An economic look at food spending across the U.S.A. this presentation by The Food Institute details real-dollar expenditures at restaurants and various grocery stores. Discover where consumers are finding food products and how they decide to purchase these goods in today's economy.

1. Insight gathered by The Food Institute
Summer Fancy Food Show
July 2014
MEET THE U.S. FOOD
CONSUMER, AND
OTHER TRENDS

2. Consumers starting to put money where their mouth
is!
Average food spending back to 2007-levels (almost
out of recession-levels)
Consumer Food Spending up 3% to
$49,705/year/household.
Biggest portion for inside-the-home eating
Dollars away-from home continue decline but not as
steep.
All-time high was in 2008, $50,000 annually on
food.
HOW MUCH DO WE SPEND ON FOOD?

3.  Only 14% U.S. Americans stick to 3-square meals, no snacks
 Role for meal replacements, hefty snacks to fill in for meals
 Grab-and-Go convenience is crucial factor in purchasing foods.
SNACKING IN AMERICA
Daily Eating Habits
3 sq. meals, Many Snacks
4-5 "mini meals"
3 sq. meals, No Snacks
I eat on the run, when I can

4. CONSUMERS WANT COUPONS
• Consumers increasingly go online for digital coupons
• The hunt for coupons spans all age demographics
• Divide on age between paper coupons vs. e-coupons.
Symphony IRI data

5. THE LOOK OF THE GROCERY STORE
~fast, fresh and affordable~

6. THE LOOK OF THE GROCERY STORE
 Fresh-Format: emphasis on perishables and different center-
store assortments from the traditional grocery store. Ethnic,
Organic focus eg: Whole Foods. Category: ~$12 Bn ann. sales
 Traditional Supermarket: full line of food items/groceries incl.
meat/produce. May include deli and bakery service ~$442 Bn
 Warehouse: high-volume hybrid of superstore and warehouse
with service departments, perishables and reduced prices eg.
Costco. Category:~$20 Bn
 Limited-assortment: store: low-price grocery with limited
selection of center-store & perishables eg. Trader Joe’s Sav-A-
Lot category sales: ~$29 Bn
 Small grocery: corner store or bodega, limited selection of
staple items and grab/go convenience. Category:~$12 Bn

7. 
Restaurant sales: PATRONS RETURN!
 $181.1 billion as of April 2014 (up 3% from prev. year)
 Full service restaurant sales saw highest growth – 6% since
last year.
 Limited service: up 1.4% to $20,513 in April 2014.
 (Source: The Food Institute Report, May 19, 2014)
RESTAURANT ROUNDUP

8. FOODSERVICE: MENU TRENDS
Menu-item “Winners”:
• Bakery item
• Specialty drink/coffee
• Asian
• Mexican
Menu-item “Losers”:
• Steak
• Desserts
Increase by sales

9.  Email is still top with food product
marketing to U.S. consumers
 The Coca-Cola Company lays out how it
engages the mobile customer:
 Define your roles & goals
 Set up your social world: which platforms
benefit the company strategy.
 Engage like a peer. Listen & respond
 Assess & Evolve
 Measure the activity
 Translate data to lead to your success
benchmarks
SOCIAL MEDIA: MARKETING BLUEPRINT

10.  44.3% of the U.S. population have smartphones today.
 Average U.S. adult spends 141 minutes per day on mobile
devices.
 Key mobile commerce themes this year:
 Shopping experience on mobile, through apps
 Omnichannel: integration brick stores, online for inventory
management & fulfillment
 Predictive analytics: leverage customer data to drive sales
 Same-day delivery of online orders
SOCIAL MEDIA: ACTUAL IMPACT

11. NEW FOOD PRODUCTS
~ searching for convenience & nutrition ~

12. NEW FOOD PRODUCTS: EATING
OCCASIONS
Breakfast – 34%
Salty snack – 22%
Dinner – 15%
Appetizer/light meals – 11%
Candy & Gum – 9%
Other – 10%

13.  Yogurt, esp. Greek-strained strengthen this category:
NEW FOOD PRODUCTS: FOOD ITEMS
414
536
586
291
945
376
469
501
205
441
0 500 1000
Individual Sweets
Bread, baked goods
Chips, Pretzels
Energy Bars
Yogurt
% Chg.
2009
2011

14. Specialty segment is fastest growing of
lifestyle categories in stores
Sales of “Non-GMO” labeled products
surge
Other key labels: “gluten-free”, “all-
natural”, “air-popped/baked”, “organic”.
Healthy, convenient snacks: Cookies and
crackers lead … wait, what?!
On the go, fortified ingredients
LIFESTYLE FOODS

15. MARKETPLACE: TOP PROCESSORS
Leading Food
makers in
the U.S. and
Canadian
economies

16.  Food company investment remains very active.
 The Food Institute online mergers search results for 2013:
 281 M&A deals closed (287 for the year 2012)
 34% - food processors (dairy, meats, multi-product)
 15% - private equity/bank involvement
(Source: Food Institute online mergers search & Food Business M&A 2013
publication).
FOOD MERGERS & ACQUISITIONS

17.  Resources from The Food Institute to ensure compliance with
U.S. trade regulations and changes:
 Food Safety Modernization Act: Webinar Series
 U.S. Labeling Guidebook
READY TO EXPORT TO THE US?

18.  One place for informed decisions
 Many ways to access reliable data
FOOD INSTITUTE: ESSENTIAL RESOURCE

19.  Lina Khouri Bush/Account Executive
 201-791-5570 ext. 214
 Lina.Khouri.Bush@FoodInstitute.com
 Brian Todd/President
 201-791-5570 ext. 217
 Brian.Todd@FoodInstitute.com
CONTACT US FOR QUESTIONS