Bridging the Gap To Target Millennials and Hispanics Presentation for Glass Packaging Institute, Nov 2014 Linda Gilbert, CEO & founder of EcoFocus Worldwide © EcoFocus® Worldwide 2014 1 “Customers who were once regarded as a niche marketing opportunity now represent the majority of spending growth in the United States.” © EcoFocus® Worldwide 2014 2 A growing Hispanic market offers opportunities for glass Expenditures by Hispanic food shoppers are forecasted to reach $86 billion in 2018 Cumulative growth > 28% Compound annual growth rate (CAGR) > 5% Source: Packaged Facts, Oct.15.2014 © EcoFocus® Worldwide 2014 3 Hispanics are not only growing faster – they are younger 80% 18 to 45 years 50% are Millennials ages 21-35 years © EcoFocus® Worldwide 2014 4 Many Hispanics have young families, less education or income Lower education Live in larger households 3.5 persons in HH 53% less than college grad vs. 2.8 GPOP Parents 72% more likely to have children vs. GPOP Less income 71% less than 42% $75K Live in state with return deposit for glass © EcoFocus® Worldwide 2014 5 Hispanics shop with health & environment in mind 10% more likely than GPOP to always or usually take health or environmental reasons into consideration when choosing what to buy. © EcoFocus® Worldwide 2014 6 The Hispanic Target – a snapshot Eco-Attitudes Eco-Practices • Highly concerned about climate change, landfills, family economic security • Taking actions that save money: turn off water, unplug, shopping bags, refill containers at store • Optimistic about the impact of their efforts • Are a source of information for friends and family • Connect better health with eco-friendly lifestyles • Seek out Info on packages and the internet • Want to set example of eco-friendly behavior for family • Willing to change brands for more eco-friendly choice; somewhat willing to pay more Eco-Healthy Choices Eco-Packaging • Changing what they buy to reduce exposure to chemicals from packaging • Making changes due to type or amount of packaging • High safety concerns about microwaveable plastic packaging; average on BPA • Recyclable and Renewable matter; most likely segment to look for and use Refillable • Health and environmental impact of packaging does influence purchase choice • Company commitment to recyclable or renewable packaging is a significant purchase influence • Have some uncertainty or confusion about glass • Prefer glass bottle for water and beer © EcoFocus® Worldwide 2014 7 Glass has eco-friendly credentials across categories, among Hispanics and GPOP Hispanic Index to GPOP Glass is most eco-friendly package for milk (22%) 105 Glass is most eco-friendly package for tomato sauce (45%) 82 Glass is most eco-friendly package for soup (37%) 94 Recyclable glass bottle is most eco-friendly package for wine (40%) 97 Returnable glass bottle is most eco-friendly package for wine (27%) 105 © EcoFocus® Worldwide 2014 8 Hispanics are using less glass in favor of cans and plastic Hispanic Index to GPOP Using foods and beverages in glass containers more often 100 Using foods and beverages in glass containers less often 128 Using beverages packaged in single serve plastic bottles more often 126 Using foods and beverages in cans more often 120 © EcoFocus® Worldwide 2014 9 When buying wine, Hispanics are more likely to have a disposition for returnable Hispanic Index to GPOP Prefer returnable glass bottle when buying wine (15%) 113 Prefer recyclable glass bottle when buying wine (55%) 97 Returnable glass bottle is most eco-friendly package for wine (27%) 105 Recyclable glass bottle is most eco-friendly package for wine (40%) 97 © EcoFocus® Worldwide 2014 10 Hispanics show some uncertainty or confusion about glass Hispanic Index to GPOP Glass beverage packaging has a positive impact on health (58%) 111 Glass beverage packaging has a positive impact on environment (80%) 104 Glass beverage packaging has a negative impact on health (10%) 150 Glass beverage packaging has a negative impact on environment (13%) 124 Glass is 100% recyclable and can be recycled endlessly without loss in quality or purity (60%) 93 © EcoFocus® Worldwide 2014 11 Like other Americans, about one in five Hispanic shoppers “don’t know” if glass is the most eco-friendly packaging Hispanic Index to GPOP Don’t recycle because don’t know if glass is recyclable where I live (24% of those who sometimes, rarely, never recycle glass) 109 Don’t know if glass, carton, or plastic is most eco-friendly package when buying milk (9%) 118 Don’t know if glass, can, or plastic is most eco-friendly package when buying tomato sauce (20%) 97 Don’t know if glass, can, or plastic is most eco-friendly package when buying soup (22%) 95 Don’t know if recyclable bottle, returnable bottle, or bag-in-box is most ecofriendly package when buying wine (22%) 91 © EcoFocus® Worldwide 2014 12 The Millennial Target – a snapshot Eco-Attitudes Eco-Practices • High concerns about climate change, landfills, loss of natural resources • Least likely generation to act on beliefs about recycling, energy • Connect better health and QOL with eco-friendly lifestyles • Willing to boycott companies for less responsible environmental or social practices • Have good intentions, see value in eco-friendly choices • Willing to pay more for healthier and eco-friendly products • Optimistic about the impact of their efforts • Shop on-line instead of going to a store Eco-Healthy Choices • Changing what they buy to reduce exposure to chemicals from packaging • High safety concerns about plastic food and beverage packaging, BPA, microwaveable plastic packaging, phthalates • Health and environmental impact of packaging does influence product choice © EcoFocus® Worldwide 2014 Eco-Packaging • Making changes due to type/amount of packaging • Actively seeking renewable packaging, beverage packaging that uses less plastic • Least likely to recognize that glass is renewable • Most likely to be using foods and beverages packaged in glass more often 13 A Key Population to Better Understand Is Younger Hispanics 19% of Millennials are Hispanic, vs. 14% GPOP © EcoFocus® Worldwide 2014 14 How do we leverage consumer insights to Identify Desirable Behavior Take Down Barriers Bridge Opportunity Gaps © EcoFocus® Worldwide 2014 15 Identify Desirable Behaviors © EcoFocus® Worldwide 2014 16 Take Down Barriers © EcoFocus® Worldwide 2014 17 Bridge Opportunity Gaps © EcoFocus® Worldwide 2014 18 Opportunity: Confidence I would recycle more often if I knew that what I put into my bin is reliably recycled 70 61% Hispanic 60 50 40 By Age Group 30 Average 20 10 0 21-35 36-45 46-55 55-65 By Age Group 61.7 55.7 45.9 45.2 Average 53.7 53.7 53.7 53.7 © EcoFocus® Worldwide 2014 19 Opportunity: Convenience Convenience is a major priority for me when it comes to packaging 70 60 56% Hispanic 50 40 By Age Group 30 Average 20 10 0 By Age Group Average © EcoFocus® Worldwide 2014 21-35 36-45 46-55 55-65 61 52.8 45.5 47.5 53.2 53.2 53.2 53.2 20 Opportunity: Savings I really only make eco-friendly choices that save me money 60 50 49% Hispanic 40 30 By Age Group Average 20 10 0 21-35 36-45 46-55 55-65 By Age Group 50.7 43.5 38.6 31.9 Average 43.0 43.0 43.0 43.0 © EcoFocus® Worldwide 2014 21 Opportunity: Easy It takes too much effort to sort household trash into recycle bins 40 35 34% Hispanic 30 25 By Age Group 20 Average 15 10 5 0 21-35 36-45 46-55 55-65 By Age Group 34.8 25.1 19.7 13.6 Average 25.4 25.4 25.4 25.4 © EcoFocus® Worldwide 2014 22 Leverage EcoFocus Consumer Insights to: Identify Desirable Behaviors Take Down Barriers Bridge Opportunity Gaps © EcoFocus® Worldwide 2014 23 Thank You!! For More Information, Contact: Linda Gilbert Founder and CEO, EcoFocus Worldwide Founder and former President, HealthFocus International EcoFocus Worldwide, LLC 3041 Shenck Road Manheim, PA +1-727-906-3319 linda@ecofocusworldwide.com www.ecofocusworldwide.com © EcoFocus® Worldwide 2014 24