Chicago, June 1, 2023 – Circana , formerly IRI and The NPD Group, announced the winners of its annual consumer awards during the Sweets and Snacks Expo, hosted by National Confectioners Association in Chicago, May 22-25. Circana’s Consumer Awards, presented by Circana’s food and beverage consumption practice to the winning sweets and snacks manufacturers, were based on the highest share of eatings together with needs, motivations, situations, or occasions that influenced the snack or treat selection, according to the company’s SnackTrack® service, which continually tracks treat and snack consumption attitudes and behaviors. “Despite the pressure of higher food prices, consumers always find a way to treat themselves with sweets and snacks,” says Darren Seifer, Circana food and beverage industry analyst . “Through our consumer awards, we recognize manufacturers that provide consumers with the treats and snacks they want for whatever reason they want them, like watching fireworks, playing games, or it’s their favorite routine.” Circana Sweets and Snacks Expo Consumer Awards Oh, You Shouldn’t Have Award — Top Chocolate Specialty/Gift Box Consumed on a Holiday*: Russell Stover/Company: Russell Stover Chocolates Kids Snack Cake Choice Award — #1 Brand of Snack Cakes Eaten by Gen Alpha**  Little Debbie Chocolate Cupcakes/Company: McKee Foods Millennials’ Premium Chocolate Choice Award — Top Premium Chocolate Consumed by Millennials** Lindt/Company: Lindt & Sprüngli (USA), Inc. Winner of the Take Me with You Award — Top Hard Candy Consumed on the Go** Werther’s Original/Company: Storck Winner of the Better Than Fireworks Award — Top Chocolate Candy Consumed on the 4th of July** Ghirardelli Chocolate Squares/Company: Ghirardelli Winner of the Pairs Well with Games Award — #1 Fruit Snack for Children When Playing Games** Welch’s Fruit Snacks/Company: PIM Brands Winner of the Happy Consumer Award — #1 Gummy Consumed When Feeling Happy** Haribo Goldbears/Company: Haribo Winner of the Gimme A Break Boss Award — Top Chocolate Consumed While Doing Work/Homework* Snickers/Company: Mars Winner of the Teacher’s Pet Award — Top Mint Consumed at School* Tic Tac/Company: Ferrero Winner of the Young Gen Gummy Favorites Award — Top Gummy Consumed by Gen Alpha* Black Forest/Company: Ferrara *Circana, SnackTrack®, two years ending December 2022 **Circana, SnackTrack®, year ending December 2022

—Foodservice customer visits and spending increased by double-digits Toronto, June 1, 2023 — Canada’s foodservice industry continued its robust recovery from pandemic losses in the first quarter of 2023 as it crossed the final round of lockdowns from early 2022, reports Circana , formerly IRI and The NPD Group. Customer visits to restaurants and other foodservice outlets increased by 11%, and spending grew by 18% in the quarter ending March compared to a year ago. “Foodservice traffic has been on an upward trend over the past two years,” says Vince Sgabellone, Circana foodservice industry analyst . “The first quarter of this year continues this trend by surpassing pre-pandemic 2019 first quarter traffic volume.” Since pandemic lockdowns were lifted, a key growth driver has been the significant gain in on-premises, dine-in visits. Dine-in visits jumped by 59% in the first quarter versus the same quarter a year ago. Though off-premises traffic, like carry-out, drive-thru, and delivery, still represent a larger share of total foodservice visits, 66%, these visits declined by 5% in the reporting period. Shifting behaviors, like more people returning to worksites or out-of-home routines, have helped to increase foodservice visits throughout the day, particularly at the breakfast and A.M. snack periods. While all dayparts grew in the first quarter, the morning meal daypart increased visits by 13% and currently holds the largest daypart traffic share. Lunch and dinner daypart visits grew by 10%, and P.M. snack grew by 8% in the quarter versus a year ago, reports Circana. Although full service restaurants had the most traffic growth, a 24% gain, quick service restaurants held a 67% share of all foodservice visits and increased visits by 9% in the quarter. Full service traffic represented a 22% share of visits. Retail foodservice, like prepared foods at convenience and grocery stores, defines the remainder of traffic share, and visits to these outlets were down 5% in the quarter compared to a year ago. “Some of the key transformations to watch in the coming quarters include the strength of morning meal as consumers continue to resume out-of-home activities; re-settling of carry-out, drive-thru, and delivery as some of the pent-up demand for in-person visits migrates back to off-premises; and the shifting influence of the different generational groups,” says Sgabellone. “Also playing out is the ascent of small chains and independents, which have collectively exceeded their pre-COVID share of visits. These restaurants were hardest hit over the past three years, and their growth could be another indicator of an upcoming market transformation.“

One of my New Year’s resolutions this year was to limit my makeup purchases to products I needed to replenish. I am using the past tense here because, nearly halfway through the year, I have – as I expected – failed at this goal. Instead, I have found myself browsing beauty aisles many times over the past few months in search of an emotional pick-me-up – something that I wanted, rather than needed, to have. And I am not alone. Over the past year, the world has been living through economic challenges and inflationary pressures. Higher prices for groceries and other essential items, have forced consumers to reconsider their budgets. To manage higher food costs, more than half of women in the U.S. shop at food stores that offer lower prices, and over 40% buy more store brand or private label foods and beverages, according to Circana’s February Omnibus survey results. Within the makeup industry, however, we are actually seeing the opposite. Consumers are shifting their makeup spending away from mass retail channels and toward department stores, beauty specialty stores, and other prestige outlets that carry products with higher-price points. In fact, prestige makeup unit sales share increased by 3 points in the first quarter (Q1) of 2023 versus the same period last year. This growth could indicate a consumer desire to treat themselves with a non-essential, yet affordable, prestige-beauty luxury. We observed this phenomenon in 2022 and it continues to prevail in 2023. This “treat” mindset ties into the “Lipstick Index,” which reveals that lipstick sales are inversely related to the economic state of the country. While cosmetics other than lipstick can be part of this phenomenon, lip products do seem to best meet this criterion. Lipstick and lip gloss are more likely than any other makeup products to be purchased on impulse, according to Circana’s Makeup Consumer Report. Over 40% of lipstick and lip gloss users said that their most recent purchase of a lip product was an impulse one. The “treat” mindset becomes more evident when we compare how lip makeup sales are faring in the mass market to prestige channels. While lip was the fastest-growing makeup segment in both markets in Q1, it grew more than 1.5 times faster in prestige than in mass – and the more expensive designer brands grew even faster. Whether it’s a mood-booster, a form of escapism, or a means of self-expression, beauty products hold a special place in consumers’ hearts. Contributing to our emotional wellbeing is a big reason the beauty industry has been so resilient during shaky times. Now that I think about it, perhaps I am not failing at my New Year’s resolution after all; maybe, through this emotional investment, I am actually giving myself exactly what I need. Get insights straight to your inbox

Year-over-year total B2B technology reseller channel sales were challenged, declining by 9% CHICAGO, May 31, 2023 – According to Circana , formerly IRI and The NPD Group, sales revenue in the U.S. B2B technology reseller channel fell 9% year over year in the first quarter (Q1) of 2023. While software sales revenue increased 6%, it was not enough to offset sluggish hardware sales, specifically devices, which drove the majority of the overall B2B industry decline. Sales for the quarter remained 10% above Q1 2019. “Sales cycles for technology products were pulled forward during the pandemic and, as a result, spending in the B2B tech channel is shifting to other needs,” said Mike Crosby, executive director and B2B technology industry analyst for Circana . “While reseller channel sales are likely to improve in the second half of this year, we expect the timing of device refresh cycles, coupled with technology needs related to the sunsetting of Windows 10, to be key growth drivers in both 2024 and in 2025.” Despite challenges on the hardware side, Circana’s Reseller Tracking Service data, which reports sales information from the top national solution providers and B2B e-commerce sites, shows nearly every commercial software category experienced sales revenue growth year over year in Q1. Security information and event management (SIEM) and data protection and recovery software saw the largest gains, each increasing 17%. Cloud platform services also continued to grow, with sales revenue gains of 21% this quarter. “Companies are downshifting their IT spend and delaying major device refreshes until economic conditions begin to normalize,” noted Crosby. “While hardware purchases are under greater scrutiny, investments in commercial software and cloud platform services are gaining momentum as they are instrumental in keeping businesses safe and connected.”

—Restaurant loyalty program points and rewards redemption increased by 26% Chicago, May 25, 2023 — Lingering inflation and higher food prices in the first quarter of 2023 had many foodservice consumers looking for a deal. Customer visits to restaurants and retail foodservice outlets that took advantage of a deal rose by 8% in the quarter ending March compared to a year ago, reports Circana , formerly IRI and The NPD Group. The increase in deal visits helped to grow total commercial foodservice visits by 1% over a year ago, a traffic gain after four consecutive quarters of flat or declining growth. Although 73% of all foodservice visits are not on a deal, those visits were flat in the quarter compared to the visits on a deal growth. Buy some, get some, and coupon deals were among the most popular deal types, growing 13% and 18%, respectively, compared to a year ago. Discounted price deals increased by 8% and daily specials by 6%. Combined item specials declined. Most of these deals (84%) were used at quick service restaurants (QSRs), corresponding with the fact that QSR visits represent most of the total foodservice traffic. Visits to QSRs increased by 2% and deal visits by 7% in the quarter over last year. Full service restaurant (FSR) traffic declined by 1% in the period, but visits on a deal were up by 4%, reports Circana. Loyalty programs were also a source of deals and rewards during the quarter. About a quarter of all restaurant visits use a loyalty reward program, earning and redeeming points. Loyalty rewards and points redeemed at restaurants during the first quarter increased by 26% compared to the same quarter a year ago. Breakfast and A.M. snack periods are the most popular dayparts for loyalty points and reward redemption. “Last year, deal traffic was flat as rising costs deterred operators from offering deals, and the deals offered weren’t a value from a consumer perspective,” says David Portalatin, Circana food industry advisor and author of Eating Patterns in America . “Although inflation is now moderating, food prices are up 7% from a year ago, and consumers are looking for deals that will offset higher prices. Operators are using deals to drive more traffic.”

Turnkey solution empowers smaller companies to unlock big growth CHICAGO – May 18, 2023 – Circana , formerly IRI and The NPD Group, today announced the launch of Liquid Data Go, unleashing outsize growth for small to midsize CPG companies through comprehensive data, insight, and reporting solutions . In less than 24 hours, clients can easily and affordably access consumer and market data that is critical to their business success. Liquid Data Go , available on Circana’s industry-leading Liquid Data platform with the latest Unify+ visualization, provides insights into shopper behavior and retail trends that level the playing field and help smaller CPGs compete effectively in the market. “Big data no longer needs to be synonymous with big budgets,” said Jeremy Allen, president, Global Consumer Packaged Goods, Circana. “With Liquid Data Go, small and midsize CPG companies can access insights just like the larger ones do. This turnkey solution is essentially an ‘analyst in a box,’ providing quick, intuitive access to insights on trends and performance. With just a few clicks, users can compile a full presentation that identifies business opportunities and offers strategy recommendations.” Liquid Data Go was designed to meet the unique needs of small to midsize CPG companies. Curated content is organized around the client’s most pressing business questions, enabling data-driven decisions that are foundational for growth. Liquid Data Go enables clients to engage with retailers, secure distribution, drive trial and interest, and launch innovative new products with ease. Now available within the U.S. and expanding globally in the near future, the solution features an intuitive, self-serve model that requires no data expertise with flexibly priced packages. The data available through Liquid Data Go spans multiple retailers, markets, and channels, including e-commerce. To learn more about Liquid Data Go, visit https://www.circana.com/liquid-data-go/ About Circana’s Mid-Market Growth Practice Circana’s Mid-Market Growth Practice provides high-tech and high-touch support for small to midsize businesses. Regardless of company size, Circana has a data solution that drives understanding and growth. Companies benefit from access to all the same tested and proven solutions offered to Circana’s global partners, enabling companies of all sizes to democratize data, streamline analytics and, ultimately, win in the marketplace. For more information on Circana’s comprehensive portfolio of solutions specifically crafted for small and midsize brands, please contact Robert Porod at robert.porod@circana.com .

—Rice cooker sales are up 34% from a year ago Chicago, IL., May 17, 2023 —Rice cookers, first launched in Japan in 1955, were introduced to U.S. consumers in the mid-1970s, and for those who cooked rice frequently, it was a game changer. Now, five decades later, consumers are reimagining rice cookers, and rice cookers have evolved. Sales of the straightforward appliance are up 34%, and units sold increased by 19% in the 12 months ending March 2023 compared to a year ago, reports Circana , formerly IRI and The NPD Group. “In a world of high-tech smart appliances, the simplicity and reliability of rice cookers have caught consumers’ attention,” says Joe Derochowski, home industry advisor at Circana . “Even though the appliance’s name is specific to rice, consumers are now finding other uses for rice cookers, like making oatmeal, steaming vegetables, chili, pasta, and more.” In addition to preparing foods other than rice in the cookers, Derochowski says the diminishing interest in low carbohydrate diets also helped to popularize rice cookers as rice and other carbohydrates are consumed more. In the three months ending March 2020, nearly 31% of U.S. adults said they were trying to avoid carbohydrates; the percentage decreased to 24% in the three months ending March 2023, reports Circana. Circana’s 2023 Kitchen Audit estimates that 28% of U.S. households own a rice cooker. Rice cookers have evolved to meet changing consumer needs, and among options are induction, electric, gas, and multifunction. Rice cooker buyers skew toward young adults, ages 18 to 34, live in a household size of four or more, and are equally represented across all household income groups. “Rice cookers are a good example of how taking a classic product and modifying it to offer the functionality and style consumers are looking for can go a long way in staying current,” says Derochowski. “With a reliable and trusted appliance, like rice cookers, just a little innovation can go a long way.”

Lifestyle changes are the catalyst for shifts in category-level spending momentum CHICAGO, May 16, 2023 – In April 2023, discretionary U.S. general merchandise retail sales revenue fell 7%, compared to April 2022, and unit sales fell 8%. April declines are consistent with declines in March, but stories of growth resulting from consumer lifestyle changes does exist in certain categories. Prestige beauty and apparel represent more than half of the top 20 performing categories in the first quarter, led by products like face makeup, fragrance juices, woven shirts, and sportscoats, according to Circana , formerly IRI and The NPD Group. “Whether it’s the growing influence of social media, returning to the office, or just getting out to more activities and socializing, the social side of life is back,” said Marshal Cohen, chief retail industry advisor for Circana . “However, the enduring high prices of grocery items are forcing consumers to prioritize their spending decisions and make trade-offs.” Consumer packaged goods (CPG) trends are also maintaining their trajectory from recent months, exhibiting diminished demand alongside elevated prices. Food-and-beverage sales revenue increased by 6% through April, but unit sales fell 2%. Non-edible CPG sales revenue was up 3%, and unit sales were down 5%. A deeper dive across CPG and foodservice performance reveals a search for convenience resonating with consumers, as sales of breakfast foods and other items are softening at grocery stores, while the morning meal is adding traffic momentum at restaurants. “While consumers are still feeling financially crunched, they are also resuming their busy social schedules, and it is being reflected in the details of how they are spending,” said Cohen, “Manufacturers and retailers need to understand what is taking priority for the consumer, think about how that may evolve, and be prepared to respond to the opportunities that will come with the next phase of changes.”

SUMMARY In the first quarter of 2023, U.S. inflation slowed, as did price-per-unit increases in the convenience and multi-outlet channels. In response, consumers felt continued financial anxiety along with optimism for the future. Circana’s new report, “The Convenience Store Landscape Q1 2023,” explores the latest trends in the convenience channel and how they compare to the broader MULO landscape. It also shares the top private label, foodservice, and price and promotion tactics that c-store retailers should employ to drive growth in the coming months. HIGHLIGHTS Convenience channel YOY sales growth accelerated in Q1 2023 (+4.7% vs. +3.4% in 2022) while MULO continued to outpace all other channels with 7.5% growth. C-store shopper count (+4.3%) and trip count (+7.4%) continued to show YOY growth. Channel YOY private label sales dollar growth (+7%) did not keep pace with national brands (+11%) in comparable categories in Q1 2023. But 80% of consumers plan to purchase more value brands in the next six months — highlighting a strong retailer opportunity. C-stores have seen a YOY decline in foodservice traffic, while that traffic has increased in QSR. Retailers should monitor trending items and leakage across the foodservice categories to capture share from QSR competitors. Retailers should closely manage price and promotions in the coming months to retain shoppers and limit leakage to mass and other competitive channels.

I don’t know about you, but it’s impossible for me to set foot in a toy store without buying something. I don’t indulge in fancy shoes, handbags, or makeup, but leave me alone in a retail toy shop (or any retailer for that matter) and I will always buy something. It could be a new game to play with friends and family, a jigsaw for the winter evenings by the fire, a figurine to complete my collection in my home office, or a fidget gadget to indulge during Teams calls. My last purchase was different from what I usually buy. It was my very first LEGO set! I have always been into toys and games for as long as I can remember, even before working in the industry. However, for many consumers, the focus on toys started with pandemic lockdowns and the associated boredom. Toys and games became a rediscovered pastime for individuals and families, and they have continued buying into the category ever since. According to our latest report, “Demystifying the Kidult Toy Market in Europe,” the so-called kidult segment, which includes all toys and games bought for a recipient aged 12 and older, was valued at €4.6 billion in 2022 across the EU 5 (i.e., UK, France, Germany, Italy, and Spain); the segment’s incredible growth has been outpacing sales to children for a while now. Toy sales to children have declined by €200M since 2019, but they have increased by €1B for kidults. Back in 2019, kidult sales represented just 23.4% of total toy sales, but jumped to 28% in 2022! Still, this only represents €15 per head per annum, which is peanuts when compared to dining out, a new shirt, a pair of shoes, an air-fryer, or a new smart phone. Yet the shelf life of toys and games very often outlives those kinds of products. That’s why I think the segment could get much bigger, presenting almost unlimited opportunities for brands, license owners, and retailers. Why should the industry focus more on the kidult market? Simply put, Europe is facing a demographic challenge driven by an aging population. In the space of 10 years, the number of children under 12 years of age has decreased by 2%, across Europe. That’s three-quarters of a million fewer child consumers. Though Germany and the UK have experienced an increase in the child population up to 11 years of age, France, Italy, and Spain have seen significant declines. And the adult population is rising in all countries, presenting incredible opportunities for toy manufacturers and retailers in the kidult market. Perhaps we will see a slowdown in 2023 as consumers pull back on toys due to the increased cost of living, but I remind you that the kidults market has been outpacing the kids core part of the industry for a very long time. And as a self-confessed kidult myself – one who happens to work in the industry – I believe there are still plenty of growth opportunities that brands, license owners and retailers can capture to grow this market much further. Get insights straight to your inbox