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June 9, 2020
Steve Ramsey, EVP, IRI Practice LeaderKathryn Peters, EVP, SPINS Business Development
SUPPORTING THE NATURAL PRODUCTS CONSUMER
COVID-19 and Navigating the Path Ahead
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 2
SPINS is IRI’s Partner for Health and Wellness
Consumers demand product transparency and a higher level of engagement when it comes to healthier product choices. Merchants need a
roadmap to navigate wellness trends and develop products to meet changing shopper expectations.
SPINS enables unparalleled insights into Health and Wellness between its depth in ingredients, allergens, sensitivities and nutrition beyond its traditional industry expertise in the Natural and
Organic market segments.
IRI Unify™ services combined with SPINS attribution bring a unique lens to trends,
innovation and actionable insights
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 3
Today’s Agenda
Visit IRI’s COVID-19 Insights Portal & COVID-19 Dashboard for More Reports & Updates
Sources:• IRI Multi-Outlet Point of Sale Data, Enhanced with SPINS Product Attribution • IRI Consumer Network™ Panel , Enhanced with SPINS Product Attribution• IRI Shopper Loyalty™ Solution, Enhanced with SPINS Product Attribution• IRI E-Market Insights®
Shopper Opportunities
Natural Product Purchase
Trends
Lessons from Last Recession
Evolving Shopper
Behaviors
Supporting the Natural Products Consumer Through COVID-19 and Beyond
The Path Forward
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 4
Natural Products Market Context
The Natural Products Industry (NPI) represents
8.5% of total store sales and continues
to outpace conventional / non-natural
products
All Outlets / Dollar Sales % Chg. vs. YAGO
Source: IRI All Outlet Panel, Enhanced with SPINS Product Attribution. Weekly Data Ending 05.17.20
Shoppers Engage in Natural Products Purchasing at High Levels Before, During, After the Stock-Up Period
13%19%
71%
79%
68%
60%
18%17%
18%18%
18%19%
6%
15%
7%
16%
22%
31%
18%23%
21%
15%
Conventional Natural NP
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 5
Natural Products Led Growth During Peak Stock-Up,Demonstrating Consumer Focus on Self-Care During Pandemic
Frozen General Merchandise
Body Care GroceryAlcohol Herbs & Homeopathic
Produce Refrigerated Vitamins & Supplements Frozen-10%
-5%0%5%
10%15%20%25%30%35%40%
General MerchandiseBody Care
GroceryAlcohol Herbs & Homeopathic
Produce RefrigeratedVitamins &
Supplements
Source: IRI MultiOutlet POS Data, Enhanced with SPINS Product Attribution; Quad Weeks WE 05.17.20
0%
20%
40%
60%
80%
100%
120%
NON-NPINPI
BeverageAlcohol Beverage
Alcohol
PEAK Stock-Up PeriodTotal U.S. MULO / Units % Chg vs. YAG (4 WE 3/15/20)
NPI (Natural Products Industry) vs. Non-NPI
POST Stock-Up PeriodTotal U.S. MULO / Units % Chg vs. YAG (8 WE 5/17/20)
NPI (Natural Products Industry) vs. Non-NPI
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 6
*Internet includes range of purchases from pure play Ecommerce to Click and Collect; Brick and mortar outlet sales do not include internet sales.
While Natural Products Remain on Consistent Growth Trajectory, Shopping Preferences Shifting to Grocery and Internet*Shoppers consolidated trips while under stay-at-home orders and the internet* drew increasing natural products share of wallet. NPI internet sales had a larger share base than non-NPI prior to the stock-up.
Source: IRI All Outlet Panel, Enhanced with SPINS Product Attribution. Quad Weeks Ending 05.17.20
Time Progression
Share of Wallet Across Outlets* NPI Dollar Sales
51%
53%
52%
51%
51%
12%
12%
13%
14%
13%
9%
9%
9%
9%
10%
10%
9%
5%
6%
6%
4%
4%
5%
5%
6%
14%
13%
15%
15%
14%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
May 17-2020
Apr 19-2020
Mar 22-2020
Feb 23-2020
Jan 26-2020
GroceryX Walmart Total Club Internet MassX and SupercenterX All Other
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 7
NPI Product Trips Per Buyer % Chg vs. YAG
NPI Dollars Per Buyer % Chg vs. YAGGrocery buying rates still neck in neck with internet thru May
Natural Product Trips and Dollars Continue Strong Growth Patterns
Natural product trips grew during pantry
loading and continued to grow from year ago
through May.
Internet sales maintained double digit growth for the two months post-
stock-up, while other outlet product trips experienced less
growth post-stock-up.
Club Grocery Internet Mass/SC Walmart
Source: IRI All Outlet Panel, Enhanced with SPINS Attribution; Quad Week Ending 05.17.20
Jan-26-2020 Feb-23-2020 Mar-22-2020 Apr-19-2020 May-17-2020
Jan-26-2020 Feb-23-2020 Mar-22-2020 Apr-19-2020 May-17-2020
35%
-5%
30%25%20%15%10%
5%0%
35%
-5%
30%25%20%15%10%5%0%
-10%-15%
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 8
Average Retail Price Index vs. YA
While Natural Product Dollar and Unit Spending Remains Strong, Inflationary Indicators Emerging Across DepartmentsNatural products average retail price increased ~10% vs. YA, slightly faster than conventional products overall.
Source: Average Weekly Retail Price, IRI MultiOutlet POS Data Enhanced by SPINS Product Attribution; Year to Date Ending 05/17/20 Total Product Library (TPL) represents a view of all UPC-based items in these departments
Total Product Library
Comparison
Indices <100=Deflation; >100=Inflation
19-Jan 26-Jan 9-Feb 16-Feb 8-Mar 15-Mar 12-Apr 19-Apr 10-May 17-May 17-May KPITOTAL 103 104 103 103 105 107 110 110 108 109 108 ▲
EDIBLE 102 102 102 102 103 106 112 112 109 110 110ALCOHOL 100 99 100 99 99 103 109 111 101 102 108FROZEN 101 103 102 102 103 103 109 108 109 108 109GROCERY 101 103 102 102 102 106 113 112 110 111 112PRODUCE 100 99 100 100 99 102 100 102 99 101 104REFRIGERATED 102 102 102 103 103 108 113 114 109 111 109 ▲
NON-EDIBLE 104 104 105 102 104 104 102 104 105 105 99 ▲
BODY CARE 105 105 105 104 102 99 99 104 106 108 100 ▲
GENERAL MERCHANDISE 103 104 105 102 101 103 100 100 101 101 104HERBS & HOMEOPATHIC 108 110 112 105 112 114 119 118 121 119 106 ▲
VITAMINS & SUPPLEMENTS 103 102 102 101 102 101 101 102 102 103 105
Natural Products
*▲ NPI inflating faster than TPL latest weekDenotes break in weeks
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 9
HIGH STOCKPILELOW STOCKPILE
HIGH STOCKPILELOW STOCKPILE
HIG
H R
EPLE
NIS
H
HIG
H R
EPLE
NIS
H
LOW
REP
LEN
ISH
LOW
REP
LEN
ISH
4Wks
End
04.
19.2
0
Stock-Up Period
Post
Sto
ck-U
p Pe
riod
Shopping Behaviors are Changing – Natural Products Buyers Adapted During Extended Stay-at-Home LivingTotal U.S. All Outlets (NPI) / Buyer % Chg vs. YAG
Source: IRI All Outlet Panel, Enhanced with SPINS Product Attribution, Quad Weeks Ending 03.22.20 & 04.19.20
STAY AT HOME NECESSITY CATEGORIESBuyers increasingly entered these categories to replenish after stockpiling as consumers learned how to manage stay at home orders
• Seasonings• Pet Care & Wellness• Oils & Vinegars• Produce• Salsas & Dips
• Tea• Drink Mixes & Concentrates• Condiments & Dressings & Marinades• Cheese & Plant-Based Cheese• Milk
THE INDISPENSABLE CATEGORIESBuyers continuously entered these categories each period during and after stockpiling as pantries ran low and new habits persisted
• Baking Mix, Ingredients & Flour
• Herbal Singles• Frozen Breakfast Foods• Pasta• Soap & Bath Preparations
• Refrigerated Plant-Based Meat Alternatives
• Pickles & Olives• Soup• Pasta & Pizza Sauces• Household Cleaners & Supplies
PASSIVE CATEGORIESThere were no significant increases ofbuyers in these categories
• Pet Waste Management• Cosmetics & Beauty Products• Ready to Drink Tea & Coffee• Weight Management Formulas• Pet Toys & Collars & Apparel
• Food Supplements• Baby Food• Rice Cakes• Refrigerated Pasta• Skin Care
PANTRY PREP CATEGORIESBuyers grew in these categories during stockpiling but did not grow at the same rate during post-stockpiling period
• Beans, Grains & Rice Dry• Herbal Formulas• Functional Beverages• Hot Cereals• Fruit Spreads & Jams & Jellies
• Frozen Appetizers & Snacks• Nut & Seed Butters• First Aid & Therapeutic Topicals• Amino Acids• Refrigerated Tea & Coffee RTD
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 10Source: IRI MultiOutlet Data, Enhanced by SPINS Product Attribution; Quad Week Ending 3/22/20 & 4/19/20 & 05/17/20
Choosing Natural Represents Clear Lifestyle Choices and Behaviors –Offerings from Paleo to Plant-Based Resonate with Consumers
$ % CHG VS YAG
+21%+38%
Total Edible Growth (TPL)
4 WK ENDING 03.22.20
4 WK ENDING 04.19.20
Lifestyle Attribute Growth*Total Edible: Produce, Grocery, Refrigerated, Frozen; Labeled Organic: 95-100% Organic Ingredients
4 WK ENDING 05.17.20+24%
Certified Non-GMO Project
Verified
Labeled Allergen Friendly
Labeled Animal Welfare
Labeled Antibiotic
Free
Labeled Cage Free
Labeled Free Range
Labeled Gluten Free
Labeled Grass Fed
Labeled Organic
Labeled Vegan
Paleo Plant-Based
41%
20%25%
47%
20%
29%
54%
42%45%49%
30% 33%41%
32% 33%
64%
48%42% 38%
16%21%
38%
26%34%
40%
17% 21%
46%
17%26%
78%
54%
67%
55%
32%40%
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 11
69%
78%
78%
79%
80%
80%
79%
70%
70%
70%
78%
79%
81%
81%
79%
68%
59%
60%
65%
71%
73%
73%
71%
56%
DIET - FODMAP DIET
DIET - KETO DIET
DIET - PALEO DIET
DIET - PESCATARIAN DIET
DIET - PLANT BASED DIET
DIET - VEGAN DIET
DIET - VEGETARIAN DIET
DIET - WHOLE 30 FRIENDLY
22-Mar 19-Apr 17-May
Ingredient-Based Diets and Lifestyles Remain Relevant
Total Products Category Growth
4 WE 04.19.20 4 WE 05.17.20
Products Identified Through Ingredient Analysis and NFP Supporting Applicable Lifestyles and Diets
Source: IRI MultiOutlet POS Data, Enhanced by SPINS Product Attribution; Quad Weeks Ending 05/17/20
SS Baking Mix & Ingredients & Flour / $ % Chg. vs. YAG
+76%+71% +77%4 WE 3.22.20
+120%VEGAN+199%PALEO +423%LOW-FODMAP
+167% +48%
+75%
+116%
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 12
Many Consumers Opt for Low-Glycemic Options During Self-Indulgence
+272% +58%
Baking Mixes
Baking Ingredients
Source: IRI MultiOutlet POS Data, Enhanced by SPINS Product Attribution WE 05/17/20Baking Ingredients includes products like Baking Chocolate, Chocolate Chips, etc.
Baking Mixes & Ingredients by Sweetener Ingredient TypeTotal Products Category Growth, $ % Chg vs. YAG
Shelf Stable Sweeteners by Sweetener Ingredient TypeTotal Products Category Growth, $ % Chg vs. YAG
+367% +40%
28%46%
109%
22%46% 51%
14%4%
-3%
122%
2%20% 11% 6%
ARTIFICIALSWEETENERS
COCONUT SUGAR MONKFRUIT STEVIA SUGAR ALCOHOLS SUGARS UNSWEETENED
4 Weeks 52 Weeks
78%
251%
103% 99% 122%73% 77%
16%90% 104%
67% 57%10% 15%
ARTIFICIALSWEETENERS
COCONUT SUGAR MONKFRUIT STEVIA SUGAR ALCOHOLS SUGARS UNSWEETENED
4 Weeks 52 Weeks
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 13
Consumers began seeking supplements as mutual causality of the pandemic led to stress & anxiety.
Cold & Flu focused products saw the
largest increase as consumers looked for natural remedies to
combat virus symptoms, but now growth from Sleep & Cognitive focused
items are starting to outpace them.
Source: IRI MultiOutlet POS Data Enhanced by SPINS Product Attribution Quad Week Ending 3/22/20 & 4/19/20 & 5/17/20
0%
50%
100%
150%
200%
250%
WE 02/23 WE 03/15 WE 04/19 WE 05/17
Health Focus –Supplement Sales
SLEEP COGNITIVE HEALTH HAIR & SKIN & NAILSIMMUNE HEALTH COLD & FLU
Supplement Sales Remain at Heightened Levels Throughout 2020 With Particular Areas of Health Focus Leading Growth
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 14
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%Mar-22-2020 Apr-19-2020 May-17-2020
Source: IRI All Outlet Panel, Enhanced with SPINS Attribution; Quad Week Ending 05/17/20
-50%0%
50%100%150%200%250%300%350% Mar-22-2020 Apr-19-2020 May-17-2020
Functional Ingredient Buying RateAll Outlets / Dollar per Buyer % Change vs. YAG
Functional Ingredient Buyer GrowthAll Outlets / Buyer % Change vs. YAG
4 Weeks Ending 4 Weeks Ending
More Consumers are Turning to Natural Remedies to Enhance Immune Systems and Reduce Additional Stress and Anxiety
Chinese Herbs
Collagen Products
Echinacea Elder-berry
Melatonin Turmeric Vitamin C (Not
Ester-C)
ZincChinese Herbs
Collagen Products
Echinacea Elder-berry
Melatonin Turmeric Vitamin C (Not
Ester-C)
Zinc
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 15
Functional Ingredient 4 WE 3.22.20
4 WE 4.19.20
4 WE05.17.20
MUSHROOMS - CORDYCEP +1,183.1% +726% +1,101%BLACK SEED (CUMIN) +276% +323% +233%ELDERBERRY +430% +316% +184%CHAMOMILE +276% +174% +166%ALGAE - OTHER -0.1% +21% +124%ASHWAGANDA 68% +59% +121%ECHINACEA 221% +164% +83%MORINGA 72% +40% +61%COLLAGEN PRODUCTS 79% +35% +60%MELATONIN 53% +41% +58%VITAMIN C (NOT ESTER-C) 200% +111% +55%ZINC 168% +83% +50%SPIRULINA BLUE GREEN ALGAE 83% +46% +50%OREGANO 277% +110% +16%
Source: IRI MultiOutlet POS Data Enhanced by SPINS Product Attribution Quad Week Ending 3/22/20 & 4/19/20 & 5/17/20
$ % Chg vs. YAG
Multi-Vitamin Growth Latest 12 Weeks+31%
Consumers are Further Exploring Nontraditional Solutions to Proactively Manage their Health to Enhance Immunity and Beyond
MUSHROOM SUPPLEMENTSStrengthens the immune system
MELATONINCombats sleep disorders, shifting sleep schedules and jet lag
OIL OF OREGANOHerbal Supplement with Antioxidant, Antiseptic, Antibacterial and Anti-Inflammatory qualities
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 16
NaturaLink™ Segmentation Combines Buyer Attitudes and Purchase Behaviors to Illuminate Consumer OpportunityNaturaLink™ Segments
Two segments form the leading edge of natural / organic trends: True Believers and Enlightened Environmentalists together account for more than 44% of natural / organic dollar sales
% of Total Shoppers
Source: IRI All Outlet Panel, Total US, 52 Weeks Ending 12/29/19
9%
True Believers
Enlightened Environmentalists
Healthy Realists
Strapped Seekers
Indifferent Traditionalists
% of Total Natural & Organic
Dollar Sales
Resistant Non-Believers
27%
17%
14%9%
17%
7%Struggling Switchers
Core Natural / Organic SegmentsConsumers who represent the leading edge of trends in the natural / organic industry
11%
11%
14%
14%
9%
25%
16%
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 17
Stock-Up$ per Buyer % Change vs. YAGO
4 WE 03.22.20
Source: IRI All Outlet Panel, Enhanced with SPINS Product Attribution;. Quad Week Ending 3/22/20 & 5/17/20
POST Stock-Up$ per Buyer % Change vs. YAGO
4 WE 05.17.20
13% 14%17%
9% 10%
AspirationalNatural / Organic
IndifferentTraditionalists
Core Natural / Organic
Struggling / Resistant
TotalPanel
10% 9%12% 13%
8%
AspirationalNatural / Organic
IndifferentTraditionalists
Core Natural / Organic
Struggling / Resistant
TotalPanel
All Segments
Purchased Natural
Products at Higher
Rates During March
Stock-Up Period
Less Engaged
Segments Continued
Spending at Higher
Levels in May
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 18
Stock-Up$ per Buyer % Change vs. YAGO
4 WE 03.22.20
Source: IRI All Outlet Panel, Enhanced with SPINS Product Attribution;. Quad Weeks Ending 3/22/20 & 5/17/20
POST Stock-Up$ per Buyer % Change vs. YAGO
4 WE 05.17.20
51%68% 19% 15%
199%
AspirationalNatural / Organic
IndifferentTraditionalists
Core Natural / Organic
Struggling / Resistant
TotalPanel
15% 17%
30%
8%
18%
AspirationalNatural / Organic
IndifferentTraditionalists
Core Natural / Organic
Struggling / Resistant
TotalPanel
Refrigerated
Plant-Based Meat
Alternatives Attracted
New Buyers During
Stock-Up Period
Category Continues
to Win Over Buyer
Count and Basket
Dollars Post-Stock-Up
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 19
Unprecedented Access to New Consumers as Households Tried New Groceries During the PandemicOpportunity: Retain New Buyers for Plant-Based Meat Alternatives
New Buyers: Buyers that did not purchase in the 52 WE 2/23/20 and have purchased in the 8 WE 4/19/2020 / Existing Buyers: Buyers that purchased both in the 52 WE 2/23/20 and the 8 WE 4/19/20 / *$60MM Opportunity based on 2.5MM New Buyers * 59.5% average annual Category Repeat Rate * $40.37 avg annual Category Buy Rate (Avg Annual based on pre-COVID-19 52 WE 2/23/20
How IRI Can Help• Identify and target New Buyers to
convert into repeat buyers worth>$60MM*
• Create custom activation plans based on consumer targeting
• Monitor weekly changes through the pandemic and economic recovery to identify shifting behaviors
Differentiated New ConsumersNew Buyers• Upper Incomes• 3 person HHs• African-Amer & Asian• Acculturated Hispanic• Millennial & Gen X• Younger Kids • Female HoH works
full-time, White Collar & Sales
Existing Buyers• Upper Incomes• 4 person HHs• African-American• Gen X• Teenaged Kids
New Buyers Purchasing Again in May / Greatest Likelihood to Convert• Upper Incomes• African-American• Generation X• Female HoH
works full-time, White Collar Manager
• Single Parent• Getting Started or
Raising Teens
NEW BUYERS TO CATEGORY2MM
of HHs purchasing in the 8 wks thru 4/19 were NEW32%
New Buyers’ Contributionas HHs made an average of 2.0 Trips and spent $16.34 on products that were not part of their routine
$41MM
of New Buyers Returned & Purchased Again
in the next 4 WE 5/17/20, increasing Buy Rate to $19.59, making 2 trips in the latest 4 weeks
30%
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 20
Forward Looking Considerations:New Economic Pressures Will Shape Shopper BehaviorEconomic pressures and product availability are having an impact on category buying but has not overpowered increased consumer demand for natural products.
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 21
Looking Forward, Many Consumers will Need to Employ Creative Shopping Solutions in Response to Rising Prices
Source: IRI MultiOutlet POS Data, Enhanced with SPINS Product Attributes; Weekly Ending 05/17/20.
NON-NPINPI
Frozen & Refrigerated Meat, Poultry & Seafood CategoryWeekly ARP % Change vs. YAG / Total U.S. MULO (NPI, NON-NPI)
3.7%2.9%
6.2%
4.9%3.7%
8.4%9.7%
11.2%
9.7%10.2%
8.7%8.0%
3.3%
1.3%
4.9%5.4%
6.6% 6.7%
8.3% 8.0%
11.2%
12.7% 12.8% 12.9%
3/1/2020 3/8/2020 3/15/2020 3/22/2020 3/29/2020 4/5/2020 4/12/2020 4/19/2020 4/26/2020 5/3/2020 5/10/2020 5/17/2020
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 22
Flour*+252% PL +123%
Frozen Breakfast Foods+152% PL +37%
Nut & Seed Butter+38% PL +12%
Cleaners & Supplies+63% PL +29%
Chips, Pretzels, Snacks+15% PL +5%
Frozen & RF Meat+56% PL +48%
RF Plant-Based Meat Alt+149% PL +113%
Sweeteners+73% PL +52%
Shelf Stable Fruit & Veg+40% PL +19%
Vitamins & Minerals+1,177% PL +41%
NPI Private Label Unit Growth Rates vs. NPI Category Growth8 Weeks Ending 5/17/20 vs. YAG / Total U.S. MULO (NPI)
Consumers Seeking Natural Options for Value During Uncertain Times Will Increasingly Turn to Private Label as in Past Recessions
Source: IRI MultiOutlet POS Data; Enhanced by SPINS Product Attribution; 8 Weeks End 05/17/20 *SPINS Subcategory
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 23
Shoppers Engage in Natural Products Purchasing at High
Levels Before, During, After the Stock-Up Period
Overall natural foods growth will
continue, but engaged natural shopper behavior will likely follow
2008 trends
Natural products continued solid growth during and after the Great Recession.
Consumer proactive motivation for health should further boost 2020 momentum.
15%
10%
8%
12%
8%
5%
15%
10%
7%
2007 2008 2009
SPINS NATURAL CHNLWHOLE FOODSFDM (xWalmart)
NPI Annual $ Sales Growth
Recession generally classified as Dec 2007 – June 2009 / Markets and mortgage market collapsed through 2008 with bank bailouts in Jan 2009
1 – 20% of Shoppers / 2 – 25% of Shoppers / 3 – Bottom 55% of Shoppers
increase in natural products spending from most
committed¹ shoppers
+13%
increase in natural products spending from
medium² shoppers
+12%
decrease in natural products spending from
less engaged³ shoppers2009 vs. 2008
-1.6%
Committed Natural Consumers Continued
to Grow in Both Numbers and Spending
Less Engaged Shopper Patterns Reduced Spending
2008 TRENDS
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 24
Opportunities Going ForwardUnderstanding the Natural and Wellness-Focused Shopper for the Near Future
• As consumers minimize risk of exposure, shopping trips have decreased, enhancing importance of channels carrying specialty and wellness products.
• Consumers remain focused on proactive self-care through products they ingest (food, supplements), home care (cleaners) and personal care (lotions, soaps).
• Consumers continue to expect personalization as it relates to dietary preferences, particularly as distinctions between internet and brick and mortar experiences blur.
• Bifurcation in buying behavior will likely accelerate, as in the 2008 recessionary period.
• Decreased velocity of innovation from start-ups is likely as the environment will be more difficult to navigate, and additional resourcing needed could create barriers to entry.
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 25
Brand Strategies to Navigate Growth During Uncertain TimesLessons From the Past, Along With Recent Emerging Trends, Provide a Road Map for Success
• Understand your consumer’s engagement with natural foods– Design strategies for your core natural shoppers
to maintain and grow their buy rates – Focus on value strategies for holding your less
engaged shoppers • Identify new buyers to your brands along with their
behaviors, build conversion strategies and actively engage them through targeted marketing and communications
– Leverage lifestyle and ingredient-based product attributes and customer segmentation to effectively navigate the underlying dynamics of today’s natural marketplace, identify emerging trends and build personalized conversations
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 26
Brand Strategies to Navigate Growth During Uncertain Times (cont’d)Lessons From the Past, Along With Recent Emerging Trends, Provide a Road Map for Success
• Refine and have a fluid channel strategy to support the new normal
– Build effective sales strategies for both brick and mortar and the growing importance of e-commerce
– Create experiences supporting the Natural consumer’s desire for detailed product information and transparency
– Leverage pricing and promotion analytics to best fit pricing and promotions by channel
– Ensure brands have the appropriate price pack architecture to meet future needs
© 2020 Information Resources Inc. (IRI). Confidential and Proprietary. 27
Insights and Strategic Guidance for Better DecisionsIRI’s Online Resources Include Real-Time Updates and Weekly Reports Which Track the Impact of the Virus on CPG and Retail
The IRI COVID-19 lmpactIncludes COVID-19 impact analyses, dashboards and the latest thought leadership on supply chain, consumer behavior, channel shifts for the U.S. AND international markets
IRI CPG Economic Indicators Including the IRI CPG Demand Index™, IRI CPG Supply Index™ and IRI CPG Inflation Tracker™
Accessible through the insights portal to track the daily impact of COVID-19. This includes top selling and out-of-stock categories across the country and consumer sentiment on social media.
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