Page 1

Landscape

Page 6

Morning Relax Page 11

Traditional Morning Treat Page 12

Afternoon Top-up Page 14

Indulgence Page 16


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Campbell’s Arnott’s Snacking Landscape

Welcome to Macro Snacking Landscape Major Australian Macro Snacking Landscape Study now completed:

Survey

• Large quantitative survey • October/November 2017

Sample

• N=1,500 people aged 16-69 years • Nationally representative sample

Insights

• Diary of snacking occasions captured over 10,000 events • Where, what and why? Purchase, brands, consumption, needs

Australian snacking behaviour explained by three dynamics: 1.

2.

3.

Attitude to food

Time of the day

Need

Control Vs Easy Going

AM Vs PM

Energize Relax Social treat


Campbell’s Arnott’s Snacking Landscape

Macro Snacking Landscape 1.

Snackers have a fundamental orientation to food that is either easy going or controlling:

Easygoing Mindset

Food philosophy:

Food philosophy:

“You are what you eat. Make better choices.”

“Everything in moderation, including moderation!”.”

Tradeoffs Selective treating

Enjoyment Uncomplicated

Core Snacking Moments

2.

Secondary Snacking Moment

14 12 % Share of Occasions

Australians still snack by the clock and time of day is critical for food choice:

Control Mindset

10 8 6 4 2 0 5

10am

3pm Time of the day

8pm


5

3. Three very different snacking needs:

Energy lift

Time out/relax

Step up treat

Better for you Fill me up Keep me going Give me energy

Tasty Sweet/savoury craving Time out, relax Give me a break On the go

Tasty Indulgent Reward Give me something special

Five Snacking Opportunities Control 01

Energize 82% of people 4.1x per week 36% occasions

02

Morning Relax

Afternoon Top-up

$6660m

33% of people 1.8x per week 7% occasions AM

04

62% of people 3x per week 20% occasions

$1295m

$3700m

PM 05

03 Traditional

morning treat

79% of people 3.4x per week 28% occasions

38% of people 2.1x per week 8.4% occasions

$5180m

$1480m

Easy Going


Snacking Opportunities : Energize

Who/ Who With: Everyone

Situation 65% at home 22% at work

Sourced 74% pre-purchased

More ‘controlling’ AM & PM. More ‘easy going’ AM only.

59% alone

Why (F):

43% keep me going to next meal 38% physical fill 9% mental focus

Why (E):

38% energized 24% refreshed 14% happy

01

Energize

The Energize moment is all about giving yourself the physical, mental and emotional fuel to keep yourself going between meals. Most people experience this moment, on most days…making it the biggest of the opportunity spaces, of which Arnott’s current share stands at 20%.

What:

Across total: 24% fruit 19% sweet snacks 11% yogurt 12% savoury snacks Coffee & smoothies also play here

Within Packaged Branded (26% of total) 60:40 Sweet:Savoury 28% muesli/nut bars

Starting Point:

Biscuit category share of occasion: Sweet plains 5% Crispbreads 3% Arnott’s share of branded packaged snacks: 20% (5% of total)

Size of Prize:

Occasion

38% between breakfast and lunch 21% between lunch and dinner

82% 4.1 of people

x per week

36% occasions

$6660m


7

“I don’t think of biscuits as having any nutritional value. They’re more about adding a bit of texture to a cup of tea than keeping you going when you’re rushing around”

E

nergize has a strong physical component – literally food (preferably healthy) to fill you up and tide you over until lunch or dinner time. But there’s also a mental and emotional side, as people seek to avoid, battle with or resolve the unpleasant ‘hangry’ effects of mid morning and mid afternoon energy dips, and keep themselves in a steady state. Normally at home, this moment’s also important at work, and perceptually people think of it as a moment when they are as likely to be on the move as still, making ease of eating and portability prized qualities. Other things to know about the Energize opportunity: “Energize” is all about purposeful snacking, not recreational treating. • It’s seen as having a legitimate role in the daily diet to maintain the (sustained) energy people need to help them move positively through the day. This not only helps you to stay on task but makes you feel better and brighter…so you’re able to enjoy being your best self , not a pale imitation. Being properly energized not only makes people feel better in themselves but has a ripple effect out to the family and broader world around them.

Being properly energized not only makes people feel better in themselves but has a ripple effect out to the family and broader world around them.

Want to eat well Positive momentum pushing me forward Feel good about yourself

• Energy and hunger are inextricably linked. Anyone who has had professional nutritional advice will have been told that it’s important to eat something mid morning and mid afternoon to keep your energy levels up, blood sugar levels steady, and help with weight management (both by keeping your metabolism firing and by reducing the risk that you’ll get over hungry & over eat at lunch or dinner time). As long as that ‘something’ is reasonably healthy…ie making sure you get nutritional bang for your calorific bucks. Being properly energized keeps you out of the danger zone • Underpinned by the desire to stay in control and not fall prey to ‘hanger’ (aka Cranky Hungry). Because being hungry not only saps your energy physically, but also mentally (leaving you feeling fuzzy or feint) and emotionally (leaving you feeling demotivated, deflated and/or cranky). Being overly hungry also puts you at risk of making poor food choices…we all know that point where you’re so hungry you’ll eat anything! So Controllers will try to stay ahead of their hunger by eating between meals and/or eating smaller meals more often…to stay ‘happily full’, maintain a steady state and keep the Hangry Monster at bay! It’s about fueling the virtuous circle and not falling into the vicious one • For most people eating is a virtuous or vicious circle. • Eat well (see below) • Eat poorly – have less energy – feel unsettled/ negative – feel bad about yourself – behave as less than your best self (shout at the kids, fail to exercise etc) – reach for a treat to make you feel better – feel bad about yourself… • Once you’ve blown the day, you’ve blown the day.

Eat Well Have more energy Feel more settled, balanced, focused, positive


Snacking Opportunities : Energize

Energize Desire to ‘eat well’ means a move from empty calories/just being filling, to better substance i.e. a source of longer lasting natural energy.

•M  any people don’t classify fruit as ‘sweet’ (sweet = sweetened). Hence it is still, for most people, totally permissible [unlike fruit juice]

• Hence, a desire for real food, matched with a necessity for it to be delivered in portable portions that fit busy modern life styles – and still taste uncompromisingly great.

Muesli/nut bars dominate packaged snacks in this occasion because they combine ‘healthy sustenance’ (breakfast) ingredients with the ultimate in convenience. Ie they tick all the boxes for the energize moment.

Being seen as “Breakfast” food confers legitimacy to be consumed as ‘healthy sustenance’ throughout the day. • Because breakfast is still considered to be the nutritional high water mark/torture test for the day (despite rising awareness of sugar content of many cereals), foods that are positioned as designed for breakfast are considered to be healthier options for other times of day. Framing something as ‘breakfast’ automatically suggests sustenance and greater nutritional integrity than framing something as a ‘snack’. E.g. muesli/breakfast bars, UP&Go, yogurt, smoothies, BelVita. • When people picture a palate of ‘breakfast ingredients’ they see wholegrains, dairy and fruit. Mostly in that order. Dominance of fruit reflects perceptions that it’s energizing, refreshing and delicious whilst being natural, healthy and, as an ingredient, plays nicely with grains and dairy:

• Their ability to survive the handbag/ backpack/desk draw without damage, and to be eaten with one hand, leads to them being seen as ‘get out of jail free card’ ie a healthyish and sustaining snack that’s always on hand and can both tide you over and stop you making bad food choices in that moment when hunger might get the better of you.

Muesli/nut bars dominate packaged snacks

• Recently, we’ve seen people starting to turn away from muesli & nut bars because of the sugar content. In line with overall nutritional trends, protein- rich options rising in popularity, with ‘carbs’ losing out: • Yogurt has really capitalized on this with increasingly snackable formats taking it from breakfast staple to any time healthy sustenance. Similarly Smoothies have embraced an any-time snack role (mirrored by increased protein shake consumption) and natural seeming protein balls (aka bliss

Muesli /Nut Bars Closer to real food More real and nutritious ingredients Better substance (Sustained energy and substance) Less refined sugar and more natural sweetness Less processing and fewer ingredients that feel like chemicals not food More from a kitchen than a factory Portable portions that fit busy modern life styles

Biscuits

balls) have achieved the broad acceptance that more processed seeming protein bars have struggled to achieve. In the bar world, oat bars have benefited from this trend. Because their home address is ‘Treat Street’, biscuits struggle both practically and perceptually to play in energize moments: • Little perceived nutritional value + culturally imprinted association with “cuppa &” consumption + perceptual sweetness + biscuit aisle vs nutritional snack aisle + practicalities of how most biscuits are packaged, anchor the biscuit occasion back in morning or afternoon tea (low level treat) slot. Not substantial, healthy or convenient enough to meet Energize requirements. • Entrenched perceptions drive considerable resistance to seeing biscuits in their familiar form make the leap to energize moments.


9

What does success look like? Hero Categories and Brands:

46% of sweet packaged branded = muesli & nut bars! Hero brand Carman’s but Uncle Toby’s the bigger volume sourcing target.

Semiotics & Other Heuristics:

Yogurt as a category strong and within this Chobani leads perceptions and snacking/ convenience formats. BelVita in biscuit. Fresh Fruit dominates as a category, without leading brands. BelVita broke through by leveraging breakfast semiotics to stake a claim to being ‘purpose built for breakfast’ (and therefore suitable for all day healthy sustenance) not just an existing biscuit claiming rights to breakfast consumption:

86% completely or mostly satisfied with current snack choice • 50% Completely Satisfied • 30% Mostly Satisfied

• Whilst its actual composition may not be very different from many Arnott’s biscuits, the entire mix frames BelVita as a legitimate member of the breakfast brand club. Partly via ingredients and claims…but PRIMARILY through the priming of visual and verbal language co-opted from the breakfast category: box structure, colours, symbolism (sunrise, clock, grain treatment), vocabulary etc.

Healthy

• The portion packs also a big plus in this occasion, which is perceptually on the move, even if the numbers suggest most people are physically static during it!

Important Characteristics for new product development:

Consumers have consistently shown interest in more savoury options for energize moments... • Crispbreads play a role here already but their lack of convenience (need to top, not conveniently packaged/portion controlled) currently restricts their ability to play a bigger role.

Fruit, grains, dairy (morning sustenance) ingredients & symbols

What does the Quant say about the product drivers?

25%

11%

Filling

Morning & Energy Colour Palette

24% Easy

No prep (11) Easy on the go (6) Can eat 1 handed (5)

• Closer to real food (whole foods); More real, visually recognizable & nutritious ingredients.

Sun as energy metaphor

• A move from empty calories/simply something to fill you up to better substance i.e. a source of longer lasting natural energy (sometimes measured by Low Gi) Hence, a desire for less refined white flour and more fibre content (grains)…Breakfast palate immediately cues healthy sustenance: grains (incl oats and seeds), dairy (incl yogurt), fruit. • Rise and rise of protein vs carbs - ingredients (oats, yogurt, dates, protein powder for some) + protein claims to support them.

Portrait Boxes (the shape of breakfast)

• Less refined sugar and more natural sweetness (which is one of the reasons why fruit does so well here). • Chewing helps to make people feel they are eating something substantial (vs crispiness connotes lightness). • Less processing and fewer ingredients that feel like chemicals not food (numbers, letters, codes, words you don’t recognize). Products to feel like they come more from a kitchen than a factory. • A necessity for all this to be delivered in portable portions that fit busy modern life styles including surviving in a bag or desk drawer. • Taste remains important – not taste first but not willing to compromise either.

Bar Shape and Portion Control

Well summed up in a line explored in US and Aus: Good Food. Good Energy. Great Mornings


Snacking Opportunities : Morning Relax

Sourced

70% pre-purchased

Morning Relax

02

(Compared to Traditional Morning Treat) Morning Relax is the contemporary expression of the ‘Morning Tea’ moment – it’s a personal moment that creates a pool of calm in people’s morning schedule to enjoy a (primarily sweet) snack that allows them to relax and reset their course for the rest of the morning.

Occasion

52% between breakfast and lunch 20% instead of breakfast

Who/ Who With:

35% under 30 Errs to controllers

70%

alone

Starting Point: Biscuit category share of occasion: Sweet plains 6% Flavoured savoury 3%

Situation

74% at home 12% at work

Arnott’s share of branded packaged snacks: 25% (9% of total)

Size of Prize:

33%

of people

Why (F):

47% relaxation (skews to controlling mindset) 14% treat (skews to Easy Going mindset)

What:

Across total: 30% Sweet Snacks 14% fruit 10% choc confec 7% muesli bars Savoury snacks 12% Bakery 11% Coffee 9% (Up&Go 2%)

1.8

x per week

Why (E):

22% happy 18% calm 17% refreshed 14% energized

Within Packaged Branded (36% of total) 70:30 Sweet:Savoury Choc confec 21% Muesli bars 15%

$1295m

7%

occasions


11

“I get to 10 o’clock and I’m sooo ready for a cup of coffee, a little something & 10 minutes to myself. My current favourite is a cinnamon scroll. It makes me feel good to know that someone baked it from scratch”.

W

here the ‘contemporary’ spin comes in is that this moment lives in the intersection between overarching trends towards greater foodiness AND greater health awareness, which leaves people seeking snacks in this moment that deliver high levels of both treat value & food value – real food being seen as both better tasting and better for you. Satiation/fill is not so important here –what’s key is soothing the soul without tripping the guilt meter.

Other things to know about the Morning Relax opportunity: Where energizing is about empowering you to be your best self without stopping, Morning Relax is largely about having the opportunity to pause and reset in a busy day. • Sometimes this is about stress management – being able to step out of a stressful situation and enjoy something delicious whilst creating a bubble of calm in which to manage your stress. • Sometimes it’s about having something to distract yourself from a task you don’t really enjoy (or procrastinate before starting one)

to eat. These people see most breakfast foods as delivering functional sustenance benefits, but not bringing much aspirational emotion, optimism or eating pleasure to the experience. At the other end of the spectrum, traditional morning sweet treats through the eyes of this audience bring pleasure in the moment but don’t leave you feeling very good about yourself. • The focus of this moment is on the moment of relaxation and recalibration. The role of the food in the moment is therefore to help create & enhance the moment of calm, not to be the epicenter of the occasion itself. • And, the moment is oriented to the morning time, when more healthful choices are deemed appropriate. • People are thus looking for treats in this moment which deliver a great eating experience, but that don’t leave them feeling (too) guilty about having consumed it.

Hero Categories and Brands:

Bakery as a category. Representing the food (both sweet and savoury) but also the idea of the bakerycome-café as spiritual home of this moment Choc confec (erring to lghter side eg Kit Kat as hero brand)

Muesli bars (leaning to more indulgent eg choc or yogurt chips/drizzle/foot) Coffee. Up&Go also features at 2% of occasions (Qualitatively seen as hard to beat for convenience rather than having real taste or treat appeal)

• Simply put, “sweet food = sweet mood”

83% completely or mostly satisfied with current snack choice

• Particularly amongst younger consumers, “breakfast” is a moveable feast…no longer one clear occasion but a procession of consumption moments across the morning. • This fragmentation is driven by hectic morning schedules, trends towards grazing over bigger meals, and the perennial lure of that extra 5 minutes in bed. • Some opt to eat on the run (as in the Energize moment) but others prefer to wait until they’ve arrived at work or returned home from dropping the kids off at school – and can create a moment of calm in which to enjoy a drink and something to eat instead. Some do both! • Often those who delay breakfast say they can’t face food early in the morning and therefore look for something to eat a bit later with sufficient deliciousness that it will tempt/encourage them

The food value of baking plays nicely into the sweet spot of this moment…but resides in ‘fresh baked’ not packaged or biscuits. • Perceptually there’s a big gap between freshbaked (cafes, bakeries, in-store bakery) and prepackaged bakery or biscuits. The latter seen as heavily processed, full of (processed white) sugar, and lacking ingredient integrity. The former seen as embracing healthier ingredients in delicious eating experiences. • With the exception of Oreo and Tim Tam, biscuits are also seen to lack the tastes/textures and sensibility of contemporary baking culture that overlap with overall popular culture. They therefore struggle to gain headspace with the younger people to whom Morning Relax is skewed.

What does success look?

• Sometimes it’s just about a texture break between tasks – like that moment after you’ve put a load of washing on and before you get stuck into the vacuuming. Whilst the heartland of this moment is midmorning, 1 in 5 occasions are considered to be a breakfast replacement.

• Hence the desire for real food which signals better for you…and can pair comfortably with high treat value; or at the very least something that won’t sit heavily in your stomach reminding you that you probably shouldn’t have eaten it!

• 5 0% Completely Satisfied • 33% Mostly Satisfied

What does the Quant say about the product drivers?

21%

Craving

10%

Healthy

9%

No Prep

Important Characteristics for new product development:

• Naturalness (visible presence of real food and absence of artificial ingredients) supports this. • Appeal in local Australian ingredients. • Whilst chewing = filling, softer textures = more soothing. Fresh-baked soft and springy textures are perfect. The lightening up of chocolate via (eg wafer) is another way into this treaty-buthealthy-ish space. • Coffee complementarity (coffee is present in 9% of these occasions)

Semiotics & Other Heuristics:

Bakery/café as spiritual home

Coffee accompaniment

The hand of the cook/chef/baker

Natural materials

9%

Sweet

• The intersection of high treat value and high food value is what reconciles ‘craving’ with ‘healthy’. E.g. dark chocolate, nuts, luscious berries, wholewheat over refined white flour as ingredients and Buzzfeed style natural + delicious recipes eg Nutella + Banana Muffins.

Indulgent language describing natural and healthy ingredients


Snacking Opportunities : Traditional Morning Treat

Sourced

61% pre-purchased 18% impulse 13% brought in café or patisserie

Situation

61% at home 15% at work

Traditional

03

morning treat

The Traditional Morning Treat moment can be summed up as a welcoming, bonding, rewarding and traditional Australian morning tea moment. Compared to Morning Relax it’s more social and less healthy. It has a certain level of satiation, but for the most part it’s time to pause, reconnect with others and recharge your batteries.

Occasion

In the morning: 69% morning tea 15% breakfast or before

Who/ Who With:

73% over 40yo Majority working full time or part time. Relatively social:

22%

with partner

24%

with friends or family

44%

alone

Why (F):

48% little treat 13% relax 12% reward

Why (E):

24% happy 22% indulge 19% refresh 15% energize

What:

32% sweet snacks 11% savoury snacks 19% bakery 8% drink

Starting Point: Biscuits category: 5% Sweet plains 5% choc coated 5% sweet cream Arnott’s share of Packaged: 31% Arnott’s 7.7% Tim Tam 4.5% Scotch Finger 2.8% Monte Carlo

70:30 Sweet:Savoury 15% sweet biscuits 9% cakes and muffins 8% chocolate 6% chips and salty 5% coffee

Size of Prize:

38%

of people

2.1

x per week

8.4%

occasions

$1480m


13

“I tend to take an all or nothing approach to my treats”

T

raditional Morning Treat separates itself from “indulgence”, combining both purpose and pleasure to brighten up any day. While it is normally at home, it’s also important at work where treats are a natural complement to a short tea or coffee break. Biscuits are firmly entrenched in this occasion, with Arnott’s share of processed snacks being higher in Traditional Morning Treat than any other moment. It is also the most strongly skewed to sweet (vs savoury) snacks.

• Lack of contemporary and artisanal craft cues is undermining pleasure. As we become a nation of foodies, biscuits are increasingly seen as lacking integrity.

Other things to know about the Traditional Morning Treat opportunity:

What does success look like?

The occasion has strong emotional value

Hero Categories:

With the increasing emotional and physical pressure of day to day life, reconnecting with people around you and taking a moment to enjoy yourself is one of life’s everyday antidotes. Traditional Morning Treat tends to skew towards the more easy going typologies who upweight enjoyment and pleasure over health. The Traditional Morning Treat moment is a moment each to reinvest in yourself. It is always before lunch, often prompted by a friend or partner, giving people a chance to take a break in their day. • This is a moment where a pleasure shared is a pleasure doubled. There is a huge amount of affection for Arnott’s in this occasion.

• Trusted, reliable, have stood the test of time. • Quality Biscuits • Childhood Memories • Family Memories/Traditions • Part of growing up Australian • Handed down from generation to generation • Tasty, crunchy, yummy treat • Amazing variety, something for everyone However the default consumption of biscuits in this occasion is changing: • People are placing increasing importance on any treat occasion, adopting an all or nothing approach. Biscuits losing ground to treats that deliver more sensorial experiences eg croissants, pastries, sourdough toast.

• More and more people avoiding processed foods and sugar in an attempt to get their health and wellbeing under control. • Reliant on habit and tradition, many see biscuits as a habit of grandmas generation, not theirs. • Frighteningly many under 30s see no role for biscuits as they save themselves for indulgent treats, buy handmade treats in cafes or replace treats altogether with a takeaway Café latte. Competitively biscuits are being attacked from above, below and adjacent categories: • In store bakeries are doing a great range of home-style, fresh baked biscuits and cookies that are good enough to take out and cheap enough to eat every day. • Multi cultural offers are abundant in IGA,

• Sweet plain and cream biscuits • Chocolate Coated biscuits • Chocolate confectionary • Pastries, cakes and muffins

Brands:

• Tim Tam • Scotch Finger • Monte Carlo • Kit Kat, Mars, Milk Way • Bakers Delight • Mc Cafe

89% completely or mostly satisfied with current snack choice • 5 9% Completely Satisfied • 30% Mostly Satisfied

What does the Quant say about the product drivers?

22%

Craving

12%

Indulge

9%

Sweet

8%

No Prep

Harris Farm, Papa Pasticcia and Italian delis. • Cadbury and Lindt constant flavour rotation bringing excitement and news to the category • Oreo have infiltrated the foodie world via association with food bloggers and chefs as well as through their contemporary cooking programme. • Adult oriented muesli bars with chocolate are combining health and BFY. • And at the other end there are $1 biscuits. “Permission” is creeping into Traditional Morning Treat: The morning is a time, particularly for controllers, where a certain level of permission matters. Increasingly consumers are living by the philosophy that if your day starts well the rest will follow. This is causing an increasing desire for treats with real ingredients, freshly baked, lack of artificials and lack of processing all help to add permission points.

Semiotics & Other Heuristics:

Freshly baked

Pleasure matters

Real ingredients

Portion control

Modern Australia

Homemade

Learn from tea and coffee

Style adds substance

Important Characteristics for new product development:

• Taste and texture to deliver sensory pleasure • Must go with a hot drink • Hero real ingredients for their pleasure • Made for adults with adult sensibilities • Good for sharing • Move closer to rustic homemade and away from processing • Familiar and traditional flavours to drive craving • Consider upweighting satiation to steal from bakery or upweighting indulgence to steal from confectionary

Wholesome ingredients for satiation


Snacking Opportunities : Afternoon Top-up

Situation 75% at home 14% at work

Sourced 69% pre-purchased

04

Afternoon Top-up Occasion

As the name suggests, the Afternoon Top-Up opportunity is about bridging that gap in the afternoon/early evening when you feel a bit peckish and it still feels like ages until Dinner; or about topping yourself up in the evening to help you wind down and ensure you’re not hungry when you go to bed.

50% between lunch & dinner 17% after dinner/ before sleep

Very slight (40+) older skew

67%

14%

What:

Why (F):

Starting Point:

of people

Biscuit category share of occasion: Sweet plains 4% Flavoured savoury 3% Crispbreads 3%

x per week

Who/Who With:

Across total: 25% sweet snacks 21% savoury snacks: 14% salty 12% fruit 9% choc confec 6% muesli bars Within Packaged Branded (39% of total) 50:50 Sweet:Savoury 28% salty 18% choc confec

alone

35% relax

22% fill up 21% tide over (till next meal) 9% pass time

Why (E):

19% refreshed 18% happy 18% energized 17% calmed

with partner

Arnott’s share of branded packaged snacks: 20% (8% of total) Shapes 4.6%

Size of Prize:

62%

3 20% occasions

$3700m


15

“Sometimes on the way home, the thought of munching a handful of chips or nibbling on some nuts just pops into my head. It’s like a scratch I need to itch while I wait for dinner be ready! ”

M

ost of it happens at home, but those who’ve had early lunch or are working late experience this moment at work. Similarly whilst it’s mostly experienced alone, it can also be a moment shared with a partner. Whilst in the foreground this is about fill, in reality it’s as much, if not more, about emotionally tiding you over (passing time, distracting from boredom) as it is about physical satiation. Orienting to the later part of the day, Afternoon Top-up is the only moment where savoury is as important as sweet. At 28% of packaged snacks and 14% of overall snacks, this is salty’s heartland.

Other things to know about the Afternoon Top-up opportunity: The Afternoon Top-Up opportunity comes in several shades: It pivots around the Homecoming

• Coming home from school starving and needing to tide yourself over until Mum dishes up dinner • Coming home from work looking for something to nibble on while you cook the evening meal • Coming home from school/work/uni needing to make a swift turnaround to get back out to some form of activity – and grabbing something to keep hunger at bay until you eat later With two flanking occasions that occur slightly earlier and later in the afternoon/evening

• A break at work in a long afternoon to relax and refresh (the PM equivalent of the Morning Relax moment) • A top up post dinner…often amongst younger consumers (and especially teens) this is partly about topping up (because teens are constantly hungry), and partly about having something to distract them from boredom whilst completing homework, watching TV, playing games/on their phone [The ‘passing time’ functional need] In fact, people often confuse boredom for hunger

• We eat because we’re bored and/or want something to distract us when we’re doing something mundane. So this moment is as much/more about emotionally tiding you over as it is about physical sustenance. Because it’s the thing you eat before or after you eat (dinner), there’s a strong element of wanting something that will tide you over but won’t spoil your appetite [reinforced by the fact that you may be eating out of boredom disguised as hunger in the first place] • So, although filling up/tiding over are important functional benefits, being too substantial is a disadvantage as a characteristic.

• Texturally we know that ‘crispiness’ cues lightness. Reinforced by an eat comprising many smaller pieces vs one large one (which obviously plays to salty’s strengths). People believe that smaller pieces = better for you (even when that’s rationally not true and/or they just use size as permission to eat more pieces than they originally intended!). • The relationship with dinner also helps to skew this opportunity towards savoury (reinforced by our cultural imprinting of savoury ‘appetisers’). Although in reality the sweet/savoury divide is 50/50, perceptually this moment anchors in savoury. Outside the supermarket, Quick Service Restaurants actively targeting this space with ‘snacking’ offers. • Sliders, pockets, GoBuckets, SnackBoxes, Loose Change Menu, All Day Breakfast etc In line with overall health and wellness and food trends, people seeking (and main brands offering) stronger food cues and permission points to consume. Not necessarily hard claims but greater food cues to imply ‘better for you’. • Rise of Rice Crackers & Grainwaves also in large part a function of offering a better for your option for Top-Up (and social) moments. Sweet Biscuits miss out in this occasion because they are too big & too plain to compete in the centre-ground of the moment. Minis in single serve packs a step in the right direction to addressing format barriers, but… • Not as moreish, delicious or light as the hero options

• Sugar content and refined white flour perception means they are seen as out of step with food trends impacting the moment. This is Shapes’ primary field of play - because at its heart most people still see it as the biscuit (baked) that’s a (less oily) chip alternative. • But it’s losing its distinctive BFY position and is being outpaced by an evolving competitive set on alignment with relevant food & delicious contemporary taste cues.

• Many people believe that Grainwaves are baked not fried (because the framing of grains is baking not frying); some also believe Red Rock Deli & Kettle are. • Chips have done much to make themselves feel both better for you and more delicious by aligning with food trends in terms of flavours and new (perceptually) healthy bases like grains, seeds, sweet potato, veggies (as in Veggie Chips), as well as their overall presentation. Red Rock Deli in particular has done much to shift perceptions of the entire salty category. That they have also reduced sat fat is mostly lost on people who are more interested in a permissible impression from a brand/product they love to eat than hard health claims. • Beyond the loyal core, most consumers see Shapes as no better for you than chips – artificial (via pack colour and highly coloured seasoning), not distinctive in being baked not fried, erring stodgy via white flour (vs premium and ‘new age’ chips). And for the most part lacking the interesting flavor news to complement its classic family favourites.

What does success look like? Hero Categories and Brands:

Chips and other salty snacks – Smiths, Red Rock Deli, Grainwaves, Thins Rice crackers Dips (esp hommous) – perceptually with veggie sticks; in reality with chips and crackers! Hot Snacks e.g toast (and QSR snack boxes) At the healthier end a handful of nuts in the ‘whilst cooking dinner’ moment.

Important Characteristics for new product development:

• Tides me over but not too filling. Crispiness plays to this. • Many “trips to mouth” (high piece count) • S avoury flavours – and flavours pushing out against food trends and implying greater food/health value (including flavours that push over the boarder from savoury towards sweet ie offer a sweeter experience without the sweet/sugar baggage) • Increasing need for permission points as general health and wellness trend; more impression based than hard claims: can be addressed by ingredients (grains, veggie bases, inclusions of herbs and spices) and by presentation

83% completely or mostly satisfied with current snack choice

Semiotics & Other Heuristics:

Light, bright, natural tonality

• 4 9% Completely Satisfied

(Avoiding connotations of heaviness or artificiality)

• 34% Mostly Satisfied

What does the Quant say about the product drivers?

22%

Craving

12%

No Prep

12%

Healthy

9%

Filling

Strong food value in presentation

Crispiness = Lightness

Happy enjoyment


Snacking Opportunities : Indulgence

Who/Who With: Everyone

05 Indulgence is a state of mind more than an occasion. When you want it you want it. It typically occurs after lunch and onwards, when defences are down and the cravings are too strong to resist.

Demographics are undistinguishing except a slight trend to older consumers with small families or no kids. The most social moment by a long way:

33%

with partner

27%

with with kids or family

38%

alone

Why (F):

Situation

45% little treat 15% relax 13% reward 9% special treat

76% at home 7% at work

Why (E): 30% happy 27% indulge 11% refreshed 9% calm

What: 31% sweet snacks 17% savoury snack 16% Choc confec 14% frozen 11% bakery

Occasion

Post-lunch 43% between lunch & dinner

Direct Competitive set 60:40 Sweet:Savoury 35% Choc confec 28% Chips 9% chocolate biscuits

40% after dinner/ before sleep

Starting Point: Biscuits category: 9% Choc coated biscuits 12% other biscuits

Sourced

70% pre-purchased 12% impulse

Arnott’s share of Packaged: 18% Arnott’s 4.7% Tim Tams 3.1% Shapes

Size of Prize: • 79% of people • 3.4 x per week • 28% occasions • $5180m


17 “No one I know eats biscuits. They are a waste of calories. If you’re going to eat something sweet there are so many better options.”

I

ndulgence is all about yielding to the pleasure, there is no need to eat, people are not hungry, they just want something delicious. Subscribing to the belief that a pleasure shared is a pleasure doubled (and that calories consumed with a partner or friend don’t count), this is the most social occasion. This moment subverts the dominant wellbeing paradigm encouraging people to do what makes them feel good (rather than control what they eat). The second largest moment and the weakest for Arnott’s success in indulgence could be a strong source of gain.

Other things to know about the indulgence opportunity: People are spoilt for choice in indulgence with old favourites and new temptations both in the supermarket and convenience stores Indulgence embraces the controller and the easy going mindset but we often see it expressed differently: • For the Controllers it’s about indulging my adult sensibilities, upweighting quality over quantity and finding things that reflect discernment eg Connoisseur Ice Cream, Lindt Excellence. • For the Easy Going it’s often about indulging my inner child. Enhanced by the nostalgia that comes from your favourite childhood treats (things that were previously restricted) eg anything with Nutella, Marvellous Creations. Milky Way, Hokey Pokey ice cream, Freddo frogs and lollies. All indulgence occasions are a bit special, worthy of having something you love and never denying yourself. • Many premium brands are gaining share in this occasion as it’s so important, they can justify paying more eg Red Rock Deli and Tyrells Chips, Lindt Chocolate, Magnum and Connoisseur ice cream.

While treat and indulgence are often interchangeable words, the differences are marked:

“Indulgence is a chance to get out of the rut of daily life and just be.”

Treat

Indulge

Before lunch

After lunch

Simple

Complex, engage all 5 senses

Some permissibility helps

Pleasure outweighs guilt

Part of daily ritual

Crave

Natural complement to tea & coffee

No drink required

Delights the senses

Seduces the senses

Family appeal

Adult led

Need, pick me up boost

Want, yield to pleasure


Snacking Opportunities : Indulgence

Indulgence “Indulging myself gives me a comforting feeling – kind of like chocolate melting in your mouth – you don’t want to rush it”

Indulgence can cover a range of occasions and needs including:

For the sweet tooths, indulgence and chocolate are inseparable

• An afternoon pick me up

• Women are most often the custodians of chocolate. For them a treat isn’t much of a treat without chocolate.

• A soothing chocolate mood lift • Instead of dessert • A sweet treat after dinner • Something to take to friends houses • To share with friends when they come over • A reward once the kids have gone to bed • A little reward/bribe for the kids • When the cravings get to much to avoid • A bit of self pampering

• Many women advocating the ability of chocolate to release endorphins that make you feel happy…and self medicating themselves on a daily basis. • Everyone has a different point of view about the type of chocolate they prefer but chocolate of some sort generally tops the favourite list. The more healthy controllers generally prefer dark chocolate – some because the are less likely to over eat it and others because they can over eat it (without guilt). • The characteristic that stands out for everyone is the smooth, creamy, rich mouth feel. •The non sweet tooths, dive into their favourite chips on this occasion. Creating an indulgent treat is multidimensional and defined by a set of rules or conventions that define ‘worth paying more for’ • Multi sensorial taste with interesting flavours and textures eg adult, sophisticated. • Better craftsmanship and expertise than the norm of the category eg evidence of skill

and expertise in the making. • Better packaging than the norm of the category eg boxes, gold foil, black. • Better ingredients than the norm of the category eg real ingredients not flavours, Murry River Salt, Madagascan Vanilla. • Better brand, embracing the humanity and soul that brings unique character and personality to the brand. More often than not, biscuits are a dunking commodity (to accompany tea) or a last resort if family or friends come over unexpectedly. They are not considered part of the foodie world of sweet indulgences As far as biscuits go, Tim Tam sits at the top of the biscuit tree but still fall short of an indulgent treat.


19

Why do biscuits miss the mark for indulgent treats?

What does success look like?

•T  here are linked to the work occasion, always in the tea room at work, kind of common…

Hero Categories:

•A  ssociated with daytime treats, default choice for morning tea •T  oo filling and heavy (carby) for a pleasure only occasion

• Block Chocolate • Chocolate Bars • Ice cream • Chips

•T  oo family oriented and not adult first

• Cadbury, Lindt • Snickers, Kit Kat • Streets, Connoisseur • Smiths, Red Rock Deli • Messina

•L  ack sensory pleasure

90% completely or mostly satisfied with current snack choice

• Too mindless and not enough mindfulness. Not enough portion control, too easy to mindlessly over eat

• 58% Completely Satisfied

• Tied to a hot drink

• 32% Mostly Satisfied

• Long life shelf stable, plain packaging

6 foodie philosophies to consider embracing within indulgence:

Semiotics & Other Heuristics:

• Nespresso

•L  ack sophistication •O  ld fashioned and traditional not contemporary “my Grandmother treat with a cup of Bushells”

Brands:

What does the Quant say about the product drivers?

24%

Craving

11%

Sweet

Hit the afternoon

Showcase the chocolate

Bite size portion control

Embrace the colour codes

Indulge in the ingredients

Eat with your eyes

Craftsmanship

Food porn

Good enough to gift

14%

Indulgent but worth it

7%

No Prep

Important Characteristics for new product driver: • Taste and texture working together to deliver a sensory experience • Real chocolate, Belgium chocolate, single origin etc • Hand made quality • Doesn’t fill me up • Portion controlled • New flavor combinations add interest • Reinventing the classics to combine the familiar with the new (same same but different) • Borrow from restaurant culture, including exploring things like street foods, night markets and exotic fruits • Make it instagramable • Sharability


Five snacking opportunities  
Five snacking opportunities  
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