Communicating cereals as a healthy choice for breakfast: making our

products more nutritious

Natalie Forkin Marketing Controller

Portfolio Initiatives, Cereal Partners UK

• Have a good story to tell

• Make it a better story

• Tell it well

Nestlé Breakfast Cereals

Who are Cereal Partners?

Founded in 1990 in UK

• 50+ brands • >400,000 tonnes • Net Sales of c. 2 billion CHF • 4600+ employees • 17 factories • Sales in 150+ countries

Global focus on health and nutrition

• Ongoing commitment to health and nutrition by continuously driving enhancement and nutritional profile of our breakfast cereals

Our vision

Our mission

To be the world’s favourite breakfast cereal company

To create a world of cereal lovers by making healthier breakfasts easier

• UK + Ireland

• 12 brands

• >50,000 tonnes

• c.550 employees

• 2 factories

UK Nestlé Cereals Portfolio

• Have a good story to tell

BREAKFAST CEREALS – A GREAT START TO THE DAY

Have a good story to tell

In the UK breakfast cereals contribute positively to nutrient intake

0

5

10

15

20

25

% c

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uti

on

to

to

tal i

nta

ke

Energy/nutrient

• Intakes of iron, B vitamins and vitamin D were 20-60% higher in those with the highest consumption of breakfast cereals, compared with the lowest.

• Gibson et al, 2011 (UK Diet and Nutrition Survey)

NDNS

Compared with other breakfasts, a cereals breakfast is associated with higher fibre intake at breakfast.

• Breakfast cereals contribute to 15% of the daily fibre intake in the diet of EU adolescents who regularly consume breakfast cereals.

In Europe, breakfast cereals consumption is associated with a higher fibre intake at breakfast

Breakfast cereals do not contribute significant amounts of salt to the UK diet

• 2% of the salt in people's diets comes from breakfast cereals • Breakfast cereals on average contain only 0.241g of sodium per 100g • Some breakfast cereals do not contain any added salt

5% United

States Source: CDC 2004-6

5% Ireland

Source: IUNA Irish

National Teens’ Food

Survey 2005-6

5% UK

Source: National

diet and nutrition

survey 2014

<5% Australia

Source: 2007 National

Children’s Nutrition and

Physical Activity Survey

Breakfast cereals consistently make a small contribution to sugar intakes

Breakfast Cereals deliver against consumer needs

Breakfast cereal definitely sets you up for the day, its filling taste nice and is also quick to prepare (bowl, pour cereal, pour milk... job done)

As a family we probably eat more cereal now than we used to, mainly because it's quick and convenient and if they want a second helping it's easy to do. To be honest I don't think there are any negative points to cereal. I think the benefits of breakfast

cereals are that they fill you up and can be very nutritious, they can also be such a pleasure to eat, and such a variety to choose from. They can also be a good source of nutrients, folic acid, vitamins and minerals, wholegrains and so on.

• Make it a better story

IMPROVING THE NUTRITIONAL CREDENTIALS OF NESTLÉ CEREALS

Make it a better story

Since 2003, we have made important changes to our breakfast cereals:

Added over 3.8 billion servings of whole grain*; every bowl of Nestlé breakfast cereal carrying the green banner contains at least 8g whole grain per serving

Removed over 18,000 tonnes sugar

Removed over 900 tonnes of salt

Helping more people all over the world to eat a better breakfast

* Annual amounts based on 2013 production volume

Product Reformulation

•Needs to balance:

Our Global Nutrition Commitment:

By the end of 2015 Nestlé branded breakfast cereals popular with kids and teens will:

Contain 9g total sugars or less per serving.*

Contain 135mg sodium or less per serving.

Be made with more Whole Grain than any other ingredient.

Be a good source of calcium per serving (15% RDA per serving).**

15 * 30g as defined in 2008 by European Breakfast Cereal Association **Recommended Daily Amount (applies in countries where our products are fortified)

REDUCING SUGAR Reformulation

• Sugar has an important role in breakfast cereals;

– adding sweetness

– contributing to the texture, colour and flavour

• Reducing sugar in breakfast cereal will not affect calories

– all carbohydrates provide the same amount of energy (4 kcal/g)

Nestlé Breakfast Cereals: Sugar Reduction

• Taking sugar out of the cereal base, “replacing’’ it with whole grain or refined flour

• Reducing the amount of coating: less coating = less sugar in the final product

• Reducing the amount of sugar in the coating

We have reduced sugar in many of our breakfast cereals in recent years, in line with changing consumer demand for increased choice, by:

*Nesquik was lowered from 35% to 30% in 2011

BRAND

BEFORE g/100

AFTER g/100

REDUCTION g/100

20

This has led to significant sugar reduction

Honey Cheerios

Cookie Crisp

Curiously Cinnamon

Nesquik*

35

34

32

30

25

25

25

25

-30%

-29%

-22%

-17%

REDUCING SALT Reformulation

Reducing Salt

• Salt increases the rate of formation of Maillard reaction formation of colour and flavour

• Cereal manufacturers reducing salt for a number of years (prior to the FSA and Department of Health policies on salt reduction)

• Cereal manufacturers achieved 58% reduction between 1998 and 2013

• The sensory “ triangle test ” is used to determine whether reductions can be perceived

• If successful, scale-up from pilot plant to factory trial then to full-scale manufacturing processes

• After about 12-18 months the above procedure is repeated

• Repeated stepwise approach achieves an acceptable reduction over time that could not be achieved in ‘one hit’

• This suggests that people do adapt to less salt

• What is not known is where the end point is - i.e. when consumers will not accept further reductions

Nestlé Breakfast Cereals: Salt Reduction

INCREASING WHOLE GRAIN Reformulation

Nestlé Cereals Whole Grain Commitment

• All Nestlé Breakfast Cereals with the green banner made with Whole Grain

• Introduced from June 2005

– Introduction of Whole Grain into products without changing the taste or appearance

– Work to increase knowledge & understanding of Whole Grain and their role in the diet

– Green banner introduced on to front of pack

Over 3.8 billion more servings of Whole Grain globally

• Whole grains represent more than one-third of the recipe of Nesquik ®

• 100g of Nestlé Nesquik breakfast cereal contains 44.6g of whole wheat

Increasing Whole Grain

IMPROVING FORTIFICATION Reformulation

Fortification: key product benefit

• Fat-soluble vitamin naturally present in very few foods

• Deficiency in certain groups of population

• A range of Nestlé Cereals in the UK contain vitamin D including – CHEERIOS range

– GOLDEN NUGGETS

– NESQUIK

– COOKIE CRISP

– GLUTEN FREE CORNFLAKES

Vitamin D

• Key to Global Nutrition Commitment

• Absorption aided by vitamin D

• A range of Nestlé Cereals in the UK already contain calcium including – CHEERIOS range

– GOLDEN NUGGETS

– NESQUIK

– COOKIE CRISP

– OATS & MORE

Calcium

But we won’t stop there

• Future Renovation Programme

– Further sugar reductions

– Further salt reductions • Dept of Health Salt Responsibility Deal

– Further increase of whole grain

– Further review of vitamins & minerals

• Tell it well

ENGAGING CONSUMERS

Tell the story well

Nestlé Cereals Health & Nutrition Communication

• A priority for Nestlé Breakfast Cereals since 2000

• Early campaigns focussed on Whole Grain in SHREDDED WHEAT, SHREDDIES & CHEERIOS

• Utilised a Whole Grain + heart health claim – differentiated

– potential to reference health claims

– motivating to consumers

• ‘New Year New You’ timing, January every year

Nestlé Cereals Whole Grain TVC 2004

Nestlé Cereals Health & Nutrition Communication

• In 2005 Whole Grain was added to all Nestlé Cereals

• Health & Nutrition communication top business priority

• Regular support throughout the year

• Other media channels utilised – GMTV sponsorship

– Print

– Website

– Celebrity endorsement

• Strong sales uplift and ROI

Ongoing commitment to Health & Nutrition Communication

Multi-media 360 campaigns throughout the year

Retailer support

Positive business results

? How to stand out and cut through

? How to drive persuasion

? How to comply with the regulatory framework

2014 Campaign – Max Canyon

• Insight:

– ‘I’m not sure it’s that easy to find a nutritious breakfast’

• Target audience:

– Mums

• Strategy:

– Demonstrate that Nestlé Cereals are an easy way to get a nutritious start to the day

Max Canyon Shredded Wheat

Max Canyon 2014

Health & Nutrition on pack

Results

• Improved Market Share

• Strong individual brand performance

• Positive ROI and good sales uplifts

• Good awareness of green banner

• High levels of engagement with digital activity

• Above norm impact and stand out for Max Canyon (MB)

• Have a good story to tell

• Make it a better story

• Tell it well

Nestlé Breakfast Cereals

Thank You