Investor Day Presentation, Jeff Dunn, President – Bolthouse Farms

Investor Day Presentation, Jeff Dunn, President – Bolthouse Farms

Bolthouse Farms
Jeff Dunn
President
Bolthouse Farms
1
EXPANDING INTO FASTER
GROWING SPACES
STRENGTHENING OUR CORE
•
Drive base business growth
•
Innovate base product / packaging
•
Successfully launch into new Packaged Fresh
categories
•
Increase availability in new channels
2
CORE
BREAKTHROUGH
Bolthouse Farms – Continued Strong Growth
Breakthrough
Innovation
New
Availability
Base
Innovation
Baseline
Core
3
Bolthouse Farms Business Unit Overview
FARMS
Retail Carrots
CPG
Super Premium Beverages
60%
40%
Bolthouse
Net Sales
Bolthouse
Net Sales
+15%
Natural Ingredients
+3%
Carrot
Category
Growth
Premium Refrigerated Dressings
Beverage
Category
Growth
+6%
Dressing
Category
Growth
Source: Category Growth - Freshlook Database 52 weeks ending May 18, 2014 & IRI Database 52 weeks ending June 15, 2014
4
Bolthouse Farms – Farms FY 14 Update
Farms
Net Sales
“2 Year CAGR”
+4%
• Continued growth in organic &
premium carrot sub-segments
• Capturing opportunities in juicing trends
• Operational savings & sustainability gains
• Recent contract wins/renewals
Source: CAGR: July 2011 - June 2014
5
Bolthouse Farms – FY15 Focus Areas
• Customer service / Quality as job #1
• Lean into carrot trends
–
Cello (Juicing)
–
Organic
–
Premiums
–
Fresh Snacking
• Test new “branded” packaging
6
Bolthouse Farms –
CPG FY 14 Update
(Beverages)
Beverage
3 Year CAGR
+15%
KEY GROWTH DRIVERS
• Strong innovation track record
FY13
Beverage
Net Sales
“2 Year CAGR”
+15%
FY14
• Grocery/mass distribution &
merchandising strength
• Packaging innovation
• Significant new channel availability
Source: CAGR: July 2011 - June 2014
7
$20
$0
P5 03
P7 03
P9 03
P11 03
P13 03
P2 04
P4 04
P6 04
P8 04
P10 04
P12 04
P1 05
P3 05
P5 05
P7 05
P9 05
P11 05
P13 05
P2 06
P4 06
P6 06
P8 06
P10 06
P12 06
P1 07
P3 07
P5 07
P7 07
P9 07
P11 07
P13 07
P2 08
P4 08
P6 08
P8 08
P10 08
P12 08
P1 09
P3 09
P5 09
P7 09
P9 09
P11 09
P13 09
P2 10
P4 10
P6 10
P8 10
P10 10
P12 10
P1 11
P3 11
P5 11
P7 11
P9 11
P11 11
P13 11
P2 12
P4 12
P6 12
P8 12
P10 12
P12 12
P1 13
P3 13
P5 13
P7 13
P9 13
P11 13
P13 13
P2 14
P4 14
P6 14
Total Dollars in Millions
Bolthouse Farms Beverage - A Growth Story
2003
2004
2005
2006
Dollar
Share
Dollar
Growth
36.3%
+16%
2007
$15
$10
$5
2008
2009
2010
Brand Dollar Growth Over Time
2011
2012
2013
$35
2014
Bolthouse Farms
$30
$25
Latest 4 Weeks
Super
Premium
Juice Category
52 week growth
15%
Source: Nielsen/IRI April 2003 Total U.S. – Current Period Ending 6/20/10 Total US Multi Outlet – Current Period Ending 6/15/14
8
Bolthouse FarmsSpring 14 Beverage Innovation
Daily Golden Vedge
Daily Roots
• Veggie forward
Multi-V Goodness
• Lower calories / sugar
Stone Fruit
Tropical Goodness
• Early velocities are strong
9
Bolthouse Farms - Bottle Size Innovation
• Packaging innovations • Increasing consumer occasions • 11oz driving new availability
GRAB & GO
10
Bolthouse Farms - Brand Building
Brand Investment
Digital Brand Engagement
Product Support
11
VIDEO: Bolthouse Farms Sizzle Reel
12
Bolthouse Farms –
CPG FY 14 Update
Dressing
2 Year Net
“Sales CAGR”
(Dressing)
+29%
BY SEGMENT
CREAMY
VINAIGRETTE
GREEK
NEW
NEW
+7%
REFRIGERATED DRESSING
CATEGORY GROWTH
+24%
REFRIGERATED DRESSING
BOLTHOUSE FARMS GROWTH
Source: CAGR: July 2011 - June 2014; IRI Total U.S. – Food, Current 4 weeks ending 6/15/14
13
CORE
BREAKTHROUGH
Bolthouse Farms – New Availability
3 year growth drivers (FY 15-17)
New Availability
Base Innovation
Core / Baseline
14
Bolthouse Farms – New Availability
• Leveraging CSC resources where appropriate
• Brand building channel
FY14- +19,000 DOORS
STRONG IN-STORE
MERCHANDISING
EARLY VELOCITIES
ARE SOLID
15
CORE
BREAKTHROUGH
Bolthouse Farms – Breakthough Innovation
3 year growth drivers (FY 15-17)
Breakthrough
Innovation
Packaged
Fresh
Breakthrough Innovation
New Availability
Base Innovation
Core / Baseline
16
17
Snacking is the NEW eating behavior
Healthy Snacking: Next Big Thing…
…Except Kids Need Healthier Options
•
•
•
•
35%
30%
25%
20%
15%
10%
5%
0%
Snacking growth outpacing total CPG growth
Population of self-identified “healthy snackers”
grew from 14% in 2004 to 18% in 2013 (41
million)
48% are willing to pay a premium for healthier
snacks in 2013 (+11% vs. 2012)
Kids’ favorite snacks tend to be unhealthful
32%
Chips /
pretzels
•
23%
22%
20%
20%
Fresh fruit
Fruit
snacks
Ice cream
Yogurt
But, nearly half of kids studied WOULD eat
healthier snacks, if available
Source: Mintel (2010), Progressivegrocer.com(2013), foodnavigator-usa.com (2014), IRI Snaxpo (2014)
18
Convenience, driving fresh snacking
category growth
Top 8 Segments within Fresh Healthy Snacking Category
Millions
(CY 2013 Dollar Sales)
Single-serve,
on-the-go items*
$800
*Fruit cups are seen as highly processed with added sugar.
$700
$1.0
BILLION
FRESH KIDS
SNACKING
CATEGORY
$600
$500
$400
$300
$200
$100
$7,273
$713
$651
$169
$163
$153
$31
$29
+11%1
+14%1
+34%1
+85%
-2%
+29%1
+177%
+57%
Juice /
Smoothie
Fruit cup
Cut vegetable
with dip
Fruit puree
Hummus
snack pack
$-
4-Year CAGR
Cut fruit
Cut vegetable Cut fruit with
dip
Notes:
(1) Growth rate represents 2012-2013 as only two years of data are available for these segments.
Source: IRI MULO CY 2009-2013; Freshlook MULO CY 2012-2013
19
Bolthouse Farms - Kids Launch
• Launch August 2014
• Millennial mom with kids 4-11 years old
• Strong digital marketing effort
SMOOTHIES
An easy way for kids to get
their servings of fruit
FRUIT TUBES
A fun fruit snack moms can
feel good about
VEGGIE SNACKERS
Snacks that make veggies
taste great for kids
20
BolthouseFarms - Kids In-Store Merchandising
• Mom’s solution for
healthier snacking
• Kids Fresh snacking
destination
• Early reaction, very
strong
21
Bolthouse Farms – Accelerating Future Growth
CPG FLEX LINE
WAREHOUSE CAPACITY
• Additional beverage
capacity
• Increase cold storage space
by +75%
CPG PRODUCTION CAPACITY
• Beverage lines 4 & 5
• Expanded HPP capacity
• Bottle size capability
• DOUBLE existing freezer
capacity
• Packaged fresh
• Run size FLEXIBLITY
• Increase shipping capacity
by +40%
WAREHOUSE
CAPACITY
CPG EXPANSION
FLEX
LINE
Bev
1
BAKERSFIELD
Fiber CAMPUS
CPG
EXPANSION
22
Bolthouse Farms - Summary
• Win “Farms” with quality and
customer service
• Drive operational excellence
and productivity
• Fuel CPG growth through
innovation, in-store
acceleration, and availability
• Bring Packaged Fresh to
market successfully
23