Spotting Millennial Food Trends - Nancy Kruse, Owner, Leading Food Consultants/Nation’s Restaurant News, from the Animal Agriculture Alliance Stakeholder Summit Titled Cracking the Millennial Code Stakeholder Summit, May 8 - 9, 2014, Crystal City, VA, USA. More presentations at http://www.trufflemedia.com/agmedia/conference/2014-cracking-the-millennial-code

1. Spotting Millennial
Food Trends:
Five to Monitor
Prepared for
13th Annual Stakeholders Summit
May 8, 2014

2. 5 Food Trends
Objectives
• Survey critical issues, opportunities
• Focus on long-term trends
• Analyze implications
2

3. 5 Food Trends
Agenda
• Protein Power
• Veggie Chic
• Super Snacks
• Hot Buttons
• Real Food
3

4. Trend 1:
Protein Power
• Retail Grocery: product
claims jumped 54% past
5 years
• Restaurants: menu
mentions jumped 64% past
5 years
• US is largest market in
world for high protein
products
Source: Mintel; Technomic, Inc.
Greek Yogurt, Energy Bars
Take Supermarkets by Storm 4

5. More Than Half of Adults
Want More Protein in Diet
Source: NPD Group
5

6. Dairy Industry
Focuses on Protein…
6

7. …And Restaurant Chains
Getting on Board
TACO BELL’S POWER PROTEIN MENU
TARGETS MILLENNIALS
• 20+ Grams of Protein
• Fewer Than 450 Calories
7

8. Protein Power
Implications
• Opportunity to exploit
• Addition NOT subtraction
• Watch for backlash
• Expect changing guidelines
• Consider gender segmentation…
8

9. … As More Marketers
Target Millennial Males
“Brogurt” Appeals to Men
9

10. Trend 2:
Snackification
1%
5%
6%
9%
36%
42%
Usually just snacks, no
meals
3 meals, no snacks
3 meals with many snacks
between
Usually skip or replace 2
meals with snacks
3 meals with few snacks in
between
Usually skip or replace one
meal/day with snacks
24/7 LIFESTYLES UPENDING CONVENTIONAL MEAL PATTERNS
Source: Technomic Snacking Occasion Consumer Trend Report

11. Millennials Are
Super Snackers…
• “Time-crunched multi taskers”
• Convenience/food on demand
• Fresh, real, less processed
11

12. …And Entrepreneurs Meet
Their Demands
Nature Box Delivers Healthful Small Bites
12

13. Opportunity for Next-Gen Items
At Both Retail, Restaurants
McDonald’s Snack Wrap
13

14. Snackification
Implications
• Need to reconsider positioning, portioning, packaging
• Second-generation product opportunity
• Emphasis on good and good tasting
• Monitor for changes as millennials age,
form households
14

15. Trend 3:
Food Activism
SELECTED HOT BUTTONS, BUZZ WORDS
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 Antibiotic/Hormone/Steroid Free
 Biodynamic
 Cage Free
 Clean Foods
 Carbon Footprint
 Energy Efficient
 Eco-Friendly
 Ethical
 Fair Trade
 Free Range
 Gestation Crates
 Grass Fed
 GMOs
 Humanely Raised
 Local
 Natural
 Organic
 Permaculture
 Rainforest Alliance
 Recyclable
 Sustainable
 Traceable
 Vegetarian/Vegan
 Whole Foods

16. Animal Issues
Gaining Support

17. GMO Uproar
Catching Fire
LEGISLATIVE ACTIVITY HEATING UP AT STATE LEVEL
• 97% sugar beets
• 93% soybeans
• 90% cotton
• 90% feed corn
• 60% papaya
genetically modified
in US

18. General Mills Selling
Non-GMO Cheerios
• Announced Jan 2, 2014
• GMO Inside campaign
was totally digital:
-40M Facebook Posts
-200M You Tube Views
• Sales “down somewhat”
since change

19. 19
Everyone’s
A Journalist…
“10 Most Influential Mommy Bloggers” Include:
Heather B. Armstrong, 1.5MM+ followers
-Based in Utah
Jenny Lawson, 100M+ followers
-Based in Texas
Stacie Connerty, 50M+ followers
-Based in Georgia
Source: Cision

20. …In Wired
World
1.5MM You-Tube views…
Jamie Oliver’s “Pink Slime”
episode on ABC
…250,000 signatures
Bettina Siegel, Houston, blogs
“The Lunch Tray”
20

21. Chipotle Marketing Hits
Millennials’ Hot Buttons
“Outrageously twisted and utterly unsustainable world
of industrial agriculture”

22. Food Activism
Implications
• Monitor digital conversations
• Stay ahead on hot-button issues
• Enlist appropriate advocates, spokespeople
• Recognize emotional underpinnings
• Pay special attention to kids, moms
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23. Trend 4:
Veggie Chic
WHY IS PRODUCE SO HOT?
• Center-of-Plate Volatility
• Culinary Sensibility
• Consumer Health Interests
• Range of Options
• Versatility/Flexibility
• Availability/Formats
23

24. Cruciferous Craze
Typifies Veggie Trend
California Pizza Kitchen’s Brussels + Bacon Pizza
Herbed Goat Cheese, Caramelized Onion, Romano Cheese
24

25. No. 7 Subs’
Broccoli Sandwich
• Fresh Mozzarella
• Thai Basil Pesto
• Fried Lemon
25

26. Brennan’s of Houston’s
Chicken-Fried Cauliflower Steak
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Purple Majesty Potato Salad, Vegan Mushroom Gravy

27. Despite Veggie Innovation,
Meatless Monday Stumbling
• US House of Rep. Vegetarian Caucus recently formed
• But proposed Meatless Monday in cafeteria fails
• San Diego School District adopts in September 2013
• One of largest districts to embrace
• Importantly, majority colleges and universities fail to endorse
• “Students felt we were regulating their choices”
• “Name sounds like we’re taking something away from customer”
• “Yale Dining actually increased quality of meat it serves”
Source: Foodservice Director
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28. Veggie Chic
Implications
• Veggie interest will increase
• Reflects desire for good food…
• …NOT rise in vegetarianism
• Meatless meals least popular way to save $
• Shifting priorities favor “clean,” “whole,” “real”
• Major opportunity for animal protein
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29. Trend 5:
REAL Foods
• Butter consumption +24% past decade
• 5.6 lbs per capita 2013 vs. 4.1 lbs in 1997
• “Wholesome, pure, not a lot of other ingredients”

30. Nose-to-Tail Cuisine,
Butchers Bounce Back
30

31. Demand for Local Foods
Boosts Farmers’ Markets
FARMERS’ MARKETS ON GROWTH CURVE,
THOUGH LOSING LUSTER IN SOME AREAS
1994 2004 2013
Number of Markets 1,755 3,706 8,144
Source: USDA AMS
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32. Microwaves Lose Favor As
Consumers Seek Involvement
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33. REAL Food
Implications
• Quality definition changing
• Real foods favored
• Powerful consumer drivers
• Both millennials and boomers
• Signifies goodness without deprivation
• Standards of identity not established
• MAJOR opportunity for animal proteins
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