1. www.gnpd.com Presented by: Lynn Dornblaser, Director, GNPD Consulting Services Future trends in grocery

2. www.gnpd.com Mintel’s tools for tracking global trends GNPD: tracking new products around the world Product retrieval: bringing products to your door Mintel Reports: understanding the “why” behind the trends

3. www.gnpd.com Today’s presentation A brief look at new product numbers 10 grocery trends for the next five years

4. www.gnpd.com Global food & nonfood introductions by region Strong increases in new product introductions in all regions, resulting in almost half a million new products in just four years.

5. www.gnpd.com US food & beverage introductions

6. www.gnpd.com 10 trends for the next five years The “G” word replaces the “C” word What do you mean, “good bacteria?” You’ve gotta have heart Doing a balancing act BB King, Mary Tyler Moore, Ron Santo You can’t eat it if you can’t open it Going beyond “dashboard dining” Just kidding Aromatherapy comes to food Dining for dollars (and profit)

7. www.gnpd.com The “G” word replaces the “C” word The “C” word: Carbs The “G” word: Glycemic Low-carb trend (always a US phenomenon), fades Other parts of the world look to low glycemic Can be difficult to understand, but can be simplified for consumers

8. www.gnpd.com Some of the latest low-carb entries in the USA Hormel’s fully cooked bacon; Kraft’s grated Parmesan cheese (with a South Beach Diet tie-in)

9. www.gnpd.com Low carb drops, low glycemic shows growth -36%* +614%* *Comparing November 2004 to December 2004

10. www.gnpd.com Low glycemic in confections and snacks Russell Stover Candies’ DiabetX candy line USA; Whitman’s Candies’ Sucratrol candy (indicates glycemic load), USA; The Food Doctor’s Food Bar line, UK

11. www.gnpd.com Low glycemic in other categories Valio’s A+ yogurt, Finland; Marks & Spencer’s Count on Us range with GI labelling, UK; Zenergy Beverages’ Play water for kids, Australia; Berri’s Fruitful Super Juice, Australia

12. www.gnpd.com What do you mean, “good bacteria?” Probiotics--big news in every country but US Trend started in Asia, now covers the globe Growing evidence of benefits to “gut health” Opportunities for US market, in both probiotics and prebiotics

13. www.gnpd.com New probiotic introductions Unilever’s Flora Pro-Activ cholesterol-reducing probiotic drink, UK; Maeil Dairy’s Probio GG Chlorella drinks, South Korea; Danone’s La Serenisima yogurt with cereal and fiber, Argentina

14. www.gnpd.com Danone introductions differ in US Danone’s Actimel (seen in most countries, but not in USA); Dannon’s DanActive, only sold in USA

15. www.gnpd.com Probiotics and prebiotics grow in many regions Kellogg’s Rice Krispies Muddles cereal, UK; Grupo Leche Pascual’s prebiotic drink, Italy

16. www.gnpd.com You’ve gotta have heart Incidence of heart disease continues to grow US Food Guide Pyramid should spur introductions High fiber, whole grain Reduced cholesterol, reduced sodium Heart-health benefits of antioxidants

17. www.gnpd.com Whole grains, high fiber grow Pema’s Fit for Fun whole grain bread range, Germany; General Mills’ Whole Grain Total, USA; Nestlé’s Lean Cuisine Spa line, USA

18. www.gnpd.com Cholesterol reduction appears in new areas Danone’s Danacol cholesterol-reducing drink, Europe; Emmi’s miniCol cholesterol-reducing cheese, Netherlands

19. www.gnpd.com Promoting benefits of antioxidants Ecco Bella’s Health by Chocolate chocolate beauty bar, USA; Masterfoods’ Cocoa Via chews and bars, USA

20. www.gnpd.com Doing a balancing act Concept of “balance” in the diet The “new” French food paradox Again, a trend that is growing outside the US Will we see the end of “supersize me?”

21. www.gnpd.com The latest non-diet diet plan?

22. www.gnpd.com Products promoting balance Campbell Soup’s Ignite meals, Canada; EAS’s Body for Life Balanced Nutrition Bar, USA; Kraft’s 100 Calorie Packs, USA; Nestle’s Milo chocolate drink, Asia Pacific

23. www.gnpd.com BB King, Mary Tyler Moore, Ron Santo One thing in common: diabetes Incidence of diabetes on the rise in the US Potentially staggering numbers of “pre-diabetics” Product development divides into those clearly for diabetics and those that are “under the radar”

24. www.gnpd.com Products for diabetics appear everywhere Express Foods’ Original Swiss Style Muesli, India; Biocentury’s Gluceminus sweetener, Portugal; Abbott Labs’ Glucerna snack bars, USA; Karwendel’s Exquisa diabetic yogurt, Hungary

25. www.gnpd.com You can’t eat it if you can’t open it Easy-open, easy use packaging--almost nonexistent in some categories Products and packaging geared for older consumers

26. www.gnpd.com Packaging for older consumers

27. www.gnpd.com Packaging with potential Danone de Mexico’s Danao juice & milk drink, Mexico; Hormel Chili in Tetra Recart package, USA; Wyeth’s Advil in an Easy-Open bottle

28. www.gnpd.com Going beyond “dashboard dining” How many people really do eat in the car? Is that really the next big opportunity? Real opportunity may be instead in more food and beverage that travels easily

29. www.gnpd.com News in portability Kellogg’s Drink ‘n Crunch cereal and milk, USA; Kimberly-Clark’s Kleenex tissues for automobile cup holders, USA and Philippines; Noberasco’s Frut & Go! Fruit snack, Italy

30. www.gnpd.com Kraft Philadelphia To Go bagel kit, USA; Kellogg Fjølk & Corn Flakes, Germany “Deskfast”

31. www.gnpd.com Lotte’s Coolish “ice cream to drink”, Japan; Friesland’s Go! yogurt-snack, Netherlands; Cadbury’s white soft chocolate in a squeezable tube, South Africa Products in pouches and sticks for snacking

32. www.gnpd.com Just kidding Products for kids often split into two: fun and healthy Why not both?

33. www.gnpd.com Unusual package forms for kids Ferrero’s Kinder Happy Time “dessert drink,” Europe; Brasfrigo pasta sauce for kids, Brazil

34. www.gnpd.com Interaction Procter & Gamble’s Pringles Prints crisps, USA; Fizzy Cie’s Twin Fizzy interactive drink, France

35. www.gnpd.com It’s food--of course it smells good! But there is so much more--language and scents of aromatherapy are moving into food and beverage Next wave of “mood foods”

36. www.gnpd.com Food “aromatherapy” The Food Doctor’s Unwind bar with chamomile, UK; Origins’ Sensory Therapy Chocolate bar with essential oils, USA; Nestlé’s Wellness Relax water, Germany

37. www.gnpd.com Dining for dollars (and profits) Do you know what’s going on on restaurant menus? Cutting edge ideas often appear here first, and can translate to CPG

38. www.gnpd.com A few restaurant trends to watch for Latin fruits (mango, papaya, etc.) increasingly appear on menus, especially in fine dining/upscale/gourmet restaurants Lavender as a flavor is beginning to appear as well--look for it in crème anglaise, vinaigrette, and infused honey used as meal components The world is getting spicier--all types of peppers appear more strongly on all types of restaurant menus Chipotle as a named flavor comes on strong, from mayonnaise and ranch dressing to tortillas and cream sauces Green tea moves from beverages to ice cream, main dishes, and salads

39. www.gnpd.com How to contact me: Lynn Dornblaser 312-932-0400 lynnd@mintel.com