1. Snacking beyond the snacking aisle
how to take a bite out of Canada’s snacking demand
Carman Allison - VP Consumer Insights, Nielsen
@CarmAllison

2. Meet your presenter
Carman Allison
VP Consumer Insights
Nielsen

3. JOIN TODAY’S CONVERSATION
@Nielsen
@CarmAllison

4. The Challenge for growth

5. Let’s set the stage Canadian CPG Dollar Sales Unit Sales
Trips per Shopper
Source: Nielsen MarketTrack, National All Channels – YTD 40 weeks to September 20, Total Tracked Sales excluding Fresh Random Weight
Homescan Grocery Composite 52 weeks ending September 27, 2014

6. How do we define Snacks today?
$4.9 Billion
+4% Dollar growth
SNACKS
+2% KG growth
Source: Nielsen MarketTrack, National All Channels + G&G – 52 weeks Ending October

7. lifestyles are redefining HOW WE EAT
ON THE GO
PORTABILITY
HEALTH
CONVENIENCE
EASE OF USE
VARIETY

8. “
The average consumer enjoys 12 different types of snacks in a 30-day period ”
…out of the 47 snacks surveyed
Source: Nielsen Global Survey – Canada Q1 2014

9. RETHINKING WHAT “snackING” MEANS
…REDEFINED
Source: Nielsen Global Survey – Q1 2014

10. Potential Opportunity
If we expand snack to reflect ‘snacking’ the market potential increases 2.5 times
Potential Opportunity
$12.6
Traditional Snack
Definition
Billion +3%
$4.9
2.5 x
Billion +4%
Source: Nielsen MarketTrack, National All Channels + C&G - 52 week periods ending September 20, 2014

11. Audience Poll Which is your favourite type of snack? Sweet Tooth
Salty Please
Either works for me!

12. While the majority have a preference, 1 in 5 consumers prefers either
60%
SWEET
59%
SALTY
19%
Source: Nielsen Global Survey – Q1 2014

13. Opportunities across the snacking spectrum
Source: Nielsen MarketTrack, National All Channels + C&G - 52 week periods ending September 20, 2014

14. What’s trending in snacking?
TOP - GROWTH % CHG
TOP 5 SNACKING CATEGORIES ($M)
Fruit & Nuts
Candied Snacks
Meat Sticks
Dry Fruit
Chips, Corn Snacks
+31%
+16%
+7%
+6%
+5%
Potato Chips, Corn Snacks
$1, %
Prepack Cheese
$1, %
Chocolate
$1, %
Baked Desserts
$ %
Yogurt
$1, %
BOTTOM - GROWTH % CHG
RTE Gelatin
Frz Water Confect
Puffed Cakes
-9%
-7%
-6%
-4%
Marsh. Treats
Puddings
Source: Nielsen MarketTrack, National All Channels +C&G – 52 weeks Ending September 20, 2014

15. What do consumers have to say about snacking?
Global: 60 Countries (30,535 individuals)
Canada: 503 individuals

16. North Americans are chip-o-holics!
Top 5 snacks consumed #1
64% Chips
63% Chips
64% Chocolate
63% Fruit
59% Chocolate
62% Fruit
63% Cheese
58% Cheese
52% Vegetables
63% Chocolate
56% Cookies
51% Cookies
58% Cookies
54% Fruit
50% Yogurt
Source: Nielsen Global Survey – Q1 2014

17. chips, chocolate and fruit top the list for Canada's favourite snack
Top 5 favourite snacks #1
13% Chips
11% Chocolate
11% Fruit
13% Chocolate
11% Fruit
11% Chocolate
13% Fruit
9% Chips
9% Bread (Sandwich)
8% Cheese
7% Sandwich
7% Yogurt
7% Bread (Sandwich)
7% Cheese
7% Cheese
Source: Nielsen Global Survey – Q1 2014

18. Grocery stores remain the top destination for snack purchases
% who source their snacks sometimes or often
93%
56%
45%
44%
43%
GROCERY
STORES
MASS MERCH
DOLLAR
STORES
DRUG STORES
CONVENIENCE $1
MASS MERCH
Source: Nielsen Global Survey – Q – Canada

19. But despite the top destination for snack sales – grocery is losing share
Source: Nielsen Homescan Channel Facts Weeks Ending September 27, 2014 – Snack + Confections

20. Consumers who are fighting temptation may be giving in to promotions
48%
Only buy snacks
when on sale
36%
of CPG sales sold with a price cut +3
41%
of SNACKS
are sold with
a price cut +4
5% higher than average
Source: Nielsen Global Survey – Q1 2014
Nielsen MarketTrack, National GB+MM+DG - 52 week periods ending October 18, 2014

21. Why do Canadians snack? 86% 81% 79% 78% 62% ENJOYMENT CRAVING TREAT
HUNGER
BETWEEN
MEALS
ENJOYMENT
CRAVING
TREAT
NUTRITION
Source: Nielsen Global Survey – Q1 2014

22. 4 out of 10 Canadians snack as a meal REPLACEMENT
42%
Breakfast Alternative
43%
Lunch Alternative
34%
Dinner Alternative
Source: Nielsen Global Survey – Q1 2014

23. Snacking as a meal alternative
<35
<$30K
42%
Breakfast Alternative
44%
48%
48%
43%
Lunch Alternative
44%
47%
54%
34%
Dinner Alternative
38%
46%
50%
Source: Nielsen Global Survey – Q1 2014

24. “
Even though we love our chips, we also snack with sensible, balanced indulgence, and healthier alternatives ”

25. Snacking with a conscience
63%
Fruit
54%
50%
Nuts & Seeds
43%
50%
Vegetables
43%
51%
Yogurt
38%
42%
Granola Bars
35%
Source: Nielsen Global Survey – Q1 2014

26. Back-to-basics attributes
% who think it is important or very important
NATURAL FLAVOURS (65%)
NO ARTIFICIAL FLAVOURS (60%)
ALL NATURAL (60%)
GMO FREE (56%)
NO ARTIFICIAL COLOURS (60%)
CAFFEINE FREE (36%)
GLUTEN FREE (28%)
Source: Nielsen Global Survey – Q Canada

27. Health attributes are important to consumers
% who think it is important or very important
LESS IS MORE +
MORE IS MORE
LOW SALT/SODIUM (63%)
NO HIGH FRUCTOSE CORN SYRUP (59%)
PORTION CONTROL (58%)
LOW CALORIES (53%)
LOW SUGAR/SUGAR FREE (61%)
LOW FAT (52%)
LOW/NO CARBS (50%)
HIGH IN FIBRE (65%)
HIGH IN PROTEIN (61%)
WHOLE GRAIN (61%)
Source: Nielsen Global Survey – Q Canada

28. MORE THAN 1/3 want their snack ingredients to be local, organic and sourced sustainably
38%
44%
41%
SUSTAINABLY
SOURCED
LOCAL
ORGANIC
Source: Nielsen Global Survey – Q – Canada

29. Different snacks for different folks

30. Are generations divided by snacking?

31. The CPG growth engine will switch gears
By 2020…
MILLENNIALS
BOOMERS
+$12.5 B
+107%
-$4.3 B
-9%
Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years – Based on older generation spend

32. Which CPG departments are most commonly found in a millennial’s shopping basket?
Nielsen Homescan – Dollar Consumption Index – 52 wks to December 28, 2013 – Consumer Facts CPG Departments Relative Index (82 for total)

33. YOUNGER OLDER TOP 5 SNACKS consumed Vs. 65% Chocolate 70% Fruit
61% Chips
67% Cheese
59% Cookies
58% Chips
56% Bread
55% Nuts & Seeds
54% Cheese
55% Cookies
Source: Nielsen Global Survey – Q – Canada – Younger = 35 years, Older >55 years

34. YOUNGER OLDER Top 5 favourite snacks Vs. 14% Chips 13% Yogurt
13% Fruit
11% Fruit
13% Chocolate
10% Cheese
7% Bread (Sandwich)
9% Chips
7% Cheese
9% Nuts & Seeds
Source: Nielsen Global Survey – Q – Canada – Younger = 35 years, Older >55 years

35. Differences across generations
YOUNGER
OLDER
Snack as a Reward/ Mood Booster
(vs. 28% Older)
58%
Tend to snack for nutrition
(vs. 62% Younger)
66%
Snack as a Meal Replacement
(vs. 29% Older)
47%
Prefer Back-to-Basics snacking
(vs. 47% Younger)
52%
Source: Nielsen Global Survey – Q – Canada – Younger = 35 years, Older >55 years

36. Chick-flick versus action movie? What’s your snack of choice?

37. Male shoppers are often overlooked but account for 24% of primary shoppers
% of Households (>50% of Shopping)
24%
60%
16%
17% are male-only households
22% are female-only households
Source: Nielsen Panelviews June 2014

38. Ensure it’s easy for males to find what they need
Avg Basket Size
Avg Trips / Year
Shopping Opinions % Agree
I tend to buy only what I need when I go to the grocery store
$32.41
161
43%
54%
Given the opportunity, I like spending time browsing in the grocery or food store
$37.72
152
50%
60%
Source: Nielsen Homescan, National All Channels, Total Expenditures, 52 Weeks ending July 26, 2014; Nielsen Panelviews June 2014

39. Audience Poll – for females
Which do you think males snack on the most?
Chips
Cookies
Fruit
Chocolate
Cheese

40. Audience Poll – for Males
Which do you think females snack on the most?
Chips
Cookies
Fruit
Chocolate
Cheese

41. Females snack more than males
Top 5 snacks consumed
65% Chips
72% Fruit
61% Chocolate
69% Cheese
57% Cookies
65% Chocolate
57% Sandwich
64% Chips
56% Cheese
59% Cookies
Source: Nielsen Global Survey – Q Canada

42. males prefer salty and females sweet
Top 5 favourite snacks
15% Chips
15% Fruit
11% Fruit
15% Chocolate
10% Chocolate
11% Chips
9% Cheese
7% Cheese
8% Sandwich
7% Yogurt
Source: Nielsen Global Survey – Q Canada

43. Different snacking motivators
Prefer hot/spicy flavours
(vs. 33% Female)
43%
Snack as a stress reliever
(vs. 32% Male)
43%
Only buy snacks when on sale
(vs. 52% Female)
43%
“Less is more” when it comes to Snacking
(vs. 51% Male)
61%
Source: Nielsen Global Survey – Q Canada

44. LONG TERM OUTLOOK POSITIVE
GENERATIONAL SHIFTS
Millennials - Indulgence
Boomers - Health
CONSUMER DEMANDS
Variety
Innovation
Accessibility
Portability
Less is More
Meal Replacement
Growth from perimeter and centre of store

45. Canadians are changing the way we eat“
Busy, on-the-go lifestyles often dictate a need for quick meals, and many opt for fast food options that can be high in calories and low in health benefits.
There is a massive untapped opportunity to gain market share in the nutritious, portable and easy-to-eat meal alternative market that snack manufacturers could fill. ”
Susan Dunn,
EVP, Global Professional Services, Nielsen

46. Questions? Stay Connected to Consumer and Media Trends
For the latest insights, visit us at nielsen.com or contact us:
Phone:
Questions regarding the content of this presentation, contact:
Carman Allison,
@CarmAllison
You will receive a link to download this webinar within 48 hours
LinkedIn

47. Snacking segment definitions
Desserts
Baked Desserts
Jelly Powders
Puddings
Dessert Powders
Snack Puddings
RTE Gelatin
Refrigerated
Natural Cheese
Yogurt
Frozen
Ice Cream
Frozen Confections
Pizza Snacks
Frozen Yogurt
Water Based Confect.
Cookies & Crackers
Cookies
Crackers
Cookie Mixes
Confectionery
Chocolate
Candy Confections
NPF
Nutritious Portable Foods
Remaining
Popping Corn
Puffed Cakes
Candied Snacks
Marshmallow Treats
Dips
Salsa
Mexican Dips
Prepared Dips
Salty Snack
Meat Sticks
Jerky
Snack Foods
Fruit & Nuts
Snacking Nuts/Seeds
Fruit & Apple Sauce
Dry Fruit
Source: Nielsen Strategic Planner