April 19, 2015 Millennial Insights Millennial Munching Equity Research A generational shift reshaping the future of food The Future of Food is with Millennials The nimble Fast Casual victor Jason English Baby Boomers capture headlines with population Winning with Millennials lies at the intersection of (212) 902-3293
[email protected] statistics, but declining consumption with age “real food” and convenience in restaurants. Nimble Goldman, Sachs & Co. makes this generation less relevant for food spend entrepreneurs can win while legacy QSRs may lose; YUM (Sell) and MCD (N) seem vulnerable. than some might believe. The future of food is with Karen Holthouse Millennials – the largest US generation and one in SBUX (CL-Buy) stands out as best positioned as (212) 934-4252
[email protected] the early stages of household formation and the only incumbent restaurant at the intersection Goldman, Sachs & Co. transition to parenthood. We expect Millennials to of ubiquity, convenience, and quality. account for more than 75% of growth within the Stephen Grambling, CFA food vertical over the next decade. Packaged food’s expensive uphill climb (212) 902-7832
[email protected] We expect manufacturers to suffer from Goldman, Sachs & Co. Share of stomach to shift to at Home unbalanced growth and reinvestment to realign Millennials will reshape the future of food. The portfolios. HSY (N) faces unique challenges of a Adam Samuelson fading sweet tooth while CPB (Sell) suffers as meals combination of family formation and a desire for (212) 902-6764
[email protected] transparency favors food at home, which will from cans fade.