As sustainability efforts take centre stage, media coverage is playing a pivotal role in shaping corporate success and cultivating consumer trust
The ever-changing global consumer landscape is experiencing a profound transformation, with sustainability emerging as a key driver of consumer preference and brand loyalty. This shift is fuelled by a heightened awareness of environmental and social issues and a growing onus on businesses to take responsibility for their impact on the planet and society. For companies in the FMCG sector, this evolving landscape presents both challenges and opportunities.
Our recent report, ‘Unpacking the Hype Around Fast-Moving Favourites,’ provides a deep dive into media sentiment and coverage surrounding leading FMCG companies in 2023-2024. The report, based on an analysis of 9,550 online media articles featuring prominent mentions of these companies, reveals that sustainability is no longer a niche concept, but a core expectation that significantly influences consumer perception and brand reputation.
Sustainability is a key differentiator
The report highlights a strong correlation between a company’s sustainability performance and media sentiment. FMCG giants like PepsiCo and Danone, who have made significant investments in renewable energy, plastic reduction and greenhouse gas emission reduction, have garnered positive media attention for their efforts. PepsiCo’s initiatives in areas such as fleet electrification, zero-emission trucking and renewable energy investments were widely reported in the media. Similarly, Danone’s progress in reducing virgin plastics, its role in the Dairy Methane Alliance and its commitment to regenerative agriculture received positive coverage.
However, the report also reveals that even these industry leaders are not immune to criticism when their practices fall short of expectations. PepsiCo faced negative press for its contribution to global plastic waste and a lawsuit filed by New York City over plastic pollution. Danone also faced similar scrutiny over allegations of greenwashing. This highlights the importance of authenticity and transparency in sustainability initiatives. Consumers are increasingly discerning and can easily spot attempts at greenwashing. Companies need to be genuine in their efforts and communicate them transparently to build trust and credibility.
Innovation is being driven through a sustainability lens
The report also highlights the growing importance of innovation in driving sustainability. Companies like Heineken and Diageo have successfully integrated sustainability into their innovation strategies, resulting in positive media coverage and consumer engagement. Heineken’s launch of the “Boring Phone,” a no-internet flip phone designed to encourage social interaction, generated significant buzz for its innovative approach to promoting a healthier lifestyle. Additionally, Diageo’s development of a 90 percent paper-based bottle showcases how sustainability can be integrated into product development and consumer engagement.
Lessons for smaller organisations
The findings of our report also hold valuable lessons for leaders of smaller FMCG companies.
- Sustainability as a business imperative: The report clearly demonstrates that sustainability is no longer just a “nice-to-have” but a business imperative. This is reinforced by YouGov data revealing that over half of Britons are willing to pay up to a 10 percent premium for sustainable meats and fresh produce, with 26 percent willing to pay up to 25 percent more. Consumers are actively seeking out sustainable products and are willing to pay a premium for them.
- Authenticity and transparency: Greenwashing is a major concern for consumers, as trust is paramount. Despite this, YouGov data reveals only four percent of Britons completely trust product sustainability logos, with 13 percent not trusting them at all. Smaller companies need to be transparent about their sustainability practices and ensure that their efforts are genuine and impactful.
- Collaboration and partnerships: Smaller companies can leverage collaborations with other businesses, NGOs and even consumers to achieve their sustainability goals.
- Storytelling and communication: Effectively communicating sustainability efforts is crucial. YouGov research supports this, revealing widespread scepticism, with less than 11 percent of Britons believing finance, tech, and airline industries are doing enough to minimise their environmental impact. Smaller companies can use social media, their website and product packaging to tell their sustainability story and connect with consumers.
The report highlights the crucial role of leadership in driving environmental initiatives. The success of FMCG giants like PepsiCo, Danone, Heineken, and Diageo in embedding sustainability into their core business strategies can be largely attributed to strong leadership commitment. Leaders who champion sustainability, not just through words but through actions and resource allocation, create a culture where sustainability thrives. For smaller companies, this means that leadership must be actively involved in setting sustainability goals, driving implementation, and communicating the company’s commitment both internally and externally. Leadership buy-in is not just beneficial; it’s essential for long-term success in a world where sustainability is increasingly shaping the future of the FMCG industry.
The future of FMCG
The report paints a clear picture of the evolving FMCG landscape, where sustainability is a key driver of consumer sentiment and brand reputation. For leaders of smaller companies, this trend presents a call to action. By embracing sustainability, not just as a compliance requirement but as a core business strategy, smaller companies can enhance their brand reputation, attract investment and build a loyal customer base. In the increasingly competitive FMCG market, sustainability is no longer just a good idea; it’s a business imperative.
CARMA is a media intelligence service provider helping its clients to operate strategically and demonstrate success with industry-leading media monitoring and communications evaluation. visit: http://www.carma.com
Ryan Boulter is the Enterprise Business Development Manager at
CARMA
