1

California Almonds:

Creating Demand and Value

Julie G. Adams

NUCIS ITALIA Conference

at Marca 2011

19 January 2011

2

Case Study in 15 minutes!

About the Almond Board

About the Almond Industry

Global Strategy: How we Started

European Approach

3

About the Almond Board of California

Grower-enacted, established in

1950

• Represents growers and

handlers (processors)

• “Quasi governmental”

Under the supervision of USDA

Does not set, track, or quote

almond prices

Voluntary 10 member Board of

Directors (5 growers, 5

handlers)

Funded by assessment $.03 / lb

Leadership Development Committee

ABC Board of Directors

International Committee

Bee Task Force Production Research Committee

Environmental Committee

Almond Quality

& Evaluation Task Force Food Quality & Safety Committee

PR& Advertising Committee

Global Technical/Regulatory

Affairs Subcommittee

Nutrition Committee

Admin & Finance Committee

Reserve Committee

39 employees based

in Modesto,

Washington, DC,

and London

4

Industry On-Going Commitment, Investment

Nutrition Research

Discover and document

health and nutritional benefits

Heart health

Nine clinical studies over the last

13 years have shown that

almonds can lower cholesterol as

part of a diet low in saturated fat

Weight management

Recent studies indicate that

almonds may improve satiety

and can be eaten without the

fear of weight gain

Industry Research

Track and improve production

Environmental research

Production research

Technical/Functional

research

Consumer Research

Understand consumer attitudes

Market Research

Understanding market

opportunities and threats

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The Scope of the Industry

Spanning 500 miles throughout

the Central Valley

100% of U.S. production

6,000 growers, 100 “handlers”

Approximately 80% of

worldwide production

#1 California agriculture export*

Top U.S. horticultural export*

Farm value

Approximately

$3 Billion

* Value Basis

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Bearing Acreage vs. Almond Production

**2010-11 estimated

Source: Almond Board of California

-

200000,0

400000,0

600000,0

800000,0

1000000,0

1200000,0

1400000,0

1600000,0

19

92

-93

19

93

-94

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-95

19

95

-96

19

96

-97

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97

-98

19

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-99

19

99

-00

20

00

-01

20

01

-02

20

02

-03

20

03

-04

20

04

-05

20

05

-06

20

06

-07

20

07

-08

20

08

-09

20

09

-10

**2

01

0-1

1

Th

ou

sa

nd

Po

un

ds

Bearing Acres Production Lineare (Bearing Acres)

7

167 210 211 239 292 312 332 304 368 395 411 450,0

406

503 529 582

691 712 653 610

698

866 978

1022 756,0

517,0

830,0 824,0

1084,0 1033,0 998,0 912,0

1117,0

1383,0

1615,0 1471,0

-

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

1600,0

1800,0

-

200,0

400,0

600,0

800,0

1000,0

1200,0

1400,0

1600,0

1800,0

199

8-9

9

199

9-0

0

200

0-0

1

200

1-0

2

200

2-0

3

200

3-0

4

200

4-0

5

200

5-0

6

200

6-0

7

200

7-0

8

200

8-0

9

200

9-1

0

Mill

ion

Po

un

ds

Export Domestic Crop Size

Steady Growth, Record Production

Source: Almond Board of California

Global demand and shipments

anticipated to stay firm

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Western Europe

43% Asia Pacific

32%

Middle East/Africa

15%

Canada/Mexico 5%

Central/ Eastern Europe

4% Other 1%

Significance and Diversity of Export Shipments

Source: Almond Board of California

449,504

143,359 133,043 109,041

83,933 67,198

52,930 39,419 36,597 35,703 34,639

Top Ten Export Markets FY 2009/10

Shipments Million Pounds

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California Almonds:

Creating and Supporting Demand Worldwide

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Determining Where (and how) To Invest

U.S.

Canada

Mexico

Mercosur

W. Europe

Russia C./E. Europe

India

China

N. Asia

SE Asia

-1.5

-1

-0.5

0

0.5

1

1.5

-0.8 -0.6 -0.4 -0.2 0.2 0.4 0.6

Almond Experience

Market

Volatility

Almond Inexperience

Market

Stability

Established Evolving Emerging Exploratory

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Strategy Development: Understand the Potential for Growth

Growth

Potential

Consumer Culture

Health

Key Categories

Economy Distribution

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Global Marketing Strategy

Market, Nutrition &

Technical Research

Geographic: U.S./Canada, EU

China and India

Japan, Korea

Category: Chocolate

Bakery/Patisserie

Snack

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North America: Where We Started in the Late 1990’s

Consumers:

• Practically no top-of-mind awareness

• No positive health associations, some negative associations with Cholesterol

• Extremely low awareness of almonds as ingredients in CPG and Foodservice

• No differentiation amongst the nuts

Challenge: Raise awareness of almonds as a tasty, nutritious ingredient and

snack

Health Professionals:

• Fat and Cholesterol confusion

• Calorie content overshadowed any nutrient or health benefit

• Nuts not top of mind for patient recommendations

Challenge: Overcome the negative associations and raise awareness of the

benefits of almond consumption

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Comprehensive, Powerful Program

Research

Health

Professionals

Innovators Volume

Drivers

Consumers

Integrated program leveraging

research, PR

• Consumers

Advertising

PR

• Health Professionals

PR

Advertising

• Food Professionals

Advertising

PR

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Almond Nutrition Research Overview: 1995 to present

• Substantiate the health

and nutritional benefits

• Strong heart health

focus

• 2003 FDA all-nut

qualified health claim

• Over 75 papers now

published

• Partnering with leading

universities, institutions

globally: UK, China,

India

• $10 million research

investment to date

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Consumer Advertising Evolution

An evolving message has shifted from taste and general

health to taste and heart health

Nutrition

Taste and Versatility Taste and Nutrition Taste and Heart Health

Taste

1998–2000

2001–2003

July 2003

2004 2006

2005

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California Almonds Advertising in North America

Over 10-years of advertising and public relations in the North America market to

raise awareness and demand for almonds

Almonds are viewed as an essential, smart and contemporary

Almonds make

food better

Almonds make

me better

Almonds make

life better

everyday

Evolution of almond campaign message

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California Almonds Growth in North America

Almond usage, top-of-mind awareness and liking has

increased with program spending

100

120

140

160

180

200

220

240

2001 2002 2003 2004 2005 2006 2007 2008 2009

U.S. Marketing $

Per cap

U.S. Shipments

Top-of-Mind

Liking

Health Perceptions

Purchases Per Month

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Marketing to the European Consumer

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California Almonds in Europe: Campaign Evolution

Almonds as an

essential

healthy

ingredient

2002 2006 2008 2010 2011

Getting health

professional

advocates on

board

From disease

prevention to

wellness &

lifestyle

Recipe

development

Celebrity chef

partnerships

Heart-health research

communication (PEP)

Health

Professional

Advisory

Board

Medical

congresses

Trade/Food

professional

PR & advertising

World Pastry Cup

Sponsorship

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Leveraging Research: EU Article 13 Health Claim Submission

Food Benefit Conditions/claim

Nuts Heart health Eating 30g of nuts/day (e.g.

almonds, hazelnuts, pistachios,

walnuts) as part of a balanced diet

helps maintain heart health.

Nuts Weight

management (via

satiety by protein

and fibre)

Eating 30 g of nuts per day as part

of an energy-restricted diet helps

maintain a healthy weight.

Almonds Maintains healthy

blood total & LDL

cholesterol and

heart health

Consuming a handful (30g) of

almonds per day as part of a diet

low in saturated fat, helps to

maintain healthy blood cholesterol

and promotes heart health.

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California Almonds in Europe: UK Campaign

Almonds as an

essential

healthy

ingredient

2002 2006 2008 2010 2011

Getting health

professional

advocates on

board

From disease

prevention to

wellness &

lifestyle

Focus on

healthy

snacking

UK consumer

handbag

campaign

/consumer

advertising

Recipe

development

Celebrity chef

partnerships

Heart-health research

communication (PEP)

Health

Professional

Advisory

Board

Medical

congresses

Trade/Food

professional

PR & advertising

World Pastry Cup

Sponsorship

Guardian/Sainsbury

Consumer summer promo

Paid-for media partnerships

(Good Housekeeping)

Amanda Ursell nutritionist

spokesperson

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European Communication Approach

• Print & online advertising

• Celebrity spokespeople

• Paid for media

• Press Office

• E-Newsletter

• Dietician/Nutrition Outreach

• Advisory Board

• E-Newsletter

• Health Claim

• Press Office

• Innova partnership

• E-Newsletter

• Collateral development

• Food Professional advertising

Budget by Target Audience

Manufacturers

Retailers

18%

Health

Prof. 7%

Consumers

75%

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Almonds: Almond Messaging

Almonds become compelling, and

relevant when positioned as a

healthy, convenient snack

• Simple shift from ingredient

for baking and holidays

Using the almond tin to express

relevance of almonds as a snack,

lifestyle food choice

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New UK Consumer Advertising: Launched January 2011

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In Summary: The California Almond Partnership

Significant investments in food

safety, quality, and research

Stable supply to meet demand

Integrated programs to benefit the

long-term wellbeing of producers,

customers, and consumers

Versatility and value-adding

advantages

Proactive and committed to the

long-term health of the industry

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Almond Board of California 1150 Ninth Street, Suite 1500

Modesto, CA 95354, USA

Tel: +1 (209) 549-8262

Fax: +1 (209) 549-8267

www.almondboard.com

Thank you!