Marketing by the Numbers
EMILY FLEISCHMANN Vice President, Global Market Development Almond Board of California
LAUREL MUIR Managing Partner, SRG VISION California Almonds make life better by what we Almond Board grow and how we grow. of California— VISION AND MISSION Expand global consumption MISSION of California almonds through leadership in strategic STATEMENTS market development, innovative research, and accelerated adoption of industry best practices. ALMOND BOARD MARKETING OBJECTIVES
Build long-term world-wide demand for 1 California almonds Create an environment in which almond 2 perceptions and almond brands thrive Address issues and seize opportunities that 3 are best handled at an industry-wide level Contribute to the financial well being 4 of the industry
11 MARKETS WITH PROGRAMS
NORTH EUROPE ASIA AMERICA • UK • China • Canada • France • India • U.S. • Germany • S. Korea • Mexico • Italy • Japan REGIONAL MANAGERS
NORTH AMERICA INDIA EUROPE CHINA SOUTH KOREA Jenn Freeman Sudarshan Mazumdar Dariela Roffe-Rackind Connie Cheung & JAPAN Murielle Kim GROWTH INNOVATION GROWER IMPACT Marketing by the Numbers 439% AN AMAZING TRAJECTORY
CA Almonds Trended Production 2,500
2,000
1,500
1,000
500
-
2008 2011 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2009 2010 2012 2013 2014 2015 2016 2017 2018 Crop Year COMPARISON TO GROCERY GROWTH
2013-2017 CAGR
Extra Small 4.3% 2018 CATEGORY GROWTH RATES Small 3.6% Mid-size 1.9% • Ice Cream: 1.8% • Cereal: 0.3% Large 1.1% • Chocolate Candy: -1.3% GROWTH ACROSS FARMING
SOYBEANS CORN TABLE GRAPES WINE GRAPES STRAWBERRIES
20 YEAR CAGR 1.5% 2.0% 2.7% 2.3% 2.8% 42,532 ALMOND FORMS HAVE EXPLODED 2005-2009 2014-2019
TOTAL NEW PRODUCTS 11,152 42,532
BY INGREDIENT Almond 10,654 39,344
Almond Flour 185 1,112
Almond Butter 260 910
Almond Milk 9 760
Almond Oil 43 328
Almond Protein 0 66
Almond Milk Powder 0 11 AND WHERE ALMONDS ARE FOUND IN THE GROCERY STORE HAS EVOLVED
2006: 2019: 38% Snack almonds 54% Snack almonds 62% Ingredient 19% Almond milk 6% Almond butter 21% Ingredient 3% FARM PRICE HAS BEEN MOVING UPWARD
Farm Price per Pound 4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
- 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19
Farm Price/lb Linear (Farm Price/lb) LEADERSHIP ROLE IN WORLD OF FOOD AND AG LOOKING BACK… HOW DID THIS HAPPEN PRE-2000’s ALMOND SUFFERED FROM MISPERCEPTION HOWEVER OVER TIME CALIFORNIA ALMONDS MEANING HAS EVOLVED
HEART HEALTHY LIFESTYLE HEALTHY NUT NUT 4 KEY ELEMENTS
+ Redefining our importance in health
+ Changing how almonds fit in people’s lives
+ Relevant to how people eat
+ Staying focused on the long-term 175 BUILDING OUR UNDERSTANDING OF ALMONDS AND NUTRITION
HEART HEALTH: 22 Research Projects 34 Scientific Publications to Date
DIABETES AND METABOLIC SYNDROME: 20 Research Projects 19 Scientific Publications to Date
WEIGHT MANAGEMENT, SATIETY AND GUT HEALTH: 26 Research Projects 45 Scientific Publications to Date
SKIN HEALTH: 2 Research Projects 1 Scientific Publication to Date
OTHER AREAS OF RESEARCH: • Cognition • Gut Microbiome • Composition and Calorie Count HEALTHY FATS & PROTEIN TOPPED THE DIET TRENDS SHIFTING FROM INGREDIENT TO SNACKING
1999 2001 2005 2007 2010 2013 2018 Almonds Are In Talking Almonds Best of Both Worlds How To A Handful Of… Crunch Power Own Your Everyday
INGREDIENT SNACK
CONSUMER PERCEPTIONS
INDIA CANADA CHINA Highest health Almonds rank #1 ITALY scores and top in all category Almonds rank #1 JAPAN In just two years, GERMANY continued association top snack almonds beat out US growth association Almonds top nut walnuts Snacking MEXICO snacking opportunity. Market Snacking has and Crunch firmly entrenched in been on a Heavy Users have delivers ingredient dramatic rise jumped in the last S. KOREA since 2005 two years UK Almond #1 awareness Health Awareness has tripled since FRANCE 2011 Almond awareness has doubled since 2011 and health
scores on top
68% 68%
Strong bakery bakery Strong associations
81% 81% crunchy most
#1 #1 nut Snack association
#1 Heavy Users #1 Users Heavy
Rise Rise of Snacking
in awareness awareness in
3.5X 3.5X increase
Highest health scores health Highest
#1 #1 nut Snack association
2X 2X awareness #1 Bakery #1 and Snacking,Chocolate OPPORTUNITIES AND CHALLENGES AHEAD KEY CHANGE FORCES
TRADE ANXIETY WARS AND DESIRE PLANTS SNACKIFICATION INNOVATE CENTER FOR RULE OF SOCIETY EVERYTHING STAGE CONTROL POLITICAL & 1 TRADE CHALLENGES INDIA CHINA Retaliatory tariffs 60% retaliatory tariff on U.S. almonds at on U.S. kernel and U.S. Harmonization of 41 rupees per kilogram inshell almonds Commented on FDA goods return inshell and 120 rupees FDA standards of and reconditioning per kilogram kernel Collaborated identity for plant- procedures with Chinese industry In 2019, based products Engaged with Indian regarding tariff Incentives to help government over exclusion growers afford new labeling, Goods and technologies Services Tax (GST) Ongoing effort to achieve market ABC actively access for pelletized hulls addressed almond-related issues in several key EU JAPAN EU reapplied Reprocessing Phytosanitary Limited trade agreement, <1% import options certificates bringing tariffs on U.S. markets controls for identified as requirement almonds to 0% almonds under an alternative instituted the Pre-Export to rejections Strategized with U.S. Check (PEC) Coalition government to address program focusing on aflatoxin rejections pesticide MRLs WELCOME TO THE 2 ANXIETY ECONOMY ANXIETY ECONOMY
DRIVERS RESULTS • Privacy • Behavior driven by fear • Environmental crisis • Dystopic landscapes • Workplace stress • New categories • Political upheaval • The sex recession • Brexit DIETS CONTINUE
35 3 PLANTS RULE
2019 SUMMER MEETING 36 HEALTH a public health consensus More Plant Foods, Less Meat TASTE
New Menu Introductions PURCHASE INTENT PRIMARY PROTEIN SOURCE 58% 55% 55%
38% 38% 32% 30% 26% 26%
15%
Nuts Beans Peanuts Lentils Quinoa Wheat protein Soy protein Pea protein Tofu / tempeh Mycoprotein ENVIRONMENT VALUES
CPG PRODUCT MOTIVATORS FOOD WASTE & SUSTAINABILITY REDUCING FOOD WASTE REQUIRES CONSUMER, CPG AND AGRICULTURE ACTION HOW WE USE HOW WE GROW THE IMPORTANCE OF 4 SNACKING SNACKING CONSUMPTION
UK USA $25.3 $130.9 CHINA $53.3 INDIA TOTAL BRAZIL $18.5 AUSTRALIA $540 $21.3 $9.9 NZ
Estimated values in Billion USD for 2019. $2.0 KEY DRIVERS:
• Fast-paced lifestyles that embrace ready-to-eat foods. THE “SNACKIFICATION” • Decline in sit-down family meals. OF SOCIETY CONTINUES TO REDEFINE WHAT • Rise in eating alone both at home A SNACK IS. and at work. • Belief that smaller, more frequent meals are healthier. THE SOARING SNACK BUSINESS SALTY SNACKS SWEET SNACKS SAVORY SNACKS
CHOCOLATE ICE CREAM CONFECTIONERY SALTY SNACKS $110B $77B
$83B SUGAR SWEET BISCUITS CONFECTIONERY SAVORY BISCUITS NUTS, SEEDS, & $73B $63B TRAIL MIXES $26B PACKAGED CAKES PACKAGED PASTRIES $27B OTHER SAVORY SNACKS $18B $33B $26B POPCORN GUM FRUIT SNACKS SNACK BARS $5B $21B $11B $14B CHILLED DAIRY PRETZELS DESSERTS FROZEN DESSERTS $3B $10B $5B OPPORTUNITIES
Fortified Snacking Snack meal Foods that offer extra Snacks as meal replacements nutrients added are appealing are a growing opportunity. to consumers looking for snacks that are more than merely a treat.
Flexible packing Protein Rich Snack for on-the-go A big opportunity to target the Pouch packaging, single on-the-go consumers looking serves, and re-sealable to satisfy a craving and boost packaging can increase energy levels. portability and help reduce waste. THE ANSWER IS 5 INNOVATION HEALTH DRIVING ALMOND FLOUR
Locako Peanut Butter Berries And Nuts Organic And Gluten Ambronite Balanced Meal Collagen Brownies Almond Flour Free Sicilian Lemon Shake: Delicious Australia, Nov. 2019 India, Oct. 2019 Sponge Cake Berries Flavor France, Sep 2019 Finland, Sep 2019 ANALOGUES DRIVE ALMOND MILK
Starbucks Almond Milk Nakula Almond and Blue Diamond Almond Mama Roz Green Caffe Mocha: Chilled Coconut Milk Breeze Vanilla Flavored Protein Oat and Espresso Beverage Yoghurt: Vanilla Almond Milk Yogurt Almond Milk US, Sep 2019 Australia, Oct 2019 Alternative With Sea Salt Indonesia, Aug 2019 Caramel Flavored Slivered Almonds US, Oct 2019 ALMOND BUTTER MORE THAN BUTTER
Base Culture 7 Nut And Nature Valley Chobani Plain Probar Meal On The Go Seed Bread Biscuits With Greek Yogurt With Blueberry Muffin United States, Apr 2019 Almond Butter Almond Butter United States, Sep 2019 Kuwait, Apr 2019 United States, Jun 2019 KEY CHANGE FORCES
TRADE ANXIETY WARS AND DESIRE PLANTS SNACKIFICATION INNOVATE CENTER FOR RULE OF SOCIETY EVERYTHING STAGE CONTROL CAPITALIZING ON THE FUTURE UPSIDE EXISTS IN SNACKING AND INGREDIENT USAGE
50% snack 50% ingredient 8 MARKETS UNDER 2 POUNDS
17/18 UNITED STATES 2.2 GERMANY 2.0 CANADA 2.0 FRANCE 1.6 ITALY 1.5 SOUTH KOREA 1.1 UNITED KINGDOM 0.8 JAPAN 0.6 MEXICO 0.2 INDIA 0.2 CHINA/HONG KONG 0.2 PORTFOLIO APPROACH
Emerging/Established/Exploratory Geographical Dispersion
Stable Politics ALMOND BOARD MARKETING OBJECTIVES
• Build long-term world-wide demand for California almonds
• Create an environment in which almond perceptions and almond brands thrive
• Address issues and seize opportunities that are best handled at an industry-wide level
• Contribute to the financial well being of the industry ALMOND BOARD MARKETING STRATEGIES
1. Invest and develop foundational platforms for industry long-term growth
2. Disciplined, data-driven strategic approach to market development
3. Highly creative, targeted, best-in-class marketing programs
14.7 BILLION THINGS TO LOOK FOR THIS YEAR NEW ADVERTISING MOMENTS OF RELEVANCE
GLOBAL MARKET DEVELOPMENT COMMITTEE
MEMBERS:
Brian Ezell Al Greenlee Brian Wahlbrink Darren Rigg Dinesh Bajaj Chair Vice Chair Sperry Farms Minturn Nut Company Select Harvest Wonderful Company Blue Diamond Growers
Jeff Smith Craig Duerr Matt Mariani Maya Erwin Warren Cohen Blue Diamond Growers Campos Brothers Farms Mariani Nut Company Blue Diamond Growers Blue Diamond Growers
Alexi Rodriguez Michael Burdeny Laura Gerhard Jared Smith Micah Zeff ALTERNATES: Campos Brothers Farms Blue Diamond Growers Blue Diamond Growers Fisher Nut Company Montpelier Nut Company
Bill Morecraft Christine Lott Paul Ewing Keith Kwan Sim Batth Blue Diamond Growers Blue Diamond Growers RPAC Almonds Taylor & Sims, Inc. Prudential Investments NUTRITION RESEARCH COMMITTEE
MEMBERS: ALTERNATES:
Dr. George Goshgarian Maggie Moon Dr. Rudy Ortiz Jan Mendenhall Chair Vice-Chair UC Merced UC Merced (Retired) Goshgarian Enterprises The Wonderful Company
Stacey Humble Billy Ng Kurt Waananen Roberts Ferry Nut Co. Blue Diamond Growers Blue Diamond Growers Christine Gemperle Blue Diamond Growers THANK YOU TO OUR INDUSTRY Marketing by the Numbers
EMILY FLEISCHMANN Vice President, Global Market Development Almond Board of California
LAUREL MUIR Managing Partner, SRG REGIONAL PRESENTATIONS AT CONFERENCE
EU4
North America India Europe China South Korea & Japan Jenn Freeman Sudarshan Mazumdar Dariela Roffe-Rackind Connie Cheung Murielle Kim
Thursday Wednesday Wednesday Wednesday Wednesday 9:45-10:30 2:15-3:15 10:45-11:30 8:00-9:00 3:30-4:30