kerry_ helping healthier snacks taste better 03 11 16 -2
TRANSCRIPT
1 | Taste & Nutrition
Have Your Snack and Eat It Too:
Helping Healthier Snacks Taste Better
Naturally
Geri Berdak
VP, Strategic Marketing
March 11, 2016,
2 | Taste & Nutrition
Objectives of session
• Familiarize you with Kerry – The Taste and Nutrition Company
• Share top line perspective on snacking• Provide recommendations for manufactures
looking to enter or grow within this space
4 | Taste & Nutrition
KerryDelighting and nourishing consumers across the globe with products people enjoy and feel better about.
To be the leader in taste and nutrition for the global food, beverage and pharmaceutical industries, creating sustainable value for our customers, employees, environment, community and shareholders.
Our Vision
To help delight and nourish consumers across the globe.
Our Mission
Our Values
Commitment TeamworkExcellence
EntrepreneurshipValue Creation
5 | Taste & Nutrition
Unmatched Taste & Nutrition Solutions
Applications & Culinary Excellence
Insights & Innovation
Food & Beverage Heritage
Science & Technology
Kerry - The Taste & Nutrition Co.
Our heritage, knowledge and expertise enable us to deliver better taste, health and wellbeing globally.
5 | Taste & Nutrition
8 | Taste & Nutrition
Taste
We create great tasting products made from trusted, authentic and wholesome foods and flavours.
• Underpinned By: Understanding the
fundamental science of Taste
Flavour Texture Mouthfeel Appearance Aroma Sensory
• Unrivalled breadth of applications and
culinary expertise
• Leading sensorial science capability
• Delivered By: A Leading Taste Portfolio
To Technology & Products Page
9 | Taste & Nutrition
Nutrition
We develop more nutritious products that are inspired by and good for people.
• Underpinned By: Understanding the
fundamental science of Nutrition
Fortification Dietary Nutrition Life Stages Need States Taste
• Unparalleled functional technology
portfolio complemented by leading
authentic taste delivery
• Key partnerships with research and
educational institutions
• Delivered By: A leading Nutrition Portfolio
To Technology & Products Page
10 | Taste & Nutrition
What Consumers Want…
Fresh, Authentic
Convenient
Better-for-You Great Taste
SustainableTransparent Clean Labels
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Simply Nature
Great Taste. Pure and Simple.Simply Nature develops partnerships with farmers and growers the world over to learn the secrets of growing the most perfect vanilla, cocoa, coffee, fruit, vegetables, herbs and spices. We combine this with our technological awareness to extract the purest ingredients available.
• In-depth expertise in all-natural extraction processes to maintain real taste
• Fully traceable products, with declarable origins and all-natural labelling
• Expertise in tailoring extractsto suit local tastes
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US Snacking Segments: Value & Growth
Total Volume Description
Latest 52 Wks - W/E 12/26/15 2yr $ CAGR
Meat Snacks $ 2,676,173,271 9.5%
Bagged/Salty/Savory $ 31,346,605,166 3.5%
Confectionary $ 24,428,225,537 2.1%
Bars $ 5,078,841,087 4.3%
Bakery $ 19,480,062,711 2.4%
Dairy $ 11,573,876,300 4.4%
Snacking Grand Total$ 94,583,784,072 3.2%
Source: Nielsen AOD $ volume – xAOC plus Convenience, 52 weeks ending 12/26/15
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Frequency of snacking has increased in the US
Over the last decade there has been a 44% increase in people having at least 3 snacks per day.
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Source: US Department of Agriculture
17 | Taste & Nutrition17 | Snack Market Insights
Nearly all US adults are snacking… but Millennials are driving the category
• Millennials accounted for 32% of the total population in 2014 - one of the most populous generations in history.
• They are also the most avid snacks consumers, with 53% of the Millennial generation eating more than three snacks per week, compared to 42% for Generation X and 30% for Baby Boomers.
0%
20%
40%
60%
80%
100%
Millennials Generation X Baby boomers Swinggeneration
% o
f re
spo
nd
ents
World: Snack Consumption Outside the Home 2013
1-2 per week 3-4 per week
Source: Euromonitor International online consumer survey –Global Consumer Trends 2013
5-6 per week 7+ per week
Lives characterized by less structured routines and eating habits means higher incidence of ad hoc snacking
Consistent daily habits and established eating patterns with lower incidence of snacking among older cohorts
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The meaning of snacking and meals is changing
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Satiety Better for You Indulgent
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Any and every category is a potential source of snacks
“Our competition is not only other jerky manufacturers.
Any snack item is competing for ‘share of stomach’.”
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- Jon Sebastiani, founder of Krave
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0 10 20 30 40 50
Is organic
Has limited or no added salt
Does not contain trans fats orhydrogenated oils
Reduced or low calorie
Does not contain corn syrup
Has limited or no artificialingredients
Has limited or no added fat
Has limited or no added sugar
Contains added vitamins orfiber
Supported by a healthorganisation
Is all natural
% of respondents
Purchasing Decision: Which of the following factors or ingredients do you look for on food
labels?
Interest in health is impacting snacking expectations….moving toward wellness
• Low/Reduced snacks are no longer resonating well with consumers, who prefer taste and indulgence over artificials
• However, stealth reduction, or the reformulation of products by incorporating healthier ingredients which naturally have lower salt or fat content, appears to be faring well.
• 44%* of consumers agreed that they look for natural ingredients on food labels, as opposed to 20% for limited or no salt.
• Alternative production techniques, such as popping, baking and kettle cooking, are increasingly being explored by snack manufacturers to tap into growing consumer demand for such products.
*Source: Euromonitor International online consumer survey – Global Consumer Trends 2013
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2014 and 2015 have seen a surge in savorysnacks, particularly crisps, emphasising the
heritage and provenance of their ingredients.
Provenance to gain ground as Consumers go in search of novelty
Drivers of the Growth in Craft Snacks
Ethical considerations
and locally sourced Flame Grilled --------- Caramelized Onion ------ Chardonnay
Lobster Wine Vinegar
Lack of Customized
Snacks
Rise in Gourmet Cuisine
Against Big Company Mentality
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Stealth reduction will continue to rank high on the agenda
• We are seeing increasing demand for naturally healthy snacks with
• Alternative ingredients (vegetables, pulses, super grains, multi grains)
• Alternative processing techniques (popped, kettle cooked and baked)
• Boasting protein (nuts, pulses, meat)
• Focusing on heritage (ancient grains, traditional flavours) is on the rise.
• To take advantage of the stealth reduction trend the taste and texture, in particular crunchiness, properties of their products must be preserved.
Stealth Reduction
Ingredient reformulation
Alternative processing
Protein
Wellness
Reduced salt and sugar
Reduced fat
Reduced carbs
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Buttered PopcornReal dairy ingredients create a snack without compromise.
MegaTrends:
Features: Great butter flavor without the added fat
Benefits: Naturally good for you in the minds of consumers, popcorn is elevated with ‘from the source’ butter taste.
©2016 KERRY - CONFIDENTIAL AND PROPRIETARY
Pure & SimpleTASTE
Good For YouNUTRITION
Health & NutritionPremiumization
On-the-Go/ Convenience
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Black Bean Sticks
A better-for-you indulgent alternative to traditional snacks like chips, and contain protein and a good source of fiber with an on-trend ‘food truck’ taste.
MegaTrends:
Features: Good source of fiber
Benefits: Beans and vegetables for snacks is a hot trend that resonates with consumers as naturally ‘better-for-you’. Chimichurri is a global flavor that is hot in the food truck scene.
©2016 KERRY - CONFIDENTIAL AND PROPRIETARY
Pleasure & Indulgence
TASTE
Better For YouNUTRITION
Health & NutritionPremiumization
On-the-Go/ Convenience
Exploration/ Multi-sensorial
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Target the right consumers
Begin by targeting young adults - the heaviestconsumers of snacks
Be open to the many new product opportunities
Consumers are very willing to buy new and innovative
healthy snacks
Reinvent “old” snacks
Shake up old categories and markets - renovating them
tasty and healthy
Give consumers permission to indulge
One of the most effective strategies for snacking
Make your snack premium
Convenient, naturally healthy snacks can
command a degree of premium
Summary: Five insights will help you to succeed in snacking
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Recommendations
1. Being nimble and/or leveraging access to start-ups to maintain innovation will be key
2. Tailor snack products for specific purposes, new channels, different day parts
3. Focus on stealth reduction, proactive wellness, clean labels, authentic taste, and transparency of supply chain
4. Authentic taste will be a key driver -Leverage clear packaging to deliver a clean message
‘Together, we can
create world-class solutions that delight and nourishconsumers.’
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We invite you to the Kerry’s booth to sample:
Chipotle Mango Black Bean Sticks
Tropical Refresher with Wellmune®
BOOTH #455