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