Presents:

1. Presents: Top 10 trends for 2014 delay

2. Top 10 trends for 2014 • Waste not want not • You can trust us • Simpler pleasures • Look out for the small guy • Health is more holistic • “New” superfoods • Rise of the hybrid • The protein horizon • New stealth strategies • Alternative alternatives delay

3. Trend 1: Waste not want not delay

4. Waste not want not • The development of secondary markets for the reuse of food and by-product recycling with energy recovery will become the norm. • Transit and packaging innovation will come to the fore to keep food fresher for longer, along with smaller pack availability. • Waste “footprints” could become the next environmental measure for both big and small companies. Food waste related patents and abstracts tracked CAGR 2008 to 2012 Patent and scientific article publications tracked with “food waste” and “food loss” has increased significantly in the last years. 30.8% 31.1% delay

5. Packaging is the key player in waste reduction Single serves Freezable Recycling more “Single serve packs for no waste.” “Frumoo can even be frozen beforehand, reducing waste and keeping the lunchbox cold.” “Santa Cruz Organic recycle more than 95% of their waste – an award winning achievement.” UK: McLelland Seriously Strong Grated Extra Mature Cheddar Cheese UK: Fresh Milk & Real Fruit Strawberry & Blackberry Canada: Santa Cruz Organic Raspberry Lemonade. delay

6. Trend 2: You can trust us delay

7. You can trust us • Ingredient origin claims will move to the front-of-pack and be more prominent. • The use of tracking codes or QR codes on packaging to view where ingredients are sourced from will be more readily applied. • Hormone free, GMO free and similar claims will be sought out by consumers. • Niches for super premium ingredients or products may evolve to meet the demands of more skeptical and discerning consumers. Source: The Guardian Source: BBC News delay

8. How transparancy is displayed to gain trust Traceability No antibiotics Origin of the beef Full traceability of ingredients. Pork raised without antibiotics. Beef origin: France Hongkong: Babynat Organic Apple & Blueberry Puree for Babies Canada: Schneiders Country Naturals Maple Syrup Countryside Pork Sausage France: Letal Du Boucher 10 Haches Au Boeuf: 10 Beef Burgers delay

9. Trend 3: Simpler pleasures delay

10. Simpler pleasures • Consumers are reassessing their needs and going back to basics. They are finding more pleasure in simpler food. • There has been a shift towards home cooking, with food bringing family and friends together. • There is growth on the budget and premium sides, but the center ground being squeezed. • Value packaging and “good value” claims on the products themselves and in-store value promotions are prospering. delay

11. Examples of simple pleasures Rebranding private label Ready to bake Finest ingredients Rebranding of the private label brand with more attractive packaging. Ready prepared paste for a sweet chocolate cake. Tesco has recently relaunched its Finest line. Netherlands: AH Basic Milk chocolate France:  Prepat Pate Toute Prete Moelleux Au Chocolat: Chocolate Cake Paste UK: Tesco Finest Restaurant Collection Coq Au Vin delay

12. Trend 4: Look out for the small guy delay

13. Look out for the small guy • Big companies will be increasingly looking to smaller companies for product innovation ideas. • Craft-inspired or handmade snacks, biscuits and beverages will be the “small guy” categories with the most potential to impact future trends. • New ingredients, concepts and preparation methods for more health benefits will emerge. • Flavor authenticity, innovation or in some cases flavor novelty will be a strong driver for new product development. Although total US beer consumption is decreasing, craft beer is gaining popularity. The 52% increase in craft beer sales from 2007 to 2011 indicates that mainstream beer is also losing share to crafted beers. CAGR = 12% Source: Brewers Association delay

14. Small companies, big ideas New healthy concept:½ veg & ½ fruit Authentic Organic & healthy An important marketing strategy for the success of small companies is a fun or inspiring personal story of how they came up with their product idea. It establishes the brand as small and honest and creates an emotional connection to the consumer. Authentically pan-popped maize. Proudly made in Britain by hand in the old-fashioned way. Happy honest treat. Nice and healthy. Organic. UK: Vegesentials Beetroot, Kiwi & Carrot Smoothie UK: Blooms Favourite Recipe Hot and Smokey Pop Corn Netherlands: Justnuts Pineapple & Cashew Bar delay

15. Trend 5: Health is more holistic delay

16. Health is more holistic • More body, mind and spiritual connections will be madewith particular ingredients. • Health-giving, natural extracts full of rejuvenating medicinal properties will be applied in food and beverages, where possible. • Vitamins & minerals promotion will continue to be a strong claims focus. • Traditional medicine alternatives will be further explored, including Traditional Chinese Medicine and Ayurveda. 2012 – H1 = Index 100 +52% Product launches tracked with vitamin/ mineral fortification was up 52% from 2012-H1 to 2013-H1. delay

17. Fortified – naturally healthy – traditional medicine Vitamin fortification Naturally healthy Traditional medicine High in vitamin C Naturally rich in omega 3 and protein All the ingredients for Hari Crunch Cereal derived from controlled biological cultivation, after an Ayurvedic formulation (Ayurveda is one of the world's oldest medicines). Belgium: Delhaize Superfruit Grape, Acerola, Raspberry Strawberry Juice UK: Braham & Murray Good Sweet Cinnamon Hemp Seed Germany: Aalenaa Hari CrunchOrganicCrunchy Muesli Open Up delay

18. Trend 6: “New” superfoods delay

19. “New” superfoods • Regulatory pressure is leading to an increased focus on fruits and vegetables,due to the global obesity epidemic. • Previously forgotten vegetables and alternative grains will be applied in a wide range of products to convey more old fashioned health and nutrition. • Marketing fruit & vegetables’ natural health attributes as far as vitamins and minerals are concerned will become more pronounced. A blast from the past: the new superfoods: parsnips, artichokes, kale, salsify, freekeh and chia are being tracked in more and more products. delay

20. Interesting formats for new superfoods Chia Freekeh Kale as a snack Blend of chia, spirulina, chlorella, fruits, ginger, curcumin, wheat grass, omega 3s, fiber, electrolytes, vitamins and minerals. Rosemary & rock salt crackers are partly made from cracked green wheat freekeh. A delicious raw food snack made of kale and wasabi and raw superfoods like wheatgrass. United Kingdom: Inspiral Raw Wasabi Wheatgrass Kale Chips France: Trachealth Simple Super Seeds Chia Superfoods Drink Blend Malaysia: Tuckers Natural Multifibre Rosemary and Rock Salt Crackers delay

21. Trend 7: Rise of the hybrid delay

22. Rise of the hybrid • Well-known brands will venture into previously unconsidered categories. • Cross-branding will become more prevalent to capitalize on brands’ popularity and as a means to further reinforce brands in the consumer mindset. • New flavors, textures and delivery methods will continue to excite from an innovation perspective. • Limited edition innovation should increase as companies test the market to see if new concepts are worth pursuing. delay

23. Hybrid product examples New flavor Combination of 2 traditional concepts Combination of 2 traditional concepts Pepsi cola flavored Fritolay corn snacks. A delicious doughnut/muffin fusion. Crunchy bread rolls with a juicy pizza topping inside. Japan: Fritolay cola flavored corn snacks United Kingdom: Starbucks Germany: Dr. Oetker Pizzaburger Speciale delay

24. Trend 8: The protein horizon delay

25. The protein horizon • The addition of protein sends subliminal weight management messaging due to its satiety attributes. This marketing platform will continue to offer added value. • More male specific marketing will emerge for mainstream protein products. • Vegetable protein ingredient development will continue to flourish, in order to become available to a wider range of consumers. Globally, a sharp rise in product launches tracked with protein claims has been reported. 2010 = Index 100 delay

26. For men, weight management and snacking Yogurt for men Weight management Greek yogurt as ahealthy snack The first yogurt for men. Excellent source of protein. Suitable for individuals with high protein requirements (e.g. diet-conscious and athletes). • Mixed berry acai flavored granola bites with Greek yogurt coating. US: Rickland Orchards Greek on the go Greek yogurt coated mixed berry acai granola bites. US: Powerful Yogurt Plain Germany: Body attack protein pancake with stevia. delay

27. Trend 9: New stealth strategies delay

28. New stealth strategies • The fat, sugar and salt content of products will continue to decrease, but most manufacturers will choose to not actively market this. • The US demonization of trans fats will lead to the disappearance of partially hydrogenated fats altogether. • Industry pledges will continue to evolve. Some companies will set their own targets in order to gain the perception of being socially responsible. Manufacturers are flying under the radar with stealth reduction. For example, US companies are reducing the sodium content of savory snacks like crackers. It is happening, albeit quietly. 2009 = Index 100 delay

29. Stealth reduction: sodium and sugar Sodium reduction Sugar reduction Kraft Original BBQ sauce has reduced its sodium content by 40% since 2005. This reformulation was achieved through the use of ingredients: natural hickory smoke flavor, dried garlic and dried onions. The Heinz classic Ketchup was tracked with 8.5% less sugar in the most recent product launch tracked. Stealth: -8.5% Kraft Original Barbecue Sauce 2005: Heinz Tomato Ketchup: 25.7g sugar Now: Heinz Tomato Ketchup: 23.5g sugar delay

30. Trend 10: Alternative alternatives delay

31. Alternative alternatives • Consumers are expecting more choice to the dairy alternative mainstay soy. • New product categories such as kogurt (coconut milk yogurt) have emerged. This will continue as a result of on-going “free from” new product development. • Nut and grain milks satisfy other health trends such as “The protein horizon” and “New superfoods.” • As gluten free options continue to expand, so too are the possibilities for wheat replacement. Improvements are being made in texture and taste. The number of tracked almond drink product launches has more than doubled from 2010 to 2012. 2010 = Index 100 delay

32. Alternative products accross different categories Free of multiple allergens Soy milk alternative Gluten free pizza Free of 8 most common allergens. Dairy free. Nut free. Soy free. Wheat free. Tree nut free. Egg free. Fish free. Shellfish free. Gluten free. Dairy, soy and gluten free. Dairy free and gluten free pizza made with organic rice flour. US: Suja Vanilla Cloud: Coconut Almond Drink US: Enjoy Life Cherry Cobbler Decadent Soft Baked bars US: Amy’sDairy Free Rice CrustCheeze Pizza delay

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