Powered by Dairy Opportunities for Growth August 28, 2013

Powered by Dairy Opportunities for Growth August 28, 2013

Powered by Dairy Opportunities for GrowthPreliminary Findings October, 2013 Lynn M. Stachura What we will cover: Why Is Powered By Dairy Important? Foundation for Powered By Dairy Research What Opportunities Can Dairy Leverage Within The Energy Space? Relative Size of Prize/Opportunities Quantified 2 Basis of Interest for Powered By Dairy Research Making dairy the go-to food/beverage for people who want more physical or mental energy Basis of Interest Energy drink market in US was $4.8BN in 2008 Functional drinks estimated to grow to $19BN by 2013 (160% growth from 2008) 63% of Americans are concerned about lack of energy 69% say provides energy is important in determining products to buy

Chocolate milk proven to be a good recovery drink 21% are regular energy drink users, including 43% of those ages 1824 Potential Ways to Bring to Life Idea Thought Starters: Symbols on products to show good source of protein Dairy energy bars/drinks Flavors associated with protein: peanut butter Mental energy drinks Fusions milk + high protein products (granola, nuts) Supply Chain Thought Starters: Vending machines at health clubs, athletic centers at universities Only 29% of consumers strongly agree protein is Machines that check energy levels (similar to naturally found in milk; only 25% familiar to whey blood pressure machines) in food stores and then protein recommend high protein items to buy Innovation Center research compiled by GfK identified 3 DAIRY MILK YOGURT dairy categories that have possible opportunities within the INGREDIENT

energy space: 3 Team Work Plan to Uncover Opportunities Dairy Might Leverage Within The Powered Space What dairy opportunity can be leveraged within the energy space and who is the target consumer? Understanding the Why behind consumer needs, habits/practices, attitudes, and behavior? Help identify emerging innovative energy territories Players within the claimed energy space? TNS Landis Database Quantitative Work: Identify potential categories focused in the energy arena so dairy can leverage equity and consumer acceptance GfK Qualitative Work: Identify consumer needs by need state/ occasion/ segments Conduct global scan for new product innovation across energy market Quantitative & Secondary Research: Exploration of energy claims within food & beverage within the retail channel E.g. understanding energy drink/shot categories 4 Executive Summary Dairy has permission to play within energy space Highest priority areas for innovation are Regular yogurt, greek yogurt, smoothies, drinkable yogurt & low fat/skim milk Yogurt categories show most potential to compete w/ energy categories Uncovered preliminary roadmaps for both close-in and farther-out innovation Closer-in growth doesnt require new product development, rather leverages current dairy benefits Farther-out growth requires greater innovation which can lead to higher incremental growth 5

Executive Summary Snack universe (defined by TNS): Regular and greek yogurt occasions have an opportunity to move into the energy space, which accounts for 21% of the snack occasions Learnings from regular and greek yogurt can be applied to other categories such as dessert yogurt, probiotic yogurt and frozen yogurt Relative potential for dairy-based energy snacks is $18.9 billion Beverage universe (defined by TNS): Smoothies, drinkable yogurt and low fat/skim milk occasions have opportunity to move into the energy space, accounts for 30% of the beverage occasions Learnings from smoothies, drinkable yogurt and low fat/skim milk can be applied to other categories such as reduced fat/calorie milkshakes, lactose free milk and organic milk Relative potential for dairy-based energy beverages is 15.9 billion gallons 6 Powered By Dairy: INITIAL DISCOVERY 7 Initial Discovery Uncovers Why Powered By Dairy Is Important To The Industry The functional food/beverage category is a profitable market that grew 25% between 2008 - 2011 despite the recession Energy is among the fastest growing claims with sales increasing 15% in the past year Adults are increasingly more interested in obtaining physical and mental energy in these hectic times Natural energy is becoming the new functional energy trend IRI Sales versus year ago (1 year ending July 15, 2012) New Nutrition Business 2011 New Nutrition Business Key Health and Nutrition Trends 2012 8

Consumers Are Changing Their Diets For A Variety Of Reasons 67% Weight management 54% Overall improved health and wellness 46% Improve overall quality of life 46% Improve body shape/fat composition 34% Increase energy levels Source: The NPD Group/Functional Foods & Beverages Custom Survey; June 12 Top Reasons for Changing Diet: % Made Dietary Changes in Past Year Disclosed with permission of The NPD Group solely for the purpose for which it is being provided by DMI. The reproduction, dissemination or use of the information for any other purpose is strictly prohibited without NPDs prior written consent. 9 Physical And Mental Energy Are Important To Consumers Types of Energy Consumer Are Looking For In Functional Products (Foods & Beverages; % of Adult Sample) 73% 63% 24% Physical ... Mental ... Do not use for ... Source: The NPD Group/Functional Foods & Beverages Custom Survey; June 12 Disclosed with permission of The NPD Group solely for the purpose for which it is being provided by DMI. The reproduction, dissemination or use of the information for any other purpose is strictly prohibited without NPDs prior written consent.

10 Energy Products Maintain Younger Consumers Interest, While Older Consumers Seek More Natural Sources 36% of adults would rather get their nutrients from foods and beverages as opposed to supplements Natural is a good point of difference Source: Package Facts dietary supplements us 2010 study Source: The NPD Group/Functional Foods & Beverages Custom Survey; June 12 Disclosed with permission of The NPD Group solely for the purpose for which it is being provided by DMI. The reproduction, dissemination or use of the information for any other purpose is strictly prohibited without NPDs prior written consent. 11 The Move To Natural Products Is Evident In The Product Does Dairy Have Permission Introductions And Expanded Usersto Expand Into Energy Space? 12 Powered by Dairy: DAIRY OUTLOOK IN ENERGY SPACE 13 Using The TNS Landis Database, Consumers Define Energy As Helps manage my blood sugar Helps me get through my day Provides lasting energy Sustained energy Natural energy Boosts of energy naturally

Won't impair performance Helps me lead active lifestyle Is good after physical exercise Enhances physical performance Energy w/o making me crash later Will not slow me down/feel sluggish Mental energy Energy Physical Energy (Exercise) Quick energy Protein Based Energy Enhances mental performance Helps me stay sharp and alert Is a good way to start the day Helps me stay on track Helps me concentrate Helps wake me up Provides quick energy Picks me up/gets me going Is a supercharged energy source Is a good source of protein Is a good source of soy/ soy protein Other Gives me energy w/o the calories Boosts my metabolism Rejuvenates me Revitalizes me 14 Note: Energy is defined as a need within food and beverage Some Dairy Categories Have Opportunity To Move Into Energy Space 1 25 Dairy Categories

11 dairy categories in the Beverage Universe 14 dairy categories in the Snack Universe 2 Energy Attributes Energy attributes define the energy categories Examples of energy attributes: 3 52 Energy Categories The 26 energy attributes aligned with 52 energy categories Provides quick energy Helps me get through my day Enhances my physical performance Is a good source of protein Enhances my mental performance 15 We Prioritized Five Opportunity Areas Where Dairy Has Greater Permission to Innovate Snack Opportunities 1 Beverage Opportunities 2 3 4 5 Additionally, these dairy categories below have similar traits to innovate against: Snack opportunities Lower Priority Dairy Categories (Dont meet energy needs or other categories meet the needs)

String Cheese Individually Wrapped Cheese Slices Premium Ice Cream Non Premium Ice Cream Soft/ Spreadable Cheeses Cottage Cheese Beverage opportunities Chocolate Milk RTD Refrigerated Milkshakes Whole Milk 16 Note: Reduced fat/ calorie milkshake category are products that require adding milk and stirring U.S. Snack Universe Within TNS Landis Database: (Overview of Snack Need States) Enjoyment 12% NS3 Relieve Relieve Boredom Boredom Multitasking 9% NS5 Spontaneous, spur-of-the-moment, easy, hand-to-mouth snacks to just open and eat to relieve boredom 10% NS4 Indulge Indulge With With Family Family Do Do Other Other Things Things Reward Reward Me Me

6% NS9 Permit Permit Plenty Plenty 4% NS10 Socialize Socialize &&Entertain Entertain Simple/basic, shareable, savory snacks with big flavor, enjoyed while spending time with friends and family Save Save Time Time && Savor Savor 13% NS2 Speedy, Speedy, Sweet Sweet &&Portioned Portioned Sharpen SharpenMy MyMind Mind&& Body Body Vitamin-fortified, energy and metabolism-boosting snacks that help you stay focused, physically active and looking your best 7% NS7 Healthy HealthyMeal MealReplacement Replacement A heart-healthy meal replacement with nutritional value that boosts bodily function and gives the body what it needs to feel good

Savory options with crispy, baked texture, that come complete with all the ingredients and are quick to prepare, but with flavor you dont want to rush 13 4% Enhance Enhance My My Health Health Nutritionally complete options for every day, made with the goodness of real fruit, that rehydrate and rejuvenate the body, enhancing health over the longer term Bite-size, pop-in-your-mouth, low-calorie snacks, good anytime and portable for anywhere, whether on the go or at work or school, permissible for munching all day For personal moments of indulgence that are comforting and not rushed, to help you relax and escape during and after a stressful day 4% NS12 14% NS1 Simple, no-prep, hand-to-mouth savory snacks that are not messy and can be enjoyed while doing other things, whether on the go, at the computer, or in front of the TV Sweet, full-flavored, uplifting, and craveable indulgent treats that are fun for the whole family 4% NS11 Fresh & Filling 7% NS6 Portable, single-serve, sweet, flavorful treats for any time of the day, that provide quick energy to keep going, whether working at a desk or driving in the car

Energize Energize Me Me A natural energy source that revitalizes and sustains throughout the day, with built-in benefits (like antioxidants or calcium) to help improve the bodys function and endurance 6% NS8 Break Breakthe the Routine Routine A freshly prepared, full-flavored option that is a meal in itself served warm, tastes authentic, and is a good change of pace from the usual routine 17 Dairy Opportunity Across Snack/Energy Need States (Relative Size of Prize) Need State/Consumer Segment Dairy Category String Cheese Individually Wrapped Cheese Slices Regular Yogurt Premium Ice Cream Non-Premium Ice Cream Soft/ Spreadable Cheeses Greek Yogurt Cottage Cheese Target Need State

Need State Definition % of Snack Universe Portable, single-serve, sweet, flavorful Speedy, Sweet & treats for any time of the day, that provide quick energy to keep going, whether Portioned working at a desk or driving in the car 13% Portable, single-serve, sweet, flavorful Speedy, Sweet & treats for any time of the day, that provide quick energy to keep going, whether Portioned working at a desk or driving in the car Enhance My Health Nutritionally complete options for every day, made with the goodness of real fruit, that rehydrate and rejuvenate the body, enhancing health over the longer term Sharpen My Mind & Body Vitamin-fortified, energy- and metabolism-boosting snacks that help you stay focused, physically active, and looking your best Sharpen My Mind & Body Vitamin-fortified, energy- and metabolism-boosting snacks that help you stay focused, physically active, and looking your best Healthy Meal Replacement A heart-healthy meal replacement with

nutritional value that boosts bodily function and gives the body what it needs to feel good 7% Energize Me A natural energy source that revitalizes and sustains throughout the day, with built-in benefits (like antioxidants or calcium) to help improve the bodys function and endurance 7% Energize Me A natural energy source that revitalizes and sustains throughout the day, with built-in benefits (like antioxidants or calcium) to help improve the bodys function and endurance 14% 13% Dairy's share of the energy related snack occasions is 54% However, regular and greek yogurt occasions have opportunity to move into the energy space which encompasses 21% 18 U.S. Beverage Universe Within TNS Landis Database: (Overview of Beverage Need States) Emotional Reward 17% NS1 Indulgent Indulgent Moments Moments

Craveable, indulgent, and fun beverages that make you happy and put you in a good mood 7% NS7 Natural NaturalSoothing SoothingSelections Selections Fresh beverages that have a homemade taste and help you de-stress and relax 7% NS8 Sweet SweetFun Fun with withaaTwist Twist Sweet, full-flavored, and fun beverages that have a mix of tastes and are made with fresh fruit that my whole family can enjoy Portable Convenience 9% NS6 Fruity Fruity Goodness Goodness Fruit-flavored, vitamin and mineral-fortified beverages with a mix of tastes that boost your energy naturally 9% NS5 Easy, Easy, Quick, Quick, Convenient

Convenient An on-the-go beverage that gives you quick energy so that you can keep going while youre doing other things 6% NS9 Easy EasyRefreshment Refreshment Refreshing, thirst-quenching, and light-tasting beverages that are good to have with a meal Meal Replacement 6% NS10 Healthy HealthyMeal MealReplacement Replacement Fresh, natural, and nutritionally complete beverages that strengthen teeth and bones, build muscle, and tide you over until your next meal 5% NS11 Satisfying SatisfyingEnergy Energy Enhancement Enhancement Filling, energizing beverages that tide you over until your next meal and make you feel adventurous Health Management 11% NS3 The

TheReal RealDeal Deal All-natural, wholesome, and great-tasting beverages that have heart-healthy ingredients and help set a good example 11% NS2 Proper Proper Health Health Management Management Beverages that make you feel fit/ healthier, enhance your mental focus, aid your digestive system, and make you feel that your are taking care of yourself 10% NS4 Healthy Healthy Weight Weight Management Management Daily guilt-free beverages, lower in sugar and calories, that are not too filling and help you manage your weight 4% NS12 Low LowThis, This, Low LowThat That Lower in sugar and calories beverages that are not too filling, dont spoil your appetite, and help you feel in control 19

Dairy Opportunity Across Beverage/Energy Need States (Relative Size of Prize) Need State/Consumer Segment (Beverage Universe) Dairy Category Fruit or Yogurt Smoothies From a Restaurant/ Smoothie Shop Chocolate Milk in Bottles/Cartons RTD Refrigerated Milkshakes Drinkable Yogurt Whole Milk Low-Fat/Skim Milk Target Need State Need State Definition % of Beverage Universe Fruity Goodness Fruit-flavored, vitamin and mineralfortified beverages with a mix of tastes that boost your energy naturally 9% Easy, Quick, Convenient An on-the-go beverage that gives you quick energy so that you can keep going while youre doing other things 9%

Satisfying Energy Enhanceme nt Filling, energizing beverages that tide you over until your next meal and make you feel adventurous 5% Proper Health Management Beverages that make you feel fit/healthier, enhance your mental focus, aid your digestive system, and make you feel that your are taking care of yourself 11% Proper Health Management Beverages that make you feel fit/healthier, enhance your mental focus, aid your digestive system, and make you feel that your are taking care of yourself Healthy Weight Management Daily guilt-free beverages, lower in sugar and calories, that are not too filling and help you manage your weight Dairys share of the energy related beverage occasions is 44% However, smoothies, drinkable yogurt and low fat/ skim milk occasions have opportunity to move into the energy space which encompasses 30% 10%

20 The Study Defined Two Distinctive Types Of Innovation For Dairy How to innovate: Create a new hybrid product that leverages dairy benefits and meets energy attribute needs How to innovate: Develop communication that builds upon dairy benefits so it can be positioned against energy categories 1. 2. 1. 2. Innovation that is quick but yields less growth; doesnt require new product development Leverage new benefits/positioning that communicate dairy categories strengths against existing competitive energy categories Helps build upon needs not met by energy categories yet delivered by dairy Capitalize on needs that dairy outperforms energy categories Example: Position drinkable yogurt messaging that delivers opportunities such as helping feel good, looking my best or helping family maintain health as a way to compete against other energy categories High Innovation needed but yields high growth New hybrid product not created, consumers slower to grasp concept 3. Highly incremental opportunity Requires longer lead time

Need to address consumer needs that are served well by energy categories however, not dairy categories Extending dairy into strongly connected energy categories Example: New to the world hybrid category Nutritionally Balanced Drinkable Yogurt Shots: This product would deliver on helping consumer feel and look their best and can be considered an option for the family to stay healthy. Goal is to help consumer meet energy needs of feeling fit/ healthier and makes up for less nutritional choices 21 Regular Yogurt: Opportunity At A Glance Where Does Regular Yogurt Currently Play? Need State: Enhance My Health (Accounts for 14% of Energy related Snack Occasions ) Defining Enhanced My Health Health functions Fresh/natural ingredients Sound nutrition Better performance Natural lift Categories Competing Within Enhance My Health Need State Fresh fruit whole or precut 100% RTD fruit smoothies Greek yogurt Dairy-based vegetable dips Cottage cheese Who Is My Target Consumer? Disciplined Eaters: Eat To Live Older consumers Proactive and disciplined Love food and are adventurous eaters Managing their food and nutrition choices Freshness and sources of the foods important Fruit cups Fruit Crisp Bars Cereal naturally sweetened Peanut butter in on-the-go cups

How To Innovate? Closer-In Innovation OR Further-Out Innovation 22 Regular Yogurt: Preliminary Guidance For Innovation How To Innovate? Communicate Regular Yogurt Benefits*: 1 Needs Not Met By Energy Categories: 2 Yogurt Outperforms Energy Categories: Helps digestive system work at its best Helps maintain teeth/ bones strength Enhances daily health Helps ensure long-term health Has redeeming nutritional value Helps me feel good about self Closer-In Innovation Further-Out Innovation Regular yogurt competes against these energy based categories (competitive set): * Must communicate all the regular yogurt benefits (above) to innovate far-out:

Cheese/Queso dips Dairy-based vegetable dips Peanut butter OTG cups Low-calorie chocolate candy bars Reduced calorie brownies Reduced calorie cookies Important energy attributes needed to innovate: Is naturally sweetened Use high quality ingredients Naturally rich in vitamins Build new dairy/energy product: Low to high innovation/risk factor: Fuse regular yogurt with energy Not applicable LOW Innovate Against Energy Competitive Set: product to create new hybrid product INNOVATION Higher innovation higher growth NEEDED Develop regular yogurt positioning that New product not yet invented Dairy-based vegetable dips MODERATE Cheese/Queso dips optimizes above communication/benefits Ex: Expand regular yogurt into energy INNOVATION NEEDED Ex: Regular yogurt needs to communicate space by leveraging above benefits Fruit cups Reduced calorie brownies along with energy attributes to create HIGH

some of its inherent benefits, such as bone INNOVATION Peanut butter OTG cups breakthrough innovation fusion Reduced-fat/sugar cookies health, to compete with the above NEEDED Low-calorie chocolate candy bars categories/products competitive set 23 Note: *Must meet both criteria (1 and 2) before innovation Greek Yogurt: Opportunity At A Glance Where Does Greek Yogurt Currently Play? Need State: Energize Me (Accounts for 6% of Energy related Snack Occasions ) Defining Energize Me Gets me going, keeps me going Has sound nutrition Is a natural lift Has fresh/natural ingredients Supports body functions Categories Competing Within The Energize Me Need State Peanut butter Packaged frozen yogurt Regular Yogurt Fresh fruit precut or whole Fruit cups Who Is My Target Consumer? Life- Balancing Weight Manager Image is important for these consumers Live to eat as mindful of health & nutrition Yet struggle with weight/guilt of eating Take time to exercise and look attractive Yet not truly satisfied w/ how they look Cereal 100% nutritionally complete, 100% wholegrain Fresh, cooked or raw vegetables Heart-healthy spreads How To Innovate? Closer-In Innovation OR Further-Out Innovation

24 Greek Yogurt: Preliminary Guidance For Innovation How To Innovate? Communicate Greek Yogurt Benefits*: 1 Needs Not Met By Energy Categories: 2 Helps build muscle Boost immune system Helps digestive system work at its best Closer-In Innovation Greek yogurt competes against these energy based categories (competitive set): Fruit cups Cereal high fiber Cereal 100% wholegrain Cereal 100% nutritionally complete Heart-healthy spreads Greek Yogurt Outperforms Energy Categories: Good source of calcium Further-Out Innovation * Must communicate all the Greek yogurt benefits (above) to innovate far-out: Important energy attributes needed to innovate: Enhance physical/ mental performance Good source of antioxidants

Fortified w/ vitamins and/or minerals Is made with fresh/real fruit Promotes healthy skin Build new dairy/energy product: Low to high innovation/risk factor: Fuse Greek yogurt with energy Not applicable LOW product to create new hybrid product Develop Greek yogurt positioning that INNOVATION Higher innovation higher growth NEEDED optimizes above communication/benefits Cereal 100% nutritionally New product not yet invented Cereal 100% wholegrain MODERATE Ex: Greek yogurt needs to communicate Ex: Expand Greek yogurt into energy Heart-healthy spreads INNOVATION Fruit cups some of its inherent benefits, such as NEEDED space by leveraging above benefits builds muscle, boosts immune system or Cereal- high fiber along with energy attributes to create Fresh fruit/precut with a dip HIGH helps digestive system work its best to breakthrough innovation fusion INNOVATION Fresh fruit/whole compete with the above competitive set NEEDED categories/products 25 Note: *Must meet both criteria (1 and 2) before innovation Innovate Against Energy Competitive Set: Fruit/Yogurt Smoothies: Opportunity At A Glance Where Does Fruit/ Yogurt Smoothies Currently Play?

Need State: Fruity Goodness (Accounts for 9% of Energy-related Beverage Occasions ) Defining Fruity Goodness Good for body Fruit- flavored Natural energy boost Kid-friendly Partner with exercising Complex taste Good for lunch/ as a snack Categories Competing Within Fruity Goodness Need State Bottle tea blend w/ fruit juice Fruit juice drinks/blends Sparking fruit juices Soft drinks fortified with vitamins and/or minerals Who Is My Target Consumer? Social Indulger: Live to Eat Eating is important to younger single men Rely on other to prepare food (at home & away) On-the-go consumers w/ active, busy lifestyle Dont worry about weight or health issues Fortified fruit juice Regular RTD sports drinks Pre-game fuel drinks Post-game drinks Herbally enhanced drinks How To Innovate? Closer-In Innovation OR Further-Out Innovation 26 Fruit/ Yogurt Smoothies: Preliminary Guidance For Innovation How To Innovate? Communicate Fruit/Yogurt Smoothie Benefits*: 1

Needs Not Met By Energy Categories: 2 Smoothies Outperforms Energy Categories: Good mixture of tastes Variety of tastes in every bite Good as a snack Closer-In Innovation Fruit/yogurt smoothies competes against these energy based categories: Flavored fitness water RTD sports drink (regular/low calorie) Pre-game fuel drinks Post-game drinks Herbally enhanced drinks Nutritionally complete drinks Calorie-burning drinks Innovate Against Energy Competitive Set: Develop fruit/yogurt smoothie positioning that optimizes above communication Ex: Smoothies needs to communicate some of its inherent benefits, such as mixture or variety of taste or good snack and kid friendly to compete with the competitive set Fruit flavored, sweet Kids can prepared/serve themselves Kids like/parents approve of Further-Out Innovation * Must communicate all the smoothie benefits (above) to innovate far-out: Important energy attributes needed to innovate: Good for fast paced lifestyle

Easy to prepare Doesnt drip when I drink it Provides quick energy Good for when I am surfing the web, blogging or texting Build new dairy/energy product: Low to high innovation/risk factor: Fuse smoothies with energy product LOW INNOVATION Not applicable to create new hybrid product NEEDED Higher innovation higher growth Herbally enhanced drinks MODERATE INNOVATION New product not yet invented NEEDED Flavored fitness water Ex: Expand smoothies into energy RTD sports drinks HIGH space by leveraging above benefits Pre-game fuel drinks INNOVATION Low-calorie RTD sports drinks along with energy attributes to create NEEDED Post-game drinks Nutritionally complete drinks breakthrough innovation fusion Calorie-burning drinks categories/products Note: *Must meet both criteria (1 and 2) before innovation 27 Drinkable Yogurt: Opportunity At A Glance Where Does Drinkable Yogurt Currently Play? Need State: Proper Health Management (Accounts for 11% of Energy-related Beverage Occasions ) Defining Proper Health Management

Feel and look my best Promotes healthier lifestyle Promotes brain function Better bodily function Controlling the bads Categories Competing Within Proper Health Management Need State Soy milk Protein-enhanced water Bottle water fortified w/ vitamins Unflavored fitness water Vegetable juices Nutritionally complete drinks Weight-loss beverages Calorie-burning beverages Low-fat/skim milk Who Is My Target Consumer? Disciplined Eaters: Eat To Live Older consumers Proactive and disciplined Love food and are adventurous eaters Managing their food and nutrition choices Freshness and sources of the foods important How To Innovate? Closer-In Innovation OR Further-Out Innovation 28 Drinkable Yogurt: Preliminary Guidance For Innovation How To Innovate? Communicate Drinkable Yogurt Benefits*: 1 2 Needs Not Met By Energy Categories:

Helps me look my best Closer-In Innovation Drinkable yogurt competes against these energy based categories (competitive set): Nutritionally complete drinks Weight-loss beverages Innovate Against Energy Competitive Set: Drinkable Yogurt Outperforms Energy Cat.: Helps me feel good Helps maintain family health Give my body what it needs to feel good Further-Out Innovation * Must communicate all drinkable yogurt benefits (above) to innovate far-out: Important energy attributes needed to innovate: Helps me feel fit/ healthier Helps make up for less sensible choices Build new dairy/energy product: Low to high innovation/risk factor: Fuse drinkable yogurt with energy Not applicable LOW product to create new hybrid product INNOVATION Higher innovation higher growth Ex: Drinkable yogurt needs to communicate NEEDED Nutritionally complete drinks New product not yet invented some of its inherent benefits, such as MODERATE Weight-loss beverages Ex: Expand drinkable yogurt into making me feel good, maintaining family INNOVATION NEEDED energy space by leveraging above health to compete with the above Not applicable HIGH benefits along with energy attributes competitive set INNOVATION

to create breakthrough innovation NEEDED fusion categories/products 29 Note: *Must meet both criteria (1 and 2) before innovation Develop drinkable yogurt positioning that optimizes above communication/benefits Low Fat/Skim Milk: Opportunity At A Glance Where Does Low Fat/Skim Milk Currently Play? Need State: Healthy Weight Management (Accounts for 9% of Energy-related Beverage Occasions ) Defining Healthy Weight Management Categories Competing In Healthy Weight Management Need State Weight control/Better for me No-regret consumption Healthy ingredients Low/no sugar and Light/not too filling Better health management Unflavored fitness water Bottled spring water Bottled purified water plain Low-cal. fruit-flavored drink mix Sparkling water unflavored Who Is My Target Consumer? Disciplined Eaters: Eat To Live Older consumers Proactive and disciplined Love food and are adventurous eaters Managing their food and nutrition choices Freshness and sources of the foods important Unflavored bottled teas Soy milk Low-cal. RTD sports drinks How To Innovate? Closer-In Innovation OR Further-Out Innovation 30

Low Fat/Skim Milk: Preliminary Guidance For Innovation How To Innovate? Communicate Low Fat/Skim Milk Benefits*: 1 Needs Not Met By Energy Categories: 2 Low Fat/Skim Milk Outperforms Energy Cat.: No added sugar Helps lower cholesterol Low fat/low calories Can have every day Does not contribute to childhood obesity Closer-In Innovation Further-Out Innovation Low fat/skim milk competes against these energy based categories (competitive set): * Must communicate all low fat/skim milk benefits (above) to innovate far-out: Unflavored fitness water Soy milk Vegetable juices Innovate Against Energy Competitive Set: Develop low fat/skim milk positioning that optimizes above communication Ex: Low fat/skim milk needs to communicate some of its inherent benefits, such as providing no added sugar and lowers cholesterol to compete with the above competitive set Important energy attributes needed to innovate: Is low in salt/ sodium

Is sugar free Build new dairy/energy product: Low to high innovation/risk factor: Fuse low fat/skim milk with energy product to create new hybrid product Higher innovation higher growth New product not yet invented Ex: Expand low fat/skim milk into energy space by leveraging above benefits along with energy attributes to create breakthrough innovation fusion categories/products Note: *Must meet both criteria (1 and 2) before innovation LOW INNOVATION NEEDED Unflavored fitness water Soy milk MODERATE INNOVATION NEEDED Vegetable juices HIGH INNOVATION NEEDED Not applicable 31 Relative Size of Prize For Dairy Snacking And Beverage Energy Occasions Energy Related Snack Occasions Snacking is a $90+ billion industry 21% of snacking occasions are energy-related, which creates a: Energy Related Beverage Occasions 1 Beverage a 53 billion gallon industry 2

30% of beverage occasions are energy-related, which creates a: $18.9 Billion 15.9 Billion Gallon Opportunity Opportunity 1: Innovation Center of U.S. Dairy, Snacking white paper (2009) 2: Innovation Center of U.S. Dairy, Dairy Beverage Reinvented (2012) 32 What Else Might We Uncover From This Initial Work? 33 Additional Mining of This Data Could: Look more deeply into protein energy connection Create work around energy dimensions Example: sustained, natural or quick energy etc Dig into the consumer target(s) of highest priority opportunities Explore some lower priority dairy categories Further refine sizing estimates based on new information Other issues of interest for your organization? 34 Powered by Dairy: APPENDIX 35 Matrix Consumption Universe Methodology Overview Overall Food & Beverage What is the Consumption Universe? A comprehensive insight resource for food and beverage marketers, leveraging the proprietary TNS Matrix methodology to model how consumers see the market and make their product choices Massive scope: 24,000 consumer interviews 360 food, beverage, and snack products/

categories evaluated across 360 occasion-based needs and product benefits, plus over 50 statements defining differentiated consumer targets based on shared beliefs, behaviors, and lifestyle factors The Matrix Consumption Universe is designed to help you: Understand all factors impacting consumer choice in your category or a new category of interest Quickly uncover bona fide gaps and opportunities grounded in consumer needs Efficiently expand your perspective beyond traditional category definitions to identify new opportunities 36 Survey Overview Many approaches, such as A&Us, ask a lot of questions on a survey, the more the better, and then hope something interesting surfaces. Matrix instead leverages a consumer behavioral model to drive survey content and analytics/deliverables, and take the guesswork/risk out of research design and execution. 37 What is a consumer target? Consumers have varied lifestyles, behaviors, tensions, and beliefs which predispose them to act in certain ways. Matrix uncovers the differentiated consumer segments which comprise your market targets each with different beliefs, behaviors, and/or lifestyle tensions and sizes them to aid prioritization. 38 U.S. Consumption Universe Consumer Segments Overview of Beliefs & Lifestyles LIVE LIVE TO TO EAT EAT EAT EAT TO TO LIVE LIVE

Food Aficionados Carefree Struggling Home Cookin Family Pleaser (10%) Upbeat Food Explorer Social Indulger Routine Convenience Seeker Stressed Struggler Conflicted Stressed Manager (14%) (11%) (10%) (15%) (15%) These women provide basic home-cooked food, and eat with their families. They are not focused on health or nutrition, and do not limit themselves or feel guilty about it. They are not impacted by daily stresses in their lives. These foodies are adventurous in life,

cooking, and eating. They moderate their eating to maintain a healthy lifestyle and an active social life. They enjoy freshly prepared foods more than fast food or junk food. Eating is important to Life is stressful for these For these single male these younger, single consumers, food is fuel consumers, and they men, but they rely on that supports their on-the- lack the energy to tackle others to prepare foods go lifestyle. Takeout and lifes challenges. for them whether at quick-cooking foods are Although they struggle home or away. the basis of their meals with weight issues, they Their active, busy rely on easy prep or and snacks, and they rarely lifestyle means they are prepare their own food. simple meals to make often eating on the go, Neither explorers nor their families happy. and they dont worry adventurers, they regularly They tend to stick with about weight or health eat the same foods. They the tried and true in issues. their food choices, and eat what they want without health concerns. often use food for comfort. These consumers struggle to maintain a healthy weight and try to eat better, but dont always succeed. They are focused on fresh food and nutrition, and do not rely on fast food for their meals. Disciplined

LifeBalancing Weight Manager (11%) Wellness Proactive These consumers are mindful of health and nutrition, but struggle with weight issues and guilt about eating. Image is important to these consumers, and they take steps to exercise and look attractive, but they are not truly satisfied with how they look. Although these older consumers are lovers of food and adventurous about eating, they are proactive and disciplined in managing their food and nutrition choices. Freshness and sources of the foods they choose are important to them. (13%) 39 Energy-Related Categories (Snack Universe) Yogurt Yogurt - with probiotics Cereal Cereal - bran/high fiber Cereal - 100% wholegrain Yogurt - Greek type Yogurt - regular type Cereal - 100% nutritionally complete Drinkable yogurt Nuts, Granola

Granola, fruit, and nut mix in pouches Granola/muesli Fortified nut mixes such as for bone or heart health Trail Mixes Fruit Based Dried fruit Fresh fruit - whole Fruit cups 100% fruit smoothies - ready-to-drink Confections/Treats Low-calorie chocolate candy bars or clusters Reduced-calorie brownies Peanut butter in on-the-go cups Natural/organic cookies Bars Energy bars Protein bars Chewy granola bars Chewy granola/cereal bars with fiber Nutritional bars Crunchy granola/cereal bars Fruit crisp bars Weight-loss meal replacement bars Dips/Spreads Reduced-fat/fat-free vegetable dips Heart-healthy spreads Crackers/Seeds Whole wheat/multigrain crackers Seeds (like sunflower, pumpkin, etc.) 40 Energy-Related Categories (Beverage Universe) Protein Drinks Protein-enhanced sports drinks Energy Beverages Energy shots (like 5-Hour Energy, etc.) Protein drinks - ready-to-drink Single-serve flavored powdered energy drink mix Protein-enhanced water Energy drinks Single-serve flavored powdered energy drink mix

Weight Management Beverages Calorie-burning beverages Weight-loss beverages Fuel/Functional Beverages Pre-game fuel drinks Post-game drinks with electrolytes and carbs Regular ready-to-drink sports drinks Low-calorie ready-to-drink sports drinks Coffee Beverages Brewed coffee - regular Instant coffee Single-serve, one-cup-at-a-time coffee Other Beverages Vegetable juices Soy milk Flavored fitness water Unflavored fitness water Herbally enhanced drinks Nutritionally complete drinks 41

Recently Viewed Presentations

  • Counting Atoms - Dr. Sande's Chemistry Courses

    Counting Atoms - Dr. Sande's Chemistry Courses

    Counting Atoms Every chemical formula tells you how many atoms of each element there are in a compound. Important because if you can count atoms, you can balance equations. Here's an example H2O LET'S PRACTICE! MgCl2 Atoms of Magnesium: Atoms...
  • PROJECT FOCUS AREAS FY20+ POTENTIAL CONTRACT OPPORTUNITIES 2

    PROJECT FOCUS AREAS FY20+ POTENTIAL CONTRACT OPPORTUNITIES 2

    Megger Protective Relay Test Set (Supply), FY20. Tailrace Gantry Crane Replacement, FY20. Station Service Turbine Repairs, FY20. Trash Rack Rehab, FY20. Spillway Gate and Hoist Upgrade, FY21. Isolated Phase Bus Upgrade, FY21. Powerhouse Drainage, Unwatering Upgrade, FY22.
  • Critical Care Victoria

    Critical Care Victoria

    STANDARDISED INOTROPES & VASOPRESSORS IMPLEMENTATION PROJECT. Intensive care at SWH is a chosen pilot hospital that has been working with multi disciplinary groups/healthcare organisations and the BCV network to implement a pilot program centered around standardizing our inotrope/vasopressor guidelines.
  • 1. dia - Notaries of Europe

    1. dia - Notaries of Europe

    ordre public (Art. 35) adaptation of certain (in rem) rights (Art. 31) states with more than one legal system: - interlocal conflict-of-laws (Art. 36) - interpersonal conflict-of-laws (Art. 37) Non-application of this Regulation to internal conflicts of laws (Art. 38)
  • SE Principles Silver Bullets CS 620/720 Software Engineering

    SE Principles Silver Bullets CS 620/720 Software Engineering

    SE Principles Silver Bullets CS 620/720 Software Engineering January 15, 2004 Poor Engineering leads to ad-hoc structure! Poor Engineering Has Disastrous Consequences! Poor Engine
  • Death at the spag bol - primaryresources.co.uk

    Death at the spag bol - primaryresources.co.uk

    A wild boar ferreted among the dead leaves and opened a seed capsule. "I understand," remarked Eric, "Those seedpods smell so strongly, animals turn up from miles around." "I agree with you," grunted Rachel. (verbs) The two climbers became painfully...
  • MADIT Randomized Trial to Reduce Inappropriate Therapy (MADIT-RIT

    MADIT Randomized Trial to Reduce Inappropriate Therapy (MADIT-RIT

    MADIT Randomized Trial to Reduce Inappropriate Therapy (MADIT-RIT). Adapted from AHA Late Breaking Trial Results Presented by. Arthur J. Moss, MD. Professor of Medicine . University of Rochester Medical Center
  • So you want to get started with JavaScript?

    So you want to get started with JavaScript?

    W3Schools Resources. Project of the W3C - World Wide Web Consortium. w3schools.com. Tutorials and Reference for HTML, JavaScript, CSS, SQL, JQuery and much more. W3C is the organization that develops the standards for how the web works - the browsers...