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© 2014 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel

Sugar and sweeteners: the

consumer and industry’s response  FDIN May 2014

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Everyday at Mintel… 

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Today’s presentation 

What do consumers think about sugar and sweeteners?

What are the latest trends in sugar reduction?

How are products formulated and positioned, andwhat’s working?

Sugar & sweetener

s

Sugar reduction

Winners,

losers, theopportunit y

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UK consumers, types of products considered to be healthy, Sep 2013

Roughly 40% of consumers say low/no sugar is healthy, higher than the response for low calorie or generic “light/diet” labelling 

Consumers recognise low sugar and sugar-free as a healthy option… 

Source: GMI/Mintel

Base: 2,000 internet users aged 16+

15

17

19

21

26

28

35

41

42 45

0 5 10 15 20 25 30 35 40 45 50

Low in carbohydrates

Organic

Labelled 'natural' Labelled 'light' or 'diet'

Unprocessed

High fibre

Low calorie

Low sugar/sugar-free

Low fat/fat-free Part of my five-a-day

%

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Low sugar, sugar-free, considered to be healthy, Sep 2013

Women and consumers aged 45+ are far more likely to see low sugar and sugar-free as a healthy option

…Especially women and older consumers 

Source: GMI/Mintel

Base: 2,000 internet users aged 16+

41

34

48

37 34

36

43

50 52

0

10

20

30

40

50

60

All Male Female 16-24 25-34 35-44 45-54 55-64 65+

%

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UK consumer, attitudes towards diet foods, Sep 2013

Nearly 60% of consumers say they are wary of ingredients including sweeteners used in diet foods; half would like to see more natural

sweeteners

Consumers are sceptical of sweeteners… 

Source: GMI/Mintel

Base: 2,000 internet users aged 16+

50

58

36

31

14

11

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

I'd like to see more products using natural

sweeteners to replace sugar

I'm wary of the ingredients/sweeteners in

diet food products

Any agree Neither agree nor disagree Any disagree

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UK consumers, actions taken to manage weight, Sep 2013

After exercise, cutting back on fatty and sugary foods/drinks are the 2nd and 3rd most important actions taken to manage weight

Consumers cite sugar reduction as key weight management strategy

Source: GMI/Mintel

Base: 1,394 internet users aged 16+ who have tried to lose weight/maintain a healthy weight in the last 12 months

15

18

25 28

30

41

48

48

49

60

0 10 20 30 40 50 60 70

Skip meals

Eat more high protein food

Eat more low sugar/fat/cal products Cut back on carbohydrates

Cut back on alcohol

Cut back on desserts

Eat smaller portions

Cut back on sugary foods/drinks

Cut back on fatty foods

Exercise more

%

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UK new product introductions with low/no sugar claim, as % total introductions

The percentage of new products labelled sugar-free or low sugar has declined over time in key categories

Where do we see sugar-free and reduced sugar products?

Source: Mintel GNPD

0%

5%

10%

15%

20%

25%

30%

Soft Drinks Snack Bars/

Fruit Snacks

Candy & Gum Breakfast

Cereals

Yogurt & Flav

Milk

Apr09-Mar10

Apr10-Mar11

Apri11-Mar12

Apr12-Mar13 Apr13-Mar14

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• Stevia has made its mark in 2012-

13… 

• 41% of UK consumers said they were interested in buying low calorie CSDs made with natural sweeteners e.g. stevia

•

But acesulfame-k and sucralose lead and both have shown growth in use over time

• Use of aspartame,

What’s sweetening sugar-free and low sugar soft drinks?

Source: Mintel GNPD

Use of sweeteners in new soft drinks, as % total

0%

5%

10%

15%

20%

25%

30%

35%

40%

Apr11-Mar12

Apr12-Mar13

Apr13-Mar14

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UK retail value growth 2010-12

In the US market diet / low cal CSDs take 34% share and are forecast to grow by 2-3% per year over the next few years, following a period

of decline

Diet carbonated soft drinks are strong… 

After price and brand,low calorie content is the third most important factor influencing choice

of CSD (31% of respondents)

Source: Mintel

18%

4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Diet / low calorie CSDs Regular CSDs

Diet / low calorie

CSDs now accountfor 45% of the market by value

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UK retail value growth 2010-12

Juice drinks as a whole have benefited from a good value image and active NPD, but low sugar variants have failed to capitalise on the

opportunity

…While low sugar juice drinks have struggled lately 

32% of consumers limit their

consumption of juice drinks due to the

high sugar content

Source: Mintel

Low sugar juice drinks account for

 just 16% of the segment by value, down from 20% in

2010

-21%

6%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

Low sugar Standard

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47%

Key factors influencing purchase of juice and juice drinks

High fruit content is the key factor, after flavour and price/promotion are eliminated

39% Of consumers say “Counts towards the recommended ‘5-a-day’ of fruit/vegetables”  

29% Low sugar content is at best a 3rd factor

Source: GMI/Mintel

Base: 1,292 internet users aged 16+ who have bought fruit juice in the last three months

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Tropicana Trop50 Del Monte

Naturally Light

Trop50 remains the big story in sugar

reduction (and stevia), with £15m

in retail sales in2013.

Both are sweetened with stevia.

50% less sugar and calories (3.9g-4.4g sugars per 100ml, according to

variant)

50% less sugar, 50 calories per glass (4.5g

sugars per 100ml)

Low sugar juice drinks – winners and losers

Source: Mintel GNPD

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Coca-Cola Sprite with stevia, 30% less sugar

Vimto Panda Still Juice Drinks, “no added sugar, no

aspartame” 

Innocent Fruity Water for Kids, 50% pure fruit juice,

50% spring water

Brands reformulate and launch new products, with diverse messages around sugar (or lack of…) 

Diverse messages for low sugar positioning

Source: Mintel GNPD

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44%

Key factors influencing purchase of kid’s snacks 

Of consumers look for products that deliver one of five-a-day

34% Of consumers cite low sugar/salt as a key factor

32% Of consumers look for “natural” attributes 

Source: GMI/Mintel

Base: 937 internet users aged 23+ who have bought snacks for their child (aged 7-15)

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Stream Foods’ Fruit Bowl Sea Fruit

Shapes

Both products are labelled free from

artificial ingredients,

 “1 of you