AUTOMOTIVE BEAUTY COMMERCIAL TECHNOLOGY CONSUMER TECHNOLOGY ENTERTAINMENT FASHION FOOD & BEVERAGE FOODSERVICE HOME OFFICE SUPPLIES Consumption of Fresh Mushrooms SOFTWARE Prepared for The Mushroom Council SPORTS TOYS WIRELESS May 2012 1 Methodology Understanding Fresh Mushroom Consumption Please read the next page carefully Without your understanding of the methodology you may not accurately understand the findings of this research Do not compare these finding to sales data – there is no retail or purchase information in this study This study is based on frequency of consumption (eating occasions) NOT the volume or amount of food consumed What is an “eating”? It is the consumption of an item during an eating occasion The volume (or amount) consumed is not part of the research data base This data includes foods consumed at home – not at foodservice Other Notes: Many large consumer packaged good/food manufacturers utilize similar data to help them better market and sell their products Proprietary and Confidential 2 Methodology Methodology Data Collection Reporting Period Measures • Paper Diary Eatings • Represents an instance of one person eating one food item. Measures frequency; does not reflect the amount consumed at the occasion • • Annual Eatings Per Capita • Average number of times an item is consumed in a given year 14 Days Rolling sample- every week, 50 household begin recording consumption so at any one time 100 households are maintaining diaries Reporting Method • Individual eaters (Kids & Adults) Sample Individuals • The number of people in the data set regardless of whether or not they ate a particular food item Annual Yield • Approximately 2000 Households representing 5000 individuals annually Using Individuals • Used to determine base size Balancing • Balanced to U.S. Census statistics on key demographic and geographic information Time of Day • 14 Daily Diaries consist of separate sections for each meal and snack situation Index • Relative measure indicating if a group is well developed or underdeveloped compared to the rest of the population: • Index <80 is below average • Index >120 is above average Proprietary and Confidential 3 Summary Sizing Fresh Mushroom Consumption About 10% of the population consumes Fresh Mushrooms at least once in an average two week period. The penetration has grown slightly over the past ten years, but has been offset with a slight decline in frequency. Overall, consumption has remained relatively flat. Demographics Adults 55+ are the most likely to consume Fresh Mushrooms, and this population group is projected to grow in the next ten years Fresh Mushrooms should experience a natural increase in consumption if the behavior is adopted as adults age White/Non-Hispanics are the heaviest consumers of Fresh Mushrooms, however Asian consumers are almost twice as likely to consume them Proprietary and Confidential 4 Summary Usage and Consumption Most Fresh Mushrooms are consumed as an additive/Ingredient as opposed to as a base dish When Fresh Mushrooms are used as an additive/ingredient, they are most likely to be used in Homemade/Mix Variety Dishes (driven by skillets), Salad, and Italian Dishes All three of these host foods have increased in consumption over the past 5 years – creating a good opportunity for growth for Fresh Mushrooms Proprietary and Confidential 5 Sizing Consumption of Fresh Mushrooms Proprietary and Confidential 6 Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 7 Individuals who keep fresh mushrooms on hand are more likely to rate themselves as excellent cooks. This has implications for recipe development and increased usage frequency among current consumers. 22.9 In general, how would you rate your own cooking skills and abilities? 14.4 Total Respondents Have Fresh Mushrooms On Hand Source: The NPD Group/ Kitchen Audit 2011 “Excellent – I am an accomplished homechef, capable of creating my own recipes and I can make just about anything with excellent results” Proprietary and Confidential 8 Consumption of Fresh Mushrooms has remained relatively flat over the past decade, declining slightly in recent years Trend of Fresh Mushrooms Consumption In 2011 the average person consumed Fresh Mushrooms 4.2 times Annual Eatings Per Capita 4.2 4.2 4.1 2001 2002 2003 4.5 2004 4.9 2005 4.6 4.6 4.7 2006 2007 2008 Source: The NPD Group/ National Eating Trends (NET); Rolling 2 years ending November 4.6 2009 4.3 4.2 2010 2011 Proprietary and Confidential 9 Over the past few years, more people are eating mushrooms, but they are eating them slightly less frequently. Mushrooms have gained more users, but lost some eating frequency – resulting in a flat consumption rate (see previous chart) In 2011, 10.3% of the population consumed Fresh Mushrooms at least once in a 2 week period Trend of Fresh Mushroom Consumption 9.0 9.3 9.1 9.1 9.7 10.0 9.9 9.5 10.0 9.7 10.3 Consumers of Fresh Mushrooms consume them 1.6 times in a 2 week period 1.8 1.7 1.7 1.9 1.9 1.8 1.8 1.9 1.9 1.7 1.6 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Individual Penetration (in an average two week period) Eatings per Eater (in an average two week period) Source: The NPD Group/ National Eating Trends (NET); Rolling 2 years ending November Proprietary and Confidential 10 Demographics Proprietary and Confidential 11 Demographics of Fresh Mushroom consumers, at a glance Fresh Mushroom Consumers Tend to Be… Adults 55-64 Affluent Empty Nesters and Affluent Traditional families Households with higher incomes ($50,000+) White/Non-Hispanics (and Asians, though a smaller share) 2 Member Households Proprietary and Confidential 12 Adults 55-64 are most likely to consume Fresh Mushrooms Adults 55-64 make up 24% of mushroom consumption and 15% of sample. Therefore, have above average consumption Age of Fresh Mushroom Consumers % Eatings Index to Sample 200 180 160 140 120 100 80 60 40 20 0 Above Average Kids <6 6-12 13-17 Total Adults % Eatings 13.6% % Sample 21.7% 18-34 Y 35-44 45-54 55-64 65+ 4.3% 6.0% 3.3% 86.4% 12.8% 13.3% 17.8% 23.7% 18.8% 6.8% 9.3% 5.6% 78.3% 16.6% 13.6% 16.4% 15.2% 16.5% An index between 80 and 120 is considered average Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 13 The population 55+ is expected to grow in the next two years; Fresh Mushrooms should experience a natural increase in consumption due to more adults 55+ in the population 2021 Population Projections vs. Current Population Population 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2021 Pop 2,500,000 2,000,000 2011 Pop 1,500,000 1,000,000 500,000 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 Age Source: The U.S. Census Bureau Proprietary and Confidential 14 Adult males and females aged 55-64 are more likely to consume Fresh Mushrooms Adult females 55-64 make up 14% of mushroom consumption and 8% of sample. Therefore, they index above average Age/Gender of Adult Consumers of Fresh Mushrooms % Eatings Index to Sample 200 180 160 140 120 100 80 60 40 20 0 Above Average Adult Males 18-34 35-44 45-54 55-64 65+ Adult Females 18-34 35-44 45-54 55-64 65+ % Eatings 40.4% 5.0% 6.5% 8.4% 10.2% 10.2% 46.1% 7.8% 6.9% 9.4% 13.5% 8.5% % Sample 36.4% 7.4% 6.2% 7.7% 7.0% 8.0% 42.0% 9.2% 7.4% 8.7% 8.2% 8.5% An index between 80 and 120 is considered average Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 15 Fresh Mushroom eaters skew toward households with higher incomes and also households with two members 41% of mushrooms are consumed in households with incomes of $70K+ 68% have incomes over $50K+ Household Demographics of Fresh Mushroom Consumers Household Income Household Members % Eatings % Eatings 2.3 6.9 6.3 8.2 8.9 16.5 10.0 14.7 Under $10,000 $10,000 - $19,999 $20,000 - $29,999 $30,000 - $39,999 $40,000 - $49,999 $50,000 - $59,999 $60,000 - $69,999 $70,000 and Over 41.1 19.9 5+ Members 4 Members 17.7 3 Members 2 Members 1 Member 39.7 8.1 Index > 120 indicates above average tendencies Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 16 Although White/Non-Hispanics consume a majority of Fresh Mushrooms, Asian consumers are almost twice as likely to consume them Race/Ethnicity of Fresh Mushroom Consumers % Eatings %Eatings Index to Sample White/Non-Hispanic 87.3 104 Non-White 12.7 81 Black/Non-Hispanic 1.1 18 Hispanic 5.1 96 Asian 5.5 190 Other 1.0 67 Race/Ethnicity Index < 80 indicates below average tendencies Index > 120 indicates above average tendencies Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 17 Consumers of Fresh Mushrooms are more likely to be affluent traditional families and affluent empty nesters 18% of mushrooms are consumed by Affluent Empty Nesters, and they make up 10% of the population Lifecycle of Fresh Mushroom Consumers* % Eatings Index to Sample 200 180 160 140 120 100 80 60 40 20 0 Above Average Affluent Low/Mid Singles Income Singles Dinks Working Single Affluent Low/Mid Affluent Low/Mid Single Parents Parents Trad Income Empty Income Active Families Trad Nesters Empty Seniors Families Nesters Married 75+ Year Active Old Seniors % Eatings 4.8% 7.8% 1.5% 5.2% 4.4% 14.9% 11.3% 17.9% 16.8% 1.7% 8.3% 5.3% % Sample 4.2% 8.4% 2.6% 7.2% 9.1% 10.0% 19.3% 9.9% 14.4% 2.6% 7.1% 5.2% An index between 80 and 120 is considered average *Defined in Appendix Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 18 Understanding the Next Slide Fresh Mushroom Consumption The top number listed on each region is the research sample size of the region The bottom number is the index showing consumption related to the sample In the index, 80 to 120 is considered average consumption For this index, a higher number is better Consumption of Fresh Mushrooms is highest in the New England area, followed by the Pacific and Mountain regions All other regions demonstrate an opportunity to build consumption of Fresh Mushrooms Proprietary and Confidential 19 The Pacific, Mountain and New England regions have a higher propensity to consume Fresh Mushrooms than other regions The Pacific region makes up 14% of mushroom consumption, and is overdeveloped compared to the share of sample they comprise Census Region- Fresh Mushroom Consumption % Eatings, Index to Sample New England 6.3% 162 WN Central 7.6% Pacific 13.9% 139 74 EN Central 19.7% Mid Atlantic 15.2% 97 100 Mountain 8.9% 127 South Atlantic 16.6% ES Central 6.1% WS Central 5.6% 96 79 67 An index between 80 and 120 is considered average Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 20 Understanding the Next Slide Fresh Mushroom Consumption How can consumption be higher in Summer when retail sales have a flatter trend during this time? This research is based on the number of eatings not volume consumed During the Winter holidays a consumer may purchase a till of mushrooms and consume them all in one sitting – this would represent a single eating In Summer, a consumer may purchases a till, but consume just a few mushrooms every day (such as in salads) If the consumer consumed the till over multiple eating occasions, this would represent multiple eatings Mushrooms are, in general, consumed more frequently in Summer Proprietary and Confidential 21 Fresh Mushrooms are slightly more likely to be consumed most frequently in the Summer Summer makes up 28% of mushroom consumption – in the average range Seasonality of Fresh Mushroom Consumption % Eatings, Index to Sample Spring Summer Fall Winter 24.3% 100 28.3% 110 23.1% 92 24.3% 98 The South Atlantic is more likely to eat mushrooms in the summer, while Middle Atlantic and Pacific regions eat more in Spring An index between 80 and 120 is considered average Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 22 Usage Proprietary and Confidential 23 In Home dinner accounts for over 75% of Fresh Mushroom eatings Meal Occasion of Fresh Mushroom Consumption % Eatings 5 Year Pt. Change In Home Dinner -3.0 75.3 In Home Lunch In Home Breakfast 13.5 1.6 11.1 1.3 In Home Main Meals Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 24 Nearly half of all Fresh Mushrooms are prepared on the stove-top Appliance Preparation - Total Dishes Including Fresh Mushrooms (Mushrooms “as-is” and Dishes Including Additive/Ingredient Mushrooms, such as skillets) % Eatings 44.6 Stove Top Stove Top- Fried/Pan Broiled 20.1 29.0 Not Warmed/Not Cooked Uncooked-Raw 6.1 12.8 Oven Oven- Baked/Roasted Grill/BBQ Other Warm Prep 8.8 5.2 Children and Adults 18-44 over-index for using the Grill as an appliance in Fresh Mushroom preparation 8.4 Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 25 Fresh Mushrooms are much more likely to be used as an Additive/Ingredient rather than being consumed “As Is” Fresh Mushrooms as a Base Dish vs. Additive/Ingredient % Eatings (pt change vs. 5 years ago) 10.9 Base Dish +1.6 89.6 Additive/Ingredient -1.4 Note: May add to over 100% due to mushrooms being reported as an ingredient to mushroom dish Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 26 When Fresh Mushrooms are used as a base dish they are most likely consumed as a side dish 81% of base dish mushrooms (eaten as-is) are eaten as a side dish at the meal When mushrooms are used in other dishes, 72% of the time that dish is the main dish Dish Position of Fresh Mushrooms as a Base Dish vs. Additive/Ingredient % Eatings AO/NR Dsh Pos 21.0 Side Dish 80.7 Main Dish 71.9 Appetizer Base Dish Fresh Mushrooms Additive/Ingredient Fresh Mushroms AO/NR Dsh PO = All Other/Not Reported Dish Position Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 27 When additive/ingredients are included in the base dish, butter/margarine is used nearly half of the time. Garlic is the top spice used with Fresh Mushrooms. Top Additives/Ingredients to Base Dish Fresh Mushrooms % Eatings Butter/Margarine Butter 29.9% Spices/Seasonings Garlic 21.5% Vegetables Onions 12.1% 46.7 22.4 21.5 Source: The NPD Group/ National Eating Trends (NET); 3 years ending November 2011 Cells in Italics represent less than 35 using individuals, please use directionally Proprietary and Confidential 28 When Fresh Mushrooms are being consumed, Beef is most likely to be at the meal Top Main Dishes Consumed Alongside Base Dish Fresh Mushrooms % Meals including Base Dish Fresh Mushrooms Beef 35.1 Vegetables 17.7 Poultry Sandwiches Seafood Steak 22.1% 15.6 6.5 6.5 When mushrooms are eaten as a base dish at a meal, 35% of the time beef is the main dish Source: The NPD Group/ National Eating Trends (NET); 3 years ending November 2011 Cells in Italics represent less than 35 using individuals, please use directionally Proprietary and Confidential 29 Homemade/Mix Variety Dishes, Salads, and Italian Dishes are the top foods where Fresh Mushrooms are added Top Host Foods for Additive/Ingredient Fresh Mushrooms % Eatings Homemade/Mix Variety Dishes 23.0 Salads 20.1 Italian Dishes 10.6 Eggs Omelettes 10.5 Pizza Vegetables Skillet: 12.3% Oven: 3.5% Other Appl: 6.9% 5.7 5.3 Soup 4.3 Sandwiches 4.2 Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 When mushrooms are used in other dishes, 23% of the time they’re in a homemade/mix variety dish Proprietary and Confidential 30 The top 3 food categories Fresh Mushrooms are added to have grown over the past five years. This is a great opportunity for mushrooms! The average person eats Salads 64 times a year Trend of Top Host Foods for Add/Ing Fresh Mushrooms Annual Eatings Per Capita 24.8 25.3 26.0 27.1 25.2 24.9 24.1 27.2 24.6 64.3 64.1 62.9 62.0 62.2 62.7 64.7 25.6 27.1 27.4 26.3 25.5 25.0 25.6 27.6 27.2 3.1 1.3 67.0 66.5 64.0 64.0 27.4 27.9 27.7 29.3 4.3 5 Year Pt. Change 2001 2002 2003 2004 2005 2006 Homemade/Mix Variety Dishes 2007 Salads 2008 2009 2010 2011 Italian Dishes Source: The NPD Group/ National Eating Trends (NET); Rolling 2 years ending November Proprietary and Confidential 31 When Fresh Mushrooms are included in the top host foods, they are added a little over 1% of the time Mushrooms are included in Italian dishes 1.4% of the time Inclusion Rate of Fresh Mushrooms in Top 3 Foods % Host Food Eatings Including Fresh Mushrooms 1.4% 1.4% Homemade/Mix Dishes Italian Dishes 1.1% Salad (other than Pizza) Source: The NPD Group/ National Eating Trends (NET); 2 years ending November 2011 Proprietary and Confidential 32 Summary Proprietary and Confidential 33 Summary Sizing Fresh Mushroom Consumption About 10% of the population consumes Fresh Mushrooms at least once in an average two week period. The penetration has grown slightly over the past ten years, but has been offset with a slight decline in frequency. Overall, consumption has remained relatively flat. Demographics Adults 55+ are the most likely to consume Fresh Mushrooms, and this population group is projected to grow in the next ten years Fresh Mushrooms should experience a natural increase in consumption if the behavior is adopted as adults age White/Non-Hispanics are the heaviest consumers of Fresh Mushrooms, however Asian consumers are almost twice as likely to consume them Proprietary and Confidential 34 Summary Usage and Consumption Most Fresh Mushrooms are consumed as an additive/Ingredient as opposed to as a base dish When Fresh Mushrooms are used as an additive/ingredient, they are most likely to be used in Homemade/Mix Variety Dishes (driven by skillets), Salad, and Italian Dishes All three of these host foods have increased in consumption over the past 5 years – creating a good opportunity for growth for Fresh Mushrooms Proprietary and Confidential 35 Appendix Proprietary and Confidential 36 Lifecycle Definitions Group Names Demographic Description I. Singles 1. Affluent 2. Low/Mid Income Under 65 Years Old Household Income More than $32K per Year Household Income $32K per Year II. Working Women 3. DINKS 4. Working Parents 5. Single Parents Couples <45 Years, No Children <18, Both Employed FT Age of Homemaker <65 Years, Married w/Children, Both Spouses Employed FT Household Head (Typically Female) <65, No Spouse, Children Present III. Traditional Families 6. Affluent 7. Low/Mid Income IV. Empty Nesters V. Married w/Children <18 Years Present, Female Head <65, Only 1 Spouse Employed FT Per Capita Income More than $13K per Year Per Capita Income $13K per Year Middle Age Households 45-64 No Children <18 Years Present 8. Affluent 9. Low/Mid Income Per Capita Income More than $28K per Year Per Capita Income $28K per Year Seniors 10. Single Active 11. Married Active 12. 75+ Female Head (or Male Head if No Female Present) Age 65+ Single and Between 65 and 74 Years Old Married and Between 65 and 74 Years Old 75+ Years Old Proprietary and Confidential 37