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Household Composition

• Only 28% of U. S. households have children under the age of 18, down 25% since 1960. As a result, only 22% of primary shoppers are moms.

• 28% of U.S. households are single-person households.

• 16% of U.S. households are multi-generational (2+ generations of adults living in the home).

Shopping Changes

• Income and education bifurcation has influenced the growth of both the upmarket and downmarket retailers.

• 47% of all primary shoppers are male.

• Within households with children, decisions about what to purchase are being made more democratically.

• More than 50% of grocery shopping “trips” involve going to 2+ stores.

• 71% of consumers visit 5+ retail channels at least once a month for food.

Household composition is changing and shopping habits are evolving

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We are living in a food culture renaissance

Darcy (31)

“I grew up poor, from Nebraska. We ate corn, ground beef and potatoes.

It was what we could afford. I learned to cook from my

grandmother, who was a better cook than my mom.

I went to college. Gained weight, so I started sautéing vegetables. I

traveled to London and Morocco. I saw people use fresher ingredients

and wanted to recreate those flavors back home.”

Fundamental shifts in technology, travel and trade have placed food back at the center of everyday life and popular culture. Food is fun and important. Interest in food isn’t a mere Millennial trait but a

reflection of evolving food culture.

Culture of Food 15

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Traditional food culture has given way to a dynamic modern food cultureTraditional Food Culture Modern Food Culture

Modern Eating Culture

clear societal roles | hierarchy | class-based identity | focus on basic needs | production-driven economy |uniformity

roles in flux | values in flux | malleable identity | creation | co-design | customization | demand-driven economy | self expression

Traditional Eating Culture

product = predictable

cooking = chore

brand interaction = transactional

engagement = low

product = distinct

cooking = discovery

brand interaction = playful

engagement = CONSUMER CHOICE

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38%

63%

61%

53%

18%

14%

WHERE we eat

50%

54%

50%

50%

58%

54%

54%

42%

45%

31%

24%

12%

31%

25%

22%

9%

Familiar/comfort foods

Really healthy meals/snacks

Meals w/small meat portionscompared to vegetables

Different global/ethnic foods

Whatever takes least time/effortto prepare

Purely for food enjoyment

Whatever is least expensive

Experiment w/diff. diet/eatingapproaches

WHAT we eat

81%

76%

While many rely on the easy and familiar, others use either health & wellness or culinary exploration on a regular, predictable basis

95%

85%

74%

62%

89%

79%

51%

91%

HOW we choose

Meals cooked from scratch at home

At restaurants

Order in/Take out 75%

CF15 Q14. Thinking about your day-to-day food choices, how often do you …?. 3 pt. scale. Base: Total (n=2008)

Day-to-Day Food Choices

Occasionally Routinely

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Most consumers who maintain a routine break from it each week to pursue variety or higher quality

CF15 Q15. How would you describe your typical eating routine these days? Base: Total (n=2008).Q16. How often would you say you break from your regular eating routine (e.g., have something different, eat more, eat less, eat at a different time)? Base: Those with an eating routine. (n=1609).Q17. How often would you say you break from your regular eating routine to have something of HIGHER QUALITY? Q18. How often would you say you break from your regular eating routine just for VARIETY/TO HAVE SOMETHING DIFFERENT? Base: Those with an eating routine and break from it at least occasionally. Total (n=1525)

20%

27%

53%

Total

Frequency of Breaking From Normal Eating Routine

At least 1/week

2-3 times/month

Rarely/Never

32%24%

30%

33%

38% 43%

Higher Quality Variety

Frequency of Breaking From Normal Eating Routine for Higher Quality or

Variety

80%

% Following an Eating Routine

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Consumers’ orientation toward food is influenced by level of engagement

The World of Food describes how consumers orient to food based upon the intensity of their involvement in or commitment to following developments in food culture.

Three consumer segments that cover the spectrum of intensity from low to high capture significant differences in attitudes and behavior across the World of Food that cannot be explained purely by demographics.

Core Food Engaged (10%) - smallest segment and most

intensely involved:

• Early adopters, trendsetters, evangelists and highly

food literate

Mid-Level Food Engaged (63%) - mainstream consumers:

• Actively seek new food experiences.

• Possess greater articulation around distinctions

such as local, seasonal, health & wellness

Periphery Food Engaged (27%) - least engaged:

• Seek pleasure and sustenance more than knowledge

10%

63%

27%

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Engagement in food culture is widespread across demographic groups

10%

12%

9%

12%

11%

8%

9%

14%

15%

9%

10%

11%

11%

11%

11%

10%

11%

10%

11%

11%

10%

63%

64%

62%

62%

65%

62%

63%

62%

61%

64%

62%

63%

61%

56%

62%

70%

59%

68%

62%

65%

62%

27%

24%

29%

26%

24%

30%

28%

24%

24%

27%

28%

26%

27%

33%

27%

20%

30%

22%

27%

24%

28%

All Consumers

Male

Female

Millennials 18-36

Gen X 37-50

Baby Boomers 51-69

Caucasian

African American

Hispanic/Other

Northeast

Midwest

South

West

<$40K

$40K - $80K

>$80K

< College Degree

College Degree +

Live Alone

Adult(s) w/Children

2+ Adults, No Child

Core Mid-level Periphery

CF15 Base: Total (n=2,008); Male (n=948); Female (n=1060); Millennials (n=843); Gen X (n=573); Boomers (n=576); <$40K (n=733); $40k-$80K (n=673); >$80K (n=602); live alone (n=306); W/children (n=739); Adults only (n=963); Caucasian (n=1393); African American (n=164); Hispanic/Other (n=451); Northeast (n=440); Midwest (n=436); South (n=720); West (n=412).

World of Food Segments, by Demographic Group

Core, Mid and Periphery engagement in food can be found among all demographic groups and is fairly evenly dispersed, with only a few exceptions:

• Non-Caucasians and younger adults over-index for being in the Core

• Low income is a barrier to moving beyond Periphery engagement

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Those consumers most engaged in food drive the conversation around food

37%

34%

34%

33%

19%

33%

22%

22%

31%

10%

18%

10%

12%

17%

4%

I seek out restaurants that are likelyto have something new and different

to try

I love shopping at specialty foodstores

My friends and family ask me forfood or cooking advice

I enjoy discussing food with otherswho are knowledgeable about food

I pay special attention to having the"right" wine to pair with my food

Food Engagement Attitudes Agree Completely/Strongly

Core

Mid-level

Periphery

CF15 Q23. Please indicate how much you personally agree or disagree with each of the following statements. 6 pt. scale, Top 2 Box. Base: Core (n=204); Mid-level (n=1252); Periphery (n=552)

Boxes represent statistically significant differences at the 95% confidence level (CL) between segments.

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35%

41%

34%

27%

23%

32%

21%

23%

43%

35%

25%

11%

26%

22%

17%

8%

53%

17%

16%

7%

46%

29%

33%

7%

Familiar (comfort) foods

Really healthy meals and snacks

Meals w/only small portions of meatcompared to vegetables

Different global/ethnic foods

Whatever takes least time/effort toprepare

Purely for food enjoyment

Whatever is least expensive

Experiment w/diff. diets/eatingapproaches

WHAT We Eat Routinely

Mid-level build “healthy” into their routines; Core routinely include both health and variety

CF15 Q14. Thinking about your day-to-day food choices, how often do you …?. 3 pt. scale. Top box (Routinely). Base: Core (n=204); Mid-level (n=1252); Periphery (n=552)

Boxes represent statistically significant differences at the 95% confidence level (CL) between segments.

52%

21%

12%

57%

17%

13%

45%

17%

16%

At home meals cooked fromscratch

Eat out at restaurants

Order in or get takeout

WHERE We Eat Routinely

Core

Mid-level

Periphery

Day-to-Day Food Choices – Routine Eating

HOW WE CHOOSE What We Eat Routinely

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Consumers are engaging with a complex and dynamic food culture

INFORMATION

Health + Wellness• Food, Inc.• Super Size Me• Fat, Sick & Nearly Dead• Wheat Belly• Baby-Led Weaning

Social • Food memories, family comfort foods• Friends & family who care about food• Allrecipes• Pinterest, Facebook• Yelp, Eater• Dinner at friends• Google, foodgawker• Thug Kitchen

INSPIRATION PARTICIPATION

Transparency• Fast Food Nation movie

Travel, migration, diversity• Traveling outside country• Moving to food city• Engaging with people from other

ethnicities

Restaurants/Chefs• Fine dining• Local ethnic dives • Local chains • National chains • Chef’s events • Competition cook-offs

Culinary• Rachael Ray• Martha Stewart• Cooking Light, Bon Appétit• Cutthroat Kitchen• Cook’s Illustrated• Saveur, Food & Wine• Cookbooks

Retailers• Specialty grocers: curated ingredients• Local shops: unique ingredients• Farmers market: seasonal ingredients• Online fresh meal kits: prepped

ingredients

[flow of ideas is from expert to consumer] [discovering/sharing food ideas] [making/trading food experiences]

Kenny (25)

“My girlfriend and I use Pinterest for a lot of recipes. Just type in one word and you get back ideas. We have a shared board. If we’re bored at work, we’ll post things we like and collaborate from there. It gives us a building ground for some ideas, at least.”

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Consumers are trading up to fresher ingredients

1

Darcy (31)

“I prefer fresh food. It makes me feel better, not lethargic. My stomach feels better. After a meat-potato dinner at my

parents’, I feel heavy, tired. I actually feel it. If we eat a couple of meals in winter like Swedish meatballs with gravy or

Darcy's Delight, food with more meat and canned food, I need to go back to fresher food. I crave a big salad.”

234

PURPOSEFUL AND PLANNED① Greek (orzo, feta)② Mexican (cilantro)③ Italian (parsley, eggplants)

INSPIRATION FROM PANTRY④ “Darcy’s Delight” (childhood

comfort food)

[ranked in order of preference]

“What’s for dinner for family?”

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46%

38%

35%

34%

31%

21%

15%

15%

31%

22%

12%

10%

100% natural

Uses real spices/herbs for flavoring

Minimal processing

Something familiar, but made/betteringredients

100% organic

Local

Sustainably produced

Unique story aboutingredients/production/people *

Unique flavor (i.e., no close substitute)

Something familiar, but morehandmade/artisanal

Contains or is a special varietal

Something less familiar/common

Higher Quality in Food & Beverage Means…

Higher quality has commonly meant fresh, less processed (FLP), but now it also means more nuanced aspects of FLP

CF15 Q10. What attributes do you look for or associate with “HIGHER QUALITY” food/beverage products? (select all that apply)Base: Total (n=2008) *Net of 3 attributes (ingredients, production, people asked as separate items).

Culinary

Fresh, less processed

Transparency

Organic “straddles” both aspects: FLP and Transparency.

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31%

23%

15%

13%

10%

19%

11%

10%

10%

12%

12%

11%

10%

Nothing in particular, the food was just different

Distinctive new flavors

Distinctive new ingredients

Distinctive global cuisine (Mediterranean, Indian, East Asian,Indonesian, Latin American, etc.)

Craft/Specialty/Artisan made

Familiar food made with better ingredients

Minimally processed (e.g., short ingredients list, raw, simple,real)

No artificial ingredients (e.g., preservatives, colors, additives)

Organic

Good for weight management (e.g., portion sized)

High in particular nutrients (e.g., protein, fiber, antioxidants,probiotics)

Particular health benefits (e.g., lower cholesterol, improvedigestion, boost immunity)

Low in what I try to watch/moderate (e.g., sugar, fat, salt,calories)

Type of Food Eaten When Eating Differently From Usual

Consumers expand their horizons to find culinary distinctions, fresh improvements or health & wellness benefits

CF15 Q22. The VERY LAST TIME you chose to eat something different from your usual food choices, what characteristics were you SEEKING THAT YOU DON’T FIND IN YOUR USUAL CHOICES?(Select all that apply) Base: those who ate something different than their usual choices in Q20. (n=539)

Culinary

Fresh, less processed,

Transparency

Health & Wellness

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Consumers are trading out familiar home foods for variety and fresh food experiences from around the world

Eating out is no longer reserved for special occasions. Consumers, especially those who are single and/or without children, are trading out their (limited) home cooking or fast food chains for local, ethnic restaurants that offer fresh, often vegetable-centric meals at an everyday price point.

Keith (41)

“I am a food NUT!!!!!!!!!!!!!!!!!!!!!!! I love food, I love the culture of the food, the smell, the taste and most importantly…the EXPERIENCE! I have well over 50 restaurants in Philly that I routinely eat at. I love international food. My food tribe would be International because I feel as though I am automatically transported into that country. The smells, music, language is totally different than anywhere else. I love Chinese, Thai, Caribbean, African, French, Italian, Persian. The Art Institute offers chef-prepared meals for $12. I like Chipotle when I want a quick meal at home. And I still go to Chili's when I’m with friends who prefer American food.”

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Cooking is becoming a skill consumers aspire to develop, not just a domestic (previously gendered) chore. This is not to say consumers want to cook all the time but that they want to have the choice to cook or to outsource to food companies, retailers and food service.

An appetite for fresh and interesting foods inspires consumers to learn about new ingredients, flavor combinations and techniques. Rather than help with planning and list making, they are looking for food inspiration and cooking tips to simplify or improve their investment of time, effort and money.

New routines necessitate new ways of cooking

Paula (54)“Now that I’m on my own, I cook all my meals for the week on Sundays. I eat the same foods for breakfast, lunch and dinner. But I’m always looking for new recipes that will work for my body. If I didn’t have to cook as much, it would free up my time to do other things. But I’d end up eating crap and not feeling good.”

Culture of Food 15

Audrey (31)

“The Internet makes it easier to have that comfort which goes hand in hand with convenience. Cooking becomes more convenient when you don't stress out. Cooking should feel like sweatpants.”

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Meaning and value of “home cooking” differ by segments

MID-LEVEL: Fresh/Less processed PERIPHERY: Convenience orientedCORE: Flavor driven

Food Values

• Better than ….

• Expanded variety

• Control over what I put in my body

Food Values

• Deliciousness

• Culinary distinctions

• Transparency

Food Values

• Familiar taste

• Convenience

• Price

Cooking using knowledge of flavors, ratios, ingredients, cooking techniques, multiple recipes, as well as intuition

Cooking by recipe and/or assembling from a mix of fresh, prepared and packaged foods using familiar cooking techniques

Cooking is assembling a mix of packaged, prepared and fresh foods

Planning is a chore not worth spending too much time on

Planning is integrated with shopping, cooking and eating

Planning more to control eating and schedules

Inspiration (passively) from social network, restaurants, food media, travel

Inspiration is all around because constantly thinking about food

Inspiration exchange with social network, restaurants, food media, travel

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Desire for expanded variety can lead to anxiety about having too many choices, especially for consumers less engaged in food culture. Raised cultural expectations for new and interesting food experiences mean consumers can’t just serve the same limited rotation of dishes from their family recipe binder if they want to be culturally relevant and perceived as a good cook.

For the cook, this “paradox of choice” is complicated by fragmented taste aversions, preferences, allergies, sensitivities and intolerances of eaters. Picky eating constrains shared eating.

New routines can be stressful when eating from a complex and dynamic food landscape

Leah (45)“Growing up, we had milk with every meal. There was only one kind, and we had to drink it. Now there are so many choices to make. I’m lactose intolerant. My son is a picky eater. My daughter loves sugar but worries about her weight.”

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25%

23%

16%

16%

9%

6%

14%

12%

42%

30%

35%

33%

17%

20%

13%

18%

51%

40%

38%

38%

23%

21%

14%

13%

High prices

Limited household budget

Lack of time/energy to prepare food

Lack of ideas for what to have

Lack of skills/knowledge to prepare food

Lack of time/effort for cleanup

Not being familiar w/products/ingredients

Desire for something healthier

Limits on Regular Choices at Home

Core

Mid-level

Periphery

Both pragmatic and emotional barriers limit at-home food choices

CF15 Q31. Which of the following factors have definitely LIMITED or DIMINISHED what you choose to HAVE ON A REGULAR BASIS at home? (Select all that apply) Items above 12% for Total. Base: Core (n=204); Mid-level (n=1252); Periphery (n=552)

Boxes represent statistically significant differences at the 95% confidence level (CL) between segments.

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Struggles are widespread for home meal ideas

24% 27%23% 23%

38%36% 41%

35%

28% 26% 27%30%

10% 11% 9% 12%

Frequency of Struggling for Ideas of What To Have for Meals at Home

CF15 Q33. How often in the PAST 30 DAYS did you struggle for ideas of what to make/have at mealtimes (i.e., when you don’t dine out/order in/get take-out)? (select one)Base: Core (n=204); Mid-level (n=1252); Periphery (n=552)

TOTAL Core Mid-level Periphery

Very often, at least 4-5 times/week

Frequently, 2-3 times/week

Occasionally, once/week

Infrequently, <1/week

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The shift from the cook’s choice to the eater’s choice has different challenges for family cooks and alone eaters

Cooking for a family must accommodate everyone’s schedules and food preferences/avoidances AND curate culinary variety and “healthy.” Cooks often TRADE DOWN to familiar brands as a strategy to appease picky eaters and diffuse conflict (but are not happy about this). Cooking for one lacks the social rewards of shared effort and enjoyment. As meals become low stakes, it’s just as easy to TRADE OUT cooking for a prepared meal, fast food or ethnic/street food.

Leah (45)

“I sneak vegetables in. It’s a struggle... but time is limited. So are my ideas about food. We get into the rut of same same. I’d like to try stuff I see on Pinterest, but kids won't try ethnic foods. Today, my daughter got fries and a Frappuccino. My son wants Campbell’s Chicken Noodle. And I’m making an omelet with spinach.”

Zach (32)

“The idea of frozen foods always tastes better than the food itself. I’d like to cook more. It’s better wallet-wise and health-wise. But I end up not having a plan and running out of time. Food is social or it’s fuel.”

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Key Takeaways

Culture of Food 15

• Culinary and transparency distinctions are increasingly being seen as signs of quality in food and beverage items

These attributes contribute to a perceived sense of healthier and better-tasting food

• Variety is not just about a broad range of choice

It is about the ability to customize within a manageable set of choices

It is about exploration and discovery

• The key opportunity for producers is to provide inspiration to consumers

Many more pragmatic needs (list making, nutritional information, etc.) are either not utilized or are sought from alternate providers

• Food service operators are currently the go-to source for food ideas and exploration, they are driving food culture

• Cooking is not dead!

It is just different……

ABOUT THE HARTMAN GROUP

The Hartman Group is the premier food and beverage consultancy in the world. Companies and brands across all segments of the food and beverage industry benefit from our unparalleled depth of knowledge on consumers, culture, trends and demand-side market strategy. We listen closely to understand our clients business challenges and tailor solutions that deliver transformative results. Through a unique suite of integrated custom, primary research capabilities, market analytics, and business strategy services, we uncover opportunity spaces and avenues for growth. We deliver more compelling insights that fuel inspiration and ideas for innovation.

3150 Richards Road, Ste. 200 Bellevue, WA 98005

Tel (425) 452 0818 Fax (425) 452 9092

www.hartman-group.com

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Methodologies

Quantitative approach:

A nationally representative online survey of 2,008 US adults ages 18 to 70 conducted in August 2015.

Sampling error of ±2.4% at 95% confidence level.

Topics covered:

• Who’s engaged in food culture

• How consumers choose among the array of readily available global flavors and wellness-inspired eating styles

• How consumers understand and look for variety and higher quality

• What consumers do when they break from their routine

• How consumers connect with sources of inspiration to find creative variety and whimsy

Qualitative approach:

One-on one, in-home interviews in Kansas City, MO, with pantry tours followed by a cooking demonstration or a shop-and-talk tour.

Virtual interviews across a diversity of geographies including a food diary, pantry inventory and city food map.

In-person and phone interviews with influencers in food culture – chefs, entrepreneurs and writers to understand how these influencers are changing food culture today.

Boxes around percentages represent statistically significant differences at the 95% confidence level (CL) between segments or other data cuts.

Letter(s) next to multiple stacked columns indicate significant differences at 95% CL between segments or other data cuts.

What the chart symbols mean

A B C

Culture of Food 15