Found this interesting webinar from IRI.

1. Health & Wellness:
Redefining Healthy Living
IRI Times & Trends: November 2009

2. Executive Summary
INSIGHT ACTION
» Consumers’ adoption of healthier lifestyles has » Drive the transition to healthier living with
been gradual, marked by a growing prevalence innovative, well-rounded programs that educate
of obesity and low exercise compliance rates consumers on the benefits of healthy living and
the important role that CPG plays in achieving
wellness; tie programs turn-key CPG solutions
to underscore ease of use
» The market for functional and better-for-you » Accelerate the development of this valuable
food and beverages is growing quickly, driven niche market through initiatives addressing
by consumers’ heightened awareness and consumer hurdles to healthier eating, including
understanding of the important role food and price, time constraints, taste, availability and
beverages play in living a healthy life information
» The market for natural and organic food and » Conduct frequent and granular assessments
beverages is growing, with battle for share across key consumer groups, including trips,
occurring across and within retail channels trip types and channel shifts; align distribution/
assortment and marketing strategies to
prominent trip types
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3. Executive Summary
INSIGHT ACTION
» The market for beauty care products » Stimulate growth with value-oriented
has been relatively flat, driven by programs touting innovative, self-
consumers’ quest to look good at all administered solutions that address
stages of life, but tempered by everyday beauty needs
conservative usage patterns
» Heavy beauty shoppers represent a » Drive relevance across heavy shoppers
sizable growth opportunity; this with comprehensive beauty marketing
segment is characterized by strong programs which reinforce the notion of
feelings about the connection total wellness and underscore the
between inner wellness and outer importance of feeling and looking good
beauty
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4. Healthy Living
Obesity has reached epidemic proportions in the United States;
government agencies and health advocates are working to reverse this
dangerous trend.
Obesity Trends Among U.S. Adults
(Aged 18 and Older)
1990 2008
No Data <10% 10%-14% 15%-19% 20%-24% 25%-29% >30%
Source: Centers for Disease Control; Behavioral Risk Factor Surveillance System
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5. Healthy Living
Exercise compliance continues to be a stumbling block to effective
lifestyle management.
2007 Prevalence of Recommended Physical Activity
(Aged 18 and Older)
Recommended
physical activity is
defined as at least 5
days a week for 30
minutes a day of
moderate intensity
activity or at least 3
days a week for 20
minutes a day of
vigorous intensity
activity
Source: Centers for Disease Control; Behavioral Risk Factor Surveillance System
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6. Healthy Living
Exercise Trends
as % Consumers Concerned with Condition
Among those
Exercise Is An Important Part of Life Exercise Most Days
with specific
health Weight 27% 19%
concerns, the
need for Cholesterol 21% 14%
programs
highlighting Heart Problems 18% 12%
exercise as a
component if Diabetes 16% 11%
a healthy
Osteoporosis 15%
lifestyle is 10%
significant.
Total Panel 21% 33%
Source: IRI MedProfiler™ VIII
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7. Healthy Living
U.S. Functional Food & Beverage Market
The market for $ Billions
functional food
and beverages Soft Drinks/ Enhanced Water $9.6
is growing
quickly, driven
Dairy (inc. Yogurt) $6.8
by consumers’
heightened
awareness and Bakery/Cereals $4.6
understanding
of the important
Confectionary $2.3 Projected Compound
role food and Annual Growth Rate
beverages play (2007-2012)
in living a Savory Snacks $0.5
6.1%
healthy life.
Source: PricewaterhouseCoopers- Leveraging Growth in the Emerging Functional Foods Industry,
August 2009
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8. Healthy Living
As innovation Products with Wellness Claim Share of CPG Spending
around Across Grocery, Drug, Mass and Convenience Stores (excluding Walmart)
wellness- % Chg Yr Ago
related Dollar Sales Unit Sales
attributes All Natural 12% +3.2% +1.0%
continues
Low/Less Fat 5% (5.6%)
and (2.3%)
consumers’
Any Grain Claim 4% +9.8% +5.6%
quest for
healthier food 5+ Grams of
2% +5.0% (1.0%)
Fiber per Serving
option grows,
these Low/Less Calorie 1% +5.3% +3.4%
products will
Any Low Sodium 1% +5.0%
to capture (0.1%)
increased Any Organic
1%
Claim +3.4% (0.1%)
share of
Source: IRI Health & Wellness Advantage™ - Powered by IRI Liquid Data; 52 w/e 10/4/2009 vs. same
wallet. period prior year
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9. Healthy Living
Foods and beverages touting wellness-related attributes span a wide
number of CPG categories, and momentum is strong.
“All Natural” Claim Share Across Key Edibles “Any Grain” Claim Share Across Key Edibles
Categories Categories
% of Total Category Sales- FDMxC % of Total Category Sales- FDMxC
Pt Chg YA Pt Chg YA
Natural Cheese 49% (1.4)
Cold Cereal 54% +0.5
Bottled Water 30% (0.6)
Fr. Bread &
23% +1.3
Carb. Beverages 20% (0.3) Rolls
Cold Cereal 11% +0.1 11%
Salty Snacks +3.9
Fr. Bread/ Rolls 8% +0.7
Fz Dinners/
6%
Entrees +1.1
Salty Snacks 8% +0.8
Total Edibles 6% +0.2 Total Edibles 4%
+0.3
Source: IRI Health & Wellness Advantage™ - Powered by IRI Source: IRI Health & Wellness Advantage™ - Powered by IRI
Liquid Data; 52 w/e 10/4/2009 vs. same period prior year Liquid Data; 52 w/e 10/4/2009 vs. same period prior year
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10. Healthy Living
Better-for-you food and beverages are fairly well-entrenched across
consumer segments, but significant upward potential remains.
Index of Household Penetration of Edibles with Wellness Claim
By Consumer Segment
(Index: 100 = Average)
USDA
100% Whole
Low Fat No Fat Low Calorie Multi-Grain Certified
Natural Grain
Organic
96.3 98.8 97.4 95.3 93.6 92.1 76.0
Lower Income
101.0 100.2 100.6 99.9 101.5 98.8 96.8
Middle Income
102.5 101.0 101.9 104.3 104.6 108.5 124.8
Upper Income
Households with 103.3 102.4 101.3 115.7 109.0 133.4 106.3
Children
100.5 98.0 97.6 92.3 94.8 108.5 113.2
Hispanic
Source: IRI Health & Wellness Advantage - Power by IRI Liquid Data; 52 w/e 10/4/2009 vs same period prior year
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11. Healthy Living
Natural & Organic Food & Beverage Sales*
$Billion
As the
market for Compound Annual
Growth Rate
natural and
organic food 13.2%
and
$34.1
beverages $30.6
grows, battle $26.6
for share is
occurring
across and
between
specialty and
mass market
2006 2007 2008
retailers.
Source: Nutrition Business Journal. *estimates across all channels, including mass market, natural food
stores, and direct channels
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12. Healthy Living
For wealthier shoppers, vitamins are playing an important role in
strategies developed to save money through disease prevention.
Vitamin Trends
Category Growth and Purchase Propensity
Unit Sales Purchase Propensity by Income; Index (Avg= 100)
Income Segment Definitions
% Growth vs YA Getting By Living Comfortably Doing Well
Getting By
• One member households, 6.0% 70
Liquid 101 116
income up to $19.9K Vitamins/ 6.7%
• Two or more member Minerals 20.3%
households, income up to
$34.9K
2.4%
Living Comfortably 94 100 103
Mineral
2.0%
• One member households, Supplements
income $20K - $34.9K 8.6%
• Two or more member
households, income $35K 6.2% 104 100 98
- $54.9K 1 & 2 Letter
Vitamins
4.8%
Doing Well 2.0%
• One member households, 87 97 108
income $35K+ -3.3%
• Two or more member 2009
Multi-Vitamins 1.6% 2008
households, income $55K+
3.6% 2007
Source: IRI Consumer Network™; 52 weeks ending 10/11/2009 and same period prior year
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13. Healthy Living
Declines in demand for beauty products were driven by conservative
usage patterns, but tempered by consumers’ quest to look as good as
possible at every stage of life.
Beauty Care Growth Trends*
Dollar Sales Change vs Year Ago ($ Millions)
$124 Total Beauty Care
Market Value
$11.5B
$42
$22
-$144
Unit Sales
(3%) (2%) (1%) (5%)
% Chg YA
Total Beauty Skin Care Cosmetics Hair Care
Source: IRI Beauty Shopper Report
* Excludes fragrance
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14. Growth Opportunities
The key to capitalizing on opportunity around natural and organic foods
is understanding and delivering underlying drivers and inhibitors of
purchase behavior.
Attitudes Toward Organic Foods
as % Adults with Internet Access
I would buy more organic food/ 78%
beverages if they were less expensive
Organics have a shorter life span 66%
vs conventional products
Organics are better for me vs non-organics 61%
I wish there was a wider selection of 60%
organics where I shop
I always try to buy locally grown, 59%
whether organic or not
Source: Mintel, Eating with Meaning, January 2009, Survey of 2000+ adults with Internet access
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15. Growth Opportunities
Often Read Nutritional Labels on Food
as % Consumers Concerned with Condition
Nutrition
label
Weight 34%
readership is
quite low,
particularly Cholesterol 27%
among the
country’s Heart
24%
most at-risk Problems
grocery
shoppers. Osteoporosis 21%
Diabetes 21%
Source: IRI MedProfiler™ VIII
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16. Growth Opportunities
Support parental efforts to instill healthy eating habits with concise and
education-based promotional programs.
Parent Strategies with Regards to Kids Snacking
as % Consumers
62%
52%
47%
42%
32%
Offer snacks W atch Offer snacks Offer low fat Offer low
with nutrients portion sizes that are snacks calorie
fresh/not snacks
processed
Source: IRI 2009 Snacking Study
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17. Growth Opportunities
Heavy beauty shoppers represent 40% of industry sales, and hold strong
feelings about the relationship between inner wellness and outer beauty.
Index of Feelings Toward Personal Beauty
Across Shopper Segments
(100 = Average)
Buyer Definitions 103.4
Natural ingredients
Based on Annual make products
Beauty Expenditures in
100.7
better for me
Food, Drug, Mass,
Superstore and Club 90.9
Channels
Heavy: >$185 105.1
Leading a healthy
Medium: $70-$185 lifestyle makes one 99.0
more beautiful
Light: <$70
90.4
Heavy
Medium
Light Average = 100
Source: IRI Beauty Shopper Report
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18. Manufacturer Action Items
New Product Development Marketing Merchandising
- Develop educational awareness
- Invest to understand key wellness campaigns regarding healthy - Provide brand information
consideration across key lifestyles as well as specific
consumer and target groups; and wellness/ disease
health benefits of product management benefits via in-
reevaluate key brands to identify ingredients
opportunities for targeted brand store informational displays/
extension opportunities - Develop targeted marketing kiosks
messages against high potential
- Be vigilant of technological segments, communicating - Leverage shopper insights to
innovation; rapidly explore specific health benefit linked to assess shopping patterns of
feasibility of adopting promising the ailment/condition/ wellness healthier brand buyers to
new ingredients/ systems/ goal identify optimal shelf
processes across key categories/
placement, adjacencies and
brands) - Tap into or collaboratively build
promotions
larger-scale health and wellness
- Evaluate risk/rewards of marketing programs
offering value-priced better-for- - Cross-merchandise healthy
you products targeting lower - Integrate marketing programs brands with other healthy
income and value-conscious into retailer partners’ existing options to provide solutions
consumer segments health and wellness initiatives to consumers
18 Copyright © Information Resources, Inc., 2009. Confidential and Proprietary

19. Retailer Action Items
New Product Development Marketing Merchandising
- Develop educational awareness
- Invest to understand key campaigns regarding healthy
- Provide brand information
wellness consideration across lifestyles as well as specific
and wellness/ disease
key consumer and target health benefits of product
management benefits via in-
groups; reevaluate store brands
- Develop targeted marketing store informational
to identify opportunities for
targeted line extension messages against high potential displays/kiosks
opportunities segments, communicating
health benefit linked to the - Leverage shopper insights to
- Look for low-cost innovation ailment/condition/ wellness goal assess shopping patterns of
opportunities by monitoring healthier brand buyers to
better-for-you innovation within - Tap into or collaboratively build identify optimal shelf
and outside of current store larger-scale health and wellness placement, adjacencies and
brand portfolio categories marketing programs promotions
- Evaluate risk/rewards of offering - Demonstrate commitment to - Cross-merchandise healthy
value-priced better-for-you natural/organic foods through brands with other healthy
products targeting lower income participate in urban farming options to provide solutions
and value-conscious consumer programs; heavily market to consumers
segments program participation across
marketing platforms
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