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Consumer attitudes about sugar and sweetenersPresented byLynn DornblaserDirector, Innovation & InsightMintel Ltd.

Agenda

Consumer attitudes and preferences

What’s on the market that

delivers on those preferences

A few final thoughts

3

Context: “Health & Wellness” focuses on “wellness”

• Brands are shifting mission statements and changing marketing strategies to emphasize wellness.

• Among consumers, the wellness conversation surged in 2017, reaching 21.7 million online mentions, a 32% increase in mentions of wellness over the past 10 years.

• Brands will need to stand out in a sea of “wellness” branding and marketing.

Methodology: Universe Count references the total estimated impact of your query. This is done by analyzing source distribution for content over time, then referencing internally computed metrics for percent of volume scaled across those source types against the web at large, and finally scaling the query results accordingly.Note: the universe number is scaled across blogs, forums, twitter, etc with specific weights given to each source. For example, we know that we collect a random 10% of everything that happens on Twitter. Therefore, Social Universe is used to scale to a more accurate volume count across the entire channel.Base: 85 million mentions of wellnessSOURCE: INFEGY/MINTEL

UNIVERSE COUNT FOR MENTIONS OF “WELLNESS”, DECEMBER 2007-17

4

Wellness is a journey and brands should join the ride

• Very few adults are not focused on their health, a positive sign for the health and wellness market.

• Wellness is a journey for many adults, another sign of growth potential for the health and wellness market.

• Brands that help consumers manage their wellbeing over time by partnering with them for the long run are likely to resonate with adults who see the bigger picture of wellness.

Base: 2,000 internet users aged 18+Source: Lightspeed/Mintel

SELECT WELLBEING SELF-PERCEPTIONS, OCTOBER 2017

5

Living Intentions Activated Blueberry Blast Superfood

Cereal

Rebbl Turmeric Golden Milk Super Herb Powered

Coconut Milk Elixir

Aldi’s Elevation by Millville Peppermint Stick Wellness

Bar

“Supports the body’s overall

wellness”

“Supports digestive wellness”

Balanced nutrition from a value brand

“Wellness” increasingly appears in on-pack statements in US

6

The good and bad about eating healthy

Source: Mintel

33

48

55

77

81

Most healthy foods lack flavor

Eating healthy is too expensive

The fewer ingredients a food has,the healthier it is

I pay attention to the ingredients onfood labels

A home-cooked meal is healthierthan one from a restaurant

Consumer statements about eating healthy, US, % agree

7

“Healthy” today is about naturalness and “no bad stuff”

Source: Mintel

63 60

47 4640 39 36

2818

8 8 5 57 5 6 5 4 5 3 4 5

35

2415

53

What consumers identify as healthy and unhealthy food, US, % agree

Healthy food Unhealthy food

8

Square Organics Sea Salt Protein Popcorn

Contains twice the protein as plain old popcorn providing 10g.

Air popped, non-GMO, US-grown kernels with mixture of

spices, brown rice protein, and coconut oil known for its MCTs.

barkTHINS Dark Snacking Chocolate with Peanut and

Sea Salt

Thin slivers of snackable dark chocolate packed with amazingly simple and real ingredients. Uses

Fair Trade certified ingredients and is free from GMOs.

Popcorn with protein and MCTs Small indulgences

Therefore, accentuate the positive, eliminate the negative

9

12%

15%

28%

28%

28%

39%

39%

41%

45%

51%

67%

Gluten free

Plant-based

Non-GMO

Organic

Hormone free

Protein content

Low/no fat

Low/no salt

all natural

Low/no sugar

Fresh

Important factors when choosing healthy food and beverage, US

Sugar an important consideration when choosing healthy food

Source: Mintel

10

And tops the list for those trying to lose weight—more than fat

About half of consumers who are trying to lose weight say they look for low sugar or no added sugar claims on products, higher than any other claim, including fat.

Source: Mintel

53 4944 42 41 38

30

41 40

Important ingredient claims among consumers trying to lose weight, US

11 Source: Mintel

Low/no/reduced sugar claims grow in all regions

4 4 4

6

55

4 4

6

4

5

4

5

9

4

6

4

5

8

55 5 5

9

6

0

2

4

6

8

10

North America APAC Middle East andAfrica

Latin America Europe

% p

enet

ratio

n

Global: penetration of low/no/reduced sugar claims in food and drink product launches, by region, 2013 to 2017

20132014201520162017

12 Source: Mintel GNPD

Low/no/reduced sugar claim more prevalent than calories

4.39% 4.62%5.21%

5.51% 5.31%

6.83%

3.88% 3.92%3.41% 3.45%

2.92%3.44%

2013 2014 2015 2016 2017 2018

Claim incidence, low sugar and low calorie, North America, 2013-July 2018

Low/No/Reduced Sugar Low/No/Reduced Calorie

13

Oasis Zero Tropical FlavouredFruit Drink with No Added

Sugar, France

Nakd. Strawberries & Cream Fruit & Nut Nibbles, South

Africa

Nix and Kix Cucumber & Mint Lightly Sparkling Soft Drink

with a Little Cayenne, Germany

Sweetened with fruit juice

Dates and raisins provide sweetness

No added sugar, sweetness from fruit

juice

No added sugar claims: Sweetness delivered in many ways

14

Use of natural non-nutritive sweeteners has increased about 1% from 2013 to 2018, while use of artificial non-nutritive sweeteners has declined by almost 1.5%, indicating companies response to consumers’ desire for more “naturalness” in products.

Source: Mintel GNPD

Non-nutritive sweeteners flat, but growth in natural varieties

7.65%6.80% 6.97% 7.03%

6.20% 6.55%

4.46%3.74% 3.71% 3.63%

2.89% 3.07%

1.85% 1.80% 2.11% 2.20% 2.38% 2.61%

2013 2014 2015 2016 2017 2018

Sweetener incidence on North American food & drink introductions, 2013-July 2018, by type

Sweeteners (all) Artificial Non-nutritive Sweeteners Natural Non-nutritive Sweeteners

15 Source: Mintel

6.1%

6.6%

6.7%

7.3%

18.5%

20.0%

22.7%

24.1%

26.6%

28.5%

33.0%

64.4%

High fructose corn syrup

Aspartame

Saccharin

Sucralose

Monk fruit

White granulated sugar

Coconut sugar

Maple syrup

Agave

Stevia

Raw cane sugar

Honey

Sweeteners considered healthiest

Consumers consider natural sweeteners to be healthier

16

Bec Cola Organic Cola Flavoured Carbonated Drink

with Maple Syrup, France

Mondelez’s Royal AntiOxAntioxidant Strawberry

Flavoured Jelly with Stevia, Spain

Justine's Choc Chip FlavouredProtein Cookie, Spain

Maple syrup Stevia Maltitol

Various sweeteners appear across categories

17

30%33%

28%31%

34%

CSDs with "sugar"and honey assweeteners

CSDs with ONLYsugars and

carbohydratesweeteners

CSDs with ONLYnatural sweeteners

CSDs with ONLYartificial sweeteners

All CSDs

Purchase intent, CSDs of various types

The fast answer: It doesn’t have a big impact. A closer look at CSDs: Attributes that influence purchase are taste, value, brand. Health is secondary.

Source: Mintel Purchase Intelligence * Indicates statistical significance when compared ot the primary group

But how much does the sweetener influence purchase?

** *

18

Coca-Cola’s Fanta Orange Soda

Purchase intent: 58%

Source: Mintel Purchase Intelligence

PepsiCo’s Mountain Dew Soda

Purchase intent: 60%

DPSG’s Bai Bubbles Gimbi Pink Grapefruit Sparkling Antioxidant

InfusionPurchase intent: 46%

DPSG’s Canada Dry Diet Ginger Ale

Purchase intent: 50%

Sugar or honey:“Mexican” Fanta, made

with only sugar

Any type of carbohydrate sweetener:

HFCS as second ingredient

Natural sweeteners:Contains stevia and 1g

sugar from fruit juice

Artificial sweeteners: Aspartame and AceK,

plus natural flavors

A closer look at those CSDs with highest purchase intent

19

There is a disconnect between what you know and what consumers believe. You have a responsibility to teach them.

Consumer confusion

There’s room for products formulated with many types of sweetener ingredients. There should not be any “bad guys” here.

Choice for all

Health, naturalness, convenience and even price take a backseat to taste. Promote sugar’s contribution to DELICIOUSNESS.

Taste rules

A few final thoughts

mintel.com

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THE WORLD’S LEADINGMARKET INTELLIGENCE AGENCYOur expert analysis of the highest quality data and market research will help you grow your business.

Lynn DornblaserDirector, Innovation & Insight312 450 6117lynnd@mintel.com@LynnMintel

Thank you