HEALTH POSITIONING OF HONEY AS A MARKETING STRATEGY

HEALTH POSITIONING OF HONEY AS A MARKETING STRATEGY Nathan Holleman, CEO National Honey Board, 390 Lashley Street, Longmont, CO, 80501, USA Tel. +1 303-776-2337, Fax: +1-303-776-1177, nathan@nhb.org Many Americans are very concerned with health and their diet today, perhaps more so than ever before. Nutraceuticals, functional foods, and a vast array of supplements are testimony to just how popular and important foods and related sources of phytochemicals, antioxidants, vitamins and minerals, among others, are to today s population. At the same time this popularity can be deceiving, as more Americans are overweight or obese than ever before (Wellness Facts) resulting in a dramatic rise in diabetes up 33% between 1990 and 1998 and another 6% increase in 1999 alone (Wellness Facts). At least 16 million Americans have been diagnosed with diabetes, and an undetermined number have not been diagnosed at all. Diet undoubtedly plays a large part in this dilemma, as do lifestyle and stress. Many consumers identify functional foods with their associated benefits (from 77% in 1998 to 83% today {IFIC}), according to a recent survey by the International Food Council. More consumers are not only knowledgeable about but are also looking to functional foods for a preventative or prophylactic effect. Accordingly, health positioning of food products that have functional properties has become an increasingly important tool in the hands of successful marketers. The idea of exploiting the functional properties of foods is not necessarily new: claims surrounding the Mediterranean Diet and the French Paradox have circulated for years. Oats have had success, as did red wine, while chocolate, olive oil and even nuts have all made claims. What is new is that specific foods are starting to put forth evidence of individual healthful characteristics, while still being a part of an overall healthy diet. Honey is no stranger to this concept. The U.S. National Honey Board decided in 1997 to shift away from simply promoting the product as a value added ingredient instead deciding to take the much more difficult tact of conducting health research on honey and positioning it as a functional product. Making the shift was only the first step in a long process, as specific attributes of honey had to be identified and then researched to see if they held up under scientific scrutiny. There are several advantages of such research and positioning: Differentiation from other sweeteners Additional value due to functional properties Builds on existing natural and wholesome image of honey Cleaner ingredient label possibly more appealing to end-users Potential product extension into new areas such as pharmaceutical and/or veterinary use Proceedings of the 37 th International Apicultural Congress, 28 October 1 November 2001, Durban, South Africa APIMONDIA 2001 To be referenced as: Proc. 37 th Int. Apic. Congr., 28 Oct 1 Nov 2001, Durban, South Africa ISBN: 0-620-27768-8 Produced by: Document Transformation Technologies Organised by: Conference Planners

In many countries and cultures honey has always had a healthful image. The Bible and the Koran, for example, cite the use of honey on a daily basis as a necessary part of maintaining one s health. Native Americans in Texas used horsemint honey as a curative, as did aboriginal peoples of New Zealand and Australia. Cidr honey is mentioned as a curative in Yemen, and honey of the strawberry tree is used as a folk remedy in Sardinia. In India, lotus honey is recognized as a treatment for eye diseases (Molan). While such reputations may get honey in the door (or in the pantry) with consumers it will not get the product a ringing endorsement from any particular recognized health group. Research is needed to back up the suggested healing or curative properties of a particular product. Dr. Peter Molan, of the University of Waikato in New Zealand, has been at the forefront in conducting research into the antimicrobial properties of manuka and jellybush honeys of New Zealand and Australia, and has shown through his research that certain honeys do in fact have the ability to heal some wounds in both humans and animals. His research was essential in the development and roll out of a honey medicine known by its trademarked name of Medihoney. The product consists of natural manuka or jellybush honey, which has been irradiated to ensure sterility, and is a recognized topical treatment for burns and wounds by the Australian government. (Molan) The U.S. National Honey Board, based in Longmont, Colorado, is taking such research further-investigating the potential of honey in such areas as dentistry, carbohydrate ingestion research, prebiotic research, antimicrobial activity and antioxidant content. Preliminary research has shown that practically all varieties of honey contain trace amounts of vitamins, minerals, antioxidants and amino acids, all of which work to distinguish honey from other sweeteners. For a commodity research and promotion board such as the National Honey Board, health positioning and promotion is an effective means of promoting the product s unique characteristics and differentiating itself from other sweeteners without being disparaging to those products. The actual health positioning comes into play once specific characteristics or properties of a food, such as honey, are established through the research process. As research is published the Board can follow up on the wave of publicity following publication with releases of its own. Because food and health editors will not publish such findings without the research to back them up, such releases become third party endorsements for the product. This, in the consumers mind, is much more believable than a commodity board or agency promoting the health aspects of a product on its own. Armed with such research results, Board staff can approach food manufacturers, animal feed manufacturers, brewers, and others with reasons for utilizing honey in their formulations other than flavor or texture. As the press plays up the potential health benefits of honey the food manufacturer or other potential end user has more reasons to include honey in his formulation and to promote its content on the product label. Another exciting way of disseminating health information involves the use of a credible ad respected industry spokesperson. Such a spokesperson, in our case a nutrition professor at the University of California at Davis, gives our industry a face to associate with our product, and can quickly give the product some name recognition. Such a person is invaluable when conducting satellite media tours, interviews and in publishing written articles on new health trends, especially when such a person is an established expert in their field. In the Board s case our spokesperson has spoken at many trade events for the

health industry, including the American College of Sports Medicine, the American Dietetics Association, as well as marathons and sporting events. With knowledge of science and publicity a spokesperson can be a very effective tool in promoting a product s healthful image. A very useful tool in conducting health research is that of establishing a scientific advisory panel or committee. Such a committee should be made up of recognized research experts in specific fields who can knowledgeably comment on health trends, potential research projects, viability of specific proposals, and provide general advice on the direction of research. Such a group can provide a wealth of knowledge on many subjects, and the open forum in which the group meets, often stimulates ideas that may take years to formulate otherwise. A panel of experts also provides our industry with a comfort level on the direction and focus of our research efforts. The group is also very useful in identifying potential researchers for specific projects. In the United States, once there is general agreement by the scientific community over a specific health claim, a company or commodity board can petition the Federal Drug Administration (FDA) for a label claim. Oats, with their cholesterol lowering properties, as well as Benecol have established such claims. A commodity board can often conduct health research on behalf of the industry and move toward structure function or label claims more easily in some instances than a private company, as such claims can be utilized by the entire industry rather than an individual company. Should sufficient evidence present itself for a particular health claim, the Board can take the lead in applying for the claim on behalf of the industry. Another important factor to consider in positioning honey as a healthy food product is that of positioning research. Such research can often give an industry very specific ideas as to what types of positioning statements consumers will respond to. In some instances consumers respond more to a soft health message, which implies healthful benefits of consuming a product rather than a hard-hitting message, which may seem too much of a guerilla tactic, even if the claim is backed up by research results. In promoting honey and health care should be taken to ensure that the vehicle chosen to promote the health message covers the targeted group sufficiently enough to get results. Results, in this instance, are measured in consumer awareness, trial purchase and usage, attitudes toward the product, and perhaps even repeat purchases. These are very important considerations in examining the effectiveness of the health positioning and promotion. Evaluation is a very necessary tool in any type of promotion, in particular where you are measuring changes in behavior. For the Honey Board, the switch to health positioning has already shown positive results in the first few years. Awareness of the health attributes of honey among U.S. consumers jumped from 16% to 25% in the period 1997 to 2000 (NHB1, 2). Additional research is underway to measure what specific honey and health messages consumers respond to and why, and how much funding is needed to move significant honey volume through the use of health positioning. While it is not logical to assume that all of the increase in health awareness surrounding honey is due to Honey Board promotions, we do believe that our efforts have played a part in raising the percentage of consumers aware of the healthiness of honey.

Conclusions Health positioning and promotions are an effective tool in marketing a natural food product such as honey. Health research is necessary in order to make verifiable claims which food and health editors and others can use as backing evidence for articles. A panel of scientific experts can add credibility as well as focus and direction to your projects, and an industry spokesperson can spearhead your media activities. Positioning research can tell you, in advance, what health messages regarding your product consumers will respond to. Such positioning and promoting could easily work for other hive products, such as pollen, royal jelly, apitherapy and propolys either as stand-alone items or as ingredients in other products. References Wellness Facts, Wellness Letter, University of California, April 2001, Volume 17, Issue 7, Page 1. Molan, Peter; 2000, Honey Is As Effective As A Medicine, p. 23, Bee World, Vol. 82, #1, 2001 IFIC, International Food Information Council, July/August 2000, Food Insight Newsletter, p. 3. NHB1, National Honey Board, 1997, Consumer Uses and Attitudes Towards Honey, Chart, Honey Likes/Dislikes Section. NHB2, National Honey Board, 2000, Honey User Heath Concept Study Report, p. 32.

HEALTH POSITIONING OF HONEY AS A MARKETING STRATEGY Nathan Holleman, CEO National Honey Board, 390 Lashley Street, Longmont, CO, 80501, USA Tel. +1 303-776-2337, Fax: +1-303-776-1177, nathan@nhb.org Curriculum Vitae Education: B.S. Agricultural Education, Clemson University, Clemson, S.C. 1979 Masters of Agricultural Education, Clemson University, 1981 Professional Experience: Sales Representative, Byrum Seed Co, Charlotte, NC, 1983-85 Marketing Specialist, USDA, Agricultural Marketing Service, Washington D.C. 1985-1990 Director of Foreign Market Development, USA Poultry and Egg Export Council, Stone Mountain, GA, 1990-1993 Mexico Country Director, USA Poultry and Egg Export Council, Mexico City, Mexico, 1993-1995 Marketing Director, California Walnut Commission/Walnut Marketing Board, Sacramento, CA, 1995-2000 CEO, National Honey Board, Longmont, CO, 2000 present. Honors and Awards Alpha Gamma Rho National Agricultural Fraternity, Beta Zeta Chapter (Clemson University), Alumni of the Year, 1981 Byrum Seed Company, Sales Representative of the Year, 1984