SLICING UP
SWEETNESS:
SEGMENTATION STUDY UNCOVERS HOW
CONSUMER ATTITUDES AND BEHAVIORS TOWARD
SWEETENED PRODUCTS AFFECT YOUR BRAND
Attitudes
Behaviors
Values
SLICING UP SWEETNESS
SEGMENTATION STUDY UNCOVERS HOW CONSUMER ATTITUDES
AND BEHAVIORS TOWARD SWEETENED PRODUCTS AFFECT YOUR BRAND.
In today’s diverse marketplace of sweetener solutions,
food and beverage business decision-makers can
become overwhelmed by the wealth of studies,
viewpoints and opinions put forth by manufacturers,
scientists and consumers alike. Amid all the confusion
around the benefits and risks of specific ingredients, it
begs the question:
How do food and beverage marketers know they
are making the right formulation choices to bring
to market products that people will buy?
Enter the Sweetener360, a study that sought to separate
the fact from fiction about sweeteners for a range of
food and beverage products. This unprecedented study
is critical to the food and beverage industry because
it arms product developers and marketers with the
complete picture of how consumer attitudes about
sweeteners really affect shopping behavior for specific
products and brands—within the context of six distinct
consumer lifestyle segments.
The Sweetener360 brings together the results of online
surveys completed by primary shoppers of Nielsen’s
Homescan Panel and hundreds of hours of in-home video
journals. In addition, actual purchases from the Nielsen
Homescan panelists were tracked from May 2012 through
May 2013.
The study revealed six distinct lifestyle segments of
consumers who buy products with various sweetener
types and sought to determine:
• What are the top motivators for buying specific foods
and beverages?
• Do consumers who say they actively pursue a healthy
lifestyle and avoid total sugars still buy sweetened
products at the same rate as other segments?
• Are consumers avoiding specific sweeteners, total
sugars or calories?
UNPRECEDENTED 11,000 SURVEYED
The Sweetener360 is a custom research study
commissioned by the Corn Refiners Association and
completed in part by Nielsen and Mintel Consulting.
This study is unprecedented because of its breadth and
depth of data. Conclusions are based on what more
than 11,000 consumers really think about nutritive and
non-nutritive sweeteners and what motivates their
purchasing behavior.
2
SLICING UP SWEETNESS
CONSUMER SEGMENTATION
UNDERSTANDING THE CONSUMER LIFESTYLES REFLECTED
IN THE SIX SEGMENTS.
The six distinct lifestyle segments identified account
for 88 percent—or $54.8 billion—in sales across 15
high-volume food and beverage categories, including
carbonated soft drinks, bread and yogurt.
Half of the six segments are not concerned with health
news and sweeteners. The other half, however, are
much more aware and say they are considerate of their
health when making purchase decisions.
INTRODUCING THE SIX SEGMENTS
18%
US HH
9%
US HH
13%
US HH
SANDRA:
WALTER:
TERESA:
MAKING ENDS MEET
BUSY LIFE, TASTE OVER HEALTH
IN HIS OWN WORDS:
IN HER OWN WORDS:
IN HER OWN WORDS:
NO HEALTH WORRIES
“
THE WAY I EAT TODAY IS NOT VERY
HEALTHY, BUT IT MAKES ME HAPPY.
AS LONG AS IT TASTES GOOD, [MY
FAMILY WILL] EAT IT. NUTRITIONAL
STUFF, FOR SOME REASON, IS NOT
VERY IMPORTANT TO ME.”
- From in-home video journals
”
“
I’M NOT WORRIED ABOUT HFCS.
I DON’T LIKE MY KIDS FEELING
DEPRIVED. [IF THEY DO] THEY WILL
EAT EVERYTHING THAT’S BAD FOR
THEM AT SOMEONE ELSE’S HOUSE.
RIGHT NOW, IT’S ABOUT HOW FAR
[MY FAMILY] CAN GO ON A LIMITED
AMOUNT OF MONEY.
- From in-home video journals
”
A DEEPER GLIMPSE:
A DEEPER GLIMPSE:
A “can of soup” is most likely on the menu
for this segment. Consumers within this
segment don’t spend much time in the
kitchen. These non-married Caucasians,
who are the most likely of all segments to
reside in the South, don’t follow sweetener
news. Walter’s segment is primarily driven
to buy products that taste good. Perhaps
these motivations and behaviors reflect
how Walter’s segment has the least health
concerns of all segments.
Contributing the most to total sales in
several different sweetener categories
and retail channels, Teresa’s segment could
be referred to as the “super shoppers.”
Marketers can lose this critical segment
with high prices. The most deal oriented
of all segments that don’t heavily follow
sweetener news, Teresa’s segment often
buys good-tasting products that are also
discounted. The largest number
of consumers within this segment lives
in the South and identifies as being
African-American.
SLICING UP SWEETNESS
“
I EAT A BROAD RANGE OF FOOD. I
DON’T NECESSARILY WANT TO EAT
HEALTHY, BECAUSE I LIKE FOOD.
WHEN YOU’RE NOT HOME AT NIGHT
AND RUNNING KIDS TO ACTIVITIES
IT’S HARD AND MORE EXPENSIVE
TO EAT HEALTHY. MY ALLEGIANCE
IS TO MY WALLET.”
- From in-home video journals
A DEEPER GLIMPSE:
”
Sandra’s segment is too busy keeping up
with teenagers to read up on the latest
sweetener news or to care too much about
healthy foods. Of all segments, Sandra’s is
the most likely to live in the Central U.S.
This segment also has the second fewest
health concerns and is the only segment
that does not specifically avoid sweets
or sugars. But, Sandra’s segment is trying
to avoid fast foods, fried foods and foods
containing salt and sodium.
3
INTRODUCING THE SIX SEGMENTS
15%
US HH
16%
US HH
JULIA:
JOAN:
DIABETICS & DIETERS
HEALTHY BALANCE
SEEKERS
STACEY:
IN HER OWN WORDS:
IN HER OWN WORDS:
IN HER OWN WORDS:
“
I BECAME VERY CONCERNED ABOUT
[MY HEALTH ISSUES]. I’VE REALLY
TRIED TO CHANGE MY DIET AND EAT
HEALTHIER. I GO BACK TO SOME OF
MY BAD EATING STYLES. I THINK
ARTIFICIAL SWEETENERS ARE
BETTER THAN SUGAR. MODERATION
IS IMPORTANT.”
- From in-home video journals
A DEEPER GLIMPSE:
”
At one time this segment called itself a
“food junkie,” but today, high incidence
rates of type 1 and type 2 diabetes dictate
more healthy attitudes toward food and
beverages. This segment contains the
largest representation of Hispanic female
heads of household. The majority of
consumers within this segment reported
being seniors who live in the South or
East. Although a strong majority of Joan’s
segment believes sweetening ingredients
impact long-term health, taste and price
are still the top considerations when
buying products. Still, this segment is
a critical contributor to products with
low-/no-calorie sweeteners.
ALL NATURAL
“
I FEEL LIKE A PRETTY INFORMED
CUSTOMER; I’M ALWAYS READING
LABELS. I WANT TO KNOW WHAT’S
GOING INTO MY BODY. I DON’T
WANT TO BUY ANYTHING ARTIFICIAL
OR PROCESSED. I TRY TO FIND A GOOD
BALANCE BETWEEN [PRODUCTS] BEING
HEALTHY AND REASONABLY PRICED.
- From in-home video journals
A DEEPER GLIMPSE:
”
This segment juggles the demands of a
professional career with the adventurous
whims of young children. Actively trying
to instill healthy eating habits in its
children, this segment claims to avoid
any type of artificial sweeteners. This
segment believes artificial sweeteners
are unhealthy and unnatural. Nearly
half of this segment keeps up with the
latest sweetener news and notices when
nutritional information on labels change.
Even though this segment is healthconscious, it’s also critical that products
taste good and are at an affordable price
to be purchased.
These six segments unlock actionable insights for
any marketers looking to tap into the $54.8 billion in
sales that they represent. Furthermore, each segment,
regardless of commitment to a specific lifestyle, is
a very important purchaser of products containing
sugar, HFCS and low-/no-calorie sweeteners.
4
17%
US HH
“
IN COMPARISON TO AMERICA IN
GENERAL, [MY FAMILY] ARE VERY
HEALTHY EATERS. I SCOUR THE
INTERNET FOR WAYS TO EAT HEALTHIER,
AND I RESEARCH WHAT GOES INTO MY
FOOD AND READ [NUTRITION] LABELS
AT THE STORE. IT DOESN’T MATTER
WHAT THE FOOD COSTS, IF IT’S
HEALTHY WE HAVE TO BUY IT.
- From in-home video journals
A DEEPER GLIMPSE:
”
No other segment is as health conscious
as Stacey’s. This segment reads nutrition
labels, is actively involved in sweetener
discussions online and is very cautious
of low-/no-calorie sweeteners. In fact,
this segment believes consumers vote
with their wallets. If this is true, Stacey’s
segment votes for natural product
retailers. Stacey’s is the only segment
that is not primarily motivated by price.
Instead, this segment looks for products
that are part of a balanced diet and are
not overly processed. But, good taste is
still extremely important for this segment
when it’s choosing what to buy. This
segment consists of the most female
heads of household who are currently not
working and reside in either the South
or East. Stacey’s segment is the most
ethnically diverse—with 75 percent of its
consumers identifying as being AfricanAmerican, Asian or Hispanic.
The Sweetener360 is a custom research study commissioned by the Corn Refiners Association
and completed in part by Nielsen and Mintel Consulting. Based on data reported by Nielsen
through its PanelViews Survey Service from a custom online survey fielded among primary
grocery shoppers in the US in May 2013. Copyright © 2013, Nielsen. Regions determining
segment’s residence are aligned with how the U.S. Census defines geographical regions.
SLICING UP SWEETNESS
POWERFULLY SWEET COMBINATIONS
DESPITE DIFFERENCES AMONG SEGMENTS, KEY SIMILARITIES REVEAL
BIG OPPORTUNITIES FOR FOOD AND BEVERAGE MARKETERS.
Across the 15 tracked categories, research shows
that consumers buy sweetened food and beverage
products proportionately to their makeup of the general
population. In fact, spending does not differ greatly
across different lifestyles and sweetener types.
Here are some key trends for these six segments that
account for 88 percent of all purchases and $54.8 billion
in sales for the 15 tracked categories:
• Two segments (Walter’s and Sandra’s) account for
22 percent of the population and share a trait that
drives much of their behavior—neither has many
health issues. Consequently, both of these segments
pay very little attention to sweeteners or other
ingredients.
• Two segments (Julia’s and Stacey’s) account for 32
percent of the population. These two segments are
very engaged in learning about nutrition. Both claim
to be extremely careful and cautious about what
types of foods and beverages they buy. Together,
they represent 70 percent of sales in the natural
shopping channel such as Whole Foods and Trader
Joe’s. But, these segments also spend their fair share
in conventional retail channels.
• Teresa’s is the largest segment, accounting for 18
percent of the population. In fact, this segment
best represents middle-class America, so closely
reflecting national averages that Teresa’s segment
is a likely target for most major CPG companies.
• Joan’s segment contains the largest number of
diabetics and dieters, which dictate a great
deal of their behaviors toward food and beverages.
Representing 16 percent of the population,
this segment is a key contributor to sales for
low-/no-calorie sweetener products.
EVERY SEGMENT BUYS PRODUCTS MADE
WITH EVERY TYPE OF SWEETENER
19%
16%
15% 15%
13%
12%
20%
19%
19%
17%
20%
18% 17%
15%
12%
9%
14% 13%
14%
13% 13%
12%
12%
11% 10%
13%
11%
7%
All Grocery
$54.8 B
Other
Sugar Formulated
$9.7 B
HFCS Formulated
$7.1 B
Walter (9% US HH)
Teresa (18% US HH)
Sandra (13% US HH)
Joan (16% US HH)
Julia (15% US HH)
Stacey (17% US HH)
SLICING UP SWEETNESS
No/Low Sugar
Formulated
$4.3 B
Sales are naturally projected totals, based on Nielsen Homescan
Panel projections from the purchases of 11,389 panelists across 15
tracked categories during May 27, 2012 through May 25, 2013.
5
TASTE AND PRICE
CONSUMERS ARE INFLUENCED MORE BY TASTE AND PRICE THAN
HEALTH CLAIMS.
More than three-fourths of consumers surveyed listed
these as top motivations for buying: good-tasting food
(90 percent), good value for the price (82 percent) and a
price I can afford (80 percent). In fact, even 79 percent of
consumers are influenced to buy something they know
their children will like. Very few consumers identified as
being “foodies”; rather, they see food as simply fuel to
get them and their families through each day.
HOW IMPORTANT IS EACH OF THE
FOLLOWING WHEN DECIDING WHAT FOOD
OR BEVERAGE PRODUCTS TO BUY FOR
YOU OR YOUR HOUSEHOLD?
TOP FIVE INFLUENCES WHEN BUYING FOOD AND BEVERAGES
6
9%
US HH
18%
US HH
Walter (9% US HH)
Teresa (18% US HH)
Sandra (13% US HH)
Joan (16% US HH)
Julia (15% US HH)
Stacey (17% US HH)
13%
US HH
16%
US HH
15%
US HH
17%
US HH
The Sweetener360 is a custom research study commissioned by the Corn Refiners Association
and completed in part by Nielsen and Mintel Consulting. Based on data reported by Nielsen
through its PanelViews Survey Service from a custom online survey fielded among primary
grocery shoppers in the US in May 2013. Copyright © 2013, Nielsen.
SLICING UP SWEETNESS
TASTE AND PRICE ARE THE TOP MOTIVATORS
FOR 5 OUT OF 6 SEGMENTS
Sixty-seven percent of consumers agree that to be healthy, moderation is
more important than sweetening ingredients. Furthermore, even Stacey’s
and Julia’s segments, the most focused on healthy ingredients, don’t feel
that taste should be sacrificed for healthier products. Food and beverage
companies would do well to focus on products that satisfy the true needs
of their broad base of heavy buyers rather than stigmatize any type of
sweetener as a strategy to build loyalty.
WHEN ASKED IF IT’S WORTH IT TO SACRIFICE TASTE FOR
HEALTHIER FOOD AND BEVERAGE, EVERY SINGLE SEGMENT
—EVEN THE HEALTH-CONSCIOUS ONES—FELT IT WASN’T
WORTH IT TO SACRIFICE TASTE.
only
.8%
SAY IT IS
WORTH IT
WALTER
(9% US HH)
only
SLICING UP SWEETNESS
only
6.2%
SAY IT IS
1.5%
SAY IT IS
TERESA
(18% US HH)
SANDRA
(13% US HH)
WORTH IT
only
WORTH IT
only
8.9%
SAY IT IS
6.3%
SAY IT IS
33.8%
JOAN
(16% US HH)
JULIA
(15% US HH)
STACEY
(17% US HH)
WORTH IT
The Sweetener360 is a custom research study commissioned by
the Corn Refiners Association and completed in part by Nielsen
and Mintel Consulting. Based on data reported by Nielsen through
its PanelViews Survey Service from a custom online survey
fielded among primary grocery shoppers in the US in May 2013.
Copyright © 2013, Nielsen.
only
WORTH IT
Say it’s NOT worth
it to sacrifice taste
for healthier food
SAY IT IS
WORTH IT
Say it IS worth it to
sacrifice taste for
healthier food
7
SAY VS. DO
CONSUMERS SAY THEY AVOID SPECIFIC SWEETENING
INGREDIENTS BUT PURCHASE BEHAVIOR SHOWS THEY DON’T.
Consistent with several surveys done since 2010, the Sweetener360 study
found that 75 percent of consumers say they regularly or occasionally read the
nutritional information or list of ingredients on food and beverage labels or
packages. Yet, in unaided responses, only 4.6 percent read such nutritional
information to avoid high fructose corn syrup (HFCS) specifically. So, they’re
more interested in avoiding total sugars than a specific type of sweetener.
More than 50 percent of consumers say they are actively pursuing a healthy
lifestyle and avoid sugars. However, actual purchase data reveals that they
still buy sweetened products at the same rate as other segments.
TOP MOTIVATORS FOR BUYING:
GOOD TASTING, GOOD VALUE
FOR THE PRICE, A PRICE I CAN
AFFORD, SOMETHING I KNOW
MY KIDS WILL LIKE.
Source: Sweetener360 study, 2013
TOP 5 FOOD, BEVERAGES AND INGREDIENTS SEGMENTS CLAIM TO AVOID
ITEM 1
ITEM 2
ITEM 3
ITEM 4
ITEM 5
8
Walter (9% US HH)
Teresa (18% US HH)
Sandra (13% US HH)
Joan (16% US HH)
Julia (15% US HH)
Stacey (17% US HH)
The Sweetener360 is a custom research study commissioned by the Corn Refiners Association
and completed in part by Nielsen and Mintel Consulting. Based on data reported by Nielsen
through its PanelViews Survey Service from a custom online survey fielded among primary
grocery shoppers in the US in May 2013. Copyright © 2013, Nielsen.
SLICING UP SWEETNESS
ACTUAL PURCHASE DATA TELLS A DIFFERENT STORY
Ultimately, consumers’ actual purchase data tells a story that’s quite different than what their self-reported claims
would suggest. Despite what consumers say, the taste and price of products seem to be more realistic drivers of
purchase behavior. Even the segments that emphatically vocalize sweetener concerns are surprisingly not buying
the brands that tout healthy-lifestyle formulations.
PRODUCT CATEGORY INSIGHTS
15 HIGH-VOLUME PRODUCT
CATEGORIES REVIEWED
CARBONATED SOFT DRINKS
BREAD
JAMS &
JELLIES
COLD
CEREAL
CARBONATED
BEVERAGES
SPORTS
DRINKS
FRUIT
DRINKS
FLAVORED
MILK
SPAGHETTI
SAUCE
YOGURT &
YOGURT DRINKS
Four of the six segments (Walter, Teresa, Sandra and Julia) claim to avoid
soda, but actual purchase data clearly shows that isn’t the case. Each of these
segments is an important contributor to carbonated soft drink sales—with
data identifying their favorite brands to buy.
•Sandra’s segment contributes to more carbonated soft drink sales for
products sweetened with sugar (19 percent of sales) and HFCS (18
percent of sales) than any other segment. The top two brands this segment
purchases are Pepsi and Coca-Cola.
•Teresa’s segment accounts for 21 percent of sales for sodas formulated with
low-/no-calorie sweeteners, even though 48 percent of this segment claims
to avoid soda.
•Both Stacey’s and Julia’s segments, which tend to be the most health
conscious, seem to prefer Sprite and Sierra Mist to any dark sodas.
PERCENT OF CARBONATED SOFT DRINK SALES
18%
17%
16%
SALAD
DRESSING
KETCHUP
FLAVORED
STILL WATER
CEREAL BARS
SLICING UP SWEETNESS
COOKIES/CAKES
/PASTRIES
SNACK
CRACKERS
15%
13%
9%
Walter
Teresa
Sandra
Joan
Julia
Stacey
% of US Households
Pepsi
Coca-Cola
Dr Pepper
Sprite
Sierra Mist
9
PRODUCT CATEGORY INSIGHTS
BREAD
DISSECTING THE BUZZ
DO CONSUMER CLAIMS MATCH
HOW THEY ACTUALLY BUY?
Product reformulation is a
costly undertaking for many
food and beverage companies,
but that hasn’t stopped several
companies from making
ingredient changes. Take Yoplait,
a brand that recently overhauled
its yogurt line to remove HFCS,
citing consumer concerns. But
there’s also Hunt’s ketchup that
joins ranks with Miracle Whip,
Capri Sun and Powerade—all
products that removed HFCS
and then quietly reintroduced it
back into their ingredients mix.
ConAgra, which owns Hunt’s,
specifically said it made the
switch back to HFCS because
there wasn’t enough demand for
the altered, non-HFCS version.
But, if these companies were
only listening to what consumers
claim they are doing, instead
of looking at actual purchasing
data, these expensive efforts
to overhaul product lines and
brand messaging may not have
happened. What consumers
claim to be doing in the grocery
aisles doesn’t always match up
with how they actually buy food
and beverage products.
Teresa’s and Joan’s segments spend more than their fair share on bread made
with HFCS, contributing to more than 50 percent of HFCS-sweetened bread
sales. This is especially interesting, because Joan’s segment claims to avoid
too much sugar for serious health reasons.
PERCENT OF BREAD SALES
18%
16%
13%
17%
15%
9%
Walter
Teresa
Sandra
Joan
Julia
% of US Households
Sara Lee
Nature’s Own
Oroweat
Stacey
Arnold’s
YOGURT
Although Stacey’s and Julia’s segments seem like ideal consumers for
Yoplait’s non-HFCS product, neither of these segments is buying this brand.
Instead, Stacey, of all segments, is most likely to purchase Chobani. Julia buys
both Dannon Oikos and Chobani yogurts. It’s actually segments that are less
concerned about HFCS that are choosing to buy Yoplait (Walter and Sandra).
For other segments that buy Yoplait (Teresa and Joan), their contributions are
pretty equal with what they spend on other tracked brands in this category—
there are no clear favorites.
PERCENT OF YOGURT SALES
18%
13%
17%
16%
15%
9%
SOURCE: “ConAgra Rethinks Ketchup” article from
Omaha World-Herald, 2012
Walter
Teresa
The Sweetener360 is a custom research study commissioned by the Corn Refiners Association and
completed in part by Nielsen and Mintel Consulting. Based on data reported by Nielsen through its
PanelViews Survey Service from a custom online survey fielded among primary grocery shoppers
in the US in May 2013. Copyright © 2013, Nielsen.
10
Sandra
Joan
Julia
% of US Households
Dannon
Yoplait
Chobani
Stacey
Dannon Oikos
SLICING UP SWEETNESS
EVERY SEGMENT IS SIGNIFICANT TO SALES
WHAT CONSUMERS SAY ONE DAY MAY NOT FOLLOW WHAT THEY DO
NOW AND TOMORROW.
The Sweetener360 study bridges the gap between
what consumers say in regard to their feelings about
sweetened food and beverage products and what
consumers actually choose to spend their money on
come checkout time.
Actual purchase data shows that consumers aren’t
necessarily buying products that align with their
proclaimed lifestyles and eating habits. While
consumers say they avoid specific ingredients, their
purchase behavior shows they do not. The research
shows that consumers buy sweetened food and
beverage products proportionately to their makeup
of the general population. In fact, spending does not
differ greatly across different lifestyles and sweetener
types. Ultimately, it’s the taste and price of products that
primarily influence consumers’ purchase decisions.
This research looked at a cross-section of actual
consumers’ purchases in 15 tracked categories. These
consumers represent a $54.8 billion market, and each
one is an important purchaser of products containing
sugar, HFCS, and low-/no-calorie sweeteners. As the
research shows, there is a marked difference between
what consumers say and what they actually do when
it comes to their shopping habits. While many food
and beverage marketers may be focused on what one
primary segment says it does, it is important to look
at all the segments to develop successful sweetener
strategies.
HOUSEHOLD DEMOGRAPHICS
Walter (9% US HH)
Teresa (18% US HH)
Sandra (13% US HH)
Joan (16% US HH)
Julia (15% US HH)
Stacey (17% US HH)
SLICING UP SWEETNESS
The Sweetener360 is a custom research study commissioned by the Corn Refiners Association
and completed in part by Nielsen and Mintel Consulting. Based on data reported by Nielsen through
its PanelViews Survey Service from a custom online survey fielded among primary grocery
shoppers in the US in May 2013. Copyright © 2013, Nielsen. Regions determining segment’s
residence are aligned with how the U.S. Census defines geographical regions.
11
Methodology
The Sweetener360 was a two-part study. In part one,
11,695 primary household shoppers from the Nielsen
Homescan Panel completed online surveys with
30 questions. Later, this same number of panelists
submitted in-home video journals. In total, hundreds
of hours of data on consumer attitudes and behaviors
toward food and beverages were submitted.
For part two: 11,389 of the panelists from part one’s
actual purchase data was tracked for a 52-week
period—from May 27, 2012 through May 25, 2013. The 3
percent change in panelists being analyzed was due to
some panelists not meeting the necessary frequency for
documenting actual purchases.
The 15 food and beverage categories that were used to
track actual purchases were bread, ketchup, cookies,
cold cereal, cereal bars, ice cream, jams and jellies,
salad dressing, carbonated soft drinks, flavored milk,
fruit drinks, sports drinks, flavored still water, spaghetti
sauce and yogurt.
For food and beverage marketers who want to
confidently create products consumers will buy,
visit cornnaturally.com/sweetener-360 to schedule
a free onsite customized presentation. Using the
Sweetener360 segmentation to compare consumer
attitudes with purchase behavior around up to five
of your brands, the analysis will uncover your light,
medium and heavy brand buyers, showing the
differences in what consumers say and what they
actually do when purchasing your products.
SLICING UP SWEETNESS