Dannon  Foodservice  Selling  Story  

To  champion  healthier  food  culture  everywhere,    

in  all  occasions,    across  all  communities  in  partnership  with  our  

customers  

Who  We  Are  As  member  of  the  world’s  largest  dairy  products  provider,  Groupe  Danone,    

Dannon  is  committed  to  bringing  health  through  food  to  as  many  people  as  possible  

DANNON FOODSERVICE MISSON:

Danone  is  the  US  Yogurt  Leader  

#1 FROZEN YOGURT MANUFACTURER IN THE U.S.

 

34.3

24.7

15.3

Source: IRI MULO Latest 52 Weeks, w/e 4/5/2015.

24.7

15.3

#1 IN FRESH

YOGURT

Dannon  is  Committed  to  Improving  Heath  in  Our  Communities  

2  million  healthy  meals  donated  for  people  at  risk  of  hunger  through  over  160  community  organizations  and  nearly  200  Feeding  America  network  Food  Banks  across  the  US.  

Equivalent  of  more  than    

100  community  organizations  trained  about  how  eating  one  yogurt  every  day  is  a  simple  way  to  meet  the  USDA’s  Dietary  Guidelines’  recommended  three  servings  of  low  fat  or  non  fat  diary  products  daily.  

Sugar  &  Fat  Decrease  total  

Vitamin  D  

Increase  nutrients  to  encourage  in  the  diet  like  

Pledged  to  make  a  difference  in  how  America  eats.    By  mid-­‐2016:  

$3  Million  Invested  in  nutrition  education  and  research  

23g  or  less  Sugar  Per  6  oz  serving  in  100%  of  products  for  children  and  70%  of  products  overall  

75%  low-­‐fat  or  non-­‐fat  Products  in  portfolio  

Source:    The  Dannon  Company  Sustainable  Development  Report,  2013.  

Dannon’s  commitment  to  the  environment  

Danone  reduction  in  carbon  footprint  2007  to  2013.      37.5%  

Dannon’s  environmental  strategic  commitments  include  four  priorities:  

Climate  

Sustainable  Agriculture  

Packaging  

Water  

Cut  Dannon’s  carbon  footprint  and  help  keep  carbon  in  soil  and  forests  

Source  packaging  materials  from  sustainable  resources  and  turn  waste  into  a  resource  

Support  competitive  agriculture  that  creates  social  value,  respects  natural  ecosystems  and  generates  better  nutritional  balance  

Protect  and  help  restore  water  to  whom  and  where  it  matters  most  

8%  Packaging  carbon  footprint  decreased  8%  due  to  20%  decreased  Form-­‐Filled  Seal  cup  weight  

Danone  reduction  in  water  use  intensity  for  industrial  processes  (per  metric  ton  of  product)  45.9%  Goal  of  75%  of  Milk  supply  

sustainably  sourced  by  2017  75%  

Source:    The  Dannon  Company  Sustainable  Development  Report,  2013.  

The  American  Diet  is  in  Crisis  

53  Million  Americans  will  have  Diabetes  by  2025  

Have  BMIs  over  30  

1:    Behavioral  Risk  Surveillance  System,  CDC.    2:  National  Diabetes  Fact  Sheet  (released  1/26/2011).    3:  Dietary  Guidelines  Advisory  Committee.  2010.  Report  of  the  Dietary  Guidelines  Advisory  Committee  on  the  Dietary  Guidelines  for  Americans,  2010,  to  the  Secretary  of  Agriculture  and  the  Secretary  of  Health  and  Human  Services.  U.S.  Department  of  Agriculture,  Agricultural  Research  Service,  Washington,  DC.    

Most  Americans  don’t  get  enough  of  some  key  nutrients  

POTASSIUM  97%  FIBER  96%  VITAMIN  D  69%  CALCIUM  64%  

%  of  Americans  not  meeting  nutrient  recommendations:  

Obesity  has  more  than  doubled  in  the  last  30  years!  

OBESITY1   DIABETES2   NUTRIENTS  OF  CONCERN3  

of  recommended  daily  servings  of  dairy  

Only  52%  Americans  consume  

36%  of  Adults  

17%  of  Children  

Yogurt  is  a  Contributor  to  a  Healthy  Lifestyle  

Frequent  yogurt  consumption  as  part  of  a  healthy  diet  was  associated  with    LESS  WEIGHT  GAIN  OVER  TIME1  

Yogurt  is  one  of  the  ADA’s    Top  10  Diabetes  Superfoods4  

High-­‐quality  proteins  like  milk  proteins  help  promote  weight  maintenance  and  

blood  glucose  control.2  

1:  Mozaffarian  D,  Hao  T,  Rimm  EB,  Willett  WC,  Hu  FB.  Changes  in  diet  and  lifestyle  and  long-­‐term  weight  gain  in  women  and  men.  N  Engl  J  Med  2011;364:2392–404.    2:  Anderson  GH,  Luhovyy  B,  Akhavan  T,  Panahi  S.  Milk  proteins  in  the  regulation  of  body  weight,  satiety,  food  intake  and  glycemia.  Nestle  Nutr  Workshop  Ser  Pediatr  Program.  2011;67:147-­‐159.    3:  Wang  H,  Livingston  K,  Fox  C,  Meigs  J,  Paul  F,  Jacques  P.  Yogurt  consumption  is  associated  with  better  diet  quality  and  metabolic  profile  in  America  men  and  women.  Nutr  Res.  2012;33:18-­‐26.    4:  American  Diabetes  Association,  2015  (http://www.diabetes.org/food-­‐and-­‐fitness/food/what-­‐can-­‐i-­‐eat/making-­‐healthy-­‐food-­‐choices/diabetes-­‐superfoods.html)  

Yogurt  consumption  is  associated  with  heart  health  measures  including  healthy  levels  of  systolic  blood  pressure  within  the  normal  range3  

Yogurt  Is  a  Nutrient  Dense  Food  

Yogurt  contains  all  9  Essential  Amino  Acids  your  body  

needs

of  Americans  believe  that  specific  foods  and  beverages  have  benefits  that  can  maintain  overall  health  and  wellness.1  88%  

of  the  nutrients  Americans  don’t  get  enough  of2  

3  of  4  Yogurt  contains  

1:  IFIC  Food  &  Health  Survey,  2011.    2:  Dietary  Guidelines  Advisory  Committee.  2010.  Report  of  the  Dietary  Guidelines  Advisory  Committee  on  the  Dietary  Guidelines  for  Americans,  2010,  to  the  Secretary  of  Agriculture  and  the  Secretary  of  Health  and  Human  Services.  U.S.  Department  of  Agriculture,  Agricultural  Research  Service,  Washington,  DC.  3:    U.S.  Department  of  Agriculture  and  U.S.  Department  of  Health  and  Human  Services.  Dietary  Guidelines  for  Americans,  2010.  7th  Edition,  Washington,  DC:  U.S.  Government  Printing  Office,  2010.  

One  (8  oz)  serving  of  yogurt  every  day  can  help  increase  average  dairy  

consumption  by  30%

Consumers  Understand  the  Benefits  of  Yogurt  

Consumers  Believe  Yogurt  is  Good  for  Them2  

3:  Frozen  Yogurt  A&U  2014.  

think  it’s  NUTRITIOUS  95%  think  it’s  HEALTHY  97%  

think  it’s  a  GOOD  SOURCE  OF  CALCIUM  

91%  

58%   of  consumers  agree  that  it  is  important  to    eat  healthy  and  pay  attention  to  nutrition1  

Consumers  Agree  Frozen  Yogurt  is  a  Healthier  Alternative  to  Ice  Cream  

Healthier  than  other  desserts    Is  nutritious    Is  low  in  fat    

Consumers  believe  these  statements  better  describe  Frozen  Yogurt  than  Ice  Cream:  

Source:  Frozen  Yogurt  A&U  2014.  

Contains  live  &  active  cultures    

Growth  in  Yogurt  Category  Will  Continue  Feb  20

14Mar  201

4Ap

r  2014

May  201

4Jun  20

14Jul  201

4Au

g  20

14Sep  20

14Oct  2014

Nov  201

4De

c  20

14Jan  20

15Category  Sales  Growing  12  

Months  in  a  Row1  

1:    NPD  SupplyTrack  total  yogurt  category  vs  YAG,  Jan  2015.      2:  Mintel,  2013.    3:  Foodservice  Yogurt  A&U,  2014.    4:  Mintel  Healthy  Snacking,  2012.    5:    The  NPD  Group’s  SnackTrack®  database  2014,  annual  eatings  2018  vs  2013.  

Yogurt  menu  mentions  are  +80%  in  past  5  years2  

+80%  

Foodservice  Yogurt  Consumption  is  Growing  

Because  Yogurt  isn’t  Available  AFH,  Consumers  Still  Bring  it  From  Home3  

Consumers  Demand  Healthy  Snacking  Alternatives  

why  consumers  don’t  buy  yogurt  AFH  is  due  to  lack  of  availability!  

rate  health  as  a  key  snacking  driver4  65%  

snack  multiple  times  a  day  90%  

#1  reason  Share  of  Yogurt  Eating  Occasions  

Projected  Change  to  Snack  Types  by  

2018  

Better  For  You  

Savory   Sweet  

BFY  Snacks  are  expected  to  Grow  faster  than  other  snacks  

Opportunity  Remains  for  Foodservice  to  Gain  Its  Fair  Share  of  Greek  Yogurt  

1:    IRI  MULO,  Total  Greek  =  Core  +  Light  +  PAH  Greek  brands.  IRI  TTLUS  Grocery,  March  2015.        2.  NPD  SupplyTrack,  12  months    through  Jan  2015.    3:  Based  on  suggested  retail  price  for  Regular  6oz  yogurt  at  $1.19/6oz  with  $0.62  unit  cost  vs  Greek  5.3oz  at  $1.99-­‐$2.49  with  unit  costs  of  $0.93,    Dannon  Yogurt  A&U  2014.  

Move  from  Non-­‐Greek  to  Greek  yogurt  can  result  in:3  

+80%   +90%  Sales  $   Profits  

Consumers  recognize  the  value  of  Greek  yogurt  and  are  willing  to  pay  more!  

In  Retail,  Greek  yogurt  has  grown  to  ½  of  the  market  in  the  past  few  years…1  

2011   2015  

But  in  Foodservice,  Greek  yogurt  share  is  still  just  19%,  despite  doubling  in  the  past  2  years!2  

vs.  

Core Greek Organic Kids Indulgent Proactive Health Light Core

specific  care  

premium  health  

natural/    few  negatives   kids  health  weight  

management  everyday  health  

permissible  treat  

One  Yogurt  Solution  Does  Not  Meet  All  Consumer  Needs  

Operators  need  to  offer  variety  across  yogurt  categories  to  appeal  to  all  consumer  needs  

SEGMEN

T  CO

NSU

MER

 NEED  

BRAN

DS  

PRODU

CTS  

Variety  is  Required  to  Meet  Needs  of  Different  Operations  

Retail  Foodservice/  C-­‐Store  

Consumer  pull  Strong  brands  Marketing  support  O

PERA

TOR  

NEEDS

 

Catering    

Strong  brands  Healthy  options  Value  pricing  

Back-­‐of-­‐House  

Versatility  Ease  of  use  Healthy  alternatives  to  some  other  ingredients  

Add  segment  (K-­‐12,  C&U,  etc.)  as  applicable  

           

OTHER  SEGMENT  

Dannon  is  Investing  in  Breakthrough  Innovation  to  Grow  the  Category  

Dannon®  Oikos®  TRIPLE  ZERO  Nonfat  Yogurt    Yogurt  with  15g  Protein  per  5.3  oz,  NO  fat,  NO  Added  Sugars  and  NO  Artificial  Sweeteners  

Official  Yogurt  of  the  NFL  

Bringing  Men  Into  the  Category   Appealing  to  Millennials  

Making  Yogurt  Portable  

YoCrunch®  and  Dannon®  YoCream®    Offering  innovative  and  fun  yogurts  that  are  more  popular  with  millennials  than  other  yogurts2,3  

Would  drink  while  on-­‐the-­‐go4  

Agree  that  it’s  healthy4  

87%    73%    

Light  &  Fit®  Protein  Shakes    Yogurt  in  a  portable  format  for  consumers  who  want  more  healthy  options  on-­‐the-­‐go  

1:    GC  Metrics  Custom  Study,  2014.    2:  IRI  IU  Data,  First  Half  2014;  YoCrunch  53%  age  12-­‐34  vs.  24%  for  total  category.  3:  Foodservice  Frozen  Yogurt  A&U,  2014.    4:  Target  Research  Light  &  Fit  PS  CLT  May  2014.  

               

80%     of  yogurt  consumers  want  more  protein!  

REACHING  NEW  CONSUMERS  

INCREASING  OCCASIONS  

Strong  Consumer  Brands  

Dannon  brings  you  a  group  of  powerhouse  brands  that  consumers  demand  

1.    Brand  Health  Metrics,  total  adults,  2014.    2.  Facebook.com/oikos,  Facebook.com/activia.usa,  Facebook.com/lightandfit,  April  2015.  

>  550,000  Facebook  fans2  

64%  Brand  Awareness1  

78%  Brand  Awareness1  

>  4.6  Million    Facebook  fans2  

66%  Brand  Awareness1  

>  840,000  Facebook  fans2  

Dannon  Offers  Comprehensive  Operator  Solutions  to  Grow  Traffic  and  Sales  

New  Menuing  Ideas  

Parfait  Bar  Concepts       Bundle-­‐Ups  

Capture  incremental  consumption  Increase  check  average  

Comprehensive  Selling  Support  

Traffic-­‐Driving  Events  

Sampling  Events  

Merchandising  Solutions  

National  Promotions  

-­‐  Coolers  -­‐  Counter  Cards  -­‐  Wobblers    -­‐  Branded  stickers  -­‐  Clings  -­‐  And  More!  

Excite  new  traffic  to  the  yogurt  category  

Drive  impulse  sales  Increase  visibility  

Product  assortment  recommendations  Segment  selling  recommendations  Complete  nutritional  information  

Culinary  Support  to  Grow  Your  Business    

Culinary  Training  Video  Recipe  Substitution  Cheat  Sheet   Complete  Recipe  Book  

Engaging  with  Chefs  to  Drive  Sales  and  Improve  Nutrition  Across  the  Menu    

Dannon  culinary  expertise  helps  grow  yogurt  beyond  breakfast  &  the  cup  

– Ready  made  Parfaits    – Entrees,  salads,  sauces  – Sweet  &  savory  – Global  flavors  – Lunch,  Dinner  &  Snacking  

Dannon  provides  operator  resources  to  ensure  culinary  success