Consumer Reaction to FOP Labeling: Insights and Strategies

1. Consumer Reaction to FOP Labeling Presented By Dennis Milne, MS Director, Business Relations Nutrition and Obesity Strategies Department Dennis.Milne@heart.org 1

2. Consumer Research Summary • Behaviors • Reliance on FOP Symbols • Maintaining Consumer Relevancy with Heart-Check • Position on New FOP Labeling Direction 2

3. Shoppers are creatures of habit. When considering new items, price and nutrition play key roles Grocery Purchasing: Role of New Products Typical Purchases Why Buy New Items percent Base: Total (n=414) Q6 When thinking about a typical trip to buy groceries, which statement best describes what you typically purchase? Q7 When you are selecting new items, which factors, if any, influence trying something new?

4. Consumers’ Response on Most Used Sources for Information. % Use Always/Sometimes #1 #2 - Internet #3 – Health Professionals Food Packages/ Labels #4- Grocery Stores #5- Friends & Family Q.21 How often do you use each of the sources below for information on nutrition/health?

5. Consumers are looking for the basics on the Nutrition Facts Panel Fat and Calories, followed by Serving Size Specific Items on Nutrition Facts Label #3 % Always #2 #1 #4 Base: Total (n = 1003) Base: Always/Sometimes/Rarely Use Nutritional Facts Panel (n = 990) Q.5: How often do you use the following information on food packaging and nutritional labels?

6. There are four attitudinal consumer segments that are “somewhat” to “very concerned” with nutrition Consumer Segmentation Model Proactive Struggling Dieters Overweight/Low Effort Lucky 29% 15% 33% 23% Very Concerned About Nutrition Less Concerned About Nutrition % of Consumers American Heart Association/Confidential

7. Proactives and Struggling Dieters are most likely to have purchased products with the AHA Food Certification mark Segment Use of AHA Symbol When Shopping % Consumers Q.11: Which symbol do you look for the most when shopping for food? Q.12: In the last 90 days, have you purchased a food product with any of the following symbols/logos?

8. Food Certification Consumer Brand Strength* Compared to other leading nutrition and non-nutrition on-packaged icons, heart-check leads with strongest aided brand awareness, trust and purchase intent/follow-through. Consumers see the AHA as the most trusted authority for nutrition messages and for deciding if a food product may display a health symbol/logo. % Trust To Decide

9. In-store Purchase Impact Analysis Objective • To isolate the impact of the heart-check mark on purchases of certified products among targeted consumer segments. Methodology • Promoted Products: heart-check mark certified • Test Period • Pre Period: 4 weeks • Promotion Period: 4 weeks • Promotion Elements: • - heart-check mark on packaging • - heart-check mark on point-of-purchase shelf tag • - heart-check mark nutrition messages at checkout • Geography: SuperValu & Pathmark stores (matched panel in 63 test & 63 control) • Metric Measure: Dollar sales of heart-check mark products • Shoppers in study: 340,000 9

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11. In-store Study Results • The in-store shelf tag promotion achieved its primary objective by increasing sales of certified products among targeted consumer segments. • Sales lift by shopper segment ranged from 1.5% to 6.7%, test vs. control • The campaign was most impactful among Struggling Dieters which is positive given that this group had a low focus on heart health. • At a total store level, combined sales for all certified items were up 5%, test vs. control. • Although most shoppers are not specifically looking for the mark when they enter the store, in a follow-up survey 75% said they are pleased to see if while shopping and that the mark does influence their purchase decision.

12. Nutrition Education: In-store Health & Wellness Events • Turn key for grocery retailers looking for value added programs for their shoppers • Develop nutrition themed events leveraging existing in-store vehicles • Kiosks • Display of sample size product • Recipes/Coupons • Shelf edge integrated signage • End-cap displays • Circulars • Mobile marketing using QR codes • Collaboration with CPG, Associations and Commissions

13. Objective American Heart Association Maintaining Relevancy: Enhancing the Heart-Check Food Certification Program to support achievement of AHA’s 2020 health promotion goal. Scientific Statements guiding the process • Diet and Lifestyle Recommendations: A Scientific Statement of the American Heart Association Nutrition Committee • Defining and Setting National Goals for Cardiovascular Health Promotion and Disease Reduction: The American Heart Association’s Strategic Impact Goal Through 2020 and Beyond • Dietary Sugars Intake and Cardiovascular Health: A Science Statement from the American Heart Association

14. Nutrition Guidelines Currently certify under five (5) regulatory CHD health claims: Saturated Fat, Cholesterol and Trans Fat, and Reduce Risk of Heart Disease (Docket #2006Q-0458) Dietary Saturated Fat and Cholesterol, and Risk of Coronary Heart Disease (21 CFR 101.75) Whole grain Foods with Moderate Fat Content (Docket #03Q-0547) Nuts & Heart Disease (Docket #02P-0505) Omega-3 Fatty Acids & Coronary Heart Disease (Docket #2003Q-0401) For Program Nutrition Criteria: Go To www.heartcheckmark.org Guiding Principles

15. Nutrition Guidelines Alignment • Effective September 2011 • Total fat increased while keeping saturated fat, Trans fat and cholesterol the same, thereby allowing products higher in mono and polyunsaturated fats (“better fats”) • Certification of nuts: almonds, hazelnuts, peanuts, pecans, pistachios, walnuts and some pine nuts • Certification of fish > 500 mg EPA + DHA per 85 grams • Effective January 2014 • Revised Sodium Criteria • Total Sugar/Calorie Screening Guidelines to limit added sugars and implementation of a dietary fiber requirement to improve the quality of certified grain-based products Guiding Principles

16. Heart-Check Evolution to New Design 1995 2005 2010 2011 • Simplified language and streamlined graphic standards options. • Vertical alignment and containment border strengthens visibility on package. • Design the strongest favorite in consumer focus groups and quantitative surveys. • Design favored by companies selected from current program participants. • Single design versus three variations. • Design shown to FDA and USDA prior to rollout. • Rolled out September 2011 • Companies may use immediately • Current package inventories using old logos must convert by January 15, 2014

17. Do FOP Systems Have A Positive Impact on Public Health? Food modeling was conducted by Dr. Victor Fulgoni of Nutrition Impact. National Health and Nutrition Examination Survey (NHANES) data were used to evaluate the relationship of consuming foods that meet American Heart Association Heart-Check Program criteria to Diet Quality [as measured by the Healthy Eating Index.]  Relationships of percentage of calories from AHA-certifiable foods in specific nutrient/food group intakes and physiological parameters including body weight, BMI, lipids, and blood pressure were examined. Results: The data demonstrate that a greater consumption (as percentage of total calories) of foods that meet AHA Heart-Check Program criteria is associated with better diet quality and lower cardiovascular disease risk.

18. Position on the New FOP Labeling Direction • The American Heart Association supports the establishment of a standardized, comprehensive front-of-package food labeling program and icon system with unified criteria based upon the best available science and consumer research, featuring consumer education as the ultimate goal. • Until there is a unified system in the marketplace, AHA believes there is a unique role for the Heart-Check Program and will continue to strive to maintain the long-standing awareness, trust and credibility that the heart-check mark has developed over time with consumers.

19. Thank You For More Information on the American Heart Association’s Food Certification and New Meal Certification Programs Go To: www.heartcheckmark.org