Biscuits, Cookies & Crackers

Source: Mintel GNPD, Q3 and Q4 2009

Executive Summary
Performance
More Sweet Biscuits/Cookies (79% of launches) than Savoury Biscuits/Cookies (21%).

Natural & wholesome

A natural claim trend (more than 1/5 of products). Growth of no additives/preservatives. Wholegrain was another important trend in this market.

Healthier biscuits
Low transfat lines were active, but other low-in claims remained limited (focus on indulgence rather than health).

Targeting diets & demographics

An attention for consumers with food allergies. Character merchandising for children's products with fun shapes and games.

Source: Mintel GNPD, Q3 and Q4 2009

Executive Summary
Most Interesting Products Added value
The premium sector remains stable with biscuits seen as an affordable indulgence for many.

Flavours
Chocolate as the top flavour in Sweet Biscuits/Cookies. Flavours in Savoury Biscuits/Crackers were more varied.

Access Business Group Chocolate ID 1211232 Kraft Foods Cheddar cheese ID 1141149

Packaging
Growth of convenience and "on-the-go" packaging (like portable snacks).

United Kanboo Salted ID 1146449

3

Lotte Chocolate ID 1205258

Source: Mintel GNPD, Q3 and Q4 2009

Competitive Context
Sweet Biscuits/Cookies remains the largest Bakery sub-category (38% share of launches), and savoury Biscuits/Crackers remains the least active (10%).

Competition from different sectors

Sweet biscuits Savoury biscuits Home baking

Manufacturers of Sweet Biscuits/Cookies face competition from healthier snack options, and also from a huge array of confectionery and dessert items.

Savoury Biscuits/Crackers compete with other numerous savoury snacks, the consumer have a large choice.

Bad economic situation: a lot of people opt to cook their cookies rather than buy ready made ones.

Source: Mintel GNPD, Q3 and Q4 2009

Competitive Context: Sub-category comparison

Source: Mintel GNPD, Q3 and Q4 2009

Regional Analysis: Summary

PERFORMANCE
Asia Pacific
37% share of new products, the most active region.

TRENDS
Health and naturalness were leading trends across regions. Premium activity especially important in Asia Pacific. Organic and wholegrain formulations popular in Europe. Traditional (to the region) flavours such as dulce de leche and guava noted in Latin America.

Europe
A slight increase in activity, 32% of total launches.

Latin America
The third most active area (16%).

North America
A 3% increase of share of launches, 12% of total products.

Middle East & Africa

The least active region (5%)

Source: Mintel GNPD, Q3 and Q4 2009

Regional Analysis: Summary

Source: Mintel GNPD, Q3 and Q4 2009

Regional Analysis: Asia Pacific

Top 3 countries for the new products in this region: China (15% of launches in this region), India (14%), and Thailand (13%). Premium as the top claim (almost of launches in this region). Health claims were also active (nearly 2/3 of all launches with added calcium, and over 40% of biscuits with functional health benefits).

Tohato Cream cheese, Cheddar, Gorgonzola, Other cheese, Black pepper, White pepper, Pink pepper & Green pepper ID 1219399

Nissin Cisco Butter ID 1206879

Ezaki Glico Strawberry ID 1169423

Source: Mintel GNPD, Q3 and Q4 2009

Regional Analysis: Europe

Top regions for the new products: Germany (16% of launches in this region), France (13%), UK (11%). Top claims here focused on naturalness and purity, namely: no additives/preservatives, organic and wholegrain. Moreover, almost 3/4 (72%) of all organic lines and 45% of all wholegrain lines were found in this region.

Gteborgs Kex Rye grain, Sea salt, Olive ID 1219560

Golden Walnut Specialty Foods Milk chocolate ID 1179012

Source: Mintel GNPD, Q3 and Q4 2009

Regional Analysis: Latin America

Brazil led the way (31% of launches in this region) in Latin America, followed by Argentina and Mexico, (each 22%). The leading claims are low/no/reduced transfat (26% of launches in the region); wholegrain (11%); children (10%); and eco-friendly packaging (10%). Health claims rather than natural sourcing were more active (nearly 1/2 of all low/no/reduced sodium lines launched here compared to only a fraction of organic biscuits).

Parati White chocolate ID 1145155

10

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Naturalness stronger in savoury

No additives/preservatives & all natural
No additives/preservatives was the leading claim in this category: 12% of total launches (compared to 9% in the previous period). The all natural claim was more niche (3%) Both no additives/preservatives and all natural were more active in the Savoury Biscuits/Crackers segment (18% and 7% respectively).

No additives/preservatives

Elsa's Story Sea salt ID 1226093

Lu ID 1183022

Tucker's Natural Chocolate ID 1174308

All natural

11

Grupo Gamesa Apple, Cinnamon & Oatmeal ID 1183737

Castleton Crackers Maple ID 1144956

Abdullah Al-Othaim Date ID 1237109

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: No additives/preservatives

12

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Naturalness stronger in savoury

Organic
Organic & wholegrain
Organic and wholegrain were most active in the savoury segment with 17% of Savoury Biscuits/Crackers containing wholegrain (only 5% for Sweet Biscuits/Cookies) and 10% being organic (4% for Sweet Biscuits).

Shropshire Fine Herbs Rosemary ID 1181937

Alnatura ID 1185406

MGC Herb ID 1149312

Wholegrain was very/somewhat important when choosing crackers for 53% of American consumers who eat them, while organic sourcing was important for 22%

Wholegrain

Mars ID 1197012

Burger Kncke ID 1164463

Gilchesters Organics ID 1180247

13

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Low-in claims focus on transfat

Low in transfat, fat & cholesterol
Low/no/reduced transfat is a leading claim in this market (11% share of products, also active in sweet and savoury segments). Low fat and low cholesterol claims are much more niche, (3%), but more active in the savoury segment (8% of products as low in fat, 7% as low in cholesterol).

Low transfat & fat

Kraft Foods Cheddar cheese ID 1228667

Biscuits Delacre Cheese & Herb ID 1220779

Petit Sable Indstria de Alimentos Ricotta cheese ID 1144150

Low cholesterol

Sakata Rice Snacks Australia Honey & Soy ID 1193541

Ines Rosales ID 1132750

Perfect Food Vanilla ID 1217769

14

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Low/no/reduced transfat

15

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Low-in claims focus on transfat

Low sugar
Low sugar/calories
4% of launches for low/no/reduced sugar, 1% for low/no/reduced calorie.

YLF Manufacturing ID 1204429

Schneekoppe Hazelnut ID 1229056

Sorbee International Chocolate & Fudge ID 1155932

Low calories

Lance Roasted, Cheese & Peanut butter ID 1210477

Groher Dulce de Leche & Chocolate ID 1166123

Casa Santiveri ID 1121334

16 Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Biscuits for different diets & demographics

Low/no/reduced allergen
6% of low/no/reduced allergen products, nearly 3/4 (73%) of gluten-free products.

Low/no/reduced allergen

Weight control & biscuits for women

Less than 1% of products were positioned as weight control biscuits, often aimed at women who are trying to lose weight.
Enjoy Life Natural Brands Dark chocolate ID 1128985 Divvies Raisin ID 1142230 Migros ID 1195122

Weight control

Slim Secrets Chocolate ID 1152857

17

Hollywood Miracle Products Kobber Alimentos Lemon Granola ID 1149908 ID 1225562

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Low/no/reduced allergen

18

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Biscuits for different diets & demographics

For children
Biscuits for children
5% of launches were aimed at children (including 94% of Sweet Biscuits/Cookies) Importance of character merchandising (12% of children's products featuring popular characters).

Vitagermine ID 1217176

Ezaki Glico ID 1199581

Meiji Seika Kaisha ID 1162611

Kellogg ID 1142598

Hot Shots ID 1145005

19 Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Premium & added value launches

Focus on quality & sourcing for premium
Importance of quality ingredients for premium products. Shares of premium products in the last half of 2009: 5% of Sweet Biscuits/Cookies, 3% of Savoury Biscuits/Crackers

Premium

Seasonal & limited editions add value

Seasonal claim as the strongest (with only 4%) in the second half of the year (especially with Halloween and Christmas) Limited editions represent just 1% share of total launches.

Coles Supermarkets Dark chocolate & Milk chocolate ID 1222107

Tatawa Industries Butter & Cappuccino ID 1196828

Sfizio SRL Pistachio ID 1129781

Seasonal & limited edition

Pandurata Alimentos Chocolate ID 1219944

20

Popcorn Factory Butter ID 1215496

Josef Manner Hazelnut ID 1180996

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Premium

21

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Ethical concerns on the rise

Eco-friendliness more important
Environmentally-friendly packaging was the most prominent ethical trend (7% of launches vs 2% in Q1/Q2 2008). Environmentally-friendly products were more niche but have also seen growth (1% of products and virtually non-existent prior to 2009).
Dancing Deer Baking White chocolate, Dark chocolate & Chocolate ID 1184843 Kraft Foods ID 1174058 Circle K Sunkus Chestnut ID 1190343

Eco-friendly packaging

Eco-friendly products

22

Partners Onion ID 1197159

Eco-Heaven ID 1188223

Duchy Originals ID 1151744

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Environmentally-friendly packaging

23

Source: Mintel GNPD, Q3 and Q4 2009

Latest Trends: Ethical concerns on the rise

Ethical - Human
Fair Trade & supporting charities
Benefiting Third World producers or charities were niche (1% of total launches).

Cultivar Brazil Red bean ID 1161491

Hoppe Food Coffee ID 1154897

Alce Nero Cocoa ID 1149047

Ethical - Charity

Pepperidge Farm Chocolate ID 1212779

Saiwa Dark chocolate ID 1195479

Morinaga Company Cocoa ID 1146224

24 Source: Mintel GNPD, Q3 and Q4 2009

Flavour/Ingredient Trends: Fortified & functional biscuits

Vitamin/mineral fortified
Fortified biscuits
3% of products were fortified with vitamins/minerals, with 43% of these enriched with calcium.
Lu Chocolate ID 1202592 Kraft Foods Chocolate ID 1155773 Jessica Food Products Strawberry ID 1180082

Functional health benefits

Functional biscuits
2% of functional health benefits products, the most important relating to digestive health.

Hermanos Borja Prez ID 1131051

Kashi ID 1179133

YLF Manufacturing Pumpkin Seed ID 1215050

25 Source: Mintel GNPD, Q3 and Q4 2009

Flavour/Ingredient Trends: Vitamin/mineral fortified

26

Source: Mintel GNPD, Q3 and Q4 2009

Flavour/Ingredient Trends: Chocolate is top flavour

Alcohol flavours
Top flavours
Chocolate is the dominant flavour in Sweet Biscuits/Cookies (40% of launches) In Savoury Biscuits/Crackers, spice, cheese and vegetable-based flavours led the way (16%, 15% and 15% respectively)
Mr Ito Rum & Raisin ID 1156730

Alternative flavours
Simply Indulgent Gourmet Port & Cheddar ID 1134633 Vicenzi Biscotti Amaretto ID 1214325

More grown-up flavours included the use of alcoholic such as rum, amaretto and port. Unusual flavours included key lime oil; floral or botanical ingredients.

Unusual flavours

Salem Baking Lime ID 1141896

Kelsen Bisca Lemon & Aloe vera ID 1163841

Dongwang Food Rose & Chocolate ID 1226609

27 Source: Mintel GNPD, Q3 and Q4 2009

Packaging Trends
Convenient resealable packaging
Convenient packs: 3% of launches. Innovation here however was limited with many simply comprising established traits such as being resealable (e.g. including zipper or clip to close features) to preserve freshness.
Gold'NKrackle Cinnamon & Sugar ID 1179599

Convenient packaging

Al Sallan Food Industries Honey ID 1189863

Kraft Foods Chocolate, Fudge & Cream ID 1169797

On-the-go formats also rising

On-the-go formats were also niche (2%), with actual products increasing by 37%. Opportunity to compete with more portable snacks, and to target different eating occasions/environments.
Cadbury Milk Chocolate ID 1195064

On-the-go

Kraft Foods Chocolate ID 1165815

Tohato Butter ID 1241583

28

Source: Mintel GNPD, Q3 and Q4 2009

Packaging Trends: Convenient packaging

29

Source: Mintel GNPD, Q3 and Q4 2009

Forecast

Trend to naturalness, the consumer takes care of ingredients such as additives and preservatives. Need of wholegrain, vitamins, minerals, functional ingredients, and superfruits in order to give a wholesome and healthy image; especially for the sweet segment. Eco-friendly packs are likely to grow further given much publicity regarding green issues. Growth potential for on-the-go formats enabling companies to better compete with more portable snacks, and target different eating occasions/environments.

30

Source: Mintel GNPD, Q3 and Q4 2009