Consumer Sales Response to Whole Grain Certified Natural Products. Presented by Bobbi Leahy SPINS January 2011
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1 Consumer Sales Response to Whole Grain Certified Natural Products Presented by Bobbi Leahy SPINS January
2 Agenda What is SPINS data? A Whole Grain Year Insights and Trends
3 Who is SPINS? Founded in 1995 and privately held in Schaumburg, IL with 60 passionate employees Syndicated reporting business model with exclusive proprietary natural and specialty channel reporting Strategic alliance with The Nielsen Company 3
4 SPINS Primary Data Sources 4 SPINSscan Natural Proprietary POS collection and reporting service for Natural Supermarkets $2mm+ annual volume, sales in all depts, >50% Natural/Organic sales and <50% supplement sales SPINSscan Specialty-Gourmet Proprietary POS collection and reporting service for Gourmet supermarkets $2 mm+ annual volume, sales in all depts, >25% SPINS-defined specialty product sales (includes natural items) SPINSscan Conventional POS reporting for SPINS-defined natural/organic UPC universe in FDM through a strategic partnership with The Nielsen Company Combines the integrity of Nielsen data with SPINS expertise in coding SPINSscan Consumer Consumer behavior reporting combining SPINS industry definitions with consumer panel data collected by The Nielsen Company Data collected from over 100,000 households Scanners used by consumer panelists to capture actual purchases across all outlets
5 Label Content 4 Levels NOP Organic 430 Primary Ingredients Gluten Free Soy ingredients Fortification Hormone Free Non GMO Whole Grain Certified SPINS Product Library a Common Language The most complete and sophisticated library of natural products available, containing 864,000 UPCs Product Positioning Organic Natural Specialty Raw Foods Green Foods Fair Trade Health Concern Functional 5 SPINS January 2011
6 Product Library: Natural Product Position Coding Leverage SPINS proprietary position coding to understand the deeper dynamics within the industry and take actions based on these insights SPINS considers five factors in coding product position, based on a natural and specialty consumer bias: Ingredient Standards Product Category Rules Brand Intention (Natural) Consumer Perception Channel Distribution 6
7 Product Library: Natural Product Position Coding Organics have this same position coding 7 SPINS January 2011
8 2010 WGC Natural Products Year in Review 8
9 What Did 2010 Look Like? Sales Of WGC Natural Products up over 11% Sales in Natural Supermarkets Outpaced Conventional Food Stores $618.4M $687.3M +11.1% +12.3% +7.9% +11.2% 9 Combined SPINSscan Natural, SPINS Specialty Gourmet, and SPINSscan Conventional Food Stores excluding Whole Foods Total US; Naturally positioned upc coded products only, 52 WE and YA
10 What Did 2010 Look Like? Not Surprising, Dry Grocery Dept Captures the Largest Share of WGC Natural Product Dollar Sales Millions Whole Grain Cert Dollars Sales by Department Natural Supermarkets+Conventional Food Stores+Specialty Gourmet Stores $ $62. $0.3 Grocery Frozen Refrigerated 10 Combined SPINSscan Natural, SPINS Specialty Gourmet, and SPINSscan Conventional Food Stores excluding Whole Foods Total US; Naturally positioned upc coded products only, 52 WE
11 11 Natural Brands with the WGC
12 What Did 2010 Look Like? WGC Natural Product performance Top WGC Natural Dollar Share Products - $ Share Natural Supermarkets The Top 4 segments account for over 50% of WGC Natural products sold in Natural Supermarkets 46% All Other Adult/Family Cereal 27% Hot Cereal (non instant) 7% Bread Loaves 12% Snack Bars 8% 12 SPINSscan Natural, excluding Whole Foods Total US; Naturally positioned upc coded products only, 52 WE and YA
13 Key WGC Categories Growing Natural Products Dollar Sales (millions) Natural Supermarkets+Conventional Food Stores+Specialty Gourmet Stores 13 Combined SPINSscan Natural, SPINS Specialty Gourmet, and SPINSscan Conventional Food Stores excluding Whole Foods Total US; Naturally positioned upc coded products only, 52 WE and YA
14 What did 2010 Look Like? Natural Supermarkets CRISPBREADS & WAFERS & TOASTS LIFESTYLE & WELLNESS BARS WGC Natural Product performance Top subcategories Based on % Dollar Growth Product Innovation Occurs in Natural and Specialty. Therefore, watch for increasing consumer demand in the Conventional food store for WGC Pretzels, Crispbreads, Gain/Rice Sides, Frz Entrees PACKAGED COOKIES Specialty Gourmet Stores PACKAGED SHORT PASTA Conventional Food Stores BAKED GOODS LIFESTYLE & WELLNESS BARS PRETZELS BAKED GOODS BREAD LOAVES FROZEN PIES & BROWNIES & OTHERS GRAIN & RICE DISHES FZ KIDS MEALS SIDES & SNACKS FZ VEG LUNCH & DINNER ENTREES KIDS CEREALS LIFESTYLE & WELLNESS BARS PRETZELS BAKED GOODS PIZZA SHELLS & FOCACCIA RICE & ALTERNATIVE GRAIN CRACKERS FZ KIDS MEALS SIDES & SNACKS GRAIN & RICE DISHES REGULAR RICE CAKES BREAD LOAVES FZ KIDS MEALS SIDES & SNACKS PACKAGED SHORT PASTA RICE & ALTERNATIVE GRAIN CRACKERS PACKAGED COOKIES PIZZA SHELLS & FOCACCIA PACKAGED GRAINS FROZEN PIES & BROWNIES & OTHERS 14 Combined SPINSscan Natural, SPINS Specialty Gourmet, and SPINSscan Conventional Food Stores excluding Whole Foods Total US; Naturally positioned upc coded products only, 52 WE and YA
15 15 A New Year SPINS TRENDWATCH: 2011
16 SPINS Trend Watch: 2011 Truth in Labeling Becoming increasingly relevant for many consumers Third party certifications on the rise as there is a need to regulate label claims and empower shoppers to make informed purchasing decisions Transparency and accountability Food safety 16
17 SPINS Trend Watch: Trends Expected to Continue The consumer employed more sophisticated shopping strategies at a time with evolving product and channel options Segments with notable growth include vs Retail Channel Gluten Free RAW 17 SPINscan Natural, Specialty Gourmet, and Conventional (powered by Nielsen Scantrack) 52 weeks ending December 25, 2010, Food and Beverage
18 Key Takeaways Whole Grain Certified products contribute to Natural product growth Consumers vote with their dollars and sales show they are embracing WGC products All Channels are important outlets for Natural WGC products Ingredient trends can play a role in fueling WGC growth in
19 SPINS Trend Watch: 2011 Quinoa (whole grain) This Andean supergrain is in high demand for its extraordinary health benefits Provides 10 essential amino acids and is high in complete protein content Gluten-free and easily digestible Appealing to vegans needing to increase protein intake Substitute quinoa for rice in just about anything! 19
20 SPINS Trend Watch: 2011 A hot ingredient compliment for WGC Natural Products Chia (move over, flax!) Help stabilize blood sugar and reduce food cravings Provides rich nutrients such as proteins, essential fatty acids, antioxidants, and fiber for sustained energy Promotes heart health [though not whole grain] Easy to digest (doesn t have to be ground) The seeds are ideal for athletes since they are hydrophyllic, meaning they absorb water to keep us hydrated 20
21 Thank you! For more information, please contact SPINS: 1111 Plaza Drive, Suite 715 Schaumburg, IL
22 Appendix Oldways and the Whole Grains Council Those in red are Gluten Free 22
23 Product Library: Specialty Product Position Coding Conventional and Conventional Health and Wellness Brand Positions are also coded in our databases. 23 SPINS January 2011
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