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Growth and Innovation through Trends in Food

Growth and Innovation through Trends in Food 11
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DenzelCrowe,Egypt,Professional
Published Date:08-07-2017
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Growth and Innovation through Trends in Food Laurent Freixe EVP, Zone Americas Nestlé Investor Seminar 24 – 25 May, 2016 ShutterstockDisclaimer This presentation contains forward looking statements which reflect Management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. 2Zone Americas RIG OG TOP +80bps 2.7% 5.5% 5.0% 1.6% Q1 2016 FY 2015 FY 2015 Q1 2016 FY 2015 3“State of the Nation” Mexico & Chile: Acceleration in North Nestlé in AMS in 3 numbers Strong and resilient America 44% 50% 87% Brazil: Competitive in a Cuba a clear opportunity tough enviroment 4Ambition 2016 and beyond: Drive Market Share and OG through RIG Outlook 2016 We will continue to operate in a Growth to come more from low-growth environment Market Share Pricing will contribute less to OG RIG North America LATAM contribution critical 5Economic environment U.S. LATAM • Impacted by end of commodity • Engine of world’s economy super cycle 6External forces shaping the industry Big Food under pressure 3G Activist Investors Schulte Roth: Shareholder Activism Insight Report, 2014 The digital disruption Millennials Low cost of capital Internal analysis based on several U.S. based sources and ad hoc research, i.e., Nielsen, Euromonitor, Forrester, ZenithOptimedia, eMarketer, Facebook, Google Analytics 7Millennials: Driving Food Trends 86 million strong in the U.S • Larger than the Baby Boomer generation • Three times the size of Generation X Discovery Trust Sharing New NHW 80% want to know 58% would pay 88% interested in 58% often post more about where more for Natural & trying new foods online reviews their food is grown Organic Internal analysis based on several U.S. based sources and ad hoc research, i.e., Nielsen, Euromonitor, Forrester, ZenithOptimedia, eMarketer, Facebook, Google Analytics 8United States: The future of food is changing in 3 key areas 1 How we eat 2 How we shop How we engage 3 Internal analysis based on several U.S. based sources and ad hoc research, i.e., Nielsen, Euromonitor, Forrester, ZenithOptimedia, eMarketer, Facebook, Google Analytics 9Changing the way we eat Redefined NHW Food Globalized Time Constrained Snacking • Natural/organic • 52% of Millennials are multi- • 90% snack multiple times daily cultural • Positive nutrition Modern Cooking (‘Speed- • 60% find new and exotic Scratch’) • Diet in decline flavours appealing • 50% of dinners made in 30 min Internal analysis based on several U.S. based sources and ad hoc research, i.e., Nielsen, Euromonitor, Forrester, ZenithOptimedia, eMarketer, Facebook, Google Analytics 10Changing the way we shop ‘Pure’ growing More Smaller format Personalized and eCommerce and stores & shelf engagement Mainstreaming digital options sets Costco will surpass Whole E-commerce expected Foods as top seller of to rise by 38% in Organic Foods in the US, next 3 years for F&B. topping 4BN 11Changing the way we engage Time spent with media Plethora of choices Multiple devices expands and shifts Connected devices per person: Time spent per day 4.3 by 2017 TV: 4.2 hrs Digital: 5.5 hrs Multitasking across Everyone creates Always on screens content 80% uses a smartphone while 69% of internet U.S. adults watching TV users have a consume 15.5 blog and 49% hrs of media created an per day outside online video of work Internal analysis based on several U.S. based sources and ad hoc research, i.e., Nielsen, Euromonitor, Forrester, ZenithOptimedia, eMarketer, Facebook, Google Analytics 12Our strategy in the U.S. puts NHW and Innovation at the forefront 1 Delivering outstanding product quality To delight our Committing resources and focusing on 2 constant product improvement consumers & Executing robust innovation plans customers 3 with excellence Achieving recognition by Building consumer consumers & customers trust in our brands for outstanding innovation 13NHW at the core of Nestlé USA strategic agenda Delivering outstanding Communicating nutritional Leading the industry’s product quality & NHW competitive advantage NHW agenda 10% sodium reduction by 2017 100% PHO free by 35 end of 2015 calories 100% with portion guidance by 2016 0 artificials by 2016 % sales with 60/40+ win +150 bps every year 2015-2017 14I&R robust pipeline centered around consumer platforms Healthy Pure, simple, real, craft Healthier snacking Modern cooking contemporary meals 15Enhanced focus on high growth channels 16Building Digital leadership to best engage consumers 17Turning around Frozen Food in the U.S. 18Stouffer’s: Increasing relevance to consumers • Creating transparency • Modernising benefits • Redefining meal occasions • Segmenting strategically 19Lean Cuisine: In-tune with consumers values • Strong differentiation on shelf driving reappraisal • Clear 60/40 winners • New health benefits that connect with consumers • Compelling communication: pivot from ‘diet’ 20