Wave 2 05/22/20 SCROLL THROUGH SELECTED CANADIAN RESULTS HERE Introduction Background & Research Objective • In addition to being a public health crisis and an economic crisis, COVID-19 is a cultural inflection point. Changes in consumer attitudes and behaviors usually happen over months and years. Now seismic changes are compressed into days and weeks. • As we move through the phases of the pandemic, new consumer behaviors and attitudes will emerge. As this happens, will your brands be ready? • In order to help our clients answer this question, Dig has launched a syndicated tracker that will allow companies to understand how the consumer landscape is changing. Across several industries, we will also gain insight into how the consumer relationship with brands and categories is evolving over time. • The objective of this study is to provide our clients with an in-depth tracking of consumer attitudes, behaviors and experiences during and after this crisis. Tracking in both the U.S. and Canada, we provide insights across a variety of consumer categories. 2 Wave 2 Report Contents 05/22/20 Below outlines the contents of this report. Click on an area of interest below to go directly to that section. Sample Profile E-Commerce Executive Summary Alcohol Cannabis Awareness of Coronavirus/COVID-19 CPG: Personal Care Segmentation CPG: Household Products Category Deep-Dives CPG: OTC/RX Insurance CPG: RTD Beverages Financial Services CPG: Salty Snacks Movies/Streaming Services Restaurant/QSR Home Improvement Coffee Grocery Stores Breakfast Drug Stores Gyms Shopping Malls 3 Wave 2 Methodology 05/22/20 • n=3234 Canadian panelists participated in a 20-minute online survey between April 26-May 6, 2020. • Respondents were screened to meet the following criteria: • Currently living in Canada • Aged 18-65 • Nationally representative by age, gender, and region Survey Flow Category Deep-Dive Screener Awareness & Concern Segmentation Category Deep-Dives Profiling Qualification Respondents Respondents were assigned to were asked about complete 3 their consumer category deep- behaviors and dives. attitudes for category deep- dive assignment. 4 THE CONTEXT Wave 2 05/22/20 From Wave 1 to Wave 2, the number of reported COVID-19 cases in Canada remained roughly flat. Wave 1 Wave 2 Canada And, in spite of growing economic hardships, there is evidence of both increased optimism among Canadians, as well as a degree of “Caution Fatigue.” Daily Daily Avg= Avg= Wave 2 corresponds with more optimistic news headlines 1.7K 1.7K that reference the flattening of the curve and the beginnings of provinces “opening back up” again. Headlines from Wave 1: Fieldwork: April 22-27 Headlines from Wave 1: Fieldwork: May 1-6 Community spread of COVID-19 has peaked in Ontario, Canada's top doctor 'cautiously but spread in long-term care settings is growing optimistic,' says country is Health expert urges provinces to flattening the curve 'find the middle ground' as they Ontario now 2nd province seeking ‘Worst is yet ahead of us’ begin to reopen military help in care homes; COVID- in coronavirus outbreak, Ontario allowing some 19 deaths top 2,000 in Canada WHO warns businesses to reopen on Nova Scotia is easing some of Monday 'under strict Canada’s economic recovery to its COVID-19 restrictions. rebound slower than in the US guidelines' Canada is officially in a recession; C.D. Howe Institute says. THE VIRUS Wave 2 05/22/20 46%-1pt Generally, fear and anxiety remain high among Canadians. Nearly half remain very concerned about Are VERY concerned COVID-19 and 50% fear getting sick, although notably, about COVID-19 this figure has fallen slightly (down 3 pts vs. Wave 1). Actual experience with COVID-19 remains relatively low in Canada, but now 25% (up 3 pts) believe they 71% 50% 64% -1pt -3pts (S) +2pts know someone who has had the virus. I am worried about my I fear that I might I don't think people friends/family/ get sick with are taking COVID-19 • Concern for others tends to dominate their minds, coworkers getting COVID-19 seriously enough with 71% worrying about others (friends/ COVID-19 family/coworkers) getting COVID-19 • Far more people think others should be taking COVID-19 more seriously (64%) than those who 25% 18% 19% think it is no worse than a bad flu (only 19%). +3pts (S) +1pt +2pts (S) I believe that I have I know someone who I think that COVID-19 has been diagnosed been exposed to is no worse than a COVID-19 and either with COVID-19 bad flu had mild symptoms or no symptoms at all All pt changes are vs. wave 1 (S) = Significant difference THE REACTION: OVERALL Wave 2 05/22/20 Canadians continue to react reasonably well to quarantine. While there are still a number of stressors, there is a 89% -1pt 80% growing degree of optimism toward the future that is 61%+1pt I am actively practicing Current situation is a I am appreciating evident. social distancing in order chance for us to taking life slower at to 'flatten the curve' of rethink our priorities this time • Almost all continue to be social distancing (89%) COVID-19 • Many report that this is a time to rethink priorities (80%) & appreciate taking life slower (61%) 63% 41% 49% • However, almost half (49%) feel frustrated by the +1pt -3pts I am worried about the mental I feel more depressed I am frustrated by the limitations placed on their lives right now, 63% worry health of other people in my lately limitations placed on about the mental health of people in their lives, and life our lives right now many report that they personally feel more depressed lately (41%). • Despite this, there are notable signs of optimism with a 15pt jump in those agreeing that the situation is 64% 55% 49% +15pts (S) +5pts (S) +3pts (S) improving, and roughly half believe things will soon be Recent situation is improving Situation will be Confident better better. better in next 30 days times are not too far off All pt changes are vs. wave 1 (S) = Significant difference THE ECONOMY Wave 2 05/22/20 A growing majority of Canadians (79%, up 4 pts vs. Wave 79% +4pts (S) 1) feel confident that they can weather the financial Have some level of confidence they can cope with the impact of the economy, which corresponds with slightly financial impact of the current economy. fewer people who are delaying big expenses (now 53%, down 4 pts.). Nonetheless, 69% are still trying to spend less and save 69% -3pts 57% -1pt more to protect themselves against a bleak economic I am currently trying to limit I am buying small treats to outlook. my spending make myself and my family feel better at this time • The economic outlook for most is dark, with only 11% agreeing that the economy is strong now and a quarter (26%) believing that the economy will be 53% -4pts (S) 11% n/c strong in six months I am delaying or cancelling big I think that the economy is expenses to save money strong now • Many (42%) continue to indicate that they are trying to spend less on food • While trying to save overall, more than half (57%) look -1pt +2pts for small treats to make themselves feel better 42% 26% I am trying to spend less on I think that the economy will food be strong in six months All pt changes are vs. wave 1 (S) = Significant difference While COVID-19 remains top of mind among Canadians, there has Wave 2 been a small but significant decrease in concern. 05/22/20 Summary of Key Metrics W1 W2 % Change 04/29/20 05/06/20 (W2-W1) Base 100 100 Q6. Awareness of COVID-19 96 95 -1 (% Following News Closely / A Little Bit) Q9. Discussion on COVID-19 75 73 -2 (% A Lot) Q11. Preparation 89 90 +1 (% Very / Somewhat Prepared) Q186. Physical Distancing 11 11 0 (% Full Lockdown) Q10. Level of Concern 91 89 -2 (% Very / Somewhat Concerned) Significantly higher vs. Wave Significantly lower vs. Wave A Significantly higher vs. Subgroup 9 Significantly lower vs. Subgroup Significantly fewer Canadians are following the news closely. Wave 2 However, sources of awareness remain unchanged. 05/22/20 • More Canadians are turning to TV or Radio News stations to remain informed on COVID-19. Awareness of Coronavirus/COVID-19 (%) Source of Awareness (%) 49 49 36 36 Social Media W1 - 04/29/20 W2 - 05/06/20 Friends W1 - 04/29/20 W2 - 05/06/20 Following News Closely 74 71 95% vs. 96% in W1 Following News 66 74 44 42 TV or Radio News W1 - 04/29/20 W2 - 05/06/20 Family W1 - 04/29/20 W2 - 05/06/20 Stations Following News A Little Bit 22 24 Aware, Not Actively 21 20 19 19 Following News 3 5 Unaware 1 1 Online Discussions W1 - 04/29/20 W2 - 05/06/20 Co-workers W1 - 04/29/20 W2 - 05/06/20 W1 W2 04/29/20 05/06/20 Significantly higher vs. Wave Significantly lower vs. Wave Q6. There has been recent discussion of a new type of virus, known as Coronavirus or COVID-19. How aware are you of this virus? Q8. Where are you getting information about Coronavirus / COVID-19? A Significantly higher vs. Subgroup 10 Base: Total Respondents (Wave 2 n=3234, Wave 1 n=3218) Significantly lower vs. Subgroup Preparedness and physical distancing behaviors appear to have Wave 2 05/22/20 leveled off. Discussion of COVID-19 (%) Level of Preparation (%) Physical Distancing(%) Full Lockdown 11 11 Very Prepared 27 29 A Lot 75 73 90% vs.