7 minutes read

The F&B industry: when transparency becomes positioning

After each food scandal, customers make an irreversible change: they only trust what they can see and touch.

Sinh Vũ · Creative DirectorF&B sector

Quick summary

Transparency in F&B moved beyond the line of compliance many years ago. After each food safety scandal, part of consumers' trust never comes back. What remains is a new unspoken rule: a brand that lets customers see is a brand worth trusting. And once trustworthiness becomes a selection criterion, transparency is positioning, not just an obligation.

In this article · 6 sections

Scandals do not just affect sales

The food and beverage sector in Vietnam faces a double pressure: it has to grow, and it has to keep rebuilding trust after waves of negative news. From the soy sauce case with contaminant levels above the permitted limit in the 2000s, to bubble tea chains, fast food, and dietary supplements whose murky ingredient sourcing was exposed one after another in the past decade. Each event left a crack in the collective psychology of buyers.

That crack does not heal over time. It changes behavior. Consumers begin to flip the product over, take photos of the ingredients, then search Google, ask staff about the source of the materials, and watch videos of the processing before making a reservation. They no longer read slogans. They seek evidence.

81%Global consumers say that brand transparency is an important factor in their purchasing decisions, according to a survey by Label Insight (cited by Innova Market Insights, 2022).

What matters more than numbers: trust, once lost, is much more costly to regain than the cost of not losing it in the first place. This is why transparency should not be seen as a compliance cost, but as an investment in long-term brand equity.

Why a “quality commitment” is no longer enough

Most F&B brands are doing exactly one thing: talking. They put “clean ingredients,” “no preservatives,” and “hygiene standards” on every storefront, every package, every social media post. The problem is that customers have heard these phrases too many times, from too many brands, including brands that later had their licenses revoked.

Marty Neumeier defines a brand as a customer's perception, not a logo and not a slogan. When the customer's perception is one of doubt, no tagline is strong enough to turn it around. The only thing that can change that perception is an experience that can be verified.

A brand is not what you say about yourself. It is what others say about you when you are not in the room.

Jeff Bezos, widely quoted in branding literature

In F&B, customer trust today is shaped by what people witness with their own eyes. That means open kitchens that let guests look in, livestreamed prep-process videos, traceability QR codes leading to the name of a specific farm, and staff who answer questions about ingredients without needing to check with a manager. These details aren't marketing. They are proof.

Transparency as a design system

A common mistake is to view transparency as a message to convey, rather than as a system to design. A message can be doubted. A system is much harder to fake.

The transparency system in F&B operates on multiple layers simultaneously. Product layer: ingredients are fully listed, clearly, without confusing abbreviations. Process layer: the supply chain is narrated with names, places, and specific people. Space layer: kitchen design, barista counter, and preparation areas allow visibility. Communication layer: staff are trained to answer questions about origins as a natural part of the service, not as a surprise situation to handle.

Wally Olins once said a brand is the sum of four vectors: product, environment, communication, and behavior. In post-scandal F&B, the environment and behavior vectors carry more weight than ever, because those are the two things customers can observe directly.

38%the higher price customers are willing to pay for a brand they rate as “meaningful and different,” according to Kantar BrandZ (~2020).

The origin story is not packaging decoration

Many F&B brands have learned to tell the story of their origins. Fewer of them do it deeply enough to create a real difference. The name of the ingredient region printed on the packaging is just the starting point, not the endpoint.

An origin story has real positioning power when it is so specific that it can't easily be copied. “Coffee from Mr. Thành's family farm, Ea Ktur village, harvested in November, honey process” is far more specific than simply writing “Central Highlands coffee.” Likewise, “vegetables from Lương Sơn cooperative, Hòa Bình, PGS-VN certified, delivered within 24 hours of picking” is more specific than “organic vegetables.” That level of specificity is both proof and a natural competitive barrier, because competitors can't copy real names, real places, and real processes.

64%of consumers say they trust a brand more when it is transparent about where its ingredients come from. Figure from the Edelman Trust Barometer 2024 (aggregated multi-market data, including Asian markets).
Note: The figures from Label Insight, Kantar BrandZ, and Edelman were collected from multinational markets and are not specific to Vietnam. The reality in the Vietnamese market may differ by segment and geography. These numbers are used to illustrate global consumer behavior trends, not as a basis for specific business forecasts.

When does transparency become a competitive advantage

Transparency only becomes a competitive advantage when most competitors have not done it, or have not done it deeply enough. In the current Vietnamese F&B industry, this remains a significant gap. Most brands stop at the message level: claiming they are transparent. Very few brands invest in the system level: designing transparency to emerge naturally without needing persuasion.

The brands that gain the advantage are the ones that make transparency easy to see, easy to verify, and consistent at every touchpoint. That's how the kitchen space is designed, how staff are trained to answer difficult questions, and how packaging presents ingredients. It's also how a QR code leads to real information, not a generic introduction page.

Byron Sharp points out that brand recognition is built through consistent repetition, not through novel messages. In F&B, every time a customer verifies a piece of information and finds it true, the brand is reinforced in their memory. It's the only mechanism that lets trust grow steadily and durably.

Positioning through transparency: what needs to be designed first

Not every decision related to transparency requires a large budget. But all of them need to be made early, before the brand goes public, as changes later will be much more expensive.

  • Identify what the brand is willing to show customers and design that part to appear as naturally as possible.
  • Decide on the language to describe components and origins: specific enough to be credible, simple enough to require no further explanation.
  • Train your customer-facing team to answer product questions like experts, not like someone reading a memo.
  • Design a traceability system before placing it on the packaging. A QR code that leads to a blank page or an error page is worse than having no QR code at all.
  • Choose the things the brand does not do and state them clearly. Honesty about limitations sometimes builds stronger trust than comprehensive promises.

Transparency does not mean exposing everything. It means that what you say and what customers see must align. When that gap is zero, the brand no longer needs to persuade. Customers persuade each other.

References

Byron Sharp, How Brands Grow (Oxford University Press, 2010). Marty Neumeier, The Brand Gap (New Riders, 2003). Kantar BrandZ 2020. Label Insight / Innova Market Insights (cited in FMCG industry reports 2021-2024). Edelman Trust Barometer 2024. Vietnam Food Safety Authority, Ministry of Health.

Frequently asked questions

Does the 'quality commitment' on packaging still resonate with consumers?

It works less and less, because consumers have grown used to seeing that phrase on far too many products, including ones that were once caught up in scandals. The problem isn't making a commitment, but that the statement comes with no observable proof. When a brand lets consumers see the process, the origin, or real inspections, trust builds faster than any pledge could achieve.

Transparency in the F&B industry should be designed how?

Effective transparency means being transparent exactly where customers are standing, not burying it on a website or in a small corner of the packaging. That can be a QR code leading to ingredient sourcing information, an inspection certificate placed at eye level at the point of sale, or a supplier's story told directly on the packaging. When information is designed to be seen immediately, it works as a passive signal of trust. Customers don't have to go looking for it.

Is the product origin story only for premium brands?

No, and this is a common misunderstanding. An origin story is proof for a product at any price point, not just decoration for expensive products. An affordable brand that can tell a specific story about its ingredient region or how its product is made creates real differentiation from products in the same segment that have no such story. That doesn't necessarily require higher production costs.