2021 On-premise and food service beverage challenges in the U.S.

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2021 On-premise and food service beverage challenges in the U.S.

3 main questions

1. Will 2021 see a foodservice/on-premise re-bound?

  • What factors drive the speed and shape of a potential 2021 Foodservice/on-premise re-bound?
  • What rebound scenarios and timings are most likely?

2. What does Foodservice/on-premise look like in the next normal?

  • Which consumption trends will stick after the pandemic, and which will fade back to the way things were before?
  • What will the new Foodservice/on-premise channel landscape looks like?

3. What actions can be taken now to create competitive advantage and capture market share?

  • How move fast to take advantage of the new market landscape?
  • How grow/expand footprint in online delivery?
  • How innovate to capture new consumer spend?

Speed of re-opening: 5 key factors

Q1 BUNGLED SMOO TH V ACCINE ROL L OU T Q2 Q3 Q4 BE T TER IN SUMMER NO T SEASONAL SEASONALIT Y APPROPRIA TE T OO TIG H T GO VERNMEN T RESTRI C TIONS DISCIPLINED CABIN FEVER! CITIZENP A TIENCE NO T MORE CON T AGIOUS, DEAD L Y , OR RESIS T AN T NEW V ARIAN T S MORE CON T AGIOUS, DEAD L Y , OR RESIS T AN T EXTENSIVE L OCK DOWN Most consumer choosing t o stay home He a vy restrictions in place ac r oss many states PA R TIAL RE-OPENING Many consumer getting out of the home Mixed restrictions ac r oss the country: some states returning t o fully open Outdoor dining commonplace FULL & BRO AD RE-OPENING Most consumers returning t o restau r ants & bars Limited restrictions isolated t o individual states Indoor dining commonplace ST AGES OF REOPENING Jan Feb Mar Apr May Jun Jul A ug Sep Oct No v Dec

4 timing scenarios food for thought

RO ARING R E TURN MEASURED SL OW MIS-STEP Q1 Q2 Q3 Q4 Jan Feb Mar Apr May Jun Jul A ug Sep Oct No v Dec RO ARING R E TURN MEASURED MIS-STEP SL OW

Temporary trends or new normal?

NEW OCCASION TRENDS NEW CH ANNEL GEOGRAP H Y TRENDS ELEV A TED OU T OF HOME EXPERIENCES PREFER THE “NEW” A T -HOME OCCASION ONLINE FOODDELIVE R Y EV O L VING OUTL E T UNIVERSE BOOM INLIFES T YLE CITIES Consumer will be lured out by el e v ated experiences that are difficult t o replicate at home Consumers h a ve learned t o make cocktails, enjoy wine, and cook new recipes Many will incorpo r ate these occasions in t o their lifestyle Access t o delivery se r vices p r o vide (i) convenience & (ii) el e v ated at home occasion Chains t o capitalize (Chili s, Just Wings, etc) Numer ous bars & restau r antes h a ve closed, many permanently New locations will be opening ac r oss the country Ex odus f r om t r aditional “young p r ofessional” cities (S F , N Y , Chicago, etc) Lifestyle and cost of living driven g r owth of lifestyle cities (Boulde r , A ustin, Bend, etc) Bar , restau r ant, and culture scenes surging New “delivery- focused” independents t o thrive (ghost kitchens, etc)

At least 2 mega trends and 3 market opportunities emerging…?

TEMPORARY NICHES MARKET OPPORTUNITIES CAPTURE THE MOMENT MEGA TRENDS P E R MA N E N C E CO N S U M E R A D OP T I O N / I M P A CT FE W C O N S U M E R S M A N Y C O N S U M E R S TE M P O R A R Y T R E N D HE R E T O S T A Y O n li n e Foo d Deli v e r y E le v a t e d Out of Ho m e Exp e r i e nc e s B oo m i n L i f e sty l e C i t ie s Evolving O ut le t U n i v e r se P r e f e r the “ N e w At-Home O ccas i on K E Y OCC A S IO N B A S ED T RE N D S C H A NN EL & GEOG R AP HY T RE N D S

3 actions to take now to win in the new normal

ma p ne w m a r k e t lan dsc a pe m o v e f a s t t o bu il d lo c a l c o n n e ct i o n s 1 R e a llo c at e d fi e l d fo rc e a n d s pen d Ou t l e t / ne i g hb o rh o o d a c t i v at io n p l a n s Hi g h i n fl uence a cc o un t ta r g e t i n g E volvi n g Ou t le t U n iver s e B oo m i n L ife s t y le C i t ies
Online Food Delivery define online delivery strategy run pilots, test, learn and capture growth in new channel 2 TBC TBC TBC
innovate to win experience-led occasions capture new consumer spend 3 Elevated & accessible at-home offerings Elevated Outof Home Experiences

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Agustín de Trápaga

Agustín de Trápaga is a senior manager at Integration and has been working since 2019 in the Argentinean office in the Supply Chain Practice. His project expertise is the design of strategic distribution networks and last-mile delivery, the design of conventional and automated distribution centers, and re-engineering of logistics processes in sectors such as beverages, [...]

Augusto Ribeiro

Augusto Ribeiro is a partner at Integration and has been working since 2003 in the Marketing & Sales practice. Augusto built a solid international experience, leading and implementing strategic Marketing & Sales projects in industries ranging from Consumer Goods through Construction & Property Development to the Financial Industry, especially in the Private Equity sector.

Carlos Lima

Carlos Lima is the president of Integration and a founding partner. Carlos has worked with leading international companies across the globe as a consultant for the last 30 years and has developed a particular specialization in Marketing and Sales. He is considered an expert in the Consumer Goods sector and on the topics of Commercial [...]

Francisco Pereira Leite

Francisco Pereira Leite is a partner and has been working within Integration since 1999. An all-rounder, Francisco has moved across our practices, working for the first eight years with focus in Supply Chain and then increasing his scope to the Finance & Management and Implementation areas. His experience over more than 150 projects includes Implementation [...]

Gerard Schoor

Gerard Schoor is a partner at Integration based in Paris, France. He led the Mexico City office from 2008 until 2020. He is currently in charge of Integration’s business development in Europe where we work from offices in Munich and London. His main areas of expertise revolve around supply chain, manufacturing, circular economy, strategic roadmaps, [...]

Hugo Ribeiro

Hugo Ribeiro is a founding partner at Integration and can count on more than 30 years of experience in consulting. Hugo, who holds a post-graduate degree in Business Administration from Harvard University, is a senior specialist in the area of Finance & Management and frequently leads projects in Organizational Structure, Strategic Planning, M&A, Improvement of [...]

Jorge Gomes

Jorge Gomes is a senior director and a highly experienced professional in our Finance & Management practice having joined Integration in 2008. Jorge has travelled to countries around the world in support of our clients, leading projects related to revenue management, strategic planning, M&A and more. He has a well-rounded experience having completed multiple projects [...]

Lucas Castilho

Lucas Castilho is a senior manager on the Supply Chain team at Integration and has been with the company since January 2023. His experience includes planning, supply chain, S&OP and WMS implementations.

Roger Saltiel

Roger Saltiel is a partner at Integration and has been working since 2002 in the Marketing & Sales practice. Considered an authority in the Indirect Channel and Partner Relationship Management (PRM), he is a member of the Associação Brasileira de Atacadistas e Distribuidores (ABAD) [Brazilian Association of Wholesalers and Distributors], working in the leadership of [...]

  • On 5 May 2021