the rapid rise of allergen free products in food and drink

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Slide 1 The rapid rise of allergen-free products in food & drink NPD

Fastest rising claims in food & drink product launches, Top 5 – Global

2015 is Jan-Sept Source: Mintel GNPD

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2015 is Jan-Sept Source: Mintel GNPD

Slide 2 Gluten-free is the driving force

Gluten-free claim penetration in food & drink launches - per region

The most innovative regions by some distance

Consistent progress, led by Spain, Germany, UK, Italy

Driven by legislative requirement for gluten disclosure in Brazil

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$8.8 bn market value in 2014

Slide 3 US, by far the largest market for gluten-free

Gluten-free food & drink

Source: Mintel Reports

25% of adults said they eat gluten-free versions of food in June 2015, compared to 22% in June 2014

62% value growth forecast 2014-2017

A wide range of health-related issues influence perception of gluten-free

Other (than intolerance/sensitivity) reasons for eating gluten-free foods, US, June 2014

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Slide 4 The UK is less dynamic (than the US), but still a fast growing market

•  Total UK free from market valued at £365m in 2014, forecast to grow by 50% by 2019 •  Both the dairy-free and gluten-free segments continue to record impressive growth (both

seeing 15% growth between 2013 and 2014)

Excludes prescription sales Source: Mintel Reports (based on IRI/Mintel)

2014:

Gluten/wheat-free: £184m

+15.0% on 2013

Dairy/lactose-free: £181m

+15.3% on 2013

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Slide 5 Penetration of free-from food reaches 30%


Three in 10 people in the UK had bought or eaten free-from food in the six months to June 2014, with gluten-free and dairy substitutes being the most commonly purchased/eaten – by 18% and 17% respectively.

6 Source: Free-from Foods - UK - November 2014

Slide 6 Millennials are more influenced by new ‘free from’ lifestyles

UK 16-34 year olds are 31% more likely than average to

avoid red meat and/or poultry

They are 40% more likely than average to avoid dairy and/or lactose

They are also 40% more likely than average to avoid

wheat and/or gluten


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Figure 1 The “Lifestylers” account for almost half of the ‘free from’ audience

39% of people live in households where

somebody is avoiding specific foods/ingredients

because of an allergy/intolerance

or because of a lifestyle choice

Of the avoiders, almost half (46%)

do so “as part of a general healthy

lifestyle” with the remainder having “an allergy or food

tolerance”


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Types of food avoided, UK, June 2014

Slide 7 UK: avoidance driven as much by healthy lifestyles than intolerance


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Slide 8 Healthy image, variety, naturalness and weight control benefits all appeal above personal allergy/intolerance


Reasons for eating free-from foods, UK, September 2015

•  The top reason consumers don’t eat free-from foods is because they are deemed as too expensive compared to standard foods (39%), followed by the belief that they do not taste as good as standard alternatives (22%)

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Slide 9 Food launches by selected health/natural claim: GF vs. Non-GF

Gluten-free vs. Non-Gluten-free, Europe, Oct 2012 – Sept 15 % of launches by selected claim

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Slide 10 Riding the craze for trendy ingredients – protein, ancient grains, almond/coconut

High protein claims are increasingly coming into mainstream products but free-from has already been riding the craze

Source: Mintel GNPD

Melro's Best Simply Oragnic Raw Coconut

Brownie (France)

Enjoy Life Brownie Mix with Ancient Grain made with teff

and flaxseed (US)

Wholesome Chow Organic Gluten Free Hi-Protein

Pancake & Baking Mix (US)

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Slide 11 Bread brands work harder to convey health

•  Genius adapts its bread recipes – now boasting low levels of saturated fat and high levels of fibre, as well as no artificial preservatives and additional vitamins and minerals (some lines containing omega-3 or iron)

•  Dr. Schär USA revamps with a new line of Artisan Baker breads, baked with ancient grains

Silver Hills Gluten Free Omega Flax Bread contains high fibre omega 3 flax seeds (US)

PureBred Bakery Multigrain Farmhouse Loaf is a gluten-free, five grain high fibre loaf with omega 3 rich seed mix (UK)

Source: Mintel GNPD

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Simple Mills Naturally Gluten-

Free Chocolate Muffin & Cake Almond Flour Mix (US)

Paleonola Pumpkin Pie Grain Free Granola (US)

Slide 12 What’s next – watch for grain-free

Source: Mintel GNPD

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•  Grupo Bimbo is the biggest baking company in the world but it still claims less than a 5% share of the global baking industry according to its own estimates. This despite a very acquisitive few years for the company, including buying Canada Bread in 2014

Slide 13 Bakery remains fragmented globally

**Market share Source: Grupo Bimbo company information / Mintel Market Sizes

No.1 in North America - 26% value share of bread market in the US - 32% in Canada No. 1 in Latin America, e.g.: - 34% value share of bread market in Brazil - 55% in Chile - 56% in Colombia - 85% in Mexico

Also a leader in sweet bakery in those regions

But elsewhere it’s more ‘patchy’: • No.1 in Spain/Portugal and also present in the UK with New York Bakery Co. • Small presence in China (c1% share)

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Slide 14 Grupo Bimbo - recent NPD of note • Bimbo Bakeries in the US has a range of mainstream bread brands and has been prioritising a healthier positioning for many of these. The company has had particular recent success with the Thomas’ brand, with high recent sellers including a limited edition cinnamon vanilla English muffin, and protein and fibre fortified versions

Source: Mintel GNPD

Thomas' Double Protein Oatmeal English Muffins Comprise a blend of wheat and rice protein. The low fat product is free from trans fat

and cholesterol, it contains 7g of protein per serving

Healthfull Bread - available in Flax &

Sunflower, Steel Cut Oats & Honey, and Nuts &

Seeds variations Contains no high-fructose

corn syrup or artificial colors or flavors

Brownberry Natural Health Nut Bread Made with

natural ingredients, including almonds/walnuts, provides 8g of wholegrain and 3g of

fibre per slice

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Yamazaki Lunchpack Milk Coffee Cream Sandwich

(limited edition) Features milk coffee cream

designed to resemble Ucc Milk Coffee

Yamazaki Lunch Pack Three Berries Chocolate Tablet &

Yogurt Cream Sandwich Fiilled with a chocolate tablet with

three berry syrups and yogurt cream with Disney design

Slide 15 Yamazaki Baking – recent NPD of note Yamazaki has used seasonality in many of its launches, as well as co-branding, and has also more directly targeted children through new products such as lunch pack sandwiches aimed specifically at this demographic

Source: Mintel GNPD

Yamazaki Wonut Strawberry Chocolate

Waffle Doughnut Yamazaki has introduced

numerous packaged hybrid bakery products, such as cronut variants and this

‘Wonut’

Yamazaki Ensaïmada Originally from Spain. The soft fluffy

bread contains cheese and is saturated in sugar and margarine.

It is common to see European specialities re-configured in the Yamazaki range and in single-

portion packs

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US retail push for Otis Spunkmeyer

The new retail line will begin hitting shelves in early 2016 and will go beyond the cookies and muffins the company long has

been known for

Slide 16 Aryzta – recent NPD of note

•  On the back growth for American-style bakery products in Europe, Aryzta has launched its Otis Spunkmeyer brand into the foodservice sector in Europe with its range of cookies, donuts and muffins. It is also embarking on a US retail push for the brand in 2016

Source: Mintel GNPD

In the UK, Aryzta has been focussing on the ethnic bread market recently, launching a

new line of Planet Deli naan breads in the retail

market

Aryzta has also been expanding its Wrapped to Go range in the UK, including with the above salted caramel shortbread bar Under the Cuisine de France unit, Aryzta has also recently launched ‘Le Twist’, an almond encrusted pastry filled with crème patissiere

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Slide 17 Flowers Foods – recent NPD of note

•  Pushing naturalness/quality under Nature’s Own and Cobblestone Bread Co. brands, although more NPD can be expected from the Wonder brand following its integration into the business in 2013/2014

•  Has also made a big push into organic in 2015, buying Dave’s Killer Bread and Alpine Valley

Natures Own White Enriched Bread

No trans fat, cholesterol, artificial preservatives, colors, flavors or HFCS.

35% less sodium and x5 the fiber of enriched white bread Flowers has this year cut the number of ingredients in Nature’s Own bread (the best-selling bread brand in the US) to 14 from 26

Source: Mintel GNPD

Cobblestone Bread Co. Knead for Seed 12 Grain Bread

Cobblestone is Flowers new brand described as “everyday artisan”

bread aimed at the millennial generation with a big focus on social

media and sandwich recipe idea generation

“The cure for the sandwich rut”

Dave's Killer Bread Sprouted Wheat Organic Bread Free from GMO, animal products, artificial preservatives, artificial ingredients, HFCS and power-packed with wholegrain nutrition. Alpine Valley Natural Whole Grain Breads Organic multi-grain bread with omega-3

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Slide 18 Rich Products – recent NPD of note

•  Rich Products has aimed to take advantage of the flatbread boom in the US with anew retail range, as well brand licensing opportunities (in its ice cream cakes) and the demand for more varied flavours in sweet bakery (via its in-store bakery range)

Rich’s Extreme (in-store bakery)

Line-up of indulgent, decadent treats includes six items portioned for one to two people: Mini Chocolate Brownie Extreme, Mini Caramel Sea Salt Blondie Extreme, Mini Boston Crème, and three flavours of bar cake (Red Velvet, Triple Chocolate, and Carrot)

Source: Mintel GNPD

Our Specialty is a new line of 10 retail-packaged, premium

flatbread products The new items include traditional

flatbread products such as original naan, original pita, wheat pita, white

Sandwich Flats and multigrain Sandwich Flats, as well as garlic cheese naan, original rustic Flats,

Italian herb Flats, chipotle Flats, and garlic and herb pizza crust.

Rich's Wishes Chocolate Cake & Vanilla Ice Cream &

Hello Kitty licensed Ice Cream Cake

The company has a range of Happy Birthday ice cream cakes, with other licences

including Oreo, Twix, Snickers, Chips Ahoy! And recently the

Peanuts comic strip

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Slide 19 Top 6 other global bread and sweet bakery innovations (last 12 months)

Ferrero Nutella B-Ready Bread Wafer with a Nutella

Filling (Italy)

Woolworths Food CarbClever Cauliflower

Wraps (SA) Food for Life Sprouted for Life Gluten-Free Almond

Bread (US)

Windy City Organics Rawmio Organic Raw

Chocolate Truffle Cake (US)

Dahls Coarse Coffee Bread baked with coffee

and flavoured with cranberries (Sweden)

Atrian Home Crok Glas croissant-doughnut

pastry (Spain)

New formats and new ingredients a feature

Source: Mintel GNPD

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