Marketing Health and Nutrition: Does it Work?
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1 Marketing Health and Nutrition: Does it Work? Julie G. Adams Almond Board of California 14 June
2 Case Study in less than 15 minutes! Why demand creation is a must, not an option, for almonds Capitalizing on global trends Coming up with a consistent Global Strategy Driving from awareness to change 2
3 Scope of the California Almond Industry Spanning 500 miles throughout the Central Valley Farm value Approximately $3 Billion 100% of U.S. production Approximately 80% of worldwide production #1 California agriculture export* Top U.S. horticultural export* * Value Basis 3
4 Steady Growth, Record Production Export Domestic Crop Size 1,800 1,600 1,400 Global demand and shipments anticipated to stay firm 1,383 1,615 1,471 1,800 1,600 1,400 1,200 1, , , , Record 698 Crop ,200 1, Million Pounds forecasted for 2011/12 Source: Almond Board of California 4
5 Global Marketing Strategy Geographic: U.S./Canada, EU China and India Japan, Korea Category: Chocolate Bakery/Patisserie Snack Market, Nutrition & Technical Research 5
6 Strategy Development: Understand the Potential for Growth Health Consumer Culture Economy Growth Potential Key Categories Distribution 6
7 Building a Comprehensive, Powerful Program Target audience integration Consumers Health Professionals Food Professionals Leveraging science and research Consumers Research Health Professionals Creating advocates and influencers Volume Drivers Innovators 7
8 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 8
9 Almond Nutrition Research Overview: 1995 to Present Substantiate the health and nutritional benefits Strong heart health focus 2003 U.S. 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 9
10 Leveraging the Health Claim The FDA announced the first qualified health claim for conventional food on July 15, 2003 Scientific evidence suggests, but does not prove that eating 1.5 ounces per day of most nuts, such as almonds, as part of a diet low in saturated fat and cholesterol may reduce the risk of heart disease Almonds fast to leverage health claim in advertising 10
11 Professional Audience Advertising Evolution An evolving message has shifted from taste and general health to taste and heart health Nutrition Taste July Taste and Versatility Taste and Nutrition Taste and Heart Health 11
12 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 Evolution of almond campaign message Almonds make food better Almonds make me better Almonds make life better everyday 12
13 Driving for a Change in Behavior Almond usage, top-of-mind awareness and liking has increased with program spending U.S. Marketing $ Per cap U.S. Shipments Top-of-Mind Liking Health Perceptions Purchases Per Month
14 The Final Proof is in the Sales! Almond snack nut volume sales have grown dramatically in the U.S. over the past decade 405 Nut Volume Sales in U.S. Grocery (Millions of Pounds) All nuts (+5% since 2005) Nut products with almonds (+23% since 2005) Almond-only products (+64% since 2005) Source: IRI
15 What About the Rest of the World.. Can the same strategy work in other markets? 15
16 Working Hand in Hand: Science and Marketing Marketing Scientific Affairs 16
17 California Almonds in Europe: Campaign Evolution Almonds as an essential healthy ingredient Getting health professional advocates on board From disease prevention to wellness & lifestyle Focus on healthy snacking Recipe development Celebrity chef partnerships Heart-health research communication (PEP) Health Professional Advisory Board Medical congresses Trade/Food professional PR & advertising Guardian/Sainsbury Consumer summer promo Amanda Ursell nutritionist spokesperson UK consumer ad campaign 17
18 India: Health Position Already Established Existing culture of giving, festivals Inherent belief in health benefits Schools, child health and nutrition Building up to direct consumer advertising, pr 18
19 In Summary: Build on Science, Become Essential Significant investments in food safety, quality, and research Consistent, integrated programs long term market commitment Almonds become compelling Accepted as healthy Relevant and convenient to incorporate into consumer lifestyle Ultimate Objective: Be Essential 19
20 Thank you! Almond Board of California 1150 Ninth Street, Suite 1500 Modesto, CA 95354, USA Tel: +1 (209) Fax: +1 (209)
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