2010 the almond almanac page B a l m a n a c table of contents 2 board of Directors + Vision Statement 3 Realizing our Vision + Core Values the california almond industry 4 a letter to our Industry Members at yoUR fINGeR tIPS 5 Strategic Priorities + almond board Programs 6 Global Marketing Strategy 7 the Global almondboard.com Almond Board of California (ABC) promotes almonds 8 Megamarket: North america through its research-based approach to all aspects 10 Megamarket: european Union of farming, production and marketing on behalf of 12 Priority Development Markets: China + India California Almond growers and processors. The 14 Sustainability 15 Production Research Almond Almanac is Almond Board’s annual report, 16 environmental excellence which outlines the programs and projects that power 17 Nutrition Research the industry toward meeting its vision, and it provides 18 Quality assurance a comprehensive statistical analysis of the production 19 Industry Relations and marketing of California Almonds. 20 Global technical + Regulatory affairs 21 California almond Industry overview The Almanac is prepared by Almond Board on a crop- 22 historical Shipments 23 top ten exports by Value year basis, spanning August 1 through July 31 and 24 Position Report of California almonds includes comprehensive historical information about 25 Destination overview of California almonds almond production, acreage and varieties, as well as 26 exports by Destination shipment and market information. The statistical content 28 World almond Production is compiled using various handler forms required by the 29 California’s Crop + almond acreage 30 Competing Nuts industry’s Federal Marketing Order. Additional data, 31 almond Production by County including crop estimates and farm price, are supplied 32 Receipts by County + Variety by the National Agricultural Statistics Service, California a l 33 top ten almond Varieties + acreage Field Office (NASS/CFO). Simply put, the Almond m 34 almond Crop estimates vs. actual Receipts a 36 California almond acreage + farm Value Almanac is the definitive source of information for n 38 Crop Size history vs. Inedible Percentage California Almonds. a c 39 UC farm advisors 40 USDa Standards for Grades 2010 r Ai h C n, r, Board of o e h s k s a a u m Br r directors ke Ave e ChAi llB Mi DviC Bi g r n e o n t e n l p g p u e p g ll har COTT h hriSTiN Avephi eiTh ri Bi S C D k l h a g d vision: n g page 2 mi n u to be the healthiest specialty o o a h y crop in the world. lm Nt g a h u n O O a J D c realizing our CoRe values: vision + core values • We value fairness in our relationships with growers and handlers. • We seek consensus to achieve common goals. • enhancing the financial well-being of the industry is the driving force behind all decisions. RealIzING oUR vision MeaNS: • Decisions are made objectively based on the best available data. • enhancing consumer health, food safety, the environment • We provide the industry with the tools necessary to communicate and quality production. our messages and to deliver the safest product possible. • building domestic and international awareness and demand. • the entire industry shares the responsibility of maintaining • Promoting stability of supply. a stable supply. • Developing and distributing industry and production information. • the authority of the federal Marketing order is used to strengthen • ensuring uniform compliance. and protect the industry. ppaaggee 33 c c aa nn aa mm ll aa a letter to oUR INDUStRy MeMbeRS What WoUlD the WoRlD be lIke toDay WIthoUt research? how would the human race have advanced if it had not developed the ability to investigate, reason and act? Could the California almond industry have possibly achieved its current sophistication and global reach without the enabling foundation of research knowledge? the 2010 annual almond Industry Conference celebrates the value and benefits that sustained research has bestowed upon California growers and handlers, and the broader stakeholder community as a whole. the conference theme, Growing advantage: leadership through Research, is representative of the inherent discovery process, and the leadership opportunities that the research process and results have afforded our industry. the theme also relays the continually increasing advantage that the California almond is achieving in the battle for the hearts and minds of the global customer and consumer. like most things in life, nothing is certain and investing in research has no guaranteed outcome. however, organizations like abC have learned over the years how to derive optimal benefit from the research initiatives they have undertaken, and they have also learned to leverage the resulting wealth of knowledge. Going forward, research conducted with leading institutions located in the european Union, China and India will be a priority, as will infusing the results of that research into our international marketing programs, making them more robust and nationally relevant. In our roles as chairman and Ceo of the almond board of California, we take very seriously the responsibility of working with the board of directors and abC staff to wisely invest grower funds in research projects that will have long-term benefits for our industry. We take equally seriously the need to translate the results of those investigations into global leadership positions for California almonds. the future success of our industry as well as our leadership-through-research role in agriculture will continue to build from the strength of knowledge that we create. the growing advantage that results will consistently position the California almond first among its peers. We have a bright, confident future with research knowledge as our foundation page 4 and a healthy industry as our reward. a l m a RIChaRD WayCott, PReSIDeNt aND Ceo MIke MaSoN, ChaIR n a c strategic priorities + almond Board programs PROGRAM BUDGET ALLOCATION FISCAL YEAR 2009/10 Production Research 3% Industry Relations 2% PRoGRaM bUDGet alloCatIoN Environmental Research 3% GTRA* 1% fiscal year 2009/10 Food Quality and Safety 3% Nutrition Research 4% key program areas for almond board of California include global marketing, nutrition and production research, food safety, North American Operations 16% Marketing 39% environmental stewardship and industry information and statistics. abC programs are funded by an assessment placed on each pound of almonds produced by almond growers. the board of Directors approves allocation to each of the program areas and almond board International Marketing 29% staff is responsible for implementing the programs detailed on the Source: Almond Board of California. *Global Technical and Regulatory Affairs. following pages. StRateGIC priorities • build the case supporting the vision and spread the word among global consumers and the trade on the benefits of consuming more almonds. • facilitate an industry-wide system for ensuring food safety from farm to fork. • Proactively seek solutions to environmental challenges and differentiate the industry. • ensure a basic and applied research capability. page 5 c a n a m l a gloBal MaRketING StRateGy TOP NUTS USED IN NEW PRODUCTS BY REGION 2009 becoming the Nut of Choice in the minds of consumers, food professionals and health professionals around the world is essential to the success of California almonds. our global marketing strategy continues to focus on our core geographic markets of North america, the european Union, China, India, Japan and South korea; the top three global categories for almond usage (chocolate confectionery, bakery/patisserie and snacking); the dissemination of our growing portfolio of nutrition research to health influencers and the media; and the active management of the industry’s reputation as a leader in providing a safe and wholesome food product. for the second year in a row, almonds were the number one nut for total new retail product introductions globally and abC continued to spread the word about the global demand for almonds to the chocolate manufacturers, reaching NORTH AMERICA out to the world’s top manufacturers and producers with the California almond #1: PEANUTS #2: ALMONDS story. In 2010/11, the bakery and snacking strategies will be finalized and program plans initiated. EUROPE #1: HAZELNUTS ASIA-PACIFIC to achieve and continue to be the Nut of Choice, abC’s marketing programs #2: ALMONDS #1: ALMONDS #2: PEANUTS are designed to earn the interest, respect, trust, loyalty and ultimately, the LATIN AMERICA #1: PEANUTS advocacy of consumers, food professionals and health professionals around the #2: ALMONDS MIDDLE EAST world. With our strong research-based foundation, abC now seeks to establish & AFRICA #1: HAZELNUTS a more emotional connection by showing consumers how California almonds #2: ALMONDS are relevant to their lifestyles and meet their needs for tasty, nutritious and relevant solutions to their everyday challenges. and our food professional outreach serves up proof of consumer preference, leadership in areas such as food quality and gloBal new production safety, and inspiration for innovation in healthier products that are on trend for introductions 2009 today’s consumers. Region almonds Peanuts hazelnuts Cashews Walnuts total Nut North america 188 261 133 80 47 927 page 6 for the first time, almonds are the top europe 698 317 762 128 172 2,940 nut in the asia-pacific. DeSPIte beING the toP asia-Pacific 561 478 242 177 130 2,256 a Global NUt, alMoNDS ReMaIN the SeCoND MoSt latin america 299 356 61 76 55 1,349 lm PoPUlaR NUt IN NeaRly all ReGIoNS, CoMPetING Midd&l ea efraicsat 73 60 90 15 1 342 a MoSt WIth PeaNUtS aND hazelNUtS. total 1,819 1,472 1,288 476 405 7,814 n a Source: Global New Products Database, 2009. c the Global almondBoard.com In July 2009, almond board of California launched the all-new almondboard.com Web site. Since then, the site has served as the cornerstone of abC’s communications program by providing specific access points for consumers, food and health professionals and industry members alike. Recently, almondboard.com has expanded its reach by launching new french, German, british, Russian, korean and Chinese versions of almondboard.com. Now a truly global Web site, individuals from all over the world can log on to get a taste of what California almonds have to offer. they’re greeted by the global portal page, which serves up the option to view the Web site customized for 10 different countries in seven different languages. from there, users can access almond recipes, learn about the nutritional attributes of almonds and discover how almonds can fit into their professional and personal lives. almondboard.com, with its contemporary and easy-to-navigate format, provides a strong online global presence for the California almond industry and helps our global stakeholders make California almonds an essential part of their daily lives. Shown left: The French and Chinese homepages of AlmondBoard.com page 7 c a n a m l a megaMaRket: NoRth aMeRICa Shipping over 33 percent and 489 million pounds of almonds in 2009/10, North america was the single largest market for California almonds during the 2009/10 crop year. Investment in the core consumer target audience, Jane, has driven growth RyAoeua cmhha fionart ahniena dhrte-afsmluthayrl t c, hnooultefrsi etneytr-oroli clehuv Cealrsl.i fLohernariean Amalmorroetn ad’bsso. Ju utd stth aee hpasonwiderfru elo af . da aWhya acnnadtn fau n lo sanutar Aicslkhm ytohonaudtr B lhooevaaerrdst . cbyooym uh eblapcinkg? with the support of other target audiences. according to the 2010 Consumer attitudes, awareness and Usage (aaU) study, for the second consecutive year, almonds surpassed peanuts as the top nut for self-reported ongoing usage. © 2010 Almond Board of California. All rights reserved. Nccooonnrtsshuu mmameerre spr,i rchinaetna a lmtdhva perkrroteifste icnsogsmi ocnamamulspn aiacniagdtni o fionno sJd ea fnpfouroratfresy s f2osi0co1un0sa. l osfn.e tatohtu rderireniv gke e ttyhh ese ts“rpeao tmewgeeiesr sso,a fo gaue htsli antone ddcf oubnl,e”sl outhwme, e ccraosm mapbmaCuig nlnaic ubanrtciinnhgge sdd ti roae lcnifteelyw t ht oe Gpheeoaro rddt a dnyi esoewfa sms eao.b sOot nunetu tassel,m rsvouincnghd soa fsa analdlmm hooennaddrsst , ( ha2es8a gpl)ta hrh taS osc fi1 e3an gdt iiofeicft uelonvwsida etinun rcsaaett esudur agftageted as ntfasd,t boaunntldy d c1oghe oosl efn ssotaett ruporrlao mtveead,y tf hraeatd.t uecaeti nthge 1 .r5is ok uonfces emotional connection and health benefits of eating almonds. strategy 1: alMoNDS aRe VIeWeD strategy 2: StReNGtheN oUR strategy 3: alMoNDS aRe a aS the heaRt-healthIeSt NUt. PoSItIoN aS a leaDING fooD IN ReleVaNt SolUtIoN at fUNCtIoNal both taSte aND NUtRItIoN. aND eMotIoNal leVelS. Communication to all target audiences continues to leverage the existing In addition to our ongoing food media one of the ways abC reached out and growing body of research outreach throughout the year, abC to Jane to show that almonds are a demonstrating almonds’ ability to help launched three new eNewsletters in relevant solution is through the Pantry maintain healthy cholesterol levels, february 2010. each of the three editions to Plate program, targeting her as which positively impacts heart health. is targeted directly to consumers, health she plans meals for her family. the according to the 2010 Consumer aaU, professionals and food professionals, program’s goal was to ensure almonds consumers rated heart health as the delivering specific information and are a staple in Jane’s kitchen pantry. second highest almond-specific health delicious new recipes designed to We leveraged the expertise and benefit, increasing 4 percent from drive traffic to corresponding pages celebrity of spokesperson ellie krieger, 2009. for example, in 2009/10, abC on almondboard.com. the consumer RD, New York Times bestselling launched new heart-healthy tactics eNewsletter emphasizes the great cookbook author and host of the directed to our healthy Men target in taste of California almonds by featuring hit show Healthy Appetite on the U.S. this program consisted of a recipes and beautiful photography Cooking Channel. series of mini-commercials airing on related to the season or primary eSPN’s SportsCenter, online banner promotional programs underway at page 8 ads and a promotional booklet insert that time. in Men’s Health featuring bear Grylls, a l host of Discovery Channel’s m Good news about almonds and heart health: Scientific evidence suggests, but does not Man vs. Wild. a prove, that eating 1.5 ounces per day of most nuts, such as almonds, as part of a diet low in n saturated fat and cholesterol may reduce the risk of heart disease. one serving of almonds a (28g) has 13g of unsaturated fat and only 1g of saturated fat. c