1. Spotting Millennial
Food Trends:
Five to Monitor
Prepared for
13th Annual Stakeholders Summit
May 8, 2014

2. 5 Food Trends
Objectives
• Survey critical issues, opportunities
• Focus on long-term trends
• Analyze implications
2

3. 5 Food Trends
Agenda
• Protein Power
• Veggie Chic
• Super Snacks
• Hot Buttons
• Real Food
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4. Trend 1:
Protein Power
• Retail Grocery: product
claims jumped 54% past
5 years
• Restaurants: menu
mentions jumped 64% past
5 years
• US is largest market in
world for high protein
products
Source: Mintel; Technomic, Inc.
Greek Yogurt, Energy Bars
Take Supermarkets by Storm 4

5. More Than Half of Adults
Want More Protein in Diet
Source: NPD Group
5

6. Dairy Industry
Focuses on Protein…
6

7. …And Restaurant Chains
Getting on Board
TACO BELL’S POWER PROTEIN MENU
TARGETS MILLENNIALS
• 20+ Grams of Protein
• Fewer Than 450 Calories
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8. Protein Power
Implications
• Opportunity to exploit
• Addition NOT subtraction
• Watch for backlash
• Expect changing guidelines
• Consider gender segmentation…
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9. … As More Marketers
Target Millennial Males
“Brogurt” Appeals to Men
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10. Trend 2:
Snackification
1%
5%
6%
9%
36%
42%
Usually just snacks, no
meals
3 meals, no snacks
3 meals with many snacks
between
Usually skip or replace 2
meals with snacks
3 meals with few snacks in
between
Usually skip or replace one
meal/day with snacks
24/7 LIFESTYLES UPENDING CONVENTIONAL MEAL PATTERNS
Source: Technomic Snacking Occasion Consumer Trend Report

11. Millennials Are
Super Snackers…
• “Time-crunched multi taskers”
• Convenience/food on demand
• Fresh, real, less processed
11

12. …And Entrepreneurs Meet
Their Demands
Nature Box Delivers Healthful Small Bites
12

13. Opportunity for Next-Gen Items
At Both Retail, Restaurants
McDonald’s Snack Wrap
13

14. Snackification
Implications
• Need to reconsider positioning, portioning, packaging
• Second-generation product opportunity
• Emphasis on good and good tasting
• Monitor for changes as millennials age,
form households
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15. Trend 3:
Food Activism
SELECTED HOT BUTTONS, BUZZ WORDS
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 Antibiotic/Hormone/Steroid Free
 Biodynamic
 Cage Free
 Clean Foods
 Carbon Footprint
 Energy Efficient
 Eco-Friendly
 Ethical
 Fair Trade
 Free Range
 Gestation Crates
 Grass Fed
 GMOs
 Humanely Raised
 Local
 Natural
 Organic
 Permaculture
 Rainforest Alliance
 Recyclable
 Sustainable
 Traceable
 Vegetarian/Vegan
 Whole Foods

16. Animal Issues
Gaining Support

17. GMO Uproar
Catching Fire
LEGISLATIVE ACTIVITY HEATING UP AT STATE LEVEL
• 97% sugar beets
• 93% soybeans
• 90% cotton
• 90% feed corn
• 60% papaya
genetically modified
in US

18. General Mills Selling
Non-GMO Cheerios
• Announced Jan 2, 2014
• GMO Inside campaign
was totally digital:
-40M Facebook Posts
-200M You Tube Views
• Sales “down somewhat”
since change

19. 19
Everyone’s
A Journalist…
“10 Most Influential Mommy Bloggers” Include:
Heather B. Armstrong, 1.5MM+ followers
-Based in Utah
Jenny Lawson, 100M+ followers
-Based in Texas
Stacie Connerty, 50M+ followers
-Based in Georgia
Source: Cision

20. …In Wired
World
1.5MM You-Tube views…
Jamie Oliver’s “Pink Slime”
episode on ABC
…250,000 signatures
Bettina Siegel, Houston, blogs
“The Lunch Tray”
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21. Chipotle Marketing Hits
Millennials’ Hot Buttons
“Outrageously twisted and utterly unsustainable world
of industrial agriculture”

22. Food Activism
Implications
• Monitor digital conversations
• Stay ahead on hot-button issues
• Enlist appropriate advocates, spokespeople
• Recognize emotional underpinnings
• Pay special attention to kids, moms
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23. Trend 4:
Veggie Chic
WHY IS PRODUCE SO HOT?
• Center-of-Plate Volatility
• Culinary Sensibility
• Consumer Health Interests
• Range of Options
• Versatility/Flexibility
• Availability/Formats
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24. Cruciferous Craze
Typifies Veggie Trend
California Pizza Kitchen’s Brussels + Bacon Pizza
Herbed Goat Cheese, Caramelized Onion, Romano Cheese
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25. No. 7 Subs’
Broccoli Sandwich
• Fresh Mozzarella
• Thai Basil Pesto
• Fried Lemon
25

26. Brennan’s of Houston’s
Chicken-Fried Cauliflower Steak
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Purple Majesty Potato Salad, Vegan Mushroom Gravy

27. Despite Veggie Innovation,
Meatless Monday Stumbling
• US House of Rep. Vegetarian Caucus recently formed
• But proposed Meatless Monday in cafeteria fails
• San Diego School District adopts in September 2013
• One of largest districts to embrace
• Importantly, majority colleges and universities fail to endorse
• “Students felt we were regulating their choices”
• “Name sounds like we’re taking something away from customer”
• “Yale Dining actually increased quality of meat it serves”
Source: Foodservice Director
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28. Veggie Chic
Implications
• Veggie interest will increase
• Reflects desire for good food…
• …NOT rise in vegetarianism
• Meatless meals least popular way to save $
• Shifting priorities favor “clean,” “whole,” “real”
• Major opportunity for animal protein
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29. Trend 5:
REAL Foods
• Butter consumption +24% past decade
• 5.6 lbs per capita 2013 vs. 4.1 lbs in 1997
• “Wholesome, pure, not a lot of other ingredients”

30. Nose-to-Tail Cuisine,
Butchers Bounce Back
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31. Demand for Local Foods
Boosts Farmers’ Markets
FARMERS’ MARKETS ON GROWTH CURVE,
THOUGH LOSING LUSTER IN SOME AREAS
1994 2004 2013
Number of Markets 1,755 3,706 8,144
Source: USDA AMS
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32. Microwaves Lose Favor As
Consumers Seek Involvement
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33. REAL Food
Implications
• Quality definition changing
• Real foods favored
• Powerful consumer drivers
• Both millennials and boomers
• Signifies goodness without deprivation
• Standards of identity not established
• MAJOR opportunity for animal proteins
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