Spotting Millennial Food Trends:

Five to Monitor

Prepared for 13th Annual Stakeholders Summit

May 8, 2014

5 Food TrendsObjectives• Survey critical issues, opportunities• Focus on long-term trends• Analyze implications

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5 Food TrendsAgenda• Protein Power• Veggie Chic• Super Snacks• Hot Buttons• Real Food

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Trend 1:Protein Power• Retail Grocery: product

claims jumped 54% past 5 years

• Restaurants: menu mentions jumped 64% past 5 years

• US is largest market in world for high protein products

Source: Mintel; Technomic, Inc.

Greek Yogurt, Energy Bars Take Supermarkets by Storm 4

More Than Half of AdultsWant More Protein in Diet

Source: NPD Group

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Dairy Industry Focuses on Protein…

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…And Restaurant ChainsGetting on Board

TACO BELL’S POWER PROTEIN MENU

TARGETS MILLENNIALS

• 20+ Grams of Protein• Fewer Than 450 Calories

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Protein PowerImplications• Opportunity to exploit• Addition NOT subtraction• Watch for backlash• Expect changing guidelines• Consider gender segmentation…

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… As More Marketers Target Millennial Males

“Brogurt” Appeals to Men

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Trend 2:Snackification

1%

5%

6%

9%

36%

42%

Usually just snacks, nomeals

3 meals, no snacks

3 meals with many snacksbetween

Usually skip or replace 2meals with snacks

3 meals with few snacks inbetween

Usually skip or replace onemeal/day with snacks

24/7 LIFESTYLES UPENDING CONVENTIONAL MEAL PATTERNS

Source: Technomic Snacking Occasion Consumer Trend Report

Millennials AreSuper Snackers…• “Time-crunched multi taskers”• Convenience/food on demand• Fresh, real, less processed

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…And Entrepreneurs MeetTheir Demands

Nature Box Delivers Healthful Small Bites

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Opportunity for Next-Gen ItemsAt Both Retail, Restaurants

McDonald’s Snack Wrap

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SnackificationImplications• Need to reconsider positioning, portioning, packaging• Second-generation product opportunity• Emphasis on good and good tasting• Monitor for changes as millennials age, form households

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Trend 3:Food Activism SELECTED HOT BUTTONS, BUZZ WORDS

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Antibiotic/Hormone/Steroid Free Biodynamic Cage Free Clean Foods Carbon Footprint Energy Efficient Eco-Friendly Ethical Fair Trade Free Range Gestation Crates Grass Fed

GMOs Humanely Raised Local Natural Organic Permaculture Rainforest Alliance Recyclable Sustainable Traceable Vegetarian/Vegan Whole Foods

Animal IssuesGaining Support

GMO Uproar Catching Fire

LEGISLATIVE ACTIVITY HEATING UP AT STATE LEVEL

• 97% sugar beets• 93% soybeans• 90% cotton• 90% feed corn• 60% papayagenetically modified in US

General Mills SellingNon-GMO Cheerios

• Announced Jan 2, 2014• GMO Inside campaign was totally digital: -40M Facebook Posts -200M You Tube Views• Sales “down somewhat” since change

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Everyone’s A Journalist…

“10 Most Influential Mommy Bloggers” Include:Heather B. Armstrong, 1.5MM+ followers-Based in Utah

Jenny Lawson, 100M+ followers-Based in Texas

Stacie Connerty, 50M+ followers-Based in Georgia

Source: Cision

…In WiredWorld 1.5MM You-Tube views…

Jamie Oliver’s “Pink Slime” episode on ABC

…250,000 signatures

Bettina Siegel, Houston, blogs “The Lunch Tray”

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Chipotle Marketing HitsMillennials’ Hot Buttons

“Outrageously twisted and utterly unsustainable world of industrial agriculture”

Food ActivismImplications• Monitor digital conversations• Stay ahead on hot-button issues• Enlist appropriate advocates, spokespeople• Recognize emotional underpinnings• Pay special attention to kids, moms

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Trend 4:Veggie Chic

WHY IS PRODUCE SO HOT?• Center-of-Plate Volatility• Culinary Sensibility• Consumer Health Interests• Range of Options• Versatility/Flexibility• Availability/Formats

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Cruciferous CrazeTypifies Veggie Trend

California Pizza Kitchen’s Brussels + Bacon Pizza

Herbed Goat Cheese, Caramelized Onion, Romano Cheese

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No. 7 Subs’Broccoli Sandwich

• Fresh Mozzarella• Thai Basil Pesto• Fried Lemon

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Brennan’s of Houston’sChicken-Fried Cauliflower Steak

26Purple Majesty Potato Salad, Vegan Mushroom Gravy

Despite Veggie Innovation,Meatless Monday Stumbling• US House of Rep. Vegetarian Caucus recently formed

• But proposed Meatless Monday in cafeteria fails

• San Diego School District adopts in September 2013• One of largest districts to embrace

• Importantly, majority colleges and universities fail to endorse• “Students felt we were regulating their choices”• “Name sounds like we’re taking something away from customer”• “Yale Dining actually increased quality of meat it serves”

Source: Foodservice Director27

Veggie ChicImplications• Veggie interest will increase• Reflects desire for good food…• …NOT rise in vegetarianism• Meatless meals least popular way to save $• Shifting priorities favor “clean,” “whole,” “real”• Major opportunity for animal protein

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Trend 5:REAL Foods• Butter consumption +24% past decade• 5.6 lbs per capita 2013 vs. 4.1 lbs in 1997• “Wholesome, pure, not a lot of other ingredients”

Nose-to-Tail Cuisine, Butchers Bounce Back

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Demand for Local FoodsBoosts Farmers’ Markets

FARMERS’ MARKETS ON GROWTH CURVE,THOUGH LOSING LUSTER IN SOME AREAS

1994 2004 2013 Number of Markets 1,755 3,706 8,144

Source: USDA AMS

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Microwaves Lose Favor AsConsumers Seek Involvement

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REAL FoodImplications• Quality definition changing

• Real foods favored• Powerful consumer drivers

• Both millennials and boomers• Signifies goodness without deprivation

• Standards of identity not established• MAJOR opportunity for animal proteins

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