2017 Consumer Insights. February 28, 2018

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1 2017 Consumer Insights February 28,

2 Key Insights Fair Trade Certified seal continues to be relevant for consumers. 63% awareness 33% purchase intent Millennials outpace all other generations in their desire for Fair Trade Certified products 75% vs. 70% GP 45% of consumers care about a company s labor practices. (+17% vs. 2012) Almost half of consumers are more likely to trust a company s claims if backed up by proof, i.e. 3rd party certification and their willingness to pay a premium for FTC products 28% vs. 22% GP It s necessary to closely engage with them to match up their attitudes with their actions. 79% of Consumers want to know that a company is mindful of its practices and they will become loyal customers when they do Source: NMI 2018 LOHAS Sustainability in America Consumer Insights & Trends Report

3 Business Impact on People and Planet Consumers today expect companies to be mindful of the impact they have on the environment and the world around them. % consumers who completely/somewhat agree with the statements I like knowing that a company is mindful of their impact on the environment and society, but it does not change what I do It is important for companies to not just be profitable, but to be mindful of their impact on the environment and society 79% 79% 77% 80% 45% 48% 45% 41% 47% 86% GP Millennials Gen X Boomers Matures Source: NMI 2018 LOHAS Sustainability in America Consumer Insights & Trends Report

4 Concern for Fair Labor Practices In particular, issues like concern for fair labor practices has grown significantly among younger generations And 45% of consumers associate Fair Trade Certified with safe working conditions and better incomes GP Millennials GenX Boomers Seniors % indicating concern for Fair Labor Practices 41% 45% 45% 48% 53% % Growth from % +37% +43% -1% +12% Indicates Statistically Significant Growth NMI 2018 Source: LOHAS NMI Sustainability 2018 LOHAS Sustainability America in America Consumer Consumer Insights Insights & & Trends Report 4

5 Consumers Seek Proof on Claims Consumer skepticism may be prompting them to seek out proof. High levels of proven benefits are necessary to ensure consumer loyalty % consumers who completely/somewhat agree with the statements 73% 73% 76% 84% Significantly more Millennials and Gen X than older consumers 50% 49% 48% 40% 44% 34% 35% 38% Almost all companies are saying that they are environmentally-friendly, and it's hard to know who's telling the truth I look for proof when a company makes a claim about being socially or environmentally responsible A seal or certification mark indicating a product is environmentally-friendly increases the likelihood I'll buy it GP: 75% GP: 45% GP: 42% Millennials Gen X Boomers Matures NMI 2018 Source: LOHAS NMI Sustainability 2018 LOHAS Sustainability America in America Consumer Consumer Insights Insights & & Trends Report 5

6 Good Practices Result in Consumer Loyalty The impact of knowing a company is mindful of how its practices affect the environment and society has significant influence among consumers, increasing their desire to try a product/service, boosting their loyalty and even making them want to talk to their friends about the organization % general population who completely/somewhat agree that knowing a company is mindful of its impact on the environment and society Significantly higher than 2009 for all measures 52% 58% 48% 54% 40% 47% 25% 31% Makes me more likely to try their products or services Makes me more likely to buy their products repeatedly Makes me more likely to talk with friends and family about the company Makes me less concerned with the price of their products NMI 2018 Source: LOHAS NMI Sustainability 2018 LOHAS Sustainability America in America Consumer Consumer Insights Insights & & Trends Report 6

7 Awareness of the Seal Awareness and influence of the Fair Trade Certified seal is approaching that of other recognizable seals such as Organic and Non-GMO 94% 89% 86% 67% 71% 63% 48% 43% 40% 33% 51% 50% 46% 26% 26% 23% 24% 23% 14% 9% ENERGY STAR Recycled logo USDA Certified Organic Non-GMO Project Fair Trade Certified Fair Trade Labeling Organization Rainforest Alliance Certified Green Seal Marine Stewardship Council Forest Stewardship Council Recognize More likely to purchase NMI 2018 Source: LOHAS NMI Sustainability 2018 LOHAS Sustainability America in America Consumer Consumer Insights Insights & & Trends Report 7

8 Consumers Trust the Seal Consumers trust independent, 3 rd party certification over unverified, fairly traded claims Gen Pop indicating level of trust with products claiming fairly traded vs. products which are certified by Fair Trade The product claims "fairly traded", which means it follows internal company guidelines around ethical sourcing The product is certified by Fair Trade USA, which means it meets specific social, environmental and economic standards. 39% 46% 15% I would trust the brand more It would not change how I feel about the brand/company I would trust the brand/company less 65% 30% 5% Source: NMI 2018 LOHAS Sustainability in America Consumer Insights & Trends Report 8

9 Net Promoter Score Value in Fair Trade Certification is also apparent through the examination of Net Promoter Score Nearly 6 out of 10 Fair Trade purchasers are highly likely to recommend these products to friends, family & colleagues The NET PROMOTER SCORE indicates the strength of the Certification and the loyalty it engenders Industry Benchmarks Score 58% Trader Joe s 62 Wegman s 61 Promoters Passives Detractors 30% 12% 46 NPS Score Amazon 61 Costco 45 Aldi 41 Walmart 40 J. Crew 31 Gap Inc. 30 Fair Trade Purchasers Source: n=289 Source: NMI 2018 LOHAS Sustainability in America Consumer Insights & Trends Report ( % consumers indicating how likely they would be to recommend buying Fair Trade products to family, friends or colleagues) 9

10 Millennials Attitudes toward Fair Trade Millennial attitudes and behaviors toward socially responsible companies and Fair Trade Certified products 45% 50% 70% 75% Millennials are almost 30% more willing to pay a premium than the GP 22% 28% I look for proof when a company makes a claim about being socially or environmentally responsible Fair Trade Certified is very/somewhat important to purchase decision I am willing to pay 20% more for products which are Fair Trade Certified Gen Pop Millennials NMI 2018 Source: LOHAS NMI Sustainability 2018 LOHAS Sustainability America in America Consumer Consumer Insights Insights & & Trends Report 10

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