Category Captains 2020

Page 1

CATEGORY

CAPTAINS An Industry Leadership Supplement from Canadian Grocer

2020


! W E N *

available in Maxwell House & Nabob

100% Compostable

â€

Made with plant based materials and coffee bean skins.

The same great coffee consumers know and love, now in zero waste* packaging!


COFFEE Coffee is the largest sub-segment of the total beverage category ($1.4B) , and the number one beverage in Canada, even above water2. For over a decade, Canadians have consistently consumed an average of 2.8 cups of coffee per day, with 75% of those cups being consumed at home.2 While coffee consumption has remained flat, coffee dollar sales have consistently grown year-over-year (+4.3% CAGR P5Y); driven by the single serve or “on demand� category.1 The single serve brewer ownership in Canada is 46%3, and in retail, single serve is the second largest coffee segment

with 38% share1. Pods is the largest format in single serve coffee and continues to demonstrate growth at a +8.5% compound annual growth rate (5yr CAGR).4 More than ever, Canadian consumers are concerned about their environmental footprint, particularly of the environmental impact of pods consumption and the plastic waste they are contributing. The #2 barrier of purchase, after price, for single serve pods is waste.5 The opportunity to grow the coffee pods category is by serving this consumer need with compostable coffee pods.

COFFEE SEGMENTS

Tassimo $82MM, -20% Pods $433MM, +14%

1% 6%

Roast & Ground $662MM, +13%

14%

31%

On Demand $526MM, +7%

Coffee Association of Canada, 2019 Canadian Coffee Drinking Trends

2

Coffee Association of Canada, 2018 Canadian Coffee Drinking Trends

3

Nielsen MarketTrack,, NAT XNFLD GB +DR

4

IPSOS KHC Study +MM, Sales $ MM, 2019

5

CONSUMERS CARE ABOUT THEIR ENVIRONMENT FOOTPRINT

Instant $197MM, +18% Nespresso $9.9MM, +52%

Nielsen, MarketTrack, National GR+DR+MM, All Coffee, L52 Weeks, Period Ending August, 22 2020

1

37%

10%

Ground $515MM, +9% Whole Bean $145MM, +22%

Source: Nielsen Market Track, NAT XNFLD GB +DR +MM, Last 52 Weeks, Period Ending August 22 2020

56% of consumers

40% of Canadian adults who drink coffee and/ or tea agree that pods should be compostable.7

actively shop for food with non-plastic packaging6

6

IPSOS KHC Study

7

Mintel, 2019

Compostable pods have 70% lower processing emissions and 85% less petroleum-based plastic vs. recyclable pods8

York University, Technical White Paper exploring end of life management of compostable and plastic coffee pods study by Author Dr. Calvin Lakhan

8

COFFEE PODS $ SALES $ SALES IN MILLIONS

1,800

Pods* are Growing +5% (4 Yr CAGR)

1,600 1,400 1,200 1,000

73%

71%

27%

29%

70%

69%

69%

30%

31%

31%

800 600 400 200 0

2016

2017

Source: Nielsen Market Track, NAT XNFLD GB +DR +MM, Last 52 Weeks, Period Ending August 22 2020

2018

2019

2020

ALL OTHER COFFEE

PODS*

*Pods excluding Tassimo and Nespresso


Canada’s

favourite dressings

Kraft Salad Dressings make Salad Magic.

Renee’s Gourmet Salad Dressings elevate your everyday salad with only fresh tasting ingredients. Available in the produce section at your local grocery store!

Proudly Prepared in Canada


CONDIMENTS Sales of condiments and dressings have seen continuous growth in recent months driven by increased demand with Canadians eating more at home due to COVID 19. Mintel expects the market will lose some of the gains made in 2020 in 2021, but only some of them. Encouraging more use of products both in cooking and with meals remains relevant for brands, particularly during a COVID-19 recession. 1 According to Ipsos, 40% of Canadians report that they are eating healthier to boost their immune systems to add in wellness as a result of the global pandemic. Salads in particular rank in the top 10 for simple and easy prep meal options to be consumed at lunch/dinner occasions at home. As a result, the Dressings category is +13% this year driven by Refrigerated Dressings as consumers shift behaviour towards refrigerated, homemade & premium shelf stable options with “real” ingredients and clean labels.2 Consumers are also spending a bit more time on meal prep with stove top remaining the top appliance but use of BBQ is on the rise up +3%. One of the top items grilled on the BBQ is burgers. Consumers are still adding familiar flavours to their burgers, but also exploring different flavours & textures via toppings & sauces inspired by food service trends & regional preferences.3

TOTAL PREPARATION TIME - GRILLING 80 60

72.2

40

19.8 19.3 22.3

20 0

4.1

<15 min

15–30 min

Ipsos Path Forward Covid-19 Behaviour Tracker Wave 3 April 30

2

Ipsos FIVE Monthly Data Period – % Food Occurrences Sourced from Home; Top Grilled Items R’12M Ending April 2020.

3

Top Items Grilled on BBQ

Feb ‘20

66.9 64.1

CONDIMENTS AND DRESSINGS: INC IMPACT OF COVID-19, UK - APRIL 2020.

1

Mar ‘20

9.1 7.9

30–45 min

Steak Hamburger Chicken Breast Sausages Hot Dogs Pork Chops

Apr ‘20

2.6 2.4 3.2

1.2 2.3 2.6

45–60 min

60+ min

Sources: Ipsos FIVE Monthly Data Period – % Food Occurrences Sourced from Home; Top Grilled Items R’12M Ending April 2020

FLAVOUR IMPORTANCE 18–34

51%

60%

Source: Stargazer Review – Ipsos Marketing May 2016

55+

55% 35%

Familiar Flavour

35–54

28%

New Flavour

Healthy tension between new and familiar flavours across age cohorts 23%


PHILADELPHIA

CANADA’S FAVOURITE CREAM CHEESE PHILLY GIVES CONSUMERS WHAT THEY WANT!

PHILLY IS THE CONSUMER CREAM CHEESE OF CHOICE!

• Philly is made with REAL milk and cream

• Brand Equity is 10x stronger than the next leading competitor1

• Proudly prepared in Canada • No artificial colours or ingredients • Philly Frosting responds to consumers need for fresh and time saving • Philly Brick delivers on the preferred tasty and creamy texture1

• Philly ranks as the highest against Trust, Quality, Taste & “Good for Baking” vs its leading competitor1 • Philly is the #1 brand household penetration in the category, maintaining 76 $Shr in Cream Cheese2

Cream Cheese 2019 BVC Equity. Nielsen MarketTrack, L52 Weeks, PE 22 August 2020.

1

2


CREAM CHEESE Cream Cheese is a mature category ($267MM)1, with a 2-year compound annual growth rate (CAGR) of +7.6%1. The category is made up of three key segments: Soft, Brick, and Whipped cream cheese. Soft cream cheese is the largest segment in dollar sales (57%)1, focusing on the breakfast spreading occasion. Brick is a unique and highly seasonal segment delivering against the baking occasion, while Whipped sees steady growth and focuses on the consumer snacking and entertaining occasion. The Cream Cheese category has been significantly impacted during the COVID-19 pandemic, as shopping habits have evolved, and consumers have been spending more dollars per trip in the Refrigerated Dairy category (+113% vs PY)2. Soft Cream cheese continues to increase in LB Sales (+5% vs PY3) as consumers upsize during the pandemic driving larger format growth (+11%3). The Brick segment has seen major spikes (+25%3) as Canadians have been reigniting their baking behaviour during the pandemic. Mintel reports that a second wave of baking is on the horizon as it provides a feeling of comfort during uncertainty, and emotion is a key driver for the 60% of Canadians who enjoy baking4.

$ SALES 300,000,000

Nielsen MarketTrack, National All Channels, L52 Weeks Latest 2 Years, All Sales, Period Ending August 22, 2020.

1

Nielsen Homescan, National All Channels, TL Tracked Sales, Period Ending June 13, 2020.

2

Nielsen MarketTrack, National All Channels, LB Sales, L52 Weeks MarchAugust $ Sales, Period Ending August 22, 2020.

3

Mintel, Butter and Home Baking Will see a Second Holiday Wave, Dasha Shor, August 12, 2020.

4

HOUSEHOLD PENETRATION 267,116,497

CREAM CHEESE

BRICK

250,000,000 200,000,000

151,303,267

150,000,000

40.6%

43.0%

68.0%

68.6%

68.8%

2018

2019

84,730,054

100,000,000 50,000,000

28,957,464

+7.6%

+6.0%

+8.7%

W H C IPP C RE ED H A EE M SE

C BRI R H EA CK EE M SE C

C SO R H EA FT EE M SE C

C

C R H EA EE M SE

0

CAGR

41.3%

2020

+8.8%

Source: Nielsen MarketTrack, National All Sales, Period Ending August 22, 2020.

Source: Nielsen Homescan, National, L52W Period Ending June 20th, 2020 vYA, 2YA

BRICK CREAM CHEESE SEGMENT TONNAGE 1,800,000

2019

2020

Cumulative LBs Change YTD

1,350,000 900,000 450,000 0

JAN

FEB

MAR

Source: Nielsen MarketTrack, National All Sales, Period Ending August 22, 2020.

APR

MAY

JUN

JUL

AUG


WE BRING SOMETHING

good TO THE TABLE.

Good service. Good insights. And most importantly, good food. Our approach is simple: connect retailers with the foods Canadians are craving, fueled by market trends and delivered with a smile. With one of the highest fill rates in the industry, we keep your shelves stocked and your most profitable customers satisfied.

HELPING CANADA EAT WELL AND LIVE WELL

@TreeLifeCan

@TreeofLifeCan

Tree of Life Canada

treeoflife.ca


FROZEN ENTRÉES Frozen entrées have a come long way from their “tv dinner” reputation and continue to be a familiar staple for Canadians. The Frozen Dinners and Entrées category is worth $1.8B and is growing at +8% in dollars and +3% in unit volume.1 This increase in dollars is driven by innovative, value added brands as well as better-for-you versions of classic frozen items. While frozen entrees have been brought up to date with modern packaging and premium options, its ease of prep continues to be the central appeal. More than ever before, Canadians are prioritizing health and nutrition; manufacturers have been listening. Recognizing health related innovation in the frozen entrée space, 58% of Canadians feel that frozen pre-packaged meals have gotten healthier in recent years.2 Health-related considerations remain important but do vary by age. Sodium content is a greater concern for consumers aged +45 years for example, while organic resonates more so with 18–44 year age group. Even though frozen entrées have improved, consumers continue to demand more. Quality and natural ingredients continue to be desired, while majority of Canadians are prioritizing environmental considerations for their frozen entrées: 84% of Canadians feel that frozen entrée packaging should be recyclable. Key trends that will continue to drive growth in this space include a combination of globally inspired flavours with diet-sensitive variations such as plant based and gluten free, the use of nutrient dense superfoods and, as always, no preservatives or artificial ingredients. Consumers will continue to use frozen entrées as convenient nourishment for their families, exploring new culinary styles now and into the future.

EATEN IN THE PAST THREE MONTHS 35%

64%

32%

Refrigerated side dishes

30% 25%

Frozen side dishes

“I would eat more if they were less processd.”

21%

Singles-serve refrigerated meals

Base: 2,000 internet users aged 18+

Base: 2,000 internet users aged 18+

Source: Lightspeed/Mintel

Source: Lightspeed/Mintel

MOST IMPORTANT FACTORS

Sodium content

21%

28%

Provides full serving of vegetables

28% 18%

24%

15%

Fat content

16%

High-fibre

18–44

9%

Organic

15%

8%

Fits into a diet

14%

5%

Vegetarian

84%

72%

63%

The packaging should recyclable

They should have less packaging

The packaging should be reusable

45+

Base: 1,390 internet users age 18+ who have eaten pre-packaged meals/ side dishes in the pas three months Source: Lightspeed/Mintel

Percentage who agree... Recognizing health-related innovation in the space, over half of Canadians perceive pre-packaged meals to be getting healthier. While attitudes are trending in a positive direction, the perception that pre-packaged meals are processed persist, meaning hurdles remain in terms of positioning the category as a healthy and natural go-to.

CONSUMERS WANT ENVIRONMENTALLY FRIENDLY PACKAGING

40% 21%

58%

“They have gotten healthier in recent years.”

19%

Multi-serve refrigerated meals

Mintel, PREPARED MEALS – FROZEN AND REFRIGERATED CANADA, AUGUST 2019

2

MOST CANADIANS THINK PRE-PACKAGED MEALS ARE GETTING HEALTHIER

Single-serve frozen meals

Multi-serve frozen meals

Nielsen Canada, Category Performance, National All Channels, 52 weeks ending March 28, 2020

1

Base: 2,000 internet users aged 18+ Source: Lightspeed/Mintel


WE BRING SOMETHING

good TO THE TABLE.

Good service. Good insights. And most importantly, good food. Our approach is simple: connect retailers with the foods Canadians are craving, fueled by market trends and delivered with a smile. With one of the highest fill rates in the industry, we keep your shelves stocked and your most profitable customers satisfied.

HELPING CANADA EAT WELL AND LIVE WELL

@TreeLifeCan

@TreeofLifeCan

Tree of Life Canada

treeoflife.ca


HEALTH & WELLNESS Healthier products are at the heart of the conversation around convenience foods such as snacking, healthy grab-ngo and meal kits . This is primarily due to the evolving values of consumers who are changing their focus from heavily processed, calorie-laden products to healthier alternatives.1 Transparency is key; consumers want to know where their snacks come from, how they are produced, that they contain no artificial colors and flavors and are focused on simple ingredients that are easy to understand.2 In today’s health-conscious society, consumers are turning to snacks that also contain better-for-you ingredients without sacrificing taste or function. Focus has turned to habitually reading labels and seeking out portable products that are minimally processed with clean ingredients.3 While price is important for Canadians when purchasing snack foods, this does not negate interest in high quality offerings. Among the options presented to consumers, snacks with gourmet

flavours ranked as the top area of interest along with plant-based snacks. 4 Interest in plant-based snacks reflects the broader interest in plant-based foods. A recent study saw 28% of Canadians trying to add more plant-based foods substitutes into (their) diet, which is identical to the 28% of Canadians who also show interest in plant-based snacks.5 Restaurants are also offering innovative options in response to consumers demands for healthy convenience - especially during the COVID-19 pandemic. With consumers’ dining and social habits transforming, operators have adapted their businesses to meet these new needs and demands, hoping to gain a competitive edge. As a result, some restaurants are not only offering healthier take out fare but they are also debuting meal kit versions of popular menu items or even items not traditionally on menus. The focus has moved to ensuring customers feel more safe in their food preparation and adding the convenience of home delivery.6

SNACKS OF INTEREST

28% 25%

Ethically sourced

24%

Snacks that promote skin health

31%

28%

27%

23% 18%

22%

Snacks that support relaxation

19%

Snacks with cannabis*

Keto snacks

Canadian Food Service Digest – May 2020

6

39%

29%

Plant-based snacks

Hemp-based snacks

Mintel - Plant Based Food & Drink – Canada, May 2019

5

INTEREST IN PLANT-BASED SNACKS

Gourmet flavours

Snacks with CBD oil*

Mintel – Snacking Eating Habits, Motivations & Attitudes – May 2020

1-4

16% 15%

Men

13%

Women 18–34

Base: 2,000 internet users aged 18+/*1,960 internet users aged 20+

Base: 2,000 internet users aged 18+

Source: Lightspeed/Mintel

Source: Lightspeed/Mintel

35–54

55+


Canada’s #1 Deli Cheese Manufacturer!* Arla® is a farmer-owned global dairy company present in Canada since 1960. Animal welfare, the highest milk quality and state of the art production are fundamental to our existence. Our ambition is to be at the forefront of sustainable dairy farming and bring health and inspiration to the world, naturally. In Canada, Arla® imports, manufactures and markets cheese using traditional craftsmanship, only the finest, natural ingredients and rigorous quality controls to provide great tasting cheeses for every occasion!

*Source: Nielsen MarketTrack, All Sales, National GB+DR+MM, YTD PE Aug 8, 2020

www.arlafoods.ca


NATURAL CHEESE Natural Cheese is extremely versatile and a household favourite for cooking – in fact, and not too surprising, cheese types that consumers usually cook with are driving deli cheese growth year to date. With 97%1 of Canadian households buying cheese and 80%1 of them enjoying cheese that is primarily used for cooking, the deli cheese category has exploded with the increase in cooking at home in 2020 as a result of the COVID pandemic. When shopping for deli cooking cheeses, consumers are more likely to pre plan their purchases than they would with deli specialty cheeses. With a specific meal solution in mind, consumers are also looking to make sure their core needs for assortment are taken care of. Shoppers are motivated by ease of self-navigation. Initially they are looking for cheese type, then brand, price offers and finally an in store price comparison check before finalizing their choice. Deli operators need to ensure that their deli segmentation guides their shoppers to a satisfying purchase, both in store as well as online.

Nielsen Homescan, National Tl Outlet, L52W Period ending Feb 29, 2020

1

$ VALUE % CHANGE VS YEAR AGO2 50

National Brands represent

43 39

38 30 26

25

24 22

13

6

0

6

9

5

JAN 20

34 30

7 6

5 4

7 6

FEB 20

6

6

7

5

5

5

34

28

22

22 18 13

15

12 6

31

16

14

35

33

31 31 32

30 30

28

29

20 19 19 19 19 20 18 18 18 19

23 18

6

21

15 14

12

9

72%

1

27

of the Deli Cooking Cheese category

COVID-19 APR 20

MAR 20

DELI CHEESE

Cheese used primarily for cooking contributes to

33%

1

of the Deli Cheese category

MAY 20

JUN 20

JUL 20

AUG 20

DELI COOKING CHEESE

TOP 5 DELI COOKING CHEESE GROWTH YOY2 Parmesan

27%

Ricotta

27%

Mozzarella Feta Bocconcini

22% 20% 19%

1

Nielsen Homescan, National Tl Outlet, L52W Period ending Feb 29, 2020

2

Custom Hierarchy based on Nielsen MarketTrack, All Sales, National GB+DR+MM, Deli Cooking Cheese for the YTD Period Ending Aug 8, 2020



PEANUT BUTTER Peanut Butter is the main driver for consumers shopping the spreads grocery section1, reaching $308 million in annual sales.2 Over the past year, the category has grown in dollar sales +9% and tonnage volume +9%, the result of key brands, strong performance and COVID-19 pantry loading2. Regular (Stabilized) Peanut Butter is the segment with the largest share (80%) of sales in the category, which should be the focus of shelf space and promotions.2 Natural Peanut Butter is the second largest segment.2 In line with the total category, the main subsegments are all growing, including Creamy (+8%), Crunchy (+13%), Dark Roast (+244%) and Light (+4%)2. With a household penetration of 87%, the peanut-based spread continues to be a staple of Canadian pantries.3 Almost 8 out of 10 Peanut Butter consumers eat it weekly or more often with Breakfast and Snacking as the most popular occasions.3 To disrupt auto-pilot shopping behaviour of the Spreads sections, a horizontal planogram layout with Peanut Butter on the lower shelves can result in a +7% Category Development Index and increased Spreads cross-category purchases.4 Retailers should ensure a proper shelf assortment of value and premium Peanut Butter brands to satisfy consumers’ taste preference and cater to different types of Peanut Butter shoppers: Value options for larger households in search of cost-savings products, Premium options for smaller households in search of healthy and quick snack and meal solutions.

$ SALES IN MILLIONS

PEANUT BUTTER 3-YEAR TREND 300 200 100 0

L52W 2YA

3

Erikson Research, 2020

Smucker Foods of Canada, Spreads POG Study 2018, Virtual Reality Qualitative and Quantitative

4

308 +9%

56,700,264 (+3%)

55,305,549 (-5%)

Nielsen MarketTrack, National All Channels, L52 Period ending Aug 8, 2020

2

Tonn Vol (KG)

282 +9%

260 -3%

IMI JJM/PB Aisle Review Shopper Intercepts March 2018

1

61,714,105 (+9%)

L52W YA

L52W

Source: Nielsen MarketTrack, National All Channels, L52 Weeks Period ending Aug 8, 2020

20% 80%

Natural PB $61,640,745 +15% Regular PB $246,001,562 +8% Total PB $307,642,310 +9%

Source: Nielsen MarketTrack, National All Channels, L52 Weeks Period ending Aug 8, 2020

PEANUT BUTTER SUB-SEGMENTS 300 $ VOL IN MILLIONS

PEANUT BUTTER SEGMENTS

200

248 +8%

100 0

59 +13% Creamy

Crunchy

41 +4% Light

35 +244%

Source: Nielsen MarketTrack, National All Channels, L52 Weeks Period ending Aug 8, 2020

Dark


m b

*

P NON GMO

® *

b m

m m

m

b


PLANT-BASED In Canada, more than 40% of the population is actively trying to incorporate more plantbased foods into their diets. Their compatibility with vegetarian, vegan and “flexitarian” lifestyles is now putting the spotlight on plant-based protein sources. According to research conducted with online Canadian members of the Angus Reid Forum, close to half (43 per cent) of Canadians indicated to be more likely to make the switch to a more flexitarian lifestyle – a less strict diet when compared to vegetarian or veganism. Indeed, as more consumers think about their health, shifting towards healthier eating habits, while scrutinizing where products come from and how they were produced, the demand for animal-protein alternatives and dairy replacements has rapidly increased. Cultural, health and environmental changes have all combined to create favourable market conditions for the rise of plant-based protein. While the total protein demand will double to 943.5 million metric tons in 2054, the market for alternative proteins, including plant-based proteins, is expected to grow at 14% annually by 2024 — up to a third of the protein market.

MARKET DRIVERS for health reasons

24%

for ethical reasons

24%

for environmental reasons

16%

to save money

22%

MARKET SHARE PLANT-BASED YOGURTS Non Dairy minus Danone 62%

Non Dairy Danone 38%

13%

for weight loss

Base: 618 internet users aged 18+ who limit or avoid animal products Source: Lightspeed/Mintel

MARKET SHARE PLANT-BASED REFRIGERATED BEVERAGES Danone 60.2% (+0.5%)

Competitor #1 27.7% (+0.7%)

$ Share Source: Nielsen Market Track, L52W, Period Ending Sept. 5, 2020

PLANT-BASED HOUSEHOLD PENETRATION

2.4%

4.9%

6.7%

Beverages

38.2%

39%

40.9%

Creamers

4.3%

7.0%

6.5%

2018

2019

2020

Yogurt

Competitor #2 4.4% (-0.3%) Competitor #3 2.0% (-0.0%) Competitor #4 1.1% (-0.2%) Other 4.6%

$ Share ($ Shr Chg YA)

Source: Nielsen Market Track, L52W, Period Ending Sept. 5, 2020

Source: Nielsen Homescan Data, Period Ending June 20, 2020


VOTED #1 BY THE WORLDS BEST BARS FOR 6 CONSECUTIVE YEARS #1 PREMIUM MIXER BRAND IN CANADA1

500 mL Bottles

4x200 mL Bottles

8x150 mL Cans

#1 SELLING TONIC BY VALUE IN CANADA2

TO ORDER, CONTACT: TFB ASSOCIATES LIMITED 905.940.0889 | tfb.ca 1. Client Calculated Custom Hierarchy based on Nielsen MarketTrack for the periods ended June 20, 2020 and June 22, 2019 2. Nielsen Canada Last 12 Weeks to June 2020

FeverTreeCanada #mixwiththebest


PREMIUM MIXERS Premium Mixers are an exciting and quickly growing category with +57% growth YOY1 to $19.1 million in 2020, driving all-important value and margin back into the beverage category that has become razor thin. The premiumization trend has translated over to the Mixer category as Canadian consumers are mixing premium spirits with high-quality mixers such as tonics, ginger beers, ginger ales, and sodas, to create world-class restaurant quality drinks that are delicious and easy to make at home. Premium Mixers have catapulted to represent 8% of the total mixer value up from 6% in 2019, with retail value growing more than 6 times faster than Mainstream Mixers. There is potential to continue to grow the Premium Mixer segment to match Premium Spirit’s 25% share of the Spirits category. Consumers are eager to treat themselves, so it is critically important that retailers designate premium shelf and display space to a fast-growing category to earn more profit.

$ Sales in millions

PREMIUM MIXER CATEGORY GROWTH

Two Nielsen Total Canada Mixer Market Reports, L52W Period Ending June 20, 2020 and L52W Period Ending June 22, 2019

1

$19.1m

Compound Annual Growth Rate +55% $12.1m $7.9m

2018

2019

2020

Source: Client Calculated Custom Hierarchy based on Nielsen MarketTrack for the periods ended June 20, 2020 and June 22, 2019

PREMIUM MIXERS DRIVING SALES GROWTH AND HUGE OPPORTUNITY VS SPIRITS Spirits Market $6.7 billion

25%

Mixers Market $231 million

Premium (and above) +3%

8%

Standard & Value (-3%) 75%

Spirits

YoY Growth $ Sales

Premium +57%

Standard & Value (+9%) 92%

Mixers

Source: Client Calculated Custom Hierarchy based on Nielsen MarketTrack for the periods ended June 20, 2020 and June 22, 2019


WE STAND FOR MORE SIMPLE AND MORE NUTRITIOUS FOOD, MORE AVAILABLE AND ACCESSIBLE HEALTHY FOOD CHOICES. AT DANONE CANADA, WE ARE PROUD TO MAKE OUR DIVERSE FLEXITARIAN PORTFOLIO OF DAIRY AND PLANT-BASED PRODUCTS AVAILABLE AND ACCESSIBLE WHEREVER CANADIANS SHOP, FROM THE CORNER GROCERY STORE TO CONVENIENT DESTINATIONS WHILE ON THE GO.

Activia offers dairy and plant-based products featuring the exclusive BL regularis culture to connect Canadians with their gut health.

Silk’s pioneering range of plant-based beverages, yogurt alternatives and coffee creamers encourages Canadians to make small changes that are good for themselves and the planet. Formats: 8 x 100g & 650g Flavours: Our plant-based beverages, yogurt style and coffee creamers are offered in Almond, Cashew, Coconut, Soy & Oat bases

Formats: 8 x 100g & 650g, 12 x 100g, M8X92ml, 145g, 24 x 100g Flavours: 20+ Also available: Activia Shot, Activia PlantBased, Activia Chia, Activia Source of Fibre, Activia Fat Free, Activia No Added Sugar, Activia Lactose Free & Activia Touch Of

Danone is Canada’s first flavoured yogurt made with 100% natural source ingredients and no added sugar or artificial sweeteners. Formats: 8 x 100g & 650g Flavours: Blueberry & Cherry, Strawberry & Vanilla, Peach mango & Raspberry (100g) – Vanilla, Strawberry (650g)

Oikos adds a thick, creamy dose of protein to virtually any recipe, swapping out less healthy ingredients. Formats: 4 x 100g, 650g & 750g Flavours: wide variety Also offered in: 0%, 2%, limited edition, Lactose Free, Triple Zero, High Protein, Pleasure & Organic

Danone Light & Free uses a unique ultrafiltered process to offer more of the protein that builds you up and less of the sugar that can bring you down. Formats: 4 x 95g & 710g Flavours: Mango & Passion Fruit, White Peach & Rapsberry and limited-edition Cucumber, Watermelon & Lime (95g); Vanilla Bean & Apple, Grilled Pineapple (710g)


YOGURT Yogurt in Canada is known as a nutrient dense food, has a household penetration of 90%1 and is the 13th item in Canadians’ grocery list (3rd in dairy). Flexitarianism is on the rise in Canada: 25% of Canadians identify themselves as being Flexitarian - not eating meat some of the time2, and sales of non-dairy yogurts are set to increase year-on-year, now making plant-based a mainstream category. In fact, 36%3 of Canadian consumers purchase both dairy and plant-based products. Consumers are now building a new relationship with food, shifting towards healthier eating habits, while scrutinizing where products come from and how they were produced. In fact, there has been a lot of production innovation in the yogurt category in recent years. Non-dairy yogurts are more accessible than ever and are predominately made from cereal grains and nuts. Plant-based yogurt SKUs have been added to brands’ portfolios, while probiotics and probiotic-containing foods have been growing in popularity over the last several years, and the global market is expected to reach nearly $106 billion by 2025.

HOUSEHOLD PENETRATION IN CANADA

90.2%

2018

89.7%

2019

Active health Greek Skyr Plant-based Kids Regular Light Organic

90.1%

2020

Source of calcium

37%

Source of protein

35%

Promoting stronger bones

2.1% 2.2%

13.8%

6.4% 3.1%

28.9%

18.7%

PLANT-BASED HOUSEHOLD PENETRATION

2.4%

4.9%

6.7%

2018

2019

2020

25%

Natural ingredients

22%

21%

Source of vitamin D

20%

Low in sugar

Nielsen – NLR Analysis, January 2020

22.3%

39%

Help with digestion

Low in calories

Nielsen, Homescan, L52W Period Ending Mar 2, 2019

3

Source: Nielsen Market Track, NAT + NFLD, GB+DR+MM, 52 week Period Ending Sept 5, 2020

MOST IMPORTANT ATTRIBUTES FOR CONSUMERS WHEN PURCHASING A YOGURT

Helps control appetite

Mintel, Plant-Based Food & Drink, Canada, May 2019

2

MARKET SHARES BY SEGMENT

Source: Nielsen Homescan Data, Period Ending June 20, 2020

Low in fat

Nielsen Homescan L52W Period Ending June 20th, 2020

1

18% 15%

14%

Source: Nielsen Homescan Data, Period Ending June 20, 202


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