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An Industry Update for Walnut Growers Presented at 2006 Grower Meetings California Walnuts
An Industry Updatefor Walnut GrowersPresented at 2006 Grower Meetings
California Walnuts
Responding to Change
• The Marketing Order est. 1948• Last formal rule making 1976• Diamond goes public – July 2005• The Industry has grow – 355M Tons• Technology• Customers Needs• The only certainty is change!
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
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
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
Do it right!
•It will make any future modification– Easier– Faster– More timely
U.S. Walnut Production History
050
100150200250300350400
85 87 89 91 93 95 97 99 01 03 '05
Crop Year
Shor
t Ton
s - T
hous
ands
Total CA Walnut Availability
050
100150200250300350400450500
85 87 89 91 93 95 97 99 01 03 '05Sh
ort T
ons
- Tho
usan
ds
Production Carry-in
Total US Shipment History
100110120130140150160170180190200
85 87 89 91 93 95 97 99 01 '03Crop Year
Shor
t Ton
s - T
hous
ands
The Focus on Health
Proven health benefits are driving demand for California walnuts
The Changing Perception of Walnuts
1990Nuts and Fat are
Bad!(Newsday,12/23/90)
2004The ‘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)
1995 Good fat v. Bad fat;
Nuts are good(Los Angeles Times Syndicate, 2/22/95)
2000Good 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.
Walnut Health ResearchStudies 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.
Walnut Health ResearchStudies 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.
Walnut Health ResearchStudies in progress
• Walnuts & Breast Cancer• Walnuts & Aging/Memory• Walnuts & Diabetes• Walnuts & Antioxidant
Status of Blood
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.
Public Relations Efficiency2005-6 media impressions may reach 3 billion in the U.S.!
•'04-05 values through June 2005
•Does not include book circulation, trade shows, consumer fulfillment or web visits.
Walnut Marketing Board Publicity Program Efficiency
$0.63$0.60 $0.59
$0.54
$0.42$0.37
0
500
1000
1500
2000
2500
'99-'00 '00-'01 '01-'02 '02-'03 '03-'04 '04-'05
Program Year
Impr
essi
ons
(Mill
ions
)
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
CPM
(Mill
ions
)
ImpressionsCPM
Print AdvertisingDirected at nutrition and health professionals
school foodservice
ad
healthprofessional
ad
Export Market Updates
MAP/CWC Allocation Levels
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 '04 '05
Crop Year
MAP CWCFunding in Millions
Inshell Walnut Exports
0
10
20
30
40
50
60
70
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 '03 '04
Crop Year
Tons
(tho
usan
ds)
Shelled Walnut ExportsInshell walnut equivalents
0102030405060708090
100
88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 '03 '04
Crop Year
Insh
ell e
quiv
alen
t (to
ns)
Germany: Public Relations• Consumer impressions = 824.4 million• Print media = 2,132 articles• TV = 46 programs, 11.3 million viewers• Website = > 120,000 site visitors• Easter Sweepstakes = 83,000 entrants
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
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
KOREA: New Product Development
• Developed partnerships with 15 new companies
• 35 new product applications
• Increased incremental usage by 25%
Questions?
Walnut Marketing BoardCalifornia Walnut Commission1540 River Park Drive, Suite 203
Sacramento, CA 95815
Dennis Balint(916) 922-5888
