Keep Adding Value to Pasta World
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Keep Adding Value to Pasta World Francesco Pantò Research Development & Quality Bologna, 21 September 2018 The good news on Pasta “Il prodotto più bello del mondo” The good news: a charming lifestyle Inspiring, sociable, enjoyable, healthy The good news: a clear view Give people food you would give to your own children How to grow value of Pasta PREMIUM HEALTHY CONVENIENT Keep adding value to Pasta category A Global Commitment: Lead the Category by adding Value, building on people’s desires and rewarding customers and consumers Premium Better for You Convenient CONVENIENCE: Ready Pasta Premium Better for You Convenient Why Ready Pasta in the US Consumer Barrier “It takes too much Ready Pasta – since mar 2017 time/effort to cook pasta” Changing Eating Behaviors 50% Eating Alone, need for single serve options Fragmented Meals Flexible Eating - Sna cking Category Opportunity Product Drive category growth by: • 4 varieties: Penne, Rotini, Elbows, Gemelli • - increasing pasta frequency 240 g (2 cups cooked pasta) - attracting new users • 60 seconds in microwave or 2 min on stove top Ready Pasta is reaching existing AND new consumer groups Millennials, Households Couples w/o kids with Kids Independents & Senior Singles! • Ready Pasta: present in all • Ready Pasta: high presence • Ready Pasta: reaching House-holds w/kids, over- with couples, over-indexes groups where Pasta indexes with Younger among Empty Nesters category underperforms Bustling families Nielsen Panel Data BETTER FOR YOU: Legume Pasta Premium Better for You Convenient PREMIUM: Voiello Premium Better for You Convenient «Solo il meglio del meglio» «Only the best of the best» Giovanni Voiello The Challenge: EXCELLENT PASTA WITH TOP QUALITY ITALIAN WHEAT: VOIELLO Pasta and AUREO Wheat: BEST and SUSTAINABLE go hand-in-hand 1. Simply the excellence in pasta 2. Made in Caserta 3. With the best wheat in the world! YESTERDAY 100% DESERT DURUM FROM ARIZONA excellent wheat with ⇒ High environmental footprint TODAY AUREO: EXCELLENT SUSTAINABLE ITALIAN WHEAT Challenge to bring top quality durum wheat in Italy Challenge of variety adaptability and cultivation protocols - Almost 10 years of development with PSB to win the bet! AUREO SUSTAINABILITY Thanks to this new variety , as Barilla we were able to cancel imports of Desert Desert Durum production has a strong impact in terms of water footprint because Durum top Quality Wheat from Arizona. it needs irrigations and it uses a large volume of blue water from Colorado River. -50,000,000 m2 OF WATER Desert Durum substitution means a reduction in water footprint of about 50 mio 50,000 TONS of blue water cubic meters. AUREO PRODUCTION AUREO PRODUCTION 50,000 t PRODUCTION Barilla developed a dedicated Supply Chain in Central/Southern Italy, striking cultivation contracts with local farming organization 15,000 ha giving to the farmers a minimum price that CROPPING AREA guarantee a coverage of cultivation costs and specific premium for reaching quality >3 MT/ha targets. AVERAGE YIELD AUREO TOP QUALITY 1,000 UNIT CHARACTERISTICS FARM 15.3% >7.0 PROTEIN GLUTEN 3-Y AVG. The Secret Recipe THE MASTERY PREMIUM AUREO STRONG OF PASTA PRODUCT 100% ITALIAN AMBASSADOR MAKING .