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Kalsec Corporate Presentation Template W PRESENTATION FOR: FoodTech Summit & Expo Presented by: Jill McKeague Executive Director of Product Management Kalsec 2019 TECHNOLOGY ADOPTION CURVE Source: Roger’s Adoption Curve FOOD TREND ACCELERATION FACTORS Urbanization Technology Culture Television shows Recipe websites Experience from traveling abroad Online reading, newspapers, etc. Percent 18-34 35+ Source: Technomic, 2017; Kalsec 2018 FOOD ADOPTION CYCLE Maturing Establishing Emerging Developing Gastropubs Fast-casual Casual independents Casual chains Family restaurants Specialty grocery QSR Convenience stores Fine dining Gourmet food stores Supermarkets Dollar stores Ethnic independents Food Shows and documentaries Mass Merchandisers Drug stores Food Bloggers Meal kits Pinterest Recipe sharing Travel abroad experiences Instagram Cookbooks Coupons Source: Datassential, 2016; Kalsec 2018 Beer Flavors Asian Flavors Italian Flavors Jalapeno Flavors In Stores: In Stores: In Stores: In Stores: La Borracha Con Yakimeshi con Pollo Salsa de Tomate Para Botanas de Quinoa y Cerveza Tailandes: Thai Pastas Tradicional Semillas de Chia Sabor Chicken Jalapeno y Limon 2018 NPI’s: 6 2018 NPI’s: 43 2018 NPI’s: 183 2018 NPI’s: 310 Source: Datassential, 2016; Kalsec, 2018; Innova, 2019 FOOD ADOPTION CYCLE – CURRENT TRENDING FLAVORS Maturing Establishing Emerging Developing Habanero Chipotle Cardamom Southwest Chili Lime Lemon Pepper Togarashi Peanut Sauce Smoked Jalapeno Berbere Harissa Teriyaki Sriracha Ancho Hops / Beer Flavors Mediterranean Horseradish Shakshouka Kimchi Lemongrass Pesto Za’atar Masala Ginger Maple Moroccan Thai Curry Buffalo Sauerkraut Source: Datassential, 2016; Kalsec, 2018 CONSUMER PERSONAS Seeks new & unique Seeks related & familiar Seeks known/tried & true Low risk aversion Somewhat risk averse Picky, basic palate Sense of adventure Likes “classic with a twist” Risk-averse No cost concern products Very late to trial of new Globally engaged Follows trends trends Experience Oriented Routine oriented Influencers/Trendsetters Source: Kalsec, 2018 Seeks known/tried & true Picky, basic palate Risk-averse Very late to trial of new trends Routine oriented Source: Kalsec, 2018; Innova, 2019 Seeks related & familiar Somewhat risk averse Likes “classic with a twist” products Follows trends Source: Kalsec, 2018; Innova, 2019 SeeksSeeks newnew && uniqueunique LowLow riskrisk aversionaversion SenseSense ofof adventureadventure NoNo costcost concernconcern GloballyGlobally engagedengaged ExperienceExperience OrientedOriented Influencers/TrendsettersInfluencers/Trendsetters Source: Kalsec, 2018; Innova, 2019 Global Hot & Spicy Research 2019 KALSEC HOT AND SPICY EBOOK RESEARCH METHODOLOGY January 2019 6,000 consumers 12 countries Americas: Europe: Asia-Pacific: Brazil Germany Australia Canada France China Mexico Italy India United States United Kingdom Thailand PREFERRED HOT AND SPICY CUISINES 80 70 70 61 60 57 50 40 40 36 33 Percent 30 20 10 0 Mexican Chinese Americas Europe Asia-Pacific Source: Kalsec 2019 TOP SPICY CUISINES In which types of cuisine do you enjoy spicy food? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Mexican Latin American Chinese American Italian Thai Source: Kalsec 2019 HOT & SPICY: MEXICO FAST FACTS (MEXICO COUNTRY DATA) Roughly 2/3 of Mexican consumers say they are willing to try any food and/or flavor Source: Kalsec 2019 CONSUMER PREFERENCES 71% 77% of Mexican of Mexican consumers consumers choose spicy choose spicy options when options when cooking at home dining out Source: Kalsec 2019 MEXICAN CONSUMER TRENDS 98% Nearly all Mexican 2/3 of Mexican consumers say they are consumers enjoy some eating spicier food more level of heat or spiciness often now than they were in their food one year ago Source: Kalsec 2019 Source: Kalsec 2019 PREFER HOT OR EXTREMELY HOT 22% 29% 38% 64% Brazil Canada United States Mexico Source: Kalsec 2019 MEXICO CONSUMER HEAT PREFERENCES Extremely Hot 22% Hot 42% Medium 20% Mild 14% No Heat 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Source: Kalsec 2019 TOP APPLICATIONS Which types of foods would you be most likely to try with a spicy option? 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Snacks Meat/Poultry/Fish Sauces Soup Condiments Source: Kalsec 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments Healthy For kids Extreme heat Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments Clean label Global flavors Premium/gourmet Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments Healthy convenience On the go Indulgent convenience Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments Healthy For kids Indulgence Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments Refreshing Soothing Healthy Source: Kalsec 2019; Innova 2019 LIKELINESS TO TRY SPICY FOODS BY CATEGORY 88% 86% 82% 51% 50% Spicy Snacks Spicy Sauces/ Spicy Entrees Spicy Desserts Spicy Beverages Dips/Condiments Healthy Clean label Healthy Healthy Refreshing For kids Global flavors On the go For kids Soothing Extreme heat Premium/gourmet Indulgence Indulgence Healthy Source: Kalsec 2019; Innova 2019 TOP FLAVOR COMBINATIONS Which of the following spicy flavor combinations are you interested in trying? 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: Kalsec 2019 INTEREST & TRIAL OF SPECIALTY PEPPERS 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Ghost Szechuan Green Serrano Jalapeno Chipotle Habanero Cayenne Pasilla Ancho Hatch Mexico Global Source: Kalsec 2019 PEPPER FAMILIARITY Ancho Ghost Spicy + tangy Chipotle Green Hatch Spicy + citrus Habanero Szechuan Jalapeno Serrano Source: Kalsec 2019 FOCUS ON: CLASSIC FLAVORS IN MEXICO Jalapeño Chipotle Extra Spicy Habanero Source: Innova 2019 FOCUS ON: HATCH GREEN CHILE Source: Innova 2019 FOCUS ON: HATCH GREEN CHILE Source: Innova 2019 FOCUS ON: GHOST PEPPER Source: Innova 2019 FOCUS ON: SZECHUAN Szechuan Mala Flavored Mala Hot Chicken Flavor Ramen Stir Roasted Wing Seasoning, China Noodle, Malaysia Coated Peanuts with Mala Spicy Hot Pot Flavor, Singapore Szechuan Flavored Sausage Seasoning, China Szechuan Tomato Stir Fry Sauce, Spicy Pork Snack, China Malaysia Source: Innova 2019 FOCUS ON: SZECHUAN Source: KFC Malaysia 2019 FOCUS ON: SZECHUAN Source: Panda Express 2019 What will your next chili be? Kalsec 2019 KALSEC HEAT PORTFOLIO A unique combination of pungent ingredients and carriers that deliver heat and sensory attributes targeted for a specific time and palate location based on individual applications Custom systems to meet your specific needs Timing of heat Intensity Pungent perception Location on tongue HEATSYNC® SYSTEM EXPRESSIONS Combinations of: F = Fast or quick heat M = Mixed or slower heat L = Lingering or tingling sensation N = Nasal sensation Heat elements plus: savory sour sweet tangy Intense sensory experience Current and emerging flavor trends Extracted in the U.S. Meet consumer preferences for complex and specific sources of pungency Option to indicate pepper type on product label Ideal for use in seasonings, prepared meals, sauces, soups, dressings, marinade, meat and poultry products KALSEC SPECIALTY PEPPER EXTRACTS KALSEC SPECIALTY PEPPER EXTRACTS Szechuan Standardized on sanshools providing a unique numbing, Lemony citrus and herbaceous undertones (sesh-wan) tingling sensation What will your next snack mix be? Visit Kalsec at booth #1916 to learn more about our heat management portfolio and to create your own snack mix. Kalsec 2019.
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