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Page 1: BETTER BREAKFAST: Incorporating Plant Based Breakfast ...winsight-cdn.s3.us-east-2.amazonaws.com/platform/files/sites/... · back on meat-based products 39% of US Consumers actively

BETTER BREAKFAST:

Incorporating Plant Based

Breakfast Trends Across Dayparts

NRA Sysco Culinary Experience Center

May 20, 2019

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DANONE NORTH AMERICA BRANDS

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TODAY’S FOCUS: PLANT BASED BRANDS IN TRADITIONALLY “BREAKFAST ORIENTED” CATEGORIES THAT CAN CROSS DAYPARTS

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PLANT BASED HAS BECOME MAINSTREAM - PROJECTED TO DELIVER $5B+ WITHIN 3 YEARS

$3.0$3.2

$3.5$3.9

$4.2

$4.7

$5.1

$0

$1

$2

$3

$4

$5

$6

3YA 2YA YA CY Est +1 YR Est +2 YR Est +3 YR

Bill

ion

s

Total Edible Plant Based

9.6% 3YR Growth Rate Projection

46% of US Households purchase

Plant Based across the store today2

1/3rdof the Year over Year growth is coming from New Households2

Source: IRI Scan – Total US MULO, FY 2018 Source 2: IRI Panel – Total US Outlets, FY 2018

75% of Millennials are considering or are

already on a Plant Based Diet3

Source 3: Danone Custom Survey – Shopper’s Round Table/Vision Critical, January 2017. n=774 : Question: Are you considering or already on a plant based diet?

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PLANT BASED FOODS ARE NO LONGER NICHE

60% of Americans are actively cutting back on meat-based products

39% of US Consumers actively incorporating plant based foods into their diet

BILLION $ CATEGORY

Plant-Based Food Sales grew 20% to $3.3B

(vs. June ‘18 YA) compared with total food sales 2%+

Source: Nielsen, Plant Base Proteins Are Gaining Dollar Share among North Americans, 2017

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PLANT BASED IS DRIVING GROWTH ACROSS A VARIETY OF “BREAKFAST ORIENTED” CATEGORIES

Source: Nielsen Scan, XAOC – Full Year 2017

High Growth Plant Based Categories3 year CAGR 2015-2018

Plant based categories are growing much faster than their traditional categories

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AS ALL DAY BREAKFAST GROWS, IT WILL BE CRITICAL TO INCORPORATE MORE PLANT BASED OPTIONS TO ACCOMMODATE EVOLVING CONSUMER NEEDS

All Day Breakfast Menus are Changing Diners’ Behaviors

31%

43%

33%

50%

25%

29%

33%

43%

26%

59%

24%

25%

Midmorning snack

Lunch

Afternoon snack

Dinner

Evening snack

Late-night snack or meal

For which do you enjoy breakfast food?

18-34 35+

Source: 2017 Technomic Breakfast Consumer Trend Report

Nearly ½ of Consumers Enjoy Breakfast At Non-Traditional Times

30%

65%

5%

How has restaurants’ offering breakfast fare beyond morning hours impacted your dining

behavior over the last 2 years?

I'm purchasing breakfast fare outside ofmorning hour less often

No impact

I'm purchasing breakfast fare outside ofmorning hours more often

Younger Consumers Drive Interest in Plant Based Options for Breakfast

I’d like more restaurants to offer Vegetarian/Vegan Dishes for

Breakfast (Agree & Agree Completely)

32%

0%

5%

10%

15%

20%

25%

30%

35%

Younger 18-34 Older 35+

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10.2%

7.6%

3.7% 3.6%2.6%

1.9% 1.8%0.7% 0.7% 0.7% 0.5% 0.5% 0.3% 0.3% 0.0%

MILK IS THE CATEGORY WHERE PLANT BASED HAS MADE THE BIGGEST IMPACT

Plant-Based Alternatives – Dollar Share of Category

Milk MayoCream-

Creamers

Protein

Bars &

Supplmnts

Ice Cream YogurtMeat

Substitutes

Cream

Cheese*

Frozen

Novelties

Salad

DressingsCheese

Frozen

Meals

Sour

CreamRfg Dips

Butter &

Butter

Blends

$1,565.1 $135.7 $139.3 $364.5 $180.9 $135.6 $671.2 $11.9 $31.5 $17.2 $84.5 $177.2 $4.1 $2.2 $0.6

Dollar Sales (MM)

Source: IRI POS, MULO+C, 52 Weeks ending 9-09-18

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ALMOND IS THE KEY DRIVER BEHIND PLANT BASED MILK GROWTH

Plant-Based Milk – Dollar Sales by Type

$ Share

65%

$ Share

12%

$ Share

5%

$ Share

5%

$ Share

3%

Almond Soy Coconut Almond

Blend

Coconut Cashew Almond

Blend

$ (MM) Chg. YA (MM)

$1,018.1 +$115.6

$ (MM) Chg. YA (MM)

$194.8 -$18.1

$ (MM) Chg. YA (MM)

$80.4 -$4.9

$ (MM) Chg. YA (MM)

$74.0 +$2.1

$ (MM) Chg. YA (MM)

$46.5 +$21.8

Source: IRI POS, MULO+C, 52 Weeks ending 9-09-18Source: IRI POS, MULO+C, 52 Weeks ending 9-09-18

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Soy

• Strong point of entry

into the PBB Category

• Good source of

protein, with low sat

fat and no cholesterol

• Heart healthy1

Almond

• Driving PBB growth

• Main point of entry

into PBB

• More calcium than

dairy milk

• Lower calorie

Coconut

• Growth segment

• Driving new buyers

and increased

category purchases

• Exotic flavor variety

• Smoothie, Latte

baking & cooking

usage

Source: 1 As part of a diet low in saturated fat and cholesterol, 25 grams of soy protein per day may reduce the risk of heart disease

EACH PLANT BASED MILK SEGMENT HAS A DISTINCT REASON FOR BEING, AND CONTINUES TO EVOLVE

Emerging Plant Bases

• Hemp

• Macadamia

• Oat

Cashew

• Smooth & Creamy

• Fewer calories than

dairy milk

• 3rd most consumed

nut in retail

Lactose Free, Dairy Free, Gluten Free

Emerging Bases projected to grow almost 15 points

Source: Mintel Dairy and Non-Dairy US, September 2018,

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COFFEE CREAMING BEHAVIOR IS ALSO EVOLVING AS CONSUMER PREFERENCES SHIFT TO MORE PLANT BASED SOLUTIONS

Milk Creamer Plant-Based MilkPlant-Based

Barista Collection

Evolution of Coffee Creaming

Redefining the Plant-Based Creaming Experience

Plant-Based Creamer

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YOGURT IS EXPECTED TO BE THE NEXT MAJOR GROWTH AREA IN PLANT BASED

$142.9M

+57.3% vs. YA

$7.14B-3.4% vs. YA

+.8 Pts

Soure: *IRI Total US – MULO, L52 ending 10/28/18: ^ Almond, Soy and Coconut cume $ share of Total Milk. Source: SPINS & Nielsen 2017; IRI POS Data L52 Wks ending 1.28.18; Panel Data L52W 4/22/18

10.5%PBB $ Share

Of Total Milk (MULO)

PBY $ Share Of Total Yogurt in Natural Channel

17.9%PLANT-BASED IS THE FASTEST GROWING

YOGURT SEGMENT IN RETAIL*

We believe Plant-Based Yogurt will Reach a 10% Share Of Yogurt Category By 2020

Leading measures indicate growth potential:

^

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Today’s “Better Breakfast”

Menu Concepts

1

3

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A mixture of almondmilk and chocolate syrup infused with CO2 in

an ISI canister and served over STōK™ unsweet cold brew coffee.

Features:

STōK™ Unsweet Cold Brew Coffee

Silk® Barista Collection™ Almondmilk

(dispensed through pressurized carbon dioxide)

STŌK COLD BREW MOCHA

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Dairy-free coconutmilk yogurt layered with a grilled pineapple and mango compote and fresh

blueberries. Garnished with candied cashews and toasted

coconut shreds.

Features:

So Delicious® Dairy Free Vanilla Yogurt Alternative

BLUE PARADISE PARFAIT

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Creamy, dairy-free almondmilkblended with strawberries,

blueberries, raspberries, blackberries and Genovese basil leaves. Finished

with a hint of fresh lemon juice.

Features:

Silk® Unsweetened Vanilla Almondmilk

ITALIAN BERRY & BASIL SMOOTHIE

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Savory cornbread made with silky soymilk, shredded carrots,

freshly grated zucchini, chopped sundried tomatoes,

and an herb medley of thyme, parsley, and chives.

Features:

Silk® Original Soymilk

GARDEN CORNBREAD

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THANK YOU!


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