Snacking is a Big Eating Occasion
High Growth Expected Across All Day Parts
Day-Part
Total
Snacking
Morning
Snacking
Afternoon
Snacking
Evening
Snacking
$ Size
$87.0B
$18.7B
$33.3B
$35.0B
+3.7%
+5.2%
4yr CAGR
+2.6%
+2.8%
Food & Bev Avg. +3.4%
Projected Growth in Snacking Occasions
(% Chg 2008 to 2018)
Evening Snacking
15%
$68+ Billion Size
Afternoon Snacking
Morning Snacking
20%
23%
Source: NPD Future of Snacking 2009 Report
Double Digit
Snacking Occasion
Growth Projected!
1
Snacking is Big & Growing,
Driven by Better For You (BFY)
• Snack Food Categories are $150 Billion business
• Snacks, particularly Better for You Snacks are outpacing total food growth
Snack Food Categories $150B
Projected Food Growth Rate
CAGR 2010 - 2020
Total Food
$63B
$87B
Breakfast
Lunch / Dinner
Snacks
BFY Snacks
Source: General Mills Consumer Insights
3.4%
3.0%
3.3%
3.7%
5.4%
2
Growth Driven by Long Term Trends
& Need State Evolution
Consumers More Open to Snacking
Old View…The Problem
New View…The Solution
•
Snacks: Empty, high calories
•
Snacking: Real foods, benefits, reduced calories
•
Mindless Eating
•
Healthy “Better For You” Snacking
•
Increased eating occasions, concern about when
eating
•
Balancing food intake to regulate energy levels and
cravings
Source: General Mills Consumer Insights
3
Consumer Desire for Healthier Food Options is Increasing…
Better For You continues to be an emerging consumer trend
• Nearly all are trying to improve at least one aspect of their eating habits1
• More than half of Americans are trying to lose weight1
• Consumer Desire for Healthier Food Options is Increasing2
Stores should carry more healthy snacks/food
options2
3
(% who agree)
64
72
68
Male
75
Female
2007
2010
Source (1): IFICF 2012 Food & Health Survey
Source (2): Mintel Convenience Stores Report, 2007 and Mintel Attitudes Toward Convenience Store Shopping, April 2011
Source (3): Mintel Attitudes Toward Healthy Food – June, 2012
4
Consumers Spend Starting to Match What They Are Saying…
BFY items outpacing category growth1
BFY growth vs. Category
Projected Food Category Growth Rates
2010-2020
45%
38%
40%
Breakfast
35%
% vs. LY
30%
These trends are expected to continue
moving forward2
3.0%
29%
25%
Lunch / Dinner
3.3%
20%
15%
10%
11%
Snacks
3.7%
8%
5%
BFY Snacks
0%
Warehouse Salty
BFY % chg LY
5.4%
Grain
Category % chg LY
Total Yogurt category growing 33% vs. LY1
Better For You = “Healthier Than” Snacks items with Low-Calorie, Clean Label/Simple Ingredients and
other healthy essential to provide consumers with energy to get them through the day.
Source(1): IRI Latest 52 weeks ending 7/19/12
Source (2): State of Snacks Study: December 2011
5
Vending Consumers want Better for You Options, and
some are willing to pay more for these products
Implication:
Need to make sure Better For You Snack Options are available in Machine – Can be as
simple as Pretzels, 100 Calorie Snack Pack and Whole Grain Granola Bar
 76% Vending
Consumers seek
Better for You Snacks
 40% willing to
pay more
 26% Not sure if
they would pay
more
 2/3rds of Consumers
chose Better For You
Snack at least half the time
 Broad definition of Better
for You Snacks, although
most consumers would
say it hits on at least one
of these 3 items
Low Fat
Low Calories
Whole Grain
Automatic Merchandiser, Shapiro Study 2009
Carry Top Better For You General Mills SKUs in
Appropriate Categories
Cereal
Grain
Fruit
Snacks
Salty
Yogurt
7
Yogurt Growth has been a Long-term Trend, Driven by 3
Key Segments
Category $ Sales (Millions)
Store Historical Growth Trend
$45
$40
$35
$30
$25
$20
$15
$10
$5
$2008
2009
GREEK
•
•
•
•
20% of Retail Unit Volume
Protein Benefits
#1 Growing Retail Segment
High Cross Purchase
2010
2011
REGULAR
•
•
•
•
19% of Retail Unit Volume
Taste
Maintains broad appeal
Hispanics
LIGHT
•
•
•
•
19% of Retail Unit Volume
Weight Management
Healthy Living
Boomers & Empty Nesters
8
: IRI Total US Calendar 2008-2011;
AC Nielsen Save Mart/Lucky Corp 13 Weeks Ending 5/26/12;
Yoplait Nielsen AO Bi-Weekly Report, 7/14/12
Yogurt is a go-to healthy snack, and growing
Average person consumes >2 snacks
per day, of which most are “healthy”
2.55
2.55
2.54
All
Male
Yogurt is amongst the largest snack
segments, and growing fastest
Female
Dollar Sales Ranking
1.81
1.79
1.83
Snacks
9
Annual
Growth
Average snacks in a day
Healthy snacks in a day
Source: Mintel Healthy Snacking Consumer, December, 2011
Yogurt amongst Top 4 snack options
considered “healthy”
#1
#2
#3
#4
Fresh Fruit
Raw Vegetables
Nuts/Seeds
Yogurt
86%
73%
71%
70%
Source: Mintel Healthy Snacking Consumer, December, 2011
1.
Choc Candy
+6%
2.
Cookies
+2%
3.
Rem Snacks
+4%
4.
Fresh Produce
+7%
5.
Non Choc Cndy +6%
6.
Ice Cream
7.
Frz Novelties
+4%
8.
Potato Chips
+3%
9.
YOGURT
+9%
10. Chewing Gum
-2%
0%
9
Source: GMI Occasion Landscape, Nielsen, Year Ending 5.2011
Yogurt Growth is Driven by Consumers
80% of US Households Buy Yogurt1
Consumption Has Doubled Over Last 10 Years2
U.S. Household Penetration (%)
+7.5
66.6
74.1
Consumption per Capita
+120%
+6.3
80.2
Trips
+138%
41
$ / Trip
22
19
14
also growing!
Females
2000
2005
+111%
34
10
Children
2001
2011
Top 3 Benefits: Health, Taste, Convenience3
Males
2011
Still Room to Grow Consumption4
Yogurt Per Capita Consumption (Lbs)
Weight Loss
Calcium
Protein
Digestive Health
Fruit/Taste
Kid Fun
Switzerland
Finland
France
Sweden
Portugal
Spain
Germany
Canada
Greece
UK
Australia
Argentina
Japan
Italy
USA
Brazil
Mexico
57
50
45
39
38
37
36
26
22
22
21
18
18
16
15
13
12
U.S. Opportunity
to Grow vs. Countries
with Similar Dairy
Consumption!
1. AC Nielsen Panel 2000, 2005, 2011;
2. NPD SnackTrack 2 years ending June 2010; Children = 2-17 years of age; Adults = 18+ years;
3. The NPD Group’s National Eating Trends® 4. Euromonitor International 2012
Better For You Snacks
GM is introducing items that create credibility
around the health and wellness product class.
Here are a few of our brands:
Grain
Warehouse Salty
Yogurt
Fruit