2014 TRUST IN TODAY’S

GLOBAL FOOD ENVIRONMENT

ONE | The State of Trust

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you 'do not trust them at all' and nine means that you 'trust them a great deal'. (Top 2 Box, Trust a great deal and Top 4 Box, Trust) Informed Publics in 20-country global total.

NGOS BUSINESS

GOVERNMENT

TRUST IN BUSINESS AND NGOS REMAINS STABLE, TRUST IN GOVERNMENT AND MEDIA DECREASES

3

TRUST IN THE FOUR INSTITUTIONS OF GOVERNMENT, BUSINESS, MEDIA AND NGOS, 2013 VS. 2014

TOTAL TRUST

TRUST A GREAT DEAL

MEDIA

63% 64%

22% 23%

2013 2014

#1

57% 52%

17% 16%

2013 2014

#3

58% 58%

17% 16%

2013 2014

#2

48% 44%

16% 15%

2013 2014

#4

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics, 25-country global total.

4

2014 2013 2013 VS. 2014

OVERALL, FOOD & BEVERAGE REMAINS TO FOURTH MOST TRUSTED INDUSTRY

79%

75%

70%

66%

65%

65%

64%

63%

60%

59%

59%

55%

51%

51%

50%

Technology

Consumer electronics

manufacturing

Automotive

Food and beverage

Consumer packaged goods

Entertainment

Brewing and spirits

Telecommunications

Consumer health companies

Energy

Pharmaceuticals

Chemicals

Media

Banks

Financial services

+2

+2

+1

0

0

0

+2

+1

+1

0

+1

-1

-2

+1

0

77%

73%

69%

66%

65%

65%

62%

62%

59%

59%

58%

56%

53%

50%

50%

Technology

Consumer electronics

manufacturing

Automotive

Food and beverage

Consumer packaged goods

Entertainment

Brewing and spirits

Telecommunications

Consumer health companies

Energy

Pharmaceuticals

Chemicals

Media

Banks

Financial services

56%

76%

72%

47%

56% 57% 56%

64%

47% 44%

83%

53%

48% 48% 50%

66%

84% 82%

76%

71% 70%

66% 65%

58% 57% 55%

53% 51%

48%

44% 42%

NETHERLANDS IS AN OUTLIER; SWEDEN SHOULD BE WATCHED

TRUST REMAINED STEADY IN FOOD & BEVERAGE BETWEEN 2013 AND 2014

5

TRUST LEVELS HAVE GROWN – OR REMAINED STEADY — IN THE PAST 5 YEARS

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics, 20-country global total.

2009

2014

N.A.

6

TWO | Trust in the Food and Beverage Industry

49% TRUST IN BUSINESS

63% TRUST IN THE FOOD AND

BEVERAGE INDUSTRY

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total

THE FOOD AND BEVERAGE INDUSTRY ENJOYS HIGH TRUST RATINGS

7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

8

CHINA STANDS OUT AS THE EXCEPTION

TRUST GAPS PARTICULARLY LARGE IN UK, SPAIN, IRELAND, GERMANY AND FRANCE

63%

79%

70% 70% 69%

65% 64% 63% 61% 60% 59%

51% 48%

43% 43% 42%

49%

63%

57%

45% 48%

56%

64%

49%

34%

41% 41%

26%

43%

38%

33% 33%

Food and Beverage

Business

Q11-14. [TRACKING] Below is a list of institutions. For each one, please indicate how much you trust that institution to do what is right using a 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”.; Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) General Population in 27-country global total and across 27 countries

SNAPSHOT OF TRUST IN BUSINESS VS. FOOD & BEVERAGE SHOWS S0ME SURPRISES

31%

36%

36%

76%

78%

81%

U.K.

Sweden

Germany

UAE

China

India

42%

43%

43%

76%

76%

79%

Poland

Russia

Turkey

UAE

Mexico

India

23%

23%

24%

70%

74%

76%

Germany

Ireland

Spain

India

Indonesia

China

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Informed Publics 9

FOOD & BEVERAGE

INDUSTRY

ENERGY

INDUSTRY

TOP- AND BOTTOM-THREE TRUST COUNTRIES FOR FOOD & BEVERAGE SHOW SOME SIMILARITIES WITH OTHER SECTORS, BUT ALSO SOME DIFFERENCES

FINANCIAL SERVICES

INDUSTRY

INDIA IN TOP-THREE FOR ALL

LOW TRUST LEVELS VARY BY SECTOR

10

Three | Deeper Dive into Industry & Sub-Sectors

63% 62% 62% 61%

47%

Food and Beverage

Industry

Food and beverage

retailers

Food service Food and beverage

manufacturers

Fast food restaurants

11

WHEN WE BEGIN TO LOOK AT SUB-SECTORS, SCORES REMAIN HIGH

FAST FOOD IS ONE AREA OF CONCERN

Q61D-64D. [SPLIT SAMPLE] Now thinking about specific sectors within the FOOD AND BEVERAGE industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 27 -country global total

63% 62% 62% 61%

47%

23% 18% 20% 19%

14%

Food and Beverage

Industry

Food and beverage

retailers

Food service Food and beverage

manufacturers

Fast food restaurants

12

BUT IF WE START TO PEEL THE ONION, WE BEGIN TO SEE PROBLEMS AND OPPORTUNITIES

Q61D-64D. [SPLIT SAMPLE] Now thinking about specific sectors within the FOOD AND BEVERAGE industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 27 -country global total

High

Trust

44% 40% 33% 42% 42%

Little/ No

Trust 37% 38% 38% 39% 53%

“Swing

Voters”

50%

FOOD AND BEVERAGE RETAILERS EXPERIENCE LOWER LEVELS OF HIGH TRUST IN THE EU

13

SUB-SECTOR HOLDS LARGEST PERCENTAGES OF SWING VOTERS

62%

73% 73% 69% 68% 68% 67% 66% 65% 64%

56% 52% 51%

49% 45%

31%

18%

28%

14%

23% 27%

24% 25% 24% 21%

17% 13% 12% 13%

10% 8%

5%

Q61D. [SPLIT SAMPLE] Now thinking about specific sectors within the FOOD AND BEVERAGE industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 27-country global total and across 27 countries

High

Trust

31% 33% 35% 36% 44% 48% 49% 51% 51% 27% 69% Little or

No Trust

“Swing

Voters” 59% 46% 42% 44% 47% 43% 40% 38% 39% 37% 26%

38%

44%

50%

14

62%

73% 73% 69%

67% 67% 67% 66% 66%

61%

56% 53%

48% 45%

36% 32%

20%

27%

35%

29%

19%

10%

24% 26%

19% 17%

15% 12%

9% 13%

6% 9%

FOOD SERVICE EXPERIENCES GREATER GAPS BETWEEN TRUSTERS AND HIGH TRUSTERS IN THE EU

Q63D. [SPLIT SAMPLE] Now thinking about specific sectors within the FOOD AND BEVERAGE industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 27 -country global total and across 27 countries

High

Trust

EU HOLDS LARGEST GROUPS OF SWING VOTERS

33% 33% 34% 39% 44% 47% 52% 55% 64% 27% 68% Little or

No Trust

“Swing

Voters” 46% 48% 57% 44% 44% 41% 41% 39% 32% 30% 23%

38%

42%

50%

15

61%

74% 71%

68% 68% 65% 65% 64%

61% 59%

54% 50% 49%

47%

36% 34%

19%

32% 31%

24% 20%

23%

11%

23% 20%

16% 15% 11% 12%

8% 9% 9%

FOOD AND BEVERAGE MANUFACTURERS ARE ON PAR WITH FOOD SERVICE

Q62D. [SPLIT SAMPLE] Now thinking about specific sectors within the FOOD AND BEVERAGE industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 26 -country global total and across 27 countries

High

Trust

35% 35% 39% 41% 46% 50% 51% 53% 64% 32% 66% Little or

No Trust

“Swing

Voters” 48% 42% 54% 41% 43% 39% 39% 37% 39% 27% 25%

39%

42%

50%

16

47%

64% 64%

58% 55%

51% 48%

46%

39%

33% 32% 32% 30%

27%

18% 17% 14%

26%

15%

24%

19%

7% 11% 11%

9% 8% 10%

7% 6% 5% 5% 3%

FAST FOOD RESTAURANTS EXPERIENCE GREATEST GAPS IN TRUSTERS AND HIGH TRUSTERS

Q64D. [SPLIT SAMPLE] Now thinking about specific sectors within the FOOD AND BEVERAGE industry, please indicate how much you trust businesses in each of the following sectors to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. General Population in 27-country global total and across 27 countries

High

Trust

49% 52% 61% 67% 68% 68% 70% 73% 82% 54% 83% Little or

No Trust

“Swing

Voters” 35% 44% 37% 30% 25% 22% 25% 24% 22% 13% 14%

53%

33%

42%

60% 57% 56% 55%

49% 49% 48% 46%

43% 42%

30% 29% 26%

48%

71%

84%

36%

51%

71%

47% 46%

58%

38%

47% 45%

48%

36%

29%

35% 38%

33%

17

WHY BE CONCERNED ABOUT “SWING VOTERS”? RESPONDENTS BELIEVE THERE IS NOT ENOUGH REGULATION AROUND FOOD & BEVERAGE

Not Enough Regulation of Business

Not Enough Regulation for Food and Beverage

Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.

BUT IT ALSO CREATES OPPORTUNITIES FOR INDUSTRY TO LEAD

18

IN AN ENVIRONMENT WHERE THERE IS A DESIRE FOR MORE REGULATION, TRUST IN THE FOOD AND BEVERAGE INDUSTRY BECOMES FRAGILE

Trust in Food and Beverage

Not Enough Regulation for Food and Beverage

67%

Q43-60. [TRACKING] Please indicate how much you trust businesses in each of the following industries to do what is right. Again, please use the same 9-point scale where one means that you “do not trust them at all” and nine means that you “trust them a great deal”. (Top 4 Box, Trust) Q148. [TRACKING] When it comes to government regulation of business, do you think that your government regulates business too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total. Q264. When it comes to government regulation of the food and beverage industry, do you think that your government regulates it too much, not enough or the right amount? (Not Enough, Too much) Informed Publics, 27-country global total.

48%

BUSINESS TO LEAD THE DEBATE FOR CHANGE

19

Evaluate Establish transparent metrics. Report

frequently. Acknowledge performance

and amend as needed.

Advocate Offer a clearly articulated strategy that

delivers context. Engage and enable to

amplify. Create mass movement.

Participate Partner, listen and build relationships

to inform strategy.

Four | Building Trust

Edelman Trust Barometer research

reveals 16 specific attributes which

build trust.

These can be grouped into

five performance clusters listed here

in rank order of importance.

20 DELIVERS CONSISTENT FINANCIAL RETURNS TO INVESTORS

HAS HIGHLY-REGARDED AND WIDELY ADMIRED TOP LEADERSHIP

RANKS ON A GLOBAL LIST OF TOP COMPANIES

OPERATIONS

WORKS TO PROTECT AND IMPROVE THE ENVIRONMENT

ADDRESSES SOCIETY’S NEEDS IN ITS EVERYDAY BUSINESS

CREATES PROGRAMS THAT POSITIVELY IMPACT THE LOCAL COMMUNITY

PARTNERS WITH NGOs, GOVERNMENT AND 3RD PARTIES TO ADDRESS SOCIETAL NEEDS

PURPOSE

IS AN INNOVATOR OF NEW PRODUCTS, SERVICES OR IDEAS

OFFERS HIGH QUALITY PRODUCTS OR SERVICES

PRODUCTS & SERVICES

TAKES RESPONSIBLE ACTIONS TO ADDRESS AN ISSUE OR CRISIS

HAS TRANSPARENT AND OPEN BUSINESS PRACTICES

HAS ETHICAL BUSINESS PRACTICES

INTEGRITY

COMMUNICATES FREQUENTLY AND HONESTLY ON THE STATE OF ITS BUSINESS

LISTENS TO CUSTOMER NEEDS AND FEEDBACK

TREATS EMPLOYEES WELL

PLACES CUSTOMERS AHEAD OF PROFITS

ENGAGEMENT

16 ATTRIBUTES KEY TO BUILDING TRUST

TRUST-BUILDING OPPORTUNITY

QUADRANT

ENGAGEMENT AND INTEGRITY ARE OF HIGHER IMPORTANCE, BUT BUSINESS IS UNDERPERFORMING

21

STA

TE

D IM

PO

RTA

NC

E

STATED PERFORMANCE

ENGAGEMENT

INTEGRITY

OPERATIONS PURPOSE

PRODUCTS & SERVICES

HIGH-PERFORMING ON HIGH PRIORITIES UNDER-PERFORMING ON HIGH PRIORITIES

UNDER-PERFORMING ON LOWER EXPECTATIONS HIGH-PERFORMING ON LOWER PRIORITIES

Now tablestakes, in 2008

Operations were much higher

in importance for building trust.

GREATER EXPECTATIONS: IT’S NOT JUST ABOUT PRODUCTS AND SERVICES

Q80-Q95. [TRACKING] How important is each of the following actions to building your TRUST in a company? Use a nine-point scale where one means that action is “not

at all important to building your trust” and nine means it is “extremely important to building your trust” in a company. (Top 2 Box, Very/Extremely Important) General

Publics, 27-country global total.; Q114-129. Please rate businesses in general on how well you think they are performing on each of the following attributes. Use a 9-

point scale where one means they are "performing extremely poorly" and nine means they are "performing extremely well". (Top 2 Box, Performing Extremely Well)

General Publics, 27-country global total.

WHAT DO ENGAGEMENT AND INTEGRITY MEAN FOR THE FOOD AND BEVERAGE INDUSTRY?

22

CONSUMERS WANT THE INDUSTRY TO COMMUNICATE OPENLY AND TRANSPARENTLY ABOUT HOW

ITS PRODUCTS ARE MADE AND HOW THEY ARE SOURCED

45 / 16

THE DOUBLE ROI FOR FOOD AND BEVERAGE

23

REWARD PUNISH

+ -

How likely would you be to do the following in relation to a food or beverage company that you consider to be providing healthy and nutritious products? How likely would you be to do the following in relation to a food or beverage company that you consider to NOT be providing healthy and nutritious products?

88% 68%

Refuse to buy that company’s products Buy that company’s products

83% 66%

Share negative opinions & experiences about the company Share positive opinions & experiences about the company

85% 63%

Criticize that company to others Recommend that company’s products

48%

Pay a premium for that company’s products

Affordability Convenience Taste + +

THE NEW PURCHASE DECISION EQUATION

24

= My Values

Health

Sustainable Practices

Information

Social Good

THE NEW PURCHASE DECISION EQUATION

HOW CAN THE FOOD AND BEVERAGE INDUSTRY WIN OVER THE SWING VOTERS?

25

Evaluate Establish transparent metrics. Listen and

analyze. Report frequently. Acknowledge

performance and amend as needed.

Mobilize &

Advocate

Offer a clearly articulated strategy that delivers

context. Engage and enable to amplify. Create

mass movement.

Participate Become part of the conversation. Partner,

engage and build relationships that inform

strategy and actions.

Lead Conversations around solutions. Bring

influencers in to understand and experience

what you are doing.

On the cover, from top left: Japanese Prime Minister Shinzo Abe: REUTERS/Toru Hanai; Malala Yousefzai: REUTERS/Darren Staples; Brazilian Oil

and Gas Magnate Eike Batista: REUTERS/Fred Prouser; Anti-Government Protests in Turkey: REUTERS/Murad Sezer; Lord Justice Leveson, chair

of The Leveson Inquiry: REUTERS/Stefan Wermuth; Hong Kong Protests in Favor of Edward Snowden: REUTERS/Bobby Yip; U.S. Government

Shutdown: REUTERS/Mike Theiler