CURRENT CONSUMER TRENDS:SWEETENERS
AUGUST 2015
MATT WILSONGLOBAL TRENDSGENERAL MILLS
Wellness trends in food dominating consumer conversation
Awareness and concern of sugar consumption growing with consumers
Interest in natural sweeteners with inherent benefits increasing
However, indulgence not decreasing, but overlapping with wellness cues
Current Consumer Landscape
Wellness trends in food dominating
• The Rise of “Real Food”• Natural Nutrition• “Free Froms”• GMO Awareness, Avoidance
Growing• Market Reaction
3
Source: CNN, Twitter, Nielsen Global Health & Wellness Survey
Real food is key to being naturally functional – not explicit health benefits
• Fresh• Whole (minimally processed)• Recognizable ingredients• Natural nutrition (not fortified)• Transparency
• Artificial anything (colors, flavors, preservatives, sweeteners)
• Added sugars (especially fructose, HFCS)• Simple (“bad”) carbs• “Low fat” and “Low calorie” claims
The Rise of “Real Food”
Trending:Detractors from
“Real”Trending:
Cues of “Real”
AlmondsHeart healthy &
nutrient rich
CoconutsRich in potassium
& minerals;Natural energy
• Naturally functional is a key ante, especially for new products, but not a platform itself• NOT about clean label, “all natural” or “organic”
claims, or even specific health claims – the inherent benefits speak for themselves
• Taste and convenience remain essential!
Source: New Nutrition Business – 10 Key Trends 2015
• Naturally functional spans food/beverage landscape• Consumers looking to foods with inherent benefits
“Natural Nutrition”
AlmondsHeart healthy &
nutrient rich
CoconutsRich in potassium
& minerals;Natural energy
• Naturally functional is a key ante, especially for new products, but not a platform itself• NOT about clean label, “all natural” or “organic”
claims, or even specific health claims – the inherent benefits speak for themselves
• Taste and convenience remain essential!
“Let food be thy medicine and medicine be thy food.”Hippocrates
Source: New Nutrition Business – 10 Key Trends 2015
• Naturally functional spans food/beverage landscape• Consumers looking to foods with inherent benefits
“Natural Nutrition”
Source: Hartman, Crimson Hexagon, Mintel
Cueing fresh: Demands of “free from” artificial colors, flavors, preservatives, and unnecessary ingredients rising
• “From Froms” = The new table stakes• Real food = Nothing artificial
“Free Froms”
Artificial Sweeteners
HFCS
GMO's
Processed Foods
Sugar52
42
51
11
16
21
24
26
Major Effort to AvoidAt Least Conscious Effort to Avoid
Source: Hartman, Crimson Hexagon, Mintel
Cueing fresh: Demands of “free from” artificial colors, flavors, preservatives, and unnecessary ingredients rising
• “From Froms” = The new table stakes• Real food = Nothing artificial
“Free Froms”
Artificial Sweeteners
HFCS
GMO's
Processed Foods
Sugar52
42
51
11
16
21
24
26
Major Effort to AvoidAt Least Conscious Effort to Avoid
Source: Nielsen Headwinds Study, Total Respondents (n=31375), Aug/Sept 2014 . “Please select the statement that best describes how you and others in your household are seeking or avoiding the following things from your/your family’s diet.”. (2) Hartman Organic Study, 2014. (3) The NPD Group Food Safety Monitor, January 21, 2015 version (data collected monthly)
GMO Awareness, Avoidance Growing
Awareness Growing Faster GMO in Top Ingredients to Avoid
Consumer concerns over GMOs• Unnatural• Prioritizes profit over consumer health• Unknown impact to environment
Pre-2010 2010 2011 2012 2013 2014 Jan '15 Feb '15 Mar '15 Apr '15May-June '15Future
• Issuing a comprehensive “No No” ingredient list• Introducing store brands with a banned ingredient
promise• Removing artificial colors, flavors, & preservatives• Removing HFCS• Going non-GMO
Examples:
2010 through 2014
Market Reaction
Brands moving closer to “Real Food” accelerating
Pre-2010 2010 2011 2012 2013 2014 Jan '15 Feb '15 Mar '15 Apr '15May-June '15Future
• Issuing a comprehensive “No No” ingredient list• Introducing store brands with a banned ingredient
promise• Removing artificial colors, flavors, & preservatives• Removing HFCS• Going non-GMO
Examples:
2010 through 2014
Market Reaction
Brands moving closer to “Real Food” accelerating
Pre-2010 2010 2011 2012 2013 2014 Jan '15 Feb '15 Mar '15 Apr '15May-June '15Future
• Issuing a comprehensive “No No” ingredient list• Introducing store brands with a banned ingredient
promise• Removing artificial colors, flavors, & preservatives• Removing HFCS• Going non-GMO
Examples:
2010 through 2014
Market Reaction
Brands moving closer to “Real Food” accelerating
Pre-2010 2010 2011 2012 2013 2014 Jan '15 Feb '15 Mar '15 Apr '15May-June '15Future
• Issuing a comprehensive “No No” ingredient list• Introducing store brands with a banned ingredient
promise• Removing artificial colors, flavors, & preservatives• Removing HFCS• Going non-GMO
Examples:
2010 through 2014
Market Reaction
Brands moving closer to “Real Food” accelerating
Awareness and concern sugar
• Headlines Driving Consumer Concern• Avoidance of Artificial Sugars Growing• Consumers Subjectivity With Sugar Varies
9
Headlines Driving Consumer Concern
After calories, sugar is the most-checked nutrition fact for all label readers1
GMI gets 10X+ sugar contacts as sodium, preservatives, colors2
Interest in managing sugar spikes in response to WHO announcement and other press3
Sources: 1 Gallup Clean Label Survey 2013, 32 F15 GMI Consumer Contacts 5/14-3/15 3 Who.int Press Release March 2015
4
Healthy sugar
Daily sugar intake
* A + B, WHO announcement dates
B A
Headlines Driving Consumer Concern
After calories, sugar is the most-checked nutrition fact for all label readers1
GMI gets 10X+ sugar contacts as sodium, preservatives, colors2
Interest in managing sugar spikes in response to WHO announcement and other press3
Sources: 1 Gallup Clean Label Survey 2013, 32 F15 GMI Consumer Contacts 5/14-3/15 3 Who.int Press Release March 2015
4
Healthy sugar
Daily sugar intake
* A + B, WHO announcement dates
B A
Red 40
HFCS
Artificial Sweeteners
HFCS
GMO's
Processed Foods
Saturated Fat
Artificial Flavors & Colors
Preservatives
Sodium
Sugar 52
55
49
49
56
56
42
58
51
11
13
13
15
16
16
21
24
26
Major Effort to Avoid At Least Conscious Effort to Avoid
While there is an effort to avoid sugar by many households, i t ranks lower on “major effort to avoid,” similar to Sodium
Sugar a matter of moderation rather than a deal breaker
Low sugar options may need to deliver on other priority free-from claims: gluten, soy, sodium, GMOs, and artif icial ingredients.
Avoidance of Artificial Sugars Growing
Source: Nielsen GMI Headwinds Study Survey n=31,982
Source: Mintel Sugar and Sweeteners US September 2014
Consumers Subjectivity With Sugar Varies
Bad for Health(Avoid)
Neutral
Good for Health
(Moderate)
HFCS
SaccharinAspartame
XylitolErythritol
Sucralose
Granulated sugar
Honey
Monk fruit
Coconut sugar
Agave
Stevia
Consumers are concerned about the overall amount of sugar in their foods, but also differentiate between healthfulness of different types of sweetener.
HFCS and Aspartame are perceived as artif icial and unhealthy. Honey associated with health benefits
Interest in natural sweeteners with
• Consumer’s View of the Sweetener Landscape
• The Evolving Evaluation of Sweeteners
13
Falling from Favor Currently Trending Rising Stars Down the RoadCaloric sweetenersCaloric sweetenersCaloric sweetenersCaloric sweeteners
High Fructose Corn Syrup
Corn SyrupRefined Sugar
Agave
HoneyRaw sugarcane juice
Brown Rice SyrupBarley MaltMaple syrup
Coconut or Palm SugarSorghum Syrup
Yacon SyrupRaw Unpasteurized
HoneySucanat
Date SugarLucuma fruit
Low or Noncaloric sweetenersLow or Noncaloric sweetenersLow or Noncaloric sweetenersLow or Noncaloric sweeteners
SucraloseTruvia blend
SteviaXylitol
Erythritol*
Monk fruitOrganic Stevia Leaf
Protein sweeteners:Brazzein, Monatin
Rare sugars:Allulose
Miracle berry
Sources: Hartman Consumer POV on Sugar 2013, Crimson Hexagon 2015 *Associated with Truvia backlash
Consumer’s View of the Sweetener Landscape
Consumers Evolving Evaluation of Sweeteners
Natural
Trace BenefitsLow Calorie/ Glycemic
Sources: 1 Crimson Hexagon,
Emerging sweeteners are judged on three facets: naturalness, GI or calor ie count, and any posit ive nutr i t ion they may bring1
While natural sweeteners carry a posit ive halo, FDA-proposed “added sugar” labels may lower subject ive di fferences
Posit ioning, processing play a big role in judging ‘naturalness’.
Indulgence not decreasing, but
• Sweets + Real Food• Justified Indulgence
16
Sweets + Real Food
Source: Consumers Approach to Energy in Food & Beverage (2015), Hartman; State of the Snack Food Industry (2015), IRi
It’s not about the perfect balance of nutrients in every snack; it’s about real food.
• Organic• Made with organic blueberries,
sugar, honey• 22g sugar• 7g protein
17
Sweets + Real Food
Source: Consumers Approach to Energy in Food & Beverage (2015), Hartman; State of the Snack Food Industry (2015), IRi
It’s not about the perfect balance of nutrients in every snack; it’s about real food.
• Organic• Made with organic blueberries,
sugar, honey• 22g sugar• 7g protein
17
Justified Indulgence
Source: Consumers Approach to Energy in Food & Beverage (2015), Hartman; State of the Snack Food Industry (2015), IRi
But, having a few indulgence snacks throughout the week is part of a happy life.
18
• Made with sugar, high fructose corn syrup, palm oil
• 14g sugar/ serving (3 cookies)
• 1g protein
19
Wellness trends in food dominating consumer conversation
Awareness and concern sugar consumption growing with consumers
Interest in natural sweeteners with inherent benefits increasing
However, indulgence not decreasing, but overlapping with wellness cues
Summary
THANK YOU
20