BLURRED BOUNDARIES:A STUDY OF SNACKING BEHAVIORS & MOTIVATIONS

TMBI Inner Circle Community — November 2017

Source – Nielsen

SNACKS ARE BIG BUSINESS

2.6%Total Snacking

Dollar Change v. Last Year

SNACK FOOD SALES INCREASING

5.1%Ice Cream/Sherbet Salty Snacks

Granola Bars Cookies

+ 3.9%+

3.4%+ 2.6%+

+

Source – IRI Market Advantage – 52 Weeks ending 12/26/17 vs. YAGO

$0

$50,000,000

$100,000,000

$150,000,000

$200,000,000

$250,000,000

$300,000,000

$350,000,000

$400,000,000

$450,000,000

$500,000,000

TOTAL PRINT SPEND TOTAL DIGITAL SPEND

2017 ADVERTISING SPEND ON SNACKS

ADVERTISING SPENDING ON SNACKS

TOP PRINT SPENDERS•  Wonderful Pistachios•  M&M’s•  SunChips•  Blue Diamond Almonds•  Lay’s Potato Chips

TOP DIGITAL SPENDERS•  Blue Diamond Almonds•  Snickers Candy•  Cheez-It•  Ghirardelli•  M&M’s

0.5%+

21.6%+

“SNACKING IS A WAY OF LIFE FOR ME”

“I love snacking! I find that when I

munch on something every few hours

I feel much better…sometimes the

snacking is better than a meal.”

“What most people call “snacking”, I call either “dessert”, “meal replacement”

or “I-don’t-know-what-I-want-to-eat-but-I-know-I-have-to-eat-something.”

“I snack all the time… I would

rather do it than sit down to

a big meal.”

RESEARCHObjective

Survey

•  To understand snacking preferences and eating behaviors.

•  A survey was launched to members of the Trusted Media Brands Inner Circle Community

•  Timing: November 2017

•  Total Responses: 450

TMB Inner Circle

Survey

•  Most consumed snack categories

•  Trending categories

•  Impact of health concerns on snacking

•  When and how people snack

•  Motivation by category

•  Top of mind brands

TOPICS WE EXPLORED

17%

26%

44%

57%

58%

59%

60%

61%

64%

66%

89%

90%

92%

93%

Q – Tell us about your snacking habits for the following categories. I consume on a regular basis: I consume more than I did a year ago.

TOP SNACKS CONSUMED REGULARLY

Healthy & High Fat are in the Mix

Vegetables/Fruits

Salty (Potato Chips, Tortilla Chips, Crisps, Popcorn, Pretzels)

Dairy (Cheese, Yogurt)

Nuts/Seeds

Confections (Candy Bars, Chocolate, Sweets)

Breads

Cereal/Granola/Oatmeal

Cookies/Cakes/Pastries/Doughnuts

Savory (Crackers, Rice Cakes, Pita Chips)

Dips & Spreads (Salsa, Hummus, Peanut Butter)

Ice Cream/Sherbet/Sorbet

Granola/Nutrition Bars

Meat Snacks (Jerky, Dried Meat, Cold Cuts)

Smoothies or protein/meal replacement drinks

I don't have just one type of favorite go to snack.

It depends on the time of day and what I have a taste for.

I snack on nuts (almonds, pecans, walnuts), fruits

and veggies or healthy type crackers with cheese.

WHAT IS YOUR FAVORITE GO-TO SNACK?

“Flavored cashews: coconut, kashmir curry & salt & pepper, mixed together, chili lime flavor cashews. Dried fruit: raisins, figs, and dates.”

“Granola would be my favorite snack, whether

I be homemade or purchased, I usually go

to that first. If I don't have any granola handy I will

munch on some type of nut and a piece

of dark chocolate.”

“Customized mix of nuts, pretzels,

Japanese rice crackers, and Cheez-It or Goldfish

or Chex Mix”

SNACKS ARE AN INDIVIDUAL AFFAIR

56%I would like to eat healthier when

snacking than I do now

30%Choose healthy snacks all the time

55%Choose healthy some of the time

“I buy unsalted nuts in the baking section of the grocery store and also the bulk food area. I mix them together and add dried cranberries and, if I can find them, flavored chip peas. Usually those are salted and sometimes fried but since they aren't the bulk of the snack, I don't feel guilty about eating them. I try to keep my snacks healthy.”

“Imostlysnackonpretzelsorpopcornbecausetheyarelowerfatandreadytogo!”

HEALTHY MINDSET HAS TAKEN HOLD

TOP TRENDING CATEGORIES:Consume More Versus a Year Ago

27%Consume more

fruits/vegetables than they did last year

26%Consume more

nuts/seeds than they did last year

19%Consume more

nutrition/granola bars than they did last year

15%Consume more

confections (candy, chocolate sweets)

than they did last year

Source – IRI 2017 New and Emerging Snacking Trends

CHOCOLATE CONSUMPTION ON THE RISE

Products with Chocolate are Outpacing Food & Beverage Growth

53%Of food & beverage categories contain chocolate

2.4%Chocolate

+ 1%Food & Beverage

+

“Since I can't do dairy, I find cookies that are dairy-free, cakes with least amount of dairy possible (dark chocolate, if possible!)”

“Chocolate rice cakes…

taste good and makes for a

quick snack.”

Kashi Oatmeal Dark Chocolate cookies. They have fiber in them and I feel that the dark chips are more healthy than milk chocolate. They have 12g

of whole grain. I think they are healthier than other chocolate chip cookies.

“When I do snack I snack healthy - nuts, fruits,

veggies, cheese. When I do want a sweet treat I'll have a small piece

of dark chocolate.”

CHOCOLATE AND HEALTHY CONVERGE

OUR MOST SHARED CONTENT:Taste of Home Reflects Current Snacking Trends

Those who visit Snacking content on tasteofhome.com view

more pages per visit

2.4 X

6 IN 10 SNACK MULTIPLE TIMES PER DAY

When They Snack:

5%

33%

56%

40%

38%69%Snack in the

evening hours

1x Per Day 2x Per Day 3x Per Day 4+ Per Day

41%38%

11% 10%

59% Snack 2+ Times Per Day(71% among Millennials)

A5ernoon

PRIMARY REASONS FOR CHOOSING THESE SNACKS

Salty(Potato Chips, Tortilla Chips,

Crisps, Popcorn, Pretzels)

Cookies, Pastries,

Doughnuts

Savory (Crackers,

Rice Cakes, Pita Chips)

Candy Meats Dips Granola/ Nutrition

Bars

Cereals, Granola

SATISFY HUNGER INDULGENCE SATISFY

HUNGER INDULGENCE SATISFY HUNGER

SATISFY HUNGER

SATISFY HUNGER

NUTRITION HEALTH

INDULGENCE SATISFY HUNGER INDULGENCE SATISFY

HUNGER MEAL

REPLACEMENT NUTRITION

HEALTH NUTRITION

HEALTH SATISFY HUNGER

EMOTIONAL EMOTIONAL SPONTANEOUS BOOST ENERGY

NUTRITION HEALTH INDULGENCE BOOST

ENERGY MEAL

REPLACEMENT

TOP ATTRIBUTES FOR CHOOSING THESE SNACKS

Salty(Potato Chips, Tortilla Chips,

Crisps, Popcorn, Pretzels)

Cookies, Pastries,

Doughnuts

Savory (Crackers,

Rice Cakes, Pita Chips)

Candy Meats Dips Granola/Nutrition

Bars

Cereals, Granola

FLAVOR FLAVOR FLAVOR FLAVOR FLAVOR FLAVOR CONVENIENCE/READY TO EAT

CONVENIENCE/READY TO EAT

CONVENIENCE/READY TO EAT

CONVENIENCE/READY TO EAT

CONVENIENCE/READY TO EAT

CONVENIENCE/READY TO EAT

CONVENIENCE/READY TO EAT

CONVENIENCE/READY TO EAT FLAVOR FLAVOR

PRICE/AFFORDABILITY

PRICE/AFFORDABILITY

PRICE/AFFORDABILITY

PRICE/AFFORDABILITY PROTEIN HEALTHY HIGH IN FIBER WHOLE GRAINS

HOW IMPORTANT IS MAKING HEALTHY CHOICES

IN THESE SNACKS?

Salty (Potato Chips, Tortilla Chips,

Crisps, Popcorn, Pretzels)

Cookies, Pastries,

Doughnuts

Savory(Crackers,

Rice Cakes, Pita Chips)

Candy Meats Dips Granola/Nutrition

Bars

Cereals, Granola

66%

31%

75%

37%

59%

83%89% 88%

Salty Sweet Savory

FAVORITE BRANDS

Q – Can you name your favorite brand of Salty/Sweet/Savory?

58%“I know exactly what snacks I want to buy

when I go to the store”

57%“I like to try new snack

types/brands”

78%“I have a few snacks

that I stick with”

THE OPPORTUNITY:More than half open to new brands

I love almost all snack foods. I like the classics but also love to try new ones.

KEY TAKEAWAYS•  Traditional lines are blurring between snack food

categories, healthy and indulgent, and even ‘snacks’ vs. ‘meals’ creating opportunity across snack categories.

•  Snacking has become “a way of life” for some; There is a lot of positive sentiment around snacking; snacks are acceptable meal replacements and a means of maintaining health and energy throughout the day

•  Consumers love to individualize their snacks; both healthy and higher fat options top the consumption list

o  Most growth seen for vegetables/fruits, nuts/seeds, nutrition bars and chocolate

•  A Healthy Mindset has taken Hold. Consumers seek healthy benefits, especially in the dips, granola, nutrition bars, and cereal categories

RESPONDENT DEMOGRAPHICS

12%Age Under 45

53%Age 45-64

35%Age 65+

17%Male

83%Female

67%Married

61%Children

THE INNER CIRCLETMB Inner Circle is an

online insights community of more than 3,500 of our

most engaged consumers, the print and digital

consumers of Reader’s Digest, Taste of Home and

The Family Handyman.

Through weekly interaction, members provide insight

through discussion boards, quick polls and surveys.