Gluten Free & Free From August 25, 2014 Natural & Organic - - PowerPoint PPT Presentation

Gluten Free & Free From

August 25, 2014 Natural & Organic ECRM San Diego, CA

Agenda

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Gluten Free Overview Free From Opportunity Free From Execution Q&A

Gluten Free Overview

The Facts About Celiac Disease

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• Celiac Disease is a digestive disease that damages the small intestine & interferes with

absorption of nutrients from food.

• When those with Celiac Disease eat foods or use products containing gluten, their immune

system responds by damaging or destroying villi.

• Villi allows nutrients from food to be absorbed through the walls of the small intestine into

the bloodstream.

• Without healthy villi, a person becomes malnourished no matter how much food one eats.

Source: University of Chicago Celiac Disease Center; NFCA Celiac Center

Health Seekers Other Chronic Conditions Gluten Intolerant Celiac Disease

35 million (12-15% of US) health and wellness consumers

(check food labels, buy natural/organic, eat healthy, have food allergies, are weight-conscious)

45 million (20% of US) diagnosed conditions

(asthma, IBS, ADD/ADHD, migraines, autism, Crohn’s disease)

40 million (17% of US) non-celiac gluten intolerant 3 million (1% of US) celiac disease

(diagnosed and undiagnosed)

Source: MRI, Dr. Fasano 201, Gluten-Free Market Webinar; srginspired

The Gluten Free Consumer Base is Large

The size of the gluten-free market has been reported at 21 million households with 2.6 people per household (totaling 54.6 million consumers or 17% of the U.S. population).

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GF foods & beverages are a $10.5 BILLION

• industry. The market 44% from 2011 – 2013.

Breads, Cookies, & Snacks are the largest categories, with $2.5 BILLION in sales in 2013. July 2012 – July 2013 saw 1,516 new GF product introductions. Natural supermarkets including Whole Foods & Trader Joe’s saw gluten-free sales hit $1.1 BILLION in 2013.

Source: Progressive Grocers February 2014

Gluten Free Growth is Explosive

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survey respondents ages 18 – 24 currently eat gluten free foods.

• f respondents eat GF foods to help

them in their weight-loss efforts.

• f women agree gluten free products are

worth the extra cost.

Source: Progressive Grocers February 2014

Gluten Free Consumers are There

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• f consumers say in-store items such as shelf

tags, designated aisles & lists of products are likely to influence their purchases. 51% of consumers say dedicated aisles in stores would influence them to purchase GF foods. More than ONE in 10 consumers say a mobile app to help locate GF products would impact their purchases. 37% of consumers believe manufacturers should not label products as GF if they never contained gluten in the first place.

Source: Progressive Grocers February 2014

In-Store Options are Endless

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First 4’ Crackers

• Absolutely GF
• Wellaby’s
• Glutino

Snacks

• Ener-G
• Mary’s Gone Crackers
• Glutino

Second 4’ Cookies

• Pamela’s
• Glutino
• Midel

Granola & Cereal

• Bakery on Main
• Udi’s
• Glutino

Third 4’ Baking

• Bob’s Red Mill
• Pamela’s
• Gluten Free Pantry

Pasta

• Tinkyada
• Ancient Harvest
• Sam Mills

Fourth 4’ Bread

• Ener-G

Soup & Prepared

• Gluten Free Café
• Mrs. Leepers
• Sam Mills
• Storehouse Foods
• Gillian’s

16’ Gluten Free (Excluding Free From)

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Free From Opportunity

Free From

Source: National Digestive Diseases Information, March 2012; HealthCare Zone 03/12; National Foundation for Celiac Awareness, 2011; FoodAllergy.org ; American Academy of Pediatrics, 2011

Celebrate and enjoy delicious food carefully produced without common allergens.

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90%

• f all

allergies

free from:

Gluten Free +

The Free From Consumer Base is Increasing

Celiac Sufferers 3 Million Consumers Other Food Allergy Sufferers 130 Million Consumers

Source: American College of Gastroenterology, October 2011; Elucidare, January 2011

1990 2012

<1 in 50 children <.75% of Americans 1 in 10 children 4.0% of Americans

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Food Allergies are on the Rise

• Genetic Setup
• Hygiene Theory

– Our immune system is bored!

• Peanut Roasting
• Early Exposure

– 4-6 months of age for solid foods…

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Consumers are Looking for Product Have-Nots

Source: Hartman Group 06-2013 Ingredients added for special health benefit (e.g. fiber) Higher in nutrients (e.g. protein) Ingreidents I recognize No trans fats Lower in calories Lower in salt Made w/ simple, real ingredients Made w/ natural ingredients Absense of artificial ingredients Absense of artificial sweeteners No high fructose corn syrup Absense of preservatives Absense of artificial flavors Absense of artificial colors Shorter list of ingredients Absense of allergen ingredients (e.g. gluten, nuts, dairy) 64% 61% 60% 60% 57% 57% 56% 54% 50% 49% 48% 46% 45% 41% 41% 36%

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Food Allergies in the News

At least 15 states have guidelines for management of food allergies in schools

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Free From Execution

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Free From Execution at Retail

• Marketing team presentation to retailer: February 2013
• Implementation at retailer: October - November 2013

– 58 stores – 4’ sections – 53 SKUs – 10 brands

• Enjoy Life
• 123 Gluten Free
• Sam Mills
• Cybele’s
• Mary’s Gone Crackers
• Cooksimple
• Pascha
• Home Free
• Pure Bar
• Goody Good Stuff

– Replaced dietetic (sugar free) sections

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Free From Execution: Facts & Dates

10 11 12 01 02 03 04 05 06 07 08 09 13 13 13 14 14 14 14 14 14 14 14 14 Month Year

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Free From implemented in October 2013. All Gluten Free Sales – including Free From – spiked in April just prior to Celiac Awareness Month - up 66% YOY post implementation. Every month post implementation the new set including Free From has

• utperformed

PY Gluten Free sales. Sales/SKU/POD for All Gluten Free SKUs – including Free From -- averaging $28.35 during same period Sales/SKU/POD for Free From

• nly SKUs

averaging $56.38 since implementation

Note: GF assortment was not reviewed at the same time. The changes are a direct impact of FF implementation. Source: KeHE internal data through May 2014

Results: Free From Driving Overall Gluten Free Category Growth

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• In the first 7 months of free from (excluding October due to initial
• rder spike), sales are still 48% higher than the same time frame PY

for dietetic.

Free From Significantly Outperforming Dietetic Program

Source: KeHE internal data through May 2014

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• 1. Focus on winning BRANDS & plug winning ITEM gaps
• 2. Develop annual PROMOTION & ADVERTISING program in

support of winning brands

• Nail key SELLING PERIODS including shippers & pallet

modules

• 3. Create dedicated free from SECTIONS
• Label section & items with appropriate SIGNAGE
• Provide shoppers with necessary EDUCATIONAL

MATERIALS

• Build PARTNERSHIPS with local allergy support groups

“All In” Easier Moves

How to Approach the Free From Opportunity at Retail

Free From Brands

Bobbie Swenson (312) 927-6066 bswenson@enjoylifefoods.com Don Braun (401) 489-4935 don.braun@drschar.com Mike Peterson (678) 226-4200 mike.peterson@kingarthurflour.com Bill Germano, President (757) 233-9495 bill@drlucys.com

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Promotions & Advertising Increases Awareness

Focus on one major allergen per promotional period. Gluten free advertising with additional major allergen call-outs.

Nailing Key Free From Selling Periods

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May: Celiac Awareness Month Oct: Gluten Free Month Back to School Seasonally Relevant

8’ Free From Assortment

Bars & Snacks

• Enjoy Life

Cookies

• Lucy’s
• Enjoy Life
• Home Free
• Dr. Schar
• Kinnikinnick

Granola & Cereal

• Enjoy Life
• Freedom Foods

Prepared

• Cooksimple
• Allergaroo
• Bonavita

Bread & Baked Goods

• Dr. Schar

Baking

• Namaste
• King Arthur
• Ian’s Natural
• Orgran

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Note: All items in the FF set are free from gluten + 4 of the top 8 allergens

Awareness: Brochures & Support Groups

Food Allergy Support of Sacramento

• www.sacfoodallergy.org

The Saddleback Church Parents of Children with Food Allergies Support Group

• www.ocfoodallergy.com

San Francisco Bay Area Food Allergy Group

• www.sffoodallergy.org

SPEWD: Free Food Allergy Support Group

• www.meetup.com/SPEWD-Free-Parents-

and-Children Allergy Support Anaphylaxis Prevention

• yael@anaphylacticallergy.com

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Education: Common Allergies, Resources

• Organization: National Foundation for Celiac

Awareness (NCFA)

• Purpose: Through empowerment, education,

advocacy and advancing research, the NFCA drives diagnoses of celiac disease and other gluten-related disorders and improves the quality

• f life for those on a lifelong gluten-free diet.
• Services: GREAT (Gluten-free Resource Education

Awareness Training) gluten-free education and resources, training, and consulting

• Contact info: Beckee Moreland, Director of

Gluten-free Industry Initiatives, beckee@celiaccentral.org, 215-325-1306x105

• Organization: Food Allergy Resource and Education

(FARE)

• Purpose: (FARE) works on behalf of the 15 million

Americans with food allergies, including all those at risk for life-threatening anaphylaxis. FARE is a 501(c)(3) nonprofit organization that was formed in 2012 as the result of a merger between the Food Allergy & Anaphylaxis Network and the Food Allergy Initiative

• Services: Providing evidence-based education and

resources, Undertaking advocacy at all levels of government, Increasing awareness of food allergies as serious public health issue, and funding world- class research that advances treatment and understanding of the disease.

• Contact info: 7925 Jones Branch Drive, Suite 1100

McLean, VA 22102, Toll-Free: 800-929-4040, Main: 703-691-3179

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Thank you!

Katie Strohbeck Director Consumer Insights & Product Analytics KeHE Distributors 1245 East Diehl Road Suite 200, Naperville, IL 60563 Direct Dial: (630) 343-0071, Cell: (586) 295-1286 Katie.Strohbeck@KeHE.com