products, proteins, and consumers: how whey is answering the call vikki nicholson sr. vice...
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Products, Proteins, and Consumers: How Whey is Answering the Call
Vikki NicholsonSr. Vice President, Global Marketing
U.S. Dairy Export Council
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• Global consumer trends
• Messaging insights
• Product innovations
The World is Living Longer & Aging ….
… And Getting Younger • Half of the global population is under age 30.• Leading regions are Middle East, Latin America, and Asia
Pacific with ½ to 2/3 under 30
Source: Euromonitor, 2013
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Rising Youth, Senior Populations
Youth Explosion
Rapidly Graying Societies
• Dairy deficit China and SE Asia hungry for infant/toddler formulas
• MENA’s youth market ripe for great tasting products high in protein to address growing obesity issue (e.g. dairy protein beverages)
• High content and quality protein F&B solutions needed to address dietary needs of aging populations– Japan highest share– China biggest number– Korea among fastest growing– U.S. significant senior population
Emerging middle class – Not just in BRICs
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Source: McKinsey Emerging middle class defined as yearly income of $13,500-$113,000 (PPP basis)
24 countries and 2 billion people spending $6.9 trillion annually
Protein Recognized as Important in Daily Diet, Especially in Asia
Source: Ipsos Marketing, 2010; 18,829 consumers across 24 countries
Folic Acid
Probiotics
Antioxidants
Omega 3s
Dietary fiber
Minerals
Protein
Vitamins
0% 10% 20% 30% 40%2%
2%
6%
8%
9%
15%
18%
38%
Multi-Market: Consumer Rankings of Importance in the Daily Diet
Mexico
Indonesia
U.S.
Brazil
Korea
Japan
India
China
0% 5% 10% 15% 20% 25% 30%16%
19%
21%
21%
23%
25%
26%
28%
Consumer Rankings of Protein Importance in Key Markets
U.S. Consumer Perceived Benefits
• Consumers associate protein with building and maintaining muscle and providing energy throughout the day, though not to the degree established in the previous research.
• Whey protein benefits regarding overall muscle composition remain the most believable.
Helps build and maintain muscle Helps prevent muscle loss during aging
Helps increase lean muscle mass Helps muscles recover more completely after exercise
• There is favorable association with whey protein and Helping to give you energy throughout the day, as well.
Source: USDEC Whey Protein Consumer Tracker. 2011
Perceived Benefits - Total 2011Whey
Protein Milk Protein Concentrate
Protein Found Naturally In Milk
Protein
Helps build & maintain muscle 52% 46% 53% 69%
Helps increase lean muscle mass 47% 42% 45% 58%
Helps give you energy throughout the day 46% 42% 46% 64%
Helps prevent muscle loss during aging 45% 38% 45% 54%
Helps muscles recover more completely after exercise 43% 37% 40% 57%
Helps maintain healthy bones & joints 43% 44% 58% 51%
Helps keep you from feeling hungry between meals 40% 32% 40% 49%
Helps you stay active as you get older 38% 35% 42% 50%
Helps prevent bone loss during aging 35% 39% 52% 36%
Helps you burn fat & lose weight 34% 30% 29% 41%
Helps to reduce cholesterol 31% 32% 29% 20%
Helps improve digestive health 28% 26% 30% 28%
Promotes fat loss around your waist 27% 24% 24% 26%
Helps improve brain function 27% 27% 31% 43%
Helps improve the responsiveness of immune system 25% 25% 28% 35%
Helps manage & possibly prevent onset of diabetes 19% 18% 22% 24%
Helps to reduce inflammation 17% 18% 19% 19%
Additional efforts are needed to communicate and reinforce the messages and benefits of whey protein
Perceived Benefits – Comparison of Different Terminologies
Source: USDEC Whey Protein Consumer Tracker. 2011
49%
43%
19%
14%
19%
13%
14% A
41% Av
n/a
n/a
Table 61; Q36 Below is a list of statements relating to whey proteins. Please rate each statement based on how much you agree or disagree with that statement.; Base = Total (449-684, 319-460, 312-461) Uppercase letters indicate significance at 95% Confidence Level, lowercase at 90% Confidence Level; columns tested ABV Top two box ratings on a 7 point scale, where 7 = “Agree completely” and 1 = “Disagree completely”* New in 2011
51%
49%
30%
18%
16%
15%
14%
11%
10%
49% b
Total 2011 (A) Total 2008 – 18-54 (B)
I like the fact whey protein comes from milk
Whey protein is one of the highest quality proteins
Adding whey protein to everyday foods is a great way to boost nutritional value*
Whey protein can be considered an allergen
It is worth paying more for whey protein
The word “whey" sounds like something I'd like to eat/appealing
I've seen advertising for whey protein
I look for whey protein in the foods I eat
Whey protein is less nutritious than other kinds of protein*
Whey protein is just for bodybuilders (or athletes)
50%
48%
49%
12% A
15% A
17% Ab
18% A
18% a
20% a
34% A
Total 2011 – 18-54 (V)
U.S. Consumer Attitudes Toward Whey Protein
Attitudes Toward Whey Protein (% Agree)% Indicated (Top two box on 7-1 Agree Scale)
45%
43%
11% 1%0%
From your perspective, how impor-tant is it to achieve a certain daily
protein intake?
extremely important
very important
somewhat important
slightly important
not at all important
U.S. Health Professionals’ Perceptions of Whey Protein
Egg a
lbum
in
Poultr
y
Fish/S
hellfi
sh
Lent
ils/B
eans
Mea
t
Whe
y pr
otein
Dairy:
Milk
, Che
ese,
Yog
urt
Soy p
rote
in
Casein
Oth
er0%
30%
60%
90%
83%
79%
78%
70%
64%
53%
51%
41% 18
%
12%
Which of the following do you consider to be a high-quality protein?
* Percentages reflect total sampleSource: DMI HP Whey Protein Awareness & Knowledge Tracker 2012
WORLDWIDE RETAIL SALES SNAPSHOT BY KEY CATEGORIES
2010 Sales Value(US$ mn)
2015F Sales Value
(US$ mn)
2005-2010Actual
CAGR (%)
2010-2015 Projected CAGR
(%)
Health & Wellness - Sports Nutrition
601,3614,980
772,0236,575
6.9%5.6%
5.1%5.7%
Baked Goods/Biscuits 393,324 454,813 5.1% 2.9%
Chocolate Confectionery 94,870 121,822 6.0% 5.1%
Ice Cream 73,820 90,768 5.4% 4.2%
Yogurt 65,153 83,928 7.9% 5.2%
Baby Formula 25,150 39,102 10.6% 9.2%
Condensed/Evap. Milk 6,460 7,677 5.8% 3.5%
Energy/Nutrition Bars 2,526 3,011 5.0% 3.6%
Source: Euromonitor
• Health and wellness largest category size; emerging market demand driving growth in key categories for dairy
Strong Global Growth in Categories Utilizing Dairy
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Converting Trends to Opportunities
Kellogg’s Special K - Special K Protein Plus series combines 10 grams of protein and up to 5 grams of fiber. Special K2O Protein Water Mix contains 5g protein and 5g fiber is an example of ‘portable’ protein
The protein effect = satiety > weight management
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Quaker Weight Control Instant Oatmeal contains7g WPI per serving.
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Mainstream Blurs the Line Between Snacking and Sports Energy
• Coca-Cola Co signed a deal with Fair Oaks Farms Brands to distribute the Core Power high-protein energy drinks in the United States.
• A cold filtration process maintains 20 percent whey and 80 percent casein ratio that is naturally found in milk.
• Available in 26g and 20g protein versions and in 11.5 ounce bottles.
United States: Core Power 26g Protein Chocolate. Chocolate flavored milk shake with natural high protein content, in a 340ml bottle.
Source: Innova Database:
Fusion of dairy with other categories
Austria: Lattella pineapple coconut is an exotic blend of fruity pineapple and exotic mild coconut water. Includes fermented sweet whey. Rich in vitamins and minerals with enzymes which stimulate digestion and regulate.
United States: Latte is a synonym for indulgence. Bolthouse whipped one up with caramel, pure Arabica coffee and a dash of sea salt. With 7g of protein plus 30% daily value of calcium per serving. Includes Low-fat milk, coffee, and whey protein concentrate.
Source: Innova Database:
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Protein Ready to Drink Shakes for All
Finland: QNT Delicious Protein Shake: Raspberry Flavor. Vanilla flavored protein shake in a 330ml tetra prisma. QNT Delicious Whey Protein Shakes have a fine texture with all the nutritional quality of a traditional protein milk-shake. Made with whey protein, they bring huge quantities of high biological value protein ideal for recovery after training. Gluten free. Zero fat. Aspartame free. With 30g protein!
USA: Ensure Muscle Health Drink: Homemade Vanilla. Individual bottles of muscle health drink with homemade vanilla flavor. Ensure Muscle Health has Revigor (source of HMB, an amino acid metabolite) and also is an excellent source of protein to help rebuild muscle and strength naturally lost over time. Targeted nutrition to help rebuild muscle and strength naturally lost over time
Source: Innova Database:
Where do we go from here?
• Enhanced marketing communications of proven nutritional benefits that resonate with consumer needs– Weight management– Healthy aging– Superior nutrition for infants/ toddlers
• Delivering functional performance to support new products to meet these growing consumer needs
• Production technology and regulatory support to meet global growing demand for protein
Dairy Management Inc.™ (DMI) is the domestic and international planning and management organization that builds demand for dairy products on behalf of America’s 50,000+ dairy producers. Includes oversight of National Dairy Council and the following:
The Innovation Center was established in 2008 under the leadership of America’s dairy farmers through DMI. It is the first of its kind to bring together milk producers, processors and manufacturers, to offer consumers the products they want — when and where they want them.
The Dairy Research Institute® is a 501(c)(3) non-profit organization created to strengthen the dairy industry’s access to and investment in the technical research required to drive innovation and demand for dairy products and ingredients globally. The Institute works with and through industry, academic, government and commercial partners to drive pre-competitive research in nutrition, products and sustainability.
The U.S. Dairy Export Council (USDEC) is a non-profit, independent membership organization that represents the global trade interests of U.S. dairy producers, proprietary processors and cooperatives, ingredient suppliers and export traders.
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