Consumer and market trends in the food & beverage industry, as reflected by the CAGNY 2015 presentations. This presentation follows the CAGNY 2014 analysis by Schieber Research, available on SlideShare. *Follow us for FMCG trends & innovations presentations, we would love to keep in touch!

1. F&B Company Strategies
CAGNY 2015 Summary, March 2015

2. Introduction
• This presentation demonstrates the strategic trends regarding
innovation and marketing, as demonstrated by the leading food
& beverage companies at the recent CAGNY - Consumer Analyst
Group New York conference (Feb., 2015), following our
monitoring of the 2014 conference.
• We have researched selected companies’ CAGNY 2015 reports in
order to gather major market trends expected to impact the
industry going forward in the United States, including: Pepsico,
JM Smuckers, Hershey, General Mills, Kellogg’s, Campbell’s,
Mondelez and WhiteWave.

3. Key Trends at the Heart of Innovation
As demonstrated by the CAGNY presentations:
Health & Wellness
•Real food, super-ingredients, protein still in focus
•BFY indulgence, healthy premiumization
Channels & Customer Centricity
•Retailer focus and co-operation
•The AFH / foodservice opportunity
•Focus on activation and engagement in physical, and digital channels
Marketing
•Using data to execute & monitor better
•Multi-channel and personal
•Continued digital emphasis
Platforms
•From “bigger better innovation” to platforms
•Serving need states and innovating through insights and data

4. Consumer Trends
• Main consumer trends that were mentioned by the
presenters, are:
• Health & Wellness – simple, natural, real ingredients,
free from
• Personalization
• Digital Lives
• Convenience, snacking and consumption opportunities
• Indulgence and delight

5. Consumer Trends
• Campbell’s: “Revolutionary changes in the
definition and composition of the family;
increasing diversity, new economic realities
and powerful social transformations”
 Consumer trends according to
JM Smuckers

6. Consumer Trends
According to Keurig, core trends which are relevant to the company’s
beverage systems include freshness, sustainability, personalization, choice,
simplicity, sensual experimentation, natural, democratization and wellness.

7. Innovation Platforms
• Hershey says it will accelerate its
snacking portfolio with nutrition
snack Krave (Jerky) responding to
the nutritional trend, as well as to
the snacking trend. The company
also uses brand expansion in order
to build platforms.
 As in 2014, companies
continued to discuss
innovation platforms,
including brand expansion,
ingredient platforms and
occasion-based platforms.

8. Innovation Platforms
• General Mills established product platforms around
key ingredient trends: protein, fiber, gluten-free and
less sugar.
• Mondelez

9. Innovation Platforms
• Campbell’s innovation platforms

10. Innovation Platforms
• WhiteWave

11. Innovation Platforms
• JM Smuckers has expended its core brands into
platforms

12. Health & Wellness
• Today’s health and wellness is about inclusion and holistic wellness, as we’ve
discussed on other Schieber Research reports. This concerns “real” ingredients, natural and
clean label snacks, nutrition and protein, and allergy-free living.
• Unlike previous years, super-fruit did not take the center stage, however other ingredients
(protein and fiber rich ingredients) did.
• Organic food is expected to grow, since “organic” fits the clean label / natural preferences
more than non-organic food and beverage.
• Hershey discussed the
“clean label” trend, which
turned to be one of the
company’s key focus areas
in snacks.

13. Health & Wellness
• Kellogg’s aims to “delight” via
BFY products, recognizing that
consumers are no longer seeking
“diet” foods; rather, they are
seeking wellness and flavor.

14. Health & Wellness
• WhiteWave’s analysis of the health & wellness trend and other macro
trends.

15. Consumption Occasions
• Hershey uses point of sale marketing to expand usage occasions, with special
off-shelf displays and multiple display locations.

16. Digital Lives
• The digital revolution has already affected nearly every aspect of the
consumer’s life, but companies are still struggling to adjust to this connected
world, via marketing, shopping and communication methods.
• Most companies discussed their digital efforts, including marketing, mobile and
e-commerce.
• P&G

17. Digital Lives
• Campbell’s
• Hershey

18. Pricing
• Premiumization trends include either “special indulgence”, “super-
healthy” or highly innovative products – or mass-premium products.
Price points are still on the companies’ menu, achievable through various
packaging sizes.
Hershey: special treat / mass premium
Kellogg’s new packaging sizes

19. Pricing
Campbell’s: Super Premium cold pressed beverages.

20. Channels
• The presenters stated that they are seeking growth through
channel expansion, including away from home channels
and e-commerce.
• Also, companies are joining forces with retailers (both online
and brick and mortar), as well as with away from home customers,
in order to expand the proposition to the end-consumer.
Pepsico channel strategy
and retailer / foodservice
collaborations

21. Channels
Pepsico channel strategy and
retailer / foodservice
collaborations

22. Channels
Pepsico: retailer
collaborations

23. Channels | E-Commerce
Hershey designs its approach and portfolio to win in e-commerce

24. Channels | Reigniting the Store
• Companies are
leveraging
events in order to
connect with the
shoppers at the
point of sale.
Hershey
Pepsico

25. Shopper Data
• Companies are
leveraging consumer
and shopper data in
order to enhance their
marketing & execution
capabilities.
Pepsico
Hershey

26. Shopper Data
Hershey

27. Growth Strategy | Organic Growth
• The presenters continued to discuss the new shopper journey, influenced by
the digital revolution.
• P&G presented a roadmap designed to enhance Total
Shareholder Return (TSR) through focusing on the consumer

28. Growth Strategy | Deals
• M&A’s were mostly bolt-on, aimed at strengthening companies’
positioning in more healthful / snackable categories.
• General Mills and
its acquisitions
• Mondelez acquired Enjoy Life in order to enter
the US allergen-free segment

29. How is this different from 2014?
• Health & wellness continues to be a major subject, focusing on
real food, and providing taste and indulgence through better
ingredients. However, changes include:
More talk:
In-store activation
Multi-channel
Data leveraging
Innovation platforms
Less talk:
Demographic changes
JVs and M&A

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