Spice Presentation

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gravitytank internal project focused on discovering ways to innovate the spice category.

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Spice Presentation

  1. 1. AT WORK
  2. 2. 100% OVER THE LAST 5 YEARS SPICES SPICES ARE RISING IN POPULARITY U.S. SPICE IMPORTS HAVE INCREASED FIRST RESEARCH, SEASONING & DRESSING MANUFACTURING, 2012 TODAY’S PANTRY CONTAINS ABOUT 40 COMPARED WITH 10 IN THE 50’S 2010 LAWRY’S “WHAT’S YOUR FLAVOR” SURVEY SEA SALT WAS ONCE A COMMODITY NOW THERE ARE AT LEAST 15 DISTINCT VARIETIES SALTWORKS.US OVER 500 NEW SPICES AND SEASONINGS ARE LAUNCHED EACH YEAR MINTEL, SPICES AND SEASONINGS, 2009
  3. 3. project spice The U.S. market is growing steadily, and margins are strong. $ billion 5 4 3 2 2004 2006 2008 2010 2012 U.S. Market Size, Spices and Seasonings GRAVITYTANK | PROJECT SPICE Source: Mintel, Spices and Seasonings 3 Spices are big business. MARKET SIZE 4 Bil!lion AVERAGE GROWTH RATE 2004-2010 4%/!yr.
  4. 4. IN 2009, U.S. GOURMET FOOD SALES REACHED 31 BY 2014, MILLION PEOPLE WATCH COOKING SHOWS U.S. GOURMET FOOD SALES WILL GROW TO $8!7 ! BILLION $6!7 BILLION ! FOOD CULTURE EXPLODED HAS Sources: Mintel, Cooking Enthusiasts, 2011. Food Technology Magazine, 2011. GRAVITYTANK | PROJECT SPICE
  5. 5. project spice 6 5 4 GRAVITYTANK | PROJECT SPICE $ billion 3 2009 2012 2014 5 Could spices grow as fast as gourmet food? GOURMET FOOD IS PROJECTED TO GROW 30% BETWEEN 2009 AND 2014 MINTEL SPICES AND SEASONINGS BUT SPICES ARE ONLY PROJECTED TO GROW 16% OVER THE SAME TIME PERIOD MINTEL SPICES AND SEASONINGS
  6. 6. WHERE IS THE SPICE IN SPICE? No one comes to the spice aisle to be inspired. GRAVITYTANK | PROJECT SPICE
  7. 7. SPICES AND FOOD ARE INTIMATELY CONNECTED We set out to make spices as exciting as food. GRAVITYTANK | PROJECT SPICE
  8. 8. Mission Get smart about spices and how people use them. GRAVITYTANK | PROJECT SPICE
  9. 9. GRAVITYTANK | PROJECT SPICE FRAMING THE PROBLEM IN-HOME INTERVIEWS SHOP-ALONGS EXPERT INTERVIEWS IN-HOME PROTOTYPES 9
  10. 10. ALL HOMES HAD THESE SPICE CATEGORIES EVERYDA Y OCCASIONAL RARELY EVERYDAY Purchased frequently, in high volume. Used freely, creatively & without a recipe. On the counter. ! OCCASIONAL Purchased infrequently. Used seasonally or in specific recipes. In the cabinet or drawer. ! RARELY Rarely or never purchased. Rarely used at home. Purchased in prepared food/sauces. GRAVITYTANK | PROJECT SPICE
  11. 11. project spice Framing the business opportunity. GRAVITYTANK | PROJECT SPICE 11 EVERYDAY OCCASIONAL RARELY INCREASE USE OF EVERYDAY AND OCCASIONAL SPICES. EVERYDAY OCCASIONAL RARELY INTRODUCE NEW SPICES. How can we grow the spice category?
  12. 12. Mission !Understand why people use spices and why they don’t. GRAVITYTANK | PROJECT SPICE
  13. 13. DAILY DINING Getting food on the table with minimal fuss. WHY SPICE? Spices are often what make a meal “homemade”. ! PAIN POINTS Spice makes or breaks a dish— cooks need control. Spices are stale, messy and get lost in the cabinet. !! MEET SHASHI “I learned to cook Indian by watching my mom. I just eyeball the amounts. But with Mexican I’m a little out of my element. I use taco seasoning from a packet [but would rather not].” !!! GRAVITYTANK | PROJECT SPICE
  14. 14. DISCOVERING Taking fun risks with new cuisines. WHY SPICE? Spices are essential to mastering a new cuisine. !! PAIN POINTS Don’t know what the spice does. Grocery store spices are uninspired. Experimentation is costly. !! MEET JENN “Thai food is kinda the next frontier for me. I mean we love it but I don’t know how to make it. Like lemongrass—how do you use that? I don’t know but I want to.” GRAVITYTANK | PROJECT SPICE
  15. 15. DOCTORING UP Adding flavor to prepared foods. WHY SPICE? People don’t spice, they flavor. !! PAIN POINTS No time to cook. Meal seems lazy and generic. Just want flavor, not a process. !! MEET JENNY “I cook a lot with Boca burgers and stuff that I can throw in the microwave and maybe add a couple things to maybe make it taste a little bit better.” GRAVITYTANK | PROJECT SPICE
  16. 16. project spice Insights lead to opportunity areas. DAILY DINING DISCOVERING DOCTORING UP EVERYDAY EASE GRAVITYTANK | PROJECT SPICE SHORTCUTS TO FLAVOR QUICK ACCESS TO FLAVOR AND VARIETY. PASSPORT TO THE NEW ELEVATING THE SPICE CATEGORY WITH INSPIRATION AND LOW RISK TRIAL. PROVIDING CONFIDENCE, CONTROL AND EASE TO SPICING EVERYDAY MEALS. INSIGHTS OPPORTUNITY AREAS
  17. 17. Mission Create solutions to address these opportunities. GRAVITYTANK | PROJECT SPICE
  18. 18. GRAVITYTANK | PROJECT SPICE MAKING TO LEARN PROTOTYPING TESTING & RE-MAKING REFINING 18
  19. 19. project spice Opportunity areas lead to platforms. DAILY DINING DISCOVERING DOCTORING UP EVERYDAY EASE GROWTH STRATEGY GRAVITYTANK | PROJECT SPICE SHORTCUTS TO FLAVOR PASSPORT TO THE NEW KERALA KICK IMPRESS WITH FLAVOR PLATFORMS QUICK ACCESS TO FLAVOR AND VARIETY. ELEVATING THE SPICE CATEGORY WITH INSPIRATION AND LOW RISK TRIAL. PROVIDING CONFIDENCE, CONTROL AND EASE TO SPICING EVERYDAY MEALS. INSIGHTS OPPORTUNITY AREAS GROWING BEYOND THE CATEGORY. BRINGING NEW CONSUMERS INTO THE CATEGORY. BRINGING NEW NEWS TO THE CATEGORY.
  20. 20. KICK ADDING A QUICK BURST OF FLAVOR TO GO-TO MEALS Grow spice category by pursuing post-cooking occasions, offering unique flavors, and turning spices into an impulse purchase. INCREASE DOCTORING UP NAMES CLEARLY DEFINE FLAVORS RATHER THAN FOCUSING ON SPICES EASY TO DISPENSE AND LESS MESSY THAN SAUCES FLAVORS TAILORED TO REGIONAL AND SEASONAL TASTES PORTABLE, CAN BE USED ON THE GO PACKAGING SHOWS FOODS THAT PRODUCT CAN BE USED ON GRAVITYTANK | PROJECT SPICE
  21. 21. project spice KICK: Introduce the occasion, then extend and grow. PHASE 1: INTRODUCE NEW FOODS: ! ICE CREAM, FRUIT, VEGETABLES GROCERY MASS CLUB PHASE 2: EXTEND PHASE 3: GROW PAIR WITH GO-TO FOODS LIKE PIZZA NEW OCCASION: Rub/Marinades ! NEW FLAVORS: Regional/Seasonal !! HATCH CHILI & LIME AGED CHEDDAR & ONION SPICY CINNAMON & SAGE GRAVITYTANK | PROJECT SPICE 21 CHANNEL PRODUCT
  22. 22. project spice KICK: Place product right next to tonight’s dinner. FOODS LIKE PIZZA AND ROAST CHICKEN CAN BE CUSTOMIZED FOR EACH FAMILY MEMBER USING DIFFERENT KICKS KICK TRANSFORMS PREPARED FOODS INTO OPPORTUNITIES FOR MORE VARIETY AND BETTER FLAVOR PLACING NEXT TO STAPLE FOODS ENCOURAGES IMPULSE PURCHASES INDIVIDUAL UNITS DRIVE TRIAL WHILE REPEAT USERS CAN PURCHASE LARGER QUANTITIES GRAVITYTANK | PROJECT SPICE 22
  23. 23. project spice KICK: Product can also be used on foods like ice cream. CLIP STRIPS DRAW ATTENTION AND ENABLE CROSS PROMOTION WITH OTHER BRANDS SMOKY SPICE SWEET HEAT FREEZER DOOR DECALS CALL OUT UNIQUE FLAVOR PROFILES PAIRINGS WITH MULTIPLE TYPES OF FOODS ESTABLISH PRODUCT VERSATILITY GRAVITYTANK | PROJECT SPICE 23
  24. 24. INFUSIONS project spice SHELF PLACEMENT SUPPORTS REPEAT, ROUTINE PURCHASES ONCE BRAND IS ESTABLISHED KICK: Product appears in the condiment aisle. PLACEMENT IN CONDIMENT AISLE ASSOCIATES PRODUCT WITH POST-COOKING FLAVORING OCCASION DIFFERENTIATED FLAVORS AND PACKAGING REDUCES CANNIBALIZATION OF CONDIMENTS AND SPICES GRAVITYTANK | PROJECT SPICE 24
  25. 25. project spice Business Case: KICK Potential Year 1 revenue from mixture of organic growth and stealing share from condiments. COMPETITION KICK WILL BRING NEW USERS INTO THE MARKET AS WELL AS SOURCE VOLUME FROM CONDIMENTS, SAUCES AND “FINISHING” SPICES SUCH AS SALT & PEPPER Source: Mintel Spices & Seasonings, 2009 GRAVITYTANK | PROJECT SPICE 25 114M SALT MARKET SIZE $410M BBQ SAUCES MARKET SIZE $646M DRY SAUCES MARKET SIZE $170 MM PEPPER MARKET SIZE $244M GO TO MARKET PLACE OUTSIDE OF SPICE AISLE; KICK CAN INCREASE SALES OF PAIRED FOODS ! SET LAUNCH PRICES NEAR TO THOSE OF CONDIMENTS: $3.99/20 PACKETS, $4.99/JAR ! EXTEND PLATFORM TO HIGH VELOCITY, EASILY-CUSTOMIZED FOODS LIKE DESSERTS, DRINKS, FRUIT AND VEGGIES ! DRIVE TRIAL WITH DISCOUNTS, BUNDLING AND IN-STORE SAMPLING U.S. HOUSEHOLDS 38% OF IN-HOME MEALS ARE LOW/MEDIUM PREP 3% HOUSEHOLD PENETRATION $4.50 IN YEAR ONE AVERAGE PRICE PER UNIT 2.5 AVERAGE UNITS PER HOUSEHOLD PER YEAR = $14.6M x x x
  26. 26. IN HOMES • Initial concepts tested hypotheses around freshness and smaller quantities. • Freshness did not matter to consumers, but they were interested in portability and buying smaller quantities. BEHAVIOR LABS • Packs of single servings were highly desirable, especially for less common spices. • In contrast, spices that are more commonly used should be sold in large containers. INTERNAL EXPLORATION • Two design directions: 1) single servings in a “tea bag” box and 2) an upgraded single serving pouch. • The upgraded pouch stands upright to avoid spilling, contains an integrated shaker and uses card stock to show photos of paired foods. FINISHED PRODUCT • Tea box and upgraded pouch combined to create a single product. • New product facilitates both at-home and on-the- go use. • Also sold in bottles for more frequent users. KICK: Evolution of an Idea GRAVITYTANK | PROJECT SPICE

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