Report: High Quality Snack & Beverage Consumers TOC

CHAPTER 1 EXECUTIVE SUMMARY
- The hot topic
- The future decoded
  - Snacks and drinks occasions are growing
  - Consumers are embracing higher quality snacks andbeverages
  - High quality snacks products have a broad demographicappeal
  - Time pressured, stressed consumers turn to comfortingproducts as a reward
  - Premiumization is still associated with particularoccasions and locations
  - Consumers quality perceptions can be grouped under fourmain factors
  - High quality snacks and drinks are moreconversation-worthy
- Action points
CHAPTER 2 THE FUTURE DECODED
- Introduction
  - Premium products are no longer reserved solely forspecial occasions
- TREND: Snacks and drinks occasions are growing
- TREND: Consumers are embracing higher quality snacks andbeverages
  - Key structural and situational factors illustrate andinfluence trading-up behaviors
  - Mega-trend drivers are also spurring trading upbehaviors
  - Value growth is exceeding volume growth in keycategories
    - This trend is all the more significant given the trendtowards discounting
  - The number and value of super-premium occasions isincreasing
- INSIGHT: High quality snacks products have a broaddemographic appeal
  - Premium consumers are no longer confined to the highearners
    - Accessibility and rising aspirations have fueled thedemocratization of luxury
  - A categorys emotional importance shapes quality seekinghabits
    - Consumers trade up in categories that are emotionallymeaningful
    - In doing so, sacrificial consumption via hi-loconsumerism is apparent...
  - The maturalism trend is an important opportunityseemingly overlooked by the industry
  - Core quality seekers will vary by country and category
- INSIGHT: Time pressured, stressed consumers turn tocomforting products as a reward
  - Consumers are seeking small escapisms from hecticlifestyles
  - Emotive reasons are important snacking motivations
  - Comfort based indulgence is a growing phenomenon
    - Gender habits towards comfort related indulgence differ
  - High quality products in particular are associated withemotional comfort and indulgence
- INSIGHT: Premiumization is still associated withparticular occasions and locations
  - Consumers tend to premiumize and indulge in the evening
    - The importance of the evening occasion is related tohealth concerns giving way to indulgence needs
  - Certain special occasions also trigger premiumization
- INSIGHT: Consumers quality perceptions can be groupedunder four main factors
  - Taste is the most important factor affecting highquality offerings
  - Physical product attributes can influence sensoryquality perceptions
  - Packaging and country of origin are more important forhigh quality products
    - The halo effect of country-of-origin/associationcredentials can help enhance a premium image
    - Product information is more likely to be sought fromhigh quality products
    - Brand alliances act as multipliers of qualityperceptions and expectations
  - How a product is made (credence quality) takes on addedimpetus for high quality offerings
    - Method of production is associated with authenticity andquality
    - Natural and organic is associated with quality
    - Exclusivity is increasingly important to high qualityoccasions
    - Healthiness is often associated with both higher qualityAND inferior taste
  - Experiential quality attributes will influence repeatpurchases
    - The trend towards bolder more exotic flavors is oftenassociated with superior taste and quality
    - Freshness enhances the taste experience
    - Consumers often equate convenience with lower qualityproducts
- INSIGHT: High quality snacks and drinks are moreconversation-worthy
  - Consumers talk more about food and drinks
  - Higher quality products in particular have potential tobenefit
    - Consumers are more emotionally engaged by premiumproducts
- Conclusions
  - Target the mass market with accessible premiumofferings
  - Remain focused on leveraging the attributes consumersassociate with quality
CHAPTER 3 ACTION POINTS
- Introduction
- Target the mass market with accessible premium variants
  - Develop new offerings that target the masstige snacker
  - Case study: understanding how Walkers Sensationssucceeded in doing this
- Align products with key indulgence occasions
  - Target the evening snacking occasion
    - Target the big night in or casual sharing occasion
    - Align products with entertaining at-home occasions
    - When the kids are away
- ACTION: Ensure that quality is reflected by core productattributes
  - Leverage the premium credentials of intrinsic productattributes
  - Focus on product detail and design superiority byleveraging extrinsic information cues
    - Use packaging and labels to convey detailed productinformation
    - Place heightened emphasis on the authenticity ofproduction
    - Prioritize communication methods that facilitatedetailed information
    - Maximize the halo effect of country of origincredentials
    - Develop packaging formats oozing quality andsophistication
    - Create an aspirational look to capture consumersimaginations
    - The general merchandizing cues should complement thepremium packaging
  - Make taste and freshness key communication andfunctional objectives
    - Communicate and market the products taste above allother attributes
    - Focus on freshness as a key brand value and communicateit accordingly
- Target hedonistic occasions and locations
  - Target event audiences
  - Target cinemas and other key entertainment venues
  - Target exclusive bars and foodservice venues
- Embrace word-of-mouth marketing
- Seek out new acquisition opportunities
CHAPTER 4 APPENDIX
- Definitions
- Research methodology
- References
  - Industry and news sources
  - Academic sources
- How to contact experts in your industry
- List of Tables
- Table 1: The number of main meal and snackingoccasions (billions) in Europe and the US, 2004-2009
- Table 2: The average number of daily and yearlynon-alcoholic drinking occasions (including tap water), 2004-2009
- Table 3: The value (total and per capita) and growthof snacking and non-alcoholic drinks markets, 2004-2009 (US$bn and ?bn)
- Table 4: Number of super-premium occasions by category(millions), 1999-2009
- Table 5: Value of super-premium occasions by category(?m and US$m), 2003-2008
- Table 6: Industry opinion concerning the mostimportant consumer group to target with higher quality snacks anddrinks products
- Table 7: Savory snacks, confectionery and ice creamconsumption by age group and country, 2004
- Table 8: Hot drinks and soft drinks consumption by agegroup and country, 2004
- Table 9: Consumer attitudes towards the importance offinding ways to escape the pressures of everyday life, 2004
- Table 10: Consumer and industry opinion on therelative importance of core eating motivation by consumption occasiontype, 2004
- Table 11: The number of European and US snack and hot& soft drink treating occasions occurring in response to stress,2003-2008
- Table 12: The number of European and US snack and hot& soft drink treating occasions occurring in response to boredom,2003-2008
- Table 13: The number of European and US snack,alcoholic beverage and hot & soft drink treating occasions occurringas a celebration/reward, 2003-2008
- Table 14: Consumer and industry perception of therelative importance of various extrinsic quality variables, 2005
- Table 15: A summary of consumer and industryperception of the relative importance of various credence qualityvariables, 2005
- Table 16: A summary of consumer and industryperception of the relative importance of various experiential qualityvariables, 2005
- Table 17: Examples of snacking and beverage productsthat tap into the notion of accessible premium
- Table 18: Examples of manufacturers aligning productswith key indulgence moments when consumers are more likely to trade up
- Table 19: Examples of products leveraging intrinsicquality attributes
- Table 20: Products which capitalize on the growingconsumer demand for authentic consumption experiences
- Table 21: Examples of emphasizing country of origin orcountry of association to help establish a price premium
- Table 22: Examples of packaging formats complementinga products premium positioning
- Table 23: Examples of merchandizing displays thatcomplement the premium image of a product offering
- Table 24: Definitions used in this report
- List of Figures
- Figure 1: Consumers quality perceptions can begrouped under four main factors
- Figure 2: Quality exists on different levels and canbe loosely categorized by price bands
- Figure 3: The growing importance of snacking generallyand the trend towards premiumization both highlight the growingopportunity to market higher quality snacks and beverage products
- Figure 4: Survey results highlight that trading upbehaviors are growing most strongly in snacking markets, although morehigh quality snacks and drinks are being consumed on impulse
- Figure 5: Numerous structural and situational factorsalso explain why consumers are embracing higher quality products
- Figure 6: Analysis of the benefit mega-trends providesa compelling understanding of consumer need and behavioral influences onhigh quality snacks and beverage consumption
- Figure 7: The value of national confectionery marketsis exceeding volume growth, thereby indicating a trend towards premium
- Figure 8: The value of national savory snack marketsis exceeding volume growth, thereby indicating a trend towards premium
- Figure 9: The value of national bakery and cerealmarkets is exceeding volume growth, thereby indicating a trend towardspremium
- Figure 10: The value of national dairy markets isexceeding volume growth, thereby indicating a trend towards premium
- Figure 11: The value of national hot drinks markets isexceeding volume growth, thereby indicating a trend towards premium
- Figure 12: The value of national soft drinks marketsis exceeding volume growth, thereby indicating a trend towards premium
- Figure 13: Low earners are almost as indulgent as highearners in terms of purchasing behavior
- Figure 14: 40% of European and US consumers reportedthat they consumed more comforting food and drinks in 2003-04
- Figure 15: Consumer and industry opinion shows thatindulgence and mood enhancing needs take on the most importance for highquality occasions
- Figure 16: Higher quality, more indulgent snacking andbeverage occasions are more associated with evening consumption
- Figure 17: More than 50% of consumers used their homesfor entertaining more frequently during 2003-2004
- Figure 18: Consumers are more likely to consume ahigher quality product across a number of specific locations andoccasions
- Figure 19: Consumers quality perceptions can begrouped under four main factors
- Figure 20: Taste, freshness, and packaging are threeof a number of attributes that consumers and industry executivesconsider to be more important for higher quality food and drinks
- Figure 21: Consumers are spending more timeconsidering the ingredients in food and drink offerings
- Figure 22: Consumers want products designed for theirspecific needs
- Figure 23: Summarizing the impact of health andwellness on indulgence habits
- Figure 24: Nearly half of European and US consumerssought more excitement and sensations in life in 2003-2004
- Figure 25: During 2003-2004 European and US consumersincreasingly tried new food and drink products
- Figure 26: Convenience is often deemed to underminequality and health credentials of product offerings
- Figure 27: Consumers perceive that the recommendationsof others are important and more likely to rely on such communicationwhen choosing products and services
- Figure 28: The opportunity in high quality snacks anddrinks can be exploited by recognizing, understanding and capitalizingupon these trends and insights
- Figure 29: Strategies for managing country-of-origineffects
- Figure 30: High quality snacks and drinks consumersare under-targeted via hedonistic locations and occasions

High Quality Snack & Beverage Consumers

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