Lionel Kambeitz, CEO, co-founder and executive chairman of plant-based regenerative ingredient company Above Food, delves into the crucial consideration of supply chain transparency across both the plant-based and wider F&B industry.
Consumers have never had more access to information about how what they eat impacts their health and the planet. Yet, a walk down the grocery store aisle often leaves them with more questions than answers: Where does this food come from? How was it processed? What journey did its ingredients take to arrive on these shelves? According to research by McKinsey, less than one-third of consumers surveyed find the range of products on grocery shelves 'great,' and most are confused about what is truly healthy and sustainable.
Food safety in the spotlight
Foodborne illness outbreaks put an acute spotlight on the need for robust food safety protocols, but the demand for transparency goes well beyond this. Consumers today are increasingly demanding to know where their food comes from, how it is produced, and what measures ensure its safety. This shift is more than a trend; it is a powerful movement towards greater accountability and sustainability in food production. As consumers become more empowered, they are calling for brands to adopt more transparent practices, creating a ripple effect throughout the industry.
Despite this, many of the legacy food supply chains that dominate the industry remain opaque and fragmented. Delivering transparent and trustworthy food systems at scale requires a complete reimagining of outdated models. By leveraging technology, brands can achieve deep transparency in their supply chains. Lot coding, for example, can enable companies to trace every ingredient back to its origin, making it possible to automate recalls in case of contamination. This can significantly reduce the response time to these events, minimising potential health risks, costs and legal issues while enhancing consumer trust.
The business case for transparency
Beyond enabling rapid response to, and mitigation of, food safety risks, transparency in the value chain can also strengthen brand loyalty by shifting away from the commoditisation of food ingredients through product differentiation. Commodities, by definition, are interchangeable with other goods of the same type regardless of the producer, allowing them to be traded solely based on price.
This system places little value on an ingredient’s origin story and incentivises producers to cut costs as the key lever to boost profits. Because of this, food production becomes a black box, and consumers are left in the dark about the origins and journey of their food. With more than half of consumers willing to pay a premium for food that supports their health and wellness goals, this lack of transparency represents a significant lost opportunity.
Increased transparency provides an opportunity for value-added differentiation. For instance, if producers can grow better grains with greater nutrient density using sustainable and safe practices, and consumers are willing to pay for this, transparency adds significant value.
Transparency is crucial not only for consumer brands, but also in the production of the ingredients that go into all of our food products. Collaboration with growers, suppliers and customers ensures the entire supply chain operates in harmony with the principles of transparency and sustainability, from the initial seed to the final product on the consumer’s plate.
For businesses, transparency is not just a moral imperative but a strategic advantage. It allows companies to build stronger relationships with consumers, foster loyalty and command premium prices for their products. As the demand for transparency continues to grow, businesses that prioritise openness and honesty will be better positioned to succeed in the market.
Re-establishing our connection to the food we eat
Open communication about sourcing, production and distribution builds trust with consumers. This trust is essential for businesses to thrive in an increasingly competitive market. Companies that embrace transparency can differentiate themselves and attract increasingly discerning consumers who value honesty and integrity in the brands they support.
Moreover, transparency can lead to innovation within the food industry. By openly sharing information about their practices, companies can collaborate more effectively, driving improvements in sustainability, efficiency and quality.
The future of food
The future of food depends on creating transparent, sustainable and resilient supply chains. The industry must rise to the challenge of greater accountability to build a food system that is better for consumers and the planet. By embracing transparency, businesses can contribute to a more trustworthy, safe and sustainable food supply chain, ensuring that consumers have access to the information they need to make informed choices about their food to enhance their health and the wellbeing of the planet, both today and in the future.
Transparency is a key ingredient in the future of the food supply chain. By adopting transparent practices, businesses can meet the growing demands of empowered consumers and build stronger relationships throughout the value chain. The journey from seed to fork should be one of openness and honesty, paving the way for a brighter future in food production and consumption.
