State of the Snack Industry

Sally Lyons Wyatt

Executive, Client Strategy & Insights SymphonyIRI Group

Economic volatility is easing somewhat

GDP
-2.5%

3.4% 3.9% 4.2%

Consumer Price Inflation

1.9% 3.1% 1.6%

-0.3%
4.4% Retail Sales -7.0%
Source: Moodys, February 2012

2012P 2011 2010 2009

7.7% 6.4%

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Many consumers are having trouble keeping up

23%
of consumers are having difficulty affording groceries

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Consumer expectations for the next year are decidedly mixed

Anticipated Change in Personal Financial Health in Coming Year % of Consumers

28%
expect deterioration

27%
expect improvements

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However, snack frequency is up

Daily Snack Frequency- 2009 v 2012
Five-Six 3% Three-Four 24%

Seven+ 0%

None 3%

Five-Six 6%

Seven+ 2%

None 0%

Three-Four 43% One-Two 69%

One-Two 49%

2009
5

2012

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Nearly three-quarters want their favorite brands but the drive for effective everyday pricing is intense
% of Consumers Seeking Their Favorite Brands

44% +10 Points! 20% 30%

40%

2009

2012

2009

2012

at a Reasonable Regular Price

6

on Sale

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Snacks play an important role in hunger satisfaction

Perception of the Role of Snacks % of Consumers

Satisfy Immediate Hunger

34%

Mini Meal

9%

Opportunity to Get Needed Nutrition

8%

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A strong majority of consumers are trying to improve their eating habits

87%
of consumers are trying to eat healthier

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Sizable segment of the market view snacks as an opportunity to splurge

55%
of consumers are more likely to eat what tastes good rather than what is healthier

60%
of consumers often snack for enjoyment, not hunger

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A time to satisfy cravings and just have fun

Perception of the Role of Snacks % of Consumers

Satisfy a Specific Craving

32%

Fun & Indulgence

14%

Enjoy Bold & Exciting Flavors

2%

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Natural and organic foods continue to see solid growth

2010: 10.7%

2011e: 10.7%

growth of natural and organic snack sales

Source: Nutrition Business Journal estimates, for combined candy, gum, snacks and bars

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Chart a course for growth in 2012 and beyond!

Everyday Pricing: Long-Term, Strategic Promotional: Short-Term, Tactical Need for Value: Ubiquitous

Find the Right Pricing Lever

Offer Calories That Count

Satiation/ Meal Replacement Dayparts: Old and New Nutritional Nudge

Eating for Wellness Longevity and Cost-Savings Bringing Up the Next Generation Decadence without Dietary Demise Treats That Dont Break the Bank Special Social Occasions Natural & Organic Packaging & Practices Talk About It

Partner for Health & Wellness

Provide Opportunities to Splurge Smartly

Make Peace with Nature

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