From A to Gen ZCentral Plains Dairy Expo Women’s ConferenceNovember 6, 2019

Brianne Henderson – Midwest Dairy

Objectives1. Gen Z Values, Beliefs and Expectations2. Connect with Gen Z3. Check-off work to date

U.S. Generation Distribution

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Generation Z27%

Millennials 24%

Generation X16%

Baby Boomers23%

Silent Generation10%

1996-2010 Under 21

1979-1995 Age 21-381965-1978 Age 39-50

1946-1964 Age 51-69

1925-1945 Age 70-93

Source: Nielsen Population Facts

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1946-1964Age 51-69

1979-1995Age 21-38

SILENT

GENERATION BOOMERS GEN X MILLENNIALS GEN Z

1996-2010Age 8-21

1965-1978Age 39-50

1925-1945Age 70-93

Source: Marketing to Gen Z by Jeff Fromm and Angie Read

Group Activity!

What are some events that define each generation?

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1979-1995Age 21-38

SILENT

GENERATION BOOMERS GEN X MILLENNIALS GEN Z

9/11Columbine

GoogleSocial mediaVideo games

Y2K

1996-2010Age 8-21

The Great Recession

ISISSandy Hook

Marriage equality

The first black presidentThe rise of populism

1965-1978Age 39-50

The fall of the Berlin wall

The challenger disaster

AIDSMTV

Desert Storm

1946-1964Age 51-69

VietnamWoodstock

The Civil Rights

MovementPresident Kennedy’s

assassinationWatergate

Space exploration

1925-1945Age 70-93

The Great Depression

The Dust BowlWWII

McCarthyism

Source: Marketing to Gen Z by Jeff Fromm and Angie Read

6Source: Barkley Advertising

Gen Z: The Pivotal Generation

Gen Z will account for 40% of the population by 2020.

Source: Nielsen Population Facts & Datassential

Meet Hudson H., 14-years-old

Is there a Gen Z-er in your life?

What Makes Gen Z Different Than Other

Generations?

Mobile and Connected From BirthFirst truly digital generation

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There’s no difference

between online and

offline – it’s all the

same.

They use social media to

amplify their IRL social

lives, educate themselves,

have fun and be

entertained.

They have never

heard of a flip phone.

Because they are so

connected to

information, they

have family buying

power.

Notoriously overscheduledGen Z have unusually early experience with and awareness of stress,

anxiety, and depression, which used to be much more adult concerns.

12Source: The Family Room and Dairy Management Inc

Old Souls in Young Bodies

-Terrorism

-Violence

-The economy

-Global warming

More independent than

previous generations

WORRIES

-Equality

-Success

must be

earned

VALUES

BELIEFS-Intelligence

-Diversity

-Family

Source: Marketing to Gen Z Jeff Fromm and Angie Read

How Often Do You Worry About…

Source: Family Room 2017 Gen Z Passion Point Study

(Teens 13-18)

20%16% 15% 16%

21%21%

18% 16%

23%25%

25%22%

0%

10%

20%

30%

40%

50%

60%

70%

School Violence Terrorism Pollution in Air & Water Global Warming &Climate Change

Daily

Weekly

Monthly

Most Ethnically Diverse Generation

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GEN ZMILLENNIALSGEN XBOOMERS

27% 39% 43% 49%

They celebrate their differences and

see the world with fewer boundaries.

PERCENT OF NON-WHITE POPULATION BY GENERATION

Source :US Bureau of Census, census.gov

The Shortest Attention Span

The average

Millennial attention

span

The average gold

fish attention span

SECONDS

128

SECONDS

The average Gen Z

attention span

9SECONDS

Source: The Hartman Group, Forbes, TIME

and Fast Company

And They Are Willing to Experiment

17Source :2018 Information Resource Inc (IRI)

More Willing to Pay for Health

Attributes than Any Other Generation

8

Source: Nielsen

Premium

Healthier

31%Sustainably-sourced

Compared to 29% of Millennials

and 23% of Baby Boomers.

What Do Pivotals Care About?

Mobile isn’t just cool. It’s life.

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98% own smartphones and they spend ~3.5 hours per day on their phone.

Source: IRI 2017 Top Trends in Fresh

Eating Healthy (and delicious) Foods

• Organic holds more value to Gen Z’ers than older generations.

• They want fresh, natural foods with a variety of options.

• They want ingredients that are sustainable, healthychoices.

• They still like to indulge, but they are more aware of what is healthy and what is not.

Source: Barkley Advertising

There is a Paradigm Shift Among

Gen Z on the Meaning of Healthy

From “Being Healthy” To “Being Well”

Source: IRI Growth Summit 2018 & The Hartman Group

Communication through Video and

Photo

Source: 2017 IRI Top Trends in Fresh: Social Strategy and Cultural Alignment

Pivotals have never known a world without instant consumption of

snackable content, day or night.

Personalization

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Black coffee

Grande 2%

double-

blended

extra whip

extra

caramel with

java chips

caramel

Frappuccino

Source: IRI 2017

Transparency in Processing Methods

and Ingredients

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Transparency is an expectation rather than a pleasant option.

• Who made it?

• Who owns the company that made it?

• Where is it from?

• How was it produced?

• Did they treat their workers fairly?

• Can I reuse or recycle the packaging?

• What’s the environmental impact?

• Does it have harmful or unnatural ingredients?

Source: The Hartman Group 2015 Health & Wellness

Quick, Convenient Options

The reason they still shop in-store? Instant gratification.

Pivotals want everything to be fast.

Source: Marketing to Gen Z by Jeff Fromm and Angie Read

61%

58%

Would choose same-day

delivery even if it meant

paying a surcharge.

Would pay even more

for one-hour deliveries.

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Group Activity!

• Customization

• Focus on wellness

• Convenience

• Online presence

• Transparency

Fort Zumwalt South High School

Customization

Kum & Go is a Convenience Store chain headquartered in Des Moines, IA with over 400 stores in 9 Midwest Dairy States

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Demand Initiative:

GETTING THE SHELF RIGHT…

Midwest Dairy funded coolers to be placed in secondary locations in 5 test stores:• NE, IA, MO

Installed May 2019

Key Takeaways:

• This data highlights a clear incremental sales

lift with the additional location

• Providing dairy offerings alongside the on-

the-go meals increases basket size

• Consumers are more willing to make the

transition to Better For You with increased

convenience.

--- Brandon Borts, Dairy Category

Manager, Kum & Go Corporate

3 months of data has been reported:

(June – September)

169,041 lbs. of milk (3 months)

676,167 lbs. of milk (annualized)

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Shipt is the nation’s fastest growing online grocery marketplace; working with

leading retailers to delivery groceries via a community of shoppers and a convenient app.

They launched in the summer of 2014. Founded on the mission of ‘simplifying lives’, Shipt

serves members, shoppers, and communities by offering convenience and freedom.

Shipt is now available in more than 5,000 cities with stated goals to increase the number

of retail partners and cities.

Dairy category is featured in ‘Exclusive Savings’ section -

one of the most viewed sections of the website

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Objective – Casey’s objective is to become “your place for milk”.

This initiative is to build awareness with their consumers that milk

supports farm families and is locally produced 365 days / year.

Convenience Store chain headquartered in Ankeny, IA

with over 2,000 stores throughout the Midwest

Convenience Store chain headquartered in Des Moines,

IA with nearly 600 stores in Midwest States South Dakota,

Missouri, Iowa, Nebraska, Oklahoma,

Objective – Increase space for dairy products.

• Consumer insights

• Dairy case study

• Dairy product planogram development

• Dairy coolers

In summary….

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By 2020, this will be 40%

of the population with 2nd

largest spending power

(after Millennials

Dairy Check-off is

committed to

understanding this

consumer and work with

partners to keep dairy

relevant to their lifestyle

Most ethically

diverse

generation

They demand

transparency

in their food /

beverage

production

They support

companies with

social and

environmental

responsibilityNotoriously

overscheduled

Questions?