Changing the consumers perceptions of Dairy. Jilly Whibberley Dairy Innovation Summit 5 April 2017

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Jared Byrd
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1 Changing the consumers perceptions of Dairy Jilly Whibberley Dairy Innovation Summit 5 April 2017

2 Let s take dairy Natural Home grown Nutrient-packed Wholesome

3 The rules have changed Dairy is no longer an overarching label, it is being distinguished by what or how it delivers Children s Health and Development Organic Portioned Perfection Gut Health Build muscle IMF for healthy growth, reflux, sleeping! Provenance Shrink recovery time For Intolerance

4 mls/person/week UK milk consumption is in long term decline 2,500 Average Consumption of Milk - UK 2,000 1,500 1,000 30% Decline in Average Milk consumption per capita since Total Milk Source: UK DEFRA family food study

Milk sensitivity is one reason for the decline 20% Of the UK population have issues consuming milk 2-5% Are actually Lactose intolerant But it s a much

5 Milk sensitivity is one reason for the decline 20% Of the UK population have issues consuming milk 2-5% Are actually Lactose intolerant But it s a much bigger issue than lactose intolerance Sources: 1. Multiple a2 studies. Inc SPA study LI figures - NHS Choices Lactose intolerance page and Pelto 1999

6 What was once touted as the one-stop supplier of most nutrients is going out of fashion Younger generations do not always see dairy as being an essential part of their diet Young girls and teenagers tend perceive it as being a fatty food Not exciting enough for younger generations

7 If you see a person drinking cow s milk in public today, it pretty much demands an immediate double take. Consumers can be heavily influenced by pseudohealth experts or celebrities rather than traditional science. Veganism is going mainstream

Worse still, we are breeding a culture of milk rejecters 39% of mums who reduce or stop milk themselves also reduce or stop milk consumption for their

8 Worse still, we are breeding a culture of milk rejecters 39% of mums who reduce or stop milk themselves also reduce or stop milk consumption for their children. Most of the people I know don t give milk to their children Well-heeled Mum of 3 year old - Gloucestershire 2014 Source: a2 Milk study May people

9 Imitation is the highest form of flattery. Nuts, peas, plants and rice love the inspiration they get from dairy Milk is the nutritional GOLD standard that alternatives use as a blueprint for inspiration.

10 a2 Milk - an innovation platform for dairy

11 Not all cows milk is the same Regular cows milk is naturally a combination of A1 and A2 beta casein protein Originally domesticated cows only produced A2- type protein Most Western herds and breeds contain the A1 protein It is the A1 protein that some people find hard to digest DNA test enables us to select and certify our farm cows to naturally produce only the A2 protein From there we produce a2 Milk - fresh, natural cows milk that s naturally easy to digest. A natural solution for people that don t get on with milk. EFSA REPORT (2009) acknowledges that BCM7 from A1 protein has an impact on digestion.

The Australian Experience Price premium $5 vs $2 for own label Growing category consumption and profitability Consumption has grown over the last 8 years coinciding with the

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12 The Australian Experience Price premium $5 vs $2 for own label Growing category consumption and profitability Consumption has grown over the last 8 years coinciding with the growth acceleration of the a2 Milk brand $25,000 G R O S S S A L E S A $ ( ' S ) $20,000 $15,000 $10,000 $5,000 $0 Qtr To Qtr To Qtr To Qtr To Qtr To Qtr To Qtr To Qtr To Qtr To Qtr to Qtr to Qtr To Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to Qtr to 30/09/07 31/12/07 31/03/08 30/06/08 30/09/08 31/12/08 31/03/09 30/06/09 30/09/09 31/12/09 31/3/

The Australian Experience a2 Milk now has

Bigger than Lactose free, Organic and the

expand a2 Platinum infant formula Fastest

13 The Australian Experience a2 Milk now has over 9% market share of grocery milk market Bigger than Lactose free, Organic and the Dairy Alternatives category combined. 2 skus in Top 20 Grocery branded skus. Strong concept has given the opportunity to expand a2 Platinum infant formula Fastest growing infant formula brand in AUS share c25% Souce: Internal

a2 Milk works for consumers and retailers Consumers want that fit with their

has a strong, authentic provenance story 100% natural product Premium paid to

14 a2 Milk works for consumers and retailers Consumers want that fit with their needs and values a2 Milk is unique proposition that can change their life It has a strong, authentic provenance story 100% natural product Premium paid to farmers on all a2 Milk Driving sustainable category growth a2 Milk genuinely brings new customers to the category High loyalty brand Offers a good value proposition to FILKs a2 Milk brings in higher basket spend customers *16/12/2016 The Grocer.

15 The a2 Milk Company We support the health and taste benefits of milk and dairy to the UK population at large We understand that 20% of the population have issues with milk We explain how many can drink cows milk again and that dairy-free is not the only way We educate that not all cows milk is the same We engage with consumers that are simply not interested We breakdown the barriers and preconceptions We delight consumers when they discover they can drink milk again Pro Dairy Pro Milk Pro Farmer Pro Consumer

16 Positive consumer experiences are fundamental to the success of a2 Milk Inviting consumers to see milk in a new light Astonishing stories Astonishing milk

17 The UKs No.1 Parenting Site

18 Using REAL consumer stories to engage with our target

19 Speaking to consumers about their needs - Engaging & Charming - - Simple & Natural - Speaking to consumers about their needs Engaging & Charming Simple & Natural

21 To Close There has been a dramatic reduction in milk consumption in the UK over the last 30 years Dairy sensitivity is real and growing Failing to face it is damaging the industry and will result in falling demand, lower prices and opportunity for FILKs (Fake milks) to steal share We should learn from other regions - US in Lactose Free and Australia in a2 Milk Pro Dairy alternatives for those who can t drink milk should be encouraged Build the Can t drink Milk category and ensure dairy wins by: Understanding consumer needs Educating about milk intolerance Encouraging trial of lactose free alternatives and different protein alternatives

THANK YOU Consumer stories We have found a2 Milk

with normal milk, but a2 seems to have relieved

No more belly-holder inner knickers on nights out!

milk. I don t like any other milk & just wanted to

Since switching to a2 Milk, I m able to enjoy

This has improved my overall wellbeing 28% of

22 THANK YOU Consumer stories We have found a2 Milk to be fantastic as my partner has a real problem with normal milk, but a2 seems to have relieved this! Thanks! No more belly-holder inner knickers on nights out! Our life has been transformed and this happened literally overnight! I just wanted to tell you how much I love your milk. I don t like any other milk & just wanted to say thanks for being that little bit different Since switching to a2 Milk, I m able to enjoy dairy again. This has improved my overall wellbeing 28% of Australian pregnant women drink a2 Milk a2 Milk has truly changed our lives. My son, Noah, has terrible reflux and was constantly ill. It wasn t until I discovered a2 Milk that I realised the cause was the A1 protein. Almost immediately his reflux stopped and he was happy again. My kids are not complaining of tummy aches any more. They are actually asking for glasses of milk, whereas before they would only ask for water or juice. My son loves the taste. I love the taste.

OPPORTUNITIES FOR NEW ZE A L A N D F O O D & BEVERAGE IN THE UNITED STATES THE KURA NUTRITION CASE STUDY

OPPORTUNITIES FOR NEW ZE A L A N D F O O D & BEVERAGE IN THE UNITED STATES THE KURA NUTRITION CASE STUDY THE KURA STORY Family founded Experience operated S U S T A I N A B I L I T Y I S I N O U R B L