july 19, 2012: market outlook and strategy update for cpgs and entrepreneurs

SRG AND NUTRITION BUSINESS JOURNAL | INSIGHTS FROM THE NATURAL PRODUCTS WORLD | JULY 2012 1

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IS A BRAND STRATEGY,

INNOVATION, AND

CREATIVITY FIRM

SRG

+ Boulder-based, 130 people

+ Global capabilities

+ 28 years and going strong

newhope360.com/ newhope360.com/

Nutrition Business Journal: The leading business intelligence resource

for the global nutrition industry since 1996.

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+ The Century at a Glance

+ Ancient Wisdom

+ Transcendent Transparency

+ Deconstruction

AGENDA & PARTICIPANTS

+ John Grubb, Managing Partner,

SRG

+ Carlotta Mast, Senior Director of

Content and Insights at New

Hope Natural Media

+ Kevin Whitcher, Director of

Strategy, SRG

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THE NATURAL

PRODUCTS

MARKETPLACE

We think of this world in three pieces—though the recession

slowed growth, the market is back to outpacing

conventional and is beginning to reach real scale.

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PRODUCT SEGMENTS

Minerals

Meal

replacements

Specialty/

other

Vitamins

Herbs/

botanicals

Sports

nutrition

Beverages

Snack foods

Packaged/prepared

foods

Condiments

Dairy

Fruits and

vegetables

Breads

and grains

Meat, fish and

poultry

Skincare

Hair

products

Bath/

toilet soap

Natural/organic

household cleaners

Natural/organic

pet food

Organic flowers

Total organic

fiber (lines

and clothing)

Pet

supplements

Herbs/botanicals

$30.6B SUPPLEMENTS

MARKET, 2011

$14.7B NATURAL LIVING

MARKET, 2011

$87.8B NATURAL, ORGANIC

AND FUNCTIONAL FOOD

AND BEV MARKET, 2011

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NEXT INTRODUCTION

| VIDEO |

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From forbidden fruit to super fruit. ANCIENT WISDOM

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This is not what we mean by ancient wisdom… ANCIENT WISDOM

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ANCIENT WISDOM

But chia is emerging as another new, novel ingredient—in time

for its fifth millennium of cultivation.

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ANCIENT WISDOM

But chia is emerging as another new, novel ingredient—in time

for its fifth millennium of cultivation.

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ANCIENT WISDOM

BRAD’S RAW FOODS

BRADSRAWCHIPS.COM

NATURAL VITALITY VITALITY B

COMPLEX

NATURALVITALITY.COM

WAY BETTER SNACKS

GOWAYBETTER.COM

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ANCIENT WISDOM

DAHLICIOUS LASSI

DAHLICIOUS.COM

VERIA ID INNERDOSHA AND

SO SELF OPTIMIZE

VERIA.COM

(FARMHOUSECULTURE.COM)

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TRANSPARENCY TRANSCENDED

Political Implications: Stuxnet virus. Effective but

now public—accidental leak or strategic boast.

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TRANSPARENCY TRANSCENDED

GOOD AND BAD: Kashi vs. Honest Tea

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TRANSPARENCY TRANSCENDED

GOOD AND BAD: Kashi vs. Honest Tea

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ONE DEGREE

| VIDEO |

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TRANSPARENCY TRANSCENDED

ONE DEGREE ORGANIC FOOD

(ONEDEGREEORGANICS.COM)

BROOKLYN SALSA COMPANY

(BKSALSA.COM)

SPROUT SKINCARE

(SPROUTSKINCARE.COM)

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TRANSPARENCY TRANSCENDED

FOODUCATE

(FOODUCATE.COM)

GAIA HERBS

(GIAHERBS.COM) HERBALIFE

(HERBALIFE.COM)

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We have entered an age of profound deconstruction that is

evident in product, process, design and messaging.

DECONSTRUCTION

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FUTURES2020: ELEGANT REDUCTION

Elegant Reduction sees the opportunity in right-sizing your solution—delivering less overall, but more of

what your consumer wants. Pretty good is often good enough.

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REVELRY BRANDS,

BRENDAN SYNNOTT

| VIDEO |

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INNOVATION

BACK TO THE ROOTS

BTTRVENTURES.COM

JONES SODA

JONESSODA.COM

MEGA FOOD

MEGAFOOD.COM

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RAW MESSAGING

BLUEPRINTJUICE

BLUEPRINTJUICE.COM

THREE TWINS ICE CREAM

THREETWINSICECREAM.COM

SIR RICHARD’S CONDOM CO.

SIRRICHARDS.COM

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MACRO FORCES

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MACRO FORCES

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MACRO FORCES

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CONCLUSION

This is not about specific

products and brands but rather

the trajectory and change that

these macro forces imply—both

for the natural products industry

and consumer packaged goods

broadly.

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THE NATURAL PRODUCTS

INDUSTRY FORECAST 2013

This is the premier insider’s guide to

where the natural products market is

now—and where it is headed.

Born from the partnership of New Hope Natural Media’s

Nutrition Business Journal and SRG, this comprehensive

report provides a deep dive into the trends and market

forces affecting the natural products industry.

NEXT also identifies the products, people, and macro

forces that will shape and provide the greatest

opportunities for tomorrow’s natural products landscape.

Also available in category specific chapters.

Buy one now at www.nextforecast.com

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Sterling-Rice Group

1801 13th Street, Suite 400

Boulder, Colorado 80302

John Grubb, Managing Partner

303-381-6479

jgrubb@srg.com

Kevin Whitcher, Director of Strategy

303-381-6415

kwhitcher@srg.com

Carlotta Mast, Senior Director of Content and Insights

303-998-9119

carlotta.mast@penton.com

Thanks!

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