TRANSPARENTLY DELICIOUS - Flavor Producers

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TRANSPARENTLY DELICIOUS - Flavor Producers
TRANSPARENTLY DELICIOUS
Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
The
Flavor Producers
Difference

                                                                                 TRANSPARENTLY DELICIOUS
                   Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
A Growing Palate
                                                                                                     Basic taste has grown up. Flavor profiles that
                                                                                                     were once avoided or thought too niche for
Macrotrend Platform                                                                                  large brands have surprised the market and
Next Instore reflects the macrotrends that inspire new product                                       found commercial success. Taste profiles like
development and innovations in food and beverage products.                                           bitter, sour and umami, that were once an
Flavor Producers are natures experts in natural, organic and                                         afterthought, are now active discussions in new
transparent flavor options for elevating the taste to meet the                                       product development.
evolving consumer needs.
                                                                                                      Toying With Emotions
                  A Better Us
                                                                                                      The integration of online culture and social
                  We all strive for self improvement, so let’s                                        media has changed the way consumers are
                  start with what sustains us. From organic                                           interacting with food. Food and drinks that
                  offerings to clean and clear labels,                                                appeal beyond taste and onto an emotional,
                  sustainable packaging and beyond, the food                                          visual or creative level are flooding social media
                  industry is adapting to consumer demand for                                         and in return expanding into foodservice and
                  more personalized and sustainable options.                                          then landing in retail spaces.

                  Borderless Taste                                                                    A Little Off-Base
                  Taste has gotten bigger as the world has                                            As functionality continues to change the food
                  gotten smaller. Thanks to improvements                                              and beverage landscape, it has carved an
                  in global communication along                                                       expanding path of consumer flavor interaction
                  with consumers access to exotic ingredients,                                        and acceptance. The rise of “alternative”
                  cooking techniques and recipes the flavors of                                       products has evolved flavor masking into flavor
                  the world are more available than ever.                                             mimicking finding flavor optimization to fill in the
                                                                                                      gaps of new products.

                                                                                                                                TRANSPARENTLY DELICIOUS
                                                                  Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
2022 Forecast
Searching for the new normal as a second year of COVID-19
passes with new challenges such as variants, supply chain
issues and social dissidence have consumers more focused into
what is affecting their personal mental and physical wellbeing.

The chant for greater transparency around all facets of life
including; politics, financial markets, relationships, social media
and food seems to be getting louder and louder by the hour.                                                   A Better Us
Indulgences that were once comforting are now being                                       •      Increased Transparency
revaluated, as consumers are establishing healthier                                       •      Healthy Relationships with Food
boundaries in vices while still finding a flavorful escape.                               •      Mindful Alcohol & Alternatives
                                                                                          •      Personalized Wellness
Hampered by supply chain issues, restaurateurs are
                                                                                          •      Fresh, Organic & Limited Menus
rethinking menus, to eliminate potential bottlenecks while
streamlining innovation.

                                                                                                                                    TRANSPARENTLY DELICIOUS
                                                                      Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
Key Drivers: Transparency, Fresh, Mindful & Well

                                                                                                                                                    Of people globally are
                                                                                                                                                      drinking more non-

      80%
Of consumers surveyed by the
                                    More than 80% of retailers
                                       expect to increase space
                                                                      Generation Z is focused
                                                                      on more than traditional
                                                                            wellness.
                                                                                                                                                    alcoholic and low-ABV
                                                                                                                                                   cocktails than a year ago
                                                                                                                                                     according to a recent
                                    allocation for fresh-prepared,     According to the 2022                                                         survey conducted by
  Food Industry Association                                                                                                                                 Bacardi.
                                     grab-and-go selections, and       Instagram Gen Z trend
(FMI), said that transparency in
  food and beverages is very       70% will do so for plant-based         report about 1 in 3                                                      In the same survey 1/3 of
       important to them.           foods and meat alternatives.      survey participants plan                                                       people in the U.S. see
                                                                         to partake in mental                                                       natural ingredients as a
 43.5% of consumers, want          Organic is also top of mind with   wellness activities and 2                                                      factor in their cocktail
full ingredient transparency for      consumers, as 55% of                  in 5 are part of                                                                 choices.
 alternative proteins according
                                   consumers who choose organic       communities that build
    to a survey conducted by
                                    do so because they think it is      connections through
   C.O.nxt and Menu Matters.
                                             healthier.                         health.

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                                                                       Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
2022 Forecast
At the heart of cuisine is the experiential aspect of
discovery. What may seem mundane to you may be
revolutionary to someone else. It’s this international
exploration of flavors that makes food and drink so
special and it has never been easier thanks to the
connectivity of social media. With just a flick of a finger
you can now find unique twists on international culinary
staples or dig deep into videos on authentic regional                                          Borderless Taste
preparation.
                                                                                  •      Exotic Flavor Exploration
This exploration isn’t just for the home chef, large chain                        •      Segment Expansion / Beyond Tradition
restaurants are getting into the mix with ghost kitchens                          •      Authentic Preparation
acting as proof of concept for restaurants focused on                             •      Global Social Media Influence
more international cuisine.
                                                                                  •      Ghost Kitchens

                                                                                                                            TRANSPARENTLY DELICIOUS
                                                              Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
Key Drivers: Ghosts, Tradition, & Fusion

                                        Taste Tradition                                                     A Social Fusion
                                                                                                           Blending trendy international flavors into
 $1 Trillion                             Pinterest is showing growth in saved
                                        recipes rooted in regional authenticity
                                         Norwegian recipes traditional +120%
                                                                                                           cultural fusions dishes like Birria Ramen
                                                                                                           and Mochi Doughnuts have become viral
   Euromonitor, predicts that the                                                                                       on social media.
   Ghost Kitchen industry could            Filipino recipes authentic +35%
                                            Traditional Russian food +3x                                    According to a recent Instacart survey
 reach a trillion-dollar valuation in
                                        South African recipes traditional +150%                             90% of consumers who tried making a
        the next ten years
                                              Arabic food traditional +2x                                  social media food trend in 2021 have kept
                                                                                                             one in their regular cooking rotation.

                                                                                                                           TRANSPARENTLY DELICIOUS
                                                             Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
2022 Forecast
Botanical and herbal flavors have expanded beyond
your favorite watering hole and into the grocery aisle.
Sour flavors shifted the consumers mindset, moving
from tart to refreshing with a push from craft beer and
functional beverages like kombucha and drinking
vinegars. This shift to more complex mainstream
offerings was spring-loaded with the rise of bitter flavors
and is now leaving the door open for innovation into                                          A Growing Palate
more experiential flavors that include sensorial effects,
descriptive cooking cues, savory influences and even                              •      Mainstream Complexity
parlaying into umami.                                                             •      Sour & Beyond
                                                                                  •      Botanical & Herbal Twists
                                                                                  •      Experiential Flavors
                                                                                  •      Sensorial & Cooking Cues

                                                                                                                            TRANSPARENTLY DELICIOUS
                                                              Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
Key Drivers: Taste, Complexity, & Experimentation

 A New Taste                            Non-Complexity                                                                  Molecular
    With sour flavors offerings now           According to NeilsenIQ, sales of
 entering the mainstream in products
     like kombucha, beer, drinking
     vinegars, and even seltzers, it
                                        non-alcoholic beverages rose 33.2% over last
                                         year with the greatest growth coming from
                                           non-alcoholic spirits showing 113.4%.
                                                                                                                               1 in 6
interesting to see what consumers are                                                                           Teens and millennials are showing an
                                         With total sales at $331 million there is still                       increased interest in at-home molecular
      talking as the future of taste.
                                          room to grown in this category, but more                             gastronomy according to the Instagram
                                        importantly it is showcasing that consumers                                      2022 Trend Report.
      Floral +24.3% YoY                      are embracing more complexity in
    Bittersweet +4.8% YoY                    non-alcoholic beverage selection.
       Umami +3% YoY
            Source: Tastewise

                                                                                                                              TRANSPARENTLY DELICIOUS
                                                                Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS - Flavor Producers
2022 Forecast
While a sense of nostalgia is always present in consumer
goods, it seemed have been amplified during the early stages
of the pandemic. During this time, the majority nostalgia
seemed focused around the early too mid 90’s era, with
vibrant and bold themes in art, fashion, music, design and
food all thriving. Fast forward till today and a good deal of
these elements are still thriving, but there seems to be an
emerging push towards the late 90’s and early 2000’s with                                   Toying With Emotions
music and fashion in particular showing ties to emo, pop-punk
and even goth phases.                                                                      •      Vibrancy
                                                                                           •      Fun-ctional
On the flipside the isolating affects of the pandemic created a                            •      Unique Presentation
yearning for more social interaction. Now that there is more                               •      Interactive Food & Drinks
leniency around gatherings, look for more socially interactive
                                                                                           •      Y2K Nostalgia
food and drinks featuring unique presentations and fun
elements to rekindle the social atmosphere.

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                                                                  Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
Key Drivers: Fun, Presentation, & Nostalgia

                                                                                                                It’s a Lifestyle
                                                                                                           From music to fashion, it seems nostalgia
                                        New Presentation                                                    is hitting the latter half of the 1990’s with

 Fun @ #1                                    With over 13M views the hashtag
                                         #teabombs on Tik Tok is just the newest
                                                                                                             goth fashion, emo and pop-punk music
                                                                                                               invading popular social media sites.

 According to Tastewise, out of the       twist on presentation and function that                                   Goth’s Growth on Pinterest
 top ten social motivations in all of   took over the social media platform. This                                     Goth business casual +90%
    food and beverage, fun is the            growth builds on the rise unique                                             Goth cowboy +70%
   fastest growing at +16.2% YoY.        presentations showcased last year with                                        Goth baby clothes +120%
                                           bento boxes, charcuterie boards and                                         Goth kitchen decor +85%
                                                      cocoa bombs.                                                       Goth pajamas +185%

                                                                                                                            TRANSPARENTLY DELICIOUS
                                                              Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
2022 Forecast
Functionality, novel plant-based options, sugar
reduction, and consumer transparency will continue
to be driving factors in the market for 2022 and
beyond. The great news is all these drivers are
around making better products focused on personal
wellness, but there is one gap that is rising for 2022.

Now that we are discovering the greater effects of the
                                                                                            A Little Off-Base
pandemic through inflation numbers and supply                                      •      Functional Notes
chains issues; these effects will likely raise prices                              •      Plant-based Alternatives
across the board and challenge consumers                                           •      Sweetness Modification
financially. Knowing this will be a challenge, we as                               •      Transparency Challenges
developers need to be mindful of how financial                                     •      Financial Wellness
wellness comes into play.

                                                                                                                        TRANSPARENTLY DELICIOUS
                                                          Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
Key Drivers: Health, Function & Finance

Health Focused                            Functional Delivery                                                        Feeling Inflated
88% of American consumers feel that       The Hartman Group’s Functional Food and                                    With supply chain issues and elevated
 it's important to manage their health     Beverage and Supplements report found                                      inflation numbers it is important to
       now to prevent issues later          56% of consumers seek out functional                                    remember the consumer repercussions
    according to a 2021 Ipsos/NZMP           beverages to for specific conditions.                                        price increases can induce.
       Consumer Research study.            Functional beverage sales are expected to                                According to Bloomberg, 58% of U.S.
                                             reach nearly $49 billion at the close of                             Consumers said they have switched to a
 New and novel plant-based options
                                              2021. by Packaged Facts' Functional                                  cheaper brand in the last three months
are looking to capitalize on this focus
                                                 Beverages: Market Trends and                                    because of a price increase. 28% said they
  with new innovations in proteins,
                                                      Opportunities report.                                      had switched to a private label for that item.
snacks and alternative dairy options.

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                                                                    Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
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                                                     Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
TRANSPARENTLY DELICIOUS
Proprietary & Confidential Information of Flavor Producers, LLC © 2021 Flavor Producers, LLC. All rights reserved.
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