Transcription
Food at the Heart ofChobani Innovation
Food Comes FirstProduct Development ProcessIdeas(Hamdi, Business,R&D etc.)GoldStandardCreationConceptDevelopmentFood leads to LaunchMost important gate check:“How does the food compare with GoldStandard?”5
“Fast” FoodRapid Prototyping Speed of InnovationRapid prototyping – “Fail cheap and learn fast or Fail fast & learn cheap”– Ideas to Food: Killing bad ideas– Food Development: Iterative process– Food to Market: Internal & external alignment3-6 months: Idea to launchInnovation 2-way approach:– Long term pipeline development for complex projects– Quick delivery of solution as projects go live6
We Are First Consumers– We eat our yogurts and don’t sensory test.– Does the product have the WOW effect?– Is it good for my family? Is it good enoughfor my kids?– Consumer testing: Validating step.More downstream than upstream.Consumers First!7
We’re Focused On These Key TrendsTrends AmplifiedThe New FocusFunctionality & ImmunityTop of Mind Immunity Addition of positivesSubtraction of negativesNon-Dairywith Meaning Oat projected to overtake Almond in 2-3 yearsZero sugar plant-baseIndulgence toBreak Up Day Snacking and Indulgences throughout the dayMore time for morningsSustainable& Efficient Expansion of unique and sustainable packagingacross categories8
Breakthrough Innovation - Zero Sugar Yogurt First of its kind, never done before Quick implementation / turnaround Organizational collaboration andcommitment13
From Light to UltraThe Low Sugar Journey
From Light to UltraThe number of new low sugar brands is 2x greater than 5 years ago– The number of new low sugar brands is 2x greater than 5 years ago15
The Consumer16
The Alternative Sugar Shopper ProfilesConsumers are prioritizing sugar reduction and looking for products with alternative sweetenersArtificial AcceptorsArtificial Acceptors are looking for a greattasting, flavorful low sugar yogurt. While theywould like to believe they’d choose naturalsweeteners over artificial, their purchasingbehavior indicates a willingness to acceptartificial sweeteners in exchange for a tasty andfull-flavored experience. Sweetened with Sucralose, Fructose, or SugarAlcoholArtificial SweetenerMintel, Formulating Healthy Products for the Next Normal, July 2020Mintel, Consumer Approach to Nutrition and Diet, January 2020Numerator Shopper Insights, L52 W/E 10/31/20Source: Apollo Claims Conjoint (N 1,722 Low Sugar Yogurt Consumers)Conducted November 2020; Source: QualtricsNaturalNaturalists are looking for the perfect balancebetween low sugar and taste – achievednaturally. While open to a yogurt that tastes lesssweet, their preference is for a product that isnaturally sweetened. Sweetened with Cane Sugar, Agave. or HoneySuper NaturalSuper Naturalists are looking for low sugaryogurt and are willing to sacrifice sweetness toget there. While they aren’t averse to allsweeteners, natural is table stakes – they wouldnever consider trying a product sweetenedartificially. Sweetened with Stevia, Monk fruit, Allulose,or OligofructoseNatural Sweetener17
Consumers are seeking Low/No SugarConsumers are prioritizing sugar reduction and looking for products with alternative sweetenersThe AlternativeSugar Shopper 80%are limitingsugarmore/the sameas last yearLow/No Sugar is on trendin total store, as morepeople are trying to limittheir sugar intakeSource: Nielsen, Total US xAOC, L52 W/E 11.07.20Mintel, Formulating Healthy Products for the Next Normal, July 2020Mintel, Consumer Approach to Nutrition and Diet, January 2020Numerator Shopper Insights, L52 W/E 10/31/20Low Sugar is a growthdriver in yogurt, at a 9.3 share and 9.4% in dollars,and has brought incrementaldollars to the category25 – 54High HH IncomeEducatedHealth ConsciousKeto, Atkins, PaleoThe Alternative Sugar Shopperaligns with the Chobanishopper on key demographicsand is incremental toChobani’s business18
The Low Sugar SpectrumNew items range across the spectrumSuper Natural1 5Chobani CompleteOikos TZTwo Good1 0Fage TrublendsL&F CollagenOikos Pro5Chobani LSGEnhancedNutritionSiggi'sIcelandicProvisionsFage Bestself0-1 2-7-2Noosa HiLoYQYoplait Greek100Ratio KetoRatioProteinL&FTraditionalL&F GreekCrunch-5ActiviaLight-1 0Greek GodsLess Sugar38Simple NutritionYoplaitLightL&F Greek-1 5FPOSource: Nielsen AOD Total US xAOC L4 W/E 2/27/21*Ratio Keto has 1g of Sugar and 15g of Protein, currently the lowest sugar offering in the Categorycreating a priority to be placed in the lowest sugar quadrant over high proteinArtificial Acceptor19
Chobani Zero Sugar20
Sugar Level a Top Benefit to Yogurt ChoiceProtein and sugar levels are the most relevant nutritional benefits to favorite yogurt choiceSpecific Nutritional Benefits Relevant to Favorite Yogurt Choice69%StatedNutritionalBenefit wereImportant forFav ChoiceProtein level81%45%Sugar level76%33%Probiotics / 73%30%71%Low Fat Level27%Calcium27%77%Calories26%77%25%77%Vitamins and All natural FiberHigh Fat levelSweetener type77%20%65%14%10%9%Source: Chobani Yogurt Shopper Shelf Test, Partner: ConceptSauce (Sample -1,605 P3M YogurtShoppers, Fielding – 6/14-6/22/2021)Protein Level scored significantlyhigher than all other Top 3 selectedNutritional Attributes45%63%Relevant toChoiceTop 3NutritionalAttributeMen are significantly more likely to saythat Nutrition Benefits were a keyreason for their choice of Favoritecompared with women: 72% vs 67%Brand was mentioned frequently,suggesting that brand is a cue fornutritional benefit; the productgenerally being good for you and beingnutritious was also cited (suggests alack of explicit understanding of whyyogurt is good for you)21
Chobani with Zero Sugar ProcessChobani with Zero Sugar starts with ultra-filtered milk, uses natural fermentation to remove sugar, and then adds monk fruit and alluloseStep OneStep TwoStep ThreeWe start with ultrafiltered milk that ismade by following arecipe with very specificlevels of milkcomponents.Next, cutting edgenatural fermentationmethods convert thesugar into non-sugarcompounds.After the sugar has beenremoved, we add monkfruit, stevia and allulose– A natural, non-GMOsugar substitute with apleasantly sweet taste.22
Chobani with Zero SugarConsumers want staples with less sugar and fewer calories that still deliver on overall health and natural taste0g6011gTotal SugarCalories*Protein*Per 5.3 oz Serving0ArtificialSweeteners23
The Future is ZeroNew flavors are performing similar or above the initiallaunch flavors, showing the power of the brandChobani with Zero Sugar* has the potential tobe greater than Chobani FlipBase / MM ACV: L4 WeeksSales by Launch Week1Chobani ZeroChobani Flip234512345678910111213678Source: 1. Nielsen, Total US xAOC, L13 W/E 10/23/212. Nielsen xAOC 13wks 8.27.21; Flip data: IRI Total US MULO 13wks 3.24.133. Source: NielsenIQ, Total US xAOC, Latest 4 Wks - w/e 02/26/22*Not a Low Calorie Food24
Source: Apollo Claims Conjoint (N 1,722 Low Sugar Yogurt Consumers) Conducted November 2020; Source: Qualtrics 17 The Alternative Sugar Shopper Profiles Consumers are prioritizing sugar reduction and looking for products with alternative sweeteners Artificial Acceptors Natural Super Natural Super Naturalists are looking for low sugar
