Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
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Gluten-free What is Next?
1. ๏ถ Fast & Fun Facts
๏ถ Free From and Gluten Free
๏ถ Define the scope of the Canadian gluten-free market
market
๏ถ Provide some comparisons to US gluten-free activity
activity
๏ถ Help us understand the gluten-free consumer
๏ถ Provide some understanding on future market activity
Gluten-Free What Is Next?
2. Setting The Stageโฆ
Secondary Research & Package Facts & Markets & Markets
Research Reports:
๏ถ Sales data for publicly trade companies
๏ถ Consulted with gluten-free manufacturers & retail outlets
๏ถ Utilized 2012 consumer survey database from Canada
3. Setting The Stage 9.0 MM Canadians are gluten free
1% have celiac
disease with only 10%
diagnosed
6% have gluten-
sensitivity
23% are gluten
avoiders for non
medical reasons
6. Social Media Influence on Gluten-Free
โข Twitter โ I am eating a gluten-free cake
Fa Face Book โ I like eating a gluten-free cake
โข You Tube โ This is how I eat my gluten-free cake
โข Linked In โ My skills include eating gluten-free cake
โข Instagram โ Hereโs a classic pic of the gluten-free cake I ate
โข Blog- Hereโs my gluten-free cake eating experience
โข Pinterest โ Hereโs my recipe for the gluten-free cake
โข Four Square โ This is where I am eating the gluten-free cake
Social Media Influences on Gluten-Free
7. NPD IN GLUTEN/LACTOSE FREE CONTINUES TO BUILD
New product introductions of gluten-free & low/no/reduced lactose food
& drink, globally, 2009-2013
Source: Mintel GNPD
7
NPD in Gluten/Lactose Free Continues
to Grow Worldwideโฆ
11. Market growth is projected to continue due to:
๏ถ Testing of both CD & GI will continue to improve, and more
be tested โ therefore more people will be diagnosed
๏ถ More young people will become more aware of intolerances /
sensitivities โ and will be more likely to act upon them
๏ถ More young people will also see GF as a healthy alternative
๏ถ More innovation will drive appeal and interest in the
๏ถ As product quality improves, barriers to purchase will be
๏ถ Canada is following the US with the category:
โข Becoming more normalised & sophisticated
โข Increased distribution & space in traditional retail
๏ถ Growth of the Free-From category (Free-From means not
desirable)
Canadian Market Size???
13. Market Size?
๏ถ Key Segments of the gluten-free category in Canada are:
Category $ Value % Share
Snack Foods 193.9MM 27.7
Breads/Cereals/Grains 173.6MM 24.8
Frozen or refrigerated
prepared foods
143.5MM 20.5
Sweet baked goods 61.6MM 8.8
Ingredients & baking
mixes
60.9MM 8.7
Dry packaged dinner/side
dish mixes
55.3MM 7.9
Other 11.2MM 1.6
Canadian Market Size???
14. โข Canada versus the US in Key Categoriesโฆ (est numbers using several sources)
Category $ US % US $ Canada % Canada
Breads/Cookies/Snacks $2,524 B 25.5 $336.5 MM 52.7
Dairy/dairy Alternatives $2,249 B 22.7 NA NA
Beverages $1,977 B 20.0 NA NA
Meats/MeatAlternatives $ 868.0 MM 8.8 $86.8 MM 13.6
Frozen/RefrigeratedMeals $ 868.0 MM 8.8 $112.5 MM 17.6
Condiments/Seasonings/
Spreads
$ 819.0 MM 8.2 $8.7 MM 1.4
Dinner Mixes/Sides/Pasta $ 45.6 MM 0.5 $43.3 MM 6.7
Ingredient/Baking Mixes $ 497.0 MM 5.0 $49.7 MM 7.8
Subtotal $9,867.6 B 100.0 $637.5 MM 100.0
Canada Vs US Market Size???
15. Category size is quite different when
Canada and the US are compared:
๏ถCanada does not permit gluten-free on
products like water, dairy (i.e. if it does
not contain it originally)
๏ถMeat category falls under different
legislation in the US
๏ถCanada is more developed and more
medically driven vs the US celebrity
driven market
Canada vs US Market Size???
29. Packaged Facts defines the marketers as:
๏ง Dedicated those who make only
gluten-free items (i.e. Kinnikinnick,
El Peto, Enjoy Life etc.)
๏ง Committed - known for health oriented
lines (i.e. Natureโs Path)
๏ง Accommodating โ reformulating existing
items and adding gluten-free versions
Key Players
30. Key Players Competitive Landscape
๏ถ New product launches have been the most
widely used strategy in this market.
๏ถ Partnerships and collaboration of the business
entities is the second most sought after growth
strategy.
75% New
products
7%
Expansion
12%
Agreements
6% Mergers
&
Acquisitions
32. Udiโs has a 9% share of the
ยฃ9.1 MM GF Bread Category
Udiโs leads the ยฃ15 MM
GF Bread Category
โฆAnd Will Double Again in 2013
Udiโs Gluten Free
Foods = 73% of
Category Growth2011 2012
SPINScan latest 52 wks ending 12-26-11
Key Players โฆ Boulder Canadian Growth
33. ๏ง The key players in the market have
tended to be the traditional players
๏ง Mega marketers have not been picked
up by this report
๏ง Research numbers for 2014 should
demonstrate some significant changes
in the market penetration and SOM by
the new players
Key Players โฆ
36. ๏ง The mega-marketer has now entered the category
and 2014 will certainly be interesting from a
category growth and share taking perspective
๏ง Private label and mega marketers are expected to
increase the number of offerings substantially and
market growth is expected to continue to
demonstrate strong growth
๏ง Key categories of interest are: deli meats, vodka,
almond milk, tortilla chips, dressings & marinades
๏ง Beer, baked sweets and bread products are also
expected to show strong growth and interest by
consumers
Growth Opportunities โฆ
37. New product introductions of gluten-free & low/no/reduced lactose food & drink,
globally, by company, 2009-2013 (% of launches)
37
Source: Mintel GNPD
Launches By Companyโฆ
38. Private Label share of new introductions of gluten-free & low/no/reduced
lactose food & drink, globally, 2009-2013
2013 year to August
Source: Mintel GNPD
38
Retailer Vs Brand Launchesโฆ
39. The next natural products consumer
Stealth Health: How to Sneak Age-Defying,
Disease-Fighting Habits into Your Life
without Really Trying.
๏From hemp to celery
๏Walking & napping
๏Small changes that make a big difference
What Is Next? Stealth - Healthโฆ
40. ๏ง The gluten-free market appears to be substantive
($700.0MM) and growing in Canada (+10% per year)
๏ง The market size is still not clearly defined as many
category segments have not been included (e.g. deli
category, dairy)
๏ง The estimated 2.5% to 30% of Canadians consuming
gluten-free products appears consistent with other
category research
๏ง The Canadian consumer seems to come from the โFree-
Fromโ category and appears to be in the category for the
long term based upon a need to avoid certain allergen
elements in their food (i.e. dairy, nuts, egg, gluten)
Conclusionsโฆ
41. ๏ง The report talks to consolidation of gluten-free
specialty companies however, Mega Marketer
participation demonstrates some very different
market activity & dynamics with larger CPG
organizations playing very significant roles
๏ง Key categories continue to be snack foods and
baked goods
๏ง However, deli meats, beer, vodka, dressings &
marinades are showing strong growth with
numerous new product entries
Conclusionsโฆ
42. ๏ง Canada and the US have some distinct
differences in product usage, consumer
rationale and legislation
๏ง Ontario appears to be a large under serviced
market opportunity and Quebec seems over
serviced
๏ง The retail landscape has shifted to a grocery
dominance but box store and Walmart endless
aisle strategies are important with further
market shifts expected
๏ง Online is still under developed in the category
Conclusionsโฆ
Conclusionsโฆ
43. ๏ง Consumers are not limited in definition by sex,
age, income or regionality (i.e. everyone is
gluten-free)
๏ง The Canadian consumer seems to be engaged
in the category for the long haul as they are
motivated by medical and health reasons and
not celebrity endorsement
๏ง The new product entries by retailers and non
dedicated mega-manufacturers has really
provided stimulus to the category and this
strong growth is expected to continue
Conclusionsโฆ
Editor's Notes
Blue line GF
Red GMO
Yellow Allergy
With advocacy groups decrying the use of GMO crops and trying to label products that contain them, itโs worth assessing whether the rhetoric goes beyond activists to everyday consumers. The Hartman Groupโs new special report, โGMO Perceptions, Knowledge and Labeling,โ finds the population thatโs averse to GMOs looks much like America, demographically. Theyโre passionate about the subject, but ill-equipped to act on their intent. Many do not use the most dominant GMO-free seal and do not trust organic as a proxy for non-GMO. More broadly, consumers are confused about GMOs โ what they are, what foods theyโre in, how they affect health and the environment. Despite not understanding many of these issues, most consumers instinctively feel concern is warranted. In fact, four out of ten consumers say they are avoiding or reducing GMOs in their daily diet
CBC survey 75% concerned 10% donโt even know what GMO is
Over 80% is gluten free
Although Brazilians are not very used with the term celiac, almost all have heard about gluten because it is law here, all the industrialized foods and drinks are labeled โcontains glutenโ or โdoes not contain glutenโ (translation: โCONTรN GLรTENโ or โโNรO CONTรN GLรTENโ). In despite of this, most people here donโt know exactly what does it means. The translation to barley, oats, wheat and rye is โ malteโ, โaveiaโ, โtrigoโ and โcenteioโ
Brazil is an enormous country and gluten free food available depends on which city you are. For example, in Rio de Janeiro City, Sรฃo Paulo City, Curitiba, Porto Alegre and other big towns you can find easier to buy whatever you need. The best thing to do is visiting the site www.acelbra.org.br (Brazilian Celiac Foundation). At this site you can find lots of information about products, where to buy it, doctors, etc. If you are going to Rio de Janeiro, visit www.riosemgluten.com.br too.
With the exception of Ontario and the Maritimes there appears to be more gluten-free retail outlets than consumers
Quebec has the highest development of retail outlets to consumers
Quebec has the smallest segment of consumers needing/desiring gluten-free (6% of pop)
Ontario has the largest group of consumers needing/wanting gluten-free (58% of pop)
Traditional grocery stores and Walmart are the key retail outlets for purchasing gluten-free foods in Canada
Specialty grocery โ natural channel & gourmet are important
Wholesale club stores are also important
Canadians are different from Americans in their retail channel of choice
Online purchases are increasing and as of 2013, we saw a doubling of the number on online outlets
Nutritional value โ health food halo
Lose weight โ low carb diet
Digestive health
The market is really quite evenly segmented by age, income, sex and regionality
There is a slight female skew
Roughly 60% are over age 35
Ontario & BC account for 69% of the market
55% have an income in access of $50.0K
Although the reasons for use of gluten-free food is varied it is more substantive and disease/condition related than emotional
The primary reason for buying gluten-free is that the food is perceived to be healthier (34%)
Household allergy & sensitivity is also a strong driver for 27%
Weight management is important to 24%
The perception of gluten-free being higher quality (18%)
A household member has celiac disease (14%)
Treatment of IBS autism, ADHD etc. (11%)
I buy products and they just happen to be gluten-free (31%)
Example in the US 17,000 new gf products in the last year
Cereal bars 297 new ones
Savoury snacks 272 new ones
Potato chips 162 new ones
Chocolate 149 new ones
Hard candies 143
In Canada 69 new manufacturers entered the market 2012
M&A Boulder Brands 2012
Agreements Dr Schar & Sysco Foods or Genius Foods & Carrefour in France
Expansion & Investments Dr Schaer invests in plant in New Jersey
Globally โ more lactose free PL launches than gluten free
But PL share appears to be on the up in both cases
Globally โ more lactose free PL launches than gluten free
But PL share appears to be on the up in both cases