Static Information: The information provided by on-pack claims and certifications does not change unless the packaging is redesigned, which can lead to outdated information staying on shelves if not updated frequently.

Retailers can address these limitations by integrating additional sources of information and using technology to offer more comprehensive and dynamically updated product attribute data. This approach can enhance the accuracy and depth of information available to consumers, aiding better decision-making.

What are best practices for food retailers using product attributes for personalization and healthy shopping in-store and online?

For food retailers aiming to enhance personalization and promote healthy shopping both in-store and online, following best practices can significantly improve the customer experience and satisfaction. Here are some key strategies:

1. Leverage Customer Data Analytics to Inform Priorities: Utilize shopper analytics and sales trends to understand customer preferences, dietary needs, and purchasing behaviors. This enables retailers to personalize recommendations and promotions accurately.

   
   

2. Offer Comprehensive Product Information: Beyond basic attributes like price and brand, include detailed nutritional information, ingredient transparency, allergen warnings, and sustainability practices. This allows customers to make informed decisions aligned with their personal health goals and values.

   
   

3. Integrate Third-Party Certifications and Ratings: Incorporate respected certifications and science-based health ratings powered by a third-party to build trust and guide customers towards healthier options. Ensure these ratings are visible and easily understandable.

   
   

4. Offer Personalized Recommendations: Implement AI and machine learning tools to provide personalized product suggestions based on a customer’s shopping history, preferences, and nutritional goals. This could be done through apps, websites, and in-store digital displays.

   
   

5. Create Filter and Search Options: Enable customers to filter and search products based on specific attributes like low sodium, gluten-free, organic, or eco-friendly. This makes shopping more efficient for those with particular dietary needs or environmental concerns.

   
   

6. Educational Content and Tools: Provide educational resources about nutrition and sustainability through a mobile app, e-commerce site, blogs, recipes, and how-to guides. Tools like virtual dietitians or interactive meal planners can further assist customers in making healthy choices.

   
   

7. Enhance In-Store Signage: Use clear, informative signage in-store that highlights key attributes of products. Digital signage can offer interactive elements and change based on current promotions or customer demographics present at different times.

   
   

8. Develop Mobile Integration: Allow customers to use their smartphones for a more interactive shopping experience. Features might include scanning product barcodes for detailed information, receiving on-the-spot personalized coupons tied to lifestyle goals, or navigating the store for specific dietary lists.

   
   

9. Leverage Smart Labels and QR Codes: Use smart labels or QR codes on shelf labels and product packaging that customers can scan to access detailed and updated information about the product’s health and sustainability attributes.

   
   

10. Feedback Mechanisms: Implement systems for customers to provide feedback on the accuracy of product information and the effectiveness of personalization features. This can help retailers refine their offerings and improve customer satisfaction.

    
    

11. Partnerships with Better-for-You and Better-for-Planet Brands: Collaborate with health-focused brands to offer promotions and spotlight healthier options, making it easier for customers to identify and choose these products.

Adopting these best practices not only helps food retailers cater to the evolving needs of health-conscious and digitally savvy consumers but also builds a loyal customer base by aligning with their lifestyle choices and dietary needs.

How can food retailers obtain and track reliable product dietary, health, and sustainability attributes to power these programs?

For food retailers to effectively gather and track reliable product dietary, health, and sustainability attributes, implementing a robust system is essential. Here are some recommended strategies to ensure accuracy and reliability:

1. Partner with Credible Data Providers: Collaborate with established third-party data providers that specialize in nutritional, health, and sustainability information. These providers use rigorous methods to collect and verify data, ensuring its accuracy and reliability.

   
   

2. Utilize Standardized Databases: Employ standardized product databases that categorize items based on universally recognized attributes. This standardization helps maintain consistency across products and brands.

   
   

3. Regular Audits and Updates: Regularly audit the data for accuracy and update it to reflect any changes in product formulations or new sustainability practices. This can involve periodic reviews and feedback sessions with suppliers.

   
   

4. Collaborate with Suppliers to get Basic From-Pack Data: Work closely with suppliers to obtain direct data feeds that include comprehensive product information. Encourage suppliers to adopt standardized reporting formats to ease data integration and comparison. Provide these feeds to your 3rd party data providers for validation and attribute analysis.

   
   

5. Integrate Blockchain Technology: For traceability and transparency, blockchain can be an effective technology. It securely tracks the journey of products from farm to shelf, ensuring that sustainability claims and sourcing details are accurate and tamper-proof.

   
   

6. Feedback Systems: Implement customer feedback mechanisms to identify and correct any inaccuracies in the data. Customers often notice discrepancies that internal audits may miss.

   
   

7. Use AI and Machine Learning: Employ artificial intelligence and machine learning tools to analyze large datasets more efficiently. These technologies can help predict trends, identify anomalies in data, and offer insights for better inventory and attribute management.

   
   

8. Educate and Train Staff: Ensure that all staff, especially those in procurement and product management roles, are well-trained in understanding and managing product attributes. This helps in maintaining the integrity of the data within your PIM and across your company functions and shopping surfaces.

   
   

9. Certification and Compliance Checks: Regularly verify that products meet all necessary certifications and comply with relevant health and sustainability regulations. This includes keeping up-to-date with changes in certification standards and legal requirements.

By adopting these strategies, food retailers can ensure that the dietary, health, and sustainability attributes they use in their personalization and healthy shopping programs are not only reliable but also up-to-date and relevant, enhancing consumer trust and satisfaction.