Health & wellness through the eyes of the diverse consumer

HEALTH & WELLNESS THROUGH THE EYES OF THE DIVERSE CONSUMER

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PRESENTATION SPEAKER & PANELISTS

Maryellen MolyneauxNMI

Dr. James Gavin Partnership for a

Healthier America

T.J. McIntyreBoulder Brands

Todd Hale Nielsen

#Consumer360

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HOW DOES THE CPG INDUSTRY GROW IN THE CURRENT ENVIRONMENT?

WHAT’S WORKING AGAINST GROWTH?

Crowded shelves

Slowing population growth

Stagnant wages

WHAT CAN FUEL GROWTH?

Innovation Product enhancements

Underdeveloped consumer segments

#Consumer360

WHY SHOULD WE CAREABOUT HEALTH & WELLNESS?

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17%13%

HEALTH & WELLNESS OUTPACING RETAIL GROWTH

Avg. annual unit growth for the top 5 fastest growing healthy label claims

Organic label claims since 2010

Total store growth rate (units)

0.1%

Source: Nielsen Strategic Planner with Nielsen LabelTrends, Total U.S. - All Outlets Combined, 52-weeks ending 04/12/2014 (percent vs. year ago), UPC-coded

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AUDIENCE QUESTIONWHICH IS DRIVING GROWTH THE FASTEST?

GMOFree

Low Glycemic

Hormone Antibiotic

Free

Gluten Free Organic

#Consumer360

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“THE WHOLE WORLD HAS A WEIGHT PROBLEM”

Source: Institute for Health Metrics and Evaluation at the University of Washington; Frank Pompa, USA TODAY

The U.S. accounts for more than a tenth of the obese people worldwide, with only 5% of the population

13%

5%

Increase in Obesity and Those Overweight Since 1980

Percentage Who Were Obese and Overweight in 2013

Global Perspective on Obesity & Overweight Population

28%

47%

37%

14%

Adults Children

#Consumer360

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FOCUS ON HEALTH IS NOT A PASSING FADEVEN IN AMERICA’S BALLPARKS, THE SHIFT IS CLEAR

CHICAGOAdobo mango

chicken sausage

ANAHEIMPanini with zucchini, carrots,

mushrooms, tomatoes & pesto sauce

PHOENIXBlack-bean burger on a whole-wheat

COLORADO"Infield Greens"

build-your-own salad

Hot dogs

Sausages

Cotton candy

Fries

Nachos

PHILADELPHIAVeggie cheese steak

(vegan beef)

#Consumer360

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WHY DOES HEALTH & WELLNESS MATTER?

Source: World Health Organization; Centers for Disease Control 2012

65%of the world’s population live in

countries where overweight & obesity kills more people than underweight

35%of U.S. adults are obese

Leading to some of the foremost causes of preventable death… heart disease, stroke, type 2

diabetes & certain types of cancer

#Consumer360

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AGE

INCOME &EDUCATION

BUT THE EPIDEMIC IS NOT EVENLY DISPERSED

• Higher income woman are less likely to be obese• Women with college degrees less likely to be obese

Age Adjusted Obesity Rate Obesity Rate Among

35%60 plus40%

40 to 5930%

20 to 39

MULTICULTURAL

48%of Non-Hispanic Blacks

43%of Hispanics

33%of Non-Hispanic Whites

11%of Non-Hispanic Asians

Source: Centers for Disease Control & Prevention #Consumer360

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• What can NMI tell us about the evolution of consumer involvement in health & wellness over the past 15 years?

• What role can the private sector play in delivering healthier options & supporting the goal for a healthier America? Any success stories?

• Generally speaking, who has led the way toward increased health & wellness focus – retailers or manufacturers – and why?

THE NEED IS APPARENTPANEL QUESTIONS

#Consumer360

HOW ARE CONSUMER SEGMENTS RESPONDING TO HEALTHY OPTIONS?

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GOOD NEWS: OLDER & YOUNGER POSE UNTAPPED OPPORTUNITY FOR WINNING WELLNESS CLAIMS

Source: Nielsen Homescan with Nielsen LabelTrends, 52-week ending 12/28/2013, UPC-coded products

Low Glycemic

GMO Free

Gluten Free

Hormone Antibiotic Free

Organic

High Fructose Corn Syrup Free

Lactose Free

Protein Presence

Preservative Free

Index is: 120 or greater between 80–120 80 or

less

Female headUnder 35

35 – 45 55 – 65 65+Label claim:

SALES PER 1,000 HOUSEHOLDS INDEX BY AGE OF FEMALE HEAD OF HOUSEHOLD

CONSUMERS ARE APPROACHING PREVENTION

DIFFERENTLY

#Consumer360

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IS LOWER ATTRACTION AMONG LOW INCOME AN ISSUE WITH AWARENESS, AVAILABILITY OR PRICE?

Source: Nielsen Homescan with Nielsen LabelTrends, 52-week ending 12/28/2013, UPC-coded products

Index is: 120 or greater between 80–120 80 or

less

< $20k $20k –29.9k

$30k – 39.9

100k+Label claim:

Low Glycemic

GMO Free

Gluten Free

Hormone Antibiotic Free

Organic

High Fructose Corn Syrup Free

Lactose Free

Protein Presence

Preservative Free

$40k – 49.9l

$70k – 99.9

$50k – 69.9

SALES PER 1,000 HOUSEHOLDS INDEX BY HOUSEHOLD INCOME

CONSUMERS ARE APPROACHING PREVENTION

DIFFERENTLY

#Consumer360

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Index is: 120 or greater between 80–120 80 or

less

Caucasian African American Asian Hispanic (any race)Label claim:

Low Glycemic

GMO Free

Gluten Free

Hormone Antibiotic Free

Organic

High Fructose Corn Syrup Free

Lactose Free

Protein Presence

Preservative Free

ARE HIGHER SALES AMONG ASIANS DRIVEN BY ETHNICITY, EDUCATION OR INCOME?

Source: Nielsen Homescan with Nielsen LabelTrends, 52-week ending 12/28/2013, UPC-coded products

CONSUMERS ARE APPROACHING PREVENTION

DIFFERENTLY

SALES PER 1,000 HOUSEHOLDS INDEX BY RACE/ETHNICITY

#Consumer360

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86 90

136

105

64

103 104

164

95

A FOCUS ON FRESH REVEALS THE VARIATIONFRESH PRODUCE SALES INDEX

Source: Nielsen Homescan, 52 Weeks Ending 12/28/2013, UPC-coded

INCOMEGENERATIONMULTICULTURAL

Black Asian Hispanic (any race)

Millennials Boomers Greatest Generation

Under$25k

Income$200k

Gen X

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HEALTH-FOCUSED SHOPPERS ARE THE ONES YOU WANT

Least engaged Most engaged

Higher spending

Lower spending

Source: NMI; Nielsen Homescan, Total U.S. – 52 weeks ending 12/28/2013, UPC-coded

FRESH PRODUCE $ BUYING RATE INDEX

41% higher than expected

20% lower than expected

Expected produce buying rate

#Consumer360

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WHO’S LEADING THE WAYPANEL QUESTIONS

• Are highly-engaged consumers the biggest health & wellness opportunity group for manufacturers & retailers, or does the opportunity lie somewhere else along the spectrum?

• What factors do you think influence healthy lifestyles among low-income Americans, with regard to awareness, availability and/or price?

• Boulder Brands’ Udi’s and Glutino brands market directly to consumers seeking gluten-free. Tell us about your experience catering to such a specific group & health need. What resonates with them?

• What impact have you seen social media make on how consumers approach health? How can brands, retailers & government leverage it to promote health & wellness?

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HEALTH & WELLNESS THEMES RESONATING ACROSS CONSUMER GROUPS

Source: Nielsen, NMI

HEALTHY SNACKING KNOWLEDGE IS POWER FOOD AS MEDICINE

#Consumer360

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WHERE SHOULD YOU START?PANEL QUESTIONS

• Do you care to comment on any of these three themes?

• Do you see the private sector getting ahead of government mandates when it comes to better nutrition? Or is the government leading the way?

• What are the next big health & wellness trends our audience should consider as they look for growth in a challenging retail landscape?

#Consumer360

AUDIENCE Q&A