Integrated Product Policy (IPP) in the Food Industry:Market Leaders versus Bio-Pioneers

Prof. Dr. Frank-Martin BelzDipl.-Oec. Jasmin Pobisch

Technical University of Munich TUM Business SchoolProfessorship for Brewery and Food Industry Management

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Agenda

I Integrated Product Policy (IPP)

II Research Methodology

III Empirical Results

IV Discussion

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I Integrated Product Policy (IPP)

Green Paper of the European Commission published in 2001

Overall objective: reduce the environmental impactof products “from cradle to grave”

Major task for business: develop and provide greener products, inform consumers and enhance demand

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I Integrated Product Policy (IPP)

Do market leaders and bio-pioneers develop and provide greener products?

Do they enhance the demand for greener products?

Do they co-operate with non-market organizations to enhance the supply and demand of greener products?

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II Research Methodology

Unit of analysis:

food processing companies (market leaders and bio-pioneers)

9 selected product categories

Qualitative and quantitative content analysis

27 written documents (mainly sustainability reports and environmental reports)

619 pages, 358 quotes

10 semi-structured Interviews

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Product Categories

Market Leader Bio-Pioneers

Meat Zimbo HermannsdorferLandwerkstätten

Dairy Müller Group Andechser Molkerei

Bio Käserei Zurwies

Bakery & Bread

Kamps Houber Brezel

Müller Bread Hofpfisterei

Sweets Ferrero Rapunzel

Nestle

II Research Methodology

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Product Categories

Market Leader Bio-Pioneers

Spices Fuchs Gewürze Salus

Coffee & Tea

Kraft Jacobs Suchard

Ulrich Walter

Baby Food Numico Hipp

Frozen Food Unilever Frosta

Oetker Group Wagner

Beer Heineken Neumarkter Lammsbräu

InBev Riedenburger

II Research Methodology

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III Empirical Results

Main Category Subcategory Code

Upstream Activities(Supply Side)

Sustainable management of natural resources

1.1

Ethical purchasing 1.2

Food modification 1.3

Downstream Activities(Demand Side)

Information and sensitisation 2.1

Enhancement of consumer demand 2.2

Political Activities

Endorsement 3.1

Partnership 3.2

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III Empirical Results

34%

41%

25%

54%

37%

9%

0%

10%

20%

30%

40%

50%

60%

Upstream Activities Downstream Activities Political Activities

Market LeadersBio-Pioneers

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III Empirical Results

20%

7%6%

20%21%

8%

18%

37%

11%

7%

22%

15%

2%

8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Ressources People Manipulation Information Demand Endorcement Partnership

Upstream Activities Downstream Activities Political Activities

Market leaders

Bio-Pioneers

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IV Discussion

Suppliers ConsumersMarket leaders

Market Leaders – Sustainability Followers?

Suppliers ConsumersMarket leaders

Non-market actors

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IV Discussion

Suppliers ConsumersBio-pioneers

Non-market actors

Suppliers ConsumersBio-pioneers

Bio-Pioneers – New Market Leaders?

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From IPP to Balanced Sustainability Marketing?

IPP puts emphasis on products

Sustainability Marketing aims at customer value, social value and ecological value

Analysis shows the necessity to balance the upstream and downstream activities

Balanced Sustainability Marketing?

IV Discussion

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Prof. Dr. Frank-Martin Belz / Jasmin Pobisch

Technical University of MunichProfessorship for Brewery and Food Industry Management

Alte Akademie 14D-85354 Freising-WeihenstephanFon +49 8161 71 3096Fax +49 8161 71 3209

Frank.Belz@wi.tum.deJasmin.Pobisch@wi.tum.de

www.food.wi.tum.de@

Thank you very much for your attention!