NO GUTS NO GLORY: HOWMONDELĒZ INTERNATIONALIS AIMING TO MAINSTREAM

THE MICROBIOME

KATRINA BORISJUKMARKETING DIRECTOR, SNACKFUTURES INNOVATION

11 FEBRUARY, 2020

snacking is on the rise globally, and the top motivations for snacking are emotional

snacking motivations

Snacks need to be as enjoyable as they are functional and convenient!

Source: State of Snacking™: 2019 Global Consumer Snacking Trends Study, Mondelēz International & The Harris Poll

consumers definition of wellbeing is increasingly holistic, and gut health is a very important element

Good gut health → being at my best more often

Gut Health

Overall health

Daily Energy Immunity

WeightManagement

Physical AppearanceAging

Well

Stress

Mood

Source: HealthFocus® International, 2018 Mondelēz Snack Study

SNACKIFYINGGUT HEALTH

Evolving science

Evolving marketplace

Evolving consumer

understanding

(i.e. delivering gut health related benefits via delicious and

enjoyable snacks)

Gut Health is a growing topic on social media over the last two years

GLOBAL SOCIAL LISTENING SUGGESTS A RAPIDLY EVOLVING GUT HEALTH CONVERSATION

Gut Health: Science-inspired but Consumer-driven

Be respected by the science community,intrigue the influencers,

and be accessible to the adopters.

Source: Kantar Analytics, 2019

Vo

lum

e r

ela

tive

to

po

pu

lati

on

Time

Germany

France

USA

Australia

Consumer

News

Research

INFORMATION FLOWS FROM SCIENCE TO INFLUENCERS TO CONSUMERS

apple_cider_vinegar

oligofructose_FOS

carbohydrate

morning

restaurant

cultures

soluble_fiber

high.intensity.sugar

liquid

aloe

garlic

chicoryoligosaccharide

broccoli

kefir

calcium

coffee

vegetables

yogurt

sweet.potato

yeast

on.the.go

capsule

adaptogens

spinach

gingersauerkraut

kimchi

berries

insoluble_fiber

bone_broth

sugar

acidophilus

collagen

at_home

onion

honey

protein kale

turmeric

powder

essential_oils

lemon

miso

dark.chocolate

pepper

cauliflower

carrot

avocado

asparagus

lactobacillus

colonoscopy

salt

bifidobacteri

kombucha

lactic_acid

coconut.oil

amino_acids

vitamin.Capple

olive.oil

chia.seeds

processed

tempeh

fatty_acid

iron

herbs

resistant.starch

inulinbananas

cinnamon

bloated

obesity

mood

IBS

hormones

constipation

diabetes

taste

weight_loss

harmony

energy_levels

endocrine_system

stress

immune_system

convenience

organic

gym

wellness

cancer

metabolism

keto

clean_eating

inflammation

gluten

news

general_research

Key topics: Medical benefits

of gut health; issues

currently being debated in

research

Key topics: Impact of

probiotics on the gut;

benefits such as mental

wellbeing or weight loss

Key topics: Plant-based

diet as the key to achieving

a healthy gut as part of a

holistic healthy lifestyle

GUT HEALTH

INFLUENCERS

GUT HEALTH

ADOPTERS

SCIENCE COMMUNITY

Gut Health influencers are closer to the science community and help to bring topics into the mainstream for adopters

Source: Kantar Analytics, 2019

• A specific triggere.g., digestive pain or discomfort

• Moving into a different life stagee.g., pregnancy and parenthood

• Interest in holistic nutrition and wellness

CONSUMERS ENTER THE WORLD OF GUT HEALTH IN A NUMBER OF WAYS

“Well, as I got older my body started telling me that,

you know, you need to change - I thought I was

invincible when I was younger, with the way I was

eating, my diet, I had to change certain things.”

• Supplements are complex and fragmented

• Probiotics are well recognized but not well understood

• Many information sources, yet no-one is credibly leading the conversation

GUT HEALTH IS A BEWILDERING AREA FOR CONSUMERS TO NAVIGATE

“I can relate to conflict of information about what’s

right to do, not knowing who or what to trust. Not

wanting to take some pills but not knowing what the

alternatives are.”

• Influenced by the loudest voices

• Employing general wellbeing rituals and regimes…

e.g., avoidance diets

• …and specific gut health strategiese.g., taking probiotic supplements or following trends like kombucha

MANY ARE SELF-DIAGNOSING AND SELF-MANAGING THEIR GUT HEALTH

“I started to have a conflict with dairy. I have no issues

or sensitivities that are really documented or official. I

like dairy…It helps me with like controlling my hunger

and things like that, but I find that when I eliminate it,

it’s been helpful for me in reducing inflammation and it’s

noticeable.”

DIFFERENT CONSUMER TRIBES HAVE DIFFERENT NEEDS AND MOTIVATIONS AROUND GUT HEALTH

Snackifying Gut Health requires meeting each group’s unique emotional and functional needs, and often resolving tensions

A healthy microbiome is crucial to provide our children with the best start in life possible.

Taking probiotics pre

and post pregnancy to provides our children

with an optimal

microbiome and helps

our bodies recover.

We believe…

#AYURVEDIC

#HEALINGWITHFOOD

#GUTHEALTH

#NATURALHEALTH

#IQUITSUGAR

We talk about…

Looking after our family is our number one priority. Long hours and stretched budgets lead to a lot of stress! We are interested in health and nutrition, and always on

the lookout for ways to improve our family’s diets.

We believe in the healing power of food. We don’t like pills and supplements, and always look outside of conventional medicine when faced with an

illness. Health is holistic, and we believe in the need for a healthy mind and body.

I want affordable, delicious treats that the whole

family can enjoy and that won’t

harm little guts

81% of parents globally want to

pass their favorite childhood snacks

on to their children as a way

to connect and share rituals

I want convenient, minimally

processed real food snacks with digestive healing benefits so I can

enjoy life

77% of millennials use snacking

moments as an opportunity to slow down and

find moments of quieter, mindful

reflection

THE MARKETPLACE CONTINUES TO EVOLVE TOWARD MORE SCIENCE-INSPIRED OFFERINGS AS CONSUMERS BECOME MORE EDUCATED

More Mainstream Offerings

• No longer only the realm of yogurt…virtually every category is jumping on the probiotics bandwagon

More Disruptive, Tribe-oriented Offerings

• Prebiotics, fermented foods, and specific benefits are growing

Focus: Well-Being, Premium, Digital platforms

INVENT

Develop innovative businesses or brands

REINVENT VENTURE

Innovation and Venture Hub

Minority investments in start-up companies

Accelerate or reposition existing small brands

Snacks that are Good for People, Kind to the Planet, Deliciously Fun!

communicate tangible benefits, Linked to gut health science, with credible reasons-to-believe

Overall wellbeing

Energy

Mood

Stress

Digestion

Bloating

Constipation

Balanced Microbiome

Immunity

Weight Loss

Skin health

Inflammation

Detox

Increased absorption

Prebiotics Probiotics Adaptogens Anti-inflammatory Fermented Plant based

IN SNACKING, TASTE AND CONVENIENCE ARE KING

Portion control Portablity

Real food ingredientsTransparency /

no nasties

Delicious taste

UPLIFT FOOD INVESTMENT

SNACKIFYING GUT HEALTH -CONCLUSION

Evolving science

Evolving marketplace

Evolving consumer

understanding

• Understand and meet consumers’ emotional needs

• Deliver functional benefits that are tangible and credible

• Make it easy to understand

• Create deliciously fun, convenient snacks that consumers want to eat