The Minnesota Agri-Growth Council Annual Meeting and Speakers Conference is the organization’s premier annual event, bringing together key stakeholders in the food and agriculture industry from Minnesota and the Upper Midwest. As part of this program, Phil Minerich with Hormel presented on the topic of Trends in Food Production and Marketing.

2. Consumer Behaviors
Marketing to the savvy supermarket shopper

3. Changes in Breakfast Foods
• In the past 10 years, more consumers are
visiting fast food restaurants for breakfast and
eating more in their cars
• How many of the top 10 foods/beverages
consumed for breakfast in 2001 are different in
2011?
– 5 or more ─ 3 to 4
– 1 to 2 ─ None
Source: The NPD Group’s National Eating Trends® database

4. Nothing Has Been Replaced!
2000/2001 2010/2011
1. Coffee 1. Coffee
2. Cold Cereal 2. Cold Cereal
3. Juice 3. Juice
4. Milk 4. Milk
5. Bread 5. Fruit Only change in
6. Fruit 6. Bread 10 years is the
order of fruit
7. Eggs 7. Eggs and bread!
8. Hot Cereal 8. Hot Cereal
9. Tea 9. Tea
10.Bacon 10.Bacon
Source: The NPD Group’s National Eating Trends® database

5. Looking More Into Coffee…
• #1 on the list of foods/beverages consumed for
breakfast
• The share of restaurant coffee orders continues
to rise as Starbuck’s rebounds and McDonald’s
and others increase focus on coffee items
• In what year was per capita coffee consumption
the highest in the US?
– 1946 ─ 1978
– 1999 ─ 2011
Source: The NPD Group’s National Eating Trends® database

6. 1946 is the Peak!
50 Per Capita Coffee Consumption in the US
(Gallons)
45 1946!
40
35
30
25
20
15
10
5
0
10
14
18
22
26
30
34
38
42
46
50
54
58
62
66
70
74
78
82
86
90
94
98
02
06
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
19
20
20
Source: The NPD Group’s National Eating Trends® database, USDA, ERS

7. What is the Food of the Decade?
• Yogurt, hummus, and sushi have been called the
food of the decade by different organizations
based on increased consumption
• Which of the three do you consider to be the
food of the decade?
– Yogurt: consumption up 80% since 2000
– Hummus: consumption up 1900% since 2000
– Sushi: consumption up 2000% since 2000
Source: The NPD Group’s National Eating Trends® database

8. Hint, Hint

9. Yogurt has made a place in
consumers’ lives
Percent of Individuals Consuming
at least once in two-weeks 31.5
28.4 29.4
28.3
26.2
23.3
Yogurt 20.3 21.3
19.8
17.5 16.9 17.8
Sushi
Hummus
1.2 2.1 1.9 1.9 1.9
0 0.1 0.5 0.5 0.4 0.8 0.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: The NPD Group's National Eating Trends® In-Home/Away-From-Home database; Years ending Feb.

10. Continued Recessionary
Economy
• Rising gas & commodity prices
• Slow job growth
• Weak consumer confidence
• YTD* 2011 retail sales +0.1%
• Which of the following retailers has experienced the
largest increase in same store sales this year?
– Wal-Mart ─ Nordstrom’s
– Kohl’s ─ Whole Foods
Source: Nielsen
*24 weeks ending June 11, 2011
Total U.S. Food/Drug/Mass (incl. Walmart)

11. Despite Economy, Luxury is
Winning!
% Change in Same-Store-Sales
2011
10
5
0
Kohl's
Target
Walmart
Macy's
Kroger
DollarGeneral
Nordstrom
WholeFoods
-5
-10
Source: Nielsen Trends That Matter Presentation
using company press releases; latest monthly or
quarterly news releases

12. Consumers Treat Themselves to
Relieve Stress
• Consumers are growing tired of penny pinching
• Purchasing an inexpensive treat, like a cupcake,
provides a quality break in a stressful day
• Purchasing luxury items such as designer
clothes or shoes on occasion become a reward
and make shopping enjoyable again
Sources: 2010 Medill Reports - Chicago,
Northwestern University, Ellen Gibson – Associate
Press

13. Analyzing Savvy Shopper
Behaviors Appropriately
1. Percents can be very misleading, look at all of
data to understand the trends
2. Taste and habits drive eating behavior and do
not change quickly. Cost and convenience
influence food choices
3. ……?
Source: The NPD Group’s National Eating Trends® database