Disrupting the “big Food” innovation model

Gil Horsky May 16th 2019

OUR MISSION: TO LEAD THE FUTURE OF SNACKING

80,000employees

Sold in over

150 countries

‘18 net revenues

$26 billion

• 1st in Chocolate

• 1st in Biscuits

• 1st in Candy

• 2nd in Gum

Huge MARKET

ON TRENDMDLZ

LEADERSHIP

$1.2TConsumer Behavior

Growing faster than food across

the world

Global packaged snacks leader

Our core categories are ~45% of

packaged snacks

WHY SNACKING?

“Power shifts” are changing how consumers live,

eat & shop….

Smaller companies are winning & growing the category

Stage-Gate – Prof. Cooper 1986

The industry’s innovation playbook hasn’t

changed for the past 33 years…

Cheaper marketing costs through digital and

social media

Ability to outsource everything from product development to manuf.

& distribution

Sinking distribution costs via Amazon / DTC coupled with startup-

friendly retailers

Widespread consumer demand for authentic,

healthy and high-quality foods

There has never been a better time for new smaller food

brands to successfully penetrate the food industry

So maybe we should turn the “big food” innovation process on its

head and focus on starting new entrepreneurial food companies?

Broad Snacking hunting grounds: Well-Being, Premium, Digital platforms

INVENT

Develop innovative businesses or brands

REINVENT VENTURE

Independent Innovation and Venture Hub

Minority investments in start-up companies

Accelerate or reposition existing small brands

OUR FOCUS AREAS

Snacks that are Good for People, Kind to the Planet, Deliciously Fun!

1

Next GenFruit & Veg

Appealing, exciting, and

accessible F&V for modern lifestyles.

2

No Guts, No Glory

Making gut health more

accessible and enjoyable

through new forms/flavors.

3

Heroic School Snacks

Snacks that meet the demands of kids & schools,

and give parents bragging rights.

4

Ready to EatCare

Snacks designed to naturally

bolster the Body and Mind.

5

Planet First Snacks

Snacks that actually support planet Earth and its inhabitants.

OUR APPROAC

H

Agile, Fast &

Experimental

Curious &Collaborative

Progress over

Perfection

Entrepreneur vs. Intrapreneur

Entrepreneur: A person who organizes and manages his/her business,

usually with considerable initiative and risk.

Intrapreneur: A person inside a large organization who takes risks to

solve problems and grow business.

They have entrepreneurial skills blended with managerial skills but operate within the confines of an organization.

• Word was coined in 1976 by Gifford and Elizabeth Pinchot

• Based on their concept of an intra-corporate entrepreneur

• The American Heritage Dictionary made the word mainstream by adding it in 1992

You need a team with the right mindset to drive this

change in a $26B company

FOCUS ON HYPER-ENGAGED CONSUMERS

• Taking a ‘tribal approach’ vs mass market

• If they won’t buy it, nobody will

• Gives us better pulse on what’s important to them, most likely to work

• Allows more agility, flexibility and risk of failure

CONSUMER CENTRIC TRANSACTIONAL LEARNING

• Non-conventional ‘testing’

• Real-time, real-life situations

• Online, offline experiences

• Agility and speed to adapt

AN UNCONVENTIONAL ECOSYSTEM

INTERNAL

EXTERNAL

Procurement

R&DInnovation

Safety

Regulatory

Nutrition

Legal

CorporateAffairs

Policy

FinanceSales

Marketing

Manufacturing

Innovation

Science

NGOs

Incubators

Start-ups

VCs

Culinary

Suppliers

Technology

Influencers

Investment is just the beginning

Access and visibility to our ecosystem

Capabilities to take them to the next level

INVESTING IN STARTUPS

Distribution (DSD and warehouse RTM)

R&D and Quality(State of the Art Tech centers worldwide)

Digital marketing and media (top 15 global advertiser)

Procurement (huge buying power, quality, service, cost efficiency, responsible sourcing)

Manufacturing (factories worldwide, proprietary tech, world-class systems and processes, strong co-man network)

Consumer Insights(market segmentation, social listening, shopper insight, data analytics)

Underpinned by an amazing team of committed leaders and experts who havea passion to lead the future of snacking and empower the world to snack right!

PARTNERING WITH ENTREPRENEURS

OUR FIRST INVESTMENTS

Thank you!