Pistachio Usage in Retail and Foodservice - February 2015

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Pistachio Usage in Retail and Foodservice American Pistachio Growers February 5, 2015

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Background & Methodology

Mintel Consulting has researched pistachio ingredients in the US, among both retail product introductions and restaurant offerings. This document is a summary of the

findings and their meaning.

Consumer data was

sourced from our January

2014 report on US Chips,

Popcorn, Nuts, and Dips

REPORTS Mintel Consultants searched

for new retail food and drink

products that include

pistachio as an ingredient,

from Jan 2009 through Dec

2014, in the US only.

Possible categories include

but were not limited to

desserts & ice cream,

bakery, chocolate

confectionery, and snacks

GNPD Mintel’s Consultants set up

a search for US menu items

that included pistachio as an

ingredient, dating back to

2009

MENU INSIGHTS

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Agenda

Nut market overview - US

Pistachios in Retail

Pistachios in Foodservice

Summary and Implications


Nut market overview - US

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Nuts make sense for savvy consumers The nuts segment has benefited from positive perceptions related to health and nutrition, as well as an increase in flavor and product variety. Although a relatively expensive snack, nuts are high in protein and “good fat”, making them ideal candidates for healthy snacking.

Snackers go nuts for nuts

IMPRESSIVE GROWTH The nuts and trail mix segment is growing fast. The segment experienced 53% sales growth during 2008-13, reaching sales of $6.3 billion in 2013. The segment is expected to grow an additional 61% during 2013-18, reaching $10.1 billion, at current prices

SMART SNACKING Nuts have increased in popularity as consumer awareness of nut health and nutritional benefits surge. A Harvard study that linked eating nuts to living longer, healthier lives gained traction in November 2013 HEALTHY PROFILE The high protein and fiber content associated with nuts offsets concerns about their high fat content. They’re the ideal food for ”smart snacking”

Source: Chips, Popcorn, Nuts and Dips –US, Jan 2014 Report

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Nut popularity is soaring

•  Nuts fall only behind regular potato chips in terms of types of salty snacks purchased by American consumers in the past 6 months. Specifically, 80% of consumers aged 65+ bought nuts, as well as 78% of 25-34 year olds and 79% of 45-54 year olds.

•  Income may drive nut purchases, as 55% of consumers seek out a low price when purchasing salty snacks. Nuts tend to be more expensive snacks than those listed in this graph.

Nuts are only behind potato chips in terms of snacks bought in the past 6 months. Consumer health awareness may serve to reverse this hierarchy in the future.

Source: Chips, Popcorn, Nuts and Dips – US, Jan 2014 Report

81%

76%

74%

64%

61%

52%

51%

49%

40%

Regular potato chips

Nuts (salted or unsalted, for snacking)

Tortilla chips

Microwavable popcorn bags or pans (eg Jiffy Pop)

Other chips (fruit chips, bagel chips, vegetable chips, pita chips, etc)

Baked potato chips

Refrigerated dips (eg spinach artichoke dip)

Trail mix

Ready-to-eat popcorn (popcorn that is prepopped in a bag)

Have you purchased the following products in the past six months?

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•  A decline in households with children, as well as an increase in racial diversity, will impact the future of nuts. Households with children and non-White race groups are more likely to have purchased a variety of snacks, especially those with better-for-you claims such as nuts. Pistachios can appeal to health conscious consumers who like to try new food flavors and varieties. 38% of consumers are buying more salty snacks because there is a greater variety available.

•  Recent global product launches show a range of creative flavor profiles possible for pistachio nuts and nut mixes.

More Sophisticated snacks for diverse households

Source: Mintel GNPD

Chili Flavored Pistachios, France Jan 2015

Mixed Nuts with Olives, Spain Jan 2015

Mixed Nuts with Tomato, Switzerland Nov 2014

Nantucket Blend Snack Mix, USA Sept 2014

Jalapeno Pistachios, Canada Sept 2014

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Nuts expected to keep growing through 2018

Source: based on Information Resources, Inc., InfoScan Reviews; USDA Economic Research Service; NACS; CSP Magazine/Mintel

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2009 2010 2011 2012 2013 (est) 2014 (fore) 2015 (fore) 2016 (fore) 2017 (fore) 2018 (fore)

$m

Year

Total US retail sales and forecast of nuts and trail mixes at current prices, 2008-18

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Consumers purchase Kraft, private label

Private label nuts and trail mixes have the largest market share at 34.9% with sales of $1.6 billion in 2013. Sales increased 11.3% from

2012 as developments in nuts helped propel private label sales

Kraft holds the next largest brand share at 24%. Sales increased just

0.1% for Kraft’s brands to reach $1.1 billion in 2013. Planters and Planters

NUT-rition brands were the only brands to increase sales during the

review period

•  Many private label offerings from Target, Walgreens, and CVS feature extensive product lines of nuts and trail mixes with innovative and decadent flavor blends.

•  Kraft’s Planter’s NUT-rition brands were the only branded products to see an increase in sales since 2012, likely due to the wide variety of packaging and flavor options and the focus on protein, vitamins, and minerals. The NUT-rition brand features specific nut varieties based on benefits such as antioxidants, heart health, and digestive health.

Private Label Archer Farms, Dec 2014

Kraft Planter’s NUT-rition

Sept 2014

Source: Chips, Popcorn, Nuts and Dips — US, Jan 2014 Report


Pistachios in Retail

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Nut Types in US Product Launches

Almonds and peanuts have dominated the growing trend of nut inclusions in US product launches,

showing up in categories from spreads to non-dairy milk alternatives and many categories in between.

Pistachios experienced a peak in 2012 in new product launches, followed by a slight dip in 2013.

Source: Mintel GNPD

0

100

200

300

400

500

600

700

800

900

2009 2010 2011 2012 2013 2014

Top Nut Types in US Food & Drink Products that Contain Nuts,

2009-2014

Almond

Peanut

Cashew Nut

Pecan Nut

Walnut

Hazelnut

Palm Nut

Pistachio Nut

Macadamia Nut 0

10

20

30

40

50

60

2009 2010 2011 2012 2013 2014

Pistachios in US Food & Drink Products, 2009-2014

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Top Sellers in 2014

Pistachio Italian Style Frozen Dessert

Average weekly sales: $54,495

Deluxe Pistachio Mix


Pure Pistachio Ice Cream


Cranberry, Pistachio & Orange Zest Oatmeal


•  Although the pistachio variant of these products is not always the highest selling SKU, the products still put up impressive numbers in terms of average weekly sales.

•  Items that include pistachios come with a premium price point and image.

Source: GNPD

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Pistachios in Ethnic Indulgence

Baklava Assortment “handcrafted with honey and butter”

Belgian Chocolate Cups “smooth, creamy centre and artful

garnish”

Cherry Pistachio Flavoured Brie Brûlé Sprinkle

“Bright pistachios to be sprinkled on the surface of the brie cheese and forms a

crust”

Mediterranean Blend Trail “a mouth watering blend of dried

fruits and crunchy nut”

•  Pistachios add elegance and authenticity to ethnic offerings sold in the US. Mostly centering around European cuisine types, pistachios lend credibility to these products, allowing a reason to believe that the products are legitimate.

Source: GNPD

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Check out the bar scene

Yogurt & Oat Bar with Apricot & Pistachio

Apple Toffee Pistachio Chewy Nut Bar

Wild Blueberry Pistachio Bar Mediterranean Blend Trail “a mouth watering blend of dried

fruits and crunchy nut”

•  The numbers are very small,

but pistachios have recently debuted in a series of premium snack bar launches, targeting active consumers who care about simple ingredients, sustainable business practices, and environmentally conscious packaging.

Source: GNPD

1

0

2 2

3

2010 2011 2012 2013 2014

Pistachio Nuts in US Snack Bar Launches,

2010-2014

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Pistachio growth categories

•  Categories showing the most growth include cookies and snack mixes.

Key Categories are Growing

Source: GNPD

82%

0%

300%

50%

100%

0%

100% 100% 100%

0% 0%

50%

100%

150%

200%

250%

300%

350%

0

5

10

15

20

25

30

Pistachios in US Food & Drink Launches, 09-14

2009

2010

2011

2012

2013

2014

% change: 2009 - 2014

Authentic French Macarons These authentic French Macarons are proof of

the premium status of pistachios in product offerings. They are frequently found in upscale ethnic cookie types such as macarons, biscotti,

and baklava

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Just for Fun - Novel Pistachio Uses

•  Turkey wants to use pistachio shells to power its first eco-city, which will require fermenting tons of the green waste in so-called digesters, and then using the resulting gases — mostly methane — to generate heat.

Source: NPR.org, cremedelacraft.org, goodreads.com

•  DIY pistachio necklaces were featured on Pinterest from several craft bloggers.

•  This young adult book features a heroine dealing with the stresses of her teenage years, and happens to eat a lot of pistachios to cope.


Pistachios in Foodservice

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Rising on the menu •  Pistachios as an ingredient on US

menus has grown 32% from 2011 to 2014. Much of this growth came from salads, desserts, and meat dishes in such cuisine types as traditional North American, Italian, and French.

•  Prevalence on upscale menus proves pistachios are seen as a premium ingredient.

Source: Mintel Menu Insights, zmenu.com

0

50

100

150

200

250

300

350

400

2011 2012 2013 2014

Num

ber o

f dis

hes

on m

enu

Year

Pistachios on US Menus, 2011-2014

Fine/ Upscale/ Gourmet

70%

Casual Dining 21%

Fast Casual 6%

Family/ Midscale

3%

Quick Service

Restaurant 0%

Restaurant types featuring Pistachios on the menu, US,

2011-2014 Oven-warm pistachio goat cheese ball

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Menu types and dishes Traditional North American restaurants have both grown the most and use by car the most pistachios since 2011. Desserts have been rising on restaurant menus, as well as pistachio encrusted meats. Cheese is a small but growing menu dish to include pistachios.

Source: Mintel Menu Insights

0

50

100

150

200

250

2011 2012 2013 2014

Cuisine Type of US Restaurants to feature menu items with Pistachios, 2011-2014

North America - Traditional American

Mediterranean - Italian

Mediterranean - French

Mexican

Mediterranean

Asian - Thai

Australian

North America - Southern

Asian - Pan-Asian

European

0

20

40

60

80

100

120

140

2011 2012 2013 2014

Salad

Dessert

Meat

Seafood

Fruit

Vegetable

Terrine

Entree Combination

Cheese

Cereal

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Pistachio snack attack opportunity

•  Restaurant snack offerings lure consumers who seek a convenient and indulgent treat to satisfy their hunger. However, 37% of consumers want to see more healthful snacks at restaurants, more than all other options.

•  Pistachios hit a sweet spot of healthful and indulgent so would be ideal for restaurant snacks.

Foodservice for Snackers

Source: Trends in Snacking and Value Menus in Restaurants—US, June 2013, www.nutsnnuts.com

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New category for expansion - Pizza

•  Various European retail pizza brands have launched variants featuring nuts in the topping.

•  Many US pizza bloggers rave about the addition of nuts to pizza, and nuts have the nutritional and flavor credentials to be a mainstream hit. One in five retail pizza users buy pizzas with toppings they haven’t tried before, rising to 30% of 25-34 year olds.

•  In the US pizza restaurant market, roasted pistachios are sometimes added to toppings – a top seller at the critically acclaimed New York pizza restaurant Don Antonio by Starita is the Pistachio & Sausage pizza, made with puréed pistachios in place of the tomato sauce.

Kale, Red Onion, and Pistachio Pizza

Source: acouplecooks.com, Mintel Food & Drink, US Pizza June 2014 Report

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Source: Mintel Consultancy

Pistachios are found mostly in upscale restaurants and retail offerings with premium appeal. Pistachios should be marketed to companies trying to reinforce the quality of their offerings over the competition.

Premium Edge

Americans have increased their snacking. Some 35% are buying more snacks because they are snacking more instead of eating regular meals. Pistachios offer nutrient-boosted options for replacing meals, as well as portable and convenient packaging for on-the-go occasions.

Healthy fat for a healthy snack

Nuts show appeal among diverse consumer groups - notably those over 65, as well as 24-54 year olds. Pistachios should position themselves as the ingredient of health conscious consumers focused on flavor diversity, authentic ethnic cuisine, and sound nutrition worth paying for.

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Pistachio Usage in Retail and Foodservice - February 2015

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