dairy beverage reinvented reinventing milk to increase its relevance to millennial consumers 1
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Dairy Beverage Reinvented
Reinventing Milk to Increase its Relevance To Millennial Consumers
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Dairy Beverage Reinvented:Understanding the Millennial
• Goal: Grow milk/dairy consumption among the Millennial generation – influencers as individuals, parents and future leaders
• Research Objective: Understand current beverage habits and mindset of Millennials in order to develop new compelling beverage concepts that utilize milk and dairy ingredients
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Why Reinvent Milk?
• Flat fluid milk sales
• Declining per capita consumption
• Milk falls short between meals
• Milk under-indexes on key needs
• Aggressive beverage competition
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101520253035
Per Capita Consumption* of Fluid Milk - Gallons
Slow, continuous shift downward in
per capita fluid milk consumption
Source: USDA ERS
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Why Millennials?Large Dip in Milk Consumption as Individuals Transition from Youth to Young Adulthood
• Millennials less likely to drink milko Large dip in milk consumption as individuals
transition from youth to young adulthood (“age effect”)
o Erosion in milk consumption vs previous generations (“cohort effect”)
• Millennials more adventurous in food and beverage choices; many new products target this age group
• Definition of healthful beverages shifting
0 to 5 6 to 10 11 to 13 14 to 18 19 to 24 25 to 34 35 to 49 50 to 64 65+0
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152013 Fluid Milk Per Capita Drinking Occasions by Age
# O
cca
sio
ns
pe
r W
ee
k
Source: Kantar Beverage Panel
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• Racially/ethnically diverse• 21% Hispanic; 15% Black; 6% Asian; 3% 2+ Races• 1 in 3 immigrants is age 20-34
• Broad mix of life stages • 26% 18-32 year olds married
• Compared to 48% Boomers at same age and 65% of Silent Generation
Who are Millennials?
• No clear definition, most sources place in early adulthood
MILLENNIALSAge 18-33
22% of Population70 Million People
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What Defines Millennials?• Grew up during economic prosperity• Yet many entered work force during
recession• Many cannot get a job in their chosen field• Don’t expect to stay as long in a given job as
previous generations
• Rapid advance of technology during their life
• Social media is an everyday part of life
• Fiercely independent
• Feel powerful
• More liberal in views than older generations
• Information hungry
• Receptive to new ideas – often seek peer feedback
• Don’t have much to spend but will pay more for products
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Food and Beverage Habits Embraced by Millennials
Food is form of self expression
Food as source of entertainment
Value authenticity
Interested in how food is grown/produced
Less is more philosophy – clean labels, readable ingredients
More natural, organic foods
Appreciate reusable, recyclable, resealable
Embrace flavor variety, multicultural foods
Seek healthy options
Blurring of meals and snacks
Less brand loyal; willing to seek new outlets for food
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The Millennial Weekly Beverage Diary
% Who Drink Weekly (2013)
Beverage Share of Weekly Beverage Occasions
47% Dairy Milk 7%
68% Carbonated Soft Drinks 13%
48% Bottled Water 12%
46% Coffee 9%
44% Tea 7%
39% Fruit Juice 5%
26% Fruit Drink 3%
20% Drink Mixes 2%
15% Sports Drinks 1.2%
13% Smoothies 1%
10% Energy Drinks 0.8%
7% Nutritionals 0.8%
79% Tap Water 36%
Source: Kantar US Panel – Millennials approximated by age 19-34; self-reported beverage only consumption that is nationally projectable
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Products Gaining and Losing in Penetration and Occasions Among Millennials
WHOLE Milk
Non-Dairy Smoothies Total Coffee& Specialty
Fruit/Vegetable Blends
TapWater
DrinkMixes
ProteinDrinks
Beverages growing in penetration and share reflect food values embraced
A number of Millennials exiting the Dairy Milk, CSDS and Fruit Juice Categories
Fruit JuicePrimarily Orange Juice
DAIRYMilk
Carbonated SoftDrinks
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What Drives Millennial Beverage Consumption
Top Beverage Needs Over-index on these NeedsMix with alcohol
New/different
Was sick/ill
Purifying/clean
Before/during/after exercise
Quick energy
Provide lasting energy
Needs Gaining Most Share
Thirst
Go with my food
Like taste
Replenish fluids
Goes well with food/snack
Wake up
Treat
Cool off
Healthier choice
Fun
Relax
Help me relax
Cool off
Replenish fluids
Quick energy
Treat
Be sociable
Fun
Before/during/ after exercise
Warm up
Green highlight indicates these needs gaining more than population overall
Health and Wellness Need States:
Burning Problem:“When I start feeling a little hungry, my willpower goes out the window and I end up snacking…and then feel guilty. I wish there was a simple, nutrient-rich beverage to tide me over and help me avoid eating things I may regret later. Give me something to curb my cravings and leave me feeling satisfied.”
Frame of reference: Food snacks
Burning Problem:“Sometimes I feel run down or depleted after physical exertion and need a beverage to reinvigorate my body and help build me back up. I’m not a professional bodybuilder, so I don’t want anything too macho or extreme. Give me a beverage that provides all the nutritional benefits my body needs so I can recover quickly and feel great.”
Frame of reference: Protein drinks
8 Innovation Platforms that Address Millennial Beverage Needs
Burning Problem:“Sometimes it’s hard to get all the nutrients I need in a busy day. I want a tasty beverage that packs it all in. I want balanced nutrition from fruits, veggies, dairy, even nuts and seeds. I can’t always eat right, but I know I’m covered when I drink right.”
Frame of reference: Smoothies
Balanced and Real Weight Management/ Curb Hunger
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Burning Problem:“When I start feeling a little hungry, my willpower goes out the window and I end up snacking…and then feel guilty. I wish there was a simple, nutrient-rich beverage to tide me over and help me avoid eating things I may regret later. Give me something to curb my cravings and leave me feeling satisfied.”
Frame of reference: Food snacks
Recovery/Restore
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Tasty Treat/Fun Need State:
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• Tasty Pick-Me-Up • Refresh
• Burning Problem:• “Sometimes the real craving is a break from my routine…a
special ‘me’ time to sit back and get away from it all. Give me a beverage that is oh, so indulgent and fun to drink, that transports me to my happy place and gives me a multi-sensory experience – all without leaving my seat.”
• Frame of reference: Espresso drinks (e.g., lattes, macchiato, coffee concoctions)
Burning Problem:“When I’m thirsty, I want an ice cold beverage. Soft drinks, iced tea and juice drinks are refreshing thirst quenchers, but they can be full of sugar and empty calories. Give me a fun, exciting beverage that cools me down, but doesn’t weigh me down with unnecessary ingredients or calories.”
Frame of reference: Carbonated soft drinks and iced teas
8 Innovation Platforms that Address Millennial Beverage Needs
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8 Innovation Platforms that Address Millennial Beverage Needs
Burning Problem:“Sometimes the day is like a race to the finish line. When I start feeling sluggish, I don’t know if I’ll ever make it through. I need a beverage that gives me an energy boost to sustain me through my day. Current energy drinks are too intense for me. I want a nutritionally balanced drink that provides long-lasting energy, through real ingredients, that gets me to the finish line.”
Frame of reference: Energy drinks, protein-rich foods and beverages
Burning Problem:
“At the end of the day all I want is to relax and unwind. After all the hustle and bustle of the day, it’s time to slow things down when I get home. Give me a beverage made with simple, natural ingredients that prepares me for a good night’s rest.”
Frame of reference: Warm drink choices (e.g., tea and coffee); milk and cookies
Long-Lasting/Sustained Energy Sweet Dreams Milk
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Energy Need State: Relax Need State:Thirst/Hydration Need State:
Burning Problem:
“Everyday my body needs hydrating and water does the job of quenching my thirst. But, I’m always looking for beverages that multi-task, like a water that hydrates AND replenishes my body, by delivering essential nutrients - like vitamins, electrolytes, and protein. I want a refreshing beverage that can do it all.”
Frame of reference: Water and sports drinks
Multi-Purpose Super Waters
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MILLENNIALS will be a powerful force in transforming the food industry
Appeal to their sense of adventure