© 2017 The Hartman Group, Inc Food Culture Trends and Their Impact on the Category Consultant, The Hartman Group Robertson Allen, Ph.D. 1 © 2017 The Hartman Group, Inc Millennials’ #1 pasta proselytizer: Aziz Ansari http://archive.azcentral.com/prog/image.php?i=685562.jpg recent http://passionforpasta.com/post/142756435157/during Image sources: comedian comedian star, it turns out, The The - trip and is a huge pasta fan. - to Parks and Recreation - italy Master of None - self - proclaimed; proclaimed; - a - 2 © 2017 The Hartman Group, Inc 3. Premium Cues 3. Premium Cues in Pasta 2. Health, Wellness, & Sustainability 1. Our Shifting Culture Food Today’s agenda 4. Thought 4. Thought the Pasta IndustryStarters for • • • Novelty Authenticity Freshness ImageSource: ilcorvopasta.com 3 © 2017 The Hartman Group, Inc Traditional U.S. Food Culture product = predictable uniformity cooking = chore brand interaction = transactional engagement = low 4 © 2017 The Hartman Group, Inc Modern U.S. Food Culture cooking cooking = discovery product = distinct engagement = consumer chooses how much brand interaction = playful, engaging 5 © 2017 The Hartman Group, Inc tradition Modern eating culture: fragmentation and upending of • How: • • Where: • • When: • • What: • Who: Less regularLess scratchcooking many possibilities Traditionalof groceryonly one Anywhereeverywhere and Eatingfly the on fluidly happens shopping eating and Planning, rarely eat that way but meals, Idealize 3 balanced drink Fewerto what eatand about rules decentralized cookingis and shopping Planning, 6 © 2017 The Hartman Group, Inc pasta is being challenged by a host of forces Though well - loved, “traditional” American • • • From top left: - and and “fettuccini” shirataki “spaghetti” House Foods tofu ricotta ravioli Kite Hill dairy New Seasons fresh pasta Italian CPG - free 7 © 2017 The Hartman Group, Inc From Reactive HEALTH … “Do as I say!” “Do as 8 © 2017 The Hartman Group, Inc … to “Knowthyself” Internally validated Fun Fun and enjoyment Balanced Balanced energy Common Common sense Self Preventative Preventative Proactive Integrated Holistic Holistic - assessed WELLNESS 9 © 2017 The Hartman Group, Inc Gluten - free reflects the trend of personalized eating http://glutenfreehomemaker.com/pizza Image Sources: Image http://pinchofyum.com/healthy Sources: mexican - casserole - roasted - corn - peppers; - casserole/ 10 - © 2017 The Hartman Group, Inc Gluten avoidance: It’s more about digestion than allergies Source: The Hartman 2014. Source: Hartman Study The Group. &Natural Syndicated Organic Gluten-free foods are organic Someone inmy family as a… Someone inmy family has… I have a glutensensitivity I have Celiacdisease Some other reason AttentionDeficit… Healthier option Digestive Health Reasons forPurchasing Gluten Free Enjoythe Taste Skincondition Inflammation Dietcleanse Weight loss Asthma Trendy 4% 6% 6% 6% 7% 7% 8% 8% 8% 9% 9% 10% 13% 13% 19% Weight Mgt. 26% Inflammation Digestion Sensitivity Food Food Immunity Energy 11 © 2017 The Hartman Group, Inc The plateau of gluten free? Source: searchGoogle trends 2004 2008 2013 2017 gluten free vegetarian vegan 12 © 2017 The Hartman Group, Inc spiralized Futures of gluten free pasta: Alternative / ancient grains, Farro fettuccini and spaghetti vegetables Hungry Hungry Root’s Quinoa Quinoa elbow pasta vegetable dishes spiralized 13 I chose UMass over BU and UConn because of the food. I had confidence that I could eat well here. And compared to my sister and friends at other schools, I know we have good food.

Food … Customizable and Individualized for H&W 45% Millennials have tried/adopted a special diet (vs. 24% Boomers) 29% Millennials have food allergies/sensitivities (vs. 16% Boomers) © 2017 The Hartman Group, Inc run Sustainable alternatives: contains 80% wheat and 20% Bugsolutely’s cricket flour cricket pasta Fringe trends that have legs to Noodlers Minneapolis at Largeoffers various types of kernza - based Dumpling & Strand: pasta formats 15 © 2017 The Hartman Group, Inc in modern U.S. food culture Freshness is the strongest marker of quality to consumers Image Source: Image Source: http://www.davesfreshpasta.com/fresh pasta - and - ravioli.html 16 - © 2017 The Hartman Group, Inc Fresh & real are key in messaging food quality • • • • • • (fordairy) hormone Antibiotic and Organic Non Short/cleanlist caramelized) language(e.g., Culinary type/variety Specific is in WHAT - GMO it? - free • • • • • paste pack/no Fresh welfare Humane/animal Organic practices labor Responsible methods farming Sustainable was it made? HOW • • narrative production story/ Origin Farmerstory made it? made WHO • • didit come whereharvested Produced Gilroy,CA) garlic from(e.g., Local specificity WHERE near from? • • • • • • • is it packaged? vs. dry vs. Refrigerated design Distinctive Use Packed Higher imagery Appealing ingredients Visible - HOW by dateby - price on dateon 17 © 2017 The Hartman Group, Inc Freshness signs cue quality

Fresh signs include … Qualityexpectations pursuit of … Consumers are in

Novelty&Distinction Authenticity Experience Health &Wellness

Cultural Cultural trends 18 © 2017 The Hartman Group, Inc Dried Pasta Chilled Pasta Sub Chilled pasta is growing at a very healthy rate Source: Instant Frozen Chilled Noodles - category Noodles Euromonitor (2017), Hartman Analysis Hartman (2017), Sales Sales of Pasta and Noodles: Growth 2011 0.5% 21.8% 6.1% 1.2% 28.5% 2011 - 16 total growth 0.1% 4.0% 1.2% 0.2% 5.1% 2011 - 2016 - 2016 CAGR 19 © 2017 The Hartman Group, Inc marker for pasta sauces Freshness perhaps applies even more strongly as a quality Italianprovenance added sugar, added extra Fresh ingredients, ingredients,puree and extract and (both of tomatoes, no cue processed),cue virginolive oil added sugar, added Dehydrated canolaoil 20 © 2017 The Hartman Group, Inc Fresh pasta offers opportunities for exploration • • • Premium Pasta Pillars: Novelty Authenticity Freshness 21 © 2017 The Hartman Group, Inc pasta, and Italian cooking more generally Authenticity has become a key driver of current trends in • • • • • • • • • communicated through: attribute Authenticityis a High quality ingredients Locality/ Refrigeration/freshness Tomato variety Traditional flavorswith a twist Clean ingredient labels Narrative Culinary distinction Premium packaging thatcan be regionality symbolic 22 © 2017 The Hartman Group, Inc to a consumer desire for authenticity Returning back to Italy: Contemporary Italian food speaks Traditional American Italian Food Contemporary Italian Food, Made in America 23 © 2017 The Hartman Group, Inc cue authenticity Being grounded in the local and referencing a locale Image source: ilcorvopasta.com The menu The menu explains this as aSicilian dish references a specific locale beyond “Italy” — Made Made locally in Seattle, sourced with local ingredients fromWestern Washington — both 24 © 2017 The Hartman Group, Inc adventures, especially through formats Consumers are breaking from tradition with novel culinary Black Black Bean Noodle with with Pesto and Grilled Noodle Salad with with Yellow Squash and Eggplant Zucchini Beef Bean Bean Spaghetti Mexican Black - Broccoli 4 - Ingredient Creamy Vodka Creamy Kale, Tomato and Red Curry Spaghetti Steak “Pasta” Spiralized Zucchini With Tomatoes, Artichokes, Olives, and Feta 25 © 2017 The Hartman Group, Inc flavors liven up the category for Italian cooking More than marinara: New twists on familiar pasta sauce 26 © 2017 The Hartman Group, Inc People are more often appreciating pasta in its own right ImageSources: fxcuisine.com; books.google.com 27 © 2017 The Hartman Group, Inc Thought starters for the pasta industry     global novelty? speak toboththat Old World authenticityand New World or How can your leverage rich brandbetterculinary traditions dinner? some are inroads to explore around eating occasions beyond With consumers scratch cooking what than before, less ever nutrientfoods dense are that sustainably farmed and made? conscious consumers who increasingly free demand How can your productsspeak more to healthwellness and quality?Long term? for your brand toexplore around convenience AND higher opportunities processed less theneartermfresher, Whatare - from, from, 28 © 2017 The Hartman Group, Inc TEL (425) TEL FAX452 0818 9092 (425) 452 RICHARDS3150 ROAD, STE 200 BELLEVUE, WA 98005 THE HARTMAN GROUP, INC needle for our clients. To learn more about how The Hartman Group stays sharply unique perspectives on the underlying motivations and behaviors that move the consumer and shopper behavior. Since The 1989, Hartman Group has provided customized customized research and consulting to understand the subtle complexities of The Hartman Group, located Bellevue,in Washington, blends leading focused on how consumers live, shop and use brands and products, visit: Sign Sign up for our consumer insights briefing: www.hartman ABOUT THE HARTMAN GROUP www.hartman - group.com/hartbeat - group.com - edge 29