The diversity of snacking. Insights on key trends and innova4ons

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1 The diversity of snacking Insights on key trends and innova4ons

2 Introduc4on 2

3 3 More foods are considered a snack today

4 4 The snacking landscape is exci4ng

5 Indulgence 5

6 Flavor innova4ons con4nue to deliver excitement Blue Diamond Almonds Krunchies Spicy Bbq Flavour Crispy Coated California Almonds (UK, May 2015) Mr Filberts Mexican Sweet Chilli Mixed Nuts Snacks (United Kingdom, Oct 2014) Anthon Berg Fair Trade Dark Chocolate with Almonds, Honey and Chili (Germany, Aug 2015)

7 Sweet & savory trends on in all segments Nuts Chocolate Popcorn Whitworths Fusion Chilli Nutty Cocoa Chaos Snacks (United Kingdom, Sep 2015) Description: A combination of Chilean flame raisins, creamy cashews, chilli almonds and dark chocolate balls. Claims/Features: Resealable foil pack for extra freshness. Suitable for vegetarians. Limited edition. Tonys Chocolonely Puur Amandel Zeezout: Dark Chocolate with Almonds and Sea Salt (Netherlands, Sep 2015) Description: Creamy Belgian dark chocolate with crunchy pieces almond and sea salt. Comes in an aluminum foil wrapper held in a paper wrapper. Claims/Features: Fairtrade certified. Butterkist Discoveries Salted Caramel Flavored Popcorn (United Kingdom, Aug 2015) Description: Popcorn with a sumptuously smooth caramel perfectly balanced with a hint of salt. Comes in a 80g plastic packet. Claims/Features: 81 calories per 20g serving. Air popped whole grains. Source of fiber.

8 Bite Box launches sweet vs salty snack nuts The German company BiteBox presented its range of snack nut boxes, available in large variety of sophisticated sweet and savory flavors, with different funky names: 8 Coffee To Go: chocolate coated coffee beans & cappuccino flavored almonds Ana s Beeren: dried pineapple and strawberries pieces Waassssup?!: wasabi coated peanuts

9 Emerging flavor trends in savory snacks Mustard Onion & Garlic & herbs Ethnic Zesty

10 Emerging flavors in cereal & energy bars Pumpkin seeds Brownie cake 10 ginger peach

11 Texture receiving more deserved acen4on Flavor and smell seems to be the key determinants for taste in consumers minds. However texture, which is more subtle as it is experienced subconsciously, can have a deciding factor on consumer taste preferences. Texture gives identity to a product and is considered the delivery mechanism for flavor. 11 Source: Theguardian.co.uk, 2014 Source: Telegraph.co.uk, 2014

12 More texture orienta4on in snack categories An increasing number of NPLs is tracked with texture claims for all snacking categories analyzed. 260% 240% 220% 200% 180% 160% 140% 120% 100% Snack NPLs tracked with texture claims (Europe, ) Bars Chocolate Snacks, nuts & seeds 80%

13 Texture claims by market category Texture claim as percentage of snack introductions by market category (Europe, 2014) Total with almonds 25% 20% 17% 18% 17% 20% 15% 10% 8% 6% 5% 0% Nuts & seeds Bars Chocolate 13

14 Almonds add crunch to chocolate Cadbury Dairy Milk Marvellous Creations Cookie Nut Crunch Covered in Delicious Milk Chocolate (United Kingdom, Jun 2014) Nestle Gold Milk Chocolate Bar with Whole Almonds (Spain, May 2014) Rewe Sao Tome Juwel Elegant Milk Chocolate With Crunchy Almonds And Salt (Germany, May 2014) 14

15 Texture claims in snacking introduc4ons Crunchy is the most tracked texture claim on almond introductions in snacking. 8.0% 7.3% Texture claims on almond introductions in snacking (West Europe, ) Snacking introductions Snacking introductions with almond In % of introductions 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 6.1% 6.0% 2.0% 1.6% 1.4% 1.0% 1.0% 0.8% 0.9% 0.8% 0.6% 0.6% 0.3% 0.4% 0.2% 0.3% 0.2% Crunchy Crispy Soft Smooth Chewy Creamy Thin Tender Moist 15

16 Crunchy is the key texture in almond snacking Snacking Essentials Sweet Almonds (United Kingdom, Aug 2014) Gut Bio Knusperriegel Nussmix Mit Honig: Crunchy Nut Bars With Honey (Germany, May 2015) Real Quality Suss & Kross Knusperpralinen: Cornflakes And Almonds in Milk Chocolate (Germany, Feb 2015) 16

17 Convenience

18 On- the- go trends on in snacking categories As the boundaries between snacks blur, Innova Market Insights tracks a proliferation of portable, convenient snack concepts across different categories. 160% 140% 120% 100% Development of global product launches tracked suitable for on-the-go 100% 115% 117% 133% 137% 80% 60% 40% 20% 0%

19 Bars & nuts ideal format for on- the- go Soy Soya Party Graines Se Soja, Toastees, Amandes Et Raisins Secs Bio: Organic Toasted Soy Seeds, Almonds And Dried Raisins (France, Jul 2015) Mother Earth Brekkie On The Go Apricot & Almond with Toasted Muesli Bites (New Zealand, May 2014) Eat Natural Mixed Nut Bar: Coffee & Chocolate with Peanuts and Almonds (UK, Nov 2014) 19

20 20 Convenient snacks to- go or by mail

21 Snacks rise to the occasion 21

22 Marke4ng to 4me of day: from energy to indulgence For each snacking occasions, what are the most important considerations when deciding what to eat? 50% Morning Snack Afternoon Snack Evening Snack Late Night Snack 45% 40% 30% 20% 10% 25% 25% 22% 13% 23% 25% 6% 3% 21% 21% 16% 12% 16% 15% 10% 5% 10% 26% 19% 17% 19% 29% 16% 0% 22

23 Snacks launched for specific moments of day Alpen Mixed Cereal Bars: Fruit And Nut with Milk Chocolate (Greece, Sep 2014) Jordans Breakfast 6 Multigrain Bars With Juicy Fruits & Sliced Almonds (United Kingdom, Sep 2014) Earth Control Breakfast Booster Nuts & Berries (Netherlands, Jul 2014) 23

24 Healthier op4ons 24

25 25 Healthy snacking is becoming more popular

26 High/source of fiber and protein claims growing 5% Health claim as percentage of total snacking introductions (Europe, 2010 vs 2014) % 4.7% 3% 2% 1% 3.3% 1.7% 2.9% 2.5% 2.7% 2.7% 0.9% 2.1% 1.9% 0% High/source of fiber No added sugar Low fat High source of protein No trans fats 26

27 The fiber and protein trend boosts NPD ac4vity in snacks Itsu Pick N Mix Almonds And Superfruits (United Kingdom, Sep 2015) Protein Snacks Protein Bites: High Protein Snack in Peri Peri Chilli Flavor (UK, Feb 2014) Exquise 3 Mega Barres De Cereales Amades, Noisettes, Chocolat: 3 Cereal Bars With Chocolate, Hazelnuts And Almonds (France, Oct 2014) 27

28 Protein has entered snacking categories Protein claims are increasingly tracked in various (snack) categories. The claim is well established in categories like cereal bars and yogurts. 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Market penetration of protein claims for snacking related categories (Global, 2010 versus 2014) 10.3% 19.8% Cereal & Energy Bars 0.0% 3.8% Fruit Pouches 1.0% 2.3% Savory/Salty Snacks 4.9% 5.9% Snack Nuts & Seeds 3.7% Yogurt 11.9% 28

29 Nuts a natural source of protein An increasing number of nut based snacks are tracked with protein related claim 29 Graze Punchy Protein Nuts Chilli And Lime Cashews, Almonds And Lightly Salted Peanuts (UK, Jul 2015) Claims/Features: 8g of natural protein. No artificial colors, flavors or preservatives. The sleeve is biodegradable, 100% recyclable and made with wood from a sustainable forest. Musclefood Natural Almonds (United Kingdom, Apr 2014) Description: Carefully selected nuts bursting with protein and fiber, with no added salt or flavoring and 100% GM free.

30 Protein snacks with almonds The main protein platforms are sports/active lifestyle (muscle building) and weight management (satiety). The latter is increasingly applied in mainstream products. Many protein products mention the protein content in grams front of pack. 30 Layenberger Lowcarb One Protein Cookix Vanille Mandel: Protein Bar with Vanilla and Almond Flavors (Germany, Jun 2015) Claims/Features: Contains high protein and a greatly reduced carbohydrate content More than 34% protein and less than 14% carbohydrates. Due to the high protein content, the LowCarb One Protein CooKix saturate long. Clif Mojo Sweet And Salty Trail Mix Bar: Dark Chocolate Almond Coconut (United States, Mar 2015) Slim Fast Protein Meal Bar: Sweet & Salty Chocolate Almond (United States, Feb 2015)

31 Clean label is here to stay, and so are nuts Nakd Pecan Pie Bar (Netherlands, Apr 2015) Simple Truth Raw Almond (United States, Feb 2015) Raw Health Vibrant Living Organic Zesty Lemon & Chia Balls (United Kingdom, Jan 2014) 31

32 Clean label trends on for other categories as well Clean labels claims (no additives, organic, GMO-free and natural) show stable growth in the snack categories. NPL tracked with a clean label related positioning type (Europe, ) Growth Cereal & Energy Bars Snack Nuts & Seeds Chocolate % % +30.5%

33 Nuts +fruits seems to be a natural match 33 Healthy People Cashews And Fruit Raw Snack (Belgium, Feb 2015) Description: Cashews combined with tasty dried fruits (raisins, cranberries and black currants). Claims/Features: A healthy and delicious snack. Source of minerals. Simply Balanced Organic Seed And Grain Cluster Trail Mix (United States, May 2015) Description: Organic seed and grain cluster trail mix including fruits, seeds and nuts,.. Claims/Features: Certified USDA organic. Non-GMO project verified. Nutisal Sweet And Lightly Salted Tropical Mix (Finland, May 2015) Description: A sweet and salty mix of nuts and dried fruits (peanuts, cashews, papaya, pineapple, raisins, coconut and pistachios).. Claims/Features: Dry roasted nuts. No oil added.

34 Organic claim strengthens almond s naturally healthy image 19% of snacking introductions launched in Europe during with almonds claimed to be organic. 34 Alnatura Nusskern Mischung: Nut Mix (Germany, Nov 2014) Les Accents Du Soleil Bio Amandes Toastees Nature: Organic Toasted Almonds (France, Aug 2015) Secrets D Energie Picorez Des Amandes Grillees Salees Bio: Organic Roasted And Salted Almonds (France, Oct 2014)

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