Helping reduce Obesity: A Value Curve Template for Healthier Food and Drink

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Healthier_food_McKinsey_2014_Report_150927

2.1 Billion of the world’s population is overweight or obese

This is 2.5X the number of people that are undernourished.  Obesity is responsible for 5% of deaths worldwide:

Healthy_Food_Graphic_150927Our Weekly Blast was inspired a recently published report:  Data and Trends of the European Food and Drink Industry 2013-2014 (their 12th Report)

Healthier_Food_European_Food_Report_2013-2014_1_150927

Reducing obesity sounds like a simple challenge.  Nothing could be further from the truth.  There are many stakeholders beyond the individual and family.  They include:  Colleges and Universities, Consumer Packaged Goods Companies, Farmers, Educators, Employers, Fitness Centers, Food and Beverage Companies, Governments, Health Care Providers, Insurance Companies, Media Companies, Restaurants, Schools, TV and Radio.

Strawman List of Elements of Performance (EoPs) for Food and Beverage Companies:

On order to reduce obesity,  Food and Beverage companies need a checklist of EoPs that they can use for the development of new offerings and the modification of existing products.

Here we’ve listed them alphabetically, not in order of importance:

  1. Advertizing
  2. Appearance
  3. Convenience
  4. Health Index
  5. Ingredient Sources
  6. Manufacturing Simplicity (Cost)
  7. Marketing Practices
  8. Packaging
  9. Portion Size
  10. Preservatives
  11. Price
  12. Quality
  13. Safety
  14. Shelf Life
  15. Stability
  16. Sustainability
  17. Taste
  18. Texture

We then generated strawman Value Curves for a Fast Foods Company and had McDonalds and their close rival, Burger King, in mind (see below).

Strawman Value Curves for a Fast Food Company:

Healthier_Food_Fast_Food_VC_150927
Generated using Value Innovations, Inc.’s software, Slalom(R); Consistency Ratio, 11.9%

We’ve assumed the Most Important Customer is the Area Merchandising Manager or Area Brand Manager.

The “Top 5” EoPs are Health Index, Portion Size, Taste, Appearance and Price.  They account for 57.5% of the 100 points available through the Analytical Hierarchy Process.  If our analysis is correct, this is where the Fast Food Company should be focusing its efforts to reduce obesity.

It is our hope that Food and Beverage Companies, Restaurant Owners, and Supermarkets will take this Value Curve Template, modify it and then use it to deliver greater value on Health Index, Portion Size, Taste, Appearance and Price.

Do you have Comments or Questions about our Value Curve Template?:

Please contact us

For more on the McKinsey Executive Summary on fighting obesity, go to:

For more on the Data and Trends in the European Food and Drink Industry, go to 

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