FOOD TRANSPARENCY TRANSLATES TO TRUST: WHAT MANUFACTURERS NEED TO KNOW

July 31, 2024

In today’s dynamic market, consumers are placing a premium on transparency in their food choices. They seek detailed information about ingredients, origins, food safety, and sustainability. This increasing demand stems from heightened awareness and skepticism, driven by foodborne illnesses, environmental concerns, and a general mistrust of large institutions.

For manufacturers, food transparency means providing comprehensive details about production processes, including sourcing, environmental conditions, and ethical practices. There’s been a significant shift in consumer expectations, particularly within the agriculture sector, where there is a strong demand for information about GMOs, pesticides, organic practices, and the fair treatment of farmers.

In this blog, we will explore how transparent practices by manufacturers and food producers, retailers, and restaurants can lead to increased trust, brand loyalty, and customer recommendations, ultimately enhancing long-term business results. Additionally, we will examine the importance of product labeling and spotlight new technologies that can streamline the transparency process.

Consumer Demand Is Transparent

Consumers have conveyed they are demanding transparency from brands and manufacturers, with 93% stating it’s important to know what’s in their food and how it’s made.¹ They want details about the food’s origin and production environment, including whether it was cage-free, grass-fed, organic, or treated with GMOs or antibiotics. Furthermore, a recent DNV GL Viewpoint survey found that when making purchasing decisions, consumers look for and would welcome information on a product or origin of ingredients (63.7%) and the source of raw materials and ingredients in the product (65.2%).² Research indicates that consumers are willing to pay more if a product or manufacturer is certified to a quality, claim, or food safety standard.

Welfare within the supply chain plays a crucial role in consumers’ shopping and dining decisions. Consumers are increasingly concerned about the ethical treatment of farmers and animals, seeking assurance that they are local, well-compensated, and treated fairly. Notably, 48% of Americans plan to change their consumption habits to reduce their environmental impact, and 67% want comprehensive information about the food they buy.³

Now more than ever, it is imperative that brands and food producers make information readily accessible to all. Food manufacturers can support their operator and retailer customers by providing detailed information on ingredient origins, production processes, and nutritional claims, achieved through onsite displays or digital platforms. Maintaining openness about the food being sold or served builds trust with patrons and highlights a brand’s values, along with those of the establishment. This traceability fosters customer loyalty, leading to repeat visits and purchases, and ultimately boosting product sales.

New FDA Mandates Require Greater Transparency

Starting in January 2026, the new Food Traceability final rule under the FDA Food Safety Modernization Act (FSMA) will enhance food recall processes by enabling quicker identification and removal of contaminated food from the market. This rule mandates that food businesses—including farms, manufacturers, processors, distributors, restaurants, and retailers—must:

• Create comprehensive traceability plans, allocate lot codes for tracking, and ensure all records are up-to-date and precise.
• Maintain thorough documentation of product details, origins, amounts, and measurements.
• Deliver traceability data promptly and accurately to the FDA when requested.

Restaurants and food businesses must evaluate their current practices and make necessary adjustments to comply with these upcoming requirements. For detailed information, visit the FDA’s FSMA Final Rule page.

Technology Solutions To Optimize Information Disbursement

Brands can leverage technology to meet consumers’ transparency expectations and provide end-to-end visibility in the food supply chain. Here are a couple of tech platform options to consider:

RFID Tags

Radio Frequency Identification (RFID) tags offer intelligent labeling solutions, ensuring comprehensive transparency and traceability from farm to table. RFID technology allows real-time tracking of items, from seeds and crops to processed foods, by embedding tags with valuable information such as dates, descriptions, humidity, and temperature levels.

Consumers can access this data by scanning RFID tags, whether in a grocery store, online, or at a local restaurant. This provides them with detailed insights into the origins, nutritional content, and any additives in their food. Moreover, RFID technology helps mitigate risks by enabling real-time, traceable data, which can prevent cross-contamination, reduce waste, curb the spread of foodborne illnesses, and lower the economic costs associated with product recalls.⁴

Blockchain

Blockchain technology, a secure digital ledger system, is another powerful tool for enhancing transparency in the food supply chain. This technology is used to track and trace products from seed to manufacturer to store to consumer.⁵ It’s particularly useful for verifying organic certifications and other credentials, ensuring accurate quantities during processing, and maintaining detailed records of shipments.

Distributors use blockchain to track inventory, while retailers employ it to verify product credentials and prevent fraud. Across all stages of the supply chain, blockchain helps organizations comply with food safety regulations, such as those set by the FDA, fostering greater transparency and trust.

Conclusion

As food manufacturers are challenged with meeting high standards of safety, quality, sustainability, and ethics, transparency remains a crucial component. Consumers today want to know the logistics of food production, and have this information easily accessible, to make informed purchasing decisions. Technologies like RFID and blockchain can offer the solutions needed to provide this transparency, enhancing trust and fostering a more informed consumer base. These tech platforms are revolutionizing recall management within the food industry. From predictive analytics to automated traceability systems and streamlining notification processes, tools like these improve all aspects of the recall process.

For help finding clarity in messaging and crafting the stories behind your brands and products, connect with our team here.

Sources:

^{1, 3} https://www.forfarming.co/why-is-food-transparency-important-for-businesses/

² https://www.dnv.com/assurance/viewpoint/viewpoint-surveys/2020Q2/Copy_of_qrcode-insights

^{4, 5} The Consumer Demand for Transparency in Food – How Technology Can Help, Newcastle Systems, November 20, 2023