Presents: Top 10 trends for 2014

Top 10 trends for 20141. Waste not want not2. You can trust us3. Simpler pleasures4. Look out for the small guy5. Health is more holistic6. “New” superfoods7. Rise of the hybrid8. The protein horizon9. New stealth strategies10. Alternative alternatives

Trend 1: Waste not want not

Waste not want not• The development of secondary markets for the reuse of food and by-product recycling

with energy recovery will become the norm.• Transit and packaging innovation will come to the fore to keep food fresher for longer,

along with smaller pack availability. • Waste “footprints” could become the next environmental measure for both

big and small companies.

Patent and scientific article publications tracked with “food waste” and “food loss” has increased significantly in the last years.

2009 2010 2011 20120

50100150200250300350400450

187

259

312

418

39 55 88 88

Patents Abstracts

30.8%

31.1%

CAGR2008 to 2012

Food waste related patents and abstracts tracked

Packaging is the key player in waste reduction

UK: McLelland Seriously Strong Grated Extra Mature Cheddar Cheese

UK: Fresh Milk & Real Fruit Strawberry & Blackberry

Canada: Santa Cruz Organic Raspberry Lemonade.

Single serves Freezable Recycling more

“Single serve packs for no waste.” “Frumoo can even be frozen beforehand, reducing waste and

keeping the lunchbox cold.”

“Santa Cruz Organic recycle more than 95% of their waste – an award

winning achievement.”

Trend 2: You can trust us

You can trust us• Ingredient origin claims will move to the front-of-pack and be more prominent.• The use of tracking codes or QR codes on packaging to view where ingredients

are sourced from will be more readily applied.• Hormone free, GMO free and similar claims will be sought out by consumers.• Niches for super premium ingredients or products may evolve to meet the demands

of more skeptical and discerning consumers.

Source: The Guardian Source: BBC News

How transparancy is displayed to gain trust

Hongkong: Babynat Organic Apple & Blueberry Puree for Babies

Canada: Schneiders Country Naturals Maple Syrup Countryside Pork Sausage

France: Letal Du Boucher 10 Haches Au Boeuf: 10 Beef Burgers

Traceability No antibiotics Origin of the beef

Full traceability of ingredients. Pork raised without antibiotics. Beef origin: France

www.innovadatabase.com

Trend 3: Simpler pleasures

Simpler pleasures• Consumers are reassessing their needs and going back to basics.

They are finding more pleasure in simpler food. • There has been a shift towards home cooking, with food bringing family and friends together.• There is growth on the budget and premium sides, but the center ground being squeezed.• Value packaging and “good value” claims on the products themselves and in-store value

promotions are prospering.

Examples of simple pleasures

Netherlands: AH Basic Milk chocolate France: Prepat Pate Toute Prete Moelleux Au Chocolat: Chocolate Cake Paste

UK: Tesco Finest Restaurant Collection Coq Au Vin

Rebranding private label Ready to bake Finest ingredients

Rebranding of the private label brand with more attractive

packaging.

Ready prepared paste for a sweet chocolate cake.

Tesco has recently relaunched its Finest line.

www.innovadatabase.com

Trend 4: Look out for the small guy

Look out for the small guy• Big companies will be increasingly looking to smaller companies for product innovation ideas.• Craft-inspired or handmade snacks, biscuits and beverages will be the “small guy” categories

with the most potential to impact future trends.• New ingredients, concepts and preparation methods for more health benefits will emerge.• Flavor authenticity, innovation or in some cases flavor novelty will be a strong driver

for new product development.

Although total US beer consumption is decreasing, craft beer is gaining popularity. The 52% increase in craft beer sales from 2007 to 2011 indicates that mainstream beer is also losing share to crafted beers. 2007 2008 2009 2010 2011 2012

5

6

7

8

9

10

US Craft Beer Sales (in $ billion)

CAGR = 12%

Source: Brewers Association

Small companies, big ideas

UK: Vegesentials Beetroot, Kiwi & Carrot Smoothie

UK: Blooms Favourite Recipe Hot and Smokey Pop Corn

Netherlands: Justnuts Pineapple & Cashew Bar

Authentically pan-popped maize. Proudly made in Britain by hand in

the old-fashioned way.

Happy honest treat. Nice and healthy. Organic.

Authentic Organic & healthy

An important marketing strategy for the success of small companies is a fun or inspiring personal story of how they came up with their product idea. It establishes the brand as small and honest and creates an emotional connection to the consumer.

New healthy concept:½ veg & ½ fruit

www.innovadatabase.com

Trend 5: Health is more holistic

• More body, mind and spiritual connections will be made with particular ingredients.• Health-giving, natural extracts full of rejuvenating medicinal properties will be applied in

food and beverages, where possible. • Vitamins & minerals promotion will continue to be a strong claims focus.• Traditional medicine alternatives will be further explored, including Traditional Chinese

Medicine and Ayurveda.

2012 - H1 2012 - H2 2013 - H10

20

4060

80100

120140

160180

100

126

152

Global food and beverage product launches tracked with a vitamin/mineral fortification (2012 H1 – 2013 H1)

Health is more holistic

Product launches tracked with vitamin/ mineral fortification was up 52% from 2012-H1 to 2013-H1.

+52%2012 – H1 = Index 100

Fortified – naturally healthy – traditional medicine

Belgium: Delhaize Superfruit Grape, Acerola, Raspberry Strawberry Juice

UK: Braham & Murray Good Sweet Cinnamon Hemp Seed

Germany: Aalenaa Hari Crunch Organic Crunchy Muesli Open Up

Vitamin fortification Naturally healthy Traditional medicine

High in vitamin C Naturally rich in omega 3 and protein

All the ingredients for Hari Crunch Cereal derived from controlled biological cultivation, after an

Ayurvedic formulation (Ayurveda is one of the world's

oldest medicines).

www.innovadatabase.com

Trend 6: “New” superfoods

• Regulatory pressure is leading to an increased focus on fruits and vegetables,due to the global obesity epidemic.

• Previously forgotten vegetables and alternative grains will be applied in a wide range of products to convey more old fashioned health and nutrition.

• Marketing fruit & vegetables’ natural health attributes as far as vitamins and minerals are concerned will become more pronounced.

“New” superfoods

A blast from the past: the new superfoods: parsnips, artichokes, kale, salsify, freekeh and chia are being tracked in more and more products.

Interesting formats for new superfoods

France: Trachealth Simple Super Seeds Chia Superfoods Drink Blend

Malaysia: Tuckers Natural Multifibre Rosemary and Rock Salt Crackers

United Kingdom: Inspiral Raw Wasabi Wheatgrass Kale Chips

Rosemary & rock salt crackers are partly made from cracked green

wheat freekeh.

A delicious raw food snack made of kale and wasabi and raw superfoods

like wheatgrass.

Chia Freekeh Kale as a snack

Blend of chia, spirulina, chlorella, fruits, ginger, curcumin, wheat grass,

omega 3s, fiber, electrolytes, vitamins and minerals.

www.innovadatabase.com

Trend 7: Rise of the hybrid

Rise of the hybrid• Well-known brands will venture into previously unconsidered categories.• Cross-branding will become more prevalent to capitalize on brands’ popularity and as a

means to further reinforce brands in the consumer mindset.• New flavors, textures and delivery methods will continue to excite from an innovation

perspective.• Limited edition innovation should increase as companies test the market to see if new

concepts are worth pursuing.

Hybrid product examples

Japan: Fritolay cola flavored corn snacks

United Kingdom: Starbucks Germany: Dr. Oetker Pizzaburger Speciale

Pepsi cola flavored Fritolay corn snacks.

A delicious doughnut/muffin fusion. Crunchy bread rolls with a juicy pizza topping inside.

New flavor Combination of 2 traditional concepts

Combination of 2 traditional concepts

Trend 8: The protein horizon

The protein horizon• The addition of protein sends subliminal weight management messaging due to

its satiety attributes. This marketing platform will continue to offer added value.• More male specific marketing will emerge for mainstream protein products.• Vegetable protein ingredient development will continue to flourish, in order

to become available to a wider range of consumers.

Globally, a sharp rise in product launches tracked with protein claims has been reported.

2010 2011 20128090

100110120130140150160

Development of the protein claims tracked on a global basis

2010 = Index 100

For men, weight management and snacking

US: Powerful Yogurt Plain Germany: Body attack protein pancake with stevia.

US: Rickland Orchards Greek on the go Greek yogurt coated mixed berry acai granola bites.

Suitable for individuals with high protein requirements

(e.g. diet-conscious and athletes).

Mixed berry acai flavored granola bites with Greek yogurt coating.

Yogurt for men Weight management Greek yogurt as ahealthy snack

The first yogurt for men. Excellent source of protein.

www.innovadatabase.com

Trend 9: New stealth strategies

New stealth strategies• The fat, sugar and salt content of products will continue to decrease,

but most manufacturers will choose to not actively market this. • The US demonization of trans fats will lead to the disappearance of

partially hydrogenated fats altogether.• Industry pledges will continue to evolve. Some companies will set their

own targets in order to gain the perception of being socially responsible.

2009 2010 2011 201275

80

85

90

95

100

105

Development of the average sodium content in US cracker launches tracked per 100g

2009 = Index 100

Manufacturers are flying under the radar with stealth reduction. For example, US companies are reducing the sodium content of savory snacks like crackers. It is happening, albeit quietly.

Stealth reduction: sodium and sugar

Kraft Original Barbecue Sauce

Sodium reduction

Kraft Original BBQ sauce has reduced its sodium content by 40% since 2005. This reformulation was

achieved through the use of ingredients: natural hickory smoke

flavor, dried garlic and dried onions.

Now: Heinz Tomato Ketchup: 23.5g sugar

2005: Heinz Tomato Ketchup: 25.7g sugar

The Heinz classic Ketchup was tracked

with 8.5% less sugar in the most recent product

launch tracked.

Stealth: -8.5%

Sugar reduction

Trend 10: Alternative alternatives

Alternative alternatives• Consumers are expecting more choice to the dairy alternative mainstay soy. • New product categories such as kogurt (coconut milk yogurt) have emerged.

This will continue as a result of on-going “free from” new product development.• Nut and grain milks satisfy other health trends such as “The protein horizon”

and “New superfoods.”• As gluten free options continue to expand, so too are the possibilities for

wheat replacement. Improvements are being made in texture and taste.

The number of tracked almond drink product launches has more than doubled from 2010 to 2012.

2010 2011 20120

50

100

150

200

250

100 107

209

Development of global almond drink product launches tracked in dairy alternative drinks category (2010-2012)

2010 = Index 100

Alternative products accross different categories

US: Enjoy Life Cherry Cobbler Decadent Soft Baked bars

US: Suja Vanilla Cloud: Coconut Almond Drink

US: Amy’s Dairy Free Rice Crust Cheeze Pizza

Free of multiple allergens Soy milk alternative Gluten free pizza

Free of 8 most common allergens. Dairy free. Nut free. Soy free. Wheat

free. Tree nut free. Egg free. Fish free. Shellfish free. Gluten free.

Dairy, soy and gluten free. Dairy free and gluten free pizza made with organic rice flour.