FDBusiness.com

On premise suppliers and venues need to demonstrate the ethical credentials of their brands to Ireland’s increasingly concerned consumers. That is one of the big messages from CGA by NIQ’s latest Consumer Insights Report, which shows how positive practices can help businesses generate respect, loyalty and extra sales. Nearly three in five (58%) consumers now think it is important that the products and brands they buy align with their own morals and values, while half (49%) are more likely to buy an item if it demonstrates its values or supports moral causes or social movements.

For many people, ethical action is no longer just a nice-to-have – it’s essential for all brands. Nearly half (46%) agree that food and drink brands have a responsibility to speak out and support moral and social causes, while over a fifth (22%) say they look for ethical and sustainable brands in the on premise – making it the second most common channel behind supermarkets. Younger adults, regular visitors and urban residents are all more likely than average to look for good ethics.

The Consumer Insights Report sets out the values that are most important in consumers’ day-to-day lives. More than half (54%) say family is one of their five top values, while kindness (41%), health (37%), loyalty (34%) and honesty (31%) all rank high. Drinks brands that can tap into these and other values are well placed to reach the ethically minded consumer.

Health can be another focal point for brand values. With nearly a third (31%) of consumers citing a healthy lifestyle as one of their top three priorities, drinks brands need to stress how they can support well-being. Products that are fresh contribute to consumers’ perception of health with 30% of consumers looking for this quality in the drinks they buy.

There are many more things that brands can do to show support for ethical issues and good causes. More than a third (37%) would like to see brands support local communities and farmers—the top activity ahead of supporting food banks (27%), donating a proportion of profits to social movements (25%) and reducing their carbon footprint (24%). Ethical treatment of animals, promotion of diversity and inclusion and advocacy for fair labour practices are among the many other ways that brands can show they care.

CGA’s data also indicates the risk that brands face if they don’t prioritise ethics and values. Half (50%) of consumers agree they are likely to boycott products or brands if they think they are acting immorally. As well as impacting sales, poor practice can wreck brand reputation, reduce endorsements and trigger waves of negative media and social media coverage.

Katie Lawton, CGA by NIQ’s senior client manager, Ireland, said: “Ireland’s consumers are more focused on ethical issues than ever before, and they want the brands they buy to share their values. By developing strong principles and good practice on things like sustainability, brands won’t just be acting morally – they’ll make people feel good about their choices and grow sales. Pubs, bars and restaurants are very powerful platforms for drinks suppliers to showcase their credentials, but since consumers are also sceptical about ethical promises and greenwashing, they need to see genuine and serious commitment with social issues. Brands that understand how these conscious consumers think can get a huge advantage on engagement – not just now but among the On Premise users of the future.”

CGA by NIQ’s On Premise solutions provide many more insights into consumers’ engagement and purchasing decisions across Ireland’s On Premise channels, plus expert analysis of categories, occasions and much more. To learn how market measurement and consumer research support businesses and explore opportunities for tailored analysis, contact Katie Lawton here.