US Eating Consumer Trends in 2016

1

Copyright ©�2016 Information Resources, Inc. (IRI). Confidential and proprietary.

THE CONSUMER PLAYBOOK

SALLY%LYONS%WYATT%Execu&ve(&(Prac&ce(Leader(

Consumer eating trends driving industry and

bakery growth


THE%GAME%PLAN%

The(Equipment((Methodology)(

Top(Scores((Headlines)(

Past(and(Present(Teams((Ea&ng(Trends)(

Plays(of(the(Day((Millennials,(Hispanics,(H&W,(&(Retail)(

How(to(Win(Going(Forward((The(Strategy)(


THE%EQUIPMENT%

1 2 3Sales

Performance Shopping Behavior

Customer(AKtudes(

IRI Market Advantage™ 52 Weeks ending 1/24/16 – unless

noted otherwise

MULO+C = Food, Drug, MassX, Club, Dollar, Walmart, Military, and

Convenience

BAKERY = Bagels/Bialys, Bakery Snacks, English Muffins, Fresh Bread & Rolls, Pastry Doughnuts, Pies & Cakes

Technomic

IRI Consumer Network™ IRI 2015 Consumer Snacking Study

IRI 2013 Consumer Eating Study


TOP%SCORES%$1.3(Trillion(spent(in(ea&ng(and(drinking(in(a(diverse(landscape(

The(quest(for(simple(ingredients(and(fresh(products(is(

providing(opportuni&es(for(the(baking(community(to(

communicate(with(and(serve(American(shoppers(

Products(associated(with(nutri&on(fueling(growth(

Consumers(across(genera&ons(have(a(variety(of(ea&ng(

trends(that(will(impact(growth(over(the(next(5(years(


Consumers(are(spending(over(($1.3%Trillion%(in(the(ea&ng(landscape(

42% Retail -

MULO + C F&B

20% Limited Service

Restaurants 6%

Travel & Leisure

3% Retail Hosts

1% Business & Industry

18% Full Service Restaurants

10% All Other


THE%EATING%LANDSCAPE%IS%DIVERSE%

Websites%

1





bakery growth


THE%GAME%PLAN%







THE%EQUIPMENT%

1 2 3Sales


Customer(AKtudes(


noted otherwise


Convenience


Technomic













42% Retail -

MULO + C F&B

20% Limited Service

Restaurants 6%

Travel & Leisure

3% Retail Hosts



10% All Other



Websites%

1





bakery growth


THE%GAME%PLAN%







THE%EQUIPMENT%

1 2 3Sales


Customer(AKtudes(


noted otherwise


Convenience


Technomic













42% Retail -

MULO + C F&B

20% Limited Service

Restaurants 6%

Travel & Leisure

3% Retail Hosts



10% All Other



Websites%

1





bakery growth


THE%GAME%PLAN%







THE%EQUIPMENT%

1 2 3Sales


Customer(AKtudes(


noted otherwise


Convenience


Technomic













42% Retail -

MULO + C F&B

20% Limited Service

Restaurants 6%

Travel & Leisure

3% Retail Hosts



10% All Other



Websites%

1





bakery growth


THE%GAME%PLAN%







THE%EQUIPMENT%

1 2 3Sales


Customer(AKtudes(


noted otherwise


Convenience


Technomic













42% Retail -

MULO + C F&B

20% Limited Service

Restaurants 6%

Travel & Leisure

3% Retail Hosts



10% All Other



Websites%

1





bakery growth


THE%GAME%PLAN%







THE%EQUIPMENT%

1 2 3Sales


Customer(AKtudes(


noted otherwise


Convenience


Technomic













42% Retail -

MULO + C F&B

20% Limited Service

Restaurants 6%

Travel & Leisure

3% Retail Hosts



10% All Other



Websites%

2


Food%Trucks%



Restaurants%



VENDING%MACHINES%HAVE%EVOLVED%TO%ADDRESS%CONSUMER%NEEDS%AND%DEMAND%MOMENTS%


PAST%AND%PRESENT%TEAMS:%Household(dynamics(have(resulted(in(shiSs(in(cooking(and(ea&ng(behavior(

1950s Singles%Living%Alone:%9.3%(Married%Couples%w/%Kids:(55.1%(Married%Couples%w/o%Kids:(23%(5+%person%HH:(21.4%(Average%HH%Spend%on%Food%Per%Week:%$23(TV#dinners,#created#by#C.A.#Swanson#&#Sons,#were#introduced#in#1953.#

1970s%(Singles%Living%Alone:%17.1%(Married%Couples%w/%Kids:(40.3%(Married%Couples%w/o%Kids:(30.3%(5+%person%HH:(20.9%(Average%HH%Spend%on%Food%Per%Week:%$37(In#1971,#the#Quarter#Pounder#premiered#at#McDonald’s#for#53#cents.#

1990s Singles%Living%Alone:%24.6%(Married%Couples%w/%Kids:(26.3%(Married%Couples%w/o%Kids:(29.8%(5+%person%HH:(10.4%(Average%HH%Spend%on%Food%Per%Week:%$106(1993#marks#the#launch#of#SnackWell’s#reducedJfat#cookies.#

2000s%(Singles%Living%Alone:%27.5%(Married%Couples%w/%Kids:(19.6%(Married%Couples%w/o%Kids:(29.1%(5+%person%HH:(9.6%(Average%HH%Spend%on%Food%Per%Week:%$151(Home#delivery#of#grocery#items#is#launched#by#a#major#eJcommerce#company#in#2007.#

Source:(www.census.gov;(www.gallup.com(


EVOLUTION%OF%%COOKING%AND%EATING%The%“Then”%Team%Tried and true family recipes

Three meals a day

Cooking as a chore

Source: WBTB Shopping Study, November 2014 Copyright ©�2016 Information Resources, Inc. (IRI). Confidential and proprietary.

The(U.S.(Shopper(is((Becoming(More(Diverse(

309M USA Population 2010

3M White

10%

growth

13M Hispanic

53%

growth

4M Black

16% growth

4M Asian

15% growth

1M Other

5% growth

Hispanics(will(account(for((53%%of%popula\on%growth%


2


Food%Trucks%



Restaurants%













Three meals a day

Cooking as a chore




3M White

10%

growth

13M Hispanic

53%

growth

4M Black

16% growth

4M Asian

15% growth

1M Other

5% growth



2


Food%Trucks%



Restaurants%













Three meals a day

Cooking as a chore




3M White

10%

growth

13M Hispanic

53%

growth

4M Black

16% growth

4M Asian

15% growth

1M Other

5% growth



2


Food%Trucks%



Restaurants%













Three meals a day

Cooking as a chore




3M White

10%

growth

13M Hispanic

53%

growth

4M Black

16% growth

4M Asian

15% growth

1M Other

5% growth



2


Food%Trucks%



Restaurants%













Three meals a day

Cooking as a chore




3M White

10%

growth

13M Hispanic

53%

growth

4M Black

16% growth

4M Asian

15% growth

1M Other

5% growth



2


Food%Trucks%



Restaurants%













Three meals a day

Cooking as a chore




3M White

10%

growth

13M Hispanic

53%

growth

4M Black

16% growth

4M Asian

15% growth

1M Other

5% growth



3


PLAYERS%HAVE%CHANGED%]%%More(people(working(and(not(re&ring(at(65(


Consumers(want(to(consume(fresher((foods(as(part(of(their(wellness(goals(

Source:(Na&onal(Consumer(Panel(Survey:(Total(US:(CY(2013(

Health and Wellness Trends Being physically fit & active Consuming fresher foods Consuming more Gluten-free foods Feeling good about yourself Portion control Buying organic / natural products Not being overweight Cooking at home / eating with family


EATING%OCCASIONS(HAVE%CHANGED%

“I%eat%3%square%meals%%a%day%and%no%snacks”%

“I%eat%3%square%meals%and%several%snacks”%

“I%eat%4]5%mini%meals”%

“I%eat%on%the%run%and%grab%food%when%I%have%a%chance”%


LEADING%TO%“TODAY’S”%TEAM%COOKING%AND%EATING%STYLE%

“Social” recipes

Hybrid homemade & meal preparation

Cooking is fun

Source: WBTB Shopping Study, November 2014


We are obsessed with food


Q:%Family(commitments/(priori&es%

Q:%What(&me(is(it?%

Q:%Who(is(ea&ng((with(me?%

Q:%Have(I(seen(any((coupons(or(deals?%

Q:%What(is(at(home((in(the(fridge?%

Q:%How(much((money(do(I(have?%

THE%TRICK%PLAY%FOR%THE%DECISION%OF%EATING]IN%OR%DINING]OUT%HAS%BECOME%COMPLICATED%

3

















Cooking is fun






Q:%What(&me(is(it?%






3

















Cooking is fun






Q:%What(&me(is(it?%






3

















Cooking is fun






Q:%What(&me(is(it?%






3

















Cooking is fun






Q:%What(&me(is(it?%






3

















Cooking is fun






Q:%What(&me(is(it?%






4


FOOD%SERVICE%GAME%PLAN%HAS%BEEN%WINNING%%FOR%THE%PAST%THREE%YEARS%(OUTPACING%RETAIL)%

Food((Service% Retail(f((

MULO+C(F&B(

2.4%(

4.0%(

3.1%(3.3%(

3.9%(

5.1%(

3.3%(

1.8%(

2.7%(2.9%(

2011( 2012( 2013( 2014( 2015(

Dollar(Sales(Growth(

Source: Technomic Industry Forecast & IRI Total Store Advantage Copyright ©�2016 Information Resources, Inc. (IRI). Confidential and proprietary.

AT%RETAIL,%THE%PERIMETER%IS%BECOMING:%The(fulcrum(point(for(maximum(retail(differen&a&on((Base(for(deeper(and(more(engaging(customer(experiences((Focus(for(space(expansion(


WITH%PERIMETER%GROWTH%IS%+4.5%%

Source: IRI FreshLook POS data, MULO, 52 weeks ending 11/29/2015


BAKERY%GAME%PLAN%HAS%BEEN%WINNING%%FOR%THE%PAST%TWO%YEARS%(OUTPACING%FOOD%&%BEV)%

Bakery%MULO+C%

F&B(MULO+C(

5.3(

3.5(

1.8(

2.8( 2.9(

6.7(

0.7( 0.6(

3.4(3.1(

2011( 2012( 2013( 2014( 2015(



GENERAL%%(+2.0%%YAGO)%

BEVERAGES%(+5.4%YAGO)%

FROZEN%(+1.3%%YAGO)%

REFRIGERATED%(+2.5%%YAGO)%

BAKERY%IS%COMING%ON%STRONG%

Source:(CAGR(f(IRI(Infoscan(TSV(data:(CY(2010–(2015:(Total(US(–(MULO+C(

BAKERY%(+3.1%%YAGO)%

4.2%%

3.7%%

2.9%%

2.5%%

1.6%%CAGR

CAGR

CAGR

CAGR

CAGR


THE%BAKERY%AISLE%IS%GROWING%FASTER%THAN%OTHER%BAKING%CATEGORIES%

Bakery%Aisle%

+2.9%%5(Yr($(CAGR(

Baking%Mixes%

+3.1%%YAGO(

Rfg%Baked%Goods% Fz%Baked%Goods%

]0.9%%5(Yr($(CAGR(

]6.4%%YAGO(

]0.2%%5(Yr($(CAGR(

]0.5%%YAGO(

+0.6%%5(Yr($(CAGR(

+1.1%%YAGO(

4




MULO+C(F&B(

2.4%(

4.0%(

3.1%(3.3%(

3.9%(

5.1%(

3.3%(

1.8%(

2.7%(2.9%(

2011( 2012( 2013( 2014( 2015(









Bakery%MULO+C%

F&B(MULO+C(

5.3(

3.5(

1.8(

2.8( 2.9(

6.7(

0.7( 0.6(

3.4(3.1(

2011( 2012( 2013( 2014( 2015(










4.2%%

3.7%%

2.9%%

2.5%%

1.6%%CAGR

CAGR

CAGR

CAGR

CAGR



Bakery%Aisle%

+2.9%%5(Yr($(CAGR(

Baking%Mixes%

+3.1%%YAGO(


]0.9%%5(Yr($(CAGR(

]6.4%%YAGO(

]0.2%%5(Yr($(CAGR(

]0.5%%YAGO(

+0.6%%5(Yr($(CAGR(

+1.1%%YAGO(

4




MULO+C(F&B(

2.4%(

4.0%(

3.1%(3.3%(

3.9%(

5.1%(

3.3%(

1.8%(

2.7%(2.9%(

2011( 2012( 2013( 2014( 2015(









Bakery%MULO+C%

F&B(MULO+C(

5.3(

3.5(

1.8(

2.8( 2.9(

6.7(

0.7( 0.6(

3.4(3.1(

2011( 2012( 2013( 2014( 2015(










4.2%%

3.7%%

2.9%%

2.5%%

1.6%%CAGR

CAGR

CAGR

CAGR

CAGR



Bakery%Aisle%

+2.9%%5(Yr($(CAGR(

Baking%Mixes%

+3.1%%YAGO(


]0.9%%5(Yr($(CAGR(

]6.4%%YAGO(

]0.2%%5(Yr($(CAGR(

]0.5%%YAGO(

+0.6%%5(Yr($(CAGR(

+1.1%%YAGO(

4




MULO+C(F&B(

2.4%(

4.0%(

3.1%(3.3%(

3.9%(

5.1%(

3.3%(

1.8%(

2.7%(2.9%(

2011( 2012( 2013( 2014( 2015(









Bakery%MULO+C%

F&B(MULO+C(

5.3(

3.5(

1.8(

2.8( 2.9(

6.7(

0.7( 0.6(

3.4(3.1(

2011( 2012( 2013( 2014( 2015(










4.2%%

3.7%%

2.9%%

2.5%%

1.6%%CAGR

CAGR

CAGR

CAGR

CAGR



Bakery%Aisle%

+2.9%%5(Yr($(CAGR(

Baking%Mixes%

+3.1%%YAGO(


]0.9%%5(Yr($(CAGR(

]6.4%%YAGO(

]0.2%%5(Yr($(CAGR(

]0.5%%YAGO(

+0.6%%5(Yr($(CAGR(

+1.1%%YAGO(

4




MULO+C(F&B(

2.4%(

4.0%(

3.1%(3.3%(

3.9%(

5.1%(

3.3%(

1.8%(

2.7%(2.9%(

2011( 2012( 2013( 2014( 2015(









Bakery%MULO+C%

F&B(MULO+C(

5.3(

3.5(

1.8(

2.8( 2.9(

6.7(

0.7( 0.6(

3.4(3.1(

2011( 2012( 2013( 2014( 2015(










4.2%%

3.7%%

2.9%%

2.5%%

1.6%%CAGR

CAGR

CAGR

CAGR

CAGR



Bakery%Aisle%

+2.9%%5(Yr($(CAGR(

Baking%Mixes%

+3.1%%YAGO(


]0.9%%5(Yr($(CAGR(

]6.4%%YAGO(

]0.2%%5(Yr($(CAGR(

]0.5%%YAGO(

+0.6%%5(Yr($(CAGR(

+1.1%%YAGO(

4




MULO+C(F&B(

2.4%(

4.0%(

3.1%(3.3%(

3.9%(

5.1%(

3.3%(

1.8%(

2.7%(2.9%(

2011( 2012( 2013( 2014( 2015(









Bakery%MULO+C%

F&B(MULO+C(

5.3(

3.5(

1.8(

2.8( 2.9(

6.7(

0.7( 0.6(

3.4(3.1(

2011( 2012( 2013( 2014( 2015(










4.2%%

3.7%%

2.9%%

2.5%%

1.6%%CAGR

CAGR

CAGR

CAGR

CAGR



Bakery%Aisle%

+2.9%%5(Yr($(CAGR(

Baking%Mixes%

+3.1%%YAGO(


]0.9%%5(Yr($(CAGR(

]6.4%%YAGO(

]0.2%%5(Yr($(CAGR(

]0.5%%YAGO(

+0.6%%5(Yr($(CAGR(

+1.1%%YAGO(

5


%%change%v.%YAGO(

SWEET%NOT%SAVORY%IS%DRIVING%BAKERY’S%GROWTH%RATES%

PIES%&%CAKES%+7.7%%

FRESH%BREAD%&%ROLLS%+1.1%% BAGELS%]0.3%%

DONUTS%/%PASTRIES%+6.9%% BAKERY%SNACKS%+6.7%%


Top%Growing%(%%change%v.%YAGO%&%5%Year%Dollar%Sales%CAGR)(

MAJORITY%OF%GROWTH%OF%BAKERY/BAKED%GOODS%CATEGORIES%FALL%IN%THE%BAKERY%AISLE%

PASTRY/DANISH/%%%%%COFFEE%CAKE%

+5.0%%+4.5%%CAGR%

PIECRUST%MIXES%+16.8%%%

]1.6%%CAGR%

FROZEN%COOKIE%DOUGH%+77.7%%%

+29.7%%CAGR%

RFG%PIES%+8.2%%

]2.0%%CAGR%

PIES%+11.2%%%

+5.6%%CAGR%

CUPCAKES%+6.9%%

+7.2%%CAGR%CAKES%+6.3%%

+6.2%%CAGR%

DONUTS%+5.4%%

+4.8%%CAGR%

MUFFINS%+14.3%%

+5.7%%CAGR%

ENGLISH%MUFFINS%+4.5%%

+2.9%%CAGR%


PLAYS%OF%THE%DAY:%Millennials(&(Hispanics(


Acculturated Hispanics 10% +53%

THE%FACT%THAT%HISPANICS%AND%MILLENNIALS%ARE%THE%%FASTEST%GROWING%POPULATION%INDICATES%THE%NEED%TO%INNOVATE%

Population by Key Generations%

Source: ILD National Consumer Panel, Total US-All Outlets, Latest 52 wks ending Jan 24, 2016

10%%

21%%

18%%

22%%

5%%

25% +58%

21%

17%

3% +15%

Millennials (18-34)

Young Boomers (45-54)

Older Boomers (55-64)

Asians

Bakery $ Dist.

Pop Growth 2020

-12%


25%%of(Millennials(eat(foods(that(are((

Cer\fied%Organic%%vs.((

17%%of(Young(Boomers(%19%%of(Older(Boomers(


ON]THE]GO%AND%BUSIER%LIFESTYLES%ARE%LEAVING%LESS%TIME%FOR%THE%%YOUNGER%GENERATION%TO%STICK%TO%OLD%SCHOOL%FORMAL%MEALS%

Millennials(look(for((GREATER%%

BREAKFAST%OPTIONS%%such(as(later(hours,(breakfasts(all(day,(ethnic(ingredients,(gourmet(

op&ons(and(and(healthier(ingredients(

5


%%change%v.%YAGO(


PIES%&%CAKES%+7.7%%







+5.0%%+4.5%%CAGR%


]1.6%%CAGR%


+29.7%%CAGR%

RFG%PIES%+8.2%%

]2.0%%CAGR%

PIES%+11.2%%%

+5.6%%CAGR%

CUPCAKES%+6.9%%

+7.2%%CAGR%CAKES%+6.3%%

+6.2%%CAGR%

DONUTS%+5.4%%

+4.8%%CAGR%

MUFFINS%+14.3%%

+5.7%%CAGR%


+2.9%%CAGR%








10%%

21%%

18%%

22%%

5%%

25% +58%

21%

17%

3% +15%

Millennials (18-34)



Asians

Bakery $ Dist.

Pop Growth 2020

-12%










5


%%change%v.%YAGO(


PIES%&%CAKES%+7.7%%







+5.0%%+4.5%%CAGR%


]1.6%%CAGR%


+29.7%%CAGR%

RFG%PIES%+8.2%%

]2.0%%CAGR%

PIES%+11.2%%%

+5.6%%CAGR%

CUPCAKES%+6.9%%

+7.2%%CAGR%CAKES%+6.3%%

+6.2%%CAGR%

DONUTS%+5.4%%

+4.8%%CAGR%

MUFFINS%+14.3%%

+5.7%%CAGR%


+2.9%%CAGR%








10%%

21%%

18%%

22%%

5%%

25% +58%

21%

17%

3% +15%

Millennials (18-34)



Asians

Bakery $ Dist.

Pop Growth 2020

-12%










5


%%change%v.%YAGO(


PIES%&%CAKES%+7.7%%







+5.0%%+4.5%%CAGR%


]1.6%%CAGR%


+29.7%%CAGR%

RFG%PIES%+8.2%%

]2.0%%CAGR%

PIES%+11.2%%%

+5.6%%CAGR%

CUPCAKES%+6.9%%

+7.2%%CAGR%CAKES%+6.3%%

+6.2%%CAGR%

DONUTS%+5.4%%

+4.8%%CAGR%

MUFFINS%+14.3%%

+5.7%%CAGR%


+2.9%%CAGR%








10%%

21%%

18%%

22%%

5%%

25% +58%

21%

17%

3% +15%

Millennials (18-34)



Asians

Bakery $ Dist.

Pop Growth 2020

-12%










5


%%change%v.%YAGO(


PIES%&%CAKES%+7.7%%







+5.0%%+4.5%%CAGR%


]1.6%%CAGR%


+29.7%%CAGR%

RFG%PIES%+8.2%%

]2.0%%CAGR%

PIES%+11.2%%%

+5.6%%CAGR%

CUPCAKES%+6.9%%

+7.2%%CAGR%CAKES%+6.3%%

+6.2%%CAGR%

DONUTS%+5.4%%

+4.8%%CAGR%

MUFFINS%+14.3%%

+5.7%%CAGR%


+2.9%%CAGR%








10%%

21%%

18%%

22%%

5%%

25% +58%

21%

17%

3% +15%

Millennials (18-34)



Asians

Bakery $ Dist.

Pop Growth 2020

-12%










5


%%change%v.%YAGO(


PIES%&%CAKES%+7.7%%







+5.0%%+4.5%%CAGR%


]1.6%%CAGR%


+29.7%%CAGR%

RFG%PIES%+8.2%%

]2.0%%CAGR%

PIES%+11.2%%%

+5.6%%CAGR%

CUPCAKES%+6.9%%

+7.2%%CAGR%CAKES%+6.3%%

+6.2%%CAGR%

DONUTS%+5.4%%

+4.8%%CAGR%

MUFFINS%+14.3%%

+5.7%%CAGR%


+2.9%%CAGR%








10%%

21%%

18%%

22%%

5%%

25% +58%

21%

17%

3% +15%

Millennials (18-34)



Asians

Bakery $ Dist.

Pop Growth 2020

-12%










6


Millennials(eat(out((most(at(lunch%

Four%smaller%meals%%a(day(at(nonf(

tradi&onal(&mes%

Copyright ©�2016 Information Resources, Inc. (IRI). Confidential and proprietary. Source: ILD National Consumer Panel, Total US-MULO, Rolling 52 wks ending Mar 22, 2015, NBD Aligned

more(dollars(per(trip(vs.((Younger(&(Older(Boomers(($10.67%vs.%$9.94%vs.%$8.91%

Millennials%

less(deal(reliant(vs.((Younger(&(Older(Boomers((34.0%%vs.%35.9%%vs.%35.3%%

NOT%ONLY%ARE%THEIR%EATING%HABITS%DIFFERENT,%THE%WAY%THEY%SHOP%AT%THE%SUPERMARKETS%IS%ALSO%NOTE%WORTHY%


NOT%ONLY%ARE%THEIR%EATING%HABITS%DIFFERENT,%THE%WAY%THEY%SHOP%AT%THE%SUPERMARKETS%IS%

ALSO%NOTE%WORTHY%

larger(basket(size($65.27%vs.%$62.26%

more(dollars(per(trip(($10.03%vs.%$9.54%

less(deal(reliant(33.7%%vs.%35.5%%

Hispanics%


LIFESTYLES%ARE%%FAST%CHANGING%%WITH%EVOLUTION%%OF%TECHNOLOGY%

of(BifCultural(Hispanic(Millennials(look(for(recipes(

online((

75%


PLAYS%OF%THE%DAY:%Health(&(Wellness(


Source: IRI Infoscan TSV data: 52 Weeks Ending 1/24/16: Total US – MULO+C

%%OF%TOTAL%BUSINESS%BY%CLAIM%

CERTAIN%H&W%CLAIMS%ARE%MORE%ESTABLISHED%IN%BAKERY%

TOTAL%BAKERY% TOTAL%FOOD%&%BEV%

15%( 11%(

14%( 9%(

14%( 9%(

6%( 4%(

4%( 3%(

6




tradi&onal(&mes%



Millennials%





ALSO%NOTE%WORTHY%




Hispanics%




online((

75%








15%( 11%(

14%( 9%(

14%( 9%(

6%( 4%(

4%( 3%(

6




tradi&onal(&mes%



Millennials%





ALSO%NOTE%WORTHY%




Hispanics%




online((

75%








15%( 11%(

14%( 9%(

14%( 9%(

6%( 4%(

4%( 3%(

6




tradi&onal(&mes%



Millennials%





ALSO%NOTE%WORTHY%




Hispanics%




online((

75%








15%( 11%(

14%( 9%(

14%( 9%(

6%( 4%(

4%( 3%(

6




tradi&onal(&mes%



Millennials%





ALSO%NOTE%WORTHY%




Hispanics%




online((

75%








15%( 11%(

14%( 9%(

14%( 9%(

6%( 4%(

4%( 3%(

6




tradi&onal(&mes%



Millennials%





ALSO%NOTE%WORTHY%




Hispanics%




online((

75%








15%( 11%(

14%( 9%(

14%( 9%(

6%( 4%(

4%( 3%(

7


Trending

QUEST%FOR%WELLNESS%IS%BOOSTING%CLAIMS%THAT%ALIGN%TO%HIS%OR%HER%NEEDS%

Trailing

Dairy(

Omega(

Gluten(Free((

No(Added(Preserva&ves((

USDA(Organic(

All(Natural(

High Source Protein

Source/(Contains(Carbs(

NonfGMO(

Verified(

100%(Whole(Grain(

Net(Carb(

Fiber(

OMEGA(DHA/(EPA(

No/Low/Less(

Sodium(

Sugar(

Calories/(Serving(

Grain Blends

Artificial Sweetener


Top%H&W%Claims%Ranked%on%Dollar%Sales%%%Chg%vs%YA%

SOME%CLAIMS%ARE%GROWING%MORE%QUICKLY%IN%BAKERY%


HEALTH%&%WELLNESS%TRENDS%CONTINUE%TO%INCREASE%

Fears They Won’t Like

Natural/Organic Products

Proud of Buying Natural/Organic Products

True Believers

Enlightened Environmentalists

Strapped Seekers Indifferent Traditionalists

Healthy Realists

Resistant Non-Believers

Struggling Switchers

10% 10% 26% 15%

16%13%10%

Full(Spectrum(of(Natural/Organic(Buyers(

Source: IRI/Spins NaturalLink segmentation; IRI Consumer panel IRI FreshLook POS data; MULO, 52 weeks ending 11/29/2015, IRI analysis

10% 10%


True%Believers%

$70K(College(/((Post(Grad(

West(

42(avg.(age(75%(Caucasian(

My(Top(3(Priori&es(for…(

Willing(to(Pay(More(For…(

What(Holds(Me(Back(

My(Sources(of(Info.(Food & Beverage

Organic Non-GMO All Natural

Eco-Friendly Fair Trade

•  Expense(of(natural/organic(products(

•  Availability(of(natural/organic(op&ons(at(local(store(

•  No(allfnatural/organic(op&ons(available(for(products(I(like(

Source: IRI/Spins NaturalLink segmentation; IRI Consumer panel

Food & Beverage Made w/all natural ingredients

Made w/organic ingredients

Best taste


Enlightened%Environmentalists%

$59K(Post(Grad(

NE/West(

61(avg.(age(77%(Caucasian(Skew(African(American(



What(Holds(Me(Back(

My(Sources(of(Info.(

Food & Beverage

Made w/all natural ingredients

Best Taste


Food & Beverage Organic

All Natural Non-GMO




Celebrity(Chefs((Product(Labels(

Source: IRI/Spins NaturalLink segmentation; IRI Consumer panel Copyright ©�2016 Information Resources, Inc. (IRI). Confidential and proprietary.

Healthy%Realists%

$70K(Skews($100K+(College+(

Throughout(U.S.(




What(Holds(Me(Back(


Food(&(Beverage(

Best(taste(

Made(w/all(natural(ingredients(

Is(on(sale/coupon(

Food & Beverage

All Natural



7


Trending


Trailing

Dairy(

Omega(

Gluten(Free((


USDA(Organic(

All(Natural(

High Source Protein


NonfGMO(

Verified(

100%(Whole(Grain(

Net(Carb(

Fiber(

OMEGA(DHA/(EPA(

No/Low/Less(

Sodium(

Sugar(

Calories/(Serving(

Grain Blends










True Believers



Healthy Realists



10% 10% 26% 15%

16%13%10%



10% 10%


True%Believers%


West(




What(Holds(Me(Back(










Best taste



$59K(Post(Grad(

NE/West(




What(Holds(Me(Back(


Food & Beverage


Best Taste



All Natural Non-GMO






Healthy%Realists%


Throughout(U.S.(




What(Holds(Me(Back(


Food(&(Beverage(

Best(taste(


Is(on(sale/coupon(

Food & Beverage

All Natural



7


Trending


Trailing

Dairy(

Omega(

Gluten(Free((


USDA(Organic(

All(Natural(

High Source Protein


NonfGMO(

Verified(

100%(Whole(Grain(

Net(Carb(

Fiber(

OMEGA(DHA/(EPA(

No/Low/Less(

Sodium(

Sugar(

Calories/(Serving(

Grain Blends










True Believers



Healthy Realists



10% 10% 26% 15%

16%13%10%



10% 10%


True%Believers%


West(




What(Holds(Me(Back(










Best taste



$59K(Post(Grad(

NE/West(




What(Holds(Me(Back(


Food & Beverage


Best Taste



All Natural Non-GMO






Healthy%Realists%


Throughout(U.S.(




What(Holds(Me(Back(


Food(&(Beverage(

Best(taste(


Is(on(sale/coupon(

Food & Beverage

All Natural



7


Trending


Trailing

Dairy(

Omega(

Gluten(Free((


USDA(Organic(

All(Natural(

High Source Protein


NonfGMO(

Verified(

100%(Whole(Grain(

Net(Carb(

Fiber(

OMEGA(DHA/(EPA(

No/Low/Less(

Sodium(

Sugar(

Calories/(Serving(

Grain Blends










True Believers



Healthy Realists



10% 10% 26% 15%

16%13%10%



10% 10%


True%Believers%


West(




What(Holds(Me(Back(










Best taste



$59K(Post(Grad(

NE/West(




What(Holds(Me(Back(


Food & Beverage


Best Taste



All Natural Non-GMO






Healthy%Realists%


Throughout(U.S.(




What(Holds(Me(Back(


Food(&(Beverage(

Best(taste(


Is(on(sale/coupon(

Food & Beverage

All Natural



7


Trending


Trailing

Dairy(

Omega(

Gluten(Free((


USDA(Organic(

All(Natural(

High Source Protein


NonfGMO(

Verified(

100%(Whole(Grain(

Net(Carb(

Fiber(

OMEGA(DHA/(EPA(

No/Low/Less(

Sodium(

Sugar(

Calories/(Serving(

Grain Blends










True Believers



Healthy Realists



10% 10% 26% 15%

16%13%10%



10% 10%


True%Believers%


West(




What(Holds(Me(Back(










Best taste



$59K(Post(Grad(

NE/West(




What(Holds(Me(Back(


Food & Beverage


Best Taste



All Natural Non-GMO






Healthy%Realists%


Throughout(U.S.(




What(Holds(Me(Back(


Food(&(Beverage(

Best(taste(


Is(on(sale/coupon(

Food & Beverage

All Natural



7


Trending


Trailing

Dairy(

Omega(

Gluten(Free((


USDA(Organic(

All(Natural(

High Source Protein


NonfGMO(

Verified(

100%(Whole(Grain(

Net(Carb(

Fiber(

OMEGA(DHA/(EPA(

No/Low/Less(

Sodium(

Sugar(

Calories/(Serving(

Grain Blends










True Believers



Healthy Realists



10% 10% 26% 15%

16%13%10%



10% 10%


True%Believers%


West(




What(Holds(Me(Back(










Best taste



$59K(Post(Grad(

NE/West(




What(Holds(Me(Back(


Food & Beverage


Best Taste



All Natural Non-GMO






Healthy%Realists%


Throughout(U.S.(




What(Holds(Me(Back(


Food(&(Beverage(

Best(taste(


Is(on(sale/coupon(

Food & Beverage

All Natural



8


PLAYS%OF%THE%DAY:%Retail(


FOOD%62%%

SPECIALTY%2%(

Source: ILD National Consumer Panel, Total US-All Outlets, Year to Date ending May 17, 2015, NBD Aligned

FOOD%AND%MASS%HAVE%THE%LARGEST%SHARE%OF%WALLET%FOR%BAKERY%

MASS%25%% CLUB%

8%(

DOLLAR%2%(

Source: ILD National Consumer Panel, Total US-All Outlets, 52 Weeks ending 1/24/16

ALL%OTHER%1%(


MASS%TAKES%THE%GOLD%FOR%GROWTH%%%CHANGE%VS%YAGO%

MASS%3.4%%

DOLLAR%2.6%%

GROCERY%2.3%%

Source: ILD National Consumer Panel, Total US-All Outlets, 52 Weeks ending 1/24/16, NBD Aligned Copyright ©�2016 Information Resources, Inc. (IRI). Confidential and proprietary.

FOOD%$/Buyer($(Trip(Trips(

SPECIALTY%$/Buyer($(Trip(Trips(


MORE%FREQUENT%BAKERY%TRIPS%IS%ONE%OF%THE%DRIVERS%

MASS%$/Buyer($(Trip(Trips(

CLUB%$/Buyer($(Trip(Trips(

DOLLAR%$/Buyer($(Trip(Trips(

MILITARY%$/Buyer($(Trip(Trips(

Source: ILD National Consumer Panel, Total US-All Outlets, 52 Weeks ending 1/24/16, NBD Aligned

DRUG%$/Buyer($(Trip(Trips(


RETAILERS%HAVE%EVOLVED%PERIMETER%OFFERINGS%INTO%4%MODELS%

Sit%Down%Restaurants%(Ltd.(table(service((Mul&ple(dayparts(

Sophis\cated%Sta\ons%(Refined(op&ons((Café(sea&ng((

Easy%Meals%(Takeout(or((home(meal((replacement((

Limited%%Offerings%(Simple(meals(or(daypart(occasions(


MAKING%SHOPPING%AN%EXPERIENCE%

8




FOOD%62%%

SPECIALTY%2%(



MASS%25%% CLUB%

8%(

DOLLAR%2%(


ALL%OTHER%1%(



MASS%3.4%%

DOLLAR%2.6%%

GROCERY%2.3%%




















8




FOOD%62%%

SPECIALTY%2%(



MASS%25%% CLUB%

8%(

DOLLAR%2%(


ALL%OTHER%1%(



MASS%3.4%%

DOLLAR%2.6%%

GROCERY%2.3%%




















8




FOOD%62%%

SPECIALTY%2%(



MASS%25%% CLUB%

8%(

DOLLAR%2%(


ALL%OTHER%1%(



MASS%3.4%%

DOLLAR%2.6%%

GROCERY%2.3%%




















8




FOOD%62%%

SPECIALTY%2%(



MASS%25%% CLUB%

8%(

DOLLAR%2%(


ALL%OTHER%1%(



MASS%3.4%%

DOLLAR%2.6%%

GROCERY%2.3%%




















8




FOOD%62%%

SPECIALTY%2%(



MASS%25%% CLUB%

8%(

DOLLAR%2%(


ALL%OTHER%1%(



MASS%3.4%%

DOLLAR%2.6%%

GROCERY%2.3%%




















9


Individual Desserts

+18%over previous year

EMERGING%TRENDS%

Personalization

Entertainment

Customization (breads/cakes, etc)


Projecting retail bakery sales to be

+$28 Billion in 2020

WITH%ALL%OF%THESE%TRENDS,%THE%FUTURE%LOOKS%BRIGHT%FOR%BAKING%AT%RETAIL%%


HOW%TO%WIN%GOING%FORWARD%

1% Nutri&on(and(Wellness(

Consumers(want(cleaner(ea&ng(and(smarter(food(&(

beverage(choices(and(are(drawn(to(the(perimeter((

•  Highlight(how(your(products(fit(into(a(healthy(lifestyle((

•  Tie(Bakery(products(to(restfoffstore(to(deliver(

solu&ons(for(shoppers(

(

Use(storeflevel(insight(into(current(and(poten&al(

shoppers(to(iden&fy(customize(by(store(


CAPTURE%YOUR%GROWTH%OPPORTUNITIES%

2% Convenient(and(Simple((

Consumers(are(foodfsavvy(but(&mefstarved(

(

Strive(for(the(‘easy(buqon’(of(meal(solu&ons(–(convenient(

and(simple(

(

Let(shoppers(quickly(assemble(meals(and(clearly(

demonstrate(the(&me(savings(



3% Tailor(Made(Innova&on(&(Messaging(

Leverage(personaliza&on,(entertainment(and(

customiza&on(to(target(different(consumer(segments(

(

Foster(and(broaden(the(rela&onship(with(Millennial(

consumers(and(their(very(diverse(flavor(profiles(

(

Engage(shoppers(by(keeping(things(interes&ng(and(new(



4% Iden&fy(Ways(To(Reach(Each(Genera&on(

Inform(Millennials(about(the(exci&ng(flavors(and(

different(food(combina&on(ideas(with(baking(items(

Significant(crossfselling(benefits(by(u&lizing(infstore(

demonstra&ons(and(cooking(classes(infstore(

Merchandise(to(the(households(of(today,(which(are(

increasingly(smaller(households,(single(parent(

families,(and(mul&fcultural(families.(

9


Individual Desserts


EMERGING%TRENDS%

Personalization

Entertainment














(







(


and(simple(

(








(



(












9


Individual Desserts


EMERGING%TRENDS%

Personalization

Entertainment














(







(


and(simple(

(








(



(












9


Individual Desserts


EMERGING%TRENDS%

Personalization

Entertainment














(







(


and(simple(

(








(



(












9


Individual Desserts


EMERGING%TRENDS%

Personalization

Entertainment














(







(


and(simple(

(








(



(












9


Individual Desserts


EMERGING%TRENDS%

Personalization

Entertainment














(







(


and(simple(

(








(



(












10


THANK%YOU!%

Sally%Lyons%Wyaq%[email protected]%

Asian Food Regulation Information Service is a resource for the food industry. We have the largest database of Asian food regulations in the world – and it’s FREE to use. We publish a range of communication services (free and paid), list a very large number of food events and online educational webinars and continue to grow our Digital Library. Feel free to contact us anytime to talk about your specific requirements, offer comments, complaints or to compliment us.

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