45
1 Copyright © 2018 The Nielsen Company. Confidential and proprietary. THE WHOLE BIRD Understanding the drivers of chicken across the store

THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

Page 1: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

1Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

THE WHOLE BIRD

Understanding the drivers of chicken

across the store

Page 2: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

2Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

Meagan Nelson

Nielsen Fresh Growth & Strategy

Page 3: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

3Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

Meagan Nelson

Nielsen Fresh Growth & Strategy

Page 4: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

4Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

FORMER CHICKEN CHAMPION

Wayne County, Illinois

Circa ….a while ago

Page 5: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

5Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

TOTAL FMCG DOLLAR PERFORMANCE

$ SALESCURRENT

(TRILLIONS)

YEAR-AGO

(TRILLIONS)GROWTH

TOTAL FMCG MARKETNielsen All Outlets Combined (xAOC)

including grocery stores, drug stores,

mass merchandisers, select dollar

stores, select warehouse clubs and

Nielsen-covered measures of

Convenience, Pet, Military, BevAl &

E-commerce

$1.054T $1.019T +3.47%

TOTAL FMCG MARKET TIPS ONE TRILLION

Source: Nielsen Retail Measurement Services via Nielsen Total Food View, 52 weeks ended May 5, 2018, and Nielsen BevAl Suite, 52 weeks

ended April 21, 2018, and Nielsen Total Store Report on e-commerce measurement, 52 weeks ended Mar. 31, 2018

Page 6: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

6Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

E-COM GROWING, FRESH AN

OPPORTUNITY IN STORES TODAY

SIZING THE OPPORTUNITIES

Source: Nielsen Retail Measurement Services via Nielsen Total Food View, Total US xAOC, 52 weeks ended May 5, 2018, and Nielsen Total

Store Report on e-commerce measurement, 52 weeks ended Mar. 31, 2018

$177.9B

$13.0B

Fresh food E-commerce

Food & Beverage

FRESH & PERISHABLE FOODS

REACHED SALES NEARLY

THAT OF ALL FMCG

FOOD & BEVERAGE ONLINE.

14X

Page 7: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

7Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

CENTER STORE GREW, BUT FRESH FOODS HAVE THRIVED

DRIVERS OF GROWTH - FMCG BRICK & MORTAR

$750B

-$0.6B +$2.2B+$2.9B

$755B

+0.7%

2018 Non Edibles Fresh

Perishables

Center Store

Edibles

2018

Source: Nielsen Retail Measurement Services, Total Food View, Total U.S. xAOC, 52 weeks ended May 5, 2018, UPC-coded and random-

weight/Non-UPC data, excludes Alcohol

Share of Total

$ Sales31% 24% 46%

Page 8: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

8Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

MEAT AND DELI DRIVE GROWTH FROM THE PERIMETERPERIMETER AND CENTER OF STORE EDIBLES - DEPARTMENT PERFORMANCE

Source: Nielsen Retail Measurement Services, Total Food View, Total U.S. xAOC, 52 weeks ended May 5, 2018, UPC-coded and random-

weight/Non-UPC data

PERIMETER OF STORE: $178B

$ Vol

(Billions)

$ %

Growth

Unit Vol

(Billions)

Unit %

Growth

MEAT 66.8 1.5 19.0 0.1

PRODUCE 60.4 0.3 35.7 -2.9

DELI 32.7 2.8 7.3 3.4

BAKERY 12.9 1.2 4.7 2.4

SEAFOOD 5.1 1.5 0.7 -1.3

CENTER OF STORE: $344B

$ Vol

(Billions)

$ %

Growth

Unit Vol

(Billions)

Unit %

Growth

GROCERY 227.0 0.8 96.2 -0.6

DAIRY 66.2 0.5 24.8 -1.6

FROZEN 51.2 1.8 14.2 0.2

Page 9: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

Copyright © 2018 The Nielsen Company. Confidential and proprietary.

ONE LITTLE BIRD,

VERY BIG BUSINESS

Page 10: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

10Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRD

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$10.6B

Page 11: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

11Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRDMeat

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$11.9B

Page 12: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

12Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRDMeat, Frozen

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$18.9B

Page 13: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

13Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRDMeat, Frozen, Deli

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$25.5B

Page 14: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

14Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRDMeat, Frozen, Deli, Grocery, and Dairy

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$26.2B

Page 15: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

15Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRDMeat, Frozen, Deli, Grocery, and Dairy

Chicken as an ingredient

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$35.5B

Page 16: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

16Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$35.5B

ONE LITTLE BIRD, VERY BIG BUSINESS

Page 17: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

17Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRD + LOTS OF LITTLE EGGS

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$35.5B

$5.3B

Page 18: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

18Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

$35.5B

$32.6B

ONE LITTLE BIRD + LOTS OF LITTLE EGGS

EVEN BIGGER BUSINESS

Page 19: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

19Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ONE LITTLE BIRD + LOTS OF LITTLE EGGS =

EVEN BIGGER BUSINESS

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

Department Chicken

Product

Chicken

Ingredient

Meat $11.9B $1.8B

Frozen $7.0B $3.9B

Deli $6.6B $916M

Grocery $560M $2.4B

Dairy $129M $80M

Baby Care $86M

Produce $72M

Total $26.2B $9.3B

Chicken

Eggs

Contains

Eggs

$5.3B $27.3B

$35.5BDollars +1.5%

Units -0.6%

$32.6BDollars +3.3%

Units +0.4%

+1.7%

-0.4%+1.2%

-1.0%

Dollar Growth

Unit Growth

+13.2%

+1.3%+1.6%

+0.2%

Page 20: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

20Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

DELI CHICKEN DRIVING GROWTHChicken products in dairy/refrigerated case and produce also see development

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

34.8

34.9

35

35.1

35.2

35.3

35.4

35.5

35.6

Billio

ns

11.8

11.82

11.84

11.86

11.88

11.9

11.92

11.94

11.96

11.98

12

Billio

nsDollars Units

Page 21: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

21Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

DELI GROWTH IN MULTIPLE AREAS

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

Fully Cooked Meat

Prepared Foods

Lunchmeat

Meal Combos

$138M 14M Units

$38M 8M Units

$122M 24M Units

$12M 6M Units

Page 22: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

22Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

“CHICKEN AS INGREDIENT” GROWTHLocation matters – growth isn’t consistent across the store

Source: Nielsen Total Food View & Nielsen Product Insider, powered by Label Insight, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded

and random-weight/Non-UPC data

Frozen

Growing

Prepared Foods

Pizza

Declining

Fully Cooked Meat

Deli

Growing

Prepared Foods

Declining

Pizza

Grocery

Growing

Processed Meat

Sauces/Gravies

Declining

Prepared Foods

Page 23: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

23Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

CHICKEN A DRIVER IN MEAL KITS

Source: Nielsen 52 Weeks Ending 12.30.2017, UPC data xAOC, Non-UPC data FCA

Beef +2%

Chicken +19%

Pork -2%

4%growth of in-store

meal kits featuring

meat

Meal kits save time and curate an experience for the consumer

$154.7Min-store sales

+26% growth

Page 24: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

24Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

FRESH CHICKEN STILL KINGAt $10.6B, fresh raw chicken a primary driver in chicken performance

Source: Nielsen Total Food View, Total U.S. xAOC 52 Weeks Ending 6/2/18, UPC-coded and random-weight/Non-UPC data

30%

Fresh Chicken Category in Meat

Share of Total Chicken Sales

+2.5%

-0.8%

Dollar Growth

Pounds Growth

Thighs

Breast

Legs/Drumsticks

Whole Chicken

Top Drivers of Tonnage Shift

Page 25: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

25Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

MASS APPEAL, BUT VARIES BY CUTFamiliarly and usage of cuts resonate with different demographic groups

Source: Nielsen Homescan Total Shopper View Panel, 52 Weeks Ending 3/31/18

Picture: http://aggelakis.gr/en/chicken-anatomy/

Low-Income, Multi-Ethnic

Millennials, Young Kids

Older Generation, Asian

West Coast, Multi-Ethnic

Page 26: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

26Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

MANY CLAIMS CONTINUE SUSTAINED

GROWTH AT RETAIL

Source: Nielsen WellnessTrack, xAOC, Data Ending 12/30/2018

Source: Nielsen Global Sustainability Survey 2018

46%

Of Americans said

that claims on

food products

influence their

purchase

Page 27: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

27Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

FROM CLEAN LABEL TO SUSTAINABILITY

FARMED SEAFOOD -4%

Source: Nielsen Product Insider, powered by Label Insight, Latest 52 weeks ended 3/31/2018

SUSTAINABLE

SEAFOOD

+3%

DOLPHIN SAFE +4%

RECYCLABLE 0%

SUSTAINABLE

PACKAGING

0%

TERRACYCLE CERTIFIED +4%

FARM RAISED -19%

ANIMAL

WELFARE

- 4%

GRASS FED +24%

FREE RANGE +22%

PASTURE RAISED +12%

SUSTAINABLE

RESOURCE MGMT

+6%

RENEWABLE ENERGY +3%

SUSTAINABLE

FARMING

+14%

SUSTAINABLE FARMING +11%

SOCIAL

RESPONSIBILITY

+8%

FAIR TRADE +5%

B CORPORATION +15%

ETHICAL +11%

Claims continue to proliferate and segment across many value statements

Page 28: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

28Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

PRODUCTION CLAIMS CONTINUE TO GROWHealthy growth seen across the store in a wide variety of claims

Organic Hormone / AntibioticFree

Cage Free Grass Fed Free Range

Meat Department All Other Departments

Source: Nielsen Total Food View, Total U.S. xAOC 52 Weeks Ending 6/23/18, UPC-coded and random-weight/Non-UPC data

Claims are not mutually exclusive

$20.1

Billion$16.2

Billion

$2.1

Billion $907

Million$581

Million5%

25%8% 50% 26%

Total Dollar %

Change vs.

Prior Year+8% +7% +4% +22% +17%

Page 29: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

29Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

14% OF CHICKEN HAS PRODUCTION CLAIMSGrowth in true volume is mixed as Organic and Vegetarian Fed decline

86%

Antibiotic Free 5%

Organic4%

Antibiotic Free & Vegetarian Fed,

4%

Vegetarian Fed , 1%

Free Range Variations0.5%

14%

Conventional

Source: Nielsen Total Food View, Total U.S. xAOC 52 Weeks Ending 6/23/18, UPC-coded and random-weight/Non-UPC data

Claims are mutually exclusive

Production

Claims

Production Claims

$

Growth

Lbs.

Growth

Abs. Lbs.

Change

Antibiotic Free 9.4% 4.4% +5.5M

Organic 5.6% -4.5% -6.1M

Antibiotic Free & Veg Fed 4.3% 3.7% 3.5M

Vegetarian Fed -7.9% -10.7% -2.1M

Variations of Free Range 11.1% 21.4% +2.2M

Total 5.8% 0.8% +3.1M

Page 30: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

Copyright © 2018 The Nielsen Company. Confidential and proprietary.

THE PROTEIN STORY

Page 31: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

31Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

Meat Eggs Dairy Fish/seafood Legumes/nuts/seeds

MEAT, EGGS AND DAIRY ARE THE

PRIMARY SOURCES OF PROTEIN

Source: Nielsen, US Homescan Panel Protein survey, April 2017

78%

61% 58%

29%19%

ANIMAL PROTEIN PLANT-BASED PROTEIN

Top 5 protein sources – consumer survey

Page 32: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

32Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

Meat Eggs Dairy(cheese, milk,

yogurt)

Fish/seafood Legumes/nuts/seeds

SPENDING ON THESE PROTEINS LOOKS

VERY DIFFERENT

Source: Nielsen Total Food View 52 Wks Ending 6/9/18 xAOC, UPC-coded and random-weight/Non-UPC data

1.8%

13.8%

-2.2%

3.4% 1.4%

ANIMAL PROTEIN PLANT-BASED PROTEIN

Ranked top 5 protein sources from consumer survey

Total $ Sales and $ Growth

$85B $5B $41B $12B $6B

Page 33: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

33Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

CONSUMERS INTEND TO EAT MORE FISH

AND LEGUMES, LESS MEAT

14 14 1019 15

5378 80

64 55

22

5 8 7 11

MORE

SAME

LESS

% who are planning to consume more, about the same amount, or less*

MEAT DAIRYEGGSFISH/

SEAFOOD

LEGUMES/

NUTS/

SEEDS

* Difference to a total of 100: Do not consumeSource: Nielsen, US Homescan Panel Protein survey, April 2017

Page 34: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

34Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

POP QUIZ!

What percentage of consumers

correctly identified chicken as a high

protein content food?

18%

28%

38%

48%

58%

Page 35: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

35Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

POP QUIZ!

What percentage of consumers

correctly identified chicken as a high

protein content food?

What percentage of consumers

incorrectly identified peanut butter as

a high protein content food?

18%

28%

38%

48%

58%

12%

22%

32%

42%

52%

Page 36: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

36Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

POP QUIZ!

What percentage of consumers

correctly identified chicken as a high

protein content food?

What percentage of consumers

incorrectly identified peanut butter as

a high protein content food?

18%

28%

38%

48%

58%

12%

22%

32%

42%

52%

Page 37: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

37Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

POP QUIZ!

What percentage of consumers

correctly identified chicken as a high

protein content food?

What percentage of consumers

incorrectly identified peanut butter as

a high protein content food?

18%

28%

38%48%

58%

Source: Nielsen Omnibus Survey December 2015

12%

22%

32%

42%

52%

Page 38: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

38Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

POP QUIZ!

What percentage of consumers

correctly identified chicken as a high

protein content food?

What percentage of consumers

incorrectly identified peanut butter as

a high protein content food?

18%

28%

38%48%

58%

12%

22%

32%42%

52%

Source: Nielsen Omnibus Survey December 2015

Page 39: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

39Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

SHOPPERS FAILED PROTEIN KNOWLEDGE

Source: Nielsen Omnibus Survey December 2015

45%-63% of consumers do not consider beef, chicken or pork high protein

Product Low Protein(<10 grams) Medium Protein(10-20 grams) High Protein(>20 grams)

Peanut Butter (2 tbsp) 21% 47% 32%

Jerky (1 oz) 37% 41% 22%

Greek Yogurt (5.3 oz) 36% 49% 15%

Protein Bar (1 bar / 1.76 oz) 20% 48% 32%

Cottage Cheese (1 cup) 38% 49% 13%Chicken Breast (3oz) 11% 51% 38%Ribeye Steak (3 oz) 7% 38% 55%Pork Loin (3 oz) 13% 50% 37%

Percent of consumers assigning protein content

Page 40: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

40Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

PROTEIN IS BIG BUSINESS

Source: Nielsen Product Insider, powered by Label Insight, 52 weeks ending 06/9/2018

Meat department items are meat alternatives/vegetarian meat products

DELI

$166M

-0.5%

TOTAL DOLLAR SALES OF PRODUCTS THAT FDA CLASSIFIES AS GOOD OR EXCELLENT SOURCE OF PROTEIN*

PRODUCE

$37M

+17%

GROCERY

$16B

+1%

DAIRY

+953M

+0.1%ACROSS THE STORE THESE PRODUCTS

GREW DOLLARS BY 1.3% FROM YA

FROZEN

$6B

+2%

BAKERY

$168M

-4%

$22.6BSales of product

good or excellent

source of protein

outside of 5 core

protein groups

*Excludes top 5 protein sources from consumer survey

MEAT

$93M

+15%

Page 41: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

41Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

THE PLANT-BASED BOOM!

TOFU -13%

BROWN RICE -4%

GRANOLA -3%

RICE CAKES +5%

TRADITIONAL PLANT-BASED OPTIONS

DECLINING: -1.3% VS YA

INNOVATIVE PLANT-BASED OPTIONS

GROWING: +18.1% VS YA

PLANT-BASED CREAM +25%

PLANT-BASED NUTRITION & DIET +15%

PLANT-BASED YOGURT +31%

PLANT-BASED PIZZA +21%

VEGGIE NOODLES +115%

NON DIARY MILKS +4%

ALTERNATIVE CHEESE +45%

MEAT ALTERNATIVES +30%

Source: Nielsen Product Insider, powered by Label Insight, Latest 52 weeks ended 4/07/2018

Innovative Plant Based: Plant Based Products (Creamers, Diet and Nutrition, Marshmallows, Oils/Butters, Pizza, Sour Cream, Yogurt), Vegetable

Noodles, Chickpeas, Non-Dairy Milk, Alternative Cheese, Meat Alternatives, Meat Substitutes, VegetarianImages: Thrive.com, HEB.com

Page 42: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

42Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

MEAT ALTERNATIVES NEXT DOOR

Page 43: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

43Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

ALTERNATIVE MEAT OVER $800MLess than 1/10th the size of fresh meat chicken, but growing fast!

Source: Nielsen Total Food View, Total U.S. xAOC 52 Weeks Ending 6/23/18, UPC-coded and random-weight/Non-UPC data

LUNCHMEAT2%

FRESH MEAT2%

PROCESSED MEAT18%

PREPARED FOODS

27%

FULLY COOKED MEAT51%

Fully Cooked Meat 22% 19%

Prepared Foods 54% 59%

Processed Meat 18% 15%

Fresh Meat 23% 19%

Lunchmeat 12% 9%

$ Growth Unit Growth

Page 44: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

44Cop

yri

gh

t ©

20

18

Th

e N

iels

en

Com

pa

ny.

Co

nfid

en

tia

l a

nd

pro

pri

eta

ry.

SEE THE TOTAL PICTURE TO FIND GROWTH

COMPETITION IN UNLIKELY PLACES

TELL YOUR STORY

Page 45: THE WHOLE BIRD - Watt Global Media · Baby Care $86M Produce $72M Total $26.2B $9.3B Chicken Eggs Contains Eggs $5.3B $27.3B $35.5B Dollars +1.5%-0.6% $32.6B Dollars +3.3% Units +0.4%

Copyright © 2018 The Nielsen Company. Confidential and proprietary.