New Opportunity Analysis: Nutrition
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Based on information provided by Small Planet Foods (SPF), it is understood that this project will seek to identify new and emerging opportunities for SPF’s existing and future portfolio of ...

Based on information provided by Small Planet Foods (SPF), it is understood that this project will seek to identify new and emerging opportunities for SPF’s existing and future portfolio of products. The primary focus of this project will be consumer and customer trends in the United States.

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New Opportunity Analysis: Nutrition Presentation Transcript

  • 1. New Opportunity Analysis in Nutrition
  • 2. Research MethodologyFor this study, Harrison Hayes conducted primary research interviews with eleven (11) KeyOpinion Leaders related to “health foodie” groups and nutrition. Key Opinion Leaders and theirbackground highlighted at the end of this report.To supplement information uncovered in the qualitative Key Opinion Leader interviews, HarrisonHayes also conducted secondary research from publicly available information, syndicatedmaterials, and past research within Harrison Hayes. 2
  • 3. Executive Summary and Key Recommendations
  • 4. Key Takeaways and RecommendationsBased on Key Opinion Leader feedback the following areas were identified as the best possibleopportunities within the consumer food nutrition space:  Frozen, organic, culinary inspired dinner meals or meal components. Dinner is considered sacred and valuable family time and parents desire a quick and convenient healthy meal option. Consumers want meal components or ready made meals that can be assembled with simple steps in family size portions. 4
  • 5. Key Takeaways and RecommendationsBased on Key Opinion Leader feedback the following areas were identified as the best possibleopportunities the consumer food nutrition space:  Dehydrated / dried and “raw” foods are a growing area of interest for consumers. Key Opinion Leaders noted that a large majority of consumers would welcome low sugar, stand alone dried fruits. (i.e. apple chips). Consumers are craving more new and exotic flavors, which can also be incorporated to increase the overall taste profile and offer more variety. 5
  • 6. Key Takeaways and RecommendationsBased on Key Opinion Leader feedback the following areas were identified as the best possibleopportunities the consumer food nutrition space:  Quick prepare Natural, Non-GMO “Right Start” breakfast items, refrigerated or frozen. There are opportunities in the breakfast arena, an “All Natural” Branded pancake, waffle or toaster pastry would be quickly accepted as a healthy option for breakfast and it could be an easy on the go meal eaten by hand for kids on the go. 6
  • 7. Key Takeaways and Recommendations  Frozen, organic, locally grown (USA) fruit in pre-made smoothies packages. Consumers prefer frozen, locally grown in the USA, fruits and vegetables, rather than fresh imported fruits and vegetables from outside the USA. Frozen fruit is ideal for smoothies and a pre-portioned bag that just needs milk and a blender would be ideal. 7
  • 8. Key Takeaways and Recommendations  The incorporation of some of the emerging “Super Foods” into current products. Many KOL’s made it clear that the emergence of “super foods” was an obvious next step in healthier eating and these “super food” components could be more prevalent and highlighted in new and improved natural, non-GMO and organic products. The 2 most commonly mentioned emerging “super foods” by our KOL’s were Chia Seeds and Quinoa. The Benefits of both are detailed on slides ??? 8
  • 9. Recommendations
  • 10. Recommendation I: Define “Natural” It is clear that the definition of “Natural” foods needs to be a market push approach.  Consumers need to be educated on the term “Natural” and what it means in the nutrition space.  Nutrition companies need to define this space for consumers.  Harrison Hayes is of the opinion that “Natural” products should contain simplistic ingredients.  To successfully define the market, it must be accomplished through social media and packaging, with easy to read ingredients listed; along with traditional market methods.  Consumer will trust existing brands that have withstood the test of time and are proven to be healthy, rather than trusting new brands entering the market. 10
  • 11. Recommendation II: Pre-Assembled Culinary Inspired Meals There is a clear need and opportunity for pre-assembled and on-the-go organic meals.  Pre-assembled and on-the-go food products are applicable for breakfast and lunch. Meal components and family size culinary inspired meals are better dinner options when the family is looking for a convenient, easy to assemble, healthy dinner option.  Lunch products should focus on pre-mixed salads with dressing included and healthy pre-made wraps. High protein, low fat meals should also be considered in this mix.  Breakfast on-the-go meals should include protein based foods and “deep greens” such as spinach. One example by a Key Opinion Leader was breakfast burritos with spinach included.  Several Key Opinion Leader stated that a brand like Larabar may be positioned to lead with a breakfast product, like Natural non-GMO or organic waffles or pancakes. 11
  • 12. Recommendation III: Pre-portioned frozen fruit for smoothies There is great opportunity for organic frozen fruit for the growing popularity of smoothies.  Health foodies are very conscious of buying organic products. This is the most important element in their purchase decisions.  Nutrition companies should target these customers who are looking for an organic smoothie option that is quick and easy and available in the frozen aisle.  These pre-made or assembled parts for a smoothie, just add milk and blend, this is a fast growing area without any current organic players. 12
  • 13. Recommendation IV: Super Foods Super Foods should be considered as an addition  There is a high level of interest in Chia Seeds and Quinoa.  Each of these products would be well received by health foodies, vegans, vegetarians, and other health conscious groups.  Per several KOL’s, these and/or other Super Foods can potentially be integrated into existing product lines, this would maintain the Naturalness of the product and new claims of health benefits could be presented to the consumer. 13
  • 14. Recommendation V: Innovation Opportunities Harrison Hayes believes there are innovation opportunities for the nutrition space.  Nutrition companies should explore the future of sodium free, many consumers need to reduce salt in their diet, sodium is a preservative and many natural and organic items are high in sodium. Having Sodium-Free products would open more channels for salt conscious consumers, a growing segment of the American population.  Sugar-Free without chemical sweeteners is another area of opportunity, potentially incorporating a natural calorie free sweetener like Monk Fruit from China and bringing it to the forefront of consumers would be a game-changer.  Organic Gluten-Free is an area that is vastly underserved with good tasting quality food. This is an area of opportunity for long-term innovation. 14
  • 15. General Observations and Key Opinion Leader Feedback
  • 16. What is “Natural”?It was unanimous among all Key Opinion Leaders that “Natural” was misunderstood,there was not a true definition and that is a major issue within the healthier food space.  Key Opinion Leaders stated that consumers are confused about the term “Natural” and are unsure of its true meaning? This is leading to a “black eye” on the industry.  Consumers trust a brand that has a reputation as being Natural rather than a new product that makes claims about being all-natural and is unproven.  Many less knowledgeable consumers assume that if a product is labeled “Natural”, then it is healthy and some will even assume it is non-GMO or even organic. 16
  • 17. What is “Natural”?It was unanimous among all Key Opinion Leaders that “Natural” was misunderstood,there was not a true definition and that is a major issue within the healthier food space.  The most recent example of consumers misunderstanding of the definition of “Natural” is the disaster that Kellogg is currently going through with their Kashi brand. Consumer’s outcry over GMO’s being used in their products will cost them many previously loyal customers and ultimately many lost dollars of revenue.  “In the minds of consumers, “natural” is associated with being healthy. Consumers are simply trusting what the brand or companies are advertising. Unfortunately, being “natural” doesn’t mean it is healthy.” - Elizabeth Jarrad Culinary Specialist at Whole Foods 17
  • 18. Meals v. SnackingThere was no real consensus among the Key Opinion Leaders about whether or not snackingis replacing traditional meals; however, trends among Americans are changing.  Key Opinion Leaders did note that snacks are becoming more prevalent throughout the day and there is a push from consumers for more variety and healthier “on the go” meal and snack options.  With the fast-paced lifestyle most American families live today, consumers are demanding quicker, more healthy, and “on the go” breakfasts and lunches. In-between meal snacking is making up for the less nutritiously satisfying breakfasts and lunches consumers have to choose from.  The availability of snack foods / mini-meals at so many different outlets, i.e. drug stores, convenience stores, gas stations and even coffee houses, has impacted the less than healthy snacking that takes place throughout the day. 18
  • 19. Meals v. Snacking continued.Snacking is changing and consumers are demanding more.  Consumers want snacks that they perceive as being “healthy”, like bars, berries, nuts and smoothies/drinks.  KOL’s agreed that the best and healthiest snacks are fresh fruits and fresh vegetables.  Healthy snacks should be simple with very few ingredients. 19
  • 20. Meals v. SnackingSnacking is changing and consumers are demanding more.  Traditionally, American snacks were “sweet and/or salty”. Chips, pretzels or candy, everything from one bag and each bite will taste the same.  “Savory” is emerging as what consumers are considering when purchasing snack based products. Savory is defined as having a variety of tastes and textures, potentially coming from more than one food group and having a longer lasting effect on hunger cravings. 20
  • 21. Organic Food MarketplaceAll of the Key Opinion Leaders agreed that organic foods are healthier, the market isgrowing but there is not one dominant player, competition for shelf space is fierce.  Consumers view organic food as healthier, the knowledgeable consumer knows there are strict guidelines for a product to be labeled organic.  For the retailer, there is potential for increased revenue from the organic space; there is not as much competition in some categories as there is in other grocery categories. There is strong motivation for retailers to stock organic products. 21
  • 22. Organic Food MarketplaceAll of the Key Opinion Leaders agreed that organic foods are healthier, the market isgrowing but there is not one dominant player, competition for shelf space is fierce.  Life changing events like the birth of a child or a diagnosis of a medical condition often cause consumers to re-evaluate the types of foods their families are consuming and therefore they begin to buy healthier organic foods.  Many KOL’s mentioned that the more educated consumers buy organic products in order to avoid GMOs (genetically modified organisms), chemicals and pesticides.  Organic and locally grown, within the USA, is a real concern for the knowledgeable consumer when it comes to fruits and vegetables. There is less concern for some of the hard shell products like pineapples and avocados. 22
  • 23. Organic Food Marketplace- continued.KOL’s agree, as the organic food market continues a steady growth, the core group ofhealth food consumers will become more demanding and expect higher standards.  Consumers are becoming more educated and expect higher standards; from what ingredients are included, to how it is processed and even the packaging is coming into question.  There is a push away from wheat based products in favor of gluten-free products, not just because of the gluten in the wheat, but also the way wheat is overly processed.  There is a perception among some consumers that organic foods lack the taste of the more processed foods.  Organic is considered a “Premium” item, therefore the consumer must be more diligent in their choices in regards to what they should purchase organic. 23
  • 24. Breakdown of Organic Food PurchasesProduce and Dairy products have long been considered to be the bulk of organic foodpurchases. Source: USDA and the Nutrition Business Journal, 2010. 24
  • 25. Market Opportunities
  • 26. Opportunities in Frozen Prepared Food CategoryIt was nearly unanimous amongst all the interviewed Key Opinion Leaders thatRefrigerated and Frozen Foods represent the largest opportunity for expanded growth.  The frozen food and refrigerated food aisle was noted to have very few organic and non-GMO natural food options.  The emergence and popularity of culinary inspired and restaurant name brand frozen foods has opened the door for culinary inspired non-GMO natural and organic meals. These meals will meet the consumer’s demands for a family meal that is quickly assembled while being in the “better for you” category. 26
  • 27. Opportunities in Frozen Prepared Food CategoryIt was nearly unanimous amongst all the interviewed Key Opinion Leaders thatRefrigerated and Frozen Foods represent the largest opportunity for expanded growth.  Currently Amy’s and Alexia brands are the dominant players in the organic frozen food space, however, many KOL’s interviewed believe that there is a need for competition and improvement in the organic frozen food market.  Amy’s and Alexia brands do not have the product line to meet all the consumer’s needs. Amy’s products are mostly single serve and Alexia is mostly side items and potatoes. Families need family sized portions. 27
  • 28. Dehydrated Food OptionsA majority of Key Opinion Leaders noted dehydrated/dried and “raw” foods as a growingarea of interest for consumers.  The Larabar brand was specifically mentioned by several Key Opinion Leaders as “an excellent raw bar.”  Larabar contains dried fruits and nuts, simply mixed together. This serves as a convenience to consumers.  Key Opinion Leaders noted that a large majority of consumers would welcome low sugar, stand alone dried fruits. (i.e. apple chips).  Consumers are craving more new and exotic flavors, which could also be incorporated to increase the overall taste profile and offer variety.  LARABAR is a trusted brand name and is ideal for brand extension. 28
  • 29. Other Options in Prepared MealsAs previously noted Amy’s Kitchen frozen products is the clear leader in organic frozenprepared meals, but they lack competition in this space.  Several KOL’s noted that many products within Amy’s line, although they are organic are also high in calories and, in some cases, fat.  There is an unmet need for a low fat, high protein organic line of diet or weight loss products, one KOL described it as a “Organic Lean Cuisine”  As noted on Slide 16, consumers trust in brands that have past the test of time in regards to being Natural, non-GMO and healthier. The LARABAR brand was mentioned many times as being one of those products and is therefore is a solid position for a brand extension. 29
  • 30. Other Options in Prepared MealsAs previously noted Amy’s Kitchen frozen products is the clear leader in organic frozenprepared meals, but they lack competition in this space.  There are opportunities is the breakfast arena, a “all natural” pancake or waffle would be easily accepted as a healthy option for kids and if flavored properly could be an easy on the go meal eaten by hand for kids.  Currently, most organic pastas are smaller specialty manufacturers, making it difficult for the consumer to be loyal to one brand and it also keeps pasta at a premium price point. Refrigerated fresh pasta is also an option. 30
  • 31. Super FoodsWhile all Key Opinion Leaders agreed that organic foods are healthy and better for you,they made clear that “super foods” could be more prevalent.  “Super Food” is an unscientific marketing term, it is used to describe food with high nutrient or phytochemical content with few properties considered to be negative. One example of a super fruit is blueberries, other examples of “super foods” include broccoli, spinach, pumpkin, bananas, pineapple and tomatoes which are all rich in various nutrients.  Two (2) “super foods” stood out throughout the Key Opinion Leader interviews: Chia Seeds and Quinoa.  Chia Seeds and Quinoa is a simple addition to nearly any food such as pasta, salads, granola, fruits, etc.  Perhaps most importantly, Chia seeds and Quinoa are “filling” which my reduce over eating. Chia Seeds Quinoa 31
  • 32. Chia SeedsBenefits of Chia Seeds (Source: Edible Paradise)  Help weight loss. Chia seeds are popular for weight loss. They reduce food cravings by preventing some of the food that you eat from getting absorbed into your system. This blockage of calorie absorption makes them a great diet helper.  Feel fuller faster: They can also help your diet by making you feel full. This is because they absorb 10 times their weight in water, forming a bulky gel.  Hydration for athletes: They are also great for athletes because the "chia gel" can hydrate the body.  Reduce your blood pressure: Theres evidence to suggest they can reduce blood pressure.  Omega-3: They are the richest plant source of Omega-3 (the vital fats that protect against inflammation such as arthritis and heart disease). In fact, they contain more Omega-3 than salmon.  Benefits for diabetes: Because chia seeds slow down how fast our bodies convert carbohydrates into simple sugars, studies indicate they can control blood sugar. This leads scientists to believe chia seeds may have great benefits for diabetics. 32
  • 33. QuinoaBenefits of Quinoa (Source: Benefits of Quinoa)  High source of protein. One cup of quinoa has 9 grams, which trumps the protein-rich egg (6 grams). Quinoa, which contains all 8 of the essential amino acids, is a complete protein.  Quinoa is a satisfying, low-cholesterol source of complex carbohydrates.  Complex carbohydrate, quinoa acts an internal cleanser, easing the progress of food through the digestive tract.  Quinoa is a flavorful source of plant-derived calcium. Calcium builds and maintains bones and teeth, helps regulate the contraction of the heart, and facilitates nerve and muscle function. One cup of cooked quinoa contains 30 milligrams of calcium.  A cup of cooked quinoa offers fifteen percent (15%) of the U.S. Recommended Daily Allowance of iron. 33
  • 34. Monk FruitBenefits of Monk Fruit (Source: Monk Fruit- All natural sweetness)  A naturally sweet way to reduce sugar and calories, this fruit is native to China.  The monk fruit is a small gourd-like fruit, spherical in shape measuring 5 to 8 cm and 4 to 6.5 cm in diameter  It has traditionally been grown on steep forested mountains in small family orchards,  For centuries this fruit has been used to sweeten tea and other beverages.  The Monk Fruit was mentioned by two (2) KOL’s as an alternative to sugar as a sweetener 34
  • 35. Foodie TrendsAs healthy eating becomes more prevalent, “health foodies” will want to continue todifferentiate themselves. Key Opinion Leaders believe these “health foodies” willdistinguish themselves in the following ways:  Buy local, within 100 miles of home or at least within the USA.  Avoidance of Genetically Modified Food and chemicals in foods  Shop at local health food stores and farmer’s markets  Simple, easy to read labels listing all ingredients  Prepare food from scratch or easily assemble  Focus on organic products 35
  • 36. Identified Opportunities OutsideBased on Key Opinion Leader feedback the following areas were also identified as areasof improvement in consumer nutrition:  Dairy (milk, yogurt, smoothies, etc.)  Ethnic foods  Meats (specifically beef, chicken, and fish) 36
  • 37. DairyAs referenced on slide 14, Dairy is the second largest organic food category and the fastestgrowing segment.  Key Opinion Leaders noted that dairy is seen as a “gateway to organic food” as a whole.  Entry organic consumers typically choose milk as their first “organic” product due to its simplicity. Often parents start with the dairy products when they have their first child.  Yogurt was also mentioned as a dairy based organic product that is typically purchased. 37
  • 38. Dairy Continued.In addition to milk and yogurt, smoothies are a growing segment.  All Key Opinion Leaders specifically mentioned smoothies as one of the fastest growing areas of the healthy eating on the go lifestyle.  Most smoothies are milk or dairy based.  Smoothies are most commonly being used as a snack or meal replacement. 38
  • 39. Ethnic FoodsTwo (2) Key Opinion Leaders identified ethnic foods as an area of opportunity.  Ethnic food does not include pizza.  Both of these Key Opinion Leaders named “burritos” as an example that was underserved in the frozen section. This included a breakfast wrap as well.  Interviewees noted that organic meal components (veggies, fruits, etc.) are present in the frozen aisle, but organic frozen ethnic foods are non-existent beyond Amy’s. 39
  • 40. Unmet Needs
  • 41. Unmet NeedsThe interviewed Key Opinion Leaders identified three (3) primary areas of unmet needsas it relates to health foodies and organic foods.  Frozen and refrigerated foods (all agreed this segment was underserved)  Breakfast products/opportunities  “On the Go” easy to prepare foods 41
  • 42. Frozen and Refrigerated Foods  As mentioned numerous times throughout this report, the frozen and refrigerated food section is perceived to be underserved and in need of competition.  Healthy consumers and shoppers have limited “organic” and “healthy” food options in the refrigerated or freezer aisle as a whole.  Based on Key Opinion Leader feedback, there appears to be only a couple of major players in the space…Amy’s and Alexia brands.  A minority of Key Opinion Leaders mentioned Cascadian Farms as a notable brand in the freezer aisle. 42
  • 43. Breakfast  Of all the meals and snacks, it is evident that breakfast has become “forgotten.”  A majority of Key Opinion Leaders noted that cereal has become a stagnant food, although it can still be rejuvenated with proper education.  Simply stated, there are not many “organic” or “healthy” food options when it comes to breakfast.  Breakfast has become the “lost meal” due to the on-the-go lifestyle that so many Americans lead.  Most healthy breakfasts today consist of yogurts and granola, which are not necessarily ideal for the on-the-go lifestyle. 43
  • 44. On-the-Go Meals  Within the organic and healthy food space, Key Opinion Leaders believe there is a gap in regards to on-the-go prepared foods/meals.  These foods should be pre-prepared and easy to eat.  Hand-held foods for families with kids on the go, eating before school or on the way to different after school activities like sports.  There is an opportunity for low calorie, high protein, weight loss meals.  One Key Opinion Leader specifically recommended a “compound salad that is easy and ready to go. No preparation necessary.”  It is important that these meals or foods be pre-assembled. These consumers are searching for ease of use and healthy alternatives. 44
  • 45. www.harrisonhayes.com 45