2. Global Trends
what is on consumersā mind?
how big is this market?
what do consumers find
important?
who/ what is influencing
is this market growing? these trends?
what products are out there?
what benefits are
consumers looking for?
2
4. Sports foods is more than just sports nutrition
Energy & Nutrition Bars
Address both daily and sports nutrition needs, which
are high in protein and/or carbohydrates.
Sports Nutrition
Bars, gels, powdered- and RTDās containing
protein, creatine, amino acids for serious athletes and
gym-goers. To build muscle mass, improve physical
endurance and boost energy.
Sports Drinks
RTD mainstream sports beverages (isotonic, hypotonic
and hypertonic) containing water, minerals and glucose
to replace lost body fluids and boost energy.
4
6. Competition and Retailing Trends
Current offerings in sports nutrition ā Maxinutrition (#1)
ā¢ Energy Drinks
ā¢ Energy Gels
ā¢ Supplements
ā¢ Protein bars
ā¢ Powdered protein drinks
ā¢ RTDs clear beverages
ā¢ RTD protein shakes
6
8. TREND: OVERVIEW
Trend: rising health awareness
Rising health Physical appearance
awareness and body weight and Rising global obesity
shape
Rising health awareness is being driven by both negative factors such as
global obesity and rising consumer awareness of the positive advantages of
optimising physical appearance
9 Source: Datamonitor 2010: Exercise and Sports Nutrition: Consumer Trends and Opportunities 9
9. TREND: OVERVIEW
Trend: rising exercise participation
Lack of time is a
Increase in the amount Men do exercise
barrier to do more
of exercise more than women
sports
Exercise rates are rising, though there remains a clear disconnect between its
perceived importance and the attainment of health goals
10 Source: Datamonitor 2010: Exercise and Sports Nutrition: Consumer Trends and Opportunities 10
10. TREND: OVERVIEW
Trend: consumersā sports nutrition buying habits
driven by distinct consumer needs
Physical appearance New consumer Sports nutrition
and fitness goals groups lead to new broadening the use of
change buying habits solutions their products
The emergence and future evolution of unique sports nutrition consumer
segments offers significant potential to the industry
11 11
11. Competition and Retailing Trends
Segmentation broadening the sports nutrition market
ļ¼Athletic look ļ¼Fit & Healthy ļ¼Endurance ļ¼Muscle mass ļ¼Toned body ļ¼Loose weight
ļ¼Lean muscles ļ¼Improve fitness ļ¼ Lean body ļ¼Burn calories
ļ¼ Sixpack ļ¼ Stamina ļ¼ Slim body
ļ¼ Muscular look ļ¼ Endurance ļ¼ Burn calories
ļ¼ Strength
12
12. Driving Forces of Sports Nutrition
Consumer segmentation shapes innovation by shifting its target
ā¢ A wider consumer base
ā¢ From adult men to other consumer types
ā¢ Sports nutrition no longer exclusively for men wanting to develop and show off powerful muscles
ā¢ Most people combine going to the gym with a healthy diet
ā¢ Develop other applications or formulations for different segments with different consumer needs
Muscle
Energy and Health & Young Elderly Whatās
mass Women
endurance fitness athletes athletes next?
rebuild
13
13. European Consumer Insights
why does (s)he eat that?
how does (s)he assess the quality
of a product?
who is influencing her purchase
decisions?
when does (s)he eat
that?
what does (s)he eat?
14
15. TREND: TOPLINE EVIDENCE
Half of the people ensure an adequate amount of weekly
exercise
Generally, to what extent are you trying to do the following?
Ensure you get an adequate amount of exercise each week
(% - share of respondents)
All the time
Most of the time
39
27 32
32 31
30
26
24 20
22 19 19
17 15 16 14
9 10
USA
UAE
Spain
Germany
France
UK
Russia
China
Brazil
16 Source: Datamonitor 2010: Exercise and Sports Nutrition: Consumer Trends and Opportunities 16
16. Consumers are tailoring their buying habits in response
TREND: TOPLINE EVIDENCE
to physical appearance and fitness goal
How appealing are the following food and beverage concepts to you personally?
Food and beverage products that are formulated with your specific nutritional needs in
mind?
(% - share of respondents) 43
51
Very appealing 41 53
49 53
Somewhat appealing 43
45
40
33
24 23
13 15 18 15
8 6
Germany
Russia
France
Spain
UK
UAE
China
US
Brazil
17 17
17. Relevant consumer benefits in sport products depend
on what consumers youāre talking to
5% GOAL/RESULT DRIVEN
13%
26%
INTERNAL/INDIVIDUAL DRIVEN
EXTERNAL/SOCIAL DRIVEN
5%
FOR FUN
18
18.
19. The Body Builder wants to build the perfect body
CHARACTERISTICS HEALTH INVOLVEMENT
ā¢ Dedication ā¢ Beyond health
ā¢ Discipline ā¢ Health is not an issue
ā¢ Focus ā¢ Focus on body sculpturing
ā¢ No pain/ No gain
ā¢ Perseverance
ā¢ Self confidence
SPORTS NUTRITION
ā¢ Feeling of power ā¢ Whey protein
ā¢ Builds lean muscle mass
ā¢ Low carb, no fat
ā¢ Right amount Leucine
DEMOGRAPHICS
ā¢ 2-3% of population
ā¢ 20-40 years old PRODUCT ASPIRATIONS
ā¢ Mainly male
ā¢ Easy to eat, everywhere, every day
ā¢ Fast acting product
ā¢ Triggers muscle build up and recover
20. The Performer wants to improve performance
HEALTH INVOLVEMENT
ā¢ Beyond health
CHARACTERISTICS ā¢ Health is not an issue
ā¢ Competition & Winning ā¢ Focus on sports performance
ā¢ Discipline ā¢ Improvement is key
ā¢ Continuously improving
ā¢ In and out hard core SPORTS NUTRITION
ā¢ That helps to perform better
DEMOGRAPHICS ā¢ Visible or can be noticed in any kind
ā¢ 5% of population of way, i.e. muscle build up vs.
ā¢ All age groups recovery of muscles.
ā¢ 44% has children
ā¢ Slightly higher income PRODUCT ASPIRATIONS
ā¢ Excellent physical condition ā¢ All you need in 1 serve
ā¢ The protein you need to recover in 1 bottle
ā¢ Triggers muscle build up thanks to easy take-up
of protein into bloodstream and muscles
21. The Weight Watcher wants to lose weight
HEALTH INVOLVEMENT
CHARACTERISTICS ā¢ Health equals weight; they donāt feel healthy
ā¢ Sports is a necessary evil ā¢ Worried about gaining weight
ā¢ Itās not for fun, itās to lose weight ā¢ Theyāre on a diet
ā¢ Spends less time on sports than ā¢ Focus on burning fat
average (<1-2 per week) ā¢ Losing weight is key
DEMOGRAPHICS SPORTS NUTRITION
ā¢ Rehydrates
ā¢ 13% of population
ā¢ Gives energy without the ābaddiesā
ā¢ Both male and female
that could make the workout
ā¢ Lower income
redundant again, i.e. fat
ā¢ All are overweight
PRODUCT ASPIRATIONS
ā¢ No fat
ā¢ Drinks like a water
ā¢ Low calorie
22. The Body Conscious wants a toned body
CHARACTERISTICS
ā¢ Sports to keep in shape HEALTH INVOLVEMENT
ā¢ Enjoy doing sports ā¢ Stay healthy and fit
ā¢ Spends more time on sports than ā¢ Keep in shape
average (2-3 per week) ā¢ Body tone is key
ā¢ Not on a diet
SPORTS NUTRITION
ā¢ Rehydrates
DEMOGRAPHICS ā¢ Brings back my body in balance
ā¢ 26% of population ā¢ In to drinks like flavored milk
ā¢ Both male and female
ā¢ Average income
PRODUCT ASPIRATIONS
ā¢ Drinks like a water
ā¢ Not too much sugar, low in calorie
ā¢ Low in fat
23. Only in-between is the moment of the day where
yoghurt and sports nutrition are the same today
Yoghurt occasions Sport nutrition occasions
45% 50% 47%
39% 38% 45%
40%
33% 40%
35% 31%
30% 35%
30%
30%
25% 25%
20% 20% 18%
15% 15%
10% 10% 7%
5% 3%
5%
0% 0%
Breakfast Lunch In-between Dinner After dinner Breakfast Lunch In-between Dinner
Sport nutrition related to Sport nutrition by location
sports activity 80% 75%
100% 87% 60% 52%
80%
60% 52% 40%
40% 17%
12% 20%
20%
0% 0%
After sports Before sports During sports On the go At home At the gym
24
24. Attitude towards sports specific food is similar as attitude
towards food in general
Indulgence
āFood is there to enjoyā
āEat whatās right, but enjoy it!ā
āLess is moreā
Prevention
āI make sure I have a
Pro-active
Reactive
balanceā
Fixing
āI need to watch āI just eat what I always eat &
out what I eat, Iām donāt really think about itā
āHealthy is a way of livingā on a dietā
Nutrition
25
Source: Fonterra Consumer Deep Dive & Sports nutrition research 2011
25. ~50% of consumers are āactiveā
Less active
āI want to stay healthyā
āMy doctor told me toā
Intrinsically driven
Externally driven
More active
26
Source: Fonterra Consumer Deep Dive & Sports nutrition research 2011
26. Attitude towards sports specific food is similar as attitude
towards food in general
Indulgence
āFood is there to enjoyā
āEat whatās right, but enjoy it!ā
āLess is moreā
Prevention
āI make sure I have a
Pro-active
Reactive
balanceā
Fixing
āI need to watch āI just eat what I always eat &
out what I eat, Iām donāt really think about itā
āHealthy is a way of livingā on a dietā
Nutrition
27
Source: Fonterra Consumer Deep Dive & Sports nutrition research 2011
27. Consumer needs regarding sports & food
Sports Nutrition needs General food needs
Strength Performance Body tone No additives Low sugar
Efficient Body
Naturalness Low calorie
workouts composition
Less muscle Less muscle Less muscle
Low fat
soreness soreness soreness
Thirst Thirst
Rehydration
quenching quenching
Endurance
Re-energize Re-energize
Winning diet
In control
battle
28
28. Protein delivers the RtB to consumer food & sports
needs
Functional
Relevant consumer needs
benefits
Strength Performance Body tone Muscle building
PROTEIN
Efficient Body Muscle maintenance
workouts composition
Less muscle Less muscle Less muscle Muscle recovery
soreness soreness soreness
Thirst Thirst Improved re-hydration
Rehydration
quenching quenching
Endurance Energy resource
Faster energy
Re-energize Re-energize Low sugar replenishment
Winning diet Satiety
In control Low calorie
battle
Naturalness No additives Low fat Natural source of energy 29
29. Protein benefits are latent knowledge Yoghurt was mentioned
as one of the first
Protein is Protein sources of protein
healthy supplements is
for body builders Protein is Protein is crucial for
good for growth & development
I get enough muscles How much
protein if I protein should
eat balanced I take?
What makes protein important for human beings? % consumer mention
Essential for a healthy diet 98%
Provides energy 80%
Is an essential part of the body / to live 65%
Health 19%
ā¢To get extra protein for sports performance, consumer prefer beverages
ā¢ ~20% is prepared to pay more for protein enhanced products
ā¢ Knowledge about protein increases by age
30
30. Consumers recognize the health benefits of protein
Source: Protein Consumer Research: Brainjuicer, May 2011
You see a list of several health benefits of adding extra protein. How important
are the following benefits to you? (Select all that apply) (n=166)
31
31. How do active consumers benefit from protein?
Optimal nutrition following exercise
1. Stimulate muscle recovery 3. Stimulate energy replenishment
2. Encourage fast rehydration
Protein Protein Protein
Carbohydrates Carbohydrates
Electrolytes
32
32. Status of Protein Claims in the EU
ā¢ EFSA Article 13.1 Health Claim Opinions for Protein
Postive Opinion Negative Opinion
Protein Maintenance of normal bone Increased satiety/reduction of
energy intake
Helps growth and maintenance of Maintains normal body weight
muscle mass
ā¢ Protein Nutrient Content Claim Requirements
Source of Protein High in protein Increased in Protein
Conditions to meet the 12% of the energy 20% of the energy The product meets the
claim value of food is from value of the food is conditions for āsource
protein from protein of proteinā claim if the
increase in protein
content is at least 30%
cf to a similar product
33
33. Potential barriers & solution to keep in mind.....
Cynicism Build & drive credibility
Ensure high protein level and link it to relevant
EFSA
consumer needs
Lack of Use protein as a RtB of consumer relevant benefits
knowledge regarding sports nutrition and food needs
34
34. Using the right messages to communicate the protein
benefit is key
X
Added proteins = āadditivesā
Natural source of protein is
important
2x, 3x more protein doesnāt resonate
High quality source of protein
āGood source of proteinā
Source: Protein Consumer Research: Brainjuicer, May 2011 35
35. Consumer benefits for the performer to further strengthen the
positioning of a protein enhanced sports beverage
Most appealing claims:
1. 3-in-1: rehydration, refuel and recover
2. Get the nutrition your body needs after exercise in 1 single serve
3. The protein to recover, now in 1 bottle
4. Triggers muscle build up
36
36. Consumer benefits for body conscious and weight watcher to
further strengthen a protein enhanced sports beverage
Consumer claims:
1. Direct thirst quenching
2. Refreshing
3. More than water
4. Only 10 kcal per 100 ml
5. Energy to recover without the sugar
37
38. Preferred applications are in the sports or in the general
health area ā no product type serves both currently
ā¢ How do consumers like to get the benefits ā what applications?
ā¢ Map of consumersā benefit areas of interest and their product format preference
Gap
39
39. Three groups of product formats resonate with different
benefits that protein can deliver upon
Recommendations for protein positioning Products Protein benefits
The majority of yoghurt formats (spoonable, drink, flavoured,
pure) resonate with general health and children growth. These
benefits have the highest scores among all consumer groups.
To strengthen the protein positioning we would recommend to
stress general health and energy benefits for all
consumer groups (adults, children and seniors). general health and
children growing
High protein beverage and yoghurt shot resonates most with
sport performance and muscle maintenance. These benefits
score as the second important among consumers. The
possible way to proceed is to do further research among
athletes to determine market perspectives for a specialised
sport yoghurt. sport performance and
muscle maintenance
Yoghurt shots and protein bar also resonate with weight
management and hunger suppression. These benefits have
relatively low scores compared to general health, but they are
important for younger females who are also more likely to pay
more for yoghurt with added protein. We would recommend
further research into specialised product for this group,
which can be quite successful. weight management and
hunger suppression
4 40
40. RtB Protein Synthesis ā How does it work
Dietary protein Muscle protein
Nutritional switch
Key amino acid (leucine) in the blood Maximal
response
Adequate intake
~2.5g leucine
Time dependant (~30g protein)
41
41. Dairy Protein provides best results for speed and build
2.5 Whey
Fold change in plasma leucine
Soy
Rapidly digested 2
Casein
(from baseline)
1.5
1
Adapted from:
0.5
Phillips et al, (2009)
0
0 30 60 90 120 150 180
4
Fold change in lean mass gains
Minutes following consumption of protein
3.5
(from CHO/Placebo)
3 Adapted from:
2.5
Tang et al, (2009)
2
1.5
1
Promotes more muscle mass
0.5
0
CHO/Placebo Soy Milk Whey 42
42. Success requires highly functional proteins that can
deliver the health without compromising taste & texture
Key insight:
The key to
success in this
space is to
YOGHURT provide the
desired benefits
in mainstream
good tasting
product offerings
43
44. .. but can our protein deliver the taste as well though?
ļ We put our protein bars up to the test!
Agustin
Meet the test panelā¦
Allard Mark
Floris Andrew
Stephen
45
45. There is an interest in functional food, but they are not
perfect yet
What do they consume today & what benefits are they looking for?
46
46. Taste & Texture does matter & Fonterra has the
solution!
Featuring here the results in our bars ā Bar āFā is the bar with Fonterraās protein in it.
47
Source: Euromonitor
Editor's Notes
So far about Fonterra and our way of working. Letās have a look on what is going on in the market.
EuroMonitorEurope still growing strong. Both volume and value growth opportunities. Asia & Western Europe will lead future sports drinks salesDespite slow emergence from recession, Western European markets such as Spain, the UK, and the Netherlands are predicted to show very strong volume sales growth in sports Drinks: formulations for women, children, and different activities should help expand.Missing form the list are US and Japan, the two largest global sports drinks markets. Despite the recent success in 2010, Gatorade and Powerade have a stranglehold on the US market with more than 90% share between them and also more than half of all global sales. Aquarius from TCCC and Pocari Sweat from Otsuka similarly hold more than 80% of Japan sales and this market. Small niche opportunities are likely the only possibilities in the short term. China is the world number 3 market with several established players and will be difficult for international players to enter.
Businessweek 23, 2011, Duane Stanford.Serious athletes were turning away from sports drinks. āGatorade goes back to the labā.āPepsiCo is bringing the original sports drink back to athletes and expanding the brand beyond beveragesā.PepsiCoās Gatorade wants to cover the sports nutrition world with offerings to challenge a full spectrum of energy and after-workout ārecoveryā products, including energy bars, gels, protein shakes, and pretty much anything else athletes put into their bodies. Gatorade must overhaul its distribution system. Itās about being where the athletes shop and sweat.Walk away from discount-driven sales and turn away from couch potatoesGatorade needs brought to be back to athletes and to the science that gave the brand its credibility. Investment in science, packaging and ingredients. Removed high fructose corn syrop.āQuite simply, there are too many consumer who are unclear as to why and when they should consume a sports drink. Is it for a sports occasion, for daily hydration or for the school lunch box? Am I too old for a sports drink?āāSports drinks should not try to be all things to all men, but neither should they be a niche sports specific product.āGatorade revamp begins to pay dividends. US sports drinks turned around in 2010 as G Series began to find traction and Powerade also grew share.
Solid growth despite economic recessionWeight management programmes to reduce healthcare costs related to obesity will benefit sales. Current government programmes to fight obesity can encourage more people to engage in sports and physical activity. Consequently, the sports nutrition industry could benefit by selling more of such products as long as they can prove their quality, safety, and efficacy.A combination of healthy diets and regular fitness routines can help the industry grow by supplementing the diets of physically active people.Sports dietetics is becoming a hot field in North America and Western Europe.The European Food Safety Agency (EFSA) limits the health claims on sports nutrition Sports & fitness is rising in popularity. New generations are joining extreme sports and activities, from rock climbing to snowboarding, that require additional supplementation. Marathons, half-marathons and cycling are increasing in popularity around the world. It would seem that more people consider a marathon as a personal goal to achieve in life. As the world population continues to age and become a burden on healthcare systems, an opportunity arises for growth among people who seek to maintain their muscle mass.The ranks of older people hiring personal trainers or joining fitness groups are widening, to prove that they can be fit, active and healthy even in old age.New retailing channels open sales to mainstream consumers. Retailing of sports nutrition remains strong through healthfood shops, gyms and the Internet. However, new products with gentler formulations were introduced to cater to mainstream consumers. New digital technologies. Setting up of online chats with nutritionists for professional advice.The category remains highly fragmented with many small players. Just a handful of large companies seek to improve their position through new products and deep consumer segmentation.
There is a mix of consumer-related initiatives that are currently shaping the present and future of sports nutrition: Public health programmes to fight obesity and promote physical activity, along with a widening of the global consumer base are influencing how manufacturers and sellers of sports nutrition serve the market. Manufacturers capitalize on these trends by developing products and positioning their brands as the best option to achieve endurance and strength in a world where fitness and sports are increasingly taking centre stage. Young men are losing their stereotype of being the only consumers of sports nutrition. As active lifestyles and fitness become elements of the daily lives of an increasing number of people, sports nutrition brings new options to other type of consumers. As women pay more attention to their figures, they are also becoming an important focus in sports nutrition through the development of gentler formulations catering to the particular physiology of the female body; correct iron fortification is an important aspect of products formulated for women. Teenagers and university students are becoming heavy consumers of sports nutrition as they seek to build a competitive edge in sports. Some of them use the advice of coaches or nutritionists, while others use recommendations from friends. New research is expanding to address the role of sports nutrition in ageing bodies. It is known that as humans age, their muscular mass declines, potentially leading to weakened bone health. The new theory suggests that by establishing a basic fitness programme for elderly people, along with consumption of sports nutrition supplements high in protein, this can greatly improve their health.
Now what do consumers really want?
General health is the most important benefit of protein, hunger suppression is the least important General health and weight management are more important for females than for malesChildren growth is more important for older respondents (45-64)
Emotional benefit: healthy nutrition and energy to support an active lifestyle!
ā¦ but can our bar deliver the taste as well though? We put our bars up to the test. Among a mixed group of MEN Healthy conscious, Body performers and a Weight watcher.Here they are.