Every day there is more information available that influences how consumers not only think about how their food affects them, but where it is coming from and how it can be improved. As their attitudes shift, their demands become stronger on the food retail industry to become more transparent, organic and digitally integrated. METTLER TOLEDO explores these shifts, and how they are impacting every area inside and outside the store. There is new technology not only in the stores themselves, but in where the food is coming from as well. This webinar looks at how the industry is changing, why it is changing, and where it might be going in the future. The following topics are discussed in this webinar: • A look at the Consumer Landscape • The Food Retail Industry Response • More Mindful Eating and Awareness • New Technologies In and Out of Stores To view this free webinar, visit http://www.mt.com/us/en/home/library/on-demand-webinars/retail-scales/retail-landscape.html.

1. The Food Retail Landscape
All Rights Reserved.
© 2017 METTLERTOLEDO
A look at where the food retail industry is and
where it is going

2. Agenda 2
For internal use - Confidential
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
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6
7
8
9

3. A look at the Consumer Landscape
Generational decision making and outlooks
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For internal use - Confidential
 50% of current
retail sales
 Most likely to
create grocery
lists
 Price focused
Baby Boomers . Generation X. .
 Spend most $$
monthly on
groceries
 53% tried a new
product on their last
shopping trip
 Most frequent
shoppers once they
join a loyalty
program
Millennials .
 "Generation Y"
 Product freshness,
fiber and whole grain
content
 Shop organic and
more aware of
GMOs
 79% are on social
media
 Largest group of
consumers
worldwide by 2020
 Online research
before purchases
 Socially conscious
 Experiences >
material items
Generation Z .
Source: Statista

4. A look at the Consumer Landscape
How attitudes and demographics are shifting
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For internal use - Confidential
50% [of people in the
U.S.] have said their diet
could be healthier
28% want minimal
processing of their food
25% want a shorter list
of ingredients
Demographic Shifts expected to continue:
"…task of grocery shopping is being
divided among various family members.
Nearly 60% of households share shopping
responsibilities." –FMI
Ethnic supermarket revenue in 2014
was $30.4 billion and should grow to
$35.2 billion in 2018
According to the 2015 Supermarket Guru Grocers Association Consumer Survey:

5. A look at the Consumer Landscape
As consumer attitudes change, so do their priorities
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For internal use - Confidential
• Fresh, less processed foods
• Transparency in labelling
• Online and mobile shopping
gaining momentum
What are they looking for?
3 in 4 shoppers are actively
switching to healthier
versions of at least one type
of food in 2016
-FMI Survey
81% of shoppers will
purchase something not
on their list, at least
occasionally
The Halo Effect

6. Agenda 6
For internal use - Confidential
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
5
6
7
8
9

7. The Food Retail Industry Response
How stores in the Food Retail industry are responding to market shifts
For internal use - Confidential
7
Average super-
market square
footage since
2006
"According to…Prosper
Insights' & Analytics'
November 2016 survey,
7.7% of U.S. consumers
shopped online for groceries
in the past 30 days, up from
5.7% two years ago." –Retail
DIVE
What does this mean for
grocery stores?
Figuring out the last mile
Retailers are fighting the online giants by
introducing food delivery & in-store
pickup.
They have also been merging and
acquiring other companies to improve
their success.

8. The Food Retail Industry Response
New competition from smaller and European markets
Lidl
 Largest discount grocery chain
in Europe
 Coming to east coast in 2018
 Aldi is top competitor
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For internal use - Confidential
Farmers Markets
 Promote sustainability
 On the rise in cities and
small towns

9. Agenda 9
For internal use - Confidential
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
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6
7
8
9

10. More Mindful Eating and Awareness
Changes in stores as the Organic and Prepared Foods industries grow
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For internal use - Confidential
$45 billion
spent on organic food
annually in the U.S.
StockPrices
 Whole Foods
 Sprouts
 Fresh Market
76% of consumers'
Fresh Prepared dollars
are spent at their primary
Fresh Prepared store.
Source: FMI

11. More Mindful Eating and Awareness
How is Sustainability defined in 2017?
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For internal use - Confidential
Sustainability
Most important trend of
2017
Definition continues to
evolve in regards to how
our food is produced, where
it comes from, how much is
wasted and what we can do
to improve processes.
Recycled
Donated
Disposed of
Destination of Food Waste (in pounds),
Retail/ Wholesale Respondents 2016
1,172.3M
597M
391M
Source: FMI
54.3%
27.6%
18.1%
Augmented transparency
Food waste reduction
Shared responsibility of environmental goals
Wonky produce

12. Agenda 12
For internal use - Confidential
1 A look at the Consumer Landscape
2 The Food Retail Industry Response
3 More Mindful Eating and Awareness
4 New Technologies In and Out of Stores
5
6
7
8
9

13. New Technologies In and Out of Stores
How companies are responding to new attitudes through technology
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For internal use - Confidential
Urban Farming
Enhanced Foods
Cellular Agriculture

14. New Technologies In and Out of Stores
New in-store technology solutions
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For internal use - Confidential
Kroger Technologies Blue Yonder Replenishment
Optimization
• Machine learning solution to provide
higher levels of control in managing
fresh assortments in the stores
• Utilizes multiple influencing factors
in creating predictions
• METTLER TOLEDO has been working
with Kroger to implement a check-out
free solution in all stores
• Digitally enabled shelves now in
testing phases
• ClickList allows customers to avoid the
shopping experience all together with
order-ahead and in-store pickup.

15. Thank you!
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For internal use - Confidential