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Small snack, big ask What consumers want from the snacks sector Gil Horsky Innovation Platform Head Global Chocolate Team [email protected] 02/03/2017

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Page 1: What consumers want from the snacks sector · PDF fileWhat consumers want from the snacks sector ... their own chocolate downloading a shape from ... sold to the project and decorating

Small snack, big ask What consumers want from the snacks sector

Gil Horsky – Innovation Platform Head

Global Chocolate Team

[email protected]

02/03/2017

Page 2: What consumers want from the snacks sector · PDF fileWhat consumers want from the snacks sector ... their own chocolate downloading a shape from ... sold to the project and decorating

Mondelēz International launched on 1/10/2012 , and has

approx. $30 billion revenues

Global leader in biscuits, chocolate,

and candy

100,000 employees in 165 countries

44 brands generate +$100MM sales

Worldwide Favorite Brands Five Key Categories Global Footprint

Page 3: What consumers want from the snacks sector · PDF fileWhat consumers want from the snacks sector ... their own chocolate downloading a shape from ... sold to the project and decorating

So what do I do for a living…mainly eating lots of chocolate

Chocolate Office Job

Page 4: What consumers want from the snacks sector · PDF fileWhat consumers want from the snacks sector ... their own chocolate downloading a shape from ... sold to the project and decorating

Is it a Trend or a Fad?

Trend Fad

• Demand-led market force that drives long-term sales growth (10 years+)

• Must be connected to a widespread cultural demand space (class mobility, globalization of food culture etc.)

• Focuses on higher-order principles of eating or cuts across categories

• Examples: natural / organic food, global cuisine, low sugar, premiumisation

• Exhibits 1-3 years of growth but declines quickly

• Not connected to any underlying demand area relevant to food culture

• Tends to be of lower order, superficial innovation

• Examples: diet programs (low-carb), specific flavor profiles (sweet & salty)

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© 52014

Global Snacking Growth Trends

New opportunities and occasions for sharing

snacking experiences that are emerging from blending

food culture and technology

Increasing awareness of the role snacking plays as part

of diets and nutrition in securing daily wellbeing and

lifelong health

Elevating everyday snacking moments via experiences and sensations that offer release,

escape and enlightenment

Forging closer connections between the food and drink we consume and the world we live in; striving to make a positive

impact

Instant, real time access to products, brands and services anytime, anywhere, helping consumers meet different

needs in different moments

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© 62014

As many people feel isolated and stressed, they

look for more ways to connect up with each other,

especially with new easy social networking tools.

As snacking becomes integral to lifestyles, sharing

these becomes another important way to create

and augment social experiences. Even when

snacking solo, consumers are looking for ways to

avoid feeling like it is an isolating indulgence.

65%of 16-25 year olds globally admit they

can’t imagine life without the internet

anymore

#foodpornhas been attached to 25MM

Instagram pictures uploads

Communal Dinning

EatWith the “AirBnB of Food” brings Chefs

and foodies together in communal dinning

tables one meal at a time. Already

operates in 200 cities globally and

growing.

Gifts with a very personal touch

Social Sharing

The Chocabyte 3D printer allow users to create

their own chocolate downloading a shape from

a database or designing one using a consumer

friendly software. Users can even take a photo

of themselves and print that off as a chocolate

selfie to share with their friends.

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© 72014

Pursuit of Pleasure

With the growth of post-materialist values, pursuing

happiness and expressing status is about more than

wealth. People seek experiences that truly enable

them to cherish the moment, which also explains why

Mindfullness has become such a significant trend.

Snacking on chocolate is often experienced as an

intense moment of relaxation, momentarily releasing

consumers from work and life pressures, offering the

possibility of escapism and self-expression.

The night shift

50%

“I am always looking

for new experiences

and sensations that will

liven up my everyday

activities.” (% agree)

56%

20142011

Exciting new formats

Le Whif lets users

experience chocolate in a

new way by inhaling

instead of eating it.

Chocolatier Dominiue

Personne invented the

Chocolate Shooter where

consumers would snort

powdered chocolate up

their nose.

Kellogg’s repackaged All-

Bran cereal claims that

night consumption may help

with digestion.

As the global workforce

grows and tech advances

make it harder

to “clock out”, consumers

need products that provide

comfort or relaxation before

bedtime,

and restore the

body while they rest.

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© 82014

Behind the scenes

People are feeling increasingly distrustful of

businesses, and more disconnected from

traditional habits and the food they eat by modern

lifestyles. They are looking for brands that are more

genuine and trustworthy. This means drawing on

most reassuring elements of tradition, and also

demonstrating how brands care and support for

their customers and the communities they live in.

“I am increasingly sceptical of

the claims made by brands on

packaging and in

advertisements.”

2014

63%59%

2011

Commitment to social responsibility

Real World Connections

Since the devastating tsunami and earthquake

in 2011, KitKat has become a great symbol of

optimism in Japan. During reconstruction on

the Sanriku Railway, workers received KitKat

bars as a means of encouragement and hope.

After learning of this, Nestlé decided to build

upon, donating 20 Yen ($.20 USD) per bar

sold to the project and decorating two stations

with cherry blossoms, the symbol of hope.

Meine kleine Farm is an

online pork retailer with

a difference: the site

allows you to see

pictures of and read

about each pig before

selecting. The

company’s tagline -

“Less meat – more

respect” –

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© 92014

Mission Nutrition

Allergies, intolerances and the rapid increase in

conditions such as obesity and diabetes are shifting

the way people think about snacking. Being healthy is

becoming increasingly aspirational as consumers

struggle to control their health and become more

conscious about the food choices they make. This also

means that they are expecting food companies to be

part of the solution, not the problem.

65% of consumers consider being physically fit

and in good health to be a

sign of success or

accomplishment

New technologies Naturally good

DouxMatok is set to disrupt the sugar and

sweetener market by taking a lesson from

the pharmaceutical industry’s research in

targeted drug delivery.

It coats minerals with sugar, which keeps

most of it from being released until it hits

the sweetness receptor.

Developed for the on-the-go, well-being-

focused Millennial consumer – open to

discovery, adventure and authenticity.

No artificial ingredients or colors, no trans

fats and non-GMO. Feature bold regional

flavors

Large FMCG’s lost $18B in

share to smaller health driven

competitors in the past 4 years

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© 102014

Instant Everywhere

Time is an increasingly precious resource and our

multitasking lifestyles are propelling a need for short-

cut solutions, as consumers expect products to

simplify their lives, and to be available and accessible

to them whenever they need through direct-to-

consumer, new formats and vending options. The

hectic pace of modern life has fuelled the evolution of

snacking and other on-the-go products.

Direct-to-Consumer New formats

66% of Consumers say:

“More and more, I am

looking for ways to simplify

my life”

Go Cubes are chewable coffee bites made with

real-brew coffee. 2 cubes provide the same

amount caffeine as one cup of coffee.

.

5 years since launch

Dollar Shave Club, led to a

drop in P&G’s NA share in

razors from 71% to 59%

In ‘17 the time saved by a food or drink product

proj. to become

a clear selling point

Global DTC sales of

FMCG products are

projected to top $130bn

within a decade

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Final thoughts on embedding snacking or food trends

into your work

1. Leave the office…you will not find the next trends sitting at your desk

2. Follow “trend-leading” geographies, startups & consumer groups to know what can become mainstream in a few years

3. Look outside your industry for potential trends that might shape your category

4. Try to understand if it is a “trend” or a “fad”, and try to time-it right

5. Formally embed a “trends perspective” as one of the inputs into your strategic and new product pipeline planning

6. “Crash” two (or 3) trends together as a catalyst for new product development

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Questions or feedback:[email protected]