01.31.2007

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The Death of 'Natural'

By Harvey Hartman

Because I continually encounter a lot of misconception and confusion regarding the idea of natural products, the natural products channel and the so-called "natural products" industry, I decided it was time to present the changing mainstream consumer perspective of the "natural" arena.

Of course, one of the most important challenges when trying to make sense of this confusing intersection of terminology, practice and behavior is to distinguish between the industry's perspective and that of the consumer. While in an ideal world (perhaps only in a textbook?), the two perspectives would be in near perfect alignment, as seasoned veterans understand, this is rarely the case.

From the consumer's perspective, the idea of "natural products" emerged in the 1970s as a sort of countercultural response to conventional eating practices. Driven by a growing skepticism of mainstream institutions, an interest in "getting back to the land" and a growing belief in taking proactive steps to better one's health and world, consumers began to frequent health food stores. In more politically active areas such as Austin, Ann Arbor, Madison, Boulder, San Francisco, Seattle and others-consumers created and patronized food cooperatives to fulfill a similar set of needs (and values).

These initial harbingers of the natural products world had remarkably similar features:

• The offering of staple items such as grains, flours, nuts, beans and rice in a bulk format
• An emphasis on vitamins, herbs and nutritional supplements
• An offering of fresh juices
• Early offerings of organic products, mostly in the form of meager looking produce
• A de-emphasis (or complete lack of) meat products
• The presence of (then) obscure ethnic ingredients such as tofu, tempeh and soymilk
• A general emphasis on whole wheat alternative to conventional baked products

I could go on, but I think most of us get the general idea.

But the important thing we need to remember here is that during this era, the consumer involvement in natural products was not so much a "joyous celebration of food," as it was an expression of a certain ideology and belief system. And lurking deep within this belief system was an unspoken sense of somber asceticism. Though few ever vocalized it, there was a tacit understanding that food wasn't really to be enjoyed but, rather, consumed in its more "natural" state; implying by extension that the consumer would somehow be a "more real" person. Eating this way was more about being at the forefront of an idea than it was about the notion that food could be consumed for the sheer pleasure of it.

In some cases, the membership in food co-ops would refuse to offer basic food staples such as bananas, coffee, oranges or even sugar due to the prevailing political climate regarding the specifics of food production and distribution in foreign lands and certainly many would not offer mainstream CPG brands.

In short, health food stores and food co-ops were subdued, often drab places not known for enticing aromas, over-abundance of products or beautiful product sets. In many ways, shopping at a health food store or food co-op in the 1970s could be likened to shopping for textbooks in college-something you did once in a while because you had to.

My oh my how things have changed.

Fast-forward 30 years and we find a very different landscape. For starters, the word "natural" is now used by most all of us on at least some level thus rendering it all but irrelevant with consumers - the result of flagrant over-usage by media, manufacturers, marketers and retailers alike. Moreover, many, if not most, of the defining features of food co-ops and health food stores have been incorporated, en masse, within all quality food retailers and certain elements integrated into almost all mass market food retailers.

Whether you're in Wild Oats, Wegmans, Central Market, Safeway, Kroger, Publix (and now Wal-Mart) or a host of other leading retailers, you'll find an abundance of organic products and health and wellness product sets along with a virtually endless array of ethnic ingredients and products. Ditto for fresh juices and high-quality baked goods forged from nearly every type of flour imaginable. And what retailer doesn't stock soymilk or soy-based products, as well as an extensive selection of vitamins and herbal supplements? The point is simply this: almost everyone is buying and selling these types of products, even, to a lesser degree, your neighborhood 7-Eleven. The Wall Street Journal recently reported on this new phenomenon by citing our research where we find at least 70% of consumers are buying organics at least occasionally.

The important difference is that while virtually all of the characteristics of health food stores and food co-ops have been incorporated into all quality food retailers, the underlying sense of austerity has been vanquished.

Today's extremely successful food retailers are magnificent celebrations of food's most sensual and joyous qualities. Store entrances begin with dazzling, theatrical produce sets, teaming with abundance, before leading customers into impeccable meat and fish counters staffed with knowledgeable, passionate team members. And as the consumer moves on, he or she is likely to encounter enticing prepared foods or gourmet specialties offered from gorgeous cases. As I have often remarked, today's better food retailers are something akin to a full-on food carnival.

Natural is not just a product

But what does this mean for the industry?

The short story is that, at least from the consumer's perspective, there is no longer any such thing as natural products or natural product retailers...let alone natural product channels. Consumers are simply in search of high-quality food experiences which is being redefined and is the most important, long-term trend in the food industry today, thus spurring a wider variety of retail settings to transform their staid environments.

To be certain, consumers have not abandoned their interest in healthier eating habits or healthier food products. In fact, they have become more "sophisticated." But what is important to understand is that before those attributes can even resonate with consumers, the experience must first qualify as quality food experience, and the rules for qualification are not necessarily what you might expect. Likewise, if the experience is truly sufficient to resonate as authentic quality, that resonance will often prove far more powerful - and contribute much more to your brand halo - than lower order attributes such as "healthy," "organic" or "local." In simple terms, the pursuit of authentic quality food experiences has subsumed what were once major trends (healthy eating, organic and local) and transformed them into more secondary experiential attributes.

Don't misunderstand me. Consumers are still very interested in organic products, herbal supplements, whole wheat breads, soymilk and so on. It's just that those things taken together symbolize little to today's consumer. They are merely common items expected to be found within the confines of something much more important-a full-on, sensual food experience of the highest quality imaginable, driven by fresh, authentic, artisanal and "unpackaged" gateways.

So when our clients tell us they are in the natural products industry or service the natural products channel, I (politely and silently) cringe. The current reality is that you are not in the natural product business; you are in the high-quality food industry, a business whose goal should be to deliver the most robust, compelling and high-quality food experiences possible.

Similar to consumer views on the environment where there is no one green market, but many shades and experiences of "green," "natural" has many shades with numerous meanings. Since consumers have very little emotional connection to natural, understanding all the subtle nuances that "natural" represents is just too big. Because of this, there is a much smaller opportunity to create natural brands than many marketers would like to believe.

Implications

Some might suggest I am making a petty distinction, but I believe the implications are quite profound. When designing marketing strategies or leading innovation teams, the relevant question to ask is not "how does this resonate with the natural product consumer" or "will this be well received in the natural product channel" but, rather, "what am I doing to deliver the most amazing, highest quality food experience possible during an occasion that my product can participate in."

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