WHAT YOU SHOULD CONSIDER BEFORE YOU GROW Room 308-309 | December 5 - PowerPoint PPT Presentation

WHAT YOU SHOULD CONSIDER BEFORE YOU GROW Room 308-309 | December 5 2017

CEUs – New Process Certified Crop Advisor (CCA) Pest Control Advisor (PCA), Qualified Applicator (QA), Private Applicator (PA) • Sign in and out of each session you attend. • Pickup scantron at the start of the day at first • Pickup verification sheet at conclusion of each session you attend; complete form. session. • Sign in and out of each session you attend. • Repeat this process for each session, and each day you with to receive credits. • Pickup verification sheet at conclusion of each session. • Turn in your scantron at the end of the day at the last session you attend. Sign in sheets and verification sheets are located at the back of each session room.

AGENDA • Gabriele Ludwig, Almond Board of California, moderator • Harbinder Maan , Almond Board of California • William Matthews , University of California Agricultural Issues Center • Doug Parker , University of California 3

WHAT YOU SHOULD CONSIDER BEFORE YOU GROW Harbinder Maan Associate Director, Trade Marketing and Stewardship, Almond Board of California

AGENDA 1. Snacking fueling growth for almonds 2. Global markets, almond board of California consumer programs 3. Varieties, importance of flavor 4. Summary

1. SNACKING FUELING GROWTH FOR ALMONDS • What is driving growth, trends? • Where do our Almonds go? • Innovation in Almond products

“SNACKIFICATION” OF SOCIETY – DRIVEN BY THE MILLENNIAL GENERATION • Referred to as the “snackification” of society, these consumers are shedding the traditional custom of eating three meals a day in place of eating smaller portions more frequently, or snacking. • Instead of cooking and having a traditional meal at home, time-pressed consumers are increasingly turning to snack foods with 29% of consumers reporting eating snacks 3 or more times a week. • Snack oriented categories continue to outperform the broader packaged food market by a wide margin. • As a results we are seeing significant growth of sales in biscuits, snack bars, savory snacks, confectionery, ice cream, bakery snacks (cakes and pastries) and yoghurt. All big categories for almonds Source: Euromonitor

GLOBAL SNACKING TRENDS – INNOVA RESEARCH HEALTH AND WELLNESS KEY INHERENT ACROSS ALL • Clean label - Driven by the need to include fewer ingredients - Fewer preservatives - Free from [gluten and lactose] • Portable and on the go - Increased snacking occasions - Convenience • Plant based variety and lifestyle - Hero ingredients: natural source of fiber, protein (energy and satiety), minerals and or/vitamins - Better for the planet • Across categories - Almonds driving innovation usage and forms in the key categories that drive growth

ALMONDS DOMINATE THE USE OF NUTS GLOBALLY • Introductions of the majority of nut types have increased from 2015-2016. - Almonds increased its lead vs #2 hazelnuts for total introductions 10,000 Nut Introductions by Type (2009-2016) Almond Hazelnut 5,000 Peanut 0 Cashew 2009 2010 2011 2012 2013 2014 2015 2016 Nut Introductions by Nut Type: Change from 2015-2016 Nut Type 2015 2016 Change (#) Change (%) Almond 9,005 9422 +417 +5% Hazelnut 6,356 6162 -194 -3% Peanut 5,316 5983 +667 +13% Cashew 3,003 3544 +541 +18% Walnut 1,515 1976 +461 +30% Pistachio 926 1072 +146 +16% Pecan 949 1024 +75 +8% Macadamia 519 532 +13 +3% *Mixed Nuts include non specified and Mixed Nuts* 125 388 +263 +210% mixed nuts. Global Nut Introductions** 21,606 24,669 +14 .2% **Global Nut Introductions is lower than +3,063 the sum of the nut types, since products containing more than one type of nut are counted only once.

CATEGORY PERFORMANCE US: PURE ALMOND VOLUME SHARE BY CATEGORY Category Share of Pure Almond Volume Nielsen • While the total snack nut category Data, 2016 still represents the largest pure RTE Cereal, 3.9% almond volume share at 56.9 (+0.2ppt) Ice Cream, 4.7% • Milk substitutes (15.7%, +1.5ppt) (+0.6ppt) gained ice cream, chocolate (9.8%, Nut & Seed Butters, 4.9% +0.4ppt), bars (6.6%, +0.4ppt), nut (+0.3ppt) & seed butters (4.9%, +0.3ppt), and (+0.4ppt) cereal (3.9%, +0.2ppt) saw more Bars, 6.6% modest gains. (+0.4ppt) Total Snack Nuts, 56.9% Chocolate, 9.8% (-3.5ppt vs. YAG) (+1.5ppt) Milk …

CATEGORY PERFORMANCE GERMANY: PURE ALMOND VOLUME SHARE BY CATEGORY Category Share of Pure Almond Volume – IRI Data, • Total snack nuts category 2016 Milk represents the largest pure almond RTE Cereal, Cereal Bars - Pure & Alternatives, 2.2% volume share at 54.3%, followed Mixed, 0.5% 2.0% by chocolate confectionary (17.1%) Sweet Spreads, Cookies, 0.2% and total marzipan (15.6%). Biscuits, Sweet Pastries, 3.2% • After these top-3 categories, shares decrease notably, with RTE RTE Bakery bakery cakes ranking 4 th (4.8% Cakes, 4.8% share) and cookies/ Total Marzipan, biscuits/sweet pastries in 5 th (3.2% 15.6% Total Snack Nuts, 54.3% share). Chocolate Confectionary, 17.1%

ALMOND FORMS AND ALMOND APPLICATIONS - INNOVA Stand-alone Other applications- Form product Snack categories Whole almonds Almond pieces Almond paste, butter Almond milk Almond flour

EXAMPLES: ALMONDS ARE OFTEN SEEN IN PRODUCTS WITH ALLERGY FREE CLAIMS OR WITH ADDED VALUE • Mainly as a key ingredient for gluten-free and for lactose-free products.

PRODUCT EXAMPLES: BAKERY Vaasan Bodytrim Sanford Galletas Greco Finland Australia Argentina Colombia Vaasan Kotiuunin Bodytrim Ultra Low Carb Okebon Molino Natural Galletitas Greco Kurabie Galletas Con Toscapulla: Frozen Buns Protein Indulgence Cookies Con Almendras Y Chia: Cookies Almendras: Mediterranean Topped With Almonds With Almonds And Chia Almond Cookies Georg Goess Colussi Delicato Bakverk Auchan United States Italy Sweden Spain Auchan Polvorones Sin Georg Goess Cinnamon Colussi Panforte Del Palio Delicato Pepparkaksrulle: Azucares Anadidos: No Stars: Nut And Almond Con Frutta Candita E Marzipan Roll Added Sugar Polvoron Cookie Mandorle: Gingerbread With Candied Fruits And Almonds

PRODUCT EXAMPLES: CONFECTIONERY Laima Carrefour Lotte Ferrero Raffaello Coconut Specialty With Estonia Tunisia Japan Whole Almond Laima Exclusive Riga Black Carrefour Selection Pepites De Balsam Sokolades Kofeksu Lotte Chocolantan Poire: Dark Chocolate With Izlase Ar Pildijumu: Selection Of Chocolate And Orange Pear Pieces Chocolates With Filling Arcor Cenmaco Hershey Britvic Argentina Spain Chile Malaysia Dec 2016 Arcor Rocklets Almendras Pablo Garrigos Iba Ez Turron A Hersheys Kisses Creamy Tango Milk Choc With Fruit And Con Chocolate Con Leche Milk Chocolate With La Piedra: Almond And Nuts Cinnamon Soft Turron Confitado: Candy And Milk Almonds Chocolate Coated Almonds

PRODUCT EXAMPLES: SNACKS Dongwoonongsan Fangjiapuzi Putian Green Food Mani Morefoood South Korea Iran China Xiangzhiwei Almonds No Brand Mix Nuts Mani Salted Almonds Dida Cat Daily Nuts Meme System Frugt Quorum Linan Ajie Fry Food Israel Finland Germany China Meme Date Snack With Earth Control Viikunaherkut: Bonvallis Kaixinyoushi Almond Peanuts Fig Snack Feigenfruchtschnitte Mit Kernels Mandeln: Compressed Fig Fruit with Almonds

PRODUCT EXAMPLES: BARS General Mills Abbott Cloetta Probiotec United Kingdom United States Norway United Kingdom Nature Valley Popcorn Bars Zoneperfect Nutrition Bars Cloetta Muesli Bite Seeds: Celebrity Slim Program Fruit With Salted Caramel, With Chocolate, Almond And Muesli Bar With Milk And Nut Meal Replacement Almond And Pretzel Raisin Chocolate Bar Rise Bar General Mills Pure Organic Kind Bar United States United States United States United States Nature Valley Protein Chewy Pure Bar Dark Chocolate Rise Chocolatey Almond Protein Bar Bars With Peanut, Almond Berry Bars and Dark Chocolate Caramel Almond and Sea Salt

PRODUCT EXAMPLES: CEREALS Colussi Everfrut Gittis Lotte Mart Italy Ecuador Slovenia South Korea Misura Multigrain Muesli Everfrut Musli Natural Mora Natur Aktiv Bio Porridge Lotte Mart Choice L Almond Croccante Con Mandorle E Y Chia: Natural Muesli With Med-Orescki Iz Granola Uveta: Multigrain Crunchy Blueberry And Chia Kontroliranega Ekoloskega Muesli With Almonds And Kmetijstva: Organically Raisins Produced Porridge With Nuts Lark Fine Foods Got Milk Snacks Jumbo Post Foods United States United States Netherlands Guatemala Lark Ellen Farm Sweet And Got Milk Crunchy Granola Jumbo Muesli Twister Post Honey Bunches of Oats Salty Trail Mix Cereal: Blueberry with Greek Amandel En Appel: Muesli Cereal With Crispy Almonds Yogurt With Almonds And Apple

PRODUCT EXAMPLES: OTHER CATEGORIES Indolakto Stop And Shop Isota Bio Tj Alpha Indonesia United States China Indoeskrim Tasty Max Natures Promise Organic Rice and Almond Vanilla Choco Almond Ice Alpha Almond Juice Unsweetened Vanilla Drink Cream Bar Almond Milk Bertolini Alpro Foodmatch Rapunzel Naturkost Italy Spain United States Italy Casa Del Dolce Risotto Asturiana Alpro Almendras Dolce Al Finissimo Divina Kalamata Fig Spread Sabor Chocolate: Almond Rapunzel Crema di Mandorlato E Cioccolato: with Almonds Drink with Chocolate Flavor Mandorle Bianca: White Sweet Rice With The Finest Almond Cream Almonds And Chocolate