THE U.S. MARKET FOR DIABETIC & PRE-DIABETIC CONSUMER PRODUCTS

Transcription

1 THE U.S. MARKET FOR DIABETIC & PRE-DIABETIC CONSUMER PRODUCTS EXPLORING DIETARY FOOD & DRINKS OPPORTUNITIES SYMPOSIUM, CARDIFF, 22 APRIL 2015 John Zindar, European-American Business Organization, Inc.

2 Market Overview

3 Number One Market: Russia

4 Market Opportunity - U.S.A. Percentage of U.S. Adults Age 20 to 74 Classified as Overweight and Obese

5 More than 35% of U.S. Adults are Obese and more than 50% are Overweight

6 Prevalence of Self-Reported Obesity Among U.S. Adults Source: Center for Disease Control

7 20% of U.S. Children are Obese Source: Center for Disease Control

8 Diabetes in the United States =>15 30% of people with pre-diabetes will develop type 2 diabetes within 5 years Source: Center for Disease Control, 2014

9 Diabetes in the United States

10 Government Response

11 Michelle Obama Let s Move set-for-an-overhaul/af1ce834-4c5e-410e-b2cf- FA html?mod=wsj_video_

12 The Government Can t Tell You What to Eat

13 Proposed Changes in Nutrition Label

14 U.S. Food Pyramids 1992: Food Guide Pyramid 2005: MyPyramid Food Guidance System

15 2011: MyPlate Plate shape to help grab consumers attention with a new visual cue icon that serves as a reminder for healthy eating, not intended to provide specific messages

16 Industry Response

17 Fast Food Industry and Healthy Nutrition

18 Retail Value of Diabetic Foods in the Unites States, , in million U.S. Dollars Source: Statista

19 Competitive Overview

20 Diabetic Focused Brands Glucerna Extend Level Life

21 Level Life

22 Glucerna

23 Extend

24 Weight-Loss Brands Many brands market themselves as weight-loss, hunger control and blood sugar control brands ZonePerfect In Balance Health Corp Atkins Target pre-diabetic people and people who want to lose weight - overlap

25 Organic, Health Food Brands Amy s Kitchen Kashi Nature s Path Wide product portfolio Target people with diabetes and other special dietary needs

26 Healthier Nutrition Trend Government initiatives At the beginning of 2015 the Obama administration proposed a set of rules aimed at providing healthier food options at schools and day care centers (WSJ) Consumer awareness 55% of U.S. consumers are trying to limit sugar intake, through making health-conscious food choices (Datamonitor)

27 Healthy Snacks - Examples

28 Trends and Product Innovation

29 Marketing and New Ingredients Glycemic Index is too scientific for U.S. consumer Instead: Helps maintain stable blood sugar. Resistant starch: HiMaize, CarbSteady (Glucerna)

30 Market Segments

31 Age-adjusted Prevalence of Obesity and Diagnosed Diabetes Among U.S. Adults Aged 18 Years or Older No Data <4.5% 4.5% 5.9% 6.0% 7.4% 7.5% 8.9% >9.0% Source: Center for Disease Control

32 Diabetes and Race/Ethnic Background Total Population of Ethnic Group 3.7 million 41 million 55 million 16 million 200 million Source: Center for Disease Control, 2012

33 American Indian and Alaska Native Population as Percentage of Total Population by County, 2010 Source: U.S. Census Bureau, 2010 Census

34 Hispanic Population by State, 2010 Source: U.S. Census Bureau, 2010 Census

35 Sale Channels

36 Retail Channels Grocery Stores Specialized Grocery Stores Health and Organic Pharmacies Online

37 Focus on Specialty Diets Segment

38 Regulatory Framework

39 Regulatory Bodies FDA Product Registration Food Labeling Guide Custom and Border Protection Agency (CBP) United States Department of Agriculture (USDA) Health certificates for products contain meat, egg, milk, poultry, or other animal origin products;

40 Strategic Recommendations Be Realistic, Flexible & Prepared to Invest Deal with Compliance Up-front Focus on Limited Test Markets & Points of Sale Product Offering Considerations Marketing Considerations Pricing Considerations In-Market Partners Distribution & Sales e-commerce Associations & Trade Shows M&A, VC, Licensing

41 About EABO and the EEN

42 About the European-American Business Organization, Inc. Full service consul-ng firm specializing in European and U.S. business expansion Advise firms on the challenges and considera-ons of doing business abroad: Regulatory & compliance issues Marke-ng & compe--ve analyses Iden-fying & qualifying new clients & strategic partners Cross- border tax, legal & immigra-on issues Trade & ins-tu-onal mission management Public & private financing search Government rela-ons Member of: Enterprise Europe Network (EEN) US-EU Match Consortium Transatlantic Business Dialogue

43 EEN Network European-American Business Organization, Inc. 405 Lexington Avenue, 37th Fl., The Chrysler Building New York, NY BIC Innovation Pencoed Technology Centre, Bridgend, South Wales, CF35 5HZ

44 Contact Information John M. Zindar, Partner 405 Lexington Avenue The Chrysler Building, 37th Floor New York, NY Phone: