MAKING CENTER OF STORE STICK - How America Eats Sally Lyons Wyatt - IRI
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How America Eats MAKING CENTER OF STORE STICK Sally Lyons Wyatt July 22, 2021
today’s discussion
Turning the Corner Center Store Trend Opportunities Actions for
on COVID-19 Dynamics that Will Help Center Continued Center
of Store Stick Store Growth
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 2
turning the corner on COVID-19 © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 3
Vaccinations and the Initial U.S. Consumer Mobility vs. Food & Beverage At-Home Volume
End to Mask Mandates % change from pre-COVID-19 (Jan. to mid-Feb. 2020) base
has Significantly Increased 4 week rolling average – estimated total omnichannel
Mobility
In-Home Food
& Beverage is
Expected to
Decline as Out-
of-Home Pre-
Pandemic
Behaviors
Resume,
However the
Delta Variant
Could Delay
Additional
Mobility
Demand for Categories Will Continue to be Idiosyncratic
Omnichannel – MULO + C + E-Commerce – Overlap
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 4
46% of Consumers Will Work From
Home at Some Point During the Week,
While 54% Work Away from Home
Likely to Work From Home in Next Month
Rarely / Never
Work from Home
54%
1 day 3%
2 days 4%
3 days 5%
4 days 4%
5 days or more 30%
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 5
Consumers Are Still Cooking
More from Scratch vs.
Pre-COVID-19, Although Not
as Much as a Year Ago
40%
61%
70%
38%
24%
19%
22% 16%
11%
% of Meals for % of Meals for % of Meals for
All HH Members All HH Members All HH Members
Prepared at Prepared at Prepared at
of consumers are creating of consumers will bake treats Home Before Home Year Ago Home Currently
more meals from scratch more often at home vs. COVID-19 (June ‘20)
vs. the last few months during the last few months 81-100% 51-80% 50% or Less
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 6
Plans After the Vaccine Has Been Widely Distributed
vs. What You Have Been Doing the Past Few Months
Go to a
coffee shop 15% 73% 13%
Dine at
restaurants 18% 61% 22%
Almost One-
Will Do Less Often About the Same Will Do More Often
Quarter Dining
Out at
Restaurants
More Often
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 7
There are Shifts in Attitudes About Shopping Online Versus In-store
will do less grocery
shopping at stores
will shop less online
with curbside pickup
will shop less online
with grocery delivery
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 8
Time Spent Grocery Shopping In Store is Back to Pre-COVID-19 Levels
for the Majority of Shoppers, Which Will Help Drive Impulse
of shoppers spent about
the same amount of time
shopping as they did
before the pandemic
of shoppers browsed the
aisles looking at options
vs. 14% a year ago
of shoppers were relaxed
on their last grocery
shopping trip
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 9
center store dynamics © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 10
When We Talked to Consumers in June, We Confirmed the Variety
Almost Half of Ways They Are Getting Meals
of Consumers
Have Dined
Inside at a
Restaurant 46% Indoor Dining 50% Take Out
in the Recent
Period
17% Outdoor Dining 20% Home Delivery
19% Have Not Gotten Food from a Restaurant in the Past Few Weeks
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8
Restaurant usage in the past few weeks
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 11In On-Premise Restaurants, We See Category Sales Returning to
Pre-COVID-19 Splits, Which will Impact the Amount of Food and
Alcoholic Beverages Consumers Drink at Home
January 2020 April 2020 May 2021
Pre-COVID-19 Lockdown Reopening
5.13%
10.26%
19.91% 19.46% 15.90% 16.61%
10.26%
12.82%
23.32% 23.32%
19.91% 20.36%
61.54%
20.36% 20.85%
Beer Food Non-Alcoholic Beverages Spirits / Cocktails Wine
Source: IRI On-Premise Daily Data, Casual and Upscale/Fine Dining
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 12As On-Premise Restaurant Sales Recover, Food Sales in Grocery
Stores Shift, But Are Still Elevated vs. Pre-COVID-19
On and Off Premise Comparison
$16,000.00 $70,000
$14,000.00 $60,000
$12,000.00
$50,000
$10,000.00
$40,000
$8,000.00
$30,000
$6,000.00
$20,000
$4,000.00
$2,000.00 $10,000
$0.00 $0
Grocery Stores Restaurants
Source: IRI Grocery Channel, Dollars per $M ACV; IRI On-Premise Daily Data, Dollars per Benchmark Venue Selling; Weekly Data
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 13Vaccinations Have Been the Trigger for
Increased Mobility and Out-of-Home Eating
Total Center Store F&B / Dollar % Change vs. YA
ME 0.7%
-2.6%
MN VT -0.5% ID
MA -3.7%
3.7% WY
RI -2.9% 1.3%
NJ -6.8%
CT -4.8% WV 1.5%
MD -3.5%
NM 1.9%
0.6% AR
MS AL SC 0.6%
2.1% -0.7%
LA 0.5%
Top states with the HIGHEST rates of fully States with the LOWEST rates of fully
VACCINATED adults, as of May 23, have VACCINATED adults, as of May 23, are still
seen a DECLINE across Center Store F&B seeing INCREASES across Center Store F&B
Source: IRI TSV_MULO+C_YTD 2021 data ending 05-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 14In 2020, All Center Store Departments Saw Dollar Growth;
Some Saw Different Rankings Online vs. Brick & Mortar
TOTAL DEPARTMENT
Total
TOTAL Center Store General
Refrigerated Beverages Frozen
STORE CoS TL Food
15.0% 15.3% 14.5% 15.9% 11.2% 23.7%
63.3% 78.8% 86.1% 88.4% 66.0% 81.2%
Source: IRI POS - 52 Weeks Ending 12/27/20 vs. YAGO
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 15Center Store Food Departments Are Struggling
YTD 2021 When Compared to Year Ago, However…
TOTAL DEPARTMENT
Total
TOTAL Center Store General
Refrigerated Beverages Frozen
STORE CoS TL Food
1.7% 0.8% -2.8% -0.4% 9.5% -1.2%
24.2% 31.3% 28.7% 42.9% 35.6% 25.1%
Source: IRI POS - YTD Data Ending 05-16-21 vs. YAGO
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 16…All Center Store Departments Are Realizing
Double-Digit Growth vs. 2019, Indicating Cooking
at Home is Still Occurring Above Pre-Pandemic Rates
TOTAL DEPARTMENT
Total
TOTAL Center Store General
Refrigerated Beverages Frozen
STORE CoS TL Food
18.4% 17.9% 14.5% 17.3% 19.7% 24.6%
99.3% 126.9% 135.0% 149.4% 112.7% 126.4%
Source: IRI POS - YTD Data Ending 05-16-21 vs. YAGO
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 17Winning Occasions Year-to-Date Include Snacking, Beverages, Kids,
Baby and Late Night, However All Occasions Are Still Elevated vs. 2019
$ % Change
vs. YA Baking Dinner Breakfast Core Snacking
$ % Change
vs. 2YA
-10.3% 18.7% -3.1% 12.9% -1.5% 15.1% 2.3% 9.5%
Beverages Kids Lunch Baby Late Night
7.8% 15.4% 6.3% 12.6% -3.2% 11.7% 1.2% 2.6% 0.4% 12.8%
Source: IRI POS MULO+C - YTD Data Ending 05-16-21 vs. YAGO & 2YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 18Top Selling Categories Have Mixed YTD Results, But Familiar
Themes Are Back: Convenience, On-the-Go, Energy, Hydration, etc.
$ % Change
Carbonated
vs. YA Salty Snacks Bottled Water Chocolate Candy Energy Drinks
Beverages
$ % Change
vs. 2YA
6.7% 15.1% 2.5% 13.1% 8.6% 15.6% 6.5% 9.4% 17.5% 20.7%
Frozen Dinners / Non-Chocolate
Coffee Cookies Cold Cereal
Entrees Candy
1.1% 13.7% -2.9% 7.9% -2.0% 7.4% -12.4% 0.5% 11.1% 12.0%
Source: IRI POS MULO+C - YTD Data Ending 05-16-21 vs. YAGO & 2YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 19In Addition, Center Store Products That Cater to $%
change
$%
change
At-Home Social Occasions are Still Going Strong vs. YA vs. 2YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 20Notable Top Growth Categories Are Demonstrating “Best-in-Class
Growth” With More Households, More Trips and More Dollars Spent
Rice / Refrigerated Liquid
Cheesecakes Popcorn Cakes Side Dishes Drink Enhancers
Energy Refrigerated Dried Sports
Drinks Seafood Meat Snacks Drinks
Source: IRI POS & Consumer Network - YTD Data Ending 05-16-21 vs. YAGO
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 21COVID-19 Restored
Preference for
Center Store National % Change vs. YA
Brands, Which Are
Slightly Outpacing
Private Label
National Private
Brands Label
Source: IRI TSV - YTD Data Ending 05-16-21 vs. YAGO & 2YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 22trend
opportunities
that will
help center
of store stick
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 23Actioning for
These Trends
Will Assist in
Increasing
Center Store In-Store & Holistic Health Location,
Sales Online Duo
Shopper DNA
with a Twist
Location, Location,
Work & School
Throughout
the Year
Treating Pets
Price & Winning with
for Health & Innovation
Premiumization Sustainability
Happiness
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 24IN-STORE & ONLINE DUO
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 25Convenience, Club and Online Channels YTD vs. YA
Are Outpacing the Rest YTD 2021 YTD vs. 2YA
Grocery Mass Drug Dollar
-6% +14% -4% +4% -4% -5% -6% +17%
Convenience Club Military Online
+12% +8% +4% +23% -13% -13% +31% +127%
Source: IRI TSV & Consumer Network – YTD 2021 ending May 16, 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 26Center Store Online Trends Have Slowed vs. Year Ago, Therefore it Is Critical
to Have Tactics to Drive Shoppers to Both In-Store and Online Offerings
100% Dollar % Change
77.5% In Store Online
80%
59.3% 57.7%
57.2%
60%
40%
26.3% 25.2%
13.4%
20% 10.4% 10.8%
4.8% 6.7% -0.1%
-1.4% -1.5% -2.5% 0.5%
0%
4.9% -1.3% 1.2% -4.5% -1.8%
-1.4% -3.1% -4.0% -6.5%
-31.2% -10.0%
-20% -29.9%
-40%
Source: $ % Change - IRI TSV & eMarket Insights COS
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 27Some Consumers are
Coming Back in the
Stores with Intentions
of Reducing Online
Purchasing
Sally Lyons Wyatt
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 28While Some
Consumers Shop Both
Online & In-Store
Sally Lyons Wyatt
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 29Retailers and CPGs Must Establish Strong Digital Touch Points The consumer
to Attract, Engage and Retain Shoppers Since the Shopper path to
Journey is More Intricate purchase is
shifting toward
digital
Store Aisle Specialty
Store
discovery and
IN-STORE
Product
Traditional
Word of
Packaging Examined Self checkout purchase vs.
Media Product Grocery
Mouth Coupons
Club Retailer
Store In-store
employee In-store in-store as
App return
Store
Employee Mass checkout in consumers
Store Ad Retailer C-store store Rewards
Program prioritize lower
AWARENESS /
CONSIDERATION PURCHASE SERVICE
POST-PURCHASE prices, faster
DISCOVERY LOYALTY
purchasing,
Product 3rd party App Recommendations
Brand Direct-to-
Retailer Online
chat Reviews Online
Online
Member easy access
Website Marketplace Saved FAQ Page Rewards
DIGITAL
consumer Site Social Media Posts e.g. Etsy Home Shipment History
Survey
customer
e.g Amazon Delivery
Web
Search
Tracking Loyalty
Online
Review
Follow,
Like
service and
Delivery Mobile App Program
Social Media
Targeted Ads Click &
Site
Text better loyalty
Messages Social Media
Influencer review / Tik
Collect
Retailer site e.g Walmart Pickup from Shopper Post Online rewards.
e.g Shipt Return
Tok Videos
Source: IRI analysis.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 30Continue to Find
Ways to Make
Shopping Easier In-
Store to Keep Them
Coming Back
Sally Lyons Wyatt
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 31Shoppers are Back to Shopping Multiple
Outlets and Now in Multiple Ways; So,
Omnichannel Strategies Need to Align
Offer different selections online
vs. in-store, when possible
Invest in personalized meal solutions and
bundled offers, not just category focus
Optimize digital content on product pages
to drive shopper conversion
Offer a variety of ways to get what they
need: pickup, delivery, on-demand
Leverage purchased-based shopper targeting
via paid search (e.g., sponsored results, product display ads),
retail media networks, & delivery / retailer apps
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 32SHOPPER DNA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 33Looking at Income Levels, There Are Different Tactics Needed Throughout Their
Journey To Retain and/or Gain Back These Shoppers
Low Income Middle & Upper Class
YTD vs. YA YTD vs. 2YA YTD vs. YA YTD vs. 2YA
Dollars
Trips
Communicate a message Middle and upper income appear to be
to help them stretch their dollars more shifting their grocery consumption
given higher energy prices. Find from in-home to away from home.
a balance in your portfolio of Messaging in-home entertainment
an attractive entry price point with a ideas may help thwart the looming losses
value size assortment to restaurant and vacation trips.
Source: IRI Consumer Network – YTD 2021 ending May 16, 2021 vs. YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 34Engaging Across Generations Provides Additional Ideas for Assortment,
Merchandising, Innovation and Communication
Millennials
YTD vs. YA YTD vs. 2YA
Dollars
Trips
Find ways to engage the multiple
Millennial segments.
Innovation will be key to continue this
trend, as sustainability and cleaner
ingredients, along with emerging flavor
trends will keep this somewhat
historically fickle group engaged with
COS brands
Source: IRI Consumer Network – YTD 2021 ending May 16, 2021 vs. YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 35Online Sales Are Steadily Growing for Millennials, So Communications
Must Provide Not Only Online Incentives, But Also In-Store Excitement
Online Dollar Sales Trend – Total F&B
Vaccine /
Re-Opening
Lockdown
Pre-COVID-19
Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021
Millennials (Born 1981-1996)
Generation X (Born 1965-1980)
Boomers (Born 1946-1964)
Source: IRI NCP Panel All Outlets Q4 2019 – Q2 2021 (data ending 06-13-21)
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 36Engaging Across Generations Provides Additional Ideas for Assortment,
Merchandising, Innovation and Communication
Millennials Seniors & Retirees
YTD vs. YA YTD vs. 2YA YTD vs. YA YTD vs. 2YA
Dollars
Trips
Find ways to engage the multiple Millennial Sharpen entry price points for smaller
segments. pack sizes. Continue to cater to Seniors
with special shopping hours, in-store
Innovation will be key to continue this promotions and online perks, including
trend, as sustainability and cleaner free delivery. Senior days (e.g., 5% off of
ingredients, along with emerging flavor total basket) may help build traffic,
trends will keep this somewhat historically basket size, and retailer loyalty during
fickle group engaged with COS brands this inflationary period.
Source: IRI Consumer Network – YTD 2021 ending May 16, 2021 vs. YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 37“Senior Hours” at Grocery Stores are Working, so
Continue to Embrace with Exciting Programs Just
For This Cohort
Dollar Index Total F&B – 6:00 AM – 7:00 AM
Pre (Calendary Year 2019)
126 127 134 144
109 110 COVID (Calendar Year 2020)
YTD 2021
Boomers Seniors
Dollar Index Total F&B – 7:00 AM – 8:00 AM
120 122
106 115 114 101
Pre (Calendary Year 2019)
COVID (Calendar Year 2020)
YTD 2021
Boomers Seniors
Source: IRI Shopper Loyalty YTD 2021 data ending 05-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 38Monitor Where They Shop to Adjust Messaging Given the
Slowdown in Recent Period
Online F&B Dollar Sales YTD % Change
33.6% Boomers (Born 1946-1964)
Seniors (Born 1925-1945)
14.1%
6.3%
% Chg vs YAG % Chg vs Prior Period
-7.6%
B&M MULO -2.7% -2.5% -0.6% -2.6%
Source: IRI NCP Panel All Outlets YTD 2021 data ending 05-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 39Don’t Forget Your Larger Households –
Provide Ideal Ways to Feed More for Less
5+ Member Households
YTD vs. YA YTD vs. 2YA
Dollars
Trips
Dollars
/ Buyer /
Assortment on family sizes will be key
to attract and retain these households
Dollars
/ Trip /
Source: IRI Consumer Network – YTD 2021 ending May 16, 2021 vs. YA
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 40There Are It’s Important is to Understand the Cohorts
Who Shop Your Stores or Buy Your Brands
Many Ways
to Look at Communicate and innovate incrementally on attributes and
benefits that matter to these cohorts and simplify the shopping
Your experience.
Shopper
DNA
Continue to Find Ways to Make the Shopping
Experience Exciting and Engaging
Retailers and manufacturers must continue to invest in platforms
to retain omnichannel shoppers while carefully curating distinct
online versus in-store experiences.
Personalize Communications to Retain and/or
Attract & Engage Shoppers
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 41HOLISTIC HEALTH WITH A TWIST
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 42The “Quarantine 15”
Was Real, With Weight
Gain More Than Expected
*Insufficient sample size for reporting
1 Data among adults ages 21+
of U.S. adults of adults say they of women reported
reported undesired gained more weight weight gain vs. 39%
weight change than intended, with of men, yet men
(gain / loss) the average weight gained an average of
gain of 29 pounds 37 pounds vs. women
at 22 pounds
2 American Psychological Association – Stress in America™ - One Year Later, A New Wave of Pandemic Health Concerns
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 43…Which Has Led Consumers
to Several Wellness Initiatives
of consumers plan to follow diet / eating plan
more closely than the past few months when
the vaccine is widely distributed
of consumers state they will go to the gym /
fitness classes the same or more than
they did prior to COVID-19
increase in total Peloton members –
from 3.1MM in June 2020 to 5.4MM
as of March 2021
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8; Peloton Interactive, Inc.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 44COS is Seeing the Impact of These
Lifestyle Changes, As Products
With Weight Management Claims
and Specific Diet Call-Outs Continue
to Grow Double Digit
$ Sales
Label Insight Attributes % Change
vs. 2 YA
Contains Weight Management Claim 2.6%
Atkins Diet 40 14.6%
High Protein Diet 14.7%
Ketogenic 16.1%
Low Carbohydrate Diet 16.0%
Low Fat Diet 10.6%
Macrobiotic Diet 11.9%
Paleo 15.9%
Pescatarian Diet 12.3%
Plant Based Diet 12.7%
Whole 30 Diet 15.9%
IRI TSV MULO+C CY 2021 YTD ending May 16, 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 45Products with
Carbohydrate, vs. YA vs. 2YA
Calories and/or Carbohydrate Claims
Vegan Claims No / Low / Less Net
+28% +48%
are Seeing Carbohydrate Claims
Strong Upticks in
Sales Due to
Calorie Claims
Alignment with
Calories per Serving +4% +13%
Diet Guidelines
Other Calorie Claims +5% +14%
Vegan / Vegetarian Claims
Vegan +3% +29%
Vegetarian -9% +12%
IRI TSV MULO+C CY 2021 YTD ending May 16, 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 46Consumers
Are Seeking vs. YA vs. 2YA
Energy, Not Protein Claims
Only in Key Other Protein Claims +5% +19%
Protein & Energy
Claims, But Also
in
Energy Claims
the Form
Energy Claims +6% -0.1%
of Caffeine
Caffeine Claims
Caffeine +25% +39%
Caffeine Added +268% +1410%
Contains Caffeine +119% +141%
IRI TSV MULO+C CY 2021 YTD ending May 16, 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 47Sweetener
Levels and vs. YA vs. 2YA
Types Are Sugar Claims
An Important No Sugar +11% +18%
Part of No Sugar Added +5% +23%
Consumers’
Wellness
Sweetener Claims
Journey
Sweetener Free +3% +16%
Other Sweetener Claims +2% +15%
No Added Sweetener +4% +21%
Emerging Sweeteners
Amaranth
Teff Blend
IRI TSV MULO+C CY 2021 YTD ending May 16, 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 48Some Consumers
are Looking for Help
with Holistic Health
Sally Lyons Wyatt
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 49Immunity is Still a Benefit Consumers Are Seeking
Due to Diversity of Needs, It’s Important to Stay Close to Your Shoppers
and Help Them Seek Solutions/Product Selections that Provide What
they Need / Want, Communicating the Benefits to Them
$ % Change $ % Change
vs. YA vs. 2YA
More Magnesium 451% 712%
More Vitamin C 24% 48%
More Potassium 23% 25%
Excellent Source
of Potassium 23% 29%
Excellent Source
of Vitamin E 17% 26%
Low Sodium 2% 12%
Source: IRI Total US MULO+C_Label Insight Attributes_ YTD 2021 data ending 05-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 50LOCATION, LOCATION, LOCATION,
WORK & SCHOOL
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 51The Urban to
Suburban Migration Has
Impacted What Consumers
Purchase
of U.S. households have have moved have moved to a
moved in the past year, away from urban / cities, different state
with 1.8% citing reasons while only 27.7% have
related to the pandemic moved to urban areas,
for moving leaving a net decline of
7.1 pts.
Source: Survey among IRI NCP Panel All Outlets YTD 2021 data ending 05-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 52Household’s That Moved From Urban to Suburban / Rural Had a
24% Increase in Basket Size vs. a Nominal Increase for Non-Movers
$ Basket Size % Change Basket Size
Total F&B Basket Size
$20.12 SUBURBAN
24.0% 9% higher
RURAL
16% higher
$17.54 vs. URBAN
1.9%
Pricing only
Moved from Urban Did Not Move slightly higher
to Suburban (2-3%) in Urban
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 53Meal Occasions Vary by Area: Urban More Ethnic / Cooking From Scratch; Suburban
Geared More Towards Quick Meals and Kids; Rural More Processed Foods
Urban Suburban Rural
Ethnic Quick Meals Processed/Packaged Meals
Mexican Foods, RFG/FZ Chili RFG Pot Pies Shelf Stable Dinners
SS Prepared Dinners/Entrees Canned Vegetables
Soy Sauce, Chow Mein Noodles
Microwaveable Dinners Dry Gravy Mixes
Matzoh Food
FRZ Pizza Kits Luncheon Meats
Olive Oil/Tomato Puree FZ/RFG Chicken
RFG Lunches
Cooking from Scratch/Baking Condensed Soup
Processed/Imitation Cheese
Spices & Seasonings Beverages Adult & Kids
Baking
Domestic Beer & Hard Ciders
Breadcrumbs Sugar
RFG Teas/Coffee
Rice & Dry Beans/Vegetables Energy Drinks Baking Mixes
Evaporated/Condensed Milk Baby Juice Gelatin/Pudding Mixes
Piecrust Mixes RFG Flavored Milk Glazed Fruit
RFG Milkshakes/Non-Dairy FZN & RFG Dough
Source: IRI NCP Panel All Outlets YTD 2021 data ending 05-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 54Back to School Shopping is
Expected to Be Much Higher
This Year, With 43% of Parents
Expecting to Spend More
Overall Than Last Year
As of June, Major Metropolis’s Across the U.S.
Will Have School in Person this Fall 2021,
Following CDC Guidelines for Masks
with only
?
plan to buy more planning to buy all / of parents have have no plans to
new clothes this fall most back to school already vaccinated vaccinate, while
compared to last items online (vs. their 12-17 year-old, 16% remain unsure
? fall, 30% plan to buy 29% last fall), online with at least one about vaccinating
more school is expected to lose COVID-19 shot;
supplies and 21% share, as parents another 12% plan to
plan to buy more will be doing more get it at a later date
? ? sanitizing products in-store this year
Source: IRI Survey among IRI Consumer Network™ Panel representing Total U.S. Primary Grocery Shoppers – Wave 29 = 6/4-6/8
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 55In Addition, Work-from-Home Meal Occasions
Have Been Shifting and Many Will Stick
With ~33MM Lunch and Breakfast Occasions at Home increase in 4 years
WFH beyond 2021
in the workforce
Source: https://www.bls.gov/opub/mlr/2020/article/ability-to-work-from-home.htm
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 56Location, New Work Models and the Presence of Kids Will Provide Additional
Personalization Opportunities for Center Store Growth
As we approach Fall, many companies are moving to hybrid or all in-person work situations, presenting
assortment and messaging opportunities. Leverage loyalty data or other source to inform communications.
Urban Suburban Rural
• Combination SS & MS snacks & • Quick snack and meal solutions • Engage with ideas for portability
beverages challenges (e.g., Insulated Bags)
• Occasion-based planning
Work from Home • Ethnic foods • Recipes with FZ and RFG items
(5 days/week) • On-the-go snacks and meals along with shelf stable
• Cooking from scratch inspirations
• Baking ideas
• More Multi-serve snacks • Occasion-based planning • Center Store Ingredients for
Meals prepared with appliances
Blend • Frozen Meals ideas • Kid focused meals and snacks
(Work from Home
(e.g., InstaPot, Crockpots, etc.)
1 to 4 or 5 days/week) • Recipes for cooking from scratch • Convenient and/or on-the-go • Convenient and/or on-the-go
breakfast and lunch breakfast and lunch
• Menu planning ideas leveraging total • Meal options focused on families • Shelf Stable meal combinations
store (COS + Perimeter meal ideas)
Work away from • Center Store Ingredients for Meals • Center Store Ingredients for
• Pick up for “on demand” dinner prepared with appliances (e.g., Meals prepared with appliances
home needs InstaPot, Crockpots, etc.) (e.g., InstaPot, Crockpots, etc.)
(5 days/week)
• Convenient and/or on-the-go • Convenient and/or on-the-go • Convenient and/or on-the-go
breakfast and lunch breakfast and lunch breakfast and lunch
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 57PRICE AND PREMIUMIZATION
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 58The News has
…as Manufacturers Cite Increased
Consumers Bracing
Costs Due to Inflationary Pressure
for Higher
from Pandemic Reovery
Grocery Prices…
Food Prices Will "We are seeing great growth across our
North American business, in particular our
Continue to Rise in pet business, and are seeing rising cost
2021 pressures and increased costs to serve,"
General Mills CEO Jeff Harmening
Why Food Prices
Will Keep Going Up “As we obviously follow the inflationary
factors and see what's happening in the
business, we feel very confident in our
The Grocery Price ability to price," -Jim Snee, Hormel
Shock is Coming to Chairman and CEO
a Store Near You
Get Ready for Higher We are experiencing "ongoing inflation
pressure," said PepsiCo CFO Hugh
Grocery Bills for the Johnson on the company’s second-
Rest of the Year quarter conference call. "There'll be a bit
more pressure in the back half.“
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 59The Latest CPI News Has Food Away from Home Up
4.2% and Food At Home up 0.9%, and We Know It Will
Continue to Fluctuate
• Contributing factors to increased prices:
⎯ Less promotions with higher demand
⎯ Increased gas prices
⎯ Supply chain issues
⎯ Cost of raw materials
⎯ Labor costs / worker shortages
⎯ Retail pandemic related safety measure costs
CPI % Change YA
6% All items Food Food at home Food away from home
5.4%
5%
4.2%
4%
3% 2.4%
2%
0.9%
1%
0%
Jul-19
Jul-20
Jan-19
Jun-19
Jun-21
Aug-19
Sep-19
Nov-19
Dec-19
Jan-20
Jun-20
Aug-20
Sep-20
Nov-20
Dec-20
Jan-21
Apr-19
Oct-19
Apr-20
Oct-20
Apr-21
Feb-19
Mar-19
May-19
Feb-20
Mar-20
May-20
Feb-21
Mar-21
May-21
https://www.bls.gov/charts/consumer-price-index
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 60In Addition, the Latest CPI News of 5.4% Has Energy as
the Largest Driver Which Means That Many Consumers
are Having Difficult Decisions on Where to Spend Their
Money – i.e., Gas, Food, etc.
CPI % Change YA
24.5%
5.4% 4.2% 4.5%
2.4%
0.9%
All Food Food at home Food away from Energy All items less
home food and energy
https://www.bls.gov/charts/consumer-price-index
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 61Many Consumers Have had Assistance
From Various Programs to Help Them Get
Through the Pandemic
Food Shortage and Financial Instability Fell by
More Than 40% Between December and April, in
Line With Stimulus Checks Distribution
The child tax credit started in July and will be a
monthly payment to families with children. These
checks are estimated to move 10MM American
children above the poverty line.
Federal unemployment benefits from the American
Rescue Plan set to expire September 6, 2021, in the
States Still In Progress
Source: https://www.cnbc.com/2021/06/03/stimulus-checks-reduced-food-shortages-financial-hardship-by-over-40percent.html / https://www.bls.gov/charts/consumer-price-index / U.S. Census Household Pulse Survey
Child Tax Credit - $300 for each child under 6 and $250 for each child 6-17 through the end of the year.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 62All These Factors Have Led to Concerns about Food Cost Inflation (June)
Extremely Somewhat Not At All
28% 56% 16%
53%
of Consumers State that They
Have Noticed Grocery Prices
Are Higher and Are Purchasing
Fewer Items
42%
of Consumers Have Noticed
Grocery Prices Are Higher,
So They Are Having to Trade
Down in the Quality of Items
Source: IRI Consumer Connect – Q2 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 63To Date, Consumers Are Spending More as Promotion Reduction and
Premiumization Increased Overall Price Paid, But That May Change Going Forward
Decomposition of Price per Volume % Change vs. YA / Grocery Channel / 28 WE 7/11/21 Edible Nonedible
Δ vs 28 WE 12/27/20
Increased Reduction in Mix Shift/ Tot Price / Mix Shift/
Everyday Price Promotion Premiumization Volume Change Premiumization
Sports Drinks 1.2% 3.4% 3.7% 8.3% -0.7
Pet Food -0.4% 1.7% 5.6% 7.0% +1.1
CSD 1.6% 2.2% 2.5% 6.4% +1.0
Fz Novelties 0.1% 2.2% 3.6% 5.9% +1.5
Bread -0.1% 1.6% 4.3% 5.7% +1.1
Energy Drinks -0.9% 1.2% 4.8% 5.1% +2.7
Spices/ Seasonings 0.4% 0.1% 3.8% 4.3% -2.6
Chocolate Candy -0.2% 2.4% 1.9% 4.2% +0.2
Salty Snacks -0.5% 1.5% 2.9% 3.9% +2.2
Bottled Water -0.1% 0.5% 2.5% 3.0% +0.2
Ice Cream -0.7%-0.1% 3.6% 2.9% 0.0
Sugar 0.0% 1.2% 1.7% 2.9% -1.1
Frozen Entrees 0.0% 1.1% 1.7% 2.8% +0.4
Frozen Pizza -0.3% -1.1% 2.5% 1.2% +1.0
Pasta -1.2% -2.1% -1.8% 2.7% +0.6
Example Categories
Note: Everyday price at item level. Promotions includes promotion frequency and depth (driven by frequency). Mix shift refers to different in product mix vs. YA, driven by shifts to more premium brands (positive effect) countering shift to larger
pack sizes (negative effect). Source: IRI POS 28 weeks ending 7/11/21, 28 weeks ending 12/27/20, Grocery channel. IRI Strategic Analytics..
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 64Manufacturers Anticipated Long-Term Benefits From a Consumer Shift to
Premiumization, But Now Face Huge Risks Related to Widespread Cost Inflation
To succeed, the industry will need to figure out how to shift its pricing, pack sizes, messaging,
positioning and innovation to meet this inflationary challenge profitably.
Source: IRI’s Achieving Profitable Growth in an Inflationary Environment Report
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 65Key Levers Shift Price to Better Align to Value
If price elasticity allows it, take price as the quickest means to
to Drive Price capitalize. Careful not to disrupt desired channel pricing dynamics
Realization or misalign the price-volume curve, but there will be opportunities
to raise both list and shelf price.
Some products
that made Shift Pack Size to Reduce Costs
Consider shifting pack size to achieve a higher price per volume.
targeted claims
While history has shown shoppers will react less negatively to a
aligned to needs downsize than a price increase, there is the risk of reducing
and wants were overall consumption.
able to further
decrease price Refine Messaging & Positioning
sensitivity in 2021. Reframe the value proposition of the existing products. Simply
However, claims better articulating what your products and brands already deliver
can pay significant dividends.
alone are not
enough. Innovate to Increase Willingness to Pay
Investigate how to alter the portfolio to capitalize on a positive
cost-benefit relationship. This can mean adding in high-value,
lost-cost product benefits but also finding where to streamline
product attributes that cost more than they are worth in value.
Source: IRI’s Achieving Profitable Growth In An Inflationary Environment publication
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 66WINNING WITH SUSTAINABILITY
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 67Millennials Are More
Educated and Concerned
About Sustainability
Than Older Generations, Compared to older generations,
and They Know it Means Millennials are significantly
More Than Just Recycling more likely to most closely
associate “sustainability” with:
Total Millennials Older Generations
• Conservation
(34% vs. 28%)
Minimizing 48%
carbon • Commitment to using
footprint / 54% renewable resources
greenhouse (28% vs. 23%)
gases 46%
• Minimizing negative
environmental impact
Minimizing 45% (24% vs. 18%)
the • Minimizing carbon
exploitation 49% footprint of a person,
of natural
resources 43% company, product
(22% vs. 18%)
Source: Custom IRI|NYU Stern Survey on Sustainability
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 68Although Millennials Are More Likely Than Older Generations to
Buy More Sustainable Options, There is Headroom to Grow…
Millennials are more likely vs.
than the older generations to Millennials are more likely to buy certain grocery items
because they are more sustainable than other items
seek out retailers that are
are more likely to buy reusable water bottles
devoted to sustainable (vs. 54%)
business practices (25% vs. are more likely to buy products with specific
14%) and carry sustainable sustainability characteristics such as organic or recycled
(vs. 21%)
products (29% vs. 21%)
Source: Custom IRI|NYU Stern Survey on Sustainability Millennials N = 299. Definition: Age 24-39 / Non-Millennials N = 933. Definition: Age 40+
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 69Millennials and Other Generations are Actioning Against Their Attitudes with
Products Touting Key Sustainability Claims Realizing YTD Growth
$ % Change vs. YA
Renewable Packaging Content
Carbon Neutral
Farmed Seafood
Farm Raised
Fair Trade
Eco Friendly
B Corporation
Companies must be clear in how they are supporting
the environment and consistent in their message globally
IRI TSV MfULO+C – Label Insight Attributes - YTD 2021 ending May 16, 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 70TREATING PETS FOR
HEALTH & HAPPINESS
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 71COVID-19 Drove the Desire
for a Pet Companion
Over a Quarter of Current Pet Owning HHs
Acquired a First or Additional Pet in the Past Year
Pet
Acquisition
Timing
IRI COVID 19 Impact Trends Survey 4/12/21: Pet Adoption Timing
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 72New and Retained Buyers Increased Spending in the Pet Care Aisle
In Alignment With Survey Data, New Buyer Spending
Rose Most in Treats and Supplies
Pet Care Categories – NLR Dollars
Total Per 2 Dollars %Chg New Lost Dollars %Chg Retained Dollars
40.0% 50.0
33.3% 45.0
30.0% 30.9%
27.5%
40.0
20.0%
35.0
10.0% 12.2%
$ Sales (M)
9.2% 30.0
5.4% 3.9% 5.2%
0.0% 25.0
-10.0% 20.0
15.0
-20.0% -18.3%
10.0
-30.0% -30.2% 5.0
-40.0% .0
Aisle - Pet Care Cat/Dog Litter Pet Food Pet Supplies Pet Treats
IRI Total U.S. MULO, 52 weeks ending 6-13-21.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 73Pet Aisle Growth Was Fueled by Pet Treats and Pet Supplies
Despite Growth, Total Points of Distribution
Contracted in Most Categories
Sales & Space Growth in Pet Care – Bubble Size Determined by $ Volume
1,000.0 CAT/DOG
LITTER PET TREATS
0.0
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0%
-1,000.0 PET SUPPLIES
PET FOOD
TPD Chg. YA
-2,000.0
-3,000.0
AISLE-PET CARE
-4,000.0
-5,000.0
-6,000.0
-7,000.0 $ Sales % Chg. YA
IRI Total U.S. MULO, YTD 2021, Ending 5-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 74Owners Consider Nutrition to Be
Essential in Pet Food, But What
Fido or Fifi Prefer is a Close Second
Top Considerations When Choosing Pet Food Meets the health and nutrition
standards for my pet(s) 51.4%
It is my pet's taste/preference 46.2%
Is the best price 42.3%
I consider the product high
quality 38.6%
It's made without ingredients I
don't want, i.e., grain, fillers, 31.9%
artificial flavors, etc.
Has the ingredients I desire for
my pet(s) 31.6%
It's my preferred brand 26.3%
IRI Q2 Consumer Connect Survey: “Please select the top 3 factors that are most important to you when making your pet food purchase decisions”
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 75Claims Matter to Health-Conscious Pet Owners, So Align Communications
for Not Only Human Wellness, But Also Pet and Human Wellness
Grain-Free, Protein and Vitamins are Top Claims Delivering Growing in
a Flat Pet Food Category, Presenting Opportunities to Transfer to Treats
Top Pet Food Claims Growing Faster than Category
21% Treatment Claim Growth
15%
13%
10%
4% 3% 4%
GRAIN FREE NO CORN WHEAT NON-GMO HIGH PROTEIN ADDED VITAMIN & ANTIOXIDANT HEALTHY
OR SOY MINERAL GLUCOSAMINE DIGESTION
OMEGA
IRI Total U.S. MULO, YTD 2021, Ending 5-16-21
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 76Treating a Pet Became Increasingly
Important During the Pandemic…
Nearly a Third of Pet Owners Claimed to Purchase
More Treats During the Pandemic Period Treats 31.8%
Pet products, i.e., leash,
scratching post, 16.5%
kennel/carrier, mat, etc.
Different food to
accommodate my pet/s' 14.3%
lifestage
Products to address a
specific condition (such as 7.0%
obesity or anxiety)
Grooming services 5.8%
Specialty pet items,
including outfits, therapeutic 5.7%
beds, etc.
Daycare for my pet 1.1%
IRI Q2 Consumer Connect Survey: “Which of these products did you purchase more of during the pandemic?”
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 77…and Will Continue to Be
Important Moving Forward
Treats Were the Top Anticipated Pet
Need Coming Out of the Pandemic Different treats 18.9%
Grooming services 18.1%
Pet products, i.e., leash,
scratching post, 15.5%
kennel/carrier, mat, etc.
Different food to
accommodate my pet/s' life 13.4%
stage
Products to address a specific
condition (such as obesity or 8.3%
anxiety)
Specialty pet items, including
outfits, therapeutic beds, etc. 5.6%
Daycare for my pet 3.5%
IRI Q2 Consumer Connect Survey: “As we emerge from the pandemic, what products or services do you anticipate needing for your pet?
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 78Latch On To Enhance Occasion-based Marketing and
The Growth Of Advertising to Include Pet Ideas too
Pet With Fun Share ideas that birthday & holidays celebrations and
everyday moments are better when with your pets via center
Promotion and store human F&B categories connected to pet categories.
Merchandising Explore front end placements if feasible.
Connections Update Assortments to Match Needs
Increase the points of distribution for products being
purchased in other channels
Consider Special Pet Celebration Days
Not to have them go into the store but for their owners to
bring home special treats and/or toys along with food
Innovate Special Packaging for Gifts (e.g.
Holiday tins, etc)
Great option for people who buy treats but do not have a pet
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 79INNOVATION
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 80So Far in 2021, We Are Seeing an Increase in Cross-Licensing, Tropical/Exotic Fruit
Flavors, Low/Zero Sugar, Spicy, International and Plant-based
Low / Zero Sugar Licensed Products Spicy
Tropical / Exotic Fruits International Plant-Based
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 81In Order to Keep
Consumers Coming
Back to CPG Retail,
Focus Needs to be
on Excitement and
Engagement
Source: IRI Consumer Connect – Q2 2021
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 82Innovation is a Driver of Excitement and Potentially
Engaging Depending on the Type of Innovation
PROACTIVE
Acquire New Order of Entry Matters!
Consumers
CREATE NEW CATEGORIES EXPAND INTO ADJACENT CATEGORIES
Combine key attributes to redefine the Understand which attributes create a true point
fundamental product solutions of difference in a pre-established domain
Attract new consumers with new Look to enter adjacent categories to leverage
products to meet their unmet needs brand credibility for incremental growth
GROW SHARE IN CURRENT CATEGORY COMMERCIAL INNOVATION
Fresh Attributes and flavors that provide Expand current brands and products into new
variety within legacy categories or emerging channels or exclusive geographies
Use news to surprise and delight consumers Meet consumer consumption needs by being
REACTIVE and take advantage of emerging trends where they buy, and their shopping habits
Increase
Buy Rate
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 83Innovation is Not Always About Finding the “Silver Bullet”, All Innovation
and Renovation is Important in Keeping Brands Relevant Over Time
PROACTIVE
Acquire New Order of Entry Matters!
Consumers
CREATE NEW CATEGORIES EXPAND INTO ADJACENT CATEGORIES
Combine key attributes to redefine the Understand which attributes create a true point
fundamental product solutions of difference in a pre-established domain
GROW SHARE IN CURRENT CATEGORY COMMERCIAL INNOVATION
Fresh attributes and flavors that provide Expand current brands and products into new
variety within legacy categories or emerging channels or exclusive geographies
10.8oz
REACTIVE
3.5oz
Increase
Buy Rate
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 84Oreo Fosters Growth Innovation by Launching New Products
and Flavors to Drive Brand Relevancy and Original Cookie Sales
flavors introduced by Oreo since 2012, starting with the Birthday Cake Oreo
average annual sales increase of flavored, seasonal and novelty Oreos
average annual sales increase of the Classic Oreo, with help from flavored
growth of buyers annually driven by Oreo penetration
increase of annual buy rate as buyers increased engagement
Source: IRI CSIA Total U.S. All Outlet, IRI Market Advantage MULO+C
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 85Unique
Partnerships Cheez-It Drives Growth Through Innovative
Identify new
Formats and Flavor Combinations, While Looking
occasions with for Brand Extensions in Adjacent Categories
different buyers
of total Cheez-It sales come from sales of innovation SKUs
annual growth derived from Innovation and Classic SKUs
growth of buyers annually driven by Cheez-It penetration
increase of annual buy rate as buyers increased engagement
Source: IRI CSIA Total U.S. All Outlet, IRI Market Advantage MULO+C
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 86Keys to Bubly Became the #4 Brand Among an
Success Already Established Sparkling Water
Category in Just Three Short Years
Clear and
catchy slogan of 2020-dollar share, at $355M,
as Bubly surpasses existing brands
Packaging with
social media of Bubly buyers are repeat buyers
in mind vs. 68% of a established brand
LTOs to drive buyers captured in 2020 as Bubly
scarcity and continues to drive penetration
excitement
of caffeine in each can of Bubly Bounce,
Broad launched in 2021, providing hydration with a kick,
Distribution
Source: IRI CSIA Total U.S. All Outlet, IRI Market Advantage MULO+C
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 87Why In Starbucks, LTOs Help Drive Incremental
LTOs? Volume to Both the Category and the Brand
by Bringing New News to the Aisle
Bringing New
News to % Source from 2017 2018 2019
the Shelf Core vs. Other
Brands
Helps to Win 35% 40% 38%
Display Space Other Brands
Starbucks Core 65% 60% 62%
Trade Up Story
for Retailers
Incremental to Starbucks
+55 MM +99 MM +85 MM
Servings Servings Servings
Source: IRI CSIA Total U.S. All Outlet, 13 Weeks Ending Dec 29, 2019, Dec 30, 2018, and Dec 31, 2017
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 88Successful Innovation and Renovation
is Driven by Consumer Needs
Bring New Products to Anticipate and Participate
Consumers in Unique Ways in Emerging Trends
• Attract new consumers • Tap into restaurant
with new product trends
concepts, benefit call- to stay ahead of what’s
outs, flavors next for in home
and exclusives occasions
• Use LTO’s and seasonal • Monitor small and
ingredient offerings to emerging players, and
capture display space and consider incubation
add incremental purchases investments with the
option to buy
• Direct to consumer provides
an opportunity to try out • Look at growth in
new flavors, and concepts adjacent categories for
and gather direct consumer inspiration
feedback on a small scale
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 89actions for
continued
center store
growth
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 90Throughout the
Webinar, We
have Shared a
Variety of Ideas
In-Store & Holistic Health Location,
Please Consider Online Duo
Shopper DNA
with a Twist
Location, Location,
Work & School
Those and The
Following as
You Continue to
Make Center
Store Stick
Treating Pets
Price & Winning with
for Health & Innovation
Premiumization Sustainability
Happiness
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 91Actions for Continued Center Store Growth (1/2)
In-Store & Online Duo
• Align omnichannel strategies to the enhanced ways consumers shop tied
to their needs (e.g., different selections online vs. in store; personalized
meal bundles, not just category focus).
• Use online and in-store, as well as social media, as a source of center
store food education and make it easy for consumers to find center store
products aligning to dietary guidelines, benefits. (e.g., electronic ‘maps’)
Shopper DNA
• Detect shifts in consumer needs and preferences and react with agility as
demand patterns shift
• Utilize personalized digital and social media to retain and/or attract and
engage shoppers who may have gone back “to their old ways.”
Holistic Health with a Twist
• Due to diversity of holistic health needs, stay close to your shoppers and
provide meal solutions and/or product selections that provide benefits
what they need / want and communicate the benefits.
• Continue to find ways to increase / enhance ‘in-store’ exploration -
ingredient labelling and pack copy; merchandising benefit-led aisles.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 92Actions for Continued Center Store Growth (2/2)
Location, Location, Location, Work & School
• Leverage loyalty data to provided personalized solutions based on
shopper home location combined with the new work models and
presence of kids.
Price & Premiumization
• Strategic analytics can assist in identifying optimal pricing, pack sizes,
messaging, positioning, innovation to meet inflation challenge profitably.
Winning with Sustainability
• Omnichannel messaging needs to be clear regarding environmental
actions.
• Develop and/or communicate sustainability education and metrics
across meal solutions and/or products for all shoppers.
Treating Pets for Health & Happiness
• Tie themes for pets and humans in a fun and engaging way to connect
shoppers’ health and wellbeing attitudes across their “family”
Innovation
• Innovate to meet evolving needs and emerging benefits but also drive
excitement and engagement throughout center store.
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 93questions & answers © 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 94
thank you
Sally Lyons Wyatt
Sally.LyonsWyatt@IRIworldwide.com
Follow IRI on Twitter: @IRIworldwide
© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 95be the first to know
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Thought Leadership from IRI’s
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© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 96IRI Thought Leadership Delivers
Insightful, Provocative Insights
C-Suite Conversation Series on COVID-19-Related Topics
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© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 97IRI Global Headquarters
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© 2021 Information Resources Inc. (IRI). Confidential and Proprietary. 98 98You can also read
