2018-State-Of-The-Snack-Food-Ind.Pdf

How America Eats

State of the Snack Food Industry

Sally Lyons Wyatt EVP & Practice Leader

March 28, 2018 Today’s Discussion

1 2 3 4

Macrosnack 2017 2018+ Snack Leveraging trends definition evolution trends growth drivers for success

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 2 © 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 3 © 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 4 For years our 1.9% snacking universe has had Core and 1.3% 1.3% 1.3% Extended categories – Core outpaced Extended -0.3% yet again

Total Macro Core Extended Total Store F&B Snacks Snacking Snacking

Wellness Permissible True Treats Indulgence Indulgence

Wellness Permissible True Treats Indulgence Indulgence Inherently Products consumers “Fully loaded” Confections healthier feel are more traditional categories &/or permissible because nutrition claims they have less of or added benefits to their indulgent favorites

Wellness Permissible True Treats Indulgence Indulgence

Snk and Granola Bars (GMO+ Claims) All Other Snk and Granola Bars ( w/o GMO+ Claims)

$ SHARE & % $ CHG

Treat

(+1.8%) True Indulgence

(+1.9%) Permissible

(+2.5) Wellness

(-0.4%)

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Macrosnack 2017 2018+ Snack Leveraging trends definition evolution trends growth drivers for success

Chocolate Candy Cookies Potato Chips Ice Cream Non-Choc. 2.3% 1.8% 2.1% 0.6% 2.2% 0.0% 3.2% 1.8% 3.1% 1.2%

Tortilla Chips Yogurt Crackers Natural Cheese Snack Nuts 2.5% 1.0% -1.7% -8.6% -0.3% -1.5% -1.3% -2.1% 0.7% -1.0%

$ % Chg Unit % Chg © 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 11 Source: IRI TSV_52 Weeks Ending 12/31/17 When we look at top category segments we see some categories where claims are driving massive growth while others decline

Ice Cream Cookies Tortilla Chips Fat+High Protein+Organic Claims Energy+ Claims 100% Natural+ Claims 40% 17% 4%

All Other All Other All Other -1.7% 1% 2% Crackers Yogurt Natural Cheese Other Grain+ Claims Fat+ Claims Fat+ Claims -1% -6% -11%

All Other All Other All Other 0% 8% -1%

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 12 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg Wide variety of needs being met when looking at raw dollar growth: satiety, treating, protein, transparency and accompaniment

AO Other Salted Chocolate Ice Cream Non-Chocolate AO Cheese (Fat+Protein+Organic+ Claims) Cappuccino/ Snacks Snacks* Candy Candy (w/o Fat+ Claims) (w/o GF+Non GMO+Low Iced Coffee Fat+ Claims) (w/o Fat+ claims)

AO Yogurt AO Potato Chips Fz. Pizza AO Fz. App & AO Dried Meat Rfg. App & (w/o Fat+ Claims) (100% Natural+ Claims) Snk Rolls Snk Rolls - Sushi (w/o High Fiber+Fat+ claims) Snacks (w/o Protein+Natural+ claims) (Without No Fat+ Claims)

*Excludes nuts © 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 13 Source: IRI TSV_52 Weeks Ending 12/31/17; raw $ growth Similar needs but different set of category segments when looking at 2017 vs 2016 ($ % Chg.)

Refrigerated Ice Milk/Fz Snack/Granola Cheese Snacks Fz Cookies Meat/Cheese/ Dairy Desserts Bars (Fat+ Claims) (Fat+GF+Natural+ claims) (GMO+ claims) Cracker/Dessert

Ice Cream AO Rfg. Dips Dry Fruit Snacks Cookies (Fat+Protein+Organic+ claims) (Fat+Natural+Calories/Serving+ (GF+Organic+Non GMO+ Claims) (Energy+ Claims) Appetizers/ claims) Snack Rolls (w/o Sushi)

Innovation Distribution Penetration Quality of merchandising

+24% + .2 to 13.6 %HH Pen

One point of Household penetration equates to 1.23 million U.S. households

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 15 Source: Select top growth products from $ % Chg and absolute growth change products – 52 Weeks ending 12-31-17 The growth brands gained the distribution predominantly in these channels

Food Mass Drug

Dollar Internet

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 16 Source: Based on Total Distribution point gain for select top growth products from $ % Chg and absolute growth change products – 52 Weeks ending 12-31-17 Today’s Discussion 3

2018+ Snack growth drivers

1 Lifestyle2 ingredients are winning3 4 Channel shake up Macrosnack Private2017 Label capturing2018+ attention Snack Leveraging trends definition evolution trends growth drivers for success For the fun of it Niche evolution Fragmenting flavors The next big category? Emerging trends impacting the industry

2018+ Snack growth drivers

Fresh Veg. Fresh Fruit Salty Snacks Snack Nuts Salty Snacks Crackers Fresh Fruit Yogurt

Energy Bar Bakery Salty Snacks Crackers Crackers Choco. Candy Cookies Snacks

Dairy/Yogurt Dried Meat Based Bev. Snacks Choco. Candy Fresh Fruit

75% 58% 57% 44% want snacks that want snacks that want all natural want snacks are guaranteed contain vitamins snacks or made made with fresh and minerals with natural whole grains ingredients

+3 pts. vs. 2016 +1 pt. vs. 2016 +1 pt. vs. 2016 NC

Omega DHA/ EPA Dairy Claims/Added

Dairy - Non Dairy Gluten Free

GMO - Non GMO Project Verified/ Vegan/Vegetarian No/ No Added/ Not Treated With

GMO - Non GMO Project Verified/ No/ No Protein - High/Source/More Added/ Not Treated With

Natural Sweetener Sugar - Unsweetened/Sweetened

2017 $ % Chg vs YAGO 2017 Absolute Growth vs 2016

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 21 Source: IRI TSV_52 Weeks Ending 12/31/17 Functional claims were present on top growth categories over time and still growing, while dietary needs had largest year-over-year increases

Dairy - Added Immune Defense

Kosher Prebiotic/Probiotic

Gluten Free Protein - High/Source/More

Antibiotic - No/No Added/Not Treated Protein - High/Source/More With

GMO - Non GMO Project 100% Natural Verified/No/No Added/Not Treated With

2017 absolute growth vs 2016 3-Year CAGR

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 22 Source: IRI TSV_52 Weeks Ending 12/31/17 Organic snacks grew 9% in 2017, and social sentiment was positive - Word clouds share numerous common themes across claims

57M earned social mentions

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 23 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO Source: IRI Social Advantage – Calendar Year 2017; trended charts show extra data from Oct-2016 in IRI Weeks (Mon-Sun)

Based on social activity, certified organic shares only a fraction of organic claim as a whole - consumers may assume that any organic claim must be officially certified 1.3M of earned social mentions

+19% 3-year CAGR

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 24 Source: IRI TSV_52 Weeks Ending 12/31/17 Source: IRI Social Advantage – Calendar Year 2017; trended charts show extra data from Oct-2016 in IRI Weeks (Mon-Sun)

We are seeing growth in current plant-based snacks and innovation to assist consumers with their lifestyle goals

Root vegetable Probiotics, plant- Packed with 10 grams of filling, plant- cassava - combined based based protein from high quality with natural, simple adaptogens and ingredients, like soybeans and ingredients that are herbs - free from cassava - Soy Protein, Tapioca, Soy gluten-free, non- whey, dairy, grain, Fiber, cassava, Topical Seasoning, G.M.O. and paleo- gluten and soy Sunflower Oil friendly

Contain at least 20 grams of Plant-based ingredients and nuts Pumpkin seed bars featuring 8 Made with pea protein, sunflower and contain no artificial flavors, grams of plant-based protein dairy-free protein per bar with oil, organic cane sugar and live active colors, or sweeteners. Contains - ingredients, such as quinoa, clover only 1 gram of sugar. cultures, the yogurt alternatives are 10g plant-based (pea and rice) honey, ginger and turmeric. vegan, lactose-free, nut-free, soy- protein, 8g fiber, 10% DV Iron free, gluten-free and G.M.O.-free Planted for success...Not just for Vegans

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 25 Vegan snacks are driving significant growth with overall Vegan social sentiments total volume was 69M, were positive (90%), and trending upwards

+36% Vegan Snacks

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 26 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO Source: IRI Social Advantage – Calendar Year 2017; trended charts show extra data from Oct-2016 in IRI Weeks (Mon-Sun)

Paleo-friendly plant-based options are rising in popularity as well Coconut +16.4%

Coconut flour tortilla chips that are USDA U.S.D.A.-certified organic, Fair Trade Certified, certified organic, Non-GMO Project verified, kosher, Carbon Neutral Certified, Non-GMO Project gluten-free, grain-free, dairy-free and refined sugar Verified and certified gluten-free snacks combine free. No artificial colors, flavors or preservatives and ribbons of toasted sustainably harvested coconut are vegan and paleo friendly. with Alter Eco’s signature 70% Ecuadorian chocolate and French sea salt. Are vegan, paleo- friendly.

Nut and seed butter, made with Rainforest Individually-wrapped bites are paleo friendly, Alliance Fair-Trade certified and paleo-approved vegan, kosher and gluten-free. chocolate, 100% USDA Organic and Non GMO Project verified cashews, almonds, Brazil nuts, flax seeds, chia seeds, hazelnuts and pumpkin seeds - sourced from paleo-approved coconuts.

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 27 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO Paleo social sentiment was positive (91%) with weekly volume increased rapidly around March, 2017; Word clouds share numerous common themes across claims

Source: IRI Social Advantage – Calendar Year 2017; trended charts show extra data from Oct-2016 in IRI Weeks (Mon-Sun)

Variety and convenience have “pack-ed” products like these with growth Rfg Meat/Cheese/Cracker/Dessert Snack +45%

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 29 Source: IRI 2018 Snacking Survey; IRI TSV_Week ending 12/31/17: NOTE: not all items listed are within the Rfg Meat/cheese/Cracker/Dessert Snack definition Bars continue to attract and retain consumers delivering on many important ingredients and flavors

Nutritional/intrinsic health value bars +1.8% Breakfast/cereal/snack bars +0.9% All other snack/granola bars +22.6%

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 30 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO Probiotic craze driving 1% overall snacking growth, however huge growth in some category segments Nutritional/intrinsic health value bars +53.1% Nutritional snack/trail mixes +48.6% Dried Fruit +120.5%

40% Of consumers want snacks that have ‘probiotics’ to help with digestion

(+3pts vs. 2016)

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 31 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO//2018 IRI Snacking Survey 50% of consumers state they will pay more for snacks that are healthier

+5 points vs 2016

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 32 Source: IRI 2018 Snacking Survey Consumers are now seeing egg-cellent snacking options and buying more this year Hard Boiled Eggs +6%

Contains three Contains two hard-boiled Intended for the protein-rich foods eggs and two slices of convenience and to deliver 18 to 21 turkey bacon vending channels grams of protein - gluten-free with 16 per pack. grams of protein

Hard-cooked egg with cheese and either trail mix or chocolate- Each single-serve coated almonds - 25 60% 65% pack contains two peeled, ready-to-eat to 32 grams of Want fresh, Want an organic, free-range protein from a variety not processed energy boost of sources eggs (+3pts vs. 2016) (+5pts vs. 2016)

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 33 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO// 2018 IRI Snacking Survey Some consumers are still opting for other fruit forms vs fresh Other Dried Fruit +2.3%

53% Want a serving of fruits and vegetables (+4 pts vs. 2016)

Of consumers feel that calories/fat/sugar information on the package is important

2018+ Snack growth drivers

Grocery Mass C-Store Club

1.0% 3.3% 2.8% 0.3%

Online Drug Dollar All Other

27.8% -1.8% 2.8% 5.9%

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 37 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO Mass, Online and Convenience are driving more dollar sales growth than their fair share

40% DOLLAR SHARE & SHARE OF GROWTH

21%

15%

10% 6% 4% 2% 2%

GroceryX Mass Conv Club Other Drug Online Dollar 17% 30% 18% 1% 13% -3% 21% 3% SHARE OF GROWTH SHARE OF GROWTH SHARE OF GROWTH SHARE OF GROWTH SHARE OF GROWTH SHARE OF GROWTH SHARE OF GROWTH SHARE OF GROWTH

81% 58% 44% 41% 37%

Dry Fruit Snacks Salty Snacks Non-Choc. Candy Rfg Dips Gum

31% 31% 27% 27% 19%

Popcorn Dried Meat Snacks Snack Nuts Choco. Candy Snack/Granola Bars

However, online does not have Online does not have a “lock” on snacking growth. a “lock” on snacking In fact 39% of consumers don’t growth. In fact 39% think to purchase snacks online of consumers don’t think to purchase snacks online

22% 21% 16%

Too expensive Concerned Concerned about crushed about the products products melting

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 40 Source: IRI 2018 Snacking Survey Channel preferences require targeted messaging and assortment for increased appeal across generations

Younger Millennial Older Millennial Gen X Boomer Young Boomer Old Seniors Grocery ● ● Mass ● ● ● ● C-Store ● ● ● Club ● ● ● Online ● ● ● Drug ● ● ● Dollar ● ●

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 41 Source: IRI Consumer Network_52 Weeks ending 12-31-17 Collaboration between retailers and manufacturers should leverage the checkout and/or shopper loyalty cards to continue driving snack growth

50% 38% of consumers say Shopper of consumers say the snacks loyalty card discounts found at the checkout influence influence their snack choice their snack choice

(+2 pts. vs. 2016) (+8 pts. vs. 2016)

2018+ Snack growth drivers

+3 points vs 2016

Private Brands have evolved into brands and tiers...

-3.8 3% 15% ...and the core snack 25% mix tiers have -1.3 shifted to Premium and Organic 3.6

1.5 58%

Value Mainstream Premium Organic

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 46 IRI Market Advantage™, calendar years - 2013-2017; Total US – Grocery, PL items that are releasable by Retailer . Private Brands core snacks assortment growing faster than other brands, providing their shoppers more choices with goal of increasing differentiation to competition

TOTAL POINTS OF DISTRIBUTION IN US MULTI-OUTLET MARKET 6.2%

1.9%

National Brands Private Brands

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 47 IRI Market Advantage™, 2017 Core Snacks Categories Total US – Multi-Outlet . © 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 48 Retailers adding private brands fresh prepared snacks stations to Perimeter

2018+ Snack growth drivers

63%

For yourself as a treat

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 51 Source: IRI 2018 Snacking Survey Crossovers are all over the place! Categories, food service to retail, retail to food service 67% of snacks are Oreo Ice Cream Novelties FUN to eat (+5 pts vs 2016)

Oreo Brownie

Krispy Kreme Doughnuts and Hershey’s M&M’s Ice Ghirardelli Cookies Cream Novelties Baskin Robbins’ Reese’s 3-Pointer Entenmann’s Chocolate bar

Nutritional Snacks/Trail Mixes +1.6%

57% of consumers want snacks that can be eaten on the go

(+18pts vs. 2016)

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 53 Source: IRI 2018 Snacking Survey; IRI TSV_Week ending 12/31/17; NOTE: Veggie2Go and Dole items not in Trail Mix Total// 2018 IRI Snacking Survey Cookies are not your grandmother’s cookies – varieties cross the gamut of benefits Cookies +2% Cookies (Energy+ Claims) +17% AO Cookies (w/o Energy+ claims) +0.8%

Gluten-free, kosher and non-G.M.O. cookies are U.S.D.A.-certified organic and made with organic coconut, almond and walnut flours.

Sustainable Peruvian chocolate, cage-free eggs and hormone-free Vegan and dairy and contain no gluten-free with high-fructose corn syrup, 16 grams of bioengineered protein and 10 to ingredients or artificial 12 grams of fiber. colors or flavorings

2018+ Snack growth drivers

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 55 When we look at Niche product evolution we find that in some categories, niche is a significant growth driver... 9.5% 11% 2014 $ SHARE 2017 $ SHARE 4.4% $ % chg – Outpacing Mainstream By 2.4 Points 22% 31% 2014 $ SHARE 2017 $ SHARE 18.9% $ % chg – Outpacing Mainstream By 21.4 Points

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 56 Source: IRI TSV_52 Weeks Ending 12/31/17; Niche defined as <170 base price index to category ...similar for cookies and meat snacks... 13.2% 15.5% 2014 $ SHARE 2017 $ SHARE 7.5% $ % chg – Outpacing Mainstream By 6.4 Points 7.8% 10.9% 2014 $ SHARE 2017 $ SHARE +8.3% $ % chg – Outpacing Mainstream by 4.7 points

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 57 Source: IRI TSV_52 Weeks Ending 12/31/17; Niche defined as <170 base price index to category ....While in other categories these products are not as impactful ... 12.2% 12.6% 2014 $ SHARE 2017 $ SHARE 2.1% $ % chg – Not Outpacing Mainstream 6.9% 8.8% 2014 $ SHARE 2017 $ SHARE -0.1% $ % chg – Not Outpacing Mainstream

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 58 Source: IRI TSV_52 Weeks Ending 12/31/17; Niche defined as <170 base price index to category ...similar for niche potato chips as well 1.8% 2.8% 2014 $ SHARE 2017 $ SHARE 1.1% $ % chg – Not Outpacing Mainstream

We have found that Niche tends to be successful when ingredients, flavors and packaging are “premiumtized”

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 59 Source: IRI TSV_52 Weeks Ending 12/31/17; Niche defined as <170 base price index to category In addition, Niche continues to gain traction because of the channel and location expansion

Natural All

Channels Channels

FROM Special Main Locations Stocking Locations

2018+ Snack growth drivers

want a flavor they prefer 91% (+3 pts vs. 2016)

want exotic 34% flavors

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 62 Source: IRI 2018 Snacking Survey Seasonal confections represented 58% of confections growth and we see the fun flavors and seasonal assortments extending into snacking as well

Pumpkin +22%

Hot/Spicy

+14% +12% +7%

Vanilla Dutch Chocolate

+28% +14%

FROM Milk Chocolate Hazelnut +13% +9%

Salted $12.4 M

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 66 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO The fragmentation is delivering with fun and exciting flavor combinations

Sour Very Berry Sour Rainbow Berries

+28% +70% TO

Tropical

FROM Wild Berry Tropical Wild Berry +7% +19%

Aronia Berry +23%

The flavor combinations build excitement across the snacking universe

4 Cheese Queso Cheese

+5% +20% TO

FROM 3 Cheese Parmesan +19% +177%

Cream Cheese Onion $15.3M

I love eating bacon-flavored 37% snacks

Bacon-flavored snacks are a good 38% way to satisfy my craving for bacon

© 2018 Information Resources Inc. (IRI). Confidential and Proprietary. 69 Source: IRI 2018 Snacking Survey Ensure you have the right messaging in your omni-channel approach because consumers use these tactics to gain information about a specific snack brand/product

59% 47% 31% 24% 21% Product Friends & Store Online Search Brand/Manufacturer Packaging Family Signs Engine Website

2018+ Snack growth drivers

Corn & Potato Potato & Wheat Onion Peas Corn Crisps Potato Crisps Multigrain

Rice & Corn Chickpeas Cauliflower Seaweed Vegetable Bean (incl. Crisps & Chips Black,Garbanzo,Lentil, etc.)

50%

Of consumers eat snacks that add excitement to their daily diet +19 pts vs 2016

HOT & SPICY BBQ SALT & TTL CHEESE GARLIC MAPLE +12% +4% VINEGAR +17% +3% +11 NEW+ ALMOND NEW+

FRUIT BLEND TERIYAKI CHILI/CHILE LIME +52% +35% +9% BACON $+95% ONION LEMON SALSA +25% +2% +34% +25% BEEF OTHER VEG COCONUT NEW+ +7% +47% NEW & GROWING = CRANBERRY, APPLE, BANANA, ORANGE

Copyright © 2018 Information© 2018 Information Resources, Resources Inc. (IRI). Inc. (IRI). Confidential Confidential and and proprietary. Proprietary. 76 Source: 2018 IRI Snacking Survey 56% Of consumers eat snacks that have convenient portion sizes +2 pts vs 2016

Copyright © 2016 Information© 2018 Information Resources, Resources Inc. (IRI). Inc. (IRI). Confidential Confidential and and proprietary. Proprietary. 7878 Source: IRI TSV_52 Weeks Ending 12/31/17; $ % Chg vs YAGO – w/I All Other Salted Snacks These type products are poised for more growth over the next few years

BEANS

+25%

ASSORTED/ CHICKPEAS VARIETY

+7% +35%

2018+ Snack growth drivers

Source: Zoe’s Kitchen

a collagen supplement company - Collagen Cookie Bar with 12 or 13 grams of protein per serving.

a nut and seed butter bar featuring grass-fed protein bars that contain “more collagen and cacao nibs, collagen than a cup of bone with 10 grams of protein broth,” according to the company

FLOWERS

Such as Lavender or Hibiscus

Grain Arancini

Each piece contains 40 Certified gluten-free, grain-free and milligrams of caffeine, the vegan snack bars are infused with equivalent of half of a cup of either cold brew coffee, black tea or coffee green tea and contain 70 mg of caffeine. The bars are U.S.D.A. certified organic, non-G.M.O. and kosher

70 mg of caffeine from Contains B vitamins and 80 mg of guarana seed and caffeine, features a liquid center added acetyl L-carnitine and is sweetened with xylitol.

Wella Bar Lebby Farmer’s Pantry Refrigerated wellness bars are Pulse-based and snacking Innovative snacking kits deliver up 61.3% over the prior year chocolate have sweet and on taste and texture variety protein appeal

Monitor these trends, they may bridge from foodservice to retail in the next few years

Chia Pudding Bowls Korean Flavors/Ingredients “Spirit Snacks”

Source: Jamba Juice Source: Bruegger’s Bagels Source: Starbucks

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Macrosnack 2017 2018+ Snack Leveraging trends definition evolution trends growth drivers for success

Continue to innovate for lifestyle changes across generations - Seasonal innovation & assortment are key for additional growth

Leverage packaging as your billboard communicating your differentiation and benefits

Channel strategies, unique positioning and assortments will win

Develop and/or enhance exciting flavor combinations that appeal to the US palate

Learn from social media “voices” for innovation and messaging

Leverage the learning with targeted messaging to deliver a better ROI

Remember - consumers like to be treated

Look to food service for emerging trend inspiration and potential collaboration

Apple Chips Pickles AO Appetizers/Snack Rolls (w/o Sushi) Fz HH Entrees Non Bkfast (GF+ Claims) Bagels and Bialys (GF+ Claims) Potato Chips (High Fiber + Low Fat+ Claims) AO BAGELS/BIALYS (w/o GF+ Claims) Fz Ice Cream and Ice Milk Desserts (100% Bfast Cereal and Snk Bars (Other Natural+ Claims) Pretzels (Fat+ Claims) AO Bfast Cereal and Snk Bars (w/o Other Nat+) Natural+ Claims) Breakfast Drink Mixes Refrigerated Meat/Cheese/Cracker/Dessert AO Canned/Bottled Fruit (w/o Non GMO+GF+Low Fz Jams Jellies and Preserves (100% Natural+ Sugar+Organic+ Claims) Claims) Canned/Bottled Fruit (Non GMO+GF+Low Sugar+Organic+ Claims) Relish AO Cappucino/Iced Coffee (w/o Fat+ Claims) Fz Novelties (100% Natural+ Claims) Cappucino/Iced Coffee (Fat+ Claims) RFG Appetizers/Snack Rolls - Sushi AO Cheese Snacks (w/o Fat+ Claims) Fz Pizza (100% Natural+ Claims) Cheese Snacks (Fat+ Claims) Rfg English Muffins (Multigrain+Fat+ Claims) AO Dried Meat Snacks (w/o Fat+ Claims) FZ Pretzels Chutney Rfg Flav Spreads (Fat+ Claims) AO Dry Fruit Snacks (w/o Gluten Free + Organic + Non FZ Yogurt/Tofu Cottage Cheese (Fat+ Claims) AO Rfg Flav Spreads (w/o Fat+ Claims) GMO+ Claims) Ice Cream (Low Fat+High Protein+Organic+ AO Cottage Cheese (w/o Fat+ Claims) AO Rfg Juc and Drk Smoothies (w/o Other Protein+ AO English Muffins (w/o GF+Multigrain+Calorie+ Claims) Claims) Crackers (Other Grain+ Claims) Claims) AO Granola Bars (w/o Natural+Organic+Non GMO+Grain+ Ice Milk and Fz Dairy Desserts (Low Cream Cheese and Spreads (Fat+ Claims) RFG Honey Claims) Fat+Gluten Free+Natural+ Claims) AO Cream Cheese and Spread (w/o Fat+ Claims) Rfg Juc and Drk Smoothies (Other Protein+ Claims) AO Jams Jellies and Preserves (w/o Organic+Low Ice Pop Novelty (Natural+Low Fat+ Claims) Dried Fruit RFG Marinated Vegetables/Fruit Sugar+Low Fat+ Claims) Muffins (Gluten Free+Low Fat+Natural+Grain+ Dried Meat Snacks (Fat+ Claims) Rfg Peanut Butter (100% Natural+ Claims) AO Luncheon Meats (w/o Natural+No Preservatives+ Claims) Dry Fruit Snacks (Gluten Free + Organic + Non GMO+ Claims) RFG Pickles Claims) Oth Salted Snack xNuts (Gluten Free+Non AO Nutri and Intri Hlth Vlu Bars (w/o Other Protein+ Claims) GMO+Low Fat+ Claims) English Muffins (GF+Multigrain+Calorie+ Claims) RFG Relishes/Appetizer Relish AO Peanut Butter (w/o Non GMO+Low Fat+Organic+Sugar+ Pork Rinds Fresh Eggs Rice Cakes/Popcorn Cakes Claims) Rfg Bagels and Bialys (Low Fat+Grain+ FZ Fruit RTE Cereal (Grain+ Claims) AO Pretzels (w/o Fat+ Claims) Claims) Granola Bars (Natural+Organic+Non GMO+Grain+ Claims) RTE Popcorn Savory (Fat+ Claims) AO Rfg English Muffins (w/o Multigrain+Fat+ Claims) Rfg Desserts (Low Sugar+Gluten Free + Jams Jellies and Honey (Organic+Low Sugar+Low Fat+ Claims) RTE Popcorn Sweet (Fat+ Claims) AO Rfg Peanut Butter (w/o 100% Natural+ Claims) Natural+ Claims) Kernel Popcorn (Organic+Natural+Home Grown+ Claims) Salsa AO RTE Cereal (w/o Grain+ Claims) Rfg Dips (Fat AO Kernel Popcorn (w/o Organic+Natural+Home Grown+ Claims) Snack Nuts AO Snack and Granola Bars (w/o GMO+ Claims) Claims+Natural+Calories/serving+ Claims) Luncheon Meats (Natural+No Preservatives+ Claims) Snk and Granola Bars (GMO+ Claims) AO Specialty Nut Butter (w/o Non GMO+Natural/Organic+ Rfg Pizza (GF Claims+Natural/Organic+ Microwave Popcorn (Fat+Organic+Natural/Organic+ Claims) Soups - BFY Claims) Claims) Natural Cheese (Fat+ Claims) Specialty Nut Butter (Non GMO+Natural/Organic+ Carob/Yogurt Coated Snacks RFG Ready-to-Drink Coffee AO Natural Cheese (w/o Fat+ Claims) Claims) Chocolate Covered Salted Snacks Sherbet/Sorbet/Ices Nutri and Intri Hlth Vlu Bars (Other Protein+ Claims) Sunflower/Pumpkin Seeds Cookies (Energy+ Claims) SS Bottled Juice and Drink Smoothies Crackers(w/o Other Grain+ Claims) Tortilla and Tostada Chips (100% Natural+ Nutritional Snacks/Trail Mixes Total Snack Size Produce Cupcakes and Brownies (GF+ Claims) Claims) Olives Yogurt (Fat+ Claims) Fz App and Snk Rolls (Protein+Natural+ Claims) Tortilla/Eggroll/Wonton Wrap - RFG Peanut Butter (Non GMO+Low Fat+Organic+Sugar+ Claims) AO Yogurt (w/o Fat+ Claims) Picante Sauce

Aerosol/Squeezable Cheese Spreads FZ Onion Rings Chocolate Candy AO Cookies (w/o Energy+ claims) Fz Pizza (w/o 100% Natural+ Claims) AO Fz App and Snk Rolls (w/o Protein+Natural+ Claims) Non-Chocolate Candy AO Fz HH Entrees Non Bkfast (w/o GF+ Claims) FZ Pizza Kits/Toppings AO Fz Ice Cream and Ice Milk Desserts (w/o 100% Natural+ Claims) FZ Plain Potatoes/Fries/Hashbrowns Regular Breath Fresheners AO Fz Jams Jellies and Preserves (w/o 100% Natural+ Claims) Fz Tortillas Regular Gum (No Sugarless) AO Fz Novelties (w/o 100% Natural+ Claims) Microwave Popcorn (w/o Fat+Organic+Natural/Organic+ AO Ice Cream (w/o Low Fat+High Protein+Organic+ Claims) Claims) SF Breath Fresheners AO Ice Milk and Fz Dairy Desserts (w/o Low Fat+Gluten Pastry/Danish/Coffee Cakes Free+Natural+ Claims) Sugarless Gum AO Ice Pop Novelty (w/o Natural+Low Fat+ Claims) Rfg Pastry/Danish/Coffee Cakes (GF+ Claims) AO Muffins (w/o Gluten Free+Low Fat+Natural+Grain+ Claims) RFG Handheld Non-Breakfast Entrees AO Oth Salted Snack xNuts (w/o Gluten Free+Non GMO+Low Fat+ Rfg Snack Cakes and Donuts (GF+ Claims) Claims) RTE Popcorn Savory (w/o Fat+ Claims) AO Potato Chips (w/o High Fiber + Low Fat+ Claims) RTE Popcorn Sweet (w/o Fat+ Claims) AO Rfg Pastry/Danish/Coffee Cakes (w/o GF+ Claims) AO Rfg Bagels and Bialys (w/o Low Fat+Grain) SS Toaster Pastries and Pop Tarts (Organic+GF+ Claims) AO Rfg Desserts (w/o Low Sugar+Gluten Free + Natural+ Claims) AO SS Toaster Pastries and Tarts (w/o Organic+GF+ AO Rfg Dips (w/o Fat Claims+Natural+Calories/serving+ Claims) Claims) AO Rfg Pizza (GF Claims+Natural/Organic+ Claims) Toasted Corn Nut Snacks AO Rfg Snack Cakes and Donuts (w/o GF+ Claims) True Indulg - Soups AO Tortilla and Tostada Chips (w/o 100% Natural+ Claims) Corn Snacks (No Tortilla Chips) Cupcakes and Brownies (w/o GF+ Claims) Dip/Dip Mixes SS Doughnuts FZ Cookies FZ Dips

• FAT CLAIMS NO/ LOW/ LESS • GLUTEN FREE CLAIMS • GMO CLAIMS NON GMO PROJECT VERIFIED/ NO/ NO ADDED/ NOT TREATED WITH • 100 PERCENT NATURAL CLAIMS • SODIUM OR SALT CLAIMS NO/ LOW/ LESS • ORGANIC CLAIMS 100%/ USDA/ CERTIFIED/ MADE WITH • SUGAR CLAIMS NO/ LOW/ LESS • PROTEIN CLAIMS HIGH/ SOURCE/ MORE • FIBER CLAIMS HIGH/ SOURCE/ MORE