IRI’s Consumer Connect™ survey provides a quarterly snapshot of shoppers’ behaviors and attitudes as they directly relate to their strategies for learning about, purchasing and utilizing CPG and health care products, as well as information regarding perceptions of economic conditions and their ability to provide for their families.

1. EarlyView2017
CPG Off to a Slow Start, butWhat’s Next?
May 2017

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Survey Methodology
• IRI’s Consumer Connect survey provides a quarterly snapshot
of shoppers’ behaviors and attitudes as they directly relate to
their strategies for learning about, purchasing and utilizing
CPG and health care products, as well as information regarding
perceptions of economic conditions and their ability to provide
for their families.
• Consumer Connect is an internet-based survey of more than
2,000 respondents from a nationally representative panel of
participants.
• For more results, visit the IRI website.
Tweet this: #IRI #ConsumerConnect highlights shoppers' behaviors, attitudes toward learning,
purchasing, utilizing #CPG and health care products

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 Tweet this: January and February are typically softer months for CPG, but 2017 is
showing sharper-than-normal declines.
 Tweet this: March posted improvement but not recovery.
 Tweet this: Declines are being driven by a number of complex and interwoven
factors, which are negatively impacting trips and basket size.
 Tweet this: Soft trends are evidenced across consumer segments, but some groups
have been more harshly impacted than others.
Executive Summary

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29%
45%
50%
28%
45%
49%
Having difficulty affording
needed groceries
Household financial health is
strained
Making sacrifices to make
ends meet
Q1 2016 Q1 2017
Consumer Financial Health
Total Population
Source: Consumer Connect™, Q1 2017
Many consumers continue to struggle financially.

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29%
45%
50%
54%
71%
73%
33%
50%
58%
18%
34%
41%
6%
16%
23%
Having difficulty
affording needed
groceries
Household
financial health is
strained
Making sacrifices
to make ends
meet
$100K>
$55-$99K
$35-$54K
<$35K
Total Population
Consumer Financial Health
by Income
29%
45%
50%
33%
49%
55%
26%
43%
53%
33%
49%
54%
21%
35%
39%
Having difficulty
affording needed
groceries
Household
financial health is
strained
Making sacrifices
to make ends
meet
Seniors
Boomers
Gen X
Millennials
Total Population
Consumer Financial Health
by Generation
Source: Consumer Connect™, Q1 2017
Lower-income and younger shoppers are among the hardest hit.
Tweet this: Low income & young shoppers are among the hardest hit #ConsumerConnect

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Shopping Journey Money-Saving Preparations
Top 2 Box by Generation
50%
53%
58%
74%
81%
55%
62%
60%
86%
89%
60%
60%
63%
79%
82%
50%
53%
59%
72%
79%
37%
41%
52%
62%
78%
Compare prices on
area retailers'
websites
Download coupons
from
retailer/manufacture
r website
Visit multiple
retailers
Try new, lower-
priced brands
Buy private label
options
Seniors
Boomers
Gen X
Millennials
Total Population
Shopping Journey Money-Saving Preparations
Top 2 Box by Income
50%
53%
58%
74%
81%
53%
55%
60%
80%
84%
50%
56%
60%
77%
82%
51%
52%
61%
76%
85%
43%
51%
50%
61%
73%
Compare prices on
area retailers'
websites
Download coupons
from
retailer/manufacture
r website
Visit multiple
retailers
Try new, lower-
priced brands
Buy private label
options
$100K>
$55-$99K
$35-$54K
<$35K
Total Population
Source: Consumer Connect™, Q1 2017
Millennials are most likely to make brand concessions;Gen X consumers are as
likely as millennials to seek digital savings opportunities.
Tweet this: #Millennials are most likely to make brand concessions; #GenX are as likely as millennials to
seek digital savings opps #ConsumerConnect

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Conservative behaviors pushed unit sales down precipitously in January of this
year, negatively impacting dollar sales trends; subsequent months have seen
improvements, but not growth.
3.5%
4.1%
3.1%3.2%
0.6%
2.1%
-1.5%
-0.6%
0.8%
January February March
2015
2016
2017
Monthly Dollar SalesChange
TotalCPG
0.5%
1.3%
0.7%
1.6%
-1.0%
0.6%
-2.6%
-1.3%
-0.5%
January February March
Monthly Unit Sales Change
TotalCPG
Source: IRI Market Advantage™, 4 weeks ended 3/19/2017, 2/19/2017, 1/22/2017 and same periods prior two years; MULOC.
Tweet this: Conservative behaviors pushed unit sales down precipitously in Jan. 2017, neg. impacting dollar
sales trends #ConsumerConnect

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RegionTrends forTotal Edible
California
13wk $ Sales
($MM)
$12,271
4wk % Chg
YA
-0.7%
13wk % Chg
YA
-0.8%
West
13wk $
Sales ($MM)
$14,053
4wk % Chg
YA
1.4%
13wk % Chg
YA
1.5%
Plains
13wk $
Sales ($MM)
$9,064
4wk % Chg
YA
0.3%
13wk % Chg
YA
-0.2%
South Central
13wk $ Sales
($MM)
$15,849
4wk % Chg YA 1.2%
13wk % Chg YA 0.9%
Southeast
13wk $
Sales ($MM)
$20,080
4wk % Chg
YA
1.0%
13wk % Chg
YA
0.9%
Mid South
13wk $
Sales ($MM)
$16,987
4wk % Chg
YA
1.5%
13wk % Chg
YA
-0.2%
Northeast
13wk $ Sales
($MM)
$19,814
4wk % Chg YA 0.7%
13wk % Chg
YA
-0.4%
Great Lakes
13wk $ Sales
($MM)
$18,166
4wk % Chg YA 0.4%
13wk % Chg
YA
-0.2%
Source: IRI ILD POS database; L13 & L4WE 3/19/17, MULO+C Regions
Southeast and South Central regions were insulated from early 2017 edibles
declines; all regions except California show positive growth in the most recent
period.
Tweet this: #Southeast, #SouthCentral regions insulated from early 2017 edibles declines; all regions except
CA show + growth in most recent period

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-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Oct-162 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17
Total US
Millennials
Gen X
Younger Boomers
Older Boomers
Retirees
Seniors
Edible Dollar Sales
% Chg. vs.YA, by Generation
Q1 edibles sales dipped across generations, but seniors have struggled more
than others during the past year.
Source: IRI Consumer Network™, CSIA – Total US – All Outlets; Quad Week Data Ending 3-19-17 and preceding; NBD Aligned to Multi-Outlet
Tweet this: Q1 edible sales dipped across #generations, but #seniors struggled more than others during the
past year #ConsumerConnect

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Still, economic expectations for 2017 are reasonable.
Source: Moody’s
Economic Measure 2013 2014 2015 2016 2017P
GDP (% chg) 3.3% 4.2% 3.7% 3.0% 4.3%
Unemployment (%, SA) 7.4% 6.2% 5.3% 4.9% 4.6%
Consumer Price Inflation (% Chg) 1.5% 1.6% 0.1% 1.3% 2.7%
Retail Sales (% Chg) 3.8% 4.1% 2.3% 3.0% 5.5%
Residential Permits,Total (Mil) 3.9 4.2 4.7 4.7 5.5

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ConsumerWillingness to
Pay a Premium for…
Total Population
10%
19%
22%
30%
38%
22%
29%
41%
Order online for in-store
pick up
Order online for home
delivery
Environmentally friendly
packaging
Natural/organic solutions
Options that offer
benefits beyond basic
nutrition
Q1 2016 Q1 2017
CPG marketers will build margin and share with messaging that underscores
the value of in-demand bells and whistles.
Source: Consumer Connect™, Q1 2017 & Q1 2016
NA
NA
Tweet this: #CPG marketers can build margin and share with messaging that underscores the value
of #InDemand bells and whistles #ConsumerConnect #IRI

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Contact
Shelley Hughes
Vice President, Media Relations
Shelley.Hughes@iriworldwide.com
Susan Viamari
Vice President, Thought Leadership
Susan.Viamari@iriworldwide.com
Tweet this: Shoppers’ Financial Outlooks and Purchasing Behaviors 2017
#ConsumerConnect @IRIworldwide – Read the full report here