California Walnuts An Industry Update for Walnut Growers

Transcription

1 California Walnuts An Industry Update for Walnut Growers Presented at 2006 Grower Meetings

2 Responding to Change The Marketing Order est Last formal rule making 1976 Diamond goes public July 2005 The Industry has grow 355M Tons Technology Customers Needs The only certainty is change!

3 Board Structure The Coop is now a public company The goal is to maintain balance Acknowledge growth and its ramifications Language that includes emerging business entities custom packers Common language

4 Board Authority The power to respond to future needs and change more easily Change Board structure Alter nomination rules Set standards for outbound product not covered in USDA grades and standards The ability to utilize all marketing tools to promote walnuts, including advertising

5 Consistency and Other Cross check sections there are 90 sections in the marketing order for the Walnut Marketing Board A new section has been added acknowledging the complementary nature of the WMB and the Commission Provide for more informal rule making Change the fiscal year

6 Do it right! It will make any future modification Easier Faster More timely

7 U.S. Walnut Production History Short Tons - Thousands '05 Crop Year

8 Total CA Walnut Availability '05 Production Carry-in Short Tons - Thousands

9 Total US Shipment History Short Tons - Thousands '03 Crop Year

10 The Focus on Health Proven health benefits are driving demand for California walnuts

11 The Changing Perception of Walnuts 1990 Nuts and Fat are Bad! (Newsday,12/23/90) 2000 Good for salads and snacks. Good for you. (USA Weekend, 9/23/01) 2008 Walnuts are unique among Super Foods. This mega nut benefits the whole body blood pressure, diabetes, weight control, cancer, heart and bones Good fat v. Bad fat; Nuts are good (Los Angeles Times Syndicate, 2/22/95) 2004 The Mega Nut is a Super Food Walnuts are the flagship nut in this Super Food category, a rich source of plant-derived omega-3 fatty acids. (Steven Pratt, Superfoods Rx, 2004)

12 Walnut Health Research Studies that have published the past two years University of Barcelona: Walnut diet better than Mediterranean diet at reducing risk of heart disease. Penn State: Walnut diet reduces CRP levels, a measure of inflammation. University of Wollongong: Walnuts reduce LDL cholesterol in people with type 2 diabetes. University of Texas: Walnuts contain melatonin, a powerful antioxidant. Loma Linda University: Walnuts do not cause weight gain.

13 Walnut Health Research Studies that may publish this year Penn State: Walnut diet reduces blood pressure. Loma Linda University: Walnuts better than fish at reducing LDL cholesterol. University of Barcelona: Walnuts improve arterial function/blood flow after high fat meals. Penn State: The omega-3s in walnuts promote bone health.

14 Walnut Health Research Studies in progress Walnuts & Breast Cancer Walnuts & Aging/Memory Walnuts & Diabetes Walnuts & Antioxidant Status of Blood

15 Domestic Marketing Activities We use health research as the foundation for all activities. We focus efforts on key influencers. MOMs MEDIA HEALTH PROFESSIONALS We promote taste & nutrition.

16 Public Relations Efficiency media impressions may reach 3 billion in the U.S.! Walnut Marketing Board Publicity Program Efficiency 2500 $0.70 Impressions (Millions) $0.63 $0.60 $0.59 $0.54 $0.42 $0.37 $0.60 $0.50 $0.40 $0.30 $0.20 CPM (Millions) Impressions CPM '04-05 values through June '99-'00 '00-'01 '01-'02 '02-'03 '03-'04 '04-'05 $0.10 $0.00 Does not include book circulation, trade shows, consumer fulfillment or web visits. Program Year

17 Print Advertising Directed at nutrition and health professionals school foodservice ad health professional ad

18 Export Market Updates

19 MAP/CWC Allocation Levels Funding in Millions MAP CWC $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $ '04 '05 Crop Year

20 Inshell Walnut Exports Tons (thousands) '03 '04 Crop Year

21 Shelled Walnut Exports Inshell walnut equivalents Inshell equivalent (tons) '03 '04 Crop Year

22 Germany: Public Relations Consumer impressions = million Print media = 2,132 articles TV = 46 programs, 11.3 million viewers Website = > 120,000 site visitors Easter Sweepstakes = 83,000 entrants

23 Germany: POS & Advertising California Walnut World Brochure Line 3.4 million brochures distributed in 04/05 Recipes, health facts Distribution Key Success ALDI Chain Print Ad Campaign 65 ads Targeted publications Key messaging

24 Korea: Public Relations Public Relations 32,610,000 consumers reached 1,831,000 trade reached 34,441,00 impressions $5,313,200 ad equivalent value Print Media 148 articles Television 3 National Programs

25 KOREA: New Product Development Developed partnerships with 15 new companies 35 new product applications Increased incremental usage by 25%

26 Questions? Walnut Marketing Board California Walnut Commission 1540 River Park Drive, Suite 203 Sacramento, CA Dennis Balint (916)