Spice Presentation

AT WORK

SPICES

SPICES ARE RISING IN POPULARITY

U.S. SPICE IMPORTS HAVE

INCREASED

FIRST RESEARCH, SEASONING & DRESSING MANUFACTURING, 2012

100% OVER THE LAST 5 YEARS

TODAY’S PANTRY CONTAINS ABOUT

40

COMPARED WITH 10 IN THE 50’S

2010 LAWRY’S “WHAT’S YOUR FLAVOR” SURVEY

SEA SALT WAS ONCE A COMMODITY

NOW THERE ARE AT LEAST

15 DISTINCT VARIETIES

SALTWORKS.US

OVER

MINTEL, SPICES AND SEASONINGS, 2009

500 NEW SPICES AND SEASONINGS ARE

LAUNCHED EACH YEAR

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GRAVITYTANK | PROJECT SPICE

The U.S. market is growing steadily, and margins are strong.

$ bi

llion

2

3

4

5

2004 2006 2008 2010 2012

U.S. Market Size, Spices and Seasonings

Source: Mintel, Spices and Seasonings

3

Spices are big business.

MARKET SIZE

!4 Billion

AVERAGE GROWTH RATE

2004-2010

!4%/yr.

IN 2009, U.S. GOURMET FOOD SALES

REACHED

!BILLION !$67

EXPLODEDFOOD CULTURE HAS

Sources: Mintel, Cooking Enthusiasts, 2011. Food Technology Magazine, 2011.

MILLION PEOPLE WATCH

COOKING SHOWS

31BY 2014,

U.S. GOURMET FOOD SALES

WILL GROW TO

!BILLION !$87


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$ bi

llion

3

4

5

6

2009 2012 2014

5

Could spices grow as fast as gourmet food?

BUT SPICES ARE ONLY PROJECTED TO GROW

MINTEL SPICES AND SEASONINGS

16% OVER THE SAME

TIME PERIOD

GOURMET FOOD IS PROJECTED TO GROW

MINTEL SPICES AND SEASONINGS

30% BETWEEN 2009

AND 2014

No one comes to the spice aisle to be inspired.

WHERE IS THE SPICE IN SPICE?


We set out to make spices as exciting as food.SPICES AND FOOD ARE INTIMATELY CONNECTED


Get smart about spices and how people use them.

Mission



IN-HOME INTERVIEWS SHOP-ALONGS EXPERT INTERVIEWS IN-HOME PROTOTYPES

FRAMING THE PROBLEM

9

EVERYDAY Purchased frequently, in high volume.

Used freely, creatively & without a recipe. On the counter.

!OCCASIONAL

Purchased infrequently. Used seasonally or in specific recipes.

In the cabinet or drawer. !

RARELY Rarely or never purchased.

Rarely used at home. Purchased in prepared food/sauces.

ALL HOMES HAD THESE SPICE CATEGORIES

RARELY

OCCASIONAL

EVERYDAY


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Framing the business opportunity.

11

RARELY

OCCASIONAL

EVERYDAY

INCREASE USE OF EVERYDAY AND OCCASIONAL SPICES.

RARELY

OCCASIONAL

EVERYDAY

INTRODUCE NEW SPICES.

How can we grow the spice category?

!Understand why people use spices and why they don’t.

Mission


WHY SPICE?

Spices are often what make a meal

“homemade”. !

PAIN POINTS

Spice makes or breaks a dish—cooks need control.

Spices are stale, messy and get lost in the cabinet.

!!MEET SHASHI

“I learned to cook Indian by watching my mom. I just eyeball the amounts. But with

Mexican I’m a little out of my element. I use taco seasoning from a packet [but

would rather not].”

!!!

DAILY DINING Getting food on the table with minimal fuss.


WHY SPICE?

Spices are essential to mastering a new cuisine.

!!PAIN POINTS

Don’t know what the spice does. Grocery store spices

are uninspired. Experimentation is costly.

!!MEET JENN

“Thai food is kinda the next frontier for me. I mean we love it but I don’t know how to make it. Like lemongrass—how do you use that? I don’t know but I want to.”

DISCOVERING Taking fun risks with new cuisines.


WHY SPICE?

People don’t spice, they flavor.

!!PAIN POINTS

No time to cook. Meal seems lazy and generic.

Just want flavor, not a process. !!

MEET JENNY “I cook a lot with Boca burgers and

stuff that I can throw in the microwave and maybe add a couple things to maybe

make it taste a little bit better.”

DOCTORING UP Adding flavor to prepared foods.


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Insights lead to opportunity areas.

QUICK ACCESS TO FLAVOR AND VARIETY.

SHORTCUTS TO FLAVOR

ELEVATING THE SPICE CATEGORY WITH INSPIRATION

AND LOW RISK TRIAL.

PASSPORT TO THE NEW

PROVIDING CONFIDENCE, CONTROL AND EASE TO SPICING

EVERYDAY MEALS.

EVERYDAY EASE

DOCTORING UPDAILY DINING DISCOVERING

INSIGHTS

OPPORTUNITY AREAS

Create solutions to address these opportunities.

Mission



PROTOTYPING TESTING & RE-MAKING REFINING

MAKING TO LEARN

18

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GROWTH STRATEGY

Opportunity areas lead to platforms.

KICKKERALAIMPRESS WITH FLAVOR

PLATFORMS

QUICK ACCESS TO FLAVOR AND VARIETY.

SHORTCUTS TO FLAVOR

ELEVATING THE SPICE CATEGORY WITH INSPIRATION

AND LOW RISK TRIAL.

PASSPORT TO THE NEW

PROVIDING CONFIDENCE, CONTROL AND EASE TO SPICING

EVERYDAY MEALS.

EVERYDAY EASE

DOCTORING UPDAILY DINING DISCOVERING

INSIGHTS

OPPORTUNITY AREAS

GROWING BEYOND THE CATEGORY.

BRINGING NEW CONSUMERS INTO THE CATEGORY.

BRINGING NEW NEWS TO THE CATEGORY.

ADDING A QUICK BURST OF FLAVOR TO GO-TO MEALS

KICK

Grow spice category by pursuing post-cooking occasions, offering unique flavors, and turning spices into an impulse purchase.

DOCTORING UP DAILY DININGINCREASE

NAMES CLEARLY DEFINE FLAVORS RATHER THAN FOCUSING ON SPICES

EASY TO DISPENSE AND LESS MESSY THAN SAUCES

FLAVORS TAILORED TO REGIONAL AND SEASONAL TASTES

PORTABLE, CAN BE USED ON THE GO

PACKAGING SHOWS FOODS THAT PRODUCT CAN BE USED ON


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GRAVITYTANK | PROJECT SPICE 21

KICK: Introduce the occasion, then extend and grow.

PHASE 1: INTRODUCE

PHASE 2: EXTEND

PHASE 3: GROW

PAIR WITH GO-TO FOODS

LIKE PIZZA

NEW FOODS: !ICE CREAM, FRUIT, VEGETABLES

NEW OCCASION: Rub/Marinades !

NEW FLAVORS: Regional/Seasonal !!

HATCH CHILI & LIME AGED CHEDDAR & ONION SPICY CINNAMON & SAGE

GROCERY MASS CLUB

CH

AN

NEL

PRO

DU

CT

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KICK: Place product right next to tonight’s dinner.

FOODS LIKE PIZZA AND ROAST CHICKEN CAN BE CUSTOMIZED FOR EACH FAMILY MEMBER USING DIFFERENT KICKS

KICK TRANSFORMS PREPARED FOODS INTO OPPORTUNITIES FOR MORE VARIETY AND BETTER FLAVOR

PLACING NEXT TO STAPLE FOODS ENCOURAGES IMPULSE PURCHASES

INDIVIDUAL UNITS DRIVE TRIAL WHILE REPEAT USERS CAN PURCHASE LARGER QUANTITIES

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KICK: Product can also be used on foods like ice cream.

SMOKY SPICE

SWEET HEAT

PAIRINGS WITH MULTIPLE TYPES OF FOODS ESTABLISH PRODUCT VERSATILITY

FREEZER DOOR DECALS CALL OUT UNIQUE FLAVOR PROFILES

CLIP STRIPS DRAW ATTENTION AND ENABLE CROSS PROMOTION WITH OTHER BRANDS


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KICK: Product appears in the condiment aisle.

INFUSIONS OF FLAVOR.

SHELF PLACEMENT SUPPORTS REPEAT, ROUTINE PURCHASES ONCE BRAND IS ESTABLISHED

PLACEMENT IN CONDIMENT AISLE ASSOCIATES PRODUCT WITH POST-COOKING FLAVORING OCCASION

DIFFERENTIATED FLAVORS AND PACKAGING REDUCES CANNIBALIZATION OF CONDIMENTS AND SPICES

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Potential Year 1 revenue from mixture of organic growth and stealing share from condiments.

Business Case: KICK

Source: Mintel Spices & Seasonings, 2009

25

114M

SALT MARKET SIZE

$410M

BBQ SAUCES MARKET SIZE

$646M

DRY SAUCES MARKET SIZE

$170 MM

COMPETITION KICK WILL BRING NEW USERS INTO THE MARKET AS WELL AS SOURCE VOLUME FROM CONDIMENTS, SAUCES AND “FINISHING” SPICES SUCH AS SALT & PEPPER

PEPPER MARKET SIZE

$244M

GO TO MARKET PLACE OUTSIDE OF SPICE AISLE; KICK CAN INCREASE SALES OF PAIRED FOODS !SET LAUNCH PRICES NEAR TO THOSE OF CONDIMENTS: $3.99/20 PACKETS, $4.99/JAR !EXTEND PLATFORM TO HIGH VELOCITY, EASILY-CUSTOMIZED FOODS LIKE DESSERTS, DRINKS, FRUIT AND VEGGIES !DRIVE TRIAL WITH DISCOUNTS, BUNDLING AND IN-STORE SAMPLING

U.S. HOUSEHOLDS

38%OF IN-HOME MEALS ARE

LOW/MEDIUM PREP

3%HOUSEHOLD

PENETRATION

IN YEAR ONE$4.50AVERAGE PRICE

PER UNIT

2.5AVERAGE UNITS PER

HOUSEHOLD PER YEAR

= $14.6Mx x

x

IN HOMES • Initial concepts tested

hypotheses around freshness and smaller quantities.

• Freshness did not matter to consumers, but they were interested in portability and buying smaller quantities.

BEHAVIOR LABS • Packs of single servings were

highly desirable, especially for less common spices.

• In contrast, spices that are more commonly used should be sold in large containers.

INTERNAL EXPLORATION • Two design directions: 1) single

servings in a “tea bag” box and 2) an upgraded single serving pouch.

• The upgraded pouch stands upright to avoid spilling, contains an integrated shaker and uses card stock to show photos of paired foods.

FINISHED PRODUCT • Tea box and upgraded

pouch combined to create a single product.

• New product facilitates both at-home and on-the-go use.

• Also sold in bottles for more frequent users.

KICK: Evolution of an Idea


Spice Presentation

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