Plant-Based Foods Trends & Insights · US Kroger Live Naturally Signage UK Sainsbury...
Transcript of Plant-Based Foods Trends & Insights · US Kroger Live Naturally Signage UK Sainsbury...
Plant-Based FoodsTrends & Insights
HAIN-CELESTIAL CANADA
June 2019
Credentials
• Pioneer in Plant-Based foods – Yves Veggie Cuisine founded in 1985, Acquired by Hain in 2001
• #1 Brand in the Canadian Meat Alternative market• Highest Brand awareness in the Canadian Meat Alternative market • Highest household penetration for a Meat Free brand in Canada• Voted by consumers as the Most Trusted Vegan Brand in Canada past 2 years• Linda McCartney #2 Meat Free Brand in UK• Dream Brand globally in Non Dairy Beverage
Source: Nielsen MarketTrack National GB+DR+MM, L52W Dec 08th, 2018
Definition Of Plant-Based Foods
• Plant-Based Foods are defined as plant based alternatives to animal products – meat and seafood alternatives, ingredient alternatives, egg substitutes and dairy alternatives
• It does not include products that are inherently plant based such as single ingredient vegetables, nuts etc.
Plant-Based Alternatives Are Expanding Rapidly
Grew +20% in 2018 overall in the US Grew +11 in 2018 overall in Canada
Category Dollars GrowthMeat Alternative $92M +27%Tofu $42M +14%Non-Dairy Cheese $12M +14%Non-Dairy Beverages $266M +5%
GRAND TOTAL $412M +11%
Canada Index to US using 10:1 rule• Total Plant-Based Category 124 index• Plant-Based Milk 162 index• Plant-Based Meat 137 index• Plant-Based Cheese 100 index
Source Nielsen 52 weeks end 12/08/18
Source: Nielsen 52 Weeks End 06/2018, PBFA Commissioned dataSPINS 52 Weeks End 07/15/2018; Projected using Plant Based Growth 2014-2017
➢ In Canada, Refrigerated Meat Alternatives are more highly developed.
$59.6
$31.6
Canada Meat Alternatives, $M
Refrigerated Frozen
£382.0
£244.0
UK, Meat Alternatives, £M
Refrigerated Frozen
$200.0
$600.0
US Meat Alternatives, $M
Refrigerated Frozen
Source: Nielsen MarketTrack, N`ational GB+DR+MM, 52 weeks ending Dec 08th, 2018Kantar WPO, 30.12.18
Meat Alternatives Formats
Meat Alternative category has acceleratedgrowth and consumer interest
$51.9 $52.5$57.6
$66.2
$76.0
$96.7
$0
$20
$40
$60
$80
$100
$120
2014 2015 2016 2017 2018 2019 L52W
Consumption $M
+27%
+15%+15%
+10%
Source: Nielsen - Canada
The Movement Has Staying Power
Over Half Of Canadians Are Willing To Reduce Meat Consumption
12%
12%
24%
39%
12%
Not at allwilling
Somewhatunwilling
Neitherwilling norunwilling
Somewhatwilling
Extremelywilling
6%
2%
10%
Have a Vegetarian lifestyle
Have a Vegan lifestyle
Have a Flexitarian lifestyle
How willing would you be to consider reducing your meat consumption sometime in the future?
The Rise Of The Flexitarian
Canada’s 2019 Food Guide overhaul will continue to create interest in plant-based foods
51%
Source: Dalhousie University Protein Wars 2018 study
Household penetration has grown but stillBehind UK, the leading market
Total Panel
03/05/17 -03/03/18
03/04/18 -03/02/19
TL MEAT ALTERNATIVES
% Eq Volume
Penetration 12.0 14.1Trips per Buyer 5.3 5.4Average Elapsed Days
29 28
Source: The Nielsen Company, Homescan , National,52 Weeks ending March 2, 2019 vs YA
Total MA
Fresh MA
Frozen MA
14.1 10.4 7.8
73.1 60.7 46.2
5.3 12.6
The Meat Alternative Consumer
Meat Alternative users span a range of consumers
Vegans:a diet abstaining from the use of any animal
products
Vegetarian:a diet abstaining from
the consumption of meat and fish
Pescatarian:a diet abstaining from
the consumption of meat
Flexitarian:a diet that is largely
plant-based with the occasional inclusion of
meat (or fish)
Meat Reducer:
a diet which is actively seeking to reduce meat
consumption
Meat Eater:a diet which includes
meat and fish
These groups are not linear but fluid: consumers will move between them.
Groups contain consumers from all demographics and drivers: health, ethics – environment, ethics – animals, taste / love of vegetarian food.
The Primary ConsumersAre Younger, Multicultural & Urban
Source: Nielsen Panelviews survey, March 2017 - Canada
Overindexed to Asians, Under 35 & UrbanWho is consuming Meat Alternatives?
50%
Under 35
50%
Chinese
71%
South Asian
50%
Toronto
48%
B.C.
Place Logo Here
➢ Key factors for following a plant based diet are driven by health, nutrition, economics & environmental concerns
Source: Nielsen Panelviews Survey, March 2017 (Canada)
Health, Nutrition & EnvironmentalConcerns Are Key Motivators
A closer look at Health drivers
Associated Benefits:
• Weight loss
• Lower risk of type 2 diabetes
• Lower blood pressure
• Lower risk of heart disease
• Lower cholesterol
• Improved vision
• Healthier skin
• Longer life
Source: US News – 7 Reasons to Choose a Plant Based Diet; JAMA Eating More Plant Protein Associated with Lower Risk of Death 2016
A closer look at Sustainability drivers
Associated Benefits:
• Fewer greenhouse gas emissions
• Less freshwater consumption
• Fraction of the land required for animal production
Source: World Resources Institute April 2016
Plant-BasedProduct Comparisons
There are a variety of reasons to chooseMeat Alternatives. Protein is key motivator.
Not All Protein Is Created Equal
Your body needs 9 essential amino acids
“COMPLETE” PROTEIN SOURCES
Protein Quality Score
Eggs 1.0
Milk 1.0
Soy 0.99
Beef 0.92
“INCOMPLETE” PROTEIN SOURCES
Protein Quality Score
Chickpea 0.71
Pea 0.68
Wheat 0.40
Almonds 0.39
INCLUDESall essential amino acids
MISSING essential amino
acids
Q
U
A
L
I
T
Y
Comparison of Meat to Meat Alternatives in Retail
Nutrition(scaled to 100 g)
Beef Burger*Beyond
MeatYves Good
Burger
Calories 259 240 132
Fat 22 17.7 2.9
Saturated Fat 9 4.4 0.3
Cholesterol 62 0 0
Carb 0 4.4 9.6
Fiber 0 2.6 3.4
Sodium 332 336 425
Protein 15 17.7 17
*PC Thick and Juicy Beef Burger
Comparison of Meat Alternatives in Food Service
Nutrition(both 230 g items)
A&W Teen
Burger
A&W Beyond Burger
Calories 500 500
Fat 26 29
Saturated Fat 11 5
Sodium 910 1110
Protein 25 22
Nutrition Impossible Burger Yves Kale & Root Vegetable Patties
Ingredients
Water, Soy Protein Concentrate, Coconut Oil, Sunflower Oil, Natural Flavors, 2% or less of: Potato Protein, Methylcellulose, Yeast Extract, Cultured Dextrose, Food Starch Modified, Soy Leghemoglobin, Salt, Soy Protein Isolate, Mixed Tocopherols (Vitamin E), Zinc Gluconate, Thiamine Hydrochloride (Vitamin B1), Sodium Ascorbate (Vitamin C), Niacin, Pyridoxine Hydrochloride (Vitamin B6), Riboflavin (Vitamin B2), Vitamin B12.
Kale, onions, brown rice, canola oil, carrots, potatoes, chickpea flour, flaxseed, salt, sprouted grain blend (buckwheat, millet, quinoa and chia), spices, natural flavour, yeast extract.
Consumers are looking for simpler ingredient lists
Beyond Meat Beefy Crumbles
Lean Ground Beef
Yves Original Ground Round
Cost (CDN) $7.37-$8.71 $7.00 $3.99
Weight 284 g 500 g340 g = 1 lb (454 g) raw
beef equiv.
Cost/100 g $2.60-$3.06 $1.40 $0.88
Consumers will do cost comparisons
Beyond Meat Burgers
Beef Burger*Yves Good
Burger
Cost (CDN) $7.49-$7.99 $12.99 $5.29
Weight 226 g (2 patties) 720 g (6 patties) 300 g (4 patties)
Cost/100 g $3.31-$3.54 $1.80 $1.76
Schneider's Country Naturals Beef Burger @ LCLPricing based on retail audit at Sobey’s May 1, 2019
Plant-Based ProteinMerchandising
The value of the Meat Alternative buyer
Source: SPINS 52 WE 12-31-17 Total US – All Outlets – Plant Based Total Basket Size – In Basket Dollars per Trip;SPINS Plant Based Growth Story July 2018
The Meat Alternatives buyer is an important consumer as they bring in more dollars than the Average Shopper
Top items most frequently found in baskets
containing Yves Meat Alternatives:
1. Fresh Produce
2. Legumes
3. Other Meat & Dairy Alternatives
4. Vegetable Broth
5. Vegan Margarine
Where should the refrigerated Meat Alternativecategory be located?
Vegans and Vegetarians are the Heavy Users and drivers for category volume
LIGHT USERSMEDIUM
USERSHEAVY USERS
03/04/18 -03/02/19
03/04/18 -03/02/19
03/04/18 -03/02/19
TL MEAT ALTERNATIVES
% Eq Volume 4.9 21.3 73.7Trips per Buyer 1.2 3.3 18.0Average Elapsed Days
84 56 19
Source: The Nielsen Company, Homescan , National,52 Weeks ending March 2, 2019 vs YA
COREFlexitarian OPPORTUNITY
Place Logo Here Help Flexitarians find the Meat Alternatives
UK Meat Free Merchandising and Signage
Opportunity to test Dual Placement at shelf or in Flyers
Sobey’s
Plant-Based Destinations Maximize Engagement
✓ In the US & UK, sets contain plant-based Meat & Dairy Alternatives, Tofu and Spreads✓ Dedicated sections create a sizeable footprint easier to locate in store✓ Navigation call-outs & signage generate awareness & excitement
➢ US Kroger Live Naturally Signage ➢ UK Sainsbury “Veganuary” End Cap
Global Merchandising Strategies
MISSION: To support the regulatory and market interests of food companies in Canada that make plant-based foods.
To provide education for key government, industry partners and consumers on this growing sector.
To work in collaboration with government and industry on a modernized regulatory environment that promotes innovation and growth within plant-based foods.
To manage the narrative about plant-based foods.
GOALS:
PBFC 2019
PBFC Members
The diversity of our membership is crucial for the modernization of the industry’sregulatory environment. Plant-Based Foods of Canada (PBFC) is made up of companiesengaged in creating the brightest future for plant-based foods.