Millennials as the Primary Household Shopper

Millennials as the Primary Household Shopper Claire Quinn – Group Director, CategoryAdvisory Services, Shopper Insights Info.shoppermarketing@coca-cola.com

Millennial Household ShoppersWho they Are, How they Shop and the Beverages they Buy
(Full Unabridged Version) Prepared by:Daren Sorenson November 2012

What this report is about This report was created to provide a comprehensive view ofMillennials - from the lens of the Primary Household Shopper. Millennials differ from any other cohort, as they influenced by culture, politics, economics and especially technology. They are learning how to spend effectively using different means and through different channels to purchase our brands. Although they favor certain brands outside of CPG, they are certainly influenced early on by price when shopping for CPG . Millennials are being shaped today in their lifestyles, buying behaviors and methods of communication and product preferences. The impact of kids in their lives drastically changes their buying behaviors. This report is intended to help us understand the Millennial Primary Household Shopper – and give a contemporary view of who they are today and where they may be headed in the future – as people, shoppers, beverage consumers and purchasers. NOTE: Additional detail has been provided in notes pages for a number of slides.

The Households/Shoppers Featured in this Analysis Millennials w/o Kids Born 1978-1995 (Ages 18-33) Head of HH and/or Primary HH Shopper No Kids <18 in HH Non-Millennials Born before 1978 (Ages 34+) Head of HH and/or Primary HH Shopper Inclusive of Gen X, Matures & Boomers Millennials w/Kids Born 1978-1995 (Ages 18-33) Head of HH and/or Primary HH Shopper One or More Kids <18 in HH Gen Xers Born 1965-1978 (Ages 34-46) Head of HH and/or Primary HH Shopper HCMs Ages 25-49 Head of HH and/or Primary HH Shopper One or More Kids <18 in HH Boomers Born 1946-1964 (Ages 47-65) Head of HH and/or Primary HH Shopper A variety of data sources were used in this report, matched as closely as possible to meet the definitions above for each segment (A complete list of data sources can be found in the appendix)

Table of Contents (Click on underlined topics below, while in presentation mode, to visit specific sections of the analysis)

The Business Case for Millennials: Why We Should Care Return to Table of Contents

More than 90% of Millennials are now 18-34, and gaining leverage as shopping HHs Share of U.S. Adult Population, Households and Household Members by Cohort Millennial HHs gaining leverage Gen X HHs have greatest leverage Boomer HHs losing leverage Gen Xers Boomers Millennials Source: U.S. Census Bureau, Current Population Survey, 2012 Source: U.S. Census Bureau, Current Population Survey, 2012

Growing Households = Increased SpendingBy 2020, primary shoppers in Millennial households will control a massive proportion of total grocery spend Average Household Spend, by HH Composition Food Consumed at Home Index vs. Couples w/No Kids: 65 113 144 147 Food expenditures are also substantially higher among HHs with kids, and increase over time with the age of children Source: “Consumer Expenditures in 2010” - U.S. Bureau of Labor Statistics, August 2012

Millennial primary HH shoppers have tremendous influence over the beverages their households purchase and consume % Claiming to Influence All or Most of their HH Purchasing for the Category Millennials, Aged 18-33 (Primary HH Shoppers vs. Non-Primary HH Shoppers) Q: And still thinking about all of the (BEVERAGE TYPE) consumed by household members, what proportion of these do you personally have any say in what type or what brand is bought – that is for use by yourself and/or other members of your household? Source: Consumer Beverage Landscape Study, 2011

Summary: Key Points to Remember Millennials are a very large yet relatively young cohort – though 27% of the people in the U.S are Millennials, only 15% have come of age as heads of households – this will change dramatically between now and 2020 As more become heads of household, Millennials will control or control or influence an increasing share of all beverages bought and consumed in the U.S. With more Millennials come of age as adults, CPG spending within this cohort will rise dramatically and stay elevated for years to come – by 2020, Millennial-headed households will account for more CPG spending than any other cohort Return to Table of Contents

Millennial Heads of Household: Who are they? Return to Table of Contents

Adult Millennial HHs: Demographic Skews Millennial HHs with Kids Millennial HHs without Kids Age: 18-33 (Born 1995-1978) HH Size: 3+ Members Most Typical Age of Kids: <6 HH Income: $30,000 – 69,9999 Lifestyle: Comfortable Country Employment: Part Time Education: College Graduate Age: 18-33 (Born 1995-1978) HH Size: 1-2 members Avg. Presence of Kids: N/A HH Income: $30,000 – 69,9999 Lifestyle: Struggling Urban Cores Employment: Full Time Education: College Graduate The presence of kids impacts where Millennials live as well as their shopping and buying habits Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Financial Outlook & Optimism “Although times are a bit tough right now, I’m confident things will turn around. In my opinion, the glass is half full.” Return to Table of Contents

Adult Millennials continue to face high levels of unemployment and under-employment Unemployment Rate, By Age (2011) As a result of the recession… 49% of 18-34 year-olds claim to have taken a job just to pay the bills 24% have taken an unpaid job to get work experience MILLENNIALS NON-MILLENNIALS N=808 Source: Pew Research Center, “Young, Underemployed and Optimistic”, February 2012

Difficult economic conditions have put Millennials on a very non-traditional path, impacting their long-term plans % of 18-34 year-olds saying they have done each in recent years because of economic conditions Millennials are coming of age much more slowly than previous generations N=808 Source: Pew Research Center, “Young, Underemployed and Optimistic”, February 2012

Despite their situation, Millennials show a higher degree of consumer confidence than either Boomers or HCMs Q: DO YOU THINK THAT YOU ARE BETTER OFF OR WORSE OFF FINANCIALLY NOW THAN YOU WERE 12 MONTHS AGO?1 WORSE BETTER SAME Boomers B B HCMs Millennials B,H B,H Consumer Confidence2 % Top 3 Box (10pt Scale) 2009 2011 Boomers (n=6,056) 18% 25% Millennials are more likely to feel their economic situation has improved, and their consumer confidence leads older cohorts HCMs (n=3,433) 22% 32%B Millennials(n=930) 27% 37%B,H H Statistically significant vs. HCMs at 95% M Statistically significant vs. Millennials at 95% 1Source: The American Pantry Study, October 2011 2Source: Simmons Spring 2011 NHCS Adult Survey, ©Experian Simmons 2012

Whether it’s the economy and the future in general, Millennials are more optimistic than older cohorts Millennials are more optimistic about economic recovery… Boomers Gen X Millennials (n=1,555) (n=1,306) (n=1,004) Do you agree that the U.S. economy is currently in a recession? (% Agree) 92% 91% 89%B % that believe recession will last beyond 2012 80% 77% 66%B,X …and the future in general “For each item listed below, please indicate how optimistic you are about its future” (T2B%) 37% 41%B 53%B,X Your own future 18% 23%B 28%B,X The future of today’s children 26% 30%B 40%B,X The company you work at X Statistically significant vs. Gen X Primary Shoppers at 95% B Statistically significant vs. Boomer Primary Shoppers at 95% Source: The American Pantry Study, October 2011

For Millennial-headed HHs, housing, food and transportation costs are all rising sharply Average Annual HH Expenditure on Select Categories1 by Age of Householder MILLENNIALS 1Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2011

The prolonged recession has fundamentally changed shoppers’ perceptions – including those of Millennials Attitudes Towards the Economy % of shoppers that agree… Millennials Non-Millennials 91%N 93% Even if the economy improves, I will remain cautious and keep my spending at its current level The American economy has fundamentally changed…this is the “new normal” 79% 80% Source: The American Pantry Study, 2011 NSignificant difference vs. Non-Millennials at 95%

Resourcefulness and precision shopping have become the norm % of Millennial Primary shoppers that agree… 90% I have become a more resourceful person 87% I'm getting a lot more precise in what I buy I am looking closely at every spending category to see where we can save 85% “I watch my money more carefully and I am much more aware of ways to save.” - Shopper interviewee NSignificant difference vs. Non-Millennials at 95% Source: The American Pantry Study, 2010 & 2011

Millennials have become savvy shoppers early on in adulthood Millennials Non-Millennials % of shoppers that agree… I feel a lot smarter now about the way I shop versus a year ago 83%N 72% I can’t believe how wasteful I used to be in how I shopped 55%N 41% Even though I'm spending less on products now, it doesn't feel like I’m sacrificing much 75%N 68% Given that Millennials are coming of age during difficult economic times, these shopping attitudes and behaviors will likely last long into the future NSignificant difference vs. Non-Millennials at 95% Source: The American Pantry Study, 2011

Summary: Key Points to Remember Despite higher levels of un- and under-employment, Millennials are more optimistic towards the future than other cohorts Difficult economic conditions have put many Millennials on a non-traditional path into adulthood – living with parents, delayed marriage, putting off children more common Millennials have learned to become savvy, resourceful shoppers early on in their adulthood, which will likely have long-term implications on their behaviors Return to Table of Contents

Technology & Communication “I have to own the latest technology. It helps me stay connected to my friends and the things I love doing.” Return to Table of Contents

A cell phone is more than just a phone to Millennials - it is a tool for communication, information and entertainment Millennials Non-Millennials I like the idea of the cell phone moving beyond voicemail and text messaging capabilities % Agree (Top 2 Box) 54%N 34% % Using Cell/Wireless Phone Services in the Past 30 Days NSignificant difference vs. Non-Millennials at 95% Note: Data are reflective of Primary Household Shoppers only Source: Simmons Spring 2011 NHCS Adult Survey, ©Experian Simmons 2012

Millennials are far more engaged in social media than other cohorts % Claiming to Participate with Social Networking Provider on a “Fairly Regular Basis” Boomer Primary HH Shoppers (n=1,555) Gen X Primary HH Shoppers (n=1,306) Millennial Primary HH Shoppers (n=1,004) < < 60% 72%B 82%B,X < < 9% 14%B 23%B,X B Statistically significant vs. Boomer Primary Shoppers at 95% X Statistically significant vs. Gen X Primary Shoppers at 95% Source: The American Pantry Study, Deloitte and The Harrison Group, October 2011

And depth of social media engagement is also significantly higher for Millennials Attitudes Towards Social Networking % Agree (Top 2 Box) Boomer Primary Shoppers HCMs Millennial Primary Shoppers n=3,289 n=1,740 n=463 I TALK ABOUT THINGS I SEE ON SOCIAL NETWORKING WEBSITES IN FACE-TO-FACE CONVERSATIONS 20% 35% 47% B,H I PAY ATTENTION TO RATINGS AND REVIEWS POSTED ONLINE BY OTHER CONSUMERS 16% 24% 34% B,H I OFTEN CLICK ON LINKS OR ITEMS POSTED BY OTHER PEOPLE ON SOCIAL NETWORKING WEBSITES 16% 22% 31% B,H I OFTEN ACCESS SOCIAL NETWORKING WEBSITES FROM DIFFERENT DEVICES 13% 21% 33% B,H SOCIAL NETWORKING WEBSITES ARE A WAY FOR ME TO TELL PEOPLE ABOUT COMPANIES AND PRODUCTS I LIKE 10% 15% 21% B,H The opportunity for marketing via social media is greatest with Millennials H Statistically significant vs. HCMs at 95% B Statistically significant vs. Boomer Primary Shoppers at 95% Source: Simmons Spring 2011 NHCS Adult Survey 06-Month

Summary: Key Points to Remember Digital mobile is far more integrated into Millennials’ lives than other adult cohorts, particularly Boomers Millennials’ depth of engagement in social media is much higher than any other adult cohort Digital media – both mobile and social – provide important opportunities to engage with Millennial primary HH shoppers Return to Table of Contents

Environment “We have been educated on environmental issues, and generally care…we just don’t always act.” Return to Table of Contents

Compared to other shoppers, Millennials claim to have a stronger affinity for eco-friendly products… Attitudes Towards Eco-Friendly Products % Agree (Top 2 Box) Millennial Primary Shoppers Non-Millennial Primary Shoppers n=1,004 n=3,082 I don't think I should have to pay more for 'green' products 80%N 87% I try to buy environmental, or 'green' products, whenever I can 67%N 55% I’m more likely to buy products that come in environmentally responsible packaging 66%N 55% Millennials prefer to buy eco-friendly products…if they are priced right N Statistically significant vs. Non-Millennials at 95% Source: The American Pantry Study, October 2011

…but when it comes to taking individual actions, Millennials trail older cohorts Attitudes Towards Environment % Agree (Top 2 Box) Millennials Non-Millennials 67%N 71% PACKAGING FOR PRODUCTS SHOULD BE RECYCLED I MAKE A CONSCIOUS EFFORT TO RECYCLE PAPER, GLASS, CANS AND OTHER ITEMS 56%N 66% PEOPLE HAVE A RESPONSIBILITY TO USE RECYCLED PRODUCTS WHENEVER POSSIBLE 50%N 57% I’M WORRIED ABOUT POLLUTION &CONGESTION CAUSED BY CARS 44%N 48% I OFTEN CHOOSE METHODS OF TRANSPORTATION THAT ARE FRIENDLIER TO THE ENVIRONMENT 18%N 21% Though arguably the most educated generation on environmental issues, Millennials show a lower inclination to act N Statistically significant vs. Non-Millennials at 95% Source: Simmons Spring 2011 NHCS Adult Survey 12-month

However, a closer look reveals some dramatic attitudinal differences towards environment within Millennials themselves Attitudes Towards Environment % Agree (Top 2 Box) Millennials w/o Kids Millennials w/Kids Non-Millennials EACH OF US HAS A PERSONAL OBLIGATION TO DO WHAT WE CAN TO BE ENVIRONMENTALLY RESPONSIBLE 83%K 76%N 81% I WOULD BUY ECO-FRIENDLY PRODUCTS IF THEY WERE LESS EXPENSIVE 83%K,N 74% 71% COMPANIES SHOULD HELP CONSUMERS BECOME MORE ENVIRONMENTALLY RESPONSIBLE 80%K,N 64%N 69% I AM MORE LIKELY TO PURCHASE A PRODUCT OR SERVICE FROM A COMPANY THAT IS ECO-FRIENDLY 67%K,N 52%N 59% Attitudes towards the environment are significantly stronger inMillennials without Kids N Statistically significant vs. Non-Millennials at 95% K Statistically significant vs. Millennials w/Kids at 95% Source: Simmons Spring 2011 NHCS Adult Survey 12-month

Summary: Key Points to Remember Though arguably the most educated generation on environmental issues, adult Millennials are less inclined to act than other cohorts Among adult Millennials, those without kids have stronger opinions towards individual responsibility for the environment Return to Table of Contents

Brands “There is some sacrifice with the store brands we need to purchase. At some point it will be nice to go back.” Return to Table of Contents

Although private label use is higher among Millennial primary shoppers… Store Brands as % of Total Dollar Spend (All Measured Channels / Total UPC-Coded Items) Private label comprises a greater share of total dollar spend for Millennialsthan other cohorts Matures Boomers Gen X Millennials Source: Nielsen Homescan, Total U.S., 52 weeks ending 5/21/2011

…exploration of private label appears to be slowing among Millennials Millennial shoppers have experimented with store brands (to the extent they are interested) and defined which ones work and don’t work for them % of Millennial shoppers that agree… I feel I have figured out which store brands work for my family and which don’t 89% I have experimented and figured out which store brands are good and which are not so good 88% I have found several store brands that are just as good as national brands so I can save money without giving up anything 89% “I have tried different store brands. At this point, I know which ones my family will accept and which ones they won’t.” – Shopper interviewee Source: The American Pantry Study, 2011

Millennials generally show less enthusiasm for private label brands… % of shoppers that agree (Top 2 Box %) Millennials Non-Millennials It bothers me that I can’t afford to always buy the brands I’d like to 60%N 51% I often feel like I’m sacrificing when I purchase a store brand vs. a national brand 43%N 31% Millennials are showing a significantly higher level “private label remorse” compared to other shoppers N Statistically significant vs. Non-Millennials at 95% Source: The American Pantry Study, October 2011

…and place greater value on national brands than other shoppers % of shoppers that agree… Millennials Non-Millennials Name brand products give more value for the money (% Top 3 Box) 35%N 25% I believe that the brands I buy say a lot about who I am (% Top 2 Box) 47%N 37% I intend to buy more national brands when the economy improves (% Top 2 Box) 43%N 32% Private label brands that resonate with Millennials are those that can differentiate with unique packaging, flavors and/or quality N Statistically significant vs. Non-Millennials at 95% Source: The American Pantry Study, October 2011

Like other shoppers, Millennials are actively “re-evaluating” their relationships with brands 2010 2011 % of shoppers that agree… 73% 81%* Going through these economic times has caused me to realize which brands I really care about and which ones are less important to me Millennials 76% 80%* Pre-Recession Today Non-Millennials “Must Have” Brands “Must Have” Brands Everything Else Everything Else The gap between strong brands and “everything else” is growing wider *Statistically significant vs. 2010 at 95% Source: The American Pantry Study, 2010 & 2011

As Millennials mature, they are placing greater value on practical attributes of brands Favorite Brands Among Teens/Young Adults Key Attributes for Favorite Brands Age 12-22 Quality Affordability Authenticity Fun Excitement Style Age 23-29 Quality Affordability Authenticity Reliability Dependability Design/Ease-of-Use Source: TRU Study, 2010

Summary: Key Points to Remember The economy has driven shoppers to re-evaluate their relationships with brands, including Millennials Though Millennials allocate a slightly higher share of their total CPG spend to private label than other shoppers, they express a greater desire to switch back to national brands once the economy improves Adult Millennials are more likely than other cohorts to perceive national brands as a better value for the money - authenticity, reliaibility, dependability and design are all key attributes they desire Return to Table of Contents

Shopping Trip Planning “I’m doing more pre-trip planning than before – my computer and cell phone are helping me be more efficient.” Return to Table of Contents

To achieve shopping efficiency, planning time has increased - especially among Millennials Time spent planning shopping trips vs. year ago (all shoppers) 6% LESS time 37% MORE time Q: Thinking about the time you do spend planning and preparing for your grocery shopping trips, are you spending more or less time compared to a year ago? Source: The American Pantry Study, 2011

This increased preparation time has become a source of annoyance for Millennials Millennials Non-Millennials % of shoppers that agree… 53%Male 31%Male I find myself getting annoyed with how much time it takes to prepare to shop for household products 48%N 33% 45%Female 34%Female 59%Male 44%Male I consider shopping for food and household products a real chore 55%N 46% 47%Female 52%Female Q: Please use the scale below to indicate how much you agree or disagree with the following statements about yourself and shopping for food, beverages and HH products. (Scale: Agree Strongly, Agree Somewhat, Disagree Somewhat, Disagree Strongly) Source: The American Pantry Study,2011

Millennials are less frequent list makers, but are more likely than others to maintain them on a mobile device Millennials 80%N On Paper How do you typically create and manage your grocery shopping list? How often, if ever, do you make a shopping list before you shop for food, beverages or household products? (% Claiming All the Time) Non-Millennials 86% Boomers (n=1,555) Millennials 12%N Millennials 35%N (n=1,004) Non-Millennials 42% (n=3,082) Non- Millennials 5% On Smartphone (n=945) (n=2,912) N Statistically significant vs. Non-Millennials at 95% Source: The American Pantry Study, October 2011

Though coupon use continues to trend up for all, Millennials still trail other cohorts % Claiming to Use Coupons Weekly Coupon use is trending up for all cohorts, but remains lowest for Millennials (n=930) (n=3,433) (n=6,602) Source: Simmons Spring 2011 NHCS Adult Survey, ©Experian Simmons 2012

Cohorts differ in how they source their coupons % of Shoppers Claiming to Use Coupons from Source at Least Monthly FSI/Circular On-Pack/In-Store Magazine On-Line/E-Mail BOOMERS n=6,602 56% 34% 20% 15% HCMs n=3,433 52%B 35% 16%B 20%B MILLENNIALS n=930 43%B,H 33% 14%B 21%B For coupons, Millennialsskew towards digital and away from traditional (i.e. paper) sources B Statistically significant vs. Boomers at 95% H Statistically significant vs. HCMs at 95% Source: Simmons Spring 2011 NHCS Adult Survey, ©Experian Simmons 2012

Money saving strategies that take less preparation time are more likely to be utilized by Millennials % Rating Item as Essential or Very Important (T2B) Millennials Non-Millennials Total Male Female Total Male Female 61% 63% 52% 67% 58% 67% Grocery ‘shopper loyalty’ cards 48% 49% 44% 51% 41% 55% Coupons received in the store 47%N 53% 41% 51% 43% 59% Coupons received in the mail Coupons clipped from the newspaper 46%N 55% 41% 49% 47% 61% Mail and newspaper coupons are less important to Millennial Primary Shoppers; No significant differences between Millennials and Non-Millennialsfor loyalty cards or in-store/on-pack coupons Source: The American Pantry Study,2011

Across the board, Millennials are more enthusiastic towards using technology as a shopping aid As Millennials continue to come of age as household shoppers, it will be increasingly important to balance traditional and digital methods to engage older and younger shoppers Q: How interested are you in each of the following? N Significant difference vs. Non-Millennials at 95% Source: The American Pantry Study, 2011

Summary: Key Points to Remember Millennialsengage in fewer traditional pre-trip planning tactics (i.e. lists, circulars and couponing) than other shoppers, but have a stronger appetite for using digital tools (i.e. Internet, mobile devices) Millennials claim to be more annoyed with the amount of time it takes to plan their shopping trips and are in need of solutions that simplify this activity Millennials more likely to employ digital tools that make researching and planning easier for them Return to Table of Contents

Grocery & Food Shopping “Food shopping and meal preparation are still pretty new to me. I could use some help making good decisions, particularly when it comes to meals.” Return to Table of Contents

Millennials are relatively new to grocery shopping and enjoy it – but they are often rushed while doing it % of shoppers that agree… (Top 3 Box %) Millennials Non-Millennials 41%N 31% I’m always in a hurry while grocery shopping 58%N 47% I like shopping for groceries 65%N 58% I like to browse while grocery shopping Retailers than offer an environment that is both shopableand engaging will have an advantage with Millennials NSignificant difference vs. Non-Millennials at 95% Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Millennials are also new to meal preparation and are looking for help with meal-time solutions % of shoppers that agree… (Top 3 Box %) Millennials Non-Millennials Convenience in food is most important to me 49%N 38% It would help if stores provided meal-time solutions 49%N 31% I’m willing to pay more for products that simplify meal preparation 51%N 41% Convenient meal solutions/bundles fulfill an important need for Millennial HH shoppers Source The Landmark Shopper Study, ©2011 TNS Shopper360 N Significant difference vs. Non-Millennials at 95%

Millennials are more willing to indulge with foods, but they are also looking for healthier options % of shoppers that agree… (Top 2 Box %) Millennials Gen Xers Boomers I like to treat myself to foods not good for me 63%X,B 52%B 46% 43%B 40%B 36% I think all fast food is junk 18%X,B 15%B 13% I’m usually first to try a new health food 9%B 5% 5% I’m a vegetarian Millennials are seeking balance – treats and healthier foods are both opportunities with them X Significant difference vs. Gen X Primary Shoppers at 95% B Significant difference vs. Boomer Primary Shoppers at 95% Source: Simmons Spring 2011 NHCS Adult Survey, ©Experian Simmons 2012

As shoppers, Millennials are more open to trying new items and will respond to compelling merchandising % of shoppers that agree… (Top 3 Box %) Millennials Non-Millennials 63%N 52% I like to buy and try new foods & beverages When I see a new product on the shelf, I often buy it, just to see what it's like 42%N 31% I get bored buying the same brands, even if they are good 33%N 22% Manufacturers and retailers that can effectively merchandise and cross-merchandise in-store will fulfill Millennials’ need for discovery N Significant difference vs. Non-Millennials at 95% Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Summary: Key Points to Remember Millennialsare… Relatively new to shopping and meal preparation and are looking for help in making better, faster decisions More experimental than other cohorts and are more willing to look for new products, ideas and inspiration in the store More likely to value convenience in foods, and more willing to pay for products that simplify meal preparation Looking for a healthy balance in their diets – they acknowledge indulging in unhealthy foods, but are more likely to see fast foods as junk; healthier prepared foods are a big opportunity Return to Table of Contents

Channels & Spending “I don’t shop the same way as my parents – I like different retailers and prefer to go where everyday prices are low and the environment is inspiring.” Return to Table of Contents

Millennial households shop traditional retail channels less frequently than Non-Millennials Annual Trips & Spend per HH (UPC-Coded Items/All Channels) TOTAL Millennial HHs Millennial HHs w/o Kids Millennial HHs w/Kids Once Millennials have kids, the HH spending gap in traditional channels closes dramatically vs. Non-Millennials, but the gap in trip frequency remains large Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Millennials’ preferences for retailers differ greatly from older generations Annual Trips & Spend per Shopping HH (UPC-Coded Items/By Channel) TOTAL Millennial HHs Grocery, Drug, Club and Dollar less important Target & Walmart have higher relative importance to Millennials Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Mass Merchandisers resonate strongly with Millennials, especially Target Annual Trips & Spend per Shopping HH (UPC-Coded Items/By Channel) Millennial HHs w/o Kids Millennial HHs w/Kids Target on par vs. Non-Millennials; Other channels much less so Target & Walmart are key channels Trips and spend in A/O channels under-index vs. Non-Millennials Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Millennials are moving away from the traditional channels shopped by their parents “Traditional” Retail Channels Traditional Supers less relevant to Millennials Mass & Supercenters play bigger role “Non-Traditional” Retail Channels Millennials more likely to visit non-traditional channels regularly Source: The Landmark Shopper Study, ©2011 TNS Shopper360

As shoppers, Millennials want experiences, not commodities Their perception of traditional supermarkets… Their ideal supermarket would be… “Old-school” Sterile Warehouse-like Uninviting Crowded Unpleasant Refreshing Enticing Inspiring & upbeat Informative Healthier & fresher Sampling-friendly Millennials are drawn to retailers that offer branded experiences, not merely “houses of brands” Source: “Grocery’s Next Generation: How Millennials will Change Food Shopping”, WD Partners

Millennials are strongly social, and are less likely than other cohorts to shop “solo” Q: Who was with you on this trip to (RETAILER)? I was by myself 53% 77 index Spouse or other adult family member 29% 128 index Child/children 23% 243 index Other non-family member 6% 196 index Regardless of channel, Millennial primary shoppers are more likely to shop while accompanied by others

Compared to other shoppers, Millennials’ shopping trips are more likely to be motivated by self, and less by money % of Primary HH Shopper Trip Missions, by Cohort (All Major Channels) 1⁰ Motivation Shopping Mission FAMILY SELF Over-index for self-motivatedmissions TIME MONEY Under-index for money-motivatedmissions Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Target growing in importance most among Millennials – one-stop shopping convenience, EDLP and branded experience are draws % Indicating Channel/Retailer is Growing in Importance Millennials Non-Millennials Source: The American Pantry Study, 2011

Summary: Key Points to Remember Millennialsare… Less frequent shoppers of grocery, club, drug and dollar channels, spending less in these channels than other shoppers Drawn to the EDLP simplicity and one-stop convenience of Target and Walmart More attracted to retailers that can offer a “branded experience” that inspires them, and will shop non-traditional channels to get it Far more likely to be on self-focused missions (i.e. browsing, immediate consumption) and less likely to be on money-focused missions (bargain hunting, everyday savings) than other shoppers Return to Table of Contents

Millennials as Household Shoppers Needs, Attitudes and Behaviors in Key Retail Channels Return to Table of Contents

Millennials as Grocery Shoppers

Compared to other HHs, Millennials spend a smaller share of their total budget in the Grocery Channel Channel Preference - % of UPC-Coded $ by Channel Millennials w/o Kids Millennials w/Kids Non-Millennials Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Grocery Channel Shopping HouseholdsAverage HH Visit Frequency, Annual Spend and Basket Size Annual Trips Annual Spend Average Basket Total Millennials 45 $2,306 $42 Millennials w/o Kids 43 $1,900 $36 Millennials w/Kids 47 $2,642 $47 Non-Millennials 68 $3,131 $37 Highest among groups Lowest among groups Millennial HHs shop Grocery less frequently and spend less overall than Non-Millennial HHs, but their baskets are larger Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Compared to other shoppers, Millennials use fewer tactics when planning their grocery shopping trips Made List Checked Circular Brought Coupons % of Millennials’ Grocery Shopping Trips that Involved the Planning Activity 30% 86 index* 33% 80 index* 41% 87 index* Went Online 20% 125 index* Millennials do less pre-trip planning than other shoppers – online/digital is the only exception *Index vs. Non-Millennial primary HH shoppers Source: The Landmark Shopper Study, ©2011 TNS Shopper360

In the Grocery Channel, Household Stock-Up, Browsing and Speedy Fill-In are the top 3 missions for MILLENNIALS FAMILY SELF TIME MONEY Household Stock-Up Browsing Speedy Fill-In Bargain Hunting MILLENNIALS 18%N MILLENNIALS 18%N MILLENNIALS 16%N MILLENNIALS 12%N 1 3 2 ALL OTHERS 17% ALL OTHERS 14% ALL OTHERS 18% ALL OTHERS 18% Just-in-Time Meals Immediate Consumption Urgent Item Everyday Savings MILLENNIALS 8%N MILLENNIALS 9%N MILLENNIALS 9% MILLENNIALS 9% ALL OTHERS 9% ALL OTHERS 5% ALL OTHERS 10% ALL OTHERS 9% Browsing&Immediate Consumption significantly higher Bargain Hunting significantly lower Millennials vs. All Others: H Statistically significant vs. All Other primary shoppers (e.g. Non-Millennials) at 95% Millennial primary shopper trips: n=5,926 Non-Millennial primary shopper trips: n=38,969 Source: The Landmark Shopper Study, ©2011 TNS Shopper360

What drives Millennials to the Grocery Channel? WHY THEY CHOOSE THE RETAILER WHAT THEY WANT TO ACCOMPLISH Compared to other grocery shoppers, Millennials’ grocery trips are less driven by promotions or speed – and more about specific meals Note: Indices are vs. Non-Millennial Primary HH Shoppers N Statistically significant vs. Non-Millennials at 90% Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Millennials & Non-Millennials share the top 5 destination categories for Grocery, but there are differences Higher for Frozen Foods, Snack Foods and Cereal Breakfast Foods Lower for Dairy, In-Store Deli and In-Store Bakery Note: Indices are vs. Non-Millennial Primary HH Shoppers N Statistically significant vs. Non-Millennials at 95%

Millennials as Walmart Shoppers

Millennials direct a higher share of their annual budget to Walmart Channel Preference - % of UPC-Coded $ by Channel Millennials w/o Kids Millennials w/Kids Non-Millennials Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Walmart Shopping HouseholdsAverage HH Visit Frequency, Annual Spend and Basket Size Annual Trips Annual Spend Average Basket Total Millennials 19 $1,303 $62 Millennials w/o Kids 17 $968 $53 Millennials w/Kids 21 $1,550 $67 Non-Millennials 22 $1,296 $54 Highest among groups Lowest among groups Though Non-Millennials shop the most frequently, Millennials w/Kids have the highest overall spend and spend per trip Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Compared to other shoppers, Millennials use fewer tactics when planning their trips to Walmart Made List Brought Coupons % of Millennials’ Walmart Shopping Trips that Involved the Planning Activity 22% 81 index* Checked Circular 43% 86 index* 11% 92 index* Went Online 13% 118 index* Millennials do less pre-trip planning than other shoppers – online/digital is the only exception *Index vs. Non-Millennial primary HH shoppers Source: The Landmark Shopper Study, ©2011 TNS Shopper360

In Walmart, Everyday Savings, HH Stock-Up, Speedy Fill-In and Browsing are the top missions for MILLENNIALS FAMILY SELF TIME MONEY Household Stock-Up Browsing Speedy Fill-In Bargain Hunting MILLENNIALS 18% MILLENNIALS 17%N MILLENNIALS 18% MILLENNIALS 2% 2 3 4 ALL OTHERS 20% ALL OTHERS 12% ALL OTHERS 17% ALL OTHERS 2% Just-in-Time Meals Immediate Consumption Urgent Item Everyday Savings MILLENNIALS 7% MILLENNIALS 6%N MILLENNIALS 10% MILLENNIALS 21%N 1 ALL OTHERS 9% ALL OTHERS 4% ALL OTHERS 11% ALL OTHERS 26% Browsing&Immediate Consumption significantly higher Everyday Savings significantly lower Millennials vs. All Others: H Statistically significant vs. All Other primary shoppers (e.g. Non-Millennials) at 95% Millennial primary shopper trips: n=1,935 Non-Millennial primary shopper trips: n=10,051 Source: The Landmark Shopper Study, ©2011 TNS Shopper360

What drives Millennials to Walmart? WHY THEY CHOOSE WALMART WHAT THEY WANT TO ACCOMPLISH Millennials shop Walmart for more than just EDLP – variety, caring for family, and meals are among other reasons Note: Indices are vs. Non-Millennial Primary HH Shoppers N Statistically significant vs. Non-Millennials at 95% Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Consumables top destination items for Millennials at Walmart, but NARTD Beverages under-index Higher for Frozen Foods, Personal Care, Home Care and Baby Food/Care Lower for Dairy, Produce, NARTD Beverages and Pet Food/Care Note: Indices are vs. Non-Millennial Primary HH Shoppers N Statistically significant vs. Non-Millennials at 95% n Statistically significant vs. Non-Millennials at 80% Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Millennials as Target Shoppers

Millennialsdedicate a substantially larger share of their total spend to Target compared to other shoppers Channel Preference - % of UPC-Coded $ by Channel Millennials w/o Kids Millennials w/Kids Non-Millennials Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Target Shopping HouseholdsAverage HH Visit Frequency, Annual Spend and Basket Size Annual Trips Annual Spend Average Basket Total Millennials 12 $688 $52 Millennials w/o Kids 10 $531 $46 Millennials w/Kids 13 $808 $56 Non-Millennials 10 $564 $49 Highest among groups Lowest among groups Millennials with Kids are tremendously valuable to Target, leading the way in frequency, basket size and total annual spend Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Millennials use fewer planning tactics than other shoppers before their trips to Target Made List Brought Coupons % of Millennials’ Target Shopping Trips that Involved the Planning Activity 27% 85 index* Checked Circular 32% 94 index* 23% 74 index* Went Online 21% 128 index* Millennials are… Less likely to check the circular or bring coupons More likely to go online before shopping Target *Index vs. Non-Millennial primary HH shoppers Source: The Landmark Shopper Study, ©2011 TNS Shopper360

In Target, Browsing, Speedy Fill-In and Urgent Item are the top 3 missions for MILLENNIALS FAMILY SELF TIME MONEY Household Stock-Up Browsing Speedy Fill-In Bargain Hunting MILLENNIALS 7%N MILLENNIALS 33%N MILLENNIALS 17% MILLENNIALS 7%N 2 1 ALL OTHERS 4% ALL OTHERS 26% ALL OTHERS 18% ALL OTHERS 12% Just-in-Time Meals Immediate Consumption Urgent Item Everyday Savings MILLENNIALS 6% MILLENNIALS 6%N MILLENNIALS 15% MILLENNIALS 10%N 4 3 ALL OTHERS 7% ALL OTHERS 2% ALL OTHERS 16% ALL OTHERS 14% Browsing, Imm. Consumption andHH Stock-Up significantly higher Everyday Savings and Bargain Hunting significantly lower Millennials vs. All Others: H Statistically significant vs. All Other primary shoppers (e.g. Non-Millennials) at 95% Millennial primary shopper trips: n=1,935 Non-Millennial primary shopper trips: n=10,051 Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Target means much more than EDLP to Millennial HH Shoppers WHY THEY CHOOSE TARGET WHAT THEY WANT TO ACCOMPLISH Target fulfills a broad set of functional and emotional needs for Millennials that go way beyond price Note: Indices are vs. Non-Millennial Primary HH Shoppers N Statistically significant vs. Non-Millennials at 90% Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Non-Consumables dominate as destination items for Millennials at Target, while NARTD beverages rank 9th Higher for Frozen Foods, and Baby Food/Care Lower for Dairy, Produce, NARTD Beverages and Pet Food/Care Note: Indices are vs. Non-Millennial Primary HH Shoppers N Statistically significant vs. Non-Millennials at 90% Source: The Landmark Shopper Study, ©2011 TNS Shopper360

Summary: Key Points to Remember Compared to other households, Millennials do far less shopping in traditional grocery, and more in Walmart, Target, and specialty grocery Millennials are more likely than other shoppers to be seeking ideas and inspiration when they shop large format retailers, as evidenced by their significantly higher mix of Browsing missions on trips to Grocery, Walmart and Target Millennials more likely than other shoppers to be seeking immediate gratification on trips – Millennials over-index in Grocery, Walmart and Target for the Immediate Consumption mission Millennials are less engaged in traditional pre-trip tactics, such as ad-circulars and coupons, and show a lower sensitivity to retailer promotions Non-Alcoholic RTD beverages under-index as destination items among Millennials in Grocery, Walmart and Target, which may reflect their lower sensitivity to retailer promotions and underscore the importance of engaging in-store merchandising to reach these shoppers Return to Table of Contents

Millennialsas Beverage Consumers and Purchasers Return to Table of Contents

Among adults, Millennials are the heaviest consumers of commercial Non-Alcoholic RTD Beverages Per Capita Consumption, by Cohort Total Commercial Non-Alcoholic RTD Beverages Young Adult Millennialsare the heaviest consumers of commercial NARTD beverages After age 18, consumption begins to trend down (Ages 12-69) (34-46) (47-65) (66-69) (18-24) (25-33) Source: CBL 2011

Adult Millennials are also the heaviest SSD consumers of any cohort Per Capita Beverage Consumption, by Age Group (8oz. Servings) ADULT MILLENNIALS Adult Millennials have the highest SSD consumption of any cohort – as they move beyond age 25, they begin to shift to diet SSDs (Age 12-69) (34-46) (47-65) (18-24) (25-33) Source: CBL 2011

RTD Tea and Juice/Drink consumption is highest among Millennials 18-24, but declines thereafter Per Capita Beverage Consumption, by Age Group (8oz. Servings) ADULT MILLENNIALS (Age 12-69) (34-46) (47-65) Millennials consume large amounts of 100% Juice relative to other adults; for Younger Adult Millennials, RTD Teas and Juice Drinks/Adesare also big (18-24) (25-33) Source: CBL 2011

As Consumers, Adult Millennials are vital to Sports and Energy Drink categories Per Capita Beverage Consumption, by Age Group (8oz. Servings) ADULT MILLENNIALS Young Adult and Established Adult Millennialsover-index vs. Total Pop. for Sports Drinks (154 / 115) and Energy Drinks (178 / 190) (Age 12-69) (34-46) (47-65) (18-24) (25-33) Source: CBL 2011

As households mature, beverage buying rates rise dramatically - across virtually every category… Beverage Segments – Eq. Volume Buying Rate (Cases) Presence of Kids is a major driver for HH purchasing Millennial HHs w/o Kids Millennial HHs w/Kids Non-Millennial HHs Enhanced Water and Energy are exceptions to this pattern Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

…the same is generally true for beverage purchase frequency, although active lifestyle beverages divert from this pattern Beverage Segments – Annual HH Purchase Frequency Opportunity for Enh. Water and Sports Drinks Millennial HHs w/o Kids Millennial HHs w/Kids Non-Millennial HHs Enhanced Water and Sports Drink frequency drops among Millennials w/Kids, but picks up with Non-Millennials Energy frequency declines with Non-Millennials Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Beverage purchasing in Millennial Households with Kids is more diverse, with a smaller share going to SSDs and Base Water Beverage Segment Preferences - % Eq. Volume Share Millennial HHs w/o Kids Millennial HHs w/Kids Non-Millennial HHs Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Millennials purchase less of their beverage volume on deal, which is a reflection of their preference for EDLP retailers Beverage Segments – % Eq. Volume on Deal Highest % bought on deal for category Lowest % bought on deal for category Millennial HHs w/o Kids Millennial HHs w/Kids Non-Millennial HHs Millennialsmore deal-driven for ALB categories Non-Millennials for SSDs, Chilled Juice/Drinks and Base Water Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Summary: Key Points to Remember Focusing on Millennials as consumersandhouseholders is key… Millennials have the highest per capita consumption of NARTD beverages, including SSDs, of any adult cohort As households grow and mature, beverage purchasing goes up – though Millennial HHs buy a lower volume of NARTD beverages than older HHs, volume in Millennial HHs with Kids exceeds that of Millennial HHs w/o Kids Millennial HHs purchase less of their NARTD volume on deal than Non-Millennial HHs, which is likely due to their lower use of coupons and circulars, as well as their preference for EDLP retailers As children in Millennial HHs mature, it is likely that NARTD purchase volume will also increase in these HHs Return to Table of Contents

Buying Behavior:Sparkling Soft Drinks Millennial HH Buying Behaviors Sparkling Soft Drinks Return to Table of Contents

Tomorrow’s consumers at risk? PBNA SSDs have volume share lead in Millennial HHs with Kids SSD Manufacturers – Eq. Volume (Cases in MM) Though CCNA SSDs have slight edge in Millennial HHs without Kids, they trail PBNA among Millennial HHs with Kids Millennial HHs w/o Kids Millennial HHs w/Kids Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Among Millennial Households, those that buy PBNA SSDs do so at a higher rate than those that purchase CCNA SSDs SSD Manufacturers – Eq. Volume Buying Rate (Eq. Cases) CCNA has an opportunity to drive higher SSD portfolio volume among the Millennial HHs that already buy its brands 81 Index vs. PBNA 92 Index vs. PBNA Millennial HHs w/o Kids Millennial HHs w/Kids Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Higher buying rates in Millennial PBNA households are being driven largely by higher purchase frequency SSD Manufacturers – Annual Purchase Frequency 85 Index vs. PBNA 94 Index vs. PBNA Millennials HHs w/Kids purchase SSDs 21% more frequently than Millennials w/o Kids – however, they purchase CCNA SSDs only 4% more frequently Millennial HHs w/o Kids Millennial HHs w/Kids Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Millennials are most loyal to PBNA Sparkling Soft Drinks, while Non-Millennials are most loyal to CCNA SSD Manufacturers – % Loyalty (Share of Eq. Vol. Requirements) CCNA Advantage Parity PBNA Advantage Millennials HHs w/Kids purchase SSDs 21% more frequently than Millennials w/o Kids – however, they purchase CCNA SSDs only 4% more frequently Millennial HHs w/o Kids Millennial HHs w/Kids Non-Millennial HHs Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Penetration of non-colas and newer low/no calorie SSD brands is higher among Millennial HHs with Kids than Non-Millennials SSD Brands – % SSD Buyers Purchasing Index: Millennials vs. Non-Millennials Millennials w/Kids Non-Millennials Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012

However, Millennial HHs with Kids are lighter buyers than Non-Millennial HHs across virtually all major SSD brands SSD Brands – Eq. Volume Buying Rate (Cases) Index: Millennials vs. Non-Millennials Millennials w/Kids Non-Millennials 3 of top 4 buying rates are for PBNA brands Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

Millennial HHs with Kids show less loyalty to the Coca-Cola Trademark than Non-Millennial HHs SSD Brands – % Loyalty (Eq. Volume Share of Requirements) Index: Millennials vs. Non-Millennials Millennials w/Kids Non-Millennials Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz

For SSD purchasing, Mass and Supercenters play a more prominent role for Millennials than Non-Millennials Channel Preference - % of Eq Volume by Channel Grocery channel still the primary source of SSD purchases across cohorts Millennials w/o Kids Millennials w/Kids Non-Millennials Source: Nielsen Homescan Panel | Total US All Outlets | 52 weeks ending 03/31/2012

Millennials with Kids purchase the highest proportion (53%) of their SSD volume on largeor extra large trips % SSD Eq. Volume Purchased, by Total Trip Spend 44% 45% 53% Millennials w/o Kids Millennials w/Kids Non-Millennials Source:Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Based Shopper Index (Trips)

Bringing CCNA SSD purchase frequency among Millennial HHs to PBNA levels is a 14.5 million eq. case opportunity Sparkling Soft Drink Sales Opportunity: Growing Purchase Frequency What if Millennials averaged the same # of trips to buy CCNA SSD as PBNA SSD? Source: Nielsen Homescan Panel | 52 weeks ending 03/31/2012 | Vol. Eq.: 1 Unit = 192oz Opportunity calculation should be used for estimation purposes only.

Summary: Key Points to Remember Winning Millennial HHs, particularly those with Kids, is key for the future of our SSD business... Millennial HHs with Kids purchase substantially more SSD volume annually than Millennial HHs without Kids and this gap will grow as their HHs mature Millennial HHs with Kids show lower loyalty* for the Coca-Cola Trademark than Non-Millennials, further illustrating the gap that exists PBNA currently has advantage among Millennial HHs with Kids – Among buying HHs, PBNA SSDs have the highest buying rate, frequency and loyalty* metrics among key manufacturers Improving CCNA SSD purchase frequency among Millennial HHs to levels attained by PBNA projects to a 14.5MM Eq. Case opportunity Return to Table of Contents *Loyalty = Eq. Share of Category Volume Requirements

Acknowledgements & Key Contacts Return to Table of Contents

Acknowledgements Special thanks to the following individuals for their partnership and valued contributions to this work: Nielsen: Chris Destino, Michael McLoughlin K&I Trends: Bonny Carr

Contact Information For more information about the material contained in this document, please contact: Daren Sorenson CCNA Knowledge & Insights Email: dsorenson@coca-cola.com Phone: (404) 676-0968 Additional information on Consumer Trends, Shopper and Foodservice Guest Insights can be found on the CCNA K&I Sharepoint site by clicking the K&I Logo belowwhile in presentation mode:

Appendix: Additional Data and Reference Materials Return to Table of Contents

Data/Information Sources Used in this Analysis The American Pantry Study, October 2011 Nielsen Household Panel, 2011-2012 Consumer Beverage Landscape Study (CBL), 2011 The Landmark Shopper Study, ©2011 TNS Shopper360 Simmons Spring 2011 NHCS Adult Survey, ©Experian Simmons 2012 “Grocery’s Next Generation: How Millennials will Change Food Shopping”, WD Partners Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, September, 2011 “Consumer Expenditures in 2010” - U.S. Bureau of Labor Statistics, August 2012 TRU Study, 2010 Pew Research Center, March 2011 U.S. Census Bureau, 2010

Shopper Trip Missions:High-Level Overviews

FAMILY missions “I buy what we need to have on hand at home, and what I think will please my family.” These shoppers want to buy everything they need to have on hand. These shoppers are considering the needs of their family first and foremost and are not in bargain hunting mode. Though foods & beverages are a major focus for these trips, these shoppers are not shopping with a specific meal in mind. Store choice is often based on routine, familiarity, comfort and selection so they can purchase everything in one trip. Needs & Goals: Buy everything needed to have on hand at home to keep the family happy. Minimize need for additional fill-in trips. Satisfy family/household needs while staying within budget. Not in browsing mode nor looking for huge savings. Key Channels:Grocery, Club & Supercenter Typical Basket Size: Very Large Pre Trip Planning: High Household Stock-Up “On the way home, I need to pick up something to make for dinner tonight.” These shoppers are planning to prepare a meal & need to obtain items to get an imminent meal on the table. These trips often occur just before meal time. These shoppers are open to new foods & meal ideas, but want to get in and out of the store quickly - and do not have much time to browse, stock up or look for bargains during these trips. Needs & Goals: Pick up Items for specific meal Get in & out of the store as quickly as possible Satisfy needs & wants of family Make preparing a meal easier Key Channels:Grocery, Natural/Health/Organic & Ethnic Typical Basket Size: Small Pre-Trip Planning: Low Just-in-Time Meals Source: The Landmark Shopper Study, TNS Shopper360

SELF missions “Sometimes I like to look for new, interesting or special products and ideas.” Browsing trips are meant to be enjoyable. Shoppers on these trips like to discover items that they or family/friends will like, and enjoy the process of looking for these items. During these trips, shoppers may be seeking novelty, getting a treat for themselves, buying a gift or special occasion item, or be simply out to have a good time. They’re not in a hurry and aren’t really looking to save money. Needs & Goals: Find new and unique products to try/buy Enjoy the shopping experience Not time-pressed nor looking for huge savings Key Channels:Mass, Dollar, Natural/Health/Organic and Club. It is also a relevant mission for Convenience Retail and Grocery Typical Basket Size: Medium Pre Trip Planning: Low Browsing “I’m hungry, I’m thirsty, I need a nicotine fix.” Immediate Consumption trips are made to satisfy an immediate hunger, thirst or craving. This need often extends beyond the physical to a desire for a treat or a quick pick-me-up. On these trips, the shopper and consumer are one in the same. Needs & Goals: Convenient location Saving time – getting in/out quickly Satisfying immediate hunger, thirst or craving Key Channels:Convenience Retail is the outlet of choice. Ethnic & Drug stores also index high for this mission Typical Basket Size: Low Pre Trip Planning: Low Immediate Consumption Source: The Landmark Shopper Study, TNS Shopper360

TIME missions “I’m not in the mood for Grocery shopping, so I’m going to a store that’s close and hassle-free as possible.” Speedy Fill-In trips are meant to replenish household items as quickly and as painlessly as possible. Perishables and NARTD beverages are common destination items for this mission. These trips are often a bridge between larger stock-up trips. Needs & Goals: Getting in/out of store as quickly as possible Shopping for a few items (usually staple items) household has run out of Key Channels:Grocery, Dollar, Supercenters and Mass. Typical Basket Size: Small to Medium Pre Trip Planning: Moderate Speedy Fill-In “I need something right now, and I’m going to the store where I can get it ASAP.” These shoppers have a need to buy something for themselves or another household member as soon as possible. These trips may be unexpected and, therefore, are not about routine replenishment or stocking up of items. These missions have the least planning involved and show low price sensitivity. Needs & Goals: Getting to store quickly Quickly finding and buying items needed immediately Saving money not an important consideration Key Channels: Drug and Convenience Retail are the top channels for this mission, with Mass and Dollar also relevant Typical Basket Size: Small Pre Trip Planning: Low Urgent Item Source: The Landmark Shopper Study, TNS Shopper360

MONEY missions “I hunt for the best deals and feel like I’ve accomplished something when I find the rock-bottom price.” Shoppers on Bargain Hunting trips are out to find the lowest prices and best deals on products. These trips have the highest level of pre-trip planning as shoppers research bargains before making their trip. These shoppers will often stock up on bargains once they find them in the store and may even visit more than one store on an excursion to take advantage of savings. Needs & Goals: Getting the best deals possible Saving time not a factor Key Channels:Grocery and Drug. Typical Basket Size: Medium Pre Trip Planning: Very High Bargain Hunting “I make sure that I’m saving money by going to the store with the lowest everyday prices.” Everyday Savings shoppers are seeking to replenish a variety of items and want to save as much money as possible while accomplishing this task. They try to stock up to reduce the need for future fill-in trips. However, because their spending ability may be limited, staying within budget is often a higher priority than hunting down specific bargain items. Therefore, these trips are more likely to be made to retailers with a strong price/value positioning. Needs & Goals: Saving as much money as possible at retailer known for EDLP Feeling like a “smart” shopper Replenishing items household is low on/out of (grocery and/or non-grocery) Satisfy family/household needs while staying within budget Key Channels:Supercenters (Walmart), Club, Mass, Dollar Typical Basket Size: Large Pre Trip Planning: High Everyday Savings Source: The Landmark Shopper Study, TNS Shopper360

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Millennials as the Primary Household Shopper