Why Aren't Consumers Eating Healthier?

A question by Mary Boltz Chapman, Editor-in-Chief of Chain Leader, got me to thinking. Mary asks:

Technomic research shows consumers are choosing less-expensive food over healthy food. Is the industry not doing a good job of marketing that the two are not mutually exclusive?

1.) The failure of the organics movement: many consumers are either confused or suspicious of the high prices of most organic products. Recent surveys show the TOTALLY unregulated "all natural" category resonates more with shoppers than organic. Without boring you with the details, many manufacturers and retailers are hedging their bets and switching from organic to natural, including Hood, the largest organic dairy supplier.

2.) The Great Recession: Consumers have less money to spend, so they're falling back on cheaper alternatives. Most of them are processed foods that are made with too much salt, sugar, fats and other bad-for-you ingredients. That's not a marketing issue: minimally-processed foods are better for you. Some CPG houses like Campbell's have been reformulating their products to include more veggies, less salt and MSG, and lower fat.

3.) I'm going to tell you one thing and do another: Consumers will often tell a survey one thing, then do something different. We all know we SHOULD eat better, but when standing in the supermarket aisle, that 30K calorie frozen cheesy sandwich looks good, and we buy it. Comfort foods that taste really good and which are often bad for us (Mac & Cheese, for example, is loaded with simple carbs, fat, salt and sugar) are usually cheaper than healthy foods. And frankly, we're probably in denial about our health. Don't take my jaded word for it: a new survey from Mintel says 70% of us think we're in good or excellent health, while the Deloitte Center for Health Solutions’ Connected Care estimates 100MM Americans have heart disease, diabetes or hypertension. Weight? Only 25% of those surveyed admitted to being overweight, while the Centers for Disease Control and Prevention puts the percentage at 67%. Those surveyed did concede more exercise would be good for them (70%), but less than 37% actually do so regularly (50% work out 2x a week or less). Nearly two thirds insisted they try to eat healthy foods, but 59% conceded they eat whatever they like "regardless of the calories."

4.) Retailer greed: I know I will annoy some retailers by saying this, but with all the demand last year for organics and "better-for-you" products, prices were high, profit margins were enjoyable, and that's what Capitalism is all about. But the consumer associates "good for you" with $$$$.

What's the solution? Some retailers like Safeway are trying to push healthier products and protecting their margins by stressing Private Label products. It's one area where PL can excel and be more than just "the cheaper alternative."

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