2024 Edelman Trust Barometer: Special Report - Food and Beverage

The 2024 Edelman Trust Barometer shows a continued high level of trust in the overall F&B sector. However, that trust does not necessarily translate into all sub-sectors or into the industry innovations.

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I took a journey back in time this week in El Triunfo, an old mining town in Baja California Sur. Imagine a town called the Triumph and you get the idea of how important marketing was for the funding of the mining industry.

The first mine was established in the late 1700s, with ownership eventually transferred to the Spanish Crown in the early 1800s. But the huge boom occurred in the 1860s, when miners came from California after the Gold Rush.

The mine was taken over by the El Progreso Mining Company in 1878, a British concern that raised money for a more sophisticated exploration effort through bond offerings in France, the UK and U.S. The processing facility boasted a 47-meter-high smokestack called La Ramona. Ten thousand workers came to the boomtown, from China, France and the U.S. There is even a Chinese cemetery.

El Triunfo became the largest town in Baja California Sur for the fifty years 1870-1920. It has a large performing arts center that has been transformed into a Museum of Music, containing pianos from old homes in the area, including one from 1858. It was the first town in the province to have electricity and telephones.

But the American decision to go onto a singular metallic reserve, gold, in the mid-1890s was the beginning of the end of the mine. The price of silver plummeted, and the mine became uneconomic. Workers ebbed away and the mine closed for good in 1920.

Now Christy Walton, part of the legendary family who founded Walmart, is trying to resuscitate the town. She has funded the Museum of the Cowboy, which explains the 500-year heritage of cattle ranching in Baja California, plus the Museo Ruta de Plata on the history of the mine.

This is truly a Wild West scene, straight from a John Wayne and Anthony Quinn movie. There are cobblestone streets, sagebrush rolling around, and large mansions now converted into boutique hotels. It is a relic of another era, a sign that capitalism has been here and gone and may yet return.

*PS, this is my final blog of 2024. It was a year of highs and lows. On the good side, I celebrated my 70th birthday with my family and closest friends. Edelman won its first Titanium and three gold Lions at Cannes. On the low side, it was a challenging year for the firm. I am reminded of the Kipling quote that sits above the player’s entrance at Wimbledon. “If you can meet with Triumph and Disaster and treat those two imposters just the same.” I am fired up for 2025.

Richard Edelman is CEO.

Generative AI, or “Gen AI”, has evolved significantly over the past year and is rapidly shaping the way we create, experience and perceive. Its ability to generate hyper-realistic interactions, photos and videos, and even entire narratives is blurring the line between what’s artificial and what’s real. As we enter 2025, new updates and models are expected that will likely to make Gen AI even more realistic and convincing.

Yet this raises potential ethical, philosophical, and spiritual questions in the world’s second largest religion, Islam. Today, there are over 250 million Muslims in the Asia Pacific region, many of whom are digitally engaged and increasingly affluent given the rising middle class in the region. Reaching these consumers require communications, positioning and marketing strategies that are sensitive to and align with cultural and religious considerations.

Brands deploying Gen AI in Muslim majority markets must understand cultural and religious nuances to be able to navigate potential sensitivities effectively. For instance, the concept of a “Halal”, or religiously permissible, business model. Many will associate the word “Halal” exclusively with dietary restrictions, but the application of what is Halal or not goes deeper and applies to general business practises as well. Rules around Halal business practises include being truthful and transparent about what you can deliver to your clients.

Truthfulness and the pursuit of knowledge are key pillars in the Islamic faith. In fact, the Qur'an specifically warns against falsehood and deception. In Surah Al-Isra, Allah says, "And do not pursue that of which you have no knowledge. Indeed, the hearing, the sight, and the heart—about all those [one] will be questioned" (Qur'an 17:36). In this regard Gen AI poses a potential challenge. The ability to create realistic yet fictional content may be used to spread misinformation, manipulate opinion, and cause harm. The faith considers such misuse a sin and business practices that fail to employ AI ethically would be considered impressible (not Halal) by those who strictly adhere to Islamic business principles, hindering relationship building for those looking to enter Muslim majority markets.

Gen AI has also received some more complicated objections in certain sectors. For example, some observers see parallels between the rise of technology and the conditions preceding the arrival of the Dajjal (Antichrist) in Islamic faith. The Prophet Muhammad (peace be upon him) described the Dajjal as a deceiver, who will mislead humanity with illusions that blur truth and falsehood, making it hard to distinguish between them. In an era where Gen AI can create highly realistic information, it's understandable why some devout followers might be concerned.

This aside, according to the Fatwa Department of the Hashemite Kingdom of Jordan, another possible disadvantage is the technology may lead to the loss of intellectual and interpretive dimension that distinguishes Muslim scholars and experts. There have been attempts to use the technology to issue fatwas (rulings) around specific topics such as death rites, legal issues and the like. Jordanian scholars observed, however, that AI struggles with issuing fatwas as it cannot discern nuanced opinions across Islamic schools of thought, potentially causing confusion. Given the depth of knowledge that exists, Gen AI models would have to be specifically fed information that was not only relevant to the majority sect of the Shariah observant market but also keeps in mind the sub- sects and minority sects that exist. For instance, an AI programme used for generating content for Sunni majority Saudi Arabia could not be effective in Shia majority Iran and vice versa, limiting its effectiveness in providing accurate guidance.

Of course, these concerns are not exclusive to the Islamic faith. According to the 2024 Edelman Trust Barometer, AI is facing a challenge of public confidence. 43% of respondents will reject AI, avoiding products and services that incorporate it, if they believe innovation is being managed poorly. For brands harnessing Gen AI technology to be successful, it is essential they address concerns among their consumers. First, transparency is essential. AI brands must clearly communicate how their technologies work, potential risks and biases, as well as measures to prevent misuse and ambiguity. For instance, AI-generated content must be clearly labelled as such to prevent confusion or be mistaken for something ill intentioned.

In an Islamic context, data sets that are being accessed should be vetted either by ethics councils or cultural experts to ensure that the sources referenced are reliable. If deployed correctly, the technology holds great potential in not only providing Muslims with the means to verify the authenticity of information but also allow those of us operating outside these markets to easily distinguish between reliable and unreliable sources for our own research.

Secondly, AI brands should emphasise ethical use cases that benefit humanity to illustrate how they plan to deploy it for their specific projects. For example, marketing campaigns around public awareness could highlight how Gen AI can be used for educational purposes, medical advancements, or preserving cultural heritage. One that comes to mind is the Dubai government harnessing Gen AI to develop a service dedicated to providing religious guidance under its “10X” initiative, which it also hopes will help counter radicalisation. The principles of compassion, social justice, and community welfare are all deeply rooted in the Islamic faith, and thus demonstration of these can help earn trust and credibility amongst Muslim consumers.

Thirdly, AI companies and those deploying the technology must demonstrate a clear commitment to combating misinformation, fact checking and ensuring that potential biases are addressed. This might include safeguards to prevent the misuse of GenAI for ill-intentioned purposes such as creating fake news or to defraud or taking steps to continually reduce inherent bias in the training data. Gen AI, as observed by researchers at the London School of Economics, is prone to “hallucinations” where it fabricates information and sources. When it comes to Islamic religious research, they observed the AI model cite sources that do not exist which adds to concerns around the deployment of the technology when it comes to heavy research tasks. Brands should take a proactive and public stance in addressing these concerns and communicating their actions to build credibility in markets where ethical and religious considerations hold weight.

Finally, cultural sensitivity is paramount. Marketing materials, product designs, and user interfaces should reflect an understanding of the social and religious context of Islamic markets. For example, avoiding generating content that contradicts Islamic values or appears exploitative of religious themes. Pulling from linguistically diverse sources will also add a layer of added cultural understanding to Gen AI output and show that the technology is being genuinely tailored for the region that it is being deployed in. Gen AI’s role contributing to the rise of increasingly convincing misinformation and criminal activity is presenting concern around the world. According to its 2024 Generative AI in Cybersecurity report by cyber-security firm Deep Instinct, 61% of organisations experienced a rise in deep fake incidents in 2024. In January 2024, an employee at a Hong Kong- based firm sent US$25 million to fraudsters after being ordered to do so by her Chief Financial Officer on a video call that also included other colleagues, who all turned out to be deepfakes. Understandably the pace at which the technology is being developed is rapidly becoming cause for concern as people feel left behind.

However, the ethical and responsible development of Gen AI technology represents a shift in human capability that can deliver many positive benefits. Applications range from democratising education to improving patient care and enhancing sustainability. In a religious context, for instance, it could serve as a useful tool enabling the categorisation and organisation of Islamic fatwas and legal rulings based on scholars or references, as well as help people to verify the veracity of religious information. By emphasising transparency, ethics, combatting misinformation as well as respecting cultural context, brands can earn trust and navigate this evolving landscape. Particularly in predominantly Islamic markets such as Malaysia, Indonesia and the UAE where the unique intersection of faith, culture, and technology requires careful consideration. 

Edelman’s AI Center of Excellence 

Edelman's AI Center of Excellence is a global virtual team which leverages its expertise in trust dynamics to help brands use AI as a reliable, trust-building tool, as well as navigate the communications challenges the technologies presents. Operating as a global virtual network of specialists, the team monitors AI developments closely from different viewpoints to develop insights, solutions, and counsel for clients to navigate this rapidly evolving space. Edelman believes generative AI can revolutionise industries, transforming how we live, work, and interact.

Earlier this evening the Communication Leaders of Chicago honored the Edelman family for its lifetime service to the industry. Below, please read my acceptance speech, which I delivered on behalf of my family.

Chicago is the soul of Edelman. Dan Edelman started the firm with four people in the Merchandise Mart in 1952, He was one of the Greatest Generation, proud of his war time service in psychological warfare, determined to get ahead in the post-war years. He had a big idea, the power of third-party endorsement of products through the new media channel, television. He invented the media tour, putting spokespeople on the road for print, radio and broadcast interviews. My mother Ruth was Dan’s partner in building the company. She would meet and entertain clients and host charity events.

Chicago was the perfect place for an entrepreneur in the 50s and 60s. Edelman served brands that became the essence of family life in America, from Sara Lee to ReaLemon lemon juice to California Wines to Orville Redenbacher popcorn. We grew up with the founders and spokespeople of these companies like Charles Lubin, the little baker from the West Side, who pioneered frozen cakes. Teddy Bensinger gave me a McGregor baseball glove for serving as an unpaid model for his annual report in 1961. My brother John got to sit in the lap of Eva Gabor, spokesperson for California Wines, as she crooned “I was weaned on wine,” in her Hungarian accent.

Chicago was also the crucible of change for a nation bringing meaning to civil rights and struggling with the war in Vietnam. We have been privileged to know the Reverend Jesse Jackson for 50 years, including his two runs for President, which paved the way in 2008 for Barack Obama. My mother attended the trial of the Chicago Eight, leaders of the antiwar movement who came to Chicago to protest during the Democratic National Convention in 1968.

Chicago has been the hub of Edelman’s innovation, which has enabled us to remain family owned and independent. Edelman Digital was spawned doing the first Butterball Turkey Talk-Line online in 1996. Our first experiential work was based in Chicago, the Microsoft Explorasaurus bus touring the country to bring digital to the people. Dan also founded Zeno, Edelman’s sister firm in 1998 in Chicago, with my sister Renée as the founding member. Zeno Chicago is now the largest office in the Zeno network.

Chicago has also been the best expression of the firm’s commitment to the community. My parents were deeply involved in charitable causes, from their board memberships at the Lyric Opera, Art Institute and Immigrant Service League to my mother’s advocacy for Federal mental health funding in partnership with Illinois Senator Paul Simon. More recently, our team worked with the Department of Defense on its Warrior Games program, a multi-sport, adaptive competition for wounded, injured, or ill veterans to enhance their recovery and rehabilitation.

In the past two decades, Chicago has lost its great independent communications firms. Leo Burnett is part of Publicis, Draft and FCB part of IPG. That is not the future for Edelman. To paraphrase Robert Frost, we took the path less traveled and that made all the difference. Walk around the Edelman Museum on Canal Street. See the great work for long time clients such as Starbucks, Unilever, Walmart, and J&J. Understand the impact of Chicagoans in our Hall of Fame, including Pam Talbot, Nancy Ruschienski, Jay Porter, Dom DeFrisco and Betsy Plank.

On behalf of John and Renée and with the promise of continued service to the industry by my three daughters and in memory of my beloved parents who are smiling down on us tonight, I thank Ron Culp for the nomination and the Communication Leaders of Chicago for this incredible honor.

Richard Edelman is CEO.

 

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