Copyright 2020 Good Food Institute - PDF document

1 Copyright 2020 Good Food Institute. All
Copyright 2020 Good Food Institute. All rights reserved. Plant - Based Food Retail Market Overview Presented by: Caroline Bushnell & Kyle Gaan Presenters for today’s webinar gfi.org | Page 2 Caroline Bushnell Associate Director, Corporate Engagement carolineb@gfi.org Kyle Gaan Research Analyst kyleg@gfi.org The Good Food Institute Accelerating the shift to a sustainable, healthy, and just food system through three key areas of work: We act as a force

2 multiplier, bringing the expertise of o
multiplier, bringing the expertise of our departments to the rest of the world. Science and Technology Advancing and open - sourcing the foundational science of plant - based and cultivated meat Corporate Engagement Consulting with the world’s biggest food companies to help them capitalize on opportunities in the plant - based market Policy Advocating for fair regulation of plant - based and cultivated meat and lobbying for governmental investmen

3 t in sustainable protein R&D UNITED STA
t in sustainable protein R&D UNITED STATES BRAZIL INDIA ISRAEL EUROPE ASIA PACIFIC 90+ staff in 6 countries GFI officially earned GuideStar’s 2019 Platinum Seal of Transparency - obtained by less than 1% of nonprofits, reflecting our commitment to maximum impact, efficacy, and transparency. How will we feed 10 billion people by 2050? Sustainably Efficiently Safely gfi.org | Page 4 The solution? Make meat a better way gfi.org | Page 5 CULTIVATED MEAT F

4 ERMENTATION PLANT - BASED PROTEINS GFI
ERMENTATION PLANT - BASED PROTEINS GFI services • Global & regional market overviews • Syndicated retail sales data • Industry mapping • Primary consumer research • Consumer trends and insights • Innovation guidance • Menu and merchandising strategy • Product marketing & positioning • Plant - based & cultivated technology • Recombinant protein & synthetic biology • Technical plan or research plan review • Technical insights and exp

5 loration • Research grant program •
loration • Research grant program • Funding & investment opportunities Technical Expertise & Guidance Marketing & Strategy U.S. plant - based market overview Plant - based market overview gfi.org | Page 8 Only products that are plant - based substitutes are included in this data. Inherently plant - based foods, such as chickpeas and kale, are not included. There are 7 high - level categories: Tofu and tempeh Plant - based meat Plant - based milk Other

6 plant - based dairy Plant - based eggs
plant - based dairy Plant - based eggs Plant - based meals Plant - based condiments and dressings “Other plant - based dairy” includes: • Cheese • Yogurt • Ice cream and frozen novelty • Butter • Creamers • Ready - to - drink beverages • Dairy spreads, dips, sour cream, and sauces SPINS data covers the Natural, Specialty Gourmet, and MULO channels gfi.org | Page 9 Natural Specialty Gourmet MULO • Full - format stores with $2 million+

7 in annual sales and at least 50%+ of s
in annual sales and at least 50%+ of sales from natural/organic products • Includes co - ops, associations, independents, large regional chains (excludes Whole Foods & Trader Joes) • Examples: Sprouts, Erewhon , Earth Fare • Full - format supermarkets with more than $2 million in annual sales • SPINS - defined specialty items comprise at least 25% of overall volume • High - end, experiential stores featuring full - service and fresh

8 departments such as prepared foods, bu
departments such as prepared foods, butchers, and on - site bakeries • Examples: Gelson’s , Heinen’s, Busch’s • The Conventional Multi Outlet Channel is comprised of over 104,000 retail locations spanning Grocery, Drug, Mass, Dollar, Military, and Club • Includes 250+ corporate totals and banners • SPINSscan Conventional provides reporting on Conventional Food, Drug, Mass and Multi Outlet Channels • Examples: Publix, Walmart, Kr

9 oger, Target $3.9b $4.5b $5.0b $0b $1b $
oger, Target $3.9b $4.5b $5.0b $0b $1b $2b $3b $4b $5b $6b 2017 2018 2019 Dollar sales U.S. retail sales of plant - based food are worth $5 billion gfi.org | Page 10 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 Total U.S. plant - based food market +15% +11% 11% 2% 0% 3% 6% 9% 12% 15% Total plant-based food market Total food market $ % chg YA Plant - ba

10 sed foods grew 5 times faster than total
sed foods grew 5 times faster than total food sales over the past year gfi.org | Page 11 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 Total food and plant - based food markets comparison: dollar sales growth 2019 5X $2.0b $1.4b $939m $377m $128m $64m $10m -12% 0% 12% 24% 36% 48% -$0.6b $0.0b $0.6b $1.2b $1.8b $2.4b Plant-based milk Other plant- based d

11 airy Plant-based meat Plant-based meals
airy Plant-based meat Plant-based meals Tofu and tempeh Plant-based condiments and dressings Plant-based eggs $ % chg YA Dollar sales Dollar sales $ % chg YA Plant - based milk is the most developed category at $2 billion gfi.org | Page 12 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Total U.S. plant - based food dollar sales and dollar sales growth by

12 category 2019 192% 192% 34% 31% 18% 18%
category 2019 192% 192% 34% 31% 18% 18% 8% 6% 5% - 10% 6% - 1% 3% 1% 3% 2% 0.1% -40% 0% 40% 80% 120% 160% 200% Eggs Creamer Yogurt Meat Cheese Butter Ice cream and frozen novelty Milk $ % chg YA Plant-based Animal-based Plant - based food sales growth outperforms animal - based food sales growth across key categories gfi.org | Page 13 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52

13 weeks ending 12 - 29 - 2019 Animal - bas
weeks ending 12 - 29 - 2019 Animal - based and plant - based product comparison: dollar sales growth 2019 228% 93% 95% 38% 51% 15% 34% 14% 6% 11% - 6% 5% 2% 5% 3% - 4% -50% 0% 50% 100% 150% 200% 250% Eggs Creamer Yogurt Meat Cheese Butter Ice cream and frozen novelty Milk $ % chg 2YA Plant-based Animal-based The two year sales growth comparison shows a clear trend towards plant - based products gfi.org | Page 14 Source: SPINSscan Natural and Specialty Gou

14 rmet (proprietary), SPINSscan Conventio
rmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 Animal - based and plant - based product comparison: two - year dollar sales growth 2019 14% 6% 5% 4% 3% 1% 1% 0.2% 0% 4% 8% 12% 16% Milk Butter Creamer Yogurt Ice cream and frozen novelty Meat* Cheese Eggs % share Plant - based milk has the greatest share of total market; other dairy categories are gaining share gfi.org | Page 15 Plant - based share

15 by category 2019 Note: SPINS does not re
by category 2019 Note: SPINS does not report non - UPC meat counter sales. To account for this, the plant - based meat total retail share calculation uses the $95 billion total meat market size reported by Nielsen, as this number includes both retail packaged meat sales and non - UPC meat counter sales Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019; Nielse

16 n (2019), The F Word: Flexitarian Is No
n (2019), The F Word: Flexitarian Is Not a Curse to the Meat Industry 14% 2% 1% 0% 3% 6% 9% 12% 15% Plant-based milk: share of retail milk Plant-based meat: share of retail packaged meat Plant-based meat: share of total retail meat % share There is a $12 billion opportunity for plant - based meat to reach market share parity with plant - based milk gfi.org | Page 16 Note: SPINS does not report non - UPC meat counter sales. To account for this, the plant -

17 based meat total retail share calculati
based meat total retail share calculation uses the $95 billion total meat market size reported by Nielsen, as this number includes both retail packaged meat sales and non - UPC meat counter sales Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019; Nielsen (2019), The F Word: Flexitarian Is Not a Curse to the Meat Industry Plant - based milk and meat shares o

18 f total categories 2019 $12 billion opp
f total categories 2019 $12 billion opportunity 1% 41% 18% 34% 22% 30% 8% 17% 2% 20% 7% 11% 6% 6% 3% 2% 0.4% 13% 5% 5% 3% 2% 1% 1% 0.1% 0% 10% 20% 30% 40% 50% Milk Butter Creamer Yogurt Ice cream and frozen novelty Meat* Cheese Eggs % share Natural Specialty Gourmet MULO Plant - based foods have the largest share of their respective categories in the Natural channel gfi.org | Page 17 Note: SPINS does not report non - UPC meat counter sales. To account for

19 this, the plant - based meat total reta
this, the plant - based meat total retail share calculation uses the $95 billion total meat market size reported by Nielsen, as this number includes both retail packaged meat sales and non - UPC meat counter sales Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019; Nielsen (2019), The F Word: Flexitarian Is Not a Curse to the Meat Industry Plant - based shar

20 e by category and channel 2019 27k 25k 1
e by category and channel 2019 27k 25k 17k 16k 12k 7k 7k 6k 5k 4k 3k 2k 1k 0k 6k 12k 18k 24k 30k TDP Plant - based milk has the highest distribution, with room for growth across categories gfi.org | Page 18 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Total distribution points by plant - based category 2019 Milk Ice cream and frozen novelty Yogurt Che

21 ese Condiments, dressings, and mayo Bu
ese Condiments, dressings, and mayo Butter Eggs Meat Meals Creamer RTD Beverages Tofu and tempeh Dairy spreads, dips, sour cream, and sauces Plant - based products are sold at a premium when compared to their animal - based counterparts gfi.org | Page 19 Note: Animal - based meat average price calculated using Nielsen August 2018 retail and counter sales data Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi

22 Outlet (powered by IRI), 52 weeks ending
Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 $2.05 $3.25 $3.81 $3.94 $4.52 $4.83 $4.85 $6.94 $1.77 $2.79 $3.29 $3.78 $3.88 $3.33 $3.66 $2.44 $0 $2 $4 $6 $8 Yogurt Milk Creamer Butter Meat Cheese Ice cream and frozen novelty Eggs Avg retail price Plant-based Animal-based Animal - based and plant - based product comparison: average retail price 2019 29% 29% 29% 26% 26% 24% 20% 19% 37% 29% 33% 14% 32% 31% 20% 33% 0% 10% 20% 30% 40% Ice cream and froz

23 en novelty Yogurt Eggs Milk Meat Cheese
en novelty Yogurt Eggs Milk Meat Cheese Creamer Butter % $ sales on promo Plant-based Animal-based Plant - based milk is the only category sold on promotion at a higher rate than animal - based categories gfi.org | Page 20 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Percentage of dollar sales on promotion by plant - based category 2019 Purchasing dyn

24 amics 40% 13% 41% 14% 0% 10% 20% 30% 40%
amics 40% 13% 41% 14% 0% 10% 20% 30% 40% 50% Plant-based milk Plant-based meat Household penetration Year ending October 2018 Year ending October 2019 Year ending November 2018 Year ending November 2019 Household penetration of plant - based milk and plant - based meat stands at 41% and 14%, respectively gfi.org | Page 22 Source: IRI panel, total store view, all outlets, 52 weeks ending 12 - 01 - 2019; The Food Industry Association & IRI, “Understandin g

25 the Plant - Based Consumer” (January
the Plant - Based Consumer” (January 2020) - IRI panel, all outlets, 52 weeks ending 11 - 03 - 19, NBD aligned Household penetration of plant - based milk and plant - based meat Many plant - based categories have room to grow in terms of household penetration gfi.org | Page 23 Source: The Food Industry Association & IRI, “Understanding the Plant - Based Consumer” (January 2020) - IRI panel, all outlets, 5 2 weeks ending 11 - 03 - 19, NBD aligned

26 38.9% 14.0% 10.3% 9.7% 8.7% 7.6% 6.7% 2
38.9% 14.0% 10.3% 9.7% 8.7% 7.6% 6.7% 2.9% 0% 10% 20% 30% 40% 50% Refrigerated milk Meat Shelf-stable milk Meals Yogurt Creamer Ice cream Cheese Household penetration Household penetration of plant - based products 2019 % chg YA 5.1% 8.5% - 7.2% 11.5% 40.3% 18.8% - 10.7% 7.4% The majority of households are purchasing refrigerated plant - based milk and plant - based meat 2 or more times gfi.org | Page 24 75.6% 60.1% 51.6% 47.7% 49.7% 59.3% 48.0% 54.9% 24

27 .4% 39.9% 48.4% 52.3% 50.3% 40.7% 52.0%
.4% 39.9% 48.4% 52.3% 50.3% 40.7% 52.0% 45.1% 0% 20% 40% 60% 80% 100% Refrigerated milk Meat Shelf-stable milk Meals Yogurt Creamer Ice cream Cheese Household penetration Share of households buying 2x+ Share of households buying 1x Household penetration of plant - based products by 1x and 2x buyers 2019 Source: The Food Industry Association & IRI, “Understanding the Plant - Based Consumer” (January 2020) - IRI panel, all outlets, 5 2 weeks ending 11 - 0

28 3 - 19, NBD aligned Plant - based meat
3 - 19, NBD aligned Plant - based meat and refrigerated plant - based milk have the highest dollar sales per buyer gfi.org | Page 25 $45.9 $36.5 $28.4 $22.9 $21.2 $19.5 $18.2 $17.3 $0 $10 $20 $30 $40 $50 Meat Refrigerated milk Cheese Creamer Ice cream Yogurt Meals Shelf-stable milk Dollar sales per buyer Dollar sales per buyer by plant - based product 2019 Source: The Food Industry Association & IRI, “Understanding the Plant - Based Consumer” (Januar

29 y 2020) - IRI panel, all outlets, 5 2 w
y 2020) - IRI panel, all outlets, 5 2 weeks ending 11 - 03 - 19, NBD aligned Dollar per buyer chg $0.8 $0.5 $2.5 $2.9 $2.4 - $0.5 $0.7 $0.1 9.1 5.4 2.8 5.0 3.7 3.0 3.4 3.9 0 5 10 Refrigerated milk Meat Meals Creamer Yogurt Ice cream Shelf-stable milk Cheese Plant - based meat, ice cream, and cheese experienced increases in both dollar sales per trip and product trips per buyer gfi.org | Page 26 $4.0 $8.4 $6.6 $4.6 $5.3 $7.1 $5.2 $7.4 $0 $5 $10 Refriger

30 ated milk Meat Meals Creamer Yogurt Ice
ated milk Meat Meals Creamer Yogurt Ice cream Shelf-stable milk Cheese Dollar sales per trip by plant - based product 2019 Source: The Food Industry Association & IRI, “Understanding the Plant - Based Consumer” (January 2020) - IRI panel, all outlets, 5 2 weeks ending 11 - 03 - 19, NBD aligned % chg YA - 1.2% 0.3% 4.0% 15.9% - 3.0% 6.6% 0.1% 4.5% Product trips per buyer by plant - based product 2019 % chg YA 2.7% 1.4% 0.0% - 1.0% 0.3% 5.5% 0.4% 5.0% P

31 lant - based meat U.S. retail sales of p
lant - based meat U.S. retail sales of plant - based meat are worth $939 million gfi.org | Page 28 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $682m $794m $939m $0m $300m $600m $900m $1,200m 2017 2018 2019 Dollar sales U.S. plant - based meat market +16% +18% $617m $312m $10m 0% 15% 30% 45% 60% 75% $0m $150m $300m $450m $600m $750m Frozen plant-based

32 meat Refrigerated plant-based meat Shelf
meat Refrigerated plant-based meat Shelf-stable plant-based meat $ % chg YA Dollar sales Dollar sales $ % chg YA Plant - based meat category growth is being driven by refrigerated plant - based meat sales gfi.org | Page 29 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based meat dollar sales and dollar sales growth by store section 2019 $536m $59

33 4m $617m $139m $192m $312m $0m $200m $40
4m $617m $139m $192m $312m $0m $200m $400m $600m $800m $1,000m Dollar sales Refrigerated Frozen Refrigerated plant - based meat now makes up 33% of category sales and year over year growth is increasing gfi.org | Page 30 Note: Shelf - stable plant - based meat products excluded from this analysis Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 U.S. plant

34 - based meat market by frozen and refrig
- based meat market by frozen and refrigerated categories Year ending April 2017 Year ending April 2018 Year ending April 2019 +11% +4% +38% +63% Refrigerated plant - based meat accounts for 60% of sales in the Natural channel gfi.org | Page 31 Note: Shelf - stable plant - based meat products excluded from this analysis Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12

35 - 29 - 2019 $561m $15m $41m $236m $16m $
- 29 - 2019 $561m $15m $41m $236m $16m $61m -20% 0% 20% 40% 60% 80% 100% -20% 0% 20% 40% 60% 80% 100% MULO Specialty Gourmet Natural $ % chg YA % of total $ sales Frozen Refrigerated Frozen $ % chg YA Refrigerated $ % chg YA Plant - based meat dollar sales and dollar sales growth by store section and sales channel 2019 0k 4k 8k 12k 16k 2017 2018 2019 Total distribution points Frozen plant-based meat Refrigerated plant-based meat Shelf-stable plant-based meat

36 Total distribution points for plant - b
Total distribution points for plant - based meat have increased across all store sections gfi.org | Page 32 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 Plant - based meat total distribution points by department +2% +9% +2% +27% - 2% +50% Burgers have the largest share of plant - based meat sales; links are the fastest growing gfi.org | Page 33 Sour

37 ce: SPINSscan Natural and Specialty Gou
ce: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $283m $159m $120m $112m $104m $40m $30m $26m $21m $44m -10% 0% 10% 20% 30% 40% 50% -$60m $0m $60m $120m $180m $240m $300m $ % chg YA Dollar sales Dollar sales $ % chg YA Plant - based meat dollar sales and dollar sales growth by product type 2019 Burgers Links Patties Nuggets, tenders, and cutlets Grounds Chunks

38 and strips Deli slices Bacon Meatballs
and strips Deli slices Bacon Meatballs Other 123% 248% 48% 100% 57% 6% 15% 69% 13% - 4% 9% 11% 14% 15% - 10% 3% 5% 95% -60% 0% 60% 120% 180% 240% 300% Burgers Patties Nuggets, tenders, and cutlets Grounds Links Chunks and strips Bacon Meatballs Deli slices $ % chg YA Refrigerated $ % chg YA Frozen $ % chg YA Refrigerated sales are driving growth across most plant - based meat product types gfi.org | Page 34 Source: SPINSscan Natural and Specialty Gourmet

39 (proprietary), SPINSscan Conventional
(proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based meat product type dollar sales growth by store section 2019 • Mimics appearance of meat • Mimics taste of meat • Uses meat - like terminology (e.g. chick’n , beef) Plant - based meat products vary in the degree to which they are analogs or non - analogs of animal - based meat gfi.org | Page 35 Analog Non - analog • Emphasizes veget

40 able ingredients • Maintains vegetable
able ingredients • Maintains vegetable - like texture and/or flavor Analog plant - based meat products make up slightly more than 60% of UPC’s but almost 85% of dollar sales gfi.org | Page 36 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 63% 84% 85% 37% 16% 15% 0% 20% 40% 60% 80% 100% UPCs $ sales Unit sales Analog Non-analog Analog and non - analog

41 plant - based meat product comparison 20
plant - based meat product comparison 2019 Products that are analogous to meat are growing faster than non - analogs gfi.org | Page 37 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Analog vs non - analog plant - based meat product sales and YoY growth 2019 $790m $145m -10% 0% 10% 20% 30% -$300m $0m $300m $600m $900m Analog Non-analog $ % chg YA Dollar sa

42 les Dollar sales $ % chg YA $270m $201m
les Dollar sales $ % chg YA $270m $201m $179m $131m $97m $30m $7m $6m $19m -10% 0% 10% 20% 30% 40% 50% -$60m $0m $60m $120m $180m $240m $300m Beef Chicken Pork Non-analog (vegetable) Analog (not specified) Turkey Fish Non-analog (Jackfruit) Other $ % chg YA Dollar sales Dollar sales $ % chg YA Plant - based versions of beef, chicken, and pork make up almost 70% of plant - based meat sales gfi.org | Page 38 Source: SPINSscan Natural and Specialty Gourmet (

43 proprietary), SPINSscan Conventional Mu
proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based meat dollar sales and YoY growth by animal - type 2019 Burgers 58% Grounds 31% Other 11% Beef Nuggets, tenders, and cutlets 54% Patties 32% Chunks and strips 13% Other 1% Chicken Links 88% Other 12% Analog (not specified) Beef - type products are concentrated in burgers and grounds, chicken - type products in nuggets and patties gfi.org | Pag

44 e 39 Source: SPINSscan Natural and Spe
e 39 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based meat animal type by product type dollar sales 2019 Links 41% Patties 30% Bacon 15% Grounds 7% Other 7% Pork Fish and shellfish are underrepresented in the plant - based meat market gfi.org | Page 40 Note: Animal - based meat dollar sales for year ending August 2018; plant - based meat doll

45 ar sales for year ending December 2019 S
ar sales for year ending December 2019 Source: Nielsen custom defined data set, xAOC + WFM, 52 weeks ending 8 - 11 - 2018; SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Beef Beef Chicken Chicken Pork Pork Analog (not specified) Turkey Turkey Fish Shellfish 0% 20% 40% 60% 80% 100% Animal-based meat Plant-based meat % of total $ sales Animal - based and plant - bas

46 ed meat comparison: dollar sales by anim
ed meat comparison: dollar sales by animal - type Plant - based fish makes up almost 70% of the plant - based seafood category gfi.org | Page 41 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based seafood sales and YoY growth by seafood type 2019 $7m $3m -25% 0% 25% 50% 75% 100% -$2m $0m $2m $4m $6m $8m Fish Shellfish $ % chg YA Dollar sales Doll

47 ar sales $ % chg YA The plant - based fi
ar sales $ % chg YA The plant - based fish and shellfish categories are both dominated by one animal type gfi.org | Page 42 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 White fish $6m Tuna and other fish $820k Fish $7m Shellfish $3m Crab $2m Scallops and shrimp $362k 0% 20% 40% 60% 80% 100% Fish Seafood Shellfish Plant - based seafood category by animal

48 type 2019 Plant - based milk U.S. retai
type 2019 Plant - based milk U.S. retail sales of plant - based milk are worth $2 billion gfi.org | Page 44 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $1.8b $1.9b $2.0b $0.0b $0.5b $1.0b $1.5b $2.0b $2.5b 2017 2018 2019 Dollar sales U.S. plant - based milk market +9% +5% Refrigerated plant - based milk sales make up the majority of the category and

49 are driving category growth gfi.org | Pa
are driving category growth gfi.org | Page 45 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 U.S. plant - based milk dollar sales and dollar sales growth by store section 2019 $1.8b $211m -5% 0% 5% 10% 15% -$800m $0m $800m $1,600m $2,400m Refigerated plant-based milk Shelf-stable plant-based milk $ % chg YA Dollar sales Dollar sales $ % chg YA gfi.org | Pa

50 ge 46 10k 11k 12k 13k 14k 15k 2017 2018
ge 46 10k 11k 12k 13k 14k 15k 2017 2018 2019 Total distribution points Refrigerated plant-based milk Shelf-stable plant-based milk Refrigerated plant - based milk TDP growth has increased as volume moves to the fresh dairy case gfi.org | Page 47 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 Plant - based milk total distribution points by department - 1

51 % +8% +2% - 4% $1.3b $202m $118m $93m $8
% +8% +2% - 4% $1.3b $202m $118m $93m $84m $51m $38m $36m $66m -15% 0% 15% 30% 45% 60% -$375m $0m $375m $750m $1,125m $1,500m Almond Soy Blends Coconut Oat Cashew Pea Rice Other $ % chg YA Dollar sales Dollar sales $ % chg YA Almond milk makes up the majority of plant - based milk sales, but oat milk grew at 686% over the past year gfi.org | Page 48 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powere

52 d by IRI), 52 weeks ending 12 - 29 - 201
d by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based milk dollar sales and dollar sales growth by product type 2019 686% Oat milk makes up a larger proportion of Natural channel sales gfi.org | Page 49 Note: “Other” category includes rice, pea, cashew, hemp, and flax milks Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Almond Almond Almond Soy Soy

53 Soy Blend Blend Blend Coconut Coconut Co
Soy Blend Blend Blend Coconut Coconut Coconut Oat Oat Oat Other Other Other 0% 20% 40% 60% 80% 100% MULO Specialty Gourmet Natural % of total $ sales Plant - based milk sales by product type and sales channel 2019 Plant - based other dairy Plant - based ice cream and frozen novelty products are the largest of the other plant - based dairy categories gfi.org | Page 51 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Mu

54 lti Outlet (powered by IRI), 52 weeks en
lti Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 $336m $287m $283m $198m $189m $122m $30m 0% 12% 24% 36% 48% 60% 72% $0m $70m $140m $210m $280m $350m $420m Plant-based ice cream and frozen novelty Plant-based creamer Plant-based yogurt Plant-based butter Plant-based cheese Plant-based ready-to-drink beverages Plant-based dairy spreads, dips, sour cream, and sauces $ % chg YA Dollar sales $ sales $ % chg YA Other plant - based dairy category dollar

55 sales and dollar sales growth 2019 U.S.
sales and dollar sales growth 2019 U.S. retail dollar sales of plant - based ice cream and frozen novelty products are worth $336 million gfi.org | Page 52 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $251m $318m $336m $0m $100m $200m $300m $400m 2017 2018 2019 Dollar sales U.S. plant - based ice cream and frozen novelty market +27% +6% Plant - based

56 ice cream makes up the majority of the
ice cream makes up the majority of the category, although sales have stagnated gfi.org | Page 53 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 U.S. plant - based ice cream and frozen novelty dollar sales and dollar sales growth by store section 2019 $247m $61m $27m -9% 0% 9% 18% 27% 36% -$90m $0m $90m $180m $270m $360m Plant-based ice cream Plant-based n

57 ovelties Plant-based pies and other dess
ovelties Plant-based pies and other desserts $ % chg YA Dollar sales Dollar sales $ % chg YA U.S. retail sales of plant - based creamer grew 34% to reach $287 million gfi.org | Page 54 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $149m $213m $287m $0m $70m $140m $210m $280m $350m 2017 2018 2019 Dollar sales U.S. plant - based creamer market +43% +34% U

58 .S. retail sales of plant - based yogurt
.S. retail sales of plant - based yogurt grew 31% to reach $283 million gfi.org | Page 55 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $145m $215m $283m $0m $60m $120m $180m $240m $300m 2017 2018 2019 Dollar sales U.S. plant - based yogurt market +48% +31% $127m $87m $44m $24m -9% 0% 9% 18% 27% 36% 45% -$27m $0m $27m $54m $81m $108m $135m Coconut Almon

59 d Soy Other $ % chg YA Dollar Sales Doll
d Soy Other $ % chg YA Dollar Sales Dollar sales $ % chg YA Coconut and almond yogurts make up ~76% of category sales, and are growing at 42% and 39% respectively gfi.org | Page 56 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based yogurt dollar sales with dollar sales growth, by type 2019 U.S. retail sales of plant - based butter grew 8% to rea

60 ch $198 million gfi.org | Page 57 Sour
ch $198 million gfi.org | Page 57 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $173m $183m $198m $0m $50m $100m $150m $200m $250m 2017 2018 2019 Dollar sales U.S. plant - based butter market +6% +8% U.S. retail sales of plant - based cheese are worth $189 million gfi.org | Page 58 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINS

61 scan Conventional Multi Outlet (powered
scan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $125m $160m $189m $0m $60m $120m $180m $240m 2017 2018 2019 Dollar sales U.S. plant - based cheese market +27% +18% $67.3m $65.0m $45.7m $11.0m 0% 6% 12% 18% 24% 30% $0m $15m $30m $45m $60m $75m Shredded and grated Sliced and snack Spread Block, wheel, and wedge $ % chg YA Dollar Sales Dollar sales $ % chg YA Shredded cheeses and sliced cheeses make up 70% of category sales and

62 are growing at 17% and 16%, respectivel
are growing at 17% and 16%, respectively gfi.org | Page 59 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 52 weeks ending 12 - 29 - 2019 Plant - based cheese dollar sales with dollar sales growth, by type 2019 U.S. retail sales of plant - based ready to drink beverages grew 18% to reach $122 million gfi.org | Page 60 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SP

63 INSscan Conventional Multi Outlet (power
INSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $88m $103m $122m $0m $27m $54m $81m $108m $135m 2017 2018 2019 Dollar sales U.S. plant - based ready - to - drink beverages market +18% +18% Protein drinks and smoothies make up 65% of plant - based RTD beverage sales and are driving category growth gfi.org | Page 61 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powere

64 d by IRI), 52 weeks ending 12 - 29 - 201
d by IRI), 52 weeks ending 12 - 29 - 2019 U.S. plant - based ready - to - drink beverages dollar sales and dollar sales growth, by type 2019 $80m $43m 0% 5% 10% 15% 20% 25% $0m $20m $40m $60m $80m $100m Plant-based protein drinks and smoothies Coffee, lattes, and teas with plant-based milk $ % chg YA Dollar sales Dollar sales $ % chg YA U.S. retail sales of plant - based dairy spreads, dips, sour cream, and sauces grew 54% to reach $30 million gfi.org | Pag

65 e 62 Source: SPINSscan Natural and Spe
e 62 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $13m $19m $30m $0m $8m $16m $24m $32m 2017 2018 2019 Dollar sales U.S. plant - based dairy spreads, dips, sour cream, and sauces market +53% +54% Other plant - based categories U.S. retail sales of plant - based meals grew 8% to reach $377 million gfi.org | Page 64 Source: SPINSscan Natural and Specia

66 lty Gourmet (proprietary), SPINSscan Co
lty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $300m $348m $377m $0m $100m $200m $300m $400m $500m 2017 2018 2019 Dollar sales U.S. plant - based meals market +16% +8% U.S. retail sales of tofu and tempeh grew 8% to reach $128 million gfi.org | Page 65 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 -

67 29 - 2019 $112m $119m $128m $0m $30m $6
29 - 2019 $112m $119m $128m $0m $30m $60m $90m $120m $150m 2017 2018 2019 Dollar sales U.S. tofu and tempeh market +6% +8% U.S. retail sales of plant - based condiments, dressings, and mayo declined 11% to $64 million gfi.org | Page 66 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $63m $71m $64m $0m $20m $40m $60m $80m 2017 2018 2019 Dollar sales U.S.

68 plant - based condiments, dressings, and
plant - based condiments, dressings, and mayo market +14% - 11% U.S. retail sales of plant - based eggs are worth $10 million and are rapidly growing gfi.org | Page 67 Source: SPINSscan Natural and Specialty Gourmet (proprietary), SPINSscan Conventional Multi Outlet (powered by IRI), 104 weeks ending 12 - 29 - 2019 $3m $3m $10m $0m $3m $6m $9m $12m 2017 2018 2019 Dollar sales U.S. plant - based eggs market +13% +192% Key takeaways gfi.org | Page 68 1. T

69 he plant - based food market reached $5
he plant - based food market reached $5 billion in sales and grew at 11% over the past year, 5 times faster than total food sales growth 2. Plant - based categories are experiencing both high repeat purchase rates and an increasing percentage of repeat buyers 3. Refrigerated product sales are driving growth in the plant - based milk, meat, and egg categories 4. Plant - based products benefit from adjacency and should be displayed side - by - side with the

70 ir animal - based counterparts 5. Analog
ir animal - based counterparts 5. Analog plant - based products that closely match conventional products’ taste, appearance, and packaging are driving plant - based food growth 6. There is room for innovation in whole muscle products that resemble premium animal cuts, particularly in chicken and fish Q&A Thank you for attending our webinar! gfi.org | Page 70 Caroline Bushnell Associate Director, Corporate Engagement carolineb@gfi.org Kyle Gaan Research