SNACKING BEYOND THE
SNACKING AISLE
HOW TO TAKE A BITE OUT OF CANADA’S
SNACKING DEMAND
Carman Allison - VP Consumer Insights, Nielsen
@CarmAllison
Copyright ©2013 The Nielsen Company. Confidential and proprietary.
MEET YOUR PRESENTER
Carman Allison
VP Consumer Insights
Nielsen
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Copyright ©2012 The Nielsen Company. Confidential and proprietary.
JOIN TODAY’S CONVERSATION
@Nielsen
@CarmAllison
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Copyright ©2013 The Nielsen Company. Confidential and proprietary.
THE CHALLENGE FOR GROWTH
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LET’S SET THE STAGE
Canadian CPG
Dollar Sales
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Unit Sales
Trips per Shopper
Source: Nielsen MarketTrack, National All Channels – YTD 40 weeks to September 20, 2014 - Total Tracked Sales excluding Fresh Random Weight
Homescan Grocery Composite 52 weeks ending September 27, 2014
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HOW DO WE DEFINE SNACKS TODAY?
$4.9 Billion
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
SNACKS
+4% Dollar growth
+2% KG growth
Source: Nielsen MarketTrack, National All Channels + G&G – 52 weeks Ending October 18 2014
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LIFESTYLES ARE REDEFINING HOW WE EAT
• ON THE GO
• PORTABILITY
• HEALTH
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
• CONVENIENCE
• EASE OF USE
• VARIETY
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“
The average consumer
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enjoys
different types
of snacks in a 30-day period
”
…out of the 47 snacks surveyed
Source: Nielsen Global Survey – Canada Q1 2014
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RETHINKING WHAT “SNACKING” MEANS
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SNACKING…
…REDEFINED
Source: Nielsen Global Survey – Q1 2014
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IF WE EXPAND SNACK TO REFLECT ‘SNACKING’ THE
MARKET POTENTIAL INCREASES 2.5 TIMES
Potential Opportunity
Traditional Snack
Definition
$12.6
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Billion +3%
$4.9
Billion +4%
2.5 x
Source: Nielsen MarketTrack, National All Channels + C&G - 52 week periods ending September 20, 2014
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AUDIENCE POLL
Which is your favourite type of snack?
Sweet Tooth
Salty Please
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Either works for me!
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WHILE THE MAJORITY HAVE A PREFERENCE,
1 IN 5 CONSUMERS PREFERS EITHER
60%
SWEET
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19%
59%
SALTY
Source: Nielsen Global Survey – Q1 2014
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OPPORTUNITIES ACROSS THE SNACKING SPECTRUM
Source: Nielsen MarketTrack, National All Channels + C&G - 52 week periods ending September 20, 2014
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WHAT’S TRENDING IN SNACKING?
TOP - GROWTH % CHG
TOP 5 SNACKING CATEGORIES ($M)
Candied Snacks
+31%
Meat Sticks
+16%
Fruit & Nuts
+7%
Dry Fruit
+6%
Chips, Corn Snacks
+5%
Potato Chips, Corn Snacks
$1,836.1 +5%
Prepack Cheese
$1,782.8 +3%
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Chocolate
$1,580.1 +5%
BOTTOM - GROWTH % CHG
Yogurt
$1,492.7 +0%
-9%
Frz Water Confect
-7%
Puffed Cakes
Baked Desserts
$822.5 +1%
-6%
RTE Gelatin
-4%
Puddings
-4%
Marsh. Treats
Source: Nielsen MarketTrack, National All Channels +C&G – 52 weeks Ending September 20, 2014
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What do consumers have
to say about snacking?
Global: 60 Countries (30,535 individuals)
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Canada: 503 individuals
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NORTH AMERICANS ARE CHIP-O-HOLICS!
TOP 5 SNACKS CONSUMED
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#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
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CHIPS, CHOCOLATE AND FRUIT TOP THE LIST
FOR CANADA'S FAVOURITE SNACK
TOP 5
FAVOURITE
SNACKS
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#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
Source: Nielsen Global Survey – Q1 2014
7% Cheese
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GROCERY STORES REMAIN THE TOP DESTINATION
FOR SNACK PURCHASES
% who source their snacks sometimes or often
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93%
GROCERY
STORES
56%
45%
MASS MERCH
$1
MASS MERCH
Source: Nielsen Global Survey – Q1 2014 – Canada
DOLLAR
STORES
44%
43%
DRUG STORES
CONVENIENCE
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BUT DESPITE THE TOP DESTINATION FOR SNACK
SALES – GROCERY IS LOSING SHARE
Source: Nielsen Homescan Channel Facts - 52 Weeks Ending September 27, 2014 – Snack + Confections
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CONSUMERS WHO ARE FIGHTING TEMPTATION
MAY BE GIVING IN TO PROMOTIONS
48%
Only buy snacks
when on sale
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
36%
41%
of SNACKS
are sold with
a price cut
Source: Nielsen Global Survey – Q1 2014
Nielsen MarketTrack, National GB+MM+DG - 52 week periods ending October 18, 2014
+4
+3
of CPG sales sold
with a price cut
5% higher than average
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WHY DO CANADIANS SNACK?
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86%
ENJOYMENT
Source: Nielsen Global Survey – Q1 2014
81%
79%
78%
62%
CRAVING
HUNGER
BETWEEN
MEALS
TREAT
NUTRITION
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4 OUT OF 10 CANADIANS SNACK AS A MEAL
REPLACEMENT
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42%
Breakfast Alternative
43%
34%
Lunch Alternative
Dinner Alternative
Source: Nielsen Global Survey – Q1 2014
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SNACKING AS A MEAL ALTERNATIVE
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<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
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“
Even though we love our chips, we
also snack with sensible, balanced
indulgence, and healthier
alternatives
”
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SNACKING WITH A CONSCIENCE
63%
Fruit
54%
50%
50%
Nuts & Seeds
43%
43%
51%
42%
Yogurt
Source: Nielsen Global Survey – Q1 2014
Vegetables
Granola Bars
38%
35%
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BACK-TO-BASICS ATTRIBUTES
% who think it is important or very important
NATURAL FLAVOURS
(65%)
NO ARTIFICIAL COLOURS (60%)
NO ARTIFICIAL FLAVOURS (60%)
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ALL NATURAL (60%)
GMO FREE (56%)
CAFFEINE FREE (36%)
GLUTEN FREE (28%)
Source: Nielsen Global Survey – Q1 2014 - Canada
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HEALTH ATTRIBUTES ARE IMPORTANT TO CONSUMERS
% who think it is important or very important
LESS IS MORE
LOW SALT/SODIUM (63%)
+
MORE IS MORE
LOW SUGAR/SUGAR FREE (61%)
HIGH IN FIBRE (65%)
NO HIGH FRUCTOSE CORN SYRUP (59%)
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PORTION CONTROL (58%)
LOW CALORIES (53%)
WHOLE GRAIN (61%)
HIGH IN PROTEIN (61%)
LOW FAT (52%)
LOW/NO CARBS (50%)
Source: Nielsen Global Survey – Q1 2014 - Canada
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MORE THAN 1/3 WANT THEIR SNACK INGREDIENTS TO
BE LOCAL, ORGANIC AND SOURCED SUSTAINABLY
44%
LOCAL
38%
41%
SUSTAINABLY
SOURCED
ORGANIC
Source: Nielsen Global Survey – Q1 2014 – Canada
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DIFFERENT SNACKS FOR DIFFERENT FOLKS
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Are generations divided by snacking?
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THE CPG GROWTH ENGINE WILL SWITCH GEARS
By 2020…
MILLENNIALS
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+$12.5 B
+107%
Source: Nielsen Homescan 52 weeks to March 29, 2014 – HH <35 years – Based on older generation spend
BOOMERS
-$4.3 B
-9%
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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)
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TOP 5 SNACKS CONSUMED
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
YOUNGER
VS.
OLDER
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 – Q1 2014 – Canada – Younger = 35 years, Older >55 years
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TOP 5 FAVOURITE SNACKS
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
YOUNGER
VS.
OLDER
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 – Q1 2014 – Canada – Younger = 35 years, Older >55 years
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DIFFERENCES ACROSS GENERATIONS
YOUNGER
58%
OLDER
Snack as a Reward/ Mood Booster
(vs. 28% Older)
Tend to snack for nutrition
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(vs. 62% Younger)
47%
66%
Snack as a Meal Replacement
(vs. 29% Older)
Prefer Back-to-Basics snacking
(vs. 47% Younger)
Source: Nielsen Global Survey – Q1 2014 – Canada – Younger = 35 years, Older >55 years
52%
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Chick-flick versus action movie?
What’s your snack of choice?
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MALE SHOPPERS ARE OFTEN OVERLOOKED BUT
ACCOUNT FOR 24% OF PRIMARY SHOPPERS
% of Households (>50% of Shopping)
24%
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
16%
17% are
male-only
households
Source: Nielsen Panelviews June 2014
60%
22% are
female-only
households
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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
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$32.41
$37.72
161
152
43%
54%
Given the opportunity, I like
spending time browsing in the
grocery or food store
50%
Source: Nielsen Homescan, National All Channels, Total Expenditures, 52 Weeks ending July 26, 2014; Nielsen Panelviews June 2014
60%
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AUDIENCE POLL – FOR FEMALES
Which do you think males snack on the most?
Chips
Cookies
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Fruit
Chocolate
Cheese
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AUDIENCE POLL – FOR MALES
Which do you think females snack on the most?
Chips
Cookies
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
Fruit
Chocolate
Cheese
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FEMALES SNACK MORE THAN MALES
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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 – Q1 2014 - Canada
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MALES PREFER SALTY AND FEMALES SWEET
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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 – Q1 2014 - Canada
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DIFFERENT SNACKING
MOTIVATORS
43%
Prefer hot/spicy flavours
(vs. 33% Female)
Snack as a stress reliever
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(vs. 32% Male)
43%
43%
Only buy snacks when on sale
(vs. 52% Female)
“Less is more” when it comes to Snacking
(vs. 51% Male)
Source: Nielsen Global Survey – Q1 2014 - Canada
61%
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LONG TERM OUTLOOK POSITIVE
• GENERATIONAL SHIFTS
• Millennials - Indulgence
• Boomers - Health
Growth from
perimeter and
centre of store
• CONSUMER DEMANDS
• Variety
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
• Innovation
• Accessibility
• Portability
• Less is More
• Meal Replacement
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CANADIANS ARE CHANGING THE WAY WE EAT
“
Copyright ©2012 The Nielsen Company. Confidential and proprietary.
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
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QUESTIONS?
Stay Connected to Consumer and Media Trends
For the latest insights, visit us at nielsen.com or contact us:
Phone:
800.553.3727
Email:
CPGSolutions@nielsen.com
Questions regarding the content of this presentation, contact:
Copyright ©2013 The Nielsen Company. Confidential and proprietary.
Carman Allison, email carman.allison@nielsen.com
@CarmAllison
LinkedIn
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Copyright ©2013 The Nielsen Company. Confidential and proprietary.
SNACKING SEGMENT DEFINITIONS
Desserts
Refrigerated
Frozen
Cookies & Crackers
Baked Desserts
Jelly Powders
Puddings
Dessert Powders
Snack Puddings
RTE Gelatin
Natural Cheese
Yogurt
Ice Cream
Frozen Confections
Pizza Snacks
Frozen Yogurt
Water Based Confect.
Cookies
Crackers
Cookie Mixes
Dips
Salty Snack
Fruit & Nuts
Remaining
Salsa
Mexican Dips
Prepared Dips
Meat Sticks
Jerky
Snack Foods
Snacking Nuts/Seeds
Fruit & Apple Sauce
Dry Fruit
Popping Corn
Puffed Cakes
Candied Snacks
Marshmallow Treats
Source: Nielsen Strategic Planner
Confectionery
Chocolate
Candy Confections
NPF
Nutritious Portable Foods
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