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Plant-Based Foods Trends & Insights

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Plant-Based Foods Trends & Insights HAIN-CELESTIAL CANADA Plant-Based Foods Trends & Insights June 2019 Credentials • Pioneer in Plant-Based foods – Yves Veggie Cuisine founded in 1985, Acquired by Hain in 2001 • #1 Brand in the Canadian Meat Alternative market • Highest Brand awareness in the Canadian Meat Alternative market • Highest household penetration for a Meat Free brand in Canada • Voted by consumers as the Most Trusted Vegan Brand in Canada past 2 years • Linda McCartney #2 Meat Free Brand in UK • Dream Brand globally in Non Dairy Beverage Source: Nielsen MarketTrack National GB+DR+MM, L52W Dec 08th, 2018 Definition Of Plant-Based Foods • Plant-Based Foods are defined as plant based alternatives to animal products – meat and seafood alternatives, ingredient alternatives, egg substitutes and dairy alternatives • It does not include products that are inherently plant based such as single ingredient vegetables, nuts etc. Plant-Based Alternatives Are Expanding Rapidly Grew +20% in 2018 overall in the US Grew +11 in 2018 overall in Canada Category Dollars Growth Meat Alternative $92M +27% Tofu $42M +14% Non-Dairy Cheese $12M +14% Non-Dairy Beverages $266M +5% GRAND TOTAL $412M +11% Canada Index to US using 10:1 rule • Total Plant-Based Category 124 index • Plant-Based Milk 162 index • Plant-Based Meat 137 index • Plant-Based Cheese 100 index Source Nielsen 52 weeks end 12/08/18 Source: Nielsen 52 Weeks End 06/2018, PBFA Commissioned data SPINS 52 Weeks End 07/15/2018; Projected using Plant Based Growth 2014-2017 Meat Alternatives Formats ➢ In Canada, Refrigerated Meat Alternatives are more highly developed. Canada Meat Alternatives, $M $31.6 $59.6 Refrigerated Frozen UK, Meat Alternatives, £M US Meat Alternatives, $M $200.0 £244.0 £382.0 $600.0 Refrigerated Frozen Refrigerated Frozen Source: Nielsen MarketTrack, N`ational GB+DR+MM, 52 weeks ending Dec 08th, 2018 Kantar WPO, 30.12.18 Meat Alternative category has accelerated growth and consumer interest Consumption $M $120 $100 $96.7 +27% $80 +15% $76.0 +15% $66.2 +10% $57.6 $60 $51.9 $52.5 $40 $20 $0 2014 2015 2016 2017 2018 2019 L52W Source: Nielsen - Canada The Movement Has Staying Power Over Half Of Canadians Are Willing To The Rise Of The Flexitarian Reduce Meat Consumption How willing would you be to consider reducing your meat consumption sometime in the future? 2% Have a Vegan lifestyle Extremely 12% willing 51% Have a Vegetarian lifestyle Somewhat 39% willing 6% Neither willing nor 24% Have a Flexitarian lifestyle unwilling 10% Somewhat 12% unwilling Canada’s 2019 Food Guide Not at all 12% overhaul will continue to create willing interest in plant-based foods Source: Dalhousie University Protein Wars 2018 study Household penetration has grown but still Behind UK, the leading market Total Panel Total Fresh Frozen MA MA MA 03/05/17 - 03/04/18 - 14.1 10.4 7.8 03/03/18 03/02/19 TL MEAT ALTERNATIVES 73.1 60.7 46.2 % Eq Volume Penetration 12.0 14.1 5.3 12.6 Trips per Buyer 5.3 5.4 Average Elapsed 29 28 Days Source: The Nielsen Company, Homescan , National,52 Weeks ending March 2, 2019 vs YA The Meat Alternative Consumer Meat Alternative users span a range of consumers Vegans: Vegetarian: Pescatarian: Flexitarian: Meat Meat Eater: a diet abstaining from a diet abstaining from a diet abstaining from a diet that is largely a diet which includes the use of any animal the consumption of the consumption of meat plant-based with the Reducer: meat and fish products meat and fish occasional inclusion of a diet which is actively meat (or fish) seeking to reduce meat consumption These groups are not linear but fluid: consumers will move between them. Groups contain consumers from all demographics and drivers: health, ethics – environment, ethics – animals, taste / love of vegetarian food. The Primary Consumers Are Younger, Multicultural & Urban Who is consuming Meat Alternatives? Overindexed to Asians, Under 35 & Urban 50% 71% Chinese South Asian 50% Under 35 50% 48% Toronto B.C. Source: Nielsen Panelviews survey, March 2017 - Canada Place Logo Here Health, Nutrition & Environmental Concerns Are Key Motivators ➢ Key factors for following a plant based diet are driven by health, nutrition, economics & environmental concerns Source: Nielsen Panelviews Survey, March 2017 (Canada) A closer look at Health drivers Associated Benefits: • Weight loss • Lower risk of type 2 diabetes • Lower blood pressure • Lower risk of heart disease • Lower cholesterol • Improved vision • Healthier skin • Longer life Source: US News – 7 Reasons to Choose a Plant Based Diet; JAMA Eating More Plant Protein Associated with Lower Risk of Death 2016 A closer look at Sustainability drivers Associated Benefits: • Fewer greenhouse gas emissions • Less freshwater consumption • Fraction of the land required for animal production Source: World Resources Institute April 2016 Plant-Based Product Comparisons There are a variety of reasons to choose Meat Alternatives. Protein is key motivator. Not All Protein Is Created Equal Your body needs 9 essential amino acids “COMPLETE” Protein Q PROTEIN SOURCES Quality Score Eggs 1.0 INCLUDES U all essential Milk 1.0 amino acids A Soy 0.99 L Beef 0.92 I “INCOMPLETE” Protein PROTEIN SOURCES Quality Score T Chickpea 0.71 MISSING essential amino Pea 0.68 acids Y Wheat 0.40 Almonds 0.39 Comparison of Meat to Meat Alternatives in Retail Nutrition Beyond Yves Good Beef Burger* (scaled to 100 g) Meat Burger Calories 259 240 132 Fat 22 17.7 2.9 Saturated Fat 9 4.4 0.3 Cholesterol 62 0 0 Carb 0 4.4 9.6 Fiber 0 2.6 3.4 Sodium 332 336 425 Protein 15 17.7 17 *PC Thick and Juicy Beef Burger Comparison of Meat Alternatives in Food Service A&W A&W Nutrition Teen Beyond (both 230 g items) Burger Burger Calories 500 500 Fat 26 29 Saturated Fat 11 5 Sodium 910 1110 Protein 25 22 Consumers are looking for simpler ingredient lists Nutrition Impossible Burger Yves Kale & Root Vegetable Patties Water, Soy Protein Concentrate, Kale, onions, brown rice, canola oil, Coconut Oil, Sunflower Oil, Natural carrots, potatoes, chickpea flour, Flavors, 2% or less of: Potato Protein, flaxseed, salt, sprouted grain blend Methylcellulose, Yeast Extract, (buckwheat, millet, quinoa and chia), Cultured Dextrose, Food Starch spices, natural flavour, yeast extract. Modified, Soy Leghemoglobin, Salt, Ingredients Soy Protein Isolate, Mixed Tocopherols (Vitamin E), Zinc Gluconate, Thiamine Hydrochloride (Vitamin B1), Sodium Ascorbate (Vitamin C), Niacin, Pyridoxine Hydrochloride (Vitamin B6), Riboflavin (Vitamin B2), Vitamin B12. Consumers will do cost comparisons Beyond Meat Lean Ground Yves Original Beefy Crumbles Beef Ground Round Cost (CDN) $7.37-$8.71 $7.00 $3.99 340 g = 1 lb (454 g) raw Weight 284 g 500 g beef equiv. Cost/100 g $2.60-$3.06 $1.40 $0.88 Beyond Meat Yves Good Beef Burger* Burgers Burger Cost (CDN) $7.49-$7.99 $12.99 $5.29 Weight 226 g (2 patties) 720 g (6 patties) 300 g (4 patties) Cost/100 g $3.31-$3.54 $1.80 $1.76 Schneider's Country Naturals Beef Burger @ LCL Pricing based on retail audit at Sobey’s May 1, 2019 Plant-Based Protein Merchandising The value of the Meat Alternative buyer The Meat Alternatives buyer is an important consumer as they bring in more dollars than the Average Shopper Source: SPINS 52 WE 12-31-17 Total US – All Outlets – Plant Based Total Basket Size – In Basket Dollars per Trip; SPINS Plant Based Growth Story July 2018 Where should the refrigerated Meat Alternative category be located? Top items most frequently found in baskets containing Yves Meat Alternatives: 1. Fresh Produce 2. Legumes 3. Other Meat & Dairy Alternatives 4. Vegetable Broth 5. Vegan Margarine Vegans and Vegetarians are the Heavy Users and drivers for category volume MEDIUM LIGHT USERS HEAVY USERS USERS 03/04/18 - 03/04/18 - 03/04/18 - 03/02/19 03/02/19 03/02/19 TL MEAT ALTERNATIVES % Eq Volume 4.9 21.3 73.7 Trips per Buyer 1.2 3.3 18.0 Average Elapsed 84 56 19 Days Flexitarian OPPORTUNITY CORE Source: The Nielsen Company, Homescan , National,52 Weeks ending March 2, 2019 vs YA Place Logo Here Help Flexitarians find the Meat Alternatives UK Meat Free Merchandising and Signage Opportunity to test Dual Placement at shelf or in Flyers Sobey’s Plant-Based Destinations Maximize Engagement Global Merchandising Strategies ➢ US Kroger Live Naturally Signage ➢ UK Sainsbury “Veganuary” End Cap ✓ In the US & UK, sets contain plant-based Meat & Dairy Alternatives, Tofu and Spreads ✓ Dedicated sections create a sizeable footprint easier to locate in store ✓ Navigation call-outs & signage generate awareness & excitement PBFC 2019 MISSION: To support the regulatory and market interests of food companies in Canada that make plant-based foods. GOALS: To work in collaboration with To provide education government and industry on To manage the narrative for key government, a modernized regulatory about plant-based foods. industry partners environment that promotes and consumers on innovation and growth this growing sector. within plant-based foods. PBFC Members The diversity of our membership is crucial for the modernization of the industry’s regulatory environment. Plant-Based Foods of Canada (PBFC) is made up of companies engaged in creating the brightest future for plant-based foods..
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