1q Sloan Trends, Inc.

www.sloantrend.com 760-741-9611

Dr. A. Elizabeth Sloan Sloan Trends, Inc., Food Technology

NCIFT April 29, 2015

What’s Next? New Food & Beverage Ops, Issues & Cues for Growth

1

Industry: Get Back to Basics!

• Economy’s improving, cook at home 5.1X/week • Mellenials cook at home, Boomers go to restaurants • 145M bought gourmet food, Foodies • Health front burner, $30B sports nutrition crossing over • Low income group deliver $115B incremental income • More pets than kids!

Great Time to be in the Food Bizz

But, this Industry is Off-Track

• Chasing niche/fad markets, new free-from markets, gimmicky flavors, line extensions

• No system to properly measure free-from • Focus on Mellenials, ignoring the 130M adults > age 50 • Move away traditional health claims, fiber, oats/heart, Gen Y? • 1/3 growth in industry last year came from small companies • Big companies who are going to act like little ones… $27B Really?

Lime-Cucumber Gatorade

Transparency/Free-From

Mega Trends: Redirections

Health & Wellness

1 2

3 4

Culinary Cues

Taste #1, Price Stabilizes, Health Gains, Convenience Flat, Sustainability Falls

How Much Impact Do These Have on Food/Beverage Purchase Decisions % rating 4 to 5 on 5 – point scale, from No Impact to A Great Impact

Arrows indicate significant (.95) difference vs. 2013

International Food Information Council, Food & Health Survey, 2014

Best-Selling New Foods/Bev Products 2014 Best Selling New Foods/Bev 2014 Year One Sales

Simplicity ▪ Fewer Ingredients ▪ Restaurant /Chef Crossovers ▪ Bold Authentic Taste ▪ Top-Notch Power /Performance ▪ Home-Made/Hand-Crafted Quality ▪ Solutions: Quick - Easy - Portable

Avg. Year One $ Sales New Food/Bev $43M ‘12 → $35M ‘14

Communicate Benefits! Avg. # Benefits/Product

Rising Stars 2015

IRi New Product Pacesetters, Times & Trends 4/2015.

The NPD Group, “A Look into the Future of Eating ,” 5/11

*Food trends are for in-home or carried from home situations, excludes purchased and consumed away- from- home

Forecasted Overall Growth

By Generation, Highest Increase in

Servings over Next Decade

Salty/savory snacks 16.10% Gen Y +44%

Easy meals 16.00% Gen Y +42%

Center of plate proteins 15.10% Gen Y +22%

Sweet snacks/desserts 14.00% Gen Y +34%

Heat and eat breakfasts 13.40% Gen Z +4%

Breakfast & Snacks among Fastest Growing Food Categories, # Eatings → 20181

Mega-Trend Redirections 1

1.The Hartman Group, Modern Eating Report, 2013; 2. FMI, U.S. Grocery Shopper Trends, 2014

Savoring – a more sophisticated culinary food experience – one defined by

freshness, distinctive flavors, foodie narratives, storytelling, etc.1

Top 10 Eating Occasions ‘13

New Upscale Eating Occasion 44% Adult Occasions, 48% Hispanics, 29% Kids

1. Rice 2. Chinese Food 3. Salads 4. Eggs 5. Beans

6. Hamburger 7. Potatoes 8. Vegetables 9. Sweets 10.Meat Cuts

Top 10 Savoring Demand: Upgrade

> 1/3 Snacking Alone Savoring1

• Instrumental afternoon snack 10.5% • Instrumental lunch 10.1% • Instrumental dinner 9.6% • Instrumental breakfast 9.4 • Savoring dinner 9.3% • Savoring after dinner snack 7.1% • Instrumental after dinner snack 6.3% • Instrumental morning snack 5.9% • Savoring lunch 5.8% • Savoring breakfast 5.3

U.S. Foodies1

145M Buy Gourmet Foods, 96M Everyday Use1

1. Specialty Food Assn., Specialty Food Consumer, 2014; 2. State-of-the-Specialty Food Industry, 2014; 3. FMI U.S. Grocery Shopper Trends, 2014.

Specialty Food Sales $70B + 18.8 2 Yrs2

>40% bought

• Coffee • Salty snacks • Meat/poultry/seafood • Frozen desserts • Beverages • Breads • Baked goods/treats • Snacks, Other • Tea

>50% bought: • Chocolate • Oils • cheese

Specialty Food Purchases 20142

2013

Discovery New Food Attributes3

Users 20141 20141

Fastest Growth: Nut Butters, Eggs, Frozen Desserts, Refrigerated Condiments2

1

20141

Best-Selling New Foods/Bev 20133

Kids’ Food & Bev to $41B 20184

Half Adult Eating Occasions: Eat Alone Solo: More Likely Eat Fresh/More Upscale

•39% eating occasions family HH alone2

• Only 28% family eating occasions include kids, 72% adults only2 • Empty Nesters #1 household unit, Singles #2, Married with Kids #35

Single Serve, Portion-able

1

1. NPD Group, Press Release 8/6/14 Consumers are Alone Over Half of Eating Occasions; 2. Hartman Group, Modern Eating Report,/Compass Database, 2013/14; 3. IRi, New Product Pacesetters, 3/2014; 4. Pkg. Facts, Kids’ Food & Bev Market, 2014; 5. US Census, 2010.

Demise of the Family Meal4

1,. Hartman Group, Modern Eating Report,/Compass Database, 2013/14; 2. Food Mktg. Institute, US Grocery Shopper Trends, 2014; 3. Gallup Study of Cooking Knowledge and Skills, 2014.

Meals/ Snacks Eaten Same Day as Purchase by Age1

Older Younger

Immediate Consumption & Male Participate

15% of All Food/Bev

Eaten Within 1 Hour of Purchase

40% of Gen Y

Purchases are IC; 2/3rd Snacks;

10% Breakfast Primary Food Shoppers: Gender2 46% Men Help

With Food Prep 20143

Responsibility Food Prep2

Gen Y Goes Home, 50+ Goes Out Gen Y No Routine, Restaurant-style, No Kits

1. NPD Group/CREST, 2014; 2. Hartman Group, Reimagining Convenience Foods, 2012; 3. FMI, U.S. Grocery Shopper Trends, 2014

Which have you used in past 12 months?2

Mellenials Want this Kind of Help2 2015 Meals Prepared at Home3

2

Fresh Eatings +20% Past 10 Yrs, +6% → 20181

78% Strong Effort Eat Fresh vs Processed2

1. NPD Group, National Eating Trends, 2014; 2. Multi-Sponsor Surveys’ 2014 Gallup Study of Am. Snacking Behavior; 3. Technomic, Inc. Healthy Eating Consumer Trend Rpt, 2014; 4. Food Marketing Inst., U.S. Grocery Shopper Trends, 2014; 5. IRI, 1/2015 Promise peaking through for CPGs; 6. ATKearny/Technomic, Fresh Prepared Foods, 2014.

+20% 2003-13

Proj. Annual Fresh Food Eatings1 • 87% fresh = healthier, 80% tastier3 • 44% buy more fresh ingredients, +10% 3 Yrs4 • 47% cook more from scratch, use fewer

convenience foods to save $5 • 3.1 dinners/week from fresh/raw ingredients2

• Fresh/ready-to-eat stores, #1 growth → 20184

By 2018, Fresh

Growth at Breakfast +9%,

Lunch +7%, Dinner +5%1

Fresh Prepared Foods to Outpace

Retail Grocery &

Foodservice → 20176

Fresh 29% U.S. Grocery $, +5% 2015 1,2 Fresh Ethnic/Exotic, Convenient, Healthy Soar1

1. IRi, Y/E 4/2015: 2. Nielsen Perishables Group, 2014; 3. IDDBA, 2015 What’s in Store, (Nielsen); 4. Progressive Grocer, Deli Review, 6/2014; 5. IRi, State-of-the-Snack Food Industry, SnaxPo, 2014; 6. Nielsen Global Survey, Snack Occasions & Trend Spotting, 2015

CAGR 2007- 12 CAGR 2012-17e

2 Fresh Convenience Fastest Growing Food Trend1 Prepared Food Purchase Mass Channels ‘143

¼ Deli Operators More Emphasis Breakfast; 1/3 on Fresh Snacks4

Fresh Produce Snacks Explode!5

Very Important for Snacks 20156

51% flavorful 48% fresh 29% indulgent 25% salty/savory 24% crispy 23% sweet

Fresh Protein Snacks

$19B 20143

#2 – Y/E 10/2014

Fresh Unstoppable Trend, Mainstream

1 in 5 Best-selling New Foods/Bev 2013 : Fresher Flavor Claim3

Gen Y Lead Growth Fresh Eatings 2018 +7.5%, Gen Z +11%4

Center Store Fresh

Ingredients Technology: HPP Juice, Coffee, Oils

Hispanics Spend $452 More/Yr on Food; 41% is Fresh2

Link Health Benefit Fresh Meat/Poultry1

Fresh Nutrient Content Claims

1. Food Mktg. Inst., Power of Meat, 2015; 2. Nielsen, Hispanics 360, 2015; 3. IRi, New Product Pacesetters, 2014; 4. NPD, National Eating Trends, 2014.

Fresh 100 Calories or Less

4 in 10 Best-Selling New Foods/Bev Bite-Size/Hand-held; Take-from-Home Soars!

1. IRi New Product Pacesetters, 4/2014; 2. Food Marketing Institute, US Grocery Shopper Trends,; 3. Multi-Sponsor Surveys, 2012 Snacking Report.; 4 .Technomic, Snacking Occasion Consumer Trend Rpt., 2014.

% Best-Selling New Foods/Bev 20131 23% Consumers Brought

Lunch from Home; 8% Breakfast 20142

Where Snack Away-from-Home4

• 71% snacks to movies/sports3 • 44% snacks to work • 20% AM coffee /drinks

40% 18-24 & 33% 25-34:

Vending Machine

Good Snack Option4

Snacks = 50% Eating Occasions1; Eat Avg. 2.6 Snacks/Day 2015 vs. 1.9 20102

1. Hartman Group, Modern Eating Report,/Compass Database, 2013/14; 2. IRi, State of Snacking, S. L. Wyatt, 2015; 3. Nielsen Global Survey, Snack Occasions & Trend Spotting, 2015; 4. Specialty Foods Assn, 2014 Specialty Food Consumer; 5. Technomic, Snacking Occasion Consumer Trend Report, 2014.

• 28% 4-5 mini-meals /day2

• 21% eat on the run2

• 14% eat snacks as breakfast, 11% lunch, 10% dinner; sometimes 23%, 28%, 23%3

• 1/3 buy gourmet snacks for every day use4

• 1/2 health important, organic snacks +11.6%2

• Savory snack sales growth > sweet2

41% 3+/Day

2

Want Different Foods For Snacks than Eat for Meals5

2

1. IRi, State of Snacking, Sally Lyons Wyatt, 2015; 2. Health Focus, 2013 Consumer Trends Report; 3. IRi State-of-the-Snack Food Industry, 2014.

Greater Focus Daypart, Motivations & Specific Foods Linked to Snack Benefits

Snacking Increases 2010 vs. 20151

Meat Snacks, Crackers, Snack/Granola Bars Most Linked to Satisfy Hunger3

• 18% early AM, +11% • 31%, morning, +11% • 69% afternoon, +18% • 55% evening, +11% • 39% Late PM, +15%

Breakfast Morning Snack Afternoon Evening

Snack

Late Night Snack

Nutrition 53% 24% 14% 14% 13%

Convenience 33% 38% 34% 29% 32%

Energy level 38% 35% 33% 8% 8%

Hunger 31% 33% 28% 22% 29%

Reward/ Indulgence 3% 15% 34% 60% 47%

Ref. #2

Ref. #3

Indulgent Snacks + 3.1% $ Sales 2015;

Healthier + 2.4%; Macro-Snacks + 2.8%1 Top Sellers Healthy Snacks, Satiety, Healthy Convenient1

1. IRi, State of Snacking, Sally Lyons Wyatt, 2015 ; 2. IRi, State-of-the-Snack Food Industry, 2014.

• 15.2% choc. covered salted snacks2 • 11.5% frozen snacks • 4.5% dried meat snacks

• 3.4% frozen hand-held entrees • 3.2% RTE hand-held entrees • 3.3 frozen appetizers/snack rolls

Snack Would Choose > All Others3

50% Snacks Drink + Snack, Rise of Functional Snacks1

Fastest Growth Snack Claims 20142 • Gluten-free • Hormone • Oil Type • Other Omega • Natural • Protein

Buy as a Snacks at Least Occassionally1

1. Technomic, The Snacking Occasion Consumer Trend Report, 2014; 2. IRi, State of Snacking, S. L. Wyatt, 2015; 3. Nielsen Global Survey, Snack Occasions & Trend Spotting, 2015.

50% Want Benefits > Basic Nutrition 1 in 5 Often Buy Boost Energy/Mood

17% to Manage Weight1

• Soy • Omega/ALA • Vegan/Vegetarian • Whole Grain • Organic

Transparency Free-from 2

29% Bought More Local, 29% Organic, 25% Natural & 23% Non-GMO vs YAGO1

1. Hartman Group, Organic & Natural, 2014; 2. FMI, U.S. Grocery Shopper Trends, 2014; 3. 2014 Gallup Study of Nutrition Knowledge & Consumption; 4. Hartman Group, Reinventing H & W, 2013.

Claims Food Shoppers Look for 20142

3 in 10 Look for Minimally Processed Foods 2013 vs. 21% in 2010

Seek out products:4 • ¼ only Ingredients they recognize • ¼ shortest Ingredient list

Clean Label Mentions # of Clean Label Descriptors Purchased Past 3 Months

Total

% Heavy %

7+ Per Month All natural ingredients 30 79

Recognizable ingredients 30 78

No artificial preservatives 25 77

No artificial ingredients 23 74

No added sugar 33 72

No high fructose corn syrup 25 69

Low sodium 36 66

No MSG 21 62

No artificial colors 19 62

Organic 22 61

Short list of ingredients 21 61

Grown without use of pesticides 14 54

Has natural/low, no calorie sweeteners 14 39

Non-GMO 9 34

Gluten-free 11 30

The 2013 Gallup Study of Clean Food & Beverage Labels; Multi-sponsor Surveys, Inc.; Hartman, Reimagining Health & Nutrition, 2013.

1/4 Adults Strong Clean Label Advocates; 70% Bought Food/Bev Perceived “Clean” 2013

Clean Most Desired Descriptor for Shelf Stable Foods/Bev

Organic Sales $29.5B 2013, +12%; All Sectors Up Double Digits, Ex. Bev & Dairy

• 73% use occasionally, 9% daily

• Millennials 86%, Gen X 72%, Boomers 63%

• Parents, Millennials say buying more

1. Hartman Group’s Organic & Natural 2014 Report ; 2. Nutrition Business Journal, 8/2014.

Next Battle for Ownership

U.S. Consumer Interest Natural Claims Still Outpaces Organic; Natural Claims Fall

All 18-24 25-34 35-44 45-54 55-64 65+ All natural 38 45 47 38 37 33 31 Organic 25 37 32 27 21 19 19

Which of the following food claims do you actively look for when you are buying food products?

Mintel Food Packaging Trends - US - July 2013; The 2013 Gallup Study of Clean Food & Beverage Labels; Multi-sponsor Surveys, Inc

Most Sought Food/Drink Claims All Any nutrition claim 80 Good/excellent source of nutrients 62 Low sugar/carbs, salt/sodium, etc.. 50 Full serving of fruit or vegetables 48 All natural 38 No sugar, high fructose corn syrup 38 Local (from a local company/farm) 35 A ‘seal of approval trusted organizations (Am. Heart Assn.) 30

Organic 25 Eco-friendly 24 Functional health claims, e.g., energy, etc. 22

28% Shoppers Buying More Natural in 2014 Citizen Class-Action Lawsuits;

Natural Lacks Clear Definition

40% Avoiding GMOs, 22% Very Worried1

29% Buy Organic Avoid

GMOs3

Consumers say:1 • 52% understand what GMOs are

• 30% know what crops likely to be GM

• 28% know if a food has GMO ingredients

3/4s Aware Would

Prefer GMO Labeling3

1. Hartman Group, Organic & Natural, 2014; 2. FMI, U.S. Grocery Shopper Trends, 2014; 3. Pkg. Facts, Non-GMO Foods – US, 9/2013.

2

1

#1 GMO: Moms, Age 25-39,with Kids < Age 11; $50-$99K, Urban

Natural & Organic Meats

1. Datamonitor, Tom Verhile, Supply Side West, 2014; 2. Food Mktg. Institute, Power of Meat, 2015; 3. NRA, What’s Hot? Chef’s Survey, 10/2014; 4. Food Mktg. Institute, U.S. Grocery Shopper Trends, 2015.

#4 Food “Made in US” Extremely Imp. 91%2,4

Interest very Reasons Buy Org/Natural Meat2

IFIC, 2014 Food & Nutrition Survey; NRA What’s Hot 2014 ACF Chefs

ACF Hot Culinary Ingredients 2014/15

Sucralose Avoidance Up 5 Years 1 in 5 Avoid Natural (Processed) Sweeteners

For the 1st Time in 2014, Real Natural Sweeteners Became a “Hot” Culinary Trend

Real Natural Sweeteners

Exclusion Diets

Experimenting Alternative Eating Styles

31% Tried Some Specialized Diet

Past Yr1

1. Food Marketing Institute, U.S. Grocery Shopper Trends, 2014; 2. Euromonitor, Health & Wellness Performance Overview 3/2014; 3. Innova Market Insights, Taste the Trend, 2014.

Approaches to Eating Tried in the Past Year 1

27% US Households: Food Restrictions, Avoidances, Allergies Important Role in What They Eat; 10% Strongly Agree

Global Food/Bev

Dairy Alternative Drinks, Alternative Meatless Protein Meals Catching On… 76% Households Serve Meat Alternatives* Occasionally for Dinner1

(Protein Sources Other than Meat, Poultry, Seafood)

Beans, lentils, legumes +11% 2014 → 2015

Quinoa & other whole grains +10%

• 44% 1 - 3 X/week 7% 4 or More

• Serve Meat/poultry 3.7X/Week

17% Some Effort Follow Partially Vegetarian Diet; 2% Avoid All Animal Products3

Meatless/Vegetarian Ranks #8 Hot Culinary Trends 2015

Vegetarian #1 for Appetizers Vegan 11th Center-of-the-Plate2

1. Food Marketing Institute, Power of Meat, 2015; 2. What’s Hot? Chef’s Survey, 10/2014; 3. Multi-sponsor Survey’s 2014 Gallup Study of Nutrient Knowledge & Consumption; 4. Beverage Industry Magazine, 1/2015 New Product Development Survey.

#4

The Big Question? How will we measure the new elimination markets?

The current system doesn’t work! Scanning for the presence of a claim is not an indication of intent to purchase.

Are we going to continue to be mislead that these are explosive

growth - consumer driven markets?

44% believe GF healthier, 2014 vs 60% in 20121 11% looked for GF on label 20142 51% who bought GF didn’t know it was GF3

1. Technomic, Healthy Eating Consumer Trend Report, 2014; 2. Food Mktg. Institute, US Grocery Shopper Trends, 2014; 3. Hartman Group, Culture of Wellness, 2013.

Nielsen $23B 2014 Mintel $15.6B by 2016

Euromonitor Global $2.1B 2013 Con Agra $1.2B 2014

TrendSense™ Predictive Model: Gluten

0

500

1000

1500

2000

2500

3000

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Gluten & Allergy Gluten & DigestionGluten & Celiac Gluten & KidsGluten & Health Gluten & Weight

Medical Threshold

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200

400

600

800

1000

1200

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14

Gluten & Allergy Gluten & DigestionGluten & Celiac Gluten & KidsGluten & Health Gluten & Weight

Commercialization – Level 1

Popularization

Copyright Sloan Trends, Inc. 2013 NOT TO BE COPIED, PUBLISHED, DIVULGED WITHOUT PRIOR WRITTEN PERMISSION FROM SLOAN TRENDS

Commercialization – Level 2 0

2000

4000

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00 01 02 03 04 05 06 07 08 09 10 11 12 13 14Gluten

Medical/Nutrition

0

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2000

3000

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14Gluten

Consumer Commercialization – Level 2

Commercialization – Level 1

3

Dramatic Shift U.S. Flavor Profile 2 Years

Technomic, Consumer Flavor Trend Reports, 2013, 2009

Consumers Favorite Flavors 2013 Consumers Favorite Flavors 2009

4% 13%

23% 36% 37%

44% 46% 47%

51% 74%

BitterSourSalty

FruityHerbalTangy

SmokySweetSpciy

Grilled

• Preference Hot & Spicy Dramatically up 18-34 • Bold Up 2011 vs. 2013 • Interest Coupled Flavors Up • Interest Ethnic Up 18-34 • Interest in New & Unique Flavors Down!

1/3 More Interested Global Flavors vs YAGO1

Top Pasta Use4

1. Italy 2. Venezuela 3. Tunisia 4. Greece 5. Switzerland 6. Sweden 7. US

Hot Ethnic Cuisines 20152

Pierogi

1. Food Marketing Institute, U.S. Grocery Shopper Trends, 2. National Restaurant Assn., What’s Hot, 2014; 3. Datassential , QSR Magazine, 2015; 4. International Pasta Assn., 2012.

Hot Prep ‘152

Deeper Dive Asian: Cuisines Eaten 2014: Shoppers

Hot Flavors ‘153

1. Harissa 2. Aji 3. Gochujang 4. Yuzu 5. Togarashi 6. Peri Peri 7. Nut butters 8. Savory jam

24% Sushi

1. Pickling 2. Fermenting 3. Fire-roasting 4. Smoking 5. Sous Vide 6. Cast-iron

No Longer Just the Cuisine, About International Forms of Favorite Foods

Indian Samosa

Flatbreads

Gyros

Pierogi

Skewers

Risotto

Mexican Torta

Hummus

Top Growing Breads Restaurants 2013

QSR Magazine, One Source Special Issue, Jan, 2014

Flatbread Brioche Ciabatta

Grain Bread Multi Grain Focaccia

Rye Baguette

Panini Whole Grain

Breakfast Bread Sandwich Carrier Appetizer Bread Pretzel Brioche

English Muffin Texas Toast

Wrap Tortilla

Multi Grain Wheat Bun

Whole Wheat Onion Roll

Burger Carrier Garlic Bread Bread Sticks

Cheese Bread Bread Basket

Order More >

Salsa Seafood Dip

Spinach/Art. Dip Cheese Dip

Tout Tasty Veggie Flavors, Full-Serving

72% N. Am: “Serving Veg” Very/Extremely Important, 93% “Try Get More Veggies”3,4

1. Datassential , QSR, 1/2014; 2. Technomic, 2014 Consumer Healthy Eating Report, 2014; 3. HealthFocus, 2013; 4. Gallup July 2014 Nutrition Pulse.

Carrot & Celery in Top 10 Fastest Growing Juices in Restaurants1

1

2

Ancient, Ethnic, Whole Grains/Flours GF Legacy Likely Unique Grains > Digestion

• Ancient grains 44% • Couscous 30% • Barley 30% • Quinoa 25% • Millet/spelt 23% • Bulgur wheat 22% • Buckwheat 21%

Eat Specialty Grain Sides1 Hot Side Dish Trends ‘152

1. Mintel, Dry Pasta, Noodles, Ancient Grains, 2013; 2. NRA, What’s Hot? Chef Survey, 10/2014; 3. IDDBA, What’s in Store?, 2015.

Hot Ingredients ‘152

Pasta Reverse Priority GF 2nd

Unique Grains 1st

Deli: +4.7% Grain/Pasta

Salad 12.7% Soup3

Hot Culinary Trend Gainers, Waners

+16% Nose-to-tail, root to stalk +11% Pickling +11% Ramen +10% Dark greens +9% S.E. Asian cuisine +8% Pickled vegetables +7% Ancient grains +7% Ethnic Flour

+7% Fermenting +6% Ethnic inspired children’s dishes +6% Gourmet children’s dishes +6% Foraging +6% Nordic Cuisine +6% Non-traditional eggs +5% Non-wheat noodles/pasta +5 Brussel sprouts

Fastest Growing Culinary Trends 2014 vs 2015

- 11% Greek yogurt - 8% Sweet potato fries - 7% Grass-fed beef - 7% Organic coffee - 7% Oatmeal - 6% House-made ice cream - 6% Molecular gastronomy - 5% Salted caramel

Big Losers 2014-15 New Trends Starting 2014

• Grazing/small plate sharing • Hybrid desserts • Uncommon herbs • Natural sweeteners • Kale salads

NRA, What’s Hot? Chef’s Survey, 1/2014.

Beverage & Main Dish Mega Trends

Grapefruit Aranciata

Lime Black Cherry

Lemon Limonata

Grape Cream Soda Strawberry

Ginger

Fastest Growing Flavors Restaurants

Coconut Mango

Cinnamon Ginger

Blackberry Tangerine

Apricot Acai

Projected Top Selling Bev Flavors 20152

Fastest Growing Cheese Restaurants4

Taleggio, Burrata, Pecorino Romano, Hispanic Cotija, Queso Fresco

New Cuts Meat: Culotte Steak,

New York Pork Chops5

Shrimp Salmon

Tuna Tilapia Pollack

Pangasius Cod

Catfish Crab

Clams

Hot Sandwich Mega Trends 20151

Most Eaten Fish3

1. Datassential, QSR Magazine, 1/2015; 2. What’s Hot? Chef’s Survey, 1/2014; 3. Beverage Industry Magazine, 1/2015 New Product Development Survey; 3. National Fisheries Institute, 2014; 4. IDDBA, What’s in Store? 2015; 5. NRA, What’s Hot? Chef’s Survey, 10/2014.

Fruits, Nuts, Seeds, Take Advantage Added Nutritional Contributions, Superfruits Slip

% U.S. Want More1

1. Nielsen, Nielsen Global Survey, Snack Occasions & Trend Spotting, 2015; 2. Beverage Industry, New Product Development Survey 1/2015; 3. NRA, What’s Hot? Chef Survey, 2014.

Top Flavors Bev3

Beverage2

4 3

Breakfast Going More Gourmet; Big Breakfast Op: Ethnic Foods

1. NRA, What’s Hot Survey, 2014; 2. Bernstein Analysis Wall St, J. Y/E July, 2014; 3. Datassential, QSR,2014; 4. IFIC, Breakfast Survey, 2010.

Seafood, Veggies Move into the AM Breakfast, Crab Sausages, Cakes3

#1 ACF Hot Culinary Breakfast Trend 2014 Ethnic; e.g., Asian Syrups, Chorizo1

Non Breakfast Sandwiches, Cubano

Panini, Parfait

Breakfast Pizza Carbs Protein

Motivators Eat A.M. - Energy, Mental, Weight, Feel Full4

3

1. Food Mktg. Inst., Power of Meat, 2015; 2. Mintel Cooking Enthusiast , 2013.

Cooking Methods Used

at Home

All Boomer

All

65+ Gen Y Gen X

Simpler, Faster, Healthier Cooking

Fish/Seafood +14%

Fried foods -19

Flavored Basics, Ethnic Kits/Sauces

→

1. Food Mktg. Institute, Power of Meat, 2014; 2. Mintel, Ethnic Foods US, 2014; 3. FMI, Power of Meat, 2015; 4. 2014 Gallup Study of Cooking Knowledge & Skills; 5. Mintel, Cooking Sauces and Marinades – US – April, 2011.

What flavors/types sauce, marinade seasoning mix do you prefer?

Total %

Spicy/hot flavors 52 Authentic regional U.S., e.g. Kansas City barbecue, Creole. 49

Sweet flavors 46 International Ethnic Flavored e.g. Thai curry, Indian Masala 40

Any made regionally, state/local Brand or restaurant 26

Unusual flavor/new ingredient pairing 25

Salty flavors 25 Sour flavors 23 New Ingredient Pairing 22 Premium, gourmet, artisanal 22 Product endorsed by celebrity chef 11

28% Prepare Mexican Packaged Meal Kits,

25% Asian Kits2

Heat-&-Eat, Ready-to-Eat Meat/Poultry3

• Garlic • Onion • Red/green peppers • Avocado • Jalapeno peppers • Nuts • Balsamic Vinegar • Chives • Feta cheese • Ginger • Scallions • Wine/cooking sherry • Seeds

Top Flavors in- Home Prep 20144

5

1

4 Health & Wellness

53% Adults – 55% U.S. Households Watching What They Eat or Dieting

1. Packaged Facts, Weight Management, 2014; 2. IFIC, Food & Health Survey, 2014.

Reasons Consumers Watching the Diets 20141

• Low sodium -18% • Low sugar -8% • No trans fat -18%

% Look for “Low In” Claims Falls 2011-142

• Low calorie -9% • Low fat -21% • Low cholesterol -29% • Low carb -19%

49 1. IRi, New Product Pacesetters, 4/2014; 2. IFIC, Food & Health Survey, 2014; 3. Euromonitor, 2014; 4. Hartman Group, Reimagining Health & Wellness, 2013.

42% Concerned Don’t Absorb All → Nutrients Suppl./Fortified Foods Drinks

Preference Fortified Food vs. Naturally-Sourced Nutrition2

Global Retail Growth3

When Whole Food Nutrition Couples with Hot Culinary Trends - Results Explosive!

“Prefer to Get from Foods Naturally” Contain This:4

• Whole grains 81% • Fiber 73% • Protein 72% • Antioxidants 62% • Calcium 47% • Omega-3s 44%

Positive: BFY Claims 20131

Nutrients Tops Wellness Goal in AM; Fortify? Simply Healthy May Not Be Enough

FMI, U.S. Grocery Shopper Trends, 2014.

Wellness Relevant Dietary Goals Throughout the Day

Specialty Nutritionals #2 Only to Vitamins

1. 2013 Gallup Study of Nutrient Knowledge & Consumption 12/2013; 2. Beverage Industry, New Product Development Survey, 1/2015.

76% Making Strong Effort Consume More Vitamins/Minerals 20131

39% 38% 37%

30% 28%

22% 21% 20% 18% 18%

13% 10%

8% 8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45% Vitamin DVitamin CCalciumOmega 3B VitaminsVitamin AAntioxidantVitamin EIronPotassiumMagnesiumZincB-caroteneFolic Acid

Hot Nutritionals ‘152+

• Vit D,C Potassium • Magnesium • Choline • Fiber • Prebiotics • Iron • Tumeric

Protein Gen II: Amount, Type, Frequency Move to Plant, 50% Try Get More 2014

• 87% builds muscle • 76% aid exercise recovery • 72% helps feel full • 66% aids weight loss • 64% energy throughout the day • 62% maintain energy • 38% soy protein aids weight loss • 33% boosts metabolism

Reason Use Protein Bev4 All

Gives me energy

50

Physical Performance 49

Curb hunger/feel full 48

Exercise recovery 46

Weight Loss Aid 39 Wt. Loss Meal Replacement $3.3B to $4.3B ‘17 #1 or #2 Fastest Growing CPG Foods 5 Years5

1, IFIC, Food & Health Survey, 2014; 2. Nielsen, Global Snacking Study, 2015; 3. HealthFocus, 2013; 4 Mintel, Performance Foods/Drinks, 2014; 5. Nutrition Business Journal, 2014.

Consumer Links Protein 2014

Bone health/strength 63% Cancer 62%

Cardiovascular/heart disease 61%

Eye health 60% Tiredness, lack of energy 56%

Stress 54%

Retaining mental sharpness as I age 53%

Muscle health/muscle tone 53%

Top U.S. Health Concerns Very Extremely Concerned

Body Toning - Sarcopenia – Immunity Satiety – Long-Lasting Energy, etc.

U.S. Strong Effort Get More Protein2

1 3

Low Carb

• White bread 90% • Sugar 87% • White rice 82% • Pasta (not whole grain)

78% • Potatoes 64% • Cold cereals 53% • Whole grain pasta 21% • Whole grain bread 17%

Which of the following carbohydrate sources are cut when trying to maintain a low carb diet? (Select all that apply)

• Brown rice 14% • Barley 14% • Other grains; spelt

amaranth 14% • Quinoa 9% • Beans 5% • Legumes 5%% • Nuts 4% • Vegetables 2%

HealthFocus International, Low Carb/High Protein Survey, 2014

$30.8B Sports Nutrition Mainstreams1; Serious Reminder of Potential Fx Foods2

1. Nutrition Business J. Sports Nutrition Report, 2014; 2. Am. Heart Assn. Statistics, 2015; 3. National Sporting Goods Assn., 2014; 4. NBJ, 12/2013.

2015 Millions (20+) % Pop CVD 87 37% HBP 80 34% Pre-hyper 67 30% Cholest > 200 100 46% Cholest > 240 31 LDL>130 mg/dL 74 33% HDL<40 45 16% Triglycerides 27 Overweight 159 66% Obese 82 34% Diabetes (Diag) 21 11% Pre-diabetes 81 26% Met Syndrome 77 34%

New Mainstream Sports Sector 3 Global Functional Food Sales $118B in 20134

Euromonitor, Health and Wellness Performance Overview 2013, 3/2014

Global Functional Food $118B +8% 2013

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Flavanoid Polyphenols AnthocyaninsEGCG Resveratrol

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Flavanoid Polyphenols AnthocyaninsEGCG Resveratrol

MEDICAL THRESHOLD POPULARIZATION

COMMERCIALIZATION – LEVEL 1

The 2013 Gallup Study of Nutrition Knowledge and Consumption Copyright Sloan Trends, Inc. 2014 NOT TO BE COPIED, PUBLISHED, DIVULGED WITHOUT PRIOR WRITTEN PERMISSION FROM SLOAN TRENDS

Mass Market Phyto Leaders: Top Tier

Awareness of Amino Acids 50%

Consumer Medical/Nutrition

TrendSense™

COMMERCIALIZATION – LEVEL 2

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Year Lutein LycopenePhytosterols Antioxidants & SkinPrebiotics

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Medical/Nutrition

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Year Lutein LycopenePhytosterols Antioxidants & SkinPrebiotics

Consumer

Popularization

TrendSense™ Predictive Model

Commercialization – Level 1

Awareness - Prebiotics 30% ▪ Lycopene 33% ▪ Lutein 32% ▪ Phytosterols 31% Sloan Trends Usually Uses 33% as the Consumer Tipping Points for Trends

Copyright Sloan Trends, Inc. 2014 NOT TO BE COPIED, PUBLISHED, DIVULGED WITHOUT PRIOR WRITTEN PERMISSION FROM SLOAN TRENDS

2013 Gallup Study of nutrition Knowledge and Consumption

Phytosterols, Prebiotics

New Heart Markets, Stroke, Circulation, Plaque Build up

Sloan Trends, Inc. 2012; Am. Heart Assn, Heart & Stroke Statistics, 2013

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High Blood Pressure StrokeCholesterol Heart AttackImprove/Increase Circulation Atherosclerosis

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High Blood Pressure StrokeCholesterol Heart AttackImprove/Increase Circulation Atherosclerosis

Commercialization – Level 1 Commercialization – Level 2 Commercialization – Level 3

Commercialization – Mega Phase

Consumer Medical/Nutrition

TrendSense™

32% Women & 53% Men Undesirable Blood Plaque Levels Boomers: Please indicate which health concerns listed are of personal preventative or curative concern to you

Answer Options Very Important Important Somewhat Important

Atherosclerosis 13.9% 21.9% 28.3%

Incidence: Stroke Increasing

Dramatically Those < Age 65

Eye Health #4 Health Concern, #8 Kids; It’s About Gen. Eye Health - Not ARMD Reason Use Eye Supplements Top 7 Multivitamin Brands

224 301 325 343 368 390

419 433

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In M

illio

ns

2006 2007 2008 2009 2010 2011 21-2 2013

Brand $ Sales Mil

% Chng.

1. Centrum Silver $200.7mil. +7.6%

2. Bausch/Lomb PreserVision $85.0 mil. +4.8

3. Flintstones $73.3 mil. -12.9

4. Centrum $72.4 -10.7

5. Airborne $69.9 +7.6

6. One-A-Day Vita Craves $67.3 +25.3%

7. Bausch + Lomb Ocuvite $55.3 +54.7%

Nutrition Business Journal Data Sheets, 2013; Capsulgel Consumer Health Survey, 2013; IRI, total sales drug stores, supermarkets, discount stores, military commissaries and selected clubs and dollar stores for year ended 4/21/14

78%

47% 22%

Good EyeHealth

Prevent aProblem

TreatCondition

Ext/Very Concerned Eye Health – Age

18 - 29 57% 39 - 39 42% 40 - 49 56% 50+ 63%

$433M, +8% 2013

Protein Can Help Deliver on

Long-Lasting Energy

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Blood sugar & energy Long Lasting/Sustained Energy

Medical Threshold

Medical/Nutrition

Commercialization – Level 1

Commercialization – Level 2

Copyright Sloan Trends, Inc. 2012 NOT TO BE COPIED, PUBLISHED, DIVULGED WITHOUT PRIOR WRITTEN PERMISSION FROM SLOAN TRENDS 60

48%

43%

Increased Stamina or PhysicalEndurace

Improve My Mental Performance

← Stamina = Sustainable

All-Day Energy

TrendSense™ Blood Sugar/Energy

The Japanese eat very little fat and suffer fewer heart attacks than the British or

Americans.

The French eat a lot of fat and also suffer fewer

heart attacks than the British or Americans.

The Japanese drink very little red wine and

suffer fewer heart attacks than the British or

Americans.

Too much sake

The Italians drink excessive amounts of

red wine and also suffer fewer heart attacks than the British or Americans.

Way too much red wine!

The Germans drink a lot of beers and eat lots of

sausages and fats and suffer fewer heart attacks

than the British or Americans.

CONCLUSION:

Eat and drink what you like.

Speaking English

is apparently what kills you.

Sloan Trends 20 Years of Identifying Emerging

Opportunities Healthy

Food & Beverage Dr. A. Elizabeth Sloan

Trends, Markets, Predictions

Dr. Catherine Adams Hutt Science, Safety,

Regulatory

A Holistic Approach

Dramatic Shift Age 45+ More Visits Every Restaurant Sector, Gen Y/X Fall 7 Yrs.

NPD Group, Boomers and Beyond Report, 2013; US Census

Number Visits 45+ = Visits Age 18-44 #1

Per Capita Spending Restaurants: Age 55-64 #1

45+ Increased Share Restaurant Visits Up 6%,

Mellenials/Gen X Down 6% vs. 2009

50+ Now Drive Restaurant Visits, Gen Y/X Fall

Gen X/Y Cutbacks Drive Loss 650M Rest. Dinner Visits Since ‘06

Total Annual Supper Visits to Restaurants

Dinner Restaurant Cutbacks vs. 2006

NPD Group/CREST, Look Into the Future of Foodservice, June/2013; Technomic, 2013, The Takeout & Off-Premise Dining Consumer Trend Report

Dinners Prepared

at Home Per Week, 2014

→

Big Op: Gen Y Making More Meals at Home, Cutting Back Restaurants Esp. Dinner

Consider Healthy Prepared Meals Retail

Gen Y Goes Home, 50+ Goes Out

Hartman Group, Reimagining Convenience Foods, 2012; U.S. Grocery Shopper Trends, 2014

Which have you used in past 12 months?

Mellenials Want this Kind of Help: 2015 Meals Prepared at Home