How America Eats
SNACKING LIFESTYLES
ARE HERE TO STAY
Sally Lyons Wyatt, IRI
Executive Vice President, Practice Leader
April 14, 2020
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1
IRI is Cognizant That COVID-19 Has Had an Immediate Impact on Our Eating and
Drinking Rituals, as well as the Economy
• We have seen consumers go through weeks of cocoonstocking and may be changing their snacking habits in the
short-term
• Therefore, we are leveraging the insights from 2019 to inform:
– What trends occurred in 2019 that were set to impact 2020
and the future
– A “benchmark” for “Pre-COVID-19”
– Post-COVID-19 – we will leverage 2019 insights to
understand what trends consumers have continued vs
those not resonating, as well as, new trends that evolve
We are Committed to Monitoring and Providing Short and Longterm Implications with IRI’s 2020 Snacking Series – Dates TBD
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary.
2
Today’s Discussion
Snacking as a
Lifestyle
Consumer
Purchase
Dynamics
Trends Underlying
the Lifestyle
Snack Choice
Coronavirus
Snacking
Update
Snacking Future
and Act Now
Considerations
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary.
3
Stabilization of Snacking Frequency Throughout the Day
Younger Generations Snacking Making it the Norm
2.6
%
42
Average Number of
Snacks Consumed Daily
NC vs 2015
Snack 3+ Times
per Day
+1 pt vs 2015
Source: IRI Snacking Survey - 2020
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4
We are Seeing Shifts Between Afternoon and Early Morning,
However Snacking Still Occurs Across the day…It’s a Lifestyle
Afternoon
2010
2015
62%
2020
Morning
Evening
29%
55%
69%
31%
55%
51%
22%
Early Morning
22%
18%
7%
44%
24%
39% 39%
Late Evening
Source: IRI Snacking Surveys, 2010 – 2015 - 2020
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5
Many of These Decisions Are Made on Impulse and
Remember – Impulse is Both Traditional and On Demand
I don’t plan when I will eat
snacks during the day, I
just grab one as I need it
%
72
+5 pts
vs 2017
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6
Post COVID-19, Convenience will Continue to be a Theme with
Strong Preferences From Younger Generations and Hispanics
54%
61%
63%
60%
52%
look for snacks that
can be eaten in the
car or on-the-go
18 – 24 25 – 34 35 – 44 45 – 54
46%
57%
63%
54%
47%
of consumers often
eat snacks instead of
a meal because I am
on the go
18 – 24 25 – 34 35 – 44 45 – 54
Source: IRI Snacking Survey - 2020
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7
With Snacks Eaten Anywhere
I often eat snacks
instead of meals
at home
I often eat snacks
instead of meals
at work
%
44
%
44
vs 2017
vs 2017
+2 pts
+4 pts
Source: IRI Snacking Survey - 2020
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8
Being Driven by Younger Generations and Hispanics
44%
58%
52%
53%
42%
of consumers often
eat snacks instead of
meals at home
18 – 24 25 – 34 35 – 44 45 – 54
44%
often eat snacks
instead of meals
at work
58%
57%
57%
41%
18 – 24 25 – 34 35 – 44 45 – 54
Source: IRI Snacking Survey - 2020
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9
Price Matters and Will Be Critical to Success Going Forward
I look at the price before
choosing what to snack
%
72
+4 pts
vs 2017
Source: IRI Snacking Survey - 2020
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10
The Snacks That I Eat Taste Really Good
Taste is paramount
%
86
±0 pts
vs 2017
Source: IRI Snacking Survey - 2020
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11
CONSUMER
PURCHASE DYNAMICS
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12
In 2019, Core Snacking Categories Outpaced All Others
Total Store
Total Food
& Beverage
Total
Macrosnacking
Total Core
Total
Expanded
+2.3% +2.6% +2.3% +3.0% +0.6%
Source: IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
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13
However, Driven Mostly by Price Given Continued Flat Unit and Volume Sales
Dollar Sales
Unit Sales
Volume Sales
%Change vs YA
%Change vs YA
%Change vs YA
Total Macrosnacking
2.3%
-0.2%
1.4%
Total Core
3.0%
-0.4%
-0.3%
Total Expanded
0.6%
0.2%
2.4%
Source: IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
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14
Nine of the Top 10 Categories Grew Dollars but With Varied Unit Trends
$ % Chg
Unit % Chg
2.3% -0.8%
Chocolate Candy
3.6% 0.8%
Cookies
-0.8% -4.3%
0.1% -1.7%
Rfg Yogurt
Ice Cream
2.4% 0.1%
Potato Chips
4.7% 2.3%
Tortilla Chips
3.4% -0.2%
2.0% -0.9%
Non-chocolate Candy
Crackers
5.6% 2.3%
Frozen Novelties
7.0% 1.5%
Other Salted Snacks (no Nuts)
Source: IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
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15
Outside of the Top 10, These Categories Were Consumer Favorites in 2019
Driving Positive Change Across Dollars, Units and/or Volume
Cheese Snacks
Meat Snacks
Snack Produce
Pork Rinds
Rfg Dips
FZ Appetizers/Snack
Rolls
Shelf Stable
Yogurt/Yogurt Drinks
FZ Fruit
Source: IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
Frozen
Refrigerated
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16
We Need to Keep an eye on These Fan Favorites Since They had Positive % Change
for Dollars, Units and/or Volume Outside of the Other Categories Driving Growth
Rfg Snack
Cakes/Doughnuts
Rice/Popcorn Cakes
Apple Chips
Aerosol/\Squeezable
Cheese Spreads
Natural Cheese Cubes
FZ Cookies
Source: IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
Frozen
Refrigerated
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17
There were Even Increases Within Extended Categories
That Consumers Turn Towards for Snacking Options
FZ Pizza
RFG Fresh Soup
Rfg
Meat/Cheese/Cracker/
Dessert
RFG Ready-to-Drink Coffee
FZ Potatoes/Fries/Hashbrowns
Cappuccino/Iced Coffee
Cream Cheese/Cheese Spread
Muffins
SS & RFG Pickles
Frozen
Refrigerated
RFG Pizza/Pizza Kits
Source: IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO - positive dollars, units and/or volume change
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18
Sushi, Dips, Smoothies and Desserts Were Top Dollar Drivers in Core
Refrigerated Snacks Pointing Towards Consumers Quest for Balance
Source: IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
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19
For the Past
Couple Years, We
Have Shared Our
Macrosnacking
Segments
Wellness
Permissible
Indulgence
True
Indulgence
Treats
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20
For the Past
Couple Years, We
Have Shared Our
Macrosnacking
Segments
Wellness
Inherently
healthier
&/or
nutrition claims
Permissible
Indulgence
Products consumers feel
are more permissible
because they have less of
or added benefits to their
indulgent favorites
True
Indulgence
“Fully loaded” traditional
categories
Treats
Confections
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21
The Category
Breaks are Based
on Product Roles
And Attributes
Wellness
Snk and Granola Bars (GMO+ Claims)
Permissible
Indulgence
True
Indulgence
Treats
All Other Snk and Granola
Bars ( w/o GMO+ Claims)
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22
True Indulgence is Still Driving the Most Growth in Snacking but All Segments Are
Getting A Share of Consumers Wallets
$ % Chg
Unit % Chg
Wellness
28% 1.9%
True Indulgence
27% 4.8%
Permissible Indulgence 25% 3.1%
Treat
20% 2.4%
Source: IRI TSV - Total Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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23
Savory and Sweet is Hitting the Mark No Matter How You Look at the Segments
Wellness
Snack Produce
Dried Meat Snacks (with wellness claims)
Nutritional/Intrinsic Health Value Bars
Cheese Snacks (with wellness claims)
Rfg Appetizers/Snack Rolls (with wellness claims)
True Indulgence
Tortilla Chips (all other)
Other Salted Snacks (No Nuts) (all other)
Cookies (all other)
Ice Cream (all other)
Potato Chips (all other)
Permissible Indulgence
Cheese Snacks (all other)
Frozen Novelties (with permissible claims)
Cookies (with permissible claims)
Crackers (with permissible claims)
Dry Fruit Snacks (all other)
Treat
Chocolate Candy
Non-Chocolate Candy
Sugarless Gum
Breath Fresheners Sugar Free
Regular Gum (No Sugarless)
Source: IRI TSV - Total Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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24
Top Growth Items Across These Two Segments Shows That Informing Consumer with
Ingredient Grams (e.g., Protein) and Calories on the Front of the Package Works Well
Wellness
Permissible Indulgence
Source: IRI TSV - Total Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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25
TRENDS UNDERLYING THE
LIFESTYLE SNACK CHOICE
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26
Ingredient Phenomenon: Snacking with Wellbeing Benefits
Protein Sensations: It’s Not Good Enough to Just State Protein
Diet Frenzy: Options for Those Looking
Dynamic Omnichannel: Delivering Variety to Consumers
Innovating With Balanced Choices
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27
INGREDIENT PHENOMENON:
SNACKING WITH
WELLBING BENEFITS
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28
Getting Nutrients From Snacks Continues to be Important to the
Majority of Consumers
56%
60%
63%
54%
54%
of consumers want
snacks that contain
vitamins and
minerals
18 – 24 25 – 34 35 – 44 45 – 54
Source: IRI Snacking Survey - 2020
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29
Functional Benefits are Relevant for Some Consumers –
Digestion is one Focus Area With Pre/Probiotic Claim Snacks up 16%
38%
of consumers want
snacks containing
'probiotics' to help with
digestion, but even
more Millennials
37%
18 – 24
45%
47%
25 – 34
35 – 44
Source: IRI 2020 Snacking Survey and IRI Core TSV - 52 Weeks Ending 12/29/19 vs YAGO
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30
48% of Consumers Looking for Snack Products High in Fiber to Help With
Digestion and Turning to Products Like These for Their Functional Benefits
Source: IRI 2020 Snacking Survey and IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
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31
The Multiple Benefits of Collagen Drove a +46% Growth for
Snacks Like These
New Entrants
Source: IRI TSV– Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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32
While Gluten Free and Non-GMO are Still Resonating with Consumers
+2.5%
+1.3%
Source: IRI TSV –Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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33
Natural and Organic are Still in Demand
39%
42%
45%
49%
33%
Of consumers look
for Natural / Organic
18 – 24 25 – 34 35 – 44 45 – 54
Source: IRI 2020 Snacking Survey and IRI TSV - 52 Weeks Ending 12/29/19 vs YAGO
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34
47% of Consumers say They Want Snacks Low in Sugar
and We Found Sugar/Sweetener Claims Growing
Top Dollar Growth
Top Dollar % Change
OTHER SUGAR CLAIMS
LESS SUGAR
OTHER SWEETENER CLAIMS
LOW SUGAR
NATURALLY SWEETENED
NATURALLY SWEETENED
NATURAL SWEETENER CLAIMS
NATURAL SWEETENER CLAIMS
SUGAR CLAIMS NO/ LOW/ LESS
MADE WITH SUGAR
Source: IRI TSV– Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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35
Overall, We Have Seen a 4.9% Dollar Increase in Sales
for Snack Products That State No/Low/Less Sugar
With Products Like These Leading the Way
Apple Chips
Ss Microwave Popcorn
Dried Meat Snacks
Nutritional/Intrinsic Health Value Bars
Granola Bars
Fz Handheld Entrees (Non-breakfast)
Ice Mlk/Fz Dairy Dessert
Rfg Yogurt Drinks
Source: IRI TSV– Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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36
There are a Variety of “Less Sugar” Options on the Market
But the Higher % Reductions Realized Stronger Growth
Less Sugar
Sales
50% +102%
70% +14%
40%
Declining
35%
Declining
25%
Declining
10%
Declining
No Reduced Sugar Claim
Declining
Source: IRI TSV– Core Definition – Select Group of UPCs - 52 Weeks Ending 12/29/19 vs YAGO
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37
With Our Partners at Label Insight, We are Able to See the
Sweetener Evolution Has Consumers Exploring Many Options
Top $ % Chg
Contains Pearl Sugar (New)
Contains Monk Fruit +18%
High Fructose Corn Syrup Free +10%
Contains Isomalt +10%
Contains Neotame +7%
Source: IRI TSV + Label Insight – Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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38
Although Simple Ingredients are Growing, They are Being
Outpaced by Snack Preferences With Not So Simple Labels
# of Ingredients
31 TO 40
3.9%
21 TO 30
2.4%
41 TO 50
2.1%
11 TO 15
2.1%
16 TO 20
1.2%
6 TO 10
0.3%
1 TO 5
0.1%
51 PLUS
-0.1%
Balance is and Will Continue to be Relevant
Source: IRI TSV + Label Insight – Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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39
CBD is Another Functional Ingredient That is Exploding
Across Forms & Channels
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40
According to Consumers CBD and Legal Marijuana
Have the Same Primary Motivations but Different Priorities
To relax
To treat the symptoms of a medical condition
To improve the overall quality of my life
To make other activities more enjoyable
To create a greater sense of well-being
To enhance my creativity
To enhance my concentration
To enhance personal growth
To enhance an appreciation for nature
To ease withdrawal symptoms
0
CBD
10
20
30
40
50
60
70
80
Legal Marijuana
Motivations for Use
IRI-MFour Cannabis Attitude and Usage Study, Feb. 2019
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41
On Social Media, CBD Snacks Skewed Slightly Female, and was Discussed
Most Often by People Between 25-44
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42
CBD Top Mentions Surrounded Different Types of Snacks and Vegan
Poster Interests*: Poster interests are topics from the industry standardized IAB lifestyle categories. Posters who regularly post about the topics are then tagged as interested in that topic. Ratio is defined as how many times more likely than the
average poster online people who post about coronavirus are to also discuss the listed topic
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43
CBD in Traditional Retail Has Gained Significant
Momentum in Beverages, Candy and Chocolate
MULO+C
• TEA/COFFEE - READY-TO-DRINK
• CHOCOLATE CANDY
• NON-CHOCOLATE CANDY
• JELLIES/JAMS/HONEY
• SNACK BARS/GRANOLA BARS
New
• BAKERY SNACKS
Dispensary
• CANDY
+59.6%
• CHOCOLATES
+ 7.3%
Source: IRI TSV– 52 Weeks Ending 12/29/19 vs YAGO
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44
Partnering With BDS Analytics, We Are Able to Project to all Channels With Big
Winners Being eCommerce, Grocery and Mass in 2024
Projected 2019: $4.1B
Convenience 4%
Projected 2024: $20.0B
Drug 3%
Drug 5%
Convenience 5%
Other 3%
Natural/Vitamin 5%
Other 7%
Mass 1%
Grocery 4%
Dispensary
26%
Pharma 14%
Dispensary
51%
Natural/Vitamin 8%
Mass 9%
eCommerce
18%
eCommerce
14%
Grocery
9%
Pharma
11%
BDS Analytics’ Projected U.S. CBD Market
Source: BDS Analytics CBD Market Monitor and Arcview Market Research
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45
PROTEIN SENSATIONS:
IT’S NOT GOOD ENOUGH TO
JUST STATE PROTEIN
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46
Types of Protein Snacks are Progressing
Protein inherently
within (e.g., meat snacks)
Protein Ingredients
and Claims (e.g., bar)
Plant-based protein
(e.g., hummus, bean snacks)
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47
However the Current Core Snack
Trend Shows Mixed Results
Total Protein Claim – Core Snack
2.9%
PROTEIN CLAIMS HIGH/SOURCE/MORE
HIGH PROTEIN
SOURCE OF PROTEIN
MORE PROTEIN
OTHER PROTEIN CLAIMS
-2.4%
-3.1%
-1.7%
-3.5%
6.8%
Source: IRI TSV– Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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48
Products Like These are Driving the Other Protein Trends With Protein
Grams on the Front of Package
Source: IRI TSV– Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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49
64% State They Want Snacks That Provide an
Energy Boost and Even Higher for Younger Generations
66%
68%
69%
67%
18 – 24
25 – 34
35 – 44
45 – 54
Source: IRI Snacking Survey - 2020
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50
We are Finding That Consumers Interchange Protein and Energy –
Energy Claims are Gaining Momentum With +0.9% Growth
Source: IRI TSV – Label Insight– Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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51
We Have Even Seen Plant-Based Proteins Evolving in
Categories That Have Traditionally Been Animal-Based
Was only…
Now also includes…
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52
The Trends Suggest That Consumers are Shifting Preferences and Trying
New Varieties
Top Dollar Growth
Top % Change
PISTACHIO PROTEIN
WHEY PROTEIN
WHEAT GERM PROTEIN
NUTRITIONAL YEAST PROTEIN
SPIRULINA PROTEIN
TEXTURED VEGETABLE PROTEIN
$
%
Bottom Dollar Decliners
Bottom % Decliners
AMARANTH PROTEIN
QUINOA PROTEIN
BEAN PROTEIN
FARRO PROTEIN
BULGAR PROTEIN
TEFF PROTEIN
Source: IRI TSV + Label Insight – Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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53
Plant-Based Alternatives From Some Meat & Dairy Categories Are Doing Well
Source: IRI TSV + Label Insight – 52 Weeks Ending 12/29/19 vs YAGO
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54
DIET FRENZY:
OPTIONS FOR THOSE LOOKING
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55
There are Some Consumers Who Look For
Snacks Aligned to Their Diet Preferences
17%
of consumers look for
snacks that are
vegetarian
13%
of consumers look for
snacks that are
vegan
28%
21%
24%
7%
18 – 24 25 – 34 35 – 44 45 – 54
21%
17%
17%
6%
18 – 24 25 – 34 35 – 44 45 – 54
Source: IRI Snacking Survey - 2020
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56
Consumers Look to Packaging to Find
Information About the Snacks that Align With
Their Dietary Needs and/or Preferences
68%
62%
56%
47%
61%
58%
54%
52%
44%
32%
18 – 24
25 – 34
Calorie/Fat/Sugar
35 – 44
45 – 54
Hispanics
Non-GMO
Source: IRI Snacking Survey - 2020
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57
Since Snacking is Part of Consumers Daily Diet,
Snacks Aligned to Specific Diets Did Well
KOSHER
ATKINS DIET 40
LOW SUGAR DIET
LOW CARBOHYDRATE DIET
HIGH PROTEIN DIET
MACROBIOTIC DIET
WHOLE GRAIN
KETOGENIC
WHOLE GRAIN FIRST INGREDIENT
DASH DIET
PLANT BASED (Claims)
IRON RICH DIET
PLANT BASED DIET(Ingredients/Claims)
PALEO
VEGAN
0.8%
1.3%
2.3%
3.0%
0.8%
2.7%
2.0%
2.1%
2.0%
1.3%
15.2%
0.4%
0.2%
0.3%
0.1%
Source: IRI TSV + Label Insight – Core Definition – Dollar Growth Rank Order - 52 Weeks Ending 12/29/19 vs YAGO
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58
Even Snacks Touting
“Free From” Did Well
SHELLFISH FREE
FISH FREE
EGG FREE
PEANUT FREE
TREE NUT FREE
GLUTEN FREE
WHEAT FREE
SOY FREE
LACTOSE FREE
DAIRY FREE
MILK FREE
CASEIN FREE
1.7%
1.3%
1.7%
2.2%
1.9%
1.3%
1.1%
1.6%
1.1%
1.2%
1.2%
1.2%
Source: IRI TSV + Label Insight – 52 Weeks Ending 12/29/19 vs YAGO
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59
DYNAMIC OMNICHANNEL
DELIVERING VARIETY
TO CONSUMERS
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60
Thinking About Your Most Recent Snack Purchase,
Why Did You Purchase This Snack?
For yourself to satisfy hunger
+6 pts
%
52
For yourself to refuel
+6 pts
%
31
For someone in your family
+4 pts
%
26
As a gift
+4 pts
%
13
vs 2018
vs 2018
vs 2018
vs 2018
Source: IRI Snacking Survey - 2020
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61
All Channels Found Dollar Growth with Core Snacks
Grocery
Mass
+2%
+4%
Club
Drug
+0.2%
Dollar
+4%
Convenience
+3%
eCommerce
+10%
+32%
Source: IRI TSV - Total Core Definition - 52 Weeks Ending 12/29/19 vs YAGO
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62
Brick & Mortar Click & Collect Drove a Large Portion of Online Snack Growth
B&M Multi-Category E-Commerce (Delivery plus Click & Collect): 53% growth
Select Grocery
Click & Collect
+22%
Select Mass
Click & Collect
+117%
Source: IRI TSV eMarket Insights Model – 52 Weeks Ending 12/29/20, Core Snacks is an aggregate of the
releasable Snack Categories
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63
Within eComm – Online Delivery Sites
Drove Significant Growth
Total Delivery
+58%
Source: IRI TSV eMarket Insights Model – 52 Weeks Ending 12/29/20, Core Snacks is an aggregate of the
releasable Snack Categories
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64
Now, More than Ever, It is Critical to
DEEPEN Connections With
Consumers For Success
• Demand/Needs-based
• Engage via targeting
• Educate and/or Inform
• Purchase Cycle
• Experiential
• New Product Alerts
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65
Frito-Lay's Latest Commercial is a Great Example on How to Deepen
Connections to Consumers Without “Selling”
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66
INNOVATING WITH
BALANCED CHOICE
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67
39%
37%
44%
23%
32%
has exotic flavors
18 – 24
25 – 34
35 – 44
45 – 54
Source: IRI Snacking Survey - 2020
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In 2019, We Saw a Spectrum of Flavors That
Appealed to Consumers and Grew In Dollar Sales
Evolution of flavors like more exotic sweet (e.g., blood orange) and savory flavors,
and we continue to see sweet & savory blends winning
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Refrigeration Innovation From Complete Snacks to
Probiotic Bars to Crossovers to Spoonable Smoothies
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Yogurt Innovation had Similar Themes and Included
Non-Dairy, Almond Butter, Caffeine, and Honey Options too
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BFY Bars and Cookie Innovation Offer Consumers Multiple Benefits And These
Categories Beginning to Blur
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Meat Snack Innovation Offered Permissible Indulgent and Better For You Snacks
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Indulgent Snack Innovation was Hot, Sweet and Savory
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Frozen Sweet Snack Innovations Had
Remixes, Caffeine, Snackable Dough and Spirits…to Name a few
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The Treat Segment Themes Included Sharables and Cereal Crossovers
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If the Rebound from COVID-19 Is Quick, Then We May See
Snack Innovation in the Back Half & Into 2021 Infused With
Variety, Functional, and Experiential
• From infused waters to infused tuna to more infused snacks
– Not just CBD, but also essential oils
• Snack Kits will continue to expand into different occasions
• Snack Pairing – snacks paired with beverages that “complete”
the snacking occasion
• Experiential
– Personalized snacking
– via Virtual Reality and/or online
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CORONAVIRUS
SNACKING UPDATE
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Significant Spike in Sales for All Sections of The Store During Weeks Ending
March 15th and 22nd, However Now Adjusting to More In-Home Activities
Dollar Sales % Chg. vs YA
65
12 Months F&B growth benchmark (+2.6%) and Total Core Snacking (minus produce) growth benchmark (+2.9)
60
Total Store
55
F&B
50
45
Non-Food
40%
40
35%
Total Core
Snacking
35
30
25
20
15
10
2%
5
7%
0
-5
01-26-20
02-02-20
January 21st
Washington State
confirms the first case
on U.S. soil
02-09-20
January 30th
First confirmed case
of person-to-person
transmission of virus
02-16-20
02-23-20
February 29th
US reports first death
in Washington state
03-01-20
3/8/2020
March 8th
Reported cases
in 35 states
3/15/2020
3/22/2020
3/29/2020
4/05/2020
March 15th
158M Americans
told to stay home
Note: Data reflected does not include Costco or Total eComm
Source: IRI TSV Model
Source: IRI TSV - MULOT+C
Source: IRI TSV eMarket Insights Model, Total Store is an aggregate of the 204 releasable eMarket Insights categories; F&B is an
©
2020
Information
Resources
Inc.
(IRI).
Confidential
and
Proprietary.
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aggregate of the releasable Edible Categories; Total Core Snacking is an aggregate of releasable Snack Categories
For Our Assessment, We Have Taken Pre-COVID-19 Average and Compared to the
Current COVID-19 Period to Understand the Delta
The Delta Illustrates How Strong Purchasing Has Been At the Category Level Above The 2019
Growth Rates
During COVID-19
$ % Change
-
Pre-COVID-19
$ % Change
=
Delta
Jan 20, 2020 –
Apr 5, 2020
Full Year 2019
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Top Ranked Categories All Have a Positive Dollar and Volume Deltas, Except NonChocolate – But Note Still Growing Dollars
Dollar Sales Delta
Chocolate Candy
Cookies
Potato Chips
Non-chocolate Candy
Volume Sales Delta
Crackers
17.8
14.1
7.8
2.6
9.3
7.2
9.7
-0.5
0.5
Yogurt
Ice Cream
Tortilla Chips
-0.1
Frozen Novelties
Snack Nuts
16.3
12.1
12.4
9.0
6.5
10.6
11.7
7.3
2.2
Note: Data reflected does not include Costco or Total eComm
Delta = During COVID 19 $ % Chg - Pre Period $ % Chg
5.0
Pre-period = CY 2019
COVID 19 = Jan 05, 2020 – Apr 5, 2020
Source: IRI TSV Model
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The Current Highest Accelerating Core Snacking Categories Based on the Delta
Show Shows Variety is Still Important to Consumers
Dollar Sales Delta
Kernel Popcorn
38.3
Frozen Cookies
Canned/Bottled Fruit
SS Yogurt/Yogurt Drinks
Volume Sales Delta
Frozen Fruit
38.5
41.6
34.5
30.5
30.7
30.3
29.1
21.6
15.2
Microwave Popcorn
Frozen Ice Pops
Ice Milk/Frozen Dairy
Aerosol/\Squeezable
Cheese Spreads
Frozen Pretzels
41.5
27.4
24.2
26.2
25.2
21.6
24.3
23.7
26.2
23.2
Pre-period = CY 2019
COVID 19 = Jan 20, 2020 – Apr 5, 2020
Source: IRI TSV Model
Note: Data reflected does not include Costco or Total eComm
Delta = During COVID 19 $ % Chg - Pre Period $ % Chg
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Tortilla Chips
Potato Chips
Other Salted Snacks
(No Nuts)
Cookies
Pretzels
Source: IRI TSV Model – Dollar Sales % Change - COVID 19 = Jan 20, 2020 – Apr 5, 2020 vs YAGO; Definitions: Non-Chocolate, Bars, Salty
Snacks Categories – Smaller Sizes Less Than or Equal to 4.2 oz & Larger Size is Greater Than 4.2oz; Cookies – Smaller Sizes Less than 3
oz & Larger Sizes is Greater Than or Equal to 3.0oz and Chocolate Smaller Sizes less than 3.5oz and greater than or Equal to 3.5oz
Larger Sizes
Smaller Sizes
Nutritional/Intrinsic
Health Bars
Larger Sizes
Smaller Sizes
RTE Popcorn/Caramel Corn
Larger Sizes
Smaller Sizes
Pork Rinds
Larger Sizes
Smaller Sizes
Larger Sizes
Smaller Sizes
Corn Snacks
Larger Sizes
Smaller Sizes
Larger Sizes
Smaller Sizes
Larger Sizes
Smaller Sizes
Smaller Sizes
Cheese Snacks
Larger Sizes
Larger Sizes
Larger Sizes
Non-chocolate Candy
Smaller Sizes
Larger Sizes
Chocolate Candy
Smaller Sizes
Smaller Sizes
Larger Sizes
Smaller Sizes
We are Starting to See Shifts to Larger Pack Sizes Across Select Product
Categories as Consumers are Not Seeking as Many “On the Go” Snacks Today
Snack and Granola Bars
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F&B and Total Core Sales Accelerated Growth Across Large Format Channels
During the COVID-19 Period, with Major Food, Mass and Club Retailers
F&B Delta
Core Snack Delta
20.3
12.4
14.1
6.6
3.6
Total US –
Multi-Outlet + Conv
Total US - Food
0.2
Total US - Drug
19.5
12.0
12.7
-4.6
5.8
Mass
Total Club
-7.6
Total Convenience
Pre-period = CY 2019
COVID 19 = Jan 20, 2020 – Apr 5, 2020
Source: IRI TSV Model
Note: Data reflected does not include Costco or Total eComm
Delta = During COVID 19 $ % Chg - Pre Period $ % Chg
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Online Has Also Seen a Boost in Sales And Consumer Shopping Habits May
Be Changing
Total Core
Snack
Total F&B
+32%
Total Ecommerce-RMA
E-Commerce
+46%
During COVID-19 Period
$ % Chg
Source: IRI TSV eMarket Insights Model - COVID 19 = Jan 20, 2020 – Apr 5, 2020
F&B is an aggregate of the releasable Edible Categories; Total Core Snacking is an aggregate of releasable Snack Categories
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SNACKING FUTURE &
INSIGHTS TO ACTIONS
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86
The Future of Snacking will be Different Given the
Economy But It Will Continue to Grow
• Snacking will continue to see increased sales through COVID-19 and into the
“Great Lockdown” Recession period since it is an expandable consumption food
• We have a large % of the population unemployed which impacts snack
purchases which will result in an increase of SNAP households
– During the 2007-09 recession, snacking fared well but unemployment didn’t
rise above 10%
– Currently, we are @ ~13-14% but this will be temporary
– Post COVID-19, it will take time before consumers get to a “new normal”
status for everyday life.
– Key snack points on SNAP households - Majority of purchases in Grocery &
Mass, but Dollar important too; top 10 snack categories are the same, but
also Frozen Handhelds, Fz. Appetizers/Snack Rolls, Meat Snacks and
Cheese Snacks do well
• Consumer snacking for those employed may evolve with both larger pack and
smaller pack sizes with a reduction of restaurants and kids at home for the rest
of the school year in some areas, but the need for ‘on the go’ options
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We Can Leverage The Past To Inform
In IRI’s 2009 State of Snack Industry, Noted Strategies to Compete
Included:
• Value Is Key
• Reach Consumers in The Home
• Align Strategies with New Consumer Rituals
• Educate To Activate
• Think and Communicate Green
• These are relevant again
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Growth Will Come From Different
Strategies and Tactics
• You may lose traditional impulse with more people ordering online and predictions
are that this will continue, so important to remember on demand
• There may be switching to Private Label given OOS situations and/or brand
switching from mainstream to value brands
• Expect increases in Private Label Snacks across price tiers
• Package size architecture updates will need to be a focus given select in-store
assortment and channel migration
• Channel preferences will be on value – Mass, Dollar and Club should see a boost
and Online will continue to see positive sales
• However, for those with financial means, consumers will flock to restaurants
when the ban lifts to support communities which will impact in-home consumption
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Act Now In Order to Capitalize on Snack Growth Potential – Part 1
• Balance Price and Quality with Wellness
• Online strategies for attracting and retaining snack consumers
• Pack/Size Architecture is Critical
– Make brands and/or sizes not available in store – available online and
communicate to your consumers
– Smaller, lower-priced packs for some channels but also competitive priced
multi-serve to feed many
• Speed is critical!!
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Act Now In Order to Capitalize on Snack Growth Potential – Part 2
• Leverage Targeted Media to reach consumers in the home today and out-ofhome when COVID-19 ends – both new to your brand and those loyal
– For lower income and unemployed
o
Offer free or large discount coupons letting them know you care and are
there for them. They will remember.
– For other consumers – DEEPEN your connection
o
Engage – tell them what you are doing to help during COVID-19
o
For single households that are “lonely” – find a way to connect (e.g., social
hours for your product fan ‘community’ and/or virtual reality)
o
Illustrate to consumers at home celebrations are fun
– Have a birthday party with a twist - leverage online tools (e.g., Zoom) – have
everyone get their favorite snack and celebrate
– Reward and/or treat students for managing through school at home
– Game-based incentives
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Future Podcasts and Webinars
• May Snack Purchase Update
– Date TBD
• Summer Snacking Special Edition – “Snacking Before and After COVID-19”
– Date TBD
• Post COVID-19 Snacking Impact and See What Trends Continued and New Trends
– Date TBD
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THANK
YOU!
For More Information, Contact Me:
Sally Lyons Wyatt
Sally.LyonsWyatt@iriworldwide.com
Follow IRI on Twitter: @IRIworldwide
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APPENDIX
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94
The category breaks have been based on consumer attributes – part 1
WELLNESS - CORE
Apple Chips
Bfast Cereal and Snk Bars (Other Natural+ Claims)
Canned/Bottled Fruit (Non GMO+GF+Low
Sugar+Organic+ Claims)
Cheese Snacks (Fat+ Claims)
Crackers (Other Grain+ Claims)
Dried Fruit
Dried Meat Snacks (Fat+ Claims)
Dry Fruit Snacks (Gluten Free + Organic + Non GMO+
Claims)
FZ Fruit
Snack/Granola Bars (Natural+Organic+Non
GMO+Grain+ Claims)
AO Snack/Granola Bars
Kernel Popcorn (Organic+Natural+Home Grown+
Claims)
AO Kernel Popcorn (w/o Organic+Natural+Home
Grown+ Claims)
Luncheon Meats (Natural+No Preservatives+ Claims)
Microwave Popcorn
Natural Cheese (Fat+ Claims)
AO Natural Cheese (w/o Fat+ Claims)
Nutri and Intri Hlth Vlu Bars
Nutritional Snacks/Trail Mixes (w/Claims)
Olives
Peanut Butter (Non GMO+Low Fat+Organic+Sugar+
Claims)
Picante Sauce
Pretzels
RFG Appetizers/Snack Rolls - Sushi
RFG Yogurt (Fat+ Claims)
AO RFG Yogurt (w/o Fat+ Claims)
RFG Yogurt Drinks (Fat+ Claims)
RFG Yogurt Drinks (w/o Fat+ Claims)
Rice Cakes/Popcorn Cakes
RTE Popcorn Savory (Fat+ Claims)
Snack Nuts
Soups - BFY
Specialty Nut Butter (Non
GMO+Natural/Organic+ Claims)
SS Yogurt/Yogurt Drinks (Fat+ Claims)
AO SS Yogurt/Yogurt Drinks (w/o Fat+
Claims)
Sunflower/Pumpkin Seeds
Total Snack Size Produce
PERMISSIBLE INDULGENCE - CORE
AO FZ Appetizers/Snack Rolls (w/o Sushi)
AO Bfast Cereal and Snk Bars (w/o Other
Nat+)
AO Canned/Bottled Fruit (w/o Non
GMO+GF+Low Sugar+Organic+ Claims)
AO Cheese Snacks (w/o Fat+ Claims)
AO Dried Meat Snacks (w/o Fat+ Claims)
AO Dry Fruit Snacks (w/o Gluten Free +
Organic + Non GMO+ Claims)
AO Granola Bars (w/o Natural+Organic+Non
GMO+Grain+ Claims)
AO Nutri and Intri Hlth Vlu Bars (w/o Other
Protein+ Claims)
Carob/Yogurt Coated Snacks
Chocolate Covered Salted Snacks
Cookies (Energy+ Claims)
Crackers(w/o Other Grain+ Claims)
Fz App and Snk Rolls (Protein+Natural+
Claims)
Fz HH Entrees Non Bkfast (GF+
Claims)
Fz Ice Cream and Ice Milk Desserts
(100% Natural+ Claims)
Fz Novelties (100% Natural+
Claims)
FZ Pretzels
FZ Yogurt/Tofu
Ice Cream (Low Fat+High
Protein+Organic+ Claims)
Ice Milk and Fz Dairy Desserts
(Low Fat+Gluten Free+Natural+
Claims)
Ice Pop Novelty (Natural+Low Fat+
Claims)
Oth Salted Snack xNuts (Gluten
Free+Non GMO+Low Fat+ Claims)
Rfg Dips (Fat
Claims+Natural+Calories/serving+
Claims)
Sherbet/Sorbet/Ices
Tortilla and Tostada Chips (100%
Natural+ Claims)
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The category breaks have been based on consumer attributes – part 2
TRUE INDULGENCE - CORE
Aerosol/Squeezable Cheese Spreads
AO Cookies (w/o Energy+ claims)
AO Fz App and Snk Rolls (w/o Protein+Natural+
Claims)
AO Fz HH Entrees Non Bkfast (w/o GF+ Claims)
AO Fz Ice Cream and Ice Milk Desserts (w/o 100%
Natural+ Claims)
AO Fz Novelties (w/o 100% Natural+ Claims)
AO Ice Cream (w/o Low Fat+High Protein+Organic+
Claims)
AO Ice Milk and Fz Dairy Desserts (w/o Low
Fat+Gluten Free+Natural+ Claims)
AO Ice Pop Novelty (w/o Natural+Low Fat+ Claims)
AO Oth Salted Snack xNuts (w/o Gluten Free+Non
GMO+Low Fat+ Claims)
AO Potato Chips (w/o High Fiber + Low Fat+
Claims)
AO Rfg Pastry/Danish/Coffee Cakes (w/o GF+
Claims)
AO Rfg Desserts (w/o Low Sugar+Gluten Free +
Natural+ Claims)
AO Rfg Dips (w/o Fat
Claims+Natural+Calories/serving+ Claims)
AO Rfg Snack Cakes and Donuts (w/o GF+
Claims)
AO Tortilla and Tostada Chips (w/o 100%
Natural+ Claims)
Corn Snacks (No Tortilla Chips)
Doughnuts
FZ Cookies
FZ Dips
Rfg Pastry/Danish/Coffee Cakes (GF+
Claims)
RFG Handheld Non-Breakfast Entrees
Rfg Snack Cakes and Donuts (GF+ Claims)
SS Toaster Pastries and Pop Tarts
(Organic+GF+ Claims)
AO SS Toaster Pastries and Tarts (w/o
Organic+GF+ Claims)
Toasted Corn Nut Snacks
TREATS - CORE
Chocolate Candy
Non-Chocolate Candy
Regular Breath Fresheners
Regular Gum (No Sugarless)
SF Breath Fresheners
Sugarless Gum
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The category breaks have been based on consumer attributes – part 3
TOTAL CORE
AEROSOL/SQUEEZABLE CHEESE SPREADS
ALL OTHER SNACK/GRANOLA BARS
APPLE CHIPS
BAKERY SNACKS
BREAKFAST/CEREAL/SNACK BARS
BREATH FRESHENERS
CANNED/BOTTLED FRUIT
CAROB/YOGURT COATED SNACKS
CHEESE SNACKS
CHEESE SPREADS/BALLS
CHOCOLATE CANDY
CHOCOLATE COVERED SALTED SNACK
COOKIES
CORN SNACKS (NO TORTILLA CHIPS)
CRACKERS
DESSERTS - RFG
DIP/DIP MIXES - SS
DOUGHNUTS
DRIED FRUIT
DRIED MEAT SNACKS
DRY FRUIT SNACKS
FZ APPETIZERS/SNACK ROLLS
FZ COOKIES
FZ DIPS
FZ FRUIT
TOTAL CORE
FZ HANDHELD ENTREES (NON-BREAKFAST)
FZ ICE CREAM/ICE MILK DESSERTS
FZ NOVELTIES
FZ PRETZELS
FZ YOGURT/TOFU
GRANOLA BARS
ICE CREAM
ICE MLK/FZ DAIRY DESSERT
ICE POP NOVELTIES
KERNEL POPCORN
NATURAL CHEESE-CHUNKS
NATURAL CHEESE-CUBE
NATURAL CHEESE-STRING/STICK
NON-CHOCOLATE CANDY
NUTRITIONAL SNACKS/TRAIL MIXES
NUTRITIONAL/INTRINSIC HEALTH VALUE BARS
OTHER SALTED SNACKS (NO NUTS)
PORK RINDS
POTATO CHIPS
PRETZELS
REGULAR GUM (NO SUGARLESS)
RFG APPETIZERS/SNACK ROLLS
RFG DIPS
RFG HANDHELD NON-BREAKFAST ENTREES
RFG PASTRY/DANISH/COFFEE CAKES
TOTAL CORE
RFG SNACK CAKES/DOUGHNUTS
RFG YOGURT
RFG YOGURT DRINKS
RICE CAKES/POPCORN CAKES
RTE POPCORN SAVORY
RTE POPCORN SWEET
SHERBET/SORBET/ICES
SNACK NUTS
SNACK PRODUCE
SS MICROWAVE POPCORN
SS TOASTER PASTRIES/TARTS
SS YOGURT/YOGURT DRINKS
SUGARLESS GUM
SUNFLOWER/PUMPKIN SEEDS
TOASTED CORN NUT SNACKS
TORTILLA/TOSTADA CHIPS
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