Fruit and Smoothie Trends on Restaurant Menus

1. Fruit and Smoothie Trends on Restaurant Menus The beverage menu is largely influenced by whole fruit and fruit flavors in 2010. Fruit is the number one flavor of nonalcoholic and alcoholic beverages. Source: Mintel Menu Insights, Q4 2006 – Q4 2009

2. Fruit, fruit flavor, and fruit sauce incidence • Food and beverage items featuring fruit, fruit sauce or fruit flavors grew by 14.3% over the last 3 years (Q1 2007 – Q1 2010) • Continued increase in fruit availability and variety on the menu demonstrates a trend toward fruit and healthy ingredient awareness, interest, and consumption • Fruit, fruit sauce, and fruit flavors in food items have grown by 12% over the last 3 years and fruit, fruit sauce, and fruit flavors in beverage items have grown by 18% over the last 3 years. 2 Source: Mintel Menu Insights , Q1 2007 – Q1 2010

3. Fruit, fruit flavor, and fruit sauce beverage application • Fruit (fresh or frozen) continues to be a driver for beverage flavor innovation and variety • Fruit is the number one flavor of nonalcoholic and alcoholic beverages • Fresh fruit, fruit juice, and fruit puree incorporation in cocktails and nonalcoholic specialty beverages (tea, lemonade etc.) is driving fruit growth • - 77% increase in alcohol beverages with fruit ingredient or flavors claimed fresh • - Restaurants are replacing sugary cocktail mixers with fresh fruit juices • - 10.5% increase in nonalcoholic beverages with fruit ingredient or flavors claimed fresh Source: Mintel Menu Insights, Q4 2006 – Q4 2009

4. Growth of smoothies on the menu Convenience drives smoothie availability • Since Q4 2006, there has been a 6% growth in smoothies on the menu over the last three years which was mainly driven by convenience and portability provided by the limited-service restaurants • However, full service restaurants have also incorporated smoothies into their increasing nonalcoholic beverage line-up throughout the last three years • Full-service restaurants have the opportunity to use smoothie ingredients in other specialty beverages and food items Versatility is a key benefit and smoothies fill many roles • Depending on how smoothies fit into the beverage platform, smoothies can be health tonics, alcohol alternatives, energy source, treat, or any and all at once Source: Mintel Menu Insights, Q4 2006 – Q4 2009

5. Fruit smoothie flavor analysis • Top fruit smoothie flavors fall into three categories: everyday, tropical, and exotic • Everyday flavors such as strawberry, banana, raspberry, chocolate, and orange continue to top smoothie flavors lists either as a single flavor or flavor blend and serve as base flavors for tropical and exotic flavors. Peach is the latest increasing everyday flavor • Tropical flavors such as pineapple and coconut are appealing because less people are vacationing and more are “stay-cationing” • Exotic flavors with high antioxidant/functional content such acai, blueberry, and pomegranate (not listed) boost the smoothie’s health and value quotient along with adding a bit of intrigue Sources: Mintel Menu Insights, Q4 2006 – Q4 2009

6. Consumer purchasing influence: healthy dining • Majority of consumers Mintel surveyed through it’s upcoming Healthy Dining—U.S., May 2010 report view themselves as healthy • They are incorporating healthy eating habits into their lifestyles—which includes dining out—and looking for restaurants to help them achieve their healthy eating goals • Notably, 49% of consumers say they are eating healthier this year compared to last year Eating healthier compared to last year Source: Mintel Oxygen, Healthy Dining—U.S., May 2010

7. Barrier to healthy dining: availability • Lack of healthy menu item availability can be shown through consumer purchasing habits • In comparison to other breakfast items, fresh fruit and smoothies were purchased considerably less • Lack or ordering could be due to lack of availability which may be why consumers would like to see more of these items on breakfast menus • Opportunity exists to fulfill consumers wants versus what they already find on the menu • 58% of consumers agree they would like to see more healthy items on the menu, and 41% of consumers agree that they usually order healthy items on the menu • There is a disconnect between intent and action • The disconnect may come from many consumers feeling that availability—or lack thereof— of healthy menu items is a barrier to eating healthfully away from home Source: Mintel Oxygen, Breakfast Restaurant Trend —U.S., February 2010

8. Smoothies are popular and they will continue to grow as restaurants build upon nonalcoholic beverage variety, healthy kids’ options, and snacking opportunities, among other ways to build check averages. Monitor your competition for new smoothie introduction, flavor innovation, and smoothie positioning to stay on-top of the trends.  With a state-of-the-art research and development facility, research chefs, and creative technicians at our disposal we will bring unique and innovative ideas to the table.  Our knowledgeable Foodservice sales team tracks the most current beverage and health trends, and works within both the regional and national scopes of the foodservice industry.  Contact Us Today to Freshen Up Your Drink Menu. Tree Top’s Foodservice Department 1-800-367-6571