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.
Market Overview
Number One Market: Russia
Market Opportunity - U.S.A. Percentage of U.S. Adults Age 20 to 74 Classified as Overweight and Obese
More than 35% of U.S. Adults are Obese and more than 50% are Overweight
Prevalence of Self-Reported Obesity Among U.S. Adults - 2013 Source: Center for Disease Control
20% of U.S. Children are Obese Source: Center for Disease Control
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
Diabetes in the United States
Government Response
Michelle Obama Let s Move http://www.wsj.com/video/food-nutrition-labels- set-for-an-overhaul/af1ce834-4c5e-410e-b2cf- FA1002771452.html?mod=wsj_video_email
The Government Can t Tell You What to Eat
Proposed Changes in Nutrition Label
U.S. Food Pyramids 1992: Food Guide Pyramid 2005: MyPyramid Food Guidance System
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
Industry Response
Fast Food Industry and Healthy Nutrition
Retail Value of Diabetic Foods in the Unites States, 2012-2017, in million U.S. Dollars Source: Statista
Competitive Overview
Diabetic Focused Brands Glucerna Extend Level Life
Level Life
Glucerna
Extend
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
Organic, Health Food Brands Amy s Kitchen Kashi Nature s Path Wide product portfolio Target people with diabetes and other special dietary needs
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)
Healthy Snacks - Examples
Trends and Product Innovation
Marketing and New Ingredients Glycemic Index is too scientific for U.S. consumer Instead: Helps maintain stable blood sugar. Resistant starch: HiMaize, CarbSteady (Glucerna)
Market Segments
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
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
American Indian and Alaska Native Population as Percentage of Total Population by County, 2010 Source: U.S. Census Bureau, 2010 Census
Hispanic Population by State, 2010 Source: U.S. Census Bureau, 2010 Census
Sale Channels
Retail Channels Grocery Stores Specialized Grocery Stores Health and Organic Pharmacies Online
Focus on Specialty Diets Segment
Regulatory Framework
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;
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
About EABO and the EEN
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
EEN Network European-American Business Organization, Inc. 405 Lexington Avenue, 37th Fl., The Chrysler Building New York, NY 10174 www.eabo.biz BIC Innovation Pencoed Technology Centre, Bridgend, South Wales, CF35 5HZ www.bic-innovation.com
Contact Information John M. Zindar, Partner zindar@eabo.biz 405 Lexington Avenue The Chrysler Building, 37th Floor New York, NY 10174 Phone: 212-972-3035 www.eabo.biz 44