Demand Signals: Healthy Eating

Consumer Data Points

IFIC : IFIC's 2024?Food & Health Survey offers a variety of valuable insights:

• "Consumers continue to say taste (85%) is very impactful on their food and beverage purchase decisions. Price remains the second most impactful (76%). Healthfulness falls in the middle (62%), followed by convenience (57%), and environmental sustainability (31%)... As income rises, the influence of price understandably diminishes, while other factors, such as taste and healthfulness, increase dramatically in importance. Healthfulness is a key driver for 55% of those with the lowest household income, but 75% for those with the highest household income. Interestingly, healthfulness surpasses price as a purchase driver at the threshold of $100K+ in household income." ?
• "Three in 4 say food choices impact their mental well-being and 2 in 3 recognize the reciprocal relationship: their mental well-being influences the food choices they make." ?
• "Despite this high exposure and overall trust in food and nutrition content on social media, few trust social media influencers and bloggers for information about what foods to eat and avoid. Consumers are most likely to trust this information from personal healthcare professionals and registered dietitian nutritionists." ?
• "The percentage of consumers following a diet or eating pattern remains steady at around half. The most common diets are high protein and mindful eating. The percentage following a diet or eating pattern decreases with age, though women are more likely to do so as they age than men."
• "The biggest motivation for following a diet or eating pattern is to feel better and have more energy. Though still a big motivator, weight loss has dropped to the second most common reason. Several motivators increased in prevalence this year, including wanting to feel better and have more energy, wanting to protect long-term health, and wanting to better manage a health condition." ?
• "Most Americans are trying to consume protein, and the desire to get more continues to rise (59% in 2022, 67% 2023, 71% 2024). Half of consumers are also looking to increase their consumption of fresh foods, which most consider to be the healthiest type of food... “Fresh,” “Good source of protein,” and “Low in sugar” remain the top three criteria used to define a healthy food." ?
• "The top benefits consumers seek from food, beverages, and nutrients are energy, healthy aging, weight loss and management, and digestive health." ?
• Only 24% of Americans?describe their relationship with food as "Very positive", and only 17%?feel "Very positive" about the healthfulness of their food and beverage choices so far in 2024.

McKinsey : For Nutrition products, ~41% of U.S. consumers prefer clinically proven efficacy, while only?~33% prefer organic or natural ingredients.

Cleveland Clinic : "According to a national Cleveland Clinic survey, the most common barrier to a healthier diet is that almost half of Americans (46%) view healthy food as being more expensive, while also citing a lack of time to prepare healthy meals (23%) and unfamiliarity with healthy ways of cooking (20%)."

Dietary Guidelines for?Americans : As of 2016, ~90% of the U.S. population was below the recommended intake for Vegetables, ~80% for Fruits, and ~40% for Protein Foods?(including ~90% for Seafood).

USDA : As of 2020, the Healthy Eating Index (HEI) score for Americans is 58 out of 100.

USDA :?"About half of all American adults—117 million individuals—have one or more preventable chronic diseases, many of which are related to poor quality eating patterns and physical inactivity. These include cardiovascular disease, high blood pressure, type 2 diabetes, some cancers, and poor bone health. More than two-thirds of adults and nearly one-third of children and youth are overweight or obese. Trends in food intake show that Americans are not consuming healthy eating patterns."

CDC :?As of 2018, U.S. adults consumed on average ~16% of calories from Protein, ~36% from Fat, and ~48% from Carbohydrate.

CDC : "In 2017–2018, the average daily intake of added sugars was 17 teaspoons" (~283?calories)

Grocery & CPG

Whole Foods: 536?stores across the U.S., Canada, and U.K; ~$17B Revenue (2022)

Sprouts Farmers Market: 419 stores across the U.S.; $7.2B Revenue (TTM)

FreshDirect: "Annual turnover of 650 million dollars"

Thrive Market: "More than 1 million members"

Hungryroot: "Hundreds of millions of dollars in annual sales"

United Natural Foods: $30B Revenue (TTM);?11,000 suppliers ;?"UNFI distributes over 250,000 natural, organic and conventional products to more than 30,000 customers..."

SunOpta: $688M Revenue (TTM) [Note: ~85% beverages and ~15% snacks ]

Vital Farms: $542M Revenue (TTM); 24K+ retail doors

Meal Delivery

HelloFresh: $7.7B Revenue (TTM); ~10M orders and ~81M meals per month

Blue Apron: ~$425M Revenue (TTM as of January 2024);?"530+ million meals shipped"

Daily Harvest: $250M Revenue (2020)

Sakara Life: $150M Revenue (2021E)

Frichti: $74M Revenue (2022) ?

Away From Home

Sweetgreen: ~240 restaurants across the U.S.;?$649M Revenue (TTM); $2.9M AUV

CAVA: 341 restaurants across the U.S.;?$845M Revenue (TTM)

True Food Kitchen: ~45 restaurants across the U.S.; implied?~$270M Revenue @ $6M AUV

Mendocino Farms: ~70 locations across the U.S.; >$3M AUV ; implied >$200M Revenue

Just Salad: 70+ locations across the U.S.; $150M+ Revenue (2023)

Chopt: ~90 locations across the U.S.; $139M Revenue (2022E)

Flower Child:?38 locations across the U.S.; $128M Systemwide Sales ; $4.4M AUV

Salata: ~100 locations across the U.S.; ~$1.1M AUV ; implied $110M Revenue

Tender Greens: 22 locations ?in California;?$2.9M AUV ; implied $64M Revenue

Everytable: 38 stores in Southern California; 5.2M meals sold

DIG: 31 locations in Northeast U.S.

Recent Fundraising & Acquisitions

• Blue Apron was acquired by Wonder Group for $103M ?
• FreshDirect was acquired by Getir ?
• ALOHA received $68M for "a significant minority stake in the company" ?
• Good Eggs was acquired by GrubMarket for >$22M ?
• Daily Harved raised ~$12M ?
• David raised $10M Seed ?
• MealPlanet raised $6M Seed

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