Transcript Dairy Beverage Reinvented_Millennials Student Competition

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Dairy Beverage Reinvented
Reinventing Milk to Increase its Relevance To
Millennial Consumers
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Dairy Beverage Reinvented:
Understanding the Millennial
• Goal: Grow milk/dairy consumption among the Millennial
generation – influencers as individuals, parents and future
leaders
• Research Objective: Understand current beverage habits
and mindset of Millennials in order to develop new
compelling beverage concepts that utilize milk and dairy
ingredients
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Why Reinvent Milk?
Per Capita Consumption* of Fluid Milk - Gallons
Slow, continuous
shift downward in
per capita fluid
milk consumption
35
30
25
20
15
10
5
0
Source: USDA ERS
• Flat fluid milk sales
• Declining per capita consumption
• Milk falls short between meals
• Milk under-indexes on key needs
• Aggressive beverage competition
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Why Millennials?
Large Dip in Milk Consumption as Individuals Transition from Youth to Young Adulthood
# Occasions per Week
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2013 Fluid Milk Per Capita Drinking Occasions by Age
12
9
6
3
0
0 to 5
6 to 10 11 to 13 14 to 18 19 to 24 25 to 34 35 to 49 50 to 64
65+
Source: Kantar Beverage Panel
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Millennials less likely to drink milk
o Large dip in milk consumption as individuals
transition from youth to young adulthood (“age
effect”)
o Erosion in milk consumption vs previous
generations (“cohort effect”)
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•
Millennials more adventurous in food and
beverage choices; many new products target
this age group
Definition of healthful beverages shifting
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Who are Millennials?
• No clear definition, most sources place in early adulthood
MILLENNIALS
Age 18-33
22% of Population
70 Million People
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Racially/ethnically diverse
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21% Hispanic; 15% Black; 6% Asian; 3% 2+ Races
1 in 3 immigrants is age 20-34
Broad mix of life stages
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26% 18-32 year olds married
• Compared to 48% Boomers at same age and 65%
of Silent Generation
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What Defines Millennials?
• Grew up during economic prosperity
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Fiercely independent
• Yet many entered work force during
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Feel powerful
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More liberal in views than
older generations
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Information hungry
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Receptive to new ideas –
often seek peer feedback
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Don’t have much to spend
but will pay more for
products
recession
• Many cannot get a job in their chosen field
• Don’t expect to stay as long in a given job as
previous generations
• Rapid advance of technology during their
life
• Social media is an everyday part of life
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Food and Beverage Habits Embraced by
Millennials
Food is form of self expression
Food as source of entertainment
Value authenticity
Interested in how food is grown/produced
Less is more philosophy – clean labels, readable ingredients
More natural, organic foods
Appreciate reusable, recyclable, resealable
Embrace flavor variety, multicultural foods
Seek healthy options
Blurring of meals and snacks
Less brand loyal; willing to seek new outlets for food
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The Millennial Weekly Beverage Diary
% Who Drink Weekly
(2013)
Beverage
Share of Weekly
Beverage Occasions
47%
Dairy Milk
7%
68%
Carbonated Soft Drinks
13%
48%
Bottled Water
12%
46%
Coffee
9%
44%
Tea
7%
39%
Fruit Juice
5%
26%
Fruit Drink
3%
20%
Drink Mixes
2%
15%
Sports Drinks
1.2%
13%
Smoothies
1%
10%
Energy Drinks
0.8%
7%
Nutritionals
0.8%
79%
Tap Water
36%
Source: Kantar US Panel – Millennials approximated by age 19-34; self-reported beverage only consumption that is nationally projectable
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Products Gaining and Losing in Penetration and
Occasions Among Millennials
Beverages growing in penetration and share reflect food values embraced
WHOLE
Milk
Non-Dairy
Smoothies
Total Coffee
& Specialty
Fruit/Vegetable Tap
Blends
Water
Drink
Mixes
Protein
Drinks
A number of Millennials exiting the Dairy Milk, CSDS and Fruit Juice Categories
DAIRY
Milk
Carbonated Soft
Drinks
Fruit Juice
Primarily Orange Juice
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What Drives Millennial Beverage Consumption
Top Beverage Needs
Thirst
Go with my food
Like taste
Replenish fluids
Goes well with food/snack
Wake up
Treat
Cool off
Healthier choice
Fun
Relax
Over-index on these Needs
Mix with alcohol
New/different
Was sick/ill
Purifying/clean
Before/during/after exercise
Quick energy
Provide lasting energy
Needs Gaining Most Share
Help me relax
Cool off
Replenish fluids
Quick energy
Treat
Be sociable
Fun
Before/during/ after
exercise
Warm up
Green highlight indicates these needs gaining more than population overall
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8 Innovation Platforms that Address Millennial
Beverage Needs
Health and Wellness Need States:
Balanced and Real
Burning Problem:
“Sometimes it’s hard to get all the
nutrients I need in a busy day. I want a
tasty beverage that packs it all in. I want
balanced nutrition from fruits, veggies,
dairy, even nuts and seeds. I can’t always
eat right, but I know I’m covered when I
drink right.”
Frame of reference: Smoothies
Recovery/Restore
Burning Problem:
“Sometimes I feel run down or depleted after
physical exertion and need a beverage to
reinvigorate my body and help build me
back up. I’m not a professional bodybuilder,
so I don’t want anything too macho or
extreme. Give me a beverage that provides
all the nutritional benefits my body needs so
I can recover quickly and feel great.”
Frame of reference: Protein drinks
Weight Management/ Curb
Hunger
Burning Problem:
“When I start feeling a little hungry, my
willpower goes out the window and I end
up snacking…and then feel guilty. I wish
there was a simple, nutrient-rich beverage
to tide me over and help me avoid eating
things I may regret later. Give me
something to curb my cravings and leave
me feeling satisfied.”
Frame of reference: Food snacks
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8 Innovation Platforms that Address Millennial Beverage
Needs
Tasty Treat/Fun Need State:
• Tasty Pick-Me-Up
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Burning Problem:
“Sometimes the real craving is a break from my routine…a
special ‘me’ time to sit back and get away from it all. Give
me a beverage that is oh, so indulgent and fun to drink,
that transports me to my happy place and gives me a multisensory experience – all without leaving my seat.”
Burning Problem:
“When I’m thirsty, I want an ice cold beverage. Soft drinks, iced
tea and juice drinks are refreshing thirst quenchers, but they
can be full of sugar and empty calories. Give me a fun, exciting
beverage that cools me down, but doesn’t weigh me down with
unnecessary ingredients or calories.”
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Frame of reference: Espresso drinks (e.g., lattes,
macchiato, coffee concoctions)
Frame of reference: Carbonated soft drinks and iced teas
Refresh
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8 Innovation Platforms that Address Millennial
Beverage Needs
Energy Need State:
Long-Lasting/Sustained
Energy
Burning Problem:
“Sometimes the day is like a race to the
finish line. When I start feeling sluggish,
I don’t know if I’ll ever make it through. I
need a beverage that gives me an
energy boost to sustain me through my
day. Current energy drinks are too
intense for me. I want a nutritionally
balanced drink that provides long-lasting
energy, through real ingredients, that
gets me to the finish line.”
Frame of reference: Energy drinks,
protein-rich foods and beverages
Thirst/Hydration Need State:
Multi-Purpose Super Waters
Burning Problem:
Relax Need State:
Sweet Dreams Milk
Burning Problem:
“Everyday my body needs hydrating
and water does the job of quenching
my thirst. But, I’m always looking for
beverages that multi-task, like a water
that hydrates AND replenishes my
body, by delivering essential nutrients like vitamins, electrolytes, and protein. I
want a refreshing beverage that can do
it all.”
“At the end of the day all I want is to
relax and unwind. After all the hustle
and bustle of the day, it’s time to slow
things down when I get home. Give me
a beverage made with simple, natural
ingredients that prepares me for a good
night’s rest.”
Frame of reference: Water and sports
drinks
Frame of reference: Warm drink
choices (e.g., tea and coffee); milk
and cookies
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MILLENNIALS will be a powerful force
in transforming the food industry
Appeal to their sense of adventure