Consumer Behaviors

Marketing to the savvy supermarket shopper

Changes in Breakfast Foods

• In the past 10 years, more consumers are visiting fast food restaurants for breakfast and eating more in their cars

• How many of the top 10 foods/beverages consumed for breakfast in 2001 are different in 2011?

– 5 or more ─ 3 to 4

– 1 to 2 ─ None

Source: The NPD Group’s National Eating Trends® database

Nothing Has Been Replaced!

1. Coffee2. Cold Cereal3. Juice4. Milk5. Fruit 6. Bread7. Eggs8. Hot Cereal9. Tea10.Bacon

1. Coffee2. Cold Cereal3. Juice4. Milk5. Bread 6. Fruit 7. Eggs8. Hot Cereal9. Tea10.Bacon

2000/2001 2010/2011

Source: The NPD Group’s National Eating Trends® database

Only change in 10 years is the order of fruit and bread!

Looking More Into Coffee…

• #1 on the list of foods/beverages consumed for breakfast

• The share of restaurant coffee orders continues to rise as Starbuck’s rebounds and McDonald’s and others increase focus on coffee items

• In what year was per capita coffee consumption the highest in the US?– 1946 ─ 1978– 1999 ─ 2011

Source: The NPD Group’s National Eating Trends® database

1946 is the Peak!

0

5

10

15

20

25

30

35

40

45

50 Per Capita Coffee Consumption in the US(Gallons)

1946!

Source: The NPD Group’s National Eating Trends® database, USDA, ERS

What is the Food of the Decade?

• Yogurt, hummus, and sushi have been called the food of the decade by different organizations based on increased consumption

• Which of the three do you consider to be the food of the decade?

– Yogurt: consumption up 80% since 2000

– Hummus: consumption up 1900% since 2000

– Sushi: consumption up 2000% since 2000

Source: The NPD Group’s National Eating Trends® database

Hint, Hint

Yogurt has made a place in consumers’ lives

17.5 16.9 17.819.8 20.3 21.3

23.3

26.228.3 28.4 29.4

31.5

0 0.1 0.5 0.5 0.4 0.8 0.5 1.2 2.1 1.9 1.9 1.9

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Percent of Individuals Consumingat least once in two-weeks

Source: The NPD Group's National Eating Trends® In-Home/Away-From-Home database; Years ending Feb.

Yogurt

Hummus

Sushi

Continued Recessionary Economy

• Rising gas & commodity prices

• Slow job growth

• Weak consumer confidence

• YTD* 2011 retail sales +0.1%

• Which of the following retailers has experienced the largest increase in same store sales this year?

– Wal-Mart ─ Nordstrom’s

– Kohl’s ─ Whole Foods

Source: Nielsen*24 weeks ending June 11, 2011

Total U.S. Food/Drug/Mass (incl. Walmart)

Despite Economy, Luxury is Winning!

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2011

% Change in Same-Store-Sales

Source: Nielsen Trends That Matter Presentation using company press releases; latest monthly or

quarterly news releases

Consumers Treat Themselves to Relieve Stress

• Consumers are growing tired of penny pinching

• Purchasing an inexpensive treat, like a cupcake, provides a quality break in a stressful day

• Purchasing luxury items such as designer clothes or shoes on occasion become a reward and make shopping enjoyable again

Sources: 2010 Medill Reports - Chicago, Northwestern University, Ellen Gibson – Associate

Press

Analyzing Savvy Shopper Behaviors Appropriately

1. Percents can be very misleading, look at all of data to understand the trends

2. Taste and habits drive eating behavior and do not change quickly. Cost and convenience influence food choices

3. ……?

Source: The NPD Group’s National Eating Trends® database