SHELL: GLOBAL HEALTHIER SNACKING OPPORTUNITY FEBRUARY 2020
Welcome!• The GRENADE® Way• The snacking opportunity!!• Protein bars – what's going on??• Grenade® – the power behind “healthier snacking”• Space, merchandising and range proposals
Key messages! SHOPPERS MARKET CATEGORYShoppers want healthier snacks, with High levels of growth coming from a The opportunity is to offer one central hub for awareness, trial & consumption small number of brands that offer taste, “treat” and “health” snacks. increasing across all demographics. function and mainstream appeal. Grenade is the primary driver of this evolution.
Healthier Snacking is a huge opportunity… CATEGORY DRIVERS• 59% of adults snack at least once a day worldwide1 HEALTH• 77% of shoppers want a balance between indulgence and nutrition1 TASTE • 72% snack to manage their nutritional needs INNOVATION • 78% snack as a treat or as a “reward”• 47% of shoppers are looking for more functional snacks1• Healthier shoppers spend more and shop more frequently2 Source: 1. Mondelez Worldwide State of Snacking November 2019 2. HIM Healthy Snacking Report September 2019
Protein Bars are an everyday, healthier snack– enjoyed by everyone!88% 72% awareness eat protein bars +35% YOY as a snack / treat48% 25% female eat protein bars at least once a week• Growth across all ages and demographics• Affluent• Younger• More impulsive• Taste & protein levels top 2 purchase drivers• Range of flavours 3rd biggest driver Source: Market Measures. National online survey of 3,000 people. October 2019.
The Protein Bar market in the UK is an Protein Bars will account for an increasing amount of spendestablished, highly successful market with astrong future as a “healthier snack” £M Value Sales; Total UK Protein Bars vs. Chocolate Countlines; Euromonitor April 20192 Protein Bars are a key driver of growth within “snacking” Value Sales Growth By Category, Total UK, 52we 29/12/191 100% 1% 1% 1% 1% 2% 2% 2% 3% 3% 4% FORECAST 5% 6% 8% 9% 11% 14%Category £Growth (£M) £Growth (%) 90% 18% 23% 27% 31% 80% Protein Bars 70% Chocolate CountlinesProtein Bars £22 35% 60%Single Chocolate Bars £20 3%Nuts & Mixes 50% 99% 99% 99% 99% 98% 98% 98% 97% 97% 96% 95% 94% 92% 91% 89% 86%Weight Management Bars £2 1% 40% 82%Cereal Bars -£1 -12% 30%Grenade® Carb Killa -£3 -1% 77% £17 111% 73% 69% 20% 10% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: 1: IRI Marketplace, Total UK Market 52we 29/12/19 2: Euromonitor April 2019
Protein Bar brands that offer bothtaste and function are driving growthTASTE FUNCTION(“CANDY” PROTEIN BARS) (SPORTS PROTEIN BARS) “Just the normal chocolate bars “Proper protein bars “Full out protein” “Serious” “Meathead muscle guys” with extra protein stuffed in them” but really good flavours” “Hard core” “High Protein” “Real gym buffs” “From big factories” Grenade® Carb Killa® “Rebuild” “Recovery” “Chewy wodges of fakeness” 6% Share -8% Growth “For dedicated fitness fans” “Taste awful” “Clinical” 70% Share 24% Share -17% Growth +82% Growth • Mainstream shoppers • Everyday usage • Impulse, on-the-go consumption Source: Market Measures. National online survey of 3,000 people. October 2019.
Grenade® Carb Killa® is the UK’s biggestProtein Bar brand and is the main source ofcategory growthTotal UK market UK Petrol FORECOURTS MARKET42% 81% 71% 100% Value share Of Value growth Value share Of Value growth Source: IRI Marketplace, Total UK Market 12we 26/01/20
Grenade® Carb Killa® is The The No.1 brand in: UK’s best selling Protein Bar1 • Supermarkets • Convenience stores9 of the top 10 Protein • Petrol Forecourts Bars in the UK are all The Carb Killa® Brand is bigger Carb Killa® lines1 than any Single Chocolate bar brand in UK Supermarkets1 The Carb Killa® Brand has the highest awareness, trial, satisfaction and loyalty levels of any other Protein Bar in the UK2 Source: 1. IRI Marketplace, Total UK Market 52we 26/01/20 2. Market Measures. online survey of 3,000 people. October 2019.
Within the wider Healthier Snacking category,only a small number of brands are driving growthTop 5 Healthier Snack Brands, Total Brand Level, UK Convenience, Value Sales, 52we 29/12/19N.B. “Healthier Snacking” is a Grenade® defined grouping of existing IRI categories: total Protein, Cereal,Energy bars, Flapjacks, healthier Nuts / Mixes and RTE Meat £Ch% £YTD (£000's) Range choice from99% 69% -10% -9% -2% key brands is driving category£13,196 growth £7,612 £7,285 £4,557 £4,489Grenade Graze Eat Natural Fulfil Kind Source:IRI Marketplace, Total UK Convenience Market 52we 29/12/19
MERCHANDISING SOLUTION MERCHANDISING SOLUTION(SNACKING) (CHOCOLATE CONFECTIONERY)• One location in store for • Grenade Carb Killa with closest related purchase ALL snacking • Impulse led, high footfall location• All shopper needs; “TREAT” to “HEALTH”
OTHER LOCATIONS & POS SUPPORT
GRENADE® ENERGY BOOST HEALTHIER TREATS ENERGY BOOSTPROPOSED RANGE HEALTHIER TREATS
GRENADE® ADDITIONAL SUPPORT AGREED ON A Territory BASISGlobal Proposal3% REBATE OF YEAR1 RSV PAID TO ALL NEW SHELLMARKETS EXECUTED IN 2020(YEAR 1 IS THE PERIOD OF 12 MONTHS FOLLOWING SPECIFIC MARKET LISTING)(VALID TO SHELL MARKETS WHO HAVE 5+ GRENADE SKU’S LISTED)(This is on top of additional support agreed by each territory buyer and Grenade®)YEAR2 10% INCENTIVE REBATE PAID ON YEAR1 RSV + 10% (UK INCENTIVE PAID IN YEAR3) (VALID TO SHELL MARKETS WHO HAVE 5+ GRENADE SKU’S LISTED) (THIS IS INCLUSIVE ON ANY NEW LISTINGS)