Grains & Legumes Nutrition Council

- 2017 Category Report

Grain Foods

Report Background

This report presents a summary of the current trends and research in the

grain foods category and references the following GLNC materials…

• 2017 GLNC Consumption Study

• 2017 GLNC Snack Bar Audit

• 2017 GLNC Bread Audit

• 2016 GLNC Breakfast Cereal Audit

• GLNC weekly Media Monitoring insights

• Global FMCG trends insights

Overview

1. Australian Grain Consumption 2017

2. The Trends: Plant Based

3. Good Carbs, Bad Carbs

4. Snackification

5. Australian Grains on Supermarket

Shelves: GLNC Audits 2016-17

6. Grains in the Media

7. Summary

Australian Grain Consumption

Australian Grain Consumption: 2011-2017

Overall we’ve seen positive movement in the grains category between 2014 and 2017. Although

consumption levels haven’t changed considerably in the last 3 years, the fact we’ve now

observed a halt in the decline in serves of grain foods eaten every day is encouraging¹.

The split between consumption of core and non-core grain foods is consistent with 2014.

2011 2014 2017

Avg daily serves per person 8.43 5.89 5.79

% consumers 95.6% 99.9% 98.5%

Avg daily serves per consumer 9.13 6.36 6.21

3.94

1.86

Core Grain Foods

Non Core Grain Foods 2014 – 1.89

2014 – 4.01

Australian Grain Consumption: 2011-2017

Changing attitudes to grains signal a turnaround in consumer perception of the grains category

with fewer Australians now limiting grains in 2017. But there is still work to be done…

60% in 2014

47% in 2017

The Trends:

Plant Based

Plant Based: The Trend

The trend for plant based foods has gained significant traction in the past few years and both grains

and legumes feature in this growth, especially in product innovation. Showing no sign of slowing

down, increasing innovation and plant based claims are indicators of this growing trend. Thanks to

the International Year of Pulses in 2016 and a number of well-known modern chefs elevating the

humble legume, we’re now seeing increased consumer awareness of their versatility and excellent

nutritional profiles. Legumes are now appearing in all sorts of traditional grain based foods,

including breakfast cereals, snack bars and pasta as well as smoothies, savoury snacks and bliss

balls. More consumers are adopting a mostly plant based or Flexitarian style diet due to the many

health benefits and considerable evidence behind this style of eating …

• Following a plant-based dietary pattern - a diet which is rich in fruit, vegetables and whole grains -

may lower the risk of developing type 2 diabetes² and cardiovascular disease³¯6 by around 20-

25%7.

• Legumes in particular, offer their own benefits, being higher in protein than most other plant foods

and providing an economical source of protein8.

Plant Based: Who & How?

The plant based trend is so far mostly confined to ‘lifestyle’ consumers9, accounting for around

30% of the population who are among the most health aware and who are keen to be the first

to align themselves with new trends. Key sub-trends driving the plant based category include…

1. Alternative protein -both whole grains and

legumes are increasingly being used in combination and alone as a substitute

for animal protein eg plant based ‘meats’

2. Reformulation - many everyday foods are combining grains and legumes or using

legumes alone to boost protein content eg pasta, breads etc

3. New and innovative ingredients - promoting high

plant protein content eg lupin flakes and flours etc

Gold & Green Foods Pulled Oats, Finland

San Remo Pulse Pasta, Australia

Baker’s Life Low Carb Bread, Australia

Freedom Foods Muesli, Australia

TLC Lupin Flakes, Australia

Plant Based: Media

We’ve seen an increasing number of articles purporting the benefits of a plant based diet over the last 12

months, but most notably, the recent influx of favourable media surrounding the Mediterranean diet has also

helped raise the profile of grains and legumes as healthy plant based foods. Articles covering the Mediterranean

diet in particular have linked this lifestyle to reduced risk of dementia, depression, prostate cancer and acid reflux,

alongside boosting cognitive function, mental health and overall wellbeing.

Plant Based: The Opportunities

There are a couple of key areas driving the plant based category which present opportunities

for manufacturers…

• Snacking - recent advances in food technology are allowing development of a variety of plant

based ingredients including sprouted grains and legumes. Snacking offers huge potential as a

category itself and consumer demand is driving innovation.

• Plant based protein - consumers are still focused on protein as a purchase influencer and this is

where grains in combination with legumes can play a part, as consumers increasingly demand

plant based alternatives. Additionally, combining both grains and legumes in one product is of

specific benefit as they provide a complete source of protein, delivering all amino acids

essential for health12.

Sprouted grains and beans

Way Better Crackers, US

Veggies, legumes & whole grains

Table of Plenty Protein Crunch,

Australia

Plant Based: Protein Claims On Pack

The 2017 GLNC Consumption Study showed that 43% of Australians were at least strongly

influenced by protein claims on pack1. Manufacturers are responding to consumer demand

for protein call-outs on pack…. GLNC’s latest Product Audits revealed that 33% of muesli,

granola and cluster products10 and 18% of breads11 have protein claims on pack . With more

demand for plant based protein alternatives, on-pack communication offers a key

opportunity.

Plant Based: The Future

Consumer desire for plant based foods and plant proteins is growing. Although still a relatively

small market, as research continues to show the benefits of a mostly plant based diet, more

consumers are looking for products and alternatives which help them to meet this trend. The

plant based category looks set to continue providing opportunities for manufacturers for the

foreseeable future, with the New Nutrition Business Trends Report noting that the plant protein

trend will likely drive strategy for at least the next 5 years9. Combine this with emerging

evidence which supports the benefits of a plant based diet and this trend is here to stay.

Good Carbs, Bad Carbs

Good Carbs, Bad Carbs: The Trend

Although we’ve previously seen a demonisation of carbs with a focus instead on the Paleo,

gluten free and low carb diets, we’re now seeing a move towards acceptance that they’re part

of a balanced diet, with a focus on quality carbs. Quality carbohydrates are synonymous with

whole grains, so this sub-category is helping to drive growth and movement within this trend.

Current and predicted future key trends are supportive of whole grains, which opens up

significant opportunities for innovation within both the grains and legumes categories. The

evidence for increasing whole grain consumption is compelling…

• Each one serve increase in whole grains every day decreases the risk of dying from all causes

by 7%13, from CVD by 9% and cancer by 5%14.

• Whole grain/high fibre foods have been found to offer the greatest protection against diet

related diseases of all food groups - more so than fruit and vegetables15.

• People with a high whole grain intake had a 23% reduced risk of Type 2 diabetes compared

to those who ate little or no whole grain16.

Good Carbs, Bad Carbs: Who & How?

The GLNC 2017 Consumption Study revealed that consumers who eat whole grain foods are getting the

message on the benefits of whole grains and focusing on quality instead, with a 60% increase in daily serve

consumption amongst whole grain food consumers. But within the wider population there’s still work to be

done, with 2017 data showing that most Australians are falling short on their whole grain consumption, at

under 2 serves a day¹. Increased availability in core categories such as bread, alongside micro-trends like the

cult health status oats have recently established, has helped consumers increase their intake thus far…

Consumption of porridge oats has

more than doubled since

2014

The number of white loaves on shelf has

decreased by 10% in 2 years, with 20 of these

SKU’s replaced by wholemeal or whole

grain loaves. Australians are

increasingly choosing wholemeal

varieties of wraps, crackers and crispbreads

64% of cereals were a source of

whole grain in 2017, compared to 60% in 2014

Good Carbs, Bad Carbs: Who & How?

Consumer motivations within this category are broad, but the key categories at play here are

weight management and digestive wellness. Consumers are altering their carbohydrate intake in

line with key motivators by…

1. Altering carbohydrate intake - swapping their regular carbs such as bread, for alternatives where

some of the traditional ‘bad’ carbs have been replaced eg veggie

bread: 1/3 veggies and/or legumes

2. Improving digestive wellness - new varieties of ancient wheat are being

created to avoid symptoms associated with gluten

eg 2AB Wheat

Fazer Vegetable Breads, Finland Good Mills 2AB

Wheat, Germany

Good Carbs, Bad Carbs: Who & How?

4. Reducing carbohydrate intake - swapping regular bread formats for smaller or lower carb varieties eg

wraps or thins

3. Trading off carb content for an additional benefit – adding in a key purchase influence eg

‘high in protein’ or ‘high in fibre’

Tumaro’s Low Carb Wraps, US

Warburtons Protein Bread, UK

Good Carbs, Bad Carbs: Media

Recent media has been predominantly favourable around the carbohydrate trend - over 2017

we’ve seen an increase of 50% on the number of favourable articles on carbs. The number of

Paleo articles have also decreased by 91% in the last year alongside an increase in favourable

coverage17. So it seems the general media outlook is becoming more focused on balance and

presenting a neutral view on fads that come and go. And the message is getting through -

Australians, like the rest of the world, are tuning in to carbohydrate quality and are increasingly

searching for information on the right kind of carbs to eat.

Consumers are catching on - Google searches

for ‘healthy carbs’ in Australia

Good Carbs, Bad Carbs: The Media

Carbohydrates - favourable coverage has increased and

number of articles has decreased by

over 30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

July -September

FY17

October -December

FY17

January -March FY17

April - JuneFY17

July -September

FY18

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

July -September

FY17

October -December

FY17

January -March FY17

April - JuneFY17

July -September

FY18

Paleo - overall, favourable

coverage has increased and

number of articles has decreased by

over 90%

GLNC Media Monitoring: Carbohydrate Coverage Sentiment

GLNC Media Monitoring: Paleo Coverage Sentiment

Good Carbs, Bad Carbs: The Opportunities

Despite the continuing talk around carbohydrates and low-carb and ketogenic diets, there are

opportunities for manufacturers both within traditional grain categories and also for those

looking to take advantage of the increase in innovation within the space. Many organisations

are already taking advantage of the opportunities relating to this trend, including…

• Re-formulation - traditional grain based carb categories are facing competition - with pasta

consumption having fallen 12% between 2011 and 20169 and facing competition from the

relatively new vegetable category, companies such as San Remo and Pangkarra are offering

alternatives still within the dried pasta category but made with pulse flours instead. Nordic bakery

Fazer have reformulated by replacing around 30% of the grain in their breads with vegetable

purees and legume flours alongside smaller formats of traditional carb products.

Smaller format

Made with lentil & chickpea flour Pangkarra Gluten Free

Pasta, Australia

Warburtons Bagel Thins, UK

Good Carbs, Bad Carbs: The Opportunities

• Associating carbs with energy - this opportunity here is on quality carbs with a focus on whole

grains. As understanding around the importance of carb quality grows, consumers will more readily

consume grain based products as a source of natural energy. This opportunity can take advantage

of another of 2017’s key trends - Sportification - UK brand Soreen re-aligned their traditional malt

loaf with a sports focus and watched declining sales soar.

• Carbs as a form of indulgence - this is perhaps the biggest opportunity for grain innovation and an

association with indulgence sees consumers freely consuming carbs without the restrictions they

place on consumption in other forms. Whole grains are a specific opportunity for this category,

with a gap in the market where indulgent carbs such as cakes, biscuits, pastries and whole grains

combine. Technological advances in the near future will allow this category to expand further.

Deliciously squidgy energy Soreen Malt Loaf, UK

Good Carbs, Bad Carbs: The Future

As we move into an era of increased understanding of the benefits of carbohydrates and in

particular, carbohydrate quality, the opportunities for manufacturers within this space continue

to grow. On-pack labelling is a key communication opportunity - labelling needs to be consistent

and easy to understand for consumers - with on-pack labelling being a clear purchase influencer

for whole grains and fibre. An average of 40% of Australians report that whole grain claims

influence purchasing decisions. Additionally, 23% of Australians are actively looking for better

on-pack labelling to help them eat more whole grains¹. As more favourable communication

continues alongside demand for ‘better’ and more unique options, this trend is likely to

influence industry innovation for years to come.

Snackification

Snackification: The Trend

Nearly all consumers snack these days with younger generations the driving force behind the

growth of this trend - in Australia 92% of millennials replace at least one meal with a snack every

week and globally 56% of consumers eat at least one snack every day18. Several factors make

snacking one of the most consistent and enduring trends to date: no limits on innovation, all

categories can exploit the trend and our increasingly busy lifestyles are causing demand to rise.

With more and more consumers replacing traditional meals with snacks, the demand for healthy

products is on the rise with 3 out of 5 Australians now looking for healthy snacks . Whole grains

and fibre are a key focus here - globally we’ve seen a 31% increase in launches of snack products

with a high or source of fibre positioning19. The grains category has responded…

• The number of breakfast biscuits and grain based snacks increased by 26% between 2015 and 201720.

And consumers behaviour is changing…

• Wholemeal / whole grain crispbread consumption doubled between 2014 and 2017¹.

• Although consumption of traditional muesli bars has fallen, consumption of new bars formats has

more than doubled¹ since 2014.

.

Snackification: Who & How

The younger generation is driving the majority of this category growth, with millennials

primarily looking to snack to tide them over between meals and older generations snacking less

frequently and seeing snacks as more of a treat. With almost everyone choosing to snack at

some point and any category open to innovation, there are endless opportunities. There are

several key strategies at play and many companies, both large and small, are taking advantage

of the technological advances which are allowing innovation to develop.

1. Premium products - people are willing to pay a premium for great tasting snacks that cater to their lifestyle and perceived image eg Good Thins have elevated the humble cracker with offerings including chickpea, oat, corn and rice variations

Good Thins, US

Snackification: Who & How

3. Permission to indulge – upgrading a typically unhealthy snack to a healthier option gives consumers a free pass to indulge eg. ice cream sandwiches using oat biscuits & a focus on protein

4. Every category is open to snackification - legumes

in various formats have really led development in

this category eg. snack sized hummus pots with

crackers

2. No limits on NPD - everyone is a food explorer

and we all want new and innovative ideas eg snack bars using whole grains from the beer brewing

process

Regrained Bars, US

Elovena Oat Sandwich Biscuits, Finland

Tribe Hummus & Pita Chips, US

Snackification: The Media

Media around snacking tends to focus more on younger demographics, with articles covering

‘how to choose healthy snacks’ dominating content. Older generations tend to see snacking as

more of a treat so media coverage for these demographics is rare, whereas we know younger

generations are eating snacks on a more regular basis and seek advice as to what’s the healthiest

snack for any given time of day. Whole grains consistently feature favourably in the media as a

nutritious snack option, particularly when in regards to pre- or post-workout options.

Snackification: The Opportunities

Opportunities within this category abound as there really are no limits – there are considerable

opportunities for healthy and indulgent snacks and with a success rate of 60% (higher than other

categories)9 it’s a low risk option thanks to a number of factors: products within the category usually

have a long life, they lend themselves to small scale production and changing consumer preferences

means even very niche products are successful. There are three key areas for development…

• Bakery with benefits - although most often associated with indulgence and therefore neglected as

a category, consumers have shown that they are willing to trade off if a bakery product can offer

benefits. For example, products that contain ingredients with a health halo, such as ancient grains,

oats, pulses and vegetables are popular.

Beetroot bread Whole grains

Fazer Beetroot Rounds, Finland

Table of Plenty Rice Cakes, Australia

Snackification: The Opportunities

• Smaller format bakery - even more indulgent products such as Oreo Thins are readily accepted, as

they fit into the smaller format or ‘bite sized’ category, alongside core products such as whole grain

or alternative grain crackers and smaller breads. This demonstrates that there’s a real opportunity

to give consumers permission to indulge by adding a health benefit to the product.

• Grains with dairy - dairy products are already well established within the snacking category

because of their beneficial status with health conscious consumers, alongside dairy’s versatility. But

the opportunity for grains within the dairy space is growing too - adding oats and ancient grains

boosts fibre content and increases the ‘staying power’ of snacks and with consumers more

frequently eating snacks in place of main meals, satiety and nutrient content is a key driver.

Oats

Dairy

Yummia Bircher Muesli, Australia

Snackification: The Future

Consumer need, a desire for innovation and available technologies are driving this category and

look set to continue to do so as our eating habits evolve further still. There is plenty of

competition within the category, but the fact that almost anything can be ‘snackified’ means

that there are still opportunities for manufacturers to be first innovators. Similarly, benefitting

from such a diverse audience means there’s room for both niche and mass-market strategies.

Australian Grains on Supermarket Shelves

2016- 2017

Bread Audit – September 201711

25% of all breads were a source of

whole grain

68% of all breads were at least a source of fibre

52% of all breads met the Australian Government’s

reformulation target of ≤400mg/100g

sodium

The majority of breads (89%) had

less than 1 tsp sugar per 100g

57% of all breads were a source of

protein

Snack Bar Audit – April 201720

31% of muesli bars were high in whole grain 63% were at least

a source of fibre

Half of the muesli bars

were rated 4 stars or more

Muesli & grain based bars

contribute just 0.7% of total sugars to Australian diets

Breakfast Cereal Audit – November 201610

64% were at least a source of whole grain

85% were a source, good source or

excellent source of fibre

96% had moderate or low levels of

sodium

68% had less than 2

teaspoons of sugar

44% were a source of protein

Grains in the Media

Grains in the Media: Overall Sentiment

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

October - DecemberFY17

January - March FY17 April - June FY17 July - September FY18

• Unfavourable coverage

increased in April-June following a report linking breads and breakfast cereals with high salt levels.

• Favourable coverage was fuelled by interest in new grain trends following the 2017 Grain Growers Conference.

Overall grains coverage has been favourable, with a steady increase in favourability over the year.

The quarter spanning July to September 2017 saw a slight decline in favourable coverage but in

its place we saw more neutral coverage of low carb diets which demonstrates the increasingly

balanced view we’re seeing from the media.

GLNC Media Monitoring: Grains Coverage Sentiment

Summary

Grains Category: Summary

In summary, although the category is facing competition from new trends and changing

attitudes to foods, there is still significant opportunity for innovation and product development

for grains. Several trends, in addition to those covered in this report, are helping to alter

consumer attitudes to grains and their numerous health benefits. Digestive wellness and the

focus on increasing fibre intake for example, is an opportunity for innovation with tailored

products as well as a communication opportunity. Alongside the trends, communication of the

health benefits of grains is the other half of the story in helping consumers make informed

decisions and easily identify beneficial grain foods.

Any questions, please contact…

Alexandra Locke

Marketing & Communications Manager

a.locke@glnc.org.au

02 9394 8664

References

1. GLNC. 2017Consumption & Attitudinal Study. 2017. Unpublished.

2. McMacken M, Shah S. A plant-based diet for the prevention and treatment of type 2 diabetes. Journal of Geriatric Cardiology : JGC. 2017;14(5):342-54.

3. Medina-RemÓn A, Kirwan R, Lamuela-Raventós RM, Estruch R. Dietary Patterns and the Risk of Obesity, Type 2 Diabetes Mellitus, Cardiovascular Diseases, Asthma, and Mental Health

Problems. Critical reviews in food science and nutrition. 2016:00-.

4. Shang X, Scott D, Hodge AM, English DR, Giles GG, Ebeling PR, et al. Dietary protein intake and risk of type 2 diabetes: results from the Melbourne Collaborative Cohort Study and a meta-

analysis of prospective studies. The American journal of clinical nutrition. 2016.

5. Melina V, Craig W, Levin S. Position of the Academy of Nutrition and Dietetics: Vegetarian Diets. Journal of the Academy of Nutrition and Dietetics. 2016;116(12):1970-80.

6. Dinu M, Abbate R, Gensini GF, Casini A, Sofi F. Vegetarian, vegan diets and multiple health outcomes: A systematic review with meta-analysis of observational studies. Critical reviews in

food science and nutrition. 2017;57(17):3640-9.

7. Harland J, Garton L. An update of the evidence relating to plant-based diets and cardiovascular disease, type 2 diabetes and overweight. Nutrition Bulletin. 2016;41(4):323-38.

8. NHMRC. Australian Dietary Guidelines Providing the scientific evidence for healthier Australian diets. 2013 Accessed online January 2014.

9. New Nutrition Business. 2017. 10 Key Trends for 2018 Report

10. GLNC. Australian Breakfast Cereal Product Audit. 2016.

11. GLNC. Australian Bread Product Audit. 2017.

12. Young VR, Pellett PL. Plant proteins in relation to human protein and amino acid nutrition. The American journal of clinical nutrition. 1994;59(5):1203S-12S.

13. Ma X, Tang WG, Yang Y, Zhang QL, Zheng JL, Xiang YB. Association between whole grain intake and all-cause mortality: a meta-analysis of cohort studies. Oncotarget. 2016.

14. Zong G, Gao A, Hu FB, Sun Q. Whole Grain Intake and Mortality From All Causes, Cardiovascular Disease, and Cancer: A Meta-Analysis of Prospective Cohort Studies. Circulation.

2016;133(24):2370-80.

15. Fardet A, Boirie Y. Associations between food and beverage groups and major diet-related chronic diseases: an exhaustive review of pooled/meta-analyses and systematic reviews.

Nutrition reviews. 2014:n/a-n/a.

16. Schwingshackl L, Hoffmann G, Lampousi A-M, Knüppel S, Iqbal K, Schwedhelm C, et al. Food groups and risk of type 2 diabetes mellitus: a systematic review and meta-analysis of

prospective studies. European journal of epidemiology. 2017:1-13.

17. GLNC. Media Monitoring 2016-17. Unpublished.

18. Choosi. Modern Foods Trend Report. 2017.

19. Innova Market Insights. Snacking Report. 2017.

20. GLNC. Australian Snack Product Audit. 2017.