SNACK SENSATIONS AROUND THE WORLD - Sally Lyons Wyatt EVP & Practice Leader, IRI April 13, 2022
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SNACK SENSATIONS AROUND THE WORLD Sally Lyons Wyatt EVP & Practice Leader, IRI April 13, 2022
There are Trends Impacting All Countries Around the World
COVID increased Global supply chain
snacking at constraints causing
home out-of-stocks
Online Inflation
Acceleration Over Increasing
the Past 2 Years Prices
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 2
We Have Observed Consumers
Mobility Triggering Snacking Changes
of household shoppers in NZ
28% snack/graze versus sitting down
and eating a full meal
45% of Consumers Enjoy
3+ Snacks Per Day
Source: IRI State of the Industry Household Shopper Survey Oct 2021_New Zealand, Powered by Dynata; IRI US – 2022 IRI Snacking Survey
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 3
We Will Provide a POV on Key Trends
Impacting Snacking Across the Globe
For deep dives, we encourage working with each country
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 4
Salted Snacks Found Growth in 2021 Across Many of the Countries Due
In Part to Hybrid Working Models and Increased At Home Occasions
Value (€,$, etc.) Units
+11% +9% +8% +5% +8% +2% +6% +3% +5% +1% +5% +4%
+3% +0.9% +2% +0.8% +2% +0.4% -0.4% -0.9% -2%
Select Countries and Categories Definitions May Not Match 100% - includes Crisps/Chips, Pretzels, & Popcorn
Source: INTAGE Inc. and IRI - All IRI POS Data is Full Year 2021
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 5
Trends Experiential Influencers
to Catapult Future Growth
Shelf Sensitivities Evolving
Virtual & Physical Shelf Consumer Segments
The Snacking Paradigm
Convergence of Agile Innovation
Consumer and Channels
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 6
Shelf
Sensitivities
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 7
This is Not the First Nor Last Inflation,
But This One is Very Different Commodity
Prices
Soaring
Energy
There Has Never Been Such a Convergence Rising Prices
of Inflation-Driving Factors Since the Uneven
Out of Consumer
Great Depression in the 1920s Stocks Demand
Transportation COVID-19
Disruption Uncertainty
• Significantly higher input costs make
it harder to deliver EDLP Govt. Support
• Supply-side discontinuities in a Shipping Ends; Cross-
Border +
Costs 7x
highly-globalised value chain Begin
accelerating global impact
Ingredient &
Labor Component
Gaps Shortages
+
UK’s HFSS Complexity & Costs
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 8
Geo-political Instability: Intensifying Impact on European FMCG
(That a Ceasefire Will Not Quell)
1 2 3 4 5 6
Edible Ingredients Organic Produce Commodities Oil Distribution Distribution Refugees
& Supply Gaps
Ukraine and Russia Ukraine main supplier Major source of Iron- Ukraine’s largest Millions displaced are
Russian oil pipelines
are global Top 3 of organic fresh food & Ore for low-cost steel; FMCG distributors are skilled & unskilled
supplying Europe run
exporters of Wheat, ingredients for EU Manganese & Russian-owned workers unlikely to
through Ukraine could
Rye, Corn, Potatoes, manufacturers & Titanium, ground monopolies subject to return until normalcy &
become legitimate
Sunflower Oil, retailers Grains & Meal for dairy sanctions security is guaranteed
targets for sabotage
Powdered Eggs crucial & poultry feed
to processed food & OPEC declines
beverage industry request to fill gaps to
stabilise prices
OUTCOME: EUROPEAN INFLATION INTENSIFIES
High Input Costs + Ingredient Shortages + Capacity & Distribution Gaps + Labour Gaps
CEASEFIRE: Russian sanctions will not be removed immediately + Ukraine requires significant economic & humanitarian aid to resume normal agricultural & economic activity
Source: IRI “An Imperfect Inflation”
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 9
IRI does not provide a political opinion. Any views here are not endorsed as such.
Value Elevation* Trends for FMCG Food Categories in Large Eurozone Markets
Such as the UK Illustrate How They are Likely to be Affected Based Growth Rates &
Consumer Factors
Likely to Stay Elevated Value Elevation* Return to Normal Value Elevation* Minimal Impact Value Elevation* Likely to Worsen Value Elevation*
Categories 2020 L12 Categories 2020 L12 Categories 2020 L12 Categories 2020 L12
Yoghurt Drinks (Gut Health) 12 15 Ambient Ready Meals -11 -2 Table Sauces, Salad Frozen Desserts 12 -3
-3 -6
Dressings, Dips
Sports / Energy Drinks 11 14 Fresh Soup -2 3 Pre-packaged Sandwiches 2 -3
Coffee 0 -5
Flavoured Water Drinks 5 13 RTE Cereals -5 -2 Chewing Gums & Candies 3 9
Frozen Food & Vegetables -11 -17
Savoury Snacks & Crisps 0 3 Sandwiches 4 21
Tea -4 -4
Desserts 8 7 Carbonated Water, Drinks -1 5
Chocolate & Season Gifting 1 1
Baby Foods (excl Formula) 10 16 Canned Soup -8 -3
Prepacked Cheese -2 -5
Frozen Meals -1 1
Cereal Snack Bars -1 -7
Pre-packed Pizza -4 0
Fruit Juices 1 10
Baby Milk & Formula -3 8
Source: IRI “An Imperfect Inflation” - 2020 Value Elevation is calculated as ppt difference of CAGR 2017-2019 to L52 WE 2/21/21; * L12 Value Elevation is calculated as ppt difference of CAGR 2017-2019 to L12 WE 2/21/21.
Categorization based on IRI Data (as above), price sensitivity data, Panel & shopper and secondary research ; Data: All IRI POS Data ending Oct 21; UK Price Sensitivity Model; Kantar & GfK Consumer Studies from Europanel
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 10In the US, although Inflation is On The Rise, Consumers are Less Sensitive to Price in Some
Categories; This is Likely to Change as Savings Deplete or if the US Dips Into a Recession
Base Price Sensitivity Trends, 2019 to Current
Segment Segment Segment Segment
0.00 0.00 0.00 0.00
-0.50 -0.50 -0.50 -0.50
Less Sensitive
-1.00 -1.00 -1.00 -1.00
-1.50 -1.50 -1.50 -1.50
-2.00 -2.00 -2.00 -2.00 Historic
Benchmarks
-2.50 -2.50 -2.50 -2.50
More Sensitive -3.00 -3.00 -3.00 -3.00
Potato Chips Tortilla Chips Dried Meat Snacks Other Salted Snacks
Pre-Pandemic During Pandemic Pandemic Forward
Source: IRI PS ending 02/20/22, IRI Executive Insights: IRI US
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 11As the Seesaw Continues to Go Up and Down Before
Normalizing, Manufacturers Should Focus in
These Areas to Drive Profitable Growth in 2022
Price Promo Targeting Innovation /
Price Forecasting Investment & Comms Renovation
Weigh pros and Watch for Plan for promo The cohorts Focus on
cons of price demand to intensity to driving growth margin accretive
increases and decrease and increase as a are changing; innovation and
timing of manage reaction to comms will equity building
execution inventory tightly shoppers need to change benefits to
with updated looking for deals as well to be support higher
inputs relevant and prices
resonate
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 12The
Snacking
Paradigm
Convergence of Consumer
and Channels
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 13The Convergence of Consumer and Channels is Evident Across the Consumer
Journey, and it has Become More Complex and Challenging to Navigate
Inflationary
Pricing Macro Shelf Assortment Changing
Focus on Food
Economics Dynamics Shoppers
with Function
Evolved
New Realities Self- Care
Evolving Media &
Social Commerce
Retailer
PL Penetration & Channel Blurring Third Largest
Demands
Share Platform
Environmental
Impact
Convenience Redefined: Impulse Redefined
Supply Chain
Disruptions Shifts In At-Home Quick Commerce
Online
Consumption Emerging
Evolution
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 14Overall, Online Growth is Evident Across Countries With Varying Dynamics
Online
Evolution
Click & Collect smaller due
Stalled but Still Growing to limited parking
Overall retail growth not specific
to snacks
Online
Online
Online
Brick and Mortar
Slowed down in
the last quarter
Click and Collect
Home Delivery Online Overall retail growth not specific
to snacks
For food still on comparably low Feb 2022
level but major push through Online
Online pandemic
B&M Click and Collect Online Grocery Online
B&M Home Delivery Click and Collect
Source: France: eCommerce 2020 vs prior year; IRI Spain; US – Core Snack Specific – Year 2021 vs YA; IRI Australia – Total FMCG
Online 52 weeks 30/01/22; IRI New Zealand 2021 vs 2020 and February 2022
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 15There is Evidence of Channel Blurring Around the World
Channel Blurring
Italy Consumers Discounters have
recognize Discount tried to become
shops not only for their more premium
convenience within the last couple
of years
Shoppers loyal to the Shoppers loyal to the
Pre-COVID Discount Post-COVID Discount
100 120 We Have a Dollar
Chain (Value-type
Channel) Moving Into
the Convenience
Space
In Japan, the percentage of
drugstores selling
food products is becoming Grocery acting like
higher than before Discounters
Image Source: Google images; https://www.dallasnews.com/business/retail/2022/01/28/dollar-general-brings-its-new-concept-popshelf-to-texas-first-in-mckinney/; Japan -
https://www.sankei.com/article/20171016-UJP2BG6R6ZPIRIPMQ2TZMCRF5I/photo/QASQNW64WVIMPHK6SYUE7WVGBM/
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 16Planned Impulse
There
4 Main Ways
Consumers Purchase Q-Commerce /On Demand Experiential
and Consume Snacks
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 17Quick Commerce has Evolved to Not Only Deliver from Retail and
Quick
Restaurants but Also With Their Own Warehouses Commerce
Emerging
gopuff Q-Commerce targeting Glovo and Gorillas Fight for space in cities for more
snacking and other F&B occasions dark store warehouse space for
Q commerce companies
The country's largest grocery retailer Foodstuffs
has partnered with Uber Eats for a trial run at
delivering groceries to its customers. Dec 2021
March 2022
Glovo, Getir, Gorilla, Uber, Deliveroo Lieferando, Gorillas, Flink, Wolt,
Alpakas, Getir, Knuspr
Flink snaq.me: "More than 100 varieties that
Deliver in a few minutes
change every month 8 different kinds of
1,80€ delivery fee; 1€
snacks in small portions.”
minimum order value LikeSweetsBOX: This service delivers
Ordering by app in 42
photogenic and stylish authentic cakes and
cities www.goflink.com
sweets once a month.
Image Source: Google images; www.gopuff.com; https://gorillas.io/; https://glovoapp.com/; www.ubereats.com; www.goflinkcom; https://www.sankei.com/article/20171016-
UJP2BG6R6ZPIRIPMQ2TZMCRF5I/photo/QASQNW64WVIMPHK6SYUE7WVGBM/: https://snaq.me/; https://likesweetsbox.com/;;; https://www.stuff.co.nz/business/128070027/us-food-delivery-service-doordash-expected-to-
launch-in-nz-next-month#:~:text=DoorDash%20planned%20to%20launch%20in,cases%20are%2C%E2%80%9D%20she%20said.
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 18In Fact, Traditional Retailers are Leveraging Fast Delivery
Companies to Compete Quick
Commerce
Emerging
UK
Dia partners with
Uber Eats to Kaufland
Morrisons joins up with distribute the Cooperation with Lieferando and Grovy
Deliveroo and Gopuff, and purchase in 40 Increasingly represented in Eastern Europe in
Sainsbury’s with Deliveroo minutes particular
for home delivery
Convenience Retailers Partnering
and Helping Drive Late Night Growth GLOBAL
BP teams up with Uber
Eats in global retail
partnership to make more
than 3,000 retail locations
available on the delivery A new feature that completes Carrefour's
platform in next 3 years eCommerce offer with an additional option
available to customers.
Source: https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-and-uber-to-drive-delivery-growth-with-global-strategic-partnership.html
https://www.grocerydive.com/news/gopuff-links-with-uk-supermarket-chain-morrisons-on-rapid-delivery/621095; https://uk.deliveroo.news/news/deliveroo-sainsbury-s-partnership-expansion.html
; https://www.morrisons-corporate.com/media-centre/corporate-news/gopuff-and-morrisons-launch-partnership-to-bring-instant-delivery-of-thousands-of-high-quality-products-to-uk-customers/
https://www.retail-week.com/grocery/deliveroo-targets-rapid-grocery-market-with-launch-of-hop-with-morrisons/7040706.article?authent=1; https://diacorporate.com/en/dia-joins-forces-with-uber-eats-to-expand-its-online-
sales/; https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-and-uber-to-drive-delivery-growth-with-global-strategic-partnership.html; https://www-lebensmittelzeitung- © 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 19
net.translate.goog/handel/online-handel/expansion-grovy-und-kaufland-setzen-auf-e-food-in-osteuropa-163768?crefresh=1&_x_tr_sl=de&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc;
https://www.businesswire.com/news/home/20190716005906/en/Carrefour-and-Glovo-sign-a-strategic-partnership-in-four-countries-in-order-to-offer-30-minute-grocery-home-delivery-services
Image Source: Google imagesQuick Commerce & Private Labels:
Niche Today But One to Watch? Quick
Commerce
Emerging
Retailers x Quick Commerce Players
• On-demand Convenience Quick Commerce Players x Private Labels
• ‘Need it now’ & Impulse Purchases • Higher Margins
• Online Penetration & Use of Apps • Bypass Brands & Distributors
• Grocery focus • Food & Non-Food range
41% 40%
25% 25%
Savoury Snacks Sweet Snacks
Online Quick Commerce
• Growing networks of Dark Stores
• Acquisition Targets
In last 3 months, 25% of consumers
• Blurred models & players
surveyed, used Quick Commerce for
Sweet & Savoury Snacks
• Low Margins
Source: IRI “Private Labels: Hiding In Plain Sight”; Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 20It is Increasingly Important to Partner With
Quick
Quick Commerce Companies and Target Commerce
Emerging
Snacking Occasion Communications
EXISTING EMERGING
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 21In the U.S., We Have Witnessed Expansion of Self-Checkout and Other
Transaction Types Change the Merchandising Environment Dramatically
Impulse
Redefined
Large Order
Small Order Self-Checkout
Self-Checkout
Cashiered Lanes Convertible Lanes
Click & Collect
Self-Checkout Corral Grab & Go Area
Mobile Scan & Go
Source: Impulse Marketing
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 22The Changes with Front Ends Have and Will Continue to
Evolve The Type of Products Consumer will Find
Impulse
Redefined
UK
Healthier Items (HFSS legislation)
• Banning all multi-buys and promotions Sharing sizes –indulgent
from front of store and aisle ends and permissible indulgent
• Calculation to determine HFSS and healthier – recently
• Product reformulation with facing out-ot-stocks
fruit/veggies/nuts
• Reducing sugar and fat
Healthier Items: dried
fruits, healthy snacks
Potentially delayed (currently planned for
October 2022) to minimise already-felt geo-
political supply issues and inflation
Source: https://www.thegrocer.co.uk/health/walkers-launches-its-first-non-hfss-crisps-range-with-half-the-salt/665523.article; https://www.thegrocer.co.uk/health/nestle-to-slash-cereals-sugar-and-salt-in-non-hfss-
reformulation/660600.article#:~:text=Nestl%C3%A9%20is%20slashing%20sugar%20and,Cookie%20Crisp%20and%20Golden%20Nuggets.; https://www.thegrocer.co.uk/store-design/four-hfss-layout-trials-underway-in-uk-stores-/666390.articl; Image
Source: Google Images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 23Another Part of the Snacking Convenience
Paradigm is the Fact That Redefined
Convenience has Been Redefined
51
of US Consumers Are Looking
for Snacks That Can Be Eaten
On-The-Go
• On-the-Go doesn’t mean Out-of-the-House
anymore With Hybrid Working Models, More
Consumers Eating Snacks at Home
• In-home convenience is trending in the US
Source: 2022 IRI Snacking Survey – Top 2 Box
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 24We Have Witnessed a Variety of Packaging Changes Including Increased
Resealable Pouches and a Movement Away From Plastic Convenience
Redefined
Boxes Reformatted packaging includes
moving to resealable capability. 2021. NZ
Resealable Made product
Resealable Chocolate Pouches
Resealable across
Italian products in resealable bags in many categories Snacks in
other categories not booming including snacks Glass Jars
Opposite trend: Moving away from Mother Earth’s - 20% less plastic
plastic and put it into paper/cardboard packaging – and the change will result
boxes for sustainability reasons in a saving of 9 tonnes of plastic per
year
Source: www.Pinterest.com; Cadbury Packaging; https://ilovefoodco.com/our-story
Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 25Convenience
Redefined
Many Countries Have of consumers look for variety packs when
Seen Multi/Variety Packs selecting snacks
Being Fan Favorites of consumers buy them to have more options for
These Days for Several snacking
Reasons of consumers say they buy them, so members of
their family get the snack they want
state they are a more affordable option
state they provide portion control options
Source: 2022 IRI Snacking Survey – Top 2 Box - IRI MULO+C – $ % Chg vs YA - 52 Weeks Ending 12/26/2021
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 26Experiential
Influencers
Experiential
Influencers
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 27There are Many Influencers of Snacking Around the World, and Consumers are
Looking for Snack Products With More Than One Benefit Across Many Factors
Evolved Holistic Flavors
Sustainability Health
Local Social Social/Digital
Credentials Influencers Communications
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 28Sustainably Marketed Products are Important to Sustainability
Consumers and in Snacking, the Trends Cross the Gamut
Sustainable and Fair chocolates up in Germany
GEPA Jokolade Tony’s Chocolonely Chocolates Halba
Fairtrade 100% Slave Free Chocolate Traceable bean origin Tree planting tied to SHARE brand, cross
Sustainable packaging 100% child labor free 100% Slave Free purchases category, helping those in need
Manufacturers seek to achieve Fairtrade certified or become a
Rainforest Alliance Certified which supports the three pillars of sustainability:
Certified B Corporation. Fairtrade product value growth is
social, economic, and environmental.
outperforming grocery. Also, 100% Slave Free increasing.
€ Sales Increase single and double digit
Image Source: Google images; https://share.eu/en/
https://www.whittakers.co.nz/en_WW/good-honest-chocolate/ingredients/rainforest-alliance/
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 29Packaging Trend Towards More Economically Friendly
Sustainability
Examples include plastic waste reduction by using paper packaging
instead, using innovative packaging like grass paper etc.
Ferrero Rocher: “The use
of these new containers
will save approximately Chobani Australia launches
Higher barrier compostable
2,000 tons of plastic new yogurt in partnership with
packaging - Very popular NZ
worldwide in its first year” Foodbank to help fight food
chip brand
insecurity across Australia
New Dole Bobby Banana
Pasta and Frozen Premium Smarties wins the Packaging packaging saves plastic
Aldi Easter Europe Sustainability Award from landfill
segment leaders are Now for Paper Packaging
Packaged Completely in Paper Eggs are
Now
Ritter Sport
Packaged minis
Coca Cola Completely available in
removed Plastic in Paper paper
from packs pouches
Give The Planet A Break:
Move to Paper: Meiji & Morinaga Seika which is Japanese leading company of snack switches to Kitkat Changes Packaging
Cadbury Shifts To
FSC-Certified Paper* for packaging. *An international initiative to deliver timber harvested from well-
Recycled Packaging
managed forests to consumers and return the resulting profits to producers
Source: Google Images; Article links in Appendix A
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 30In 2020, Majority of Countries Realized Chocolate Growth – 2021
Presented a Different Picture But Treating is Still Winning in Many
Value (€,$, etc.) Units
+10% +3% +9% +4% +6% +4% +0.8% +2% +0.7% +2% 0%
+0.9% -1% -2% -2% -0.1% -2% -1% -6% -2% -4%
Select Countries and Categories Definitions May Not Match 100%
Source: INTAGE Inc.and IRI - All IRI POS Data is Full Year 2021; Spain does not include: Christmas & Festives Products;
Germany, Italy, New Zealand do not include Seasonal Confection; UK incudes Countlines
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 31Sugar Confections (Non-Chocolate) are Winning In the Majority of
Countries Proving Flavors, Forms, and Fun Are a Global Phenomenon
Value (€,$, etc.) Units
+12% +8% +7% +8% +7% +4% +6% +1% +5% +3%
+5% +3% +5% +5% +4% +3% +4% +2% +2% -4% -3%
Select Countries and Categories Definitions May Not Match 100% - Includes Mints But Does Not Include Gum
Source: INTAGE Inc.and IRI - All IRI POS Data is Full Year 2021; Spain does not include: Christmas & Festives Products; Germany, Italy, New Zealand do not
include Seasonal Confection; Netherlands incl Liquorice but no mint throat
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 32Even Aisles Innovations are Influencing the Way Some
Sustainability
Consumers Choose Their Snacks
Adsa Branded Refill and Long-life Packaging
Seeing shelf
ready
packaging
Co-op Refills real estate
leading with
sustainability
Tesco Loop -Shoppers can
now return all their soft plastic
packaging to recycling points at
every large Tesco store in the UK
Image Source: Google images; https://corporate.asda.com/newsroom/2021/06/16/asda-to-rollout-refill-zones-to-more-stores; https://www.tesco.com/groceries/en-
GB/zone/loop; https://www.retailgazette.co.uk/blog/2021/07/central-england-co-op-extends-refill-trial-to-include-non-food-products/
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 33Store Innovations are Influencing the Sustainability
Way Some Consumers Choose Their Snacks
Fill and refill pantry and household goods without
wasteful and unnecessary packaging
Retailer in the Netherlands providing all
Every purchase made in store or online products in a jar with a waiting list for additional
contributes to planting native New consumers
Zealand trees
Image Source: Google images; https://goodfor.co.nz/pages/about
; https://www.pieter-pot.nl/collections/snacks
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 34Food Waste is Emerging as Ingredients in Snacking Sustainability
Another Twist: work The Odd Bunch uses more produce
with farmers that from local growers and make healthy
recycle their food more affordable.
agricultural waste
Upcycled Project takes the
wasted grain product from beer-
Upcycled Imperfect making and turns it into crackers
fruit & vegetables
used to make snacks
Morinaga Seika has launched a new snack made from surplus
strawberries from a canceled strawberry picking event
EMERGING EXISTING NOT YET
Different Twist: use the
surplus of fruits when
Other initiatives to reduce restaurants were closed
food waste, e.g. "too good during Spring 2020
to go" or "often still good"
campaign to use
Image Source: Google images; Source: https://www.danone.com/stories/articles-list/importance-reducing-food-waste.html; https://www.foodnavigator.com/Article/2020/02/19/Food-waste-Lidl-introduces-I-m-still-good-box-scheme-
in-Germany#:~:text=Lidl%20Germany%20is%20introducing%20a,in%203%2C200%20stores%20across%20Germany.; https://upcycledgrainproject.com/; https://lovefoodhatewaste.co.nz/introducing-the-odd-bunch/
https://www.glico.com/jp/newscenter/pressrelease/32317/
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 35Evolved Holistic
Health
of New Zealand Consumers believe
64% food can be as powerful as medicine
of US consumers want snacks
51% with additional health benefits
beyond nutrition (eg, antioxidants)
Source: 2021 NZ State of the Industry : Driving FMCG Growth In A Border Impacted Economy; Source: 2022 IRI Snacking Survey
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 36Evolved Holistic
Health
Catering to Dietary Requirements Is Fuelling Growth
Cauliflower frozen meals & snacks
++
“I buy snacks to 25% of Kiwis are seeking low or no sugar options
support the diet I follow 14% follow high protein, low carb diets
(e.g., Keto, Halal, etc.)” 21% free-from diet (dairy, processed foods, grains, gluten)
Source: IRI MarketEdge Grocery, New Zealand, *Data MAT to 18/07/21 IRI State of the Industry Household Shopper Survey
Oct 2021, Powered by Dynata; IRI US – 2022 IRI Snacking Survey - . Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 37A Trend With Traction in the US is Zero or Evolved Holistic
Health
No Sugar and We Project This Will Expand
EMERGING EXISTING NOT YET
Germany claims are rather: no
added sugar (but has
sugar/carbohydrates naturally,
e.g. in flour ingredient)
Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 38From a Functional Standpoint, Protein/Energy Evolved Holistic
Health
Claims & Ingredients are Snack Fan Favorites
Trend is strong in dairy (good Yoghurts and desserts with high
Trend is strong in dairy with
compromise between health & pleasure) growth in high protein ranges
most key brands offering
and products for athletes. Italy’s Black
protein options
Packaging is Non-Gender Focused.
Big growth in retail
Arrives in the supermarkets in Italy
Source: https://hipro.danone.fr/produits/: France: Average from 14 months - +/- based on dollar trend;; https://www.ehrmann.de/produkte/; ; https://www.yfood.eu; https://www.foodspring.de/en
Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 39In Several Countries, We Have Seen the Protein Evolved Holistic
Health
Offer Widening
Trend is strong for stating protein
grams on the front of package
Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 40Plant-based Snacks Do Not Appeal to the Masses Yet Evolved Holistic
Health
But Are Gaining Penetration and Increasing Sales
Limited in France, but the
combination of plant based
+ pleasure on dairy is
working well
of US consumers
10%
Morinaga Seika - "Macrobi-ha“ These
Look for Plant Based snacks usually or always bite-sized cookies are made with only
11 carefully selected ingredients.
28% Sometimes
Source: IRI US Survey of 1127 Primary Grocery Shoppers in National Consumer Panel – March 2022; https://supermarketnews.co.nz/whats-new/the-new-way-to-eat-ice-cream/;
https://www.morinaga.co.jp/products/detail.php?id=PRD2013-08-0001; https://www.andros.fr
Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 41Consumers are Willing to Spend More for Plant-based, Evolved Holistic
Health
BFY* Foods
Plant BFY*
Based 28% 34 % Food &
Food Drinks
expect to spend more In U.S. expect to spend more
on plant-based foods on F&B that’s ‘better for you’
55% in India 56% in India
72% in India
39%ininChina
63% China& Mexico 31% in Italy & Spain
26% in Eurozone
45% in USA 26% in Eurozone
25%ininEurozone
37% USA 25% in France & Germany
19%ininNZ
24% France
& Russia 18% in UK
15% in Australia 11% in New Zealand
IRI International ‘Black Swan’ survey in 12 countries, Nov ’21; n=3000 European markets: France, Germany, Italy, Spain & The United Kingdom; Other markets: USA, Mexico, Russia, India, China, Australia, New Zealand
* ‘BFY’ or Better for You includes functional food & drinks such as high-protein, vitamin fortified, or those supporting immunity & gut health. Does not include powdered food supplements; Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 42Immunity & Gut Health are Opportunity Areas to Expand Evolved Holistic
Across Countries – Some Already in Snacks While Other Health
Countries Have Seen in Other Categories
Other Categories:
Tropicana has launched 3 ranges :
Pockets of Growth via vitality / vitamines power /
Fiber + in France
Probiotics
Other Categories:
Source: https://www.littleelephant.co/.; https://tropicana.fr/nos-essentiels
Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 43Consumers Turn to Snacks for Excitement and Experiences Flavors
and Don’t Want to Give Up on Taste & Flavors
look for authentic or unique snack
47% experiences
of US Consumers eat snacks that add
51% excitement to my daily diet
% of US Consumers eat snacks that
88 have the flavor they prefer
Source: 2022 IRI Snacking Survey – Top 2 Box
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 44Flavors are Part of the Enjoyment and Experience With Flavors
Snacks and Favorites Actually Cross the Spectrum of Sweet …
SALTED CARAMEL
HONEY FRUIT
COCOA UP OVER TIME – UP TO 100% CARAMILK
ICE CREAM PARLORS AND PREMIUM
COLLABORATION
SALTED CARAMEL
BLOOD ORANGE/ORANGE
STRAWBERRY
OLD TIME FAVORITES
MIXED BERRY
HYBRID FLAVORS/COLLABORATIONS
CARAMILK
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 45Flavors
and Savory, Mixing Sweet and
Savory, and Hot & Spicy!
Mixing
Savory Sweet & Savory
SALT & PEPPER – GERMANY CHILI IN CHOCOLATE –
NATURAL – SPAIN GERMANY
(Mexifoods Nacho) SALTED CARAMEL
Menu-Influenced Hotter
SMOKED SCORPION PEPPER
ARTICHOKE DEATH REAPER (MEAT SNACKS)
GARLIC & HERB SCORCHEN’
JALAPENO SPICY SESAME GINGER
COTTON CANDY FLAMIN’ HOT QUESO
PINEAPPLE ANCHO CHILE
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 46Pride of Country is Resonating and Local
Credentials
Could Be a Candidate for Expansion
+ + +
https://www.brets.fr/; Bret's chips: "The manufacturer is located in Brittany and as part of its citizen promise they claim to guarantee employment in Brittany“; https://simplynuts.com.au/
https://www.arnotts.com/products/tim-tam/crafted-collection/Murray-river-salted-caramel; https://redrockdeli.com.au/our-products/gourmet-crackers-detail/gourmet-crackers/pink-salt-black-pepper
Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 47Social
With Social & Digital Media, Influencers are Influencers
More Common Across Snacking Than Ever Before
Chocolate: Jokolade brand – German TV Star as
influencer to make chocolate more sustainable and fair
(Joko Winterscheidt) Fairtrade, Sustainability
Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 48Social
Snackmasters TV Show Expanding It’s Influence Influencers
Based on the UK version, Snackmasters is a "cooking challenge
like no other". Each week two famous chefs compete to make
perfect replicas of well-known snacks.
Source: https://www.imdb.com/title/tt16223844
; Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 49Instagram is Being Leveraged to Share Social/Digital
Communications
News Like Two Iconic Brands From Each
Side Of The Tasman Coming Together
Source: IRI Australia and New Zealand - https://www.instagram.com/stories/highlights/17852701808187684/
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 50Social/Digital
Communications
New Tim Tam Flavours,
Featured Real Ingredients
Sourced From Divine
Locations Across Australia
& New Zealand
Source: IRI Australia and New Zealand - https://www.instagram.com/stories/highlights/17864949161524434/
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 51Social/Digital
Communications
#caughtsnackin and
Other Hashtags Also
Influence Snacking
Source: IRI - https://www.tiktok.com/@caughtsnackin?lang=en
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 52Social/Digital
In Australia, Caramilk is the Trending Cult Flavour Communications
What cult product could be in your vaults?
Total Sub-
Brand:
+170%
+$46M
1
TOP
shelf stable growth
+$8M brand
(in 8 weeks)
Source: IRI MarketEdge Grocery Scan To 04/07/2021 and Convenience Scan To Convenience Scan To 25/07/21; delish.com
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 53In Addition to Overcoming the Economic Impact, the Ice Cream
Industry Needs to Find Ways to Engage and Excite Consumers
Value (€,$, etc.) Units
+5% +2% +3% +3% +3% +4% +3% +3% -0.1% -1% -0.6% -3%
-0.7% -2% -2% -1% -2% -6% -5% -7% -7%
Select Countries and Categories Definitions May Not Match 100%
Source: INTAGE Inc.and IRI - All IRI POS Data is Full Year 2021
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 54Although Yogurt is Not a Snacking Category in All Countries Today –
Could It Be??
Value (€,$, etc.) Units
+11% +0.9% +4% +1% +3% +4% +2% +0.1% +2% +3%
+0.3% +0.2% 0% -2% -1% -0.9% -4% -4%
Select Countries and Categories Definitions May Not Match 100%
Source: INTAGE Inc.and IRI - All IRI POS Data is Full Year 2021
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 55Social/Digital
Communications
Communicating Engaging Snack Ideas is Key and Media Activated With
Loyalty/Purchase Behavior-Based Audiences Achieves Stronger Sales Lift
Purchase-Based It Also Receives at Least a
Household-
level 20% Higher Return on
Behavioral transaction
data collected
passively
Purchase through Advertising Spend (ROAS)
propensity loyalty cards
data collected
Contextual by surveys,
search Than Media Activated
Online history, etc.
behavior data
(clicks, views) Through Other Channels
Demographic collected by
cookies
Life-stage data
collected by
the census
Traditional Good Better Best
Source: IRI Lifestyle Verified Audiences
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 56Evolving Consumer Segments © 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 57
With the World Landscape Changing, Including Refugees from Ukraine, Opportunities Exist to
Evaluate Consumer Segments More Often to Effectively Sharpen Activation & Execution
Identifying Target Segments Enrich Segments & Track Sharpen Retail Activation
Build & Quantify Target Segments Combine models from purchase • Target precisely based on required objectives
• Execute effectively
using Loyalty data & advanced behaviours, Life stage, CLV & Brand
• Adjust & Experiment
Clustering techniques
Segment Category Cat-Brand- Lifestage Age Postcode Preferred
ID* & Purchase Price Area Media /
A B Behaviour Purchase Channel C
Penetration AAA* Eco Cat-H Family 35 RG12 Mumsnet
& Loyalty Evangelist Brand M with
Baby
+ Retailer
Media
BBB* Blended Cat-H Family 45 OX1 Online
Family Brand-L with Promos
Teens
CCC Grey Cat-L Senior 65 HP21 In-store,
Adventurer Brand M living Search
Price-Prem alone
Drive Total Market Activation
DDD* Sensory Cat-H Single, 35 SW1 Instagram
Epicure Brand-XL Couple Online
Price Prem Apps
Build engagement with target consumers
EEE* Promo
Hunter
Cat-L
Brand-K
Young
Couple
25 EW10 Search,
Social
based on Trial, Purchase, Life stage &
Category Price Low Commerc Behavioural data, Needs/benefits to build
Behavioural e D
cohorts for traditional & digital activation
Segments FFF Modern Cat-H Couple, 30 LD1 Search
Explorer Brand-M Single
Overlay Loyalty data or other relevant data sources (apps)
Life stage & CLV
* Segments do not contain personal or identifiable information and meet strict privacy rules
Source: IRI UK – An Imperfect Inflation; Some analytics & activations will be subject to retailer permissions
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 58For Example, Leveraging The US Online Shopper Segmentation, We Identified an Opportunity to
Target the E-Shopping Enthusiasts for All Segments of Candy to Increase Sales in 2022 and Beyond
percentage of e-commerce
of population candy
E-Shopping Enthusiasts % of Candy Purchasing in E-Commerce Channel
of non-seasonal chocolate
of seasonal chocolate
of non-seasonal non-chocolate
of seasonal non-chocolate
Source: IRI Consumer Network Panel 52 w.e. 12/26/21 E-ShopperLink Segmentation – E-Shopping Enthusiasts % of E-commerce Sales
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 59The Rise of the Single-Person Households
Will Add Complexity to Consumer Segmentations
Outpacing the growth of any other household type
worldwide, the number of single-person households is
expected to rise by 120 million by 2030.
16 million+ people who live alone in the US are
between the ages of 35 and 64.
59% of households in Sweden have only one
member.
This trend drives a need for smaller, more
sustainable packaging as well monitoring
segments more often.
Source: https://www.upm.com/news-and-stories/articles/2020/03/the-power-of-one/#:~:text=Since%202001%2C%20the%20number%20of,18%25%20of%20total%20households%20globally;
Paul Spoonley: Sociologist and author of ‘The New New Zealand. Facing demographic disruption.’
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 60Agile
Innovation
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 61In Addition to the Innovations We Have Already Shared, There are More Across the
World Including Brand Extensions, Sustainability, and Influencers
Examples Include
Influencers Crossovers Ingredients
Spain
Spain: Deli into Snacking
Reduced Carbon Emissions
Spain
Source: Google Images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 62Innovations Offering More than One Benefit Are Attracting Snack Shoppers
Examples Include
Benefit-based Cause-based
Italy
Co-branding for
the ‘greater good’
= partnerships of
France the future
Community focused
partnerships
= sustainability
differentiation
Source: Google Images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 63As We Look at Trends to Watch, We Find That
Some May Also Infuse Fun to Expand Occasions
and Benefits
CBD
MULTI-PACK COLLABORATIONS
& CO-PROMOTION
ENGAGEMENT LTOs NEW
SEASONS
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 64Additional Trends to Watch
Expansion of
Upcycling;
Edible
e.g., leftovers
Packaging Traceable
Fruits and
Vegetables
Meat Snacks
Expansion
Seaweed packaging innovation
Across
(B’ZEOS – Norway-based material Countries
science company)
Leading New Zealand brand with Vegan option,
Kombucha flavour and less sugar
Source: IRI Italy ;IRI Germany; IRI Norway; IRI New Zealand; https://www.ft.com/content/5d4fbb94-ec9d-4d3f-a3e4-e3b0a5652c13. Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 65Lastly, Keep an Eye on Meal Kits & Shoppable Recipes Includes Treats, Desserts
and Snacks for Potential Inclusion and/or Inspiration
Fresh Quality Retention
Variety Repeat Orders
Food Waste Grow Demand
Lifestyle Profitability
Convenience Consolidation
Consumption Data Funding
Covid Effect
New Route-to-Market
20% growth Higher-Income Consumer Segment
Vegan, Gluten-Free, Plant-based
Innovation
Lower Cost-Of-Sales
Enrich Brand Equity
Omnichannel Impact
Vegan
Gluten-Free Competition
Dairy-Free
Margin Growth from
Meal Add-Ons
Read-To-Heat Ingredients
IRI PRIVATE LABELS: HIDING IN PLAIN SIGHT; Image Source: Google images
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 66Action
Items for
Consideration
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 67Shelf The Snacking Experiential
Sensitivities Paradigm Influencers
To keep consumer demand strong for snacking • Ensure channel strategies include quick commerce Continually monitor and track was is resonating with
within the economic environment, CPG and • Invest in Omnichannel assortments by monitoring consumers during these trying times:
retailers should and measure channel dynamics and ensure • Consumers are looking for snack products with more
• Monitor and action against price incrementality vs. cannibalization than one benefit across sustainability and holistic health
sensitivities
• Continue to invest to be top of list with online search – make sure you communicate your products benefits
• Leverage out of stock information to
proactively manage in stock availability and • Focus on daypart targeting, especially late night in • Leverage flavors to drive excitement and potentially cult
assess competitive risk key areas, within convenience/petro channel status
• Work to drive one more trip per buyer • Lean into value channels to ensure sufficient variety • Utilize social & digital communications to engage with
of offerings in those stores different consumer segments with quick hit and action-
• Leverage digital/social for Quick Commerce actions oriented ideas
and target consumers looking for benefits and
• Consider the snacking influencers that align with your
claims
product’s values and connect with consumers
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 68Evolving Consumer Agile
Segments Innovation
• Find creative ways to differentiate your product and interact • Monitor eating landscape and trends to identify new sales opportunities
differently with target consumers • Learn from cultural trends and insights about what consumers are missing in
• Ensure portfolio has options for different segments and their their lives and creating new products or services to solve this
approach for snacking • Customize innovation to appeal across the segments and/or household sizes
• Determine the most efficient and effective way to engage with your for established brands and/or breakthrough innovation
target consumers along the complex path-to-purchase • Embrace fastest growing trends in quick commerce
• Identify personalization to key consumers via loyalty/FSP • Keep ingredients simple & communicate on package expertise focused on
programs and other targeting methods to deliver tailored shopping innovation, marketing, advertising and targeting
experiences
• Headwinds suggest that agility is needed to adjust to the ever-changing
• Leverage targeting best-in-class methodologies like purchase- consumer needs, as well as, exploring quality-rich alternative ingredients if core
based audiences to drive awareness and purchasing ingredients remain in limited supply
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 69thank you
Sally Lyons Wyatt
Sally.LyonsWyatt@IRIworldwide.com
Follow IRI on Twitter: @IRIworldwide
IRI Global Headquarters
203 N. LaSalle St., Suite 1500
Chicago, IL 60601
IRI@IRIworldwide.com
+1 312.726.1221
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 70© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 71
Bars Have Rebounded in Many Countries Due to Mobility, Versatility and Variety of the Category –
We will Monitor Declining Countries for Delayed Rebound
Value (€,$, etc.) Units
+14% +12% +12% +11% +11% +3% -6% -9% -2% -4%
+10% +6% +10% +9% +8% +3% -0.9% -0.2%
Select Countries
Source: INTAGE Inc.and IRI - All IRI POS Data is Full Year 2021
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 72After the Majority of Countries Posted Cookie Gains for both Values and
Units in 2020, the Category is Struggling with the Economy and Mobility
Value (€,$, etc.) Units
+5% +2% +5% -0.6% +0.8% +0.8% -1% +0.4% -2%
+0.1% -4% -0.3% -2% -3% -6% -1% -2% -1% -4% -6% -4%
Select Countries and Categories Definitions May Not Match 100%
Source: INTAGE Inc.and IRI - All IRI POS Data is Full Year 2021
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 73Appendix A
https://www.interempresas.net/Envase/Articulos/367182-El-Grupo-Ferrero-presenta-una-nueva-caja-reciclable-para-su-iconica-gama-Ferrero-Rocher.html;
https://supermarketnews.co.nz/news/give-the-planet-a-break-kitkat-changes-packaging;
https://www.progressivepr.com.au/news-items/2022-Chobani;
foodbankpartnership#:~:text=Australia's%20%231%20yogurt%20brand*%2C,for%20vulnerable%20people%20across%20Australia;
https://shitte-erabo.net/fscproducts/story/7016/;
https://www.morinaga.co.jp/company/sustainability/environment/package.html; https://www.pepsico.co.uk/news/stories/doritos-stax-a-bold-new-product-in-recyclable-packaging;
https://www.trendhunter.com/trends/aldi-easter
eggs#:~:text=Aldi%20Easter%20Eggs%20are%20Now%20Packaged%20Completely%20in%20Paper&text=The%20eggs%20no%20longer%20feature,plastic%2C%20according%20to%2
0the%20brand
https://www.packaging-360.com/en/confectionary/nestle-wins-sustainability-award-with-smarties/;https://packagingeurope.com/a-closer-look-at-ritter-sports-mini-mix-paper-pouch-
packaging/5881.article; https://www.fmcgbusiness.co.nz/new-dole-bobby-banana-packaging-saves-plastic-from-landfill/; https://supermarketnews.co.nz/news/cadbury-milk-chocolate-
shifts-to-recycled-packaging/
https://www.econicpack.com/; https://www.nestle.co.nz/media/kiwis-give-the-planet-a-
break#:~:text=To%20encourage%20and%20educate%20Kiwis,at%20participating%20stores%20and%20supermarketsImage
© 2022 Information Resources Inc. (IRI). Confidential and Proprietary. 74You can also read
