andrew waddell - consumption around the globe today and predictions for the future - australia

Consumption around the globe today and predictions for the future - AUST

Prepared by: Andrew Waddell

Domestic Sales Manager, Stahmann Farms

16 October 2014

Current situation – TREE NUTS

Australian nut consumption 2003-2014 (trade)

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200

250

300

350

400

450

500

550

600

30,000

35,000

40,000

45,000

50,000

55,000

60,000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

$A

mill

ion

Ton

nes

Tonnes $A million Linear ($A million) Trend ($A million)

Sourc

e: A

NIC

Australian nut consumption 2003-2014 (trade)

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200

250

300

350

400

450

500

550

600

30,000

35,000

40,000

45,000

50,000

55,000

60,000

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

$A

mill

ion

Ton

nes

Tonnes $A million Linear ($A million) Trend ($A million)

Australian nut category landscape

Still waiting for a couple of modifications on this one Sourc

e: N

iels

en H

om

escan

Health is a key category driver

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Sourc

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Enmasse healthy attitude shift in last decade

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2005 2014

Nuts should notbe included in a

healthy diet

Doctors 16% 1%

Consumers 28% 9%

Nuts can help prevent heart

disease

Doctors 27% 56%

Consumers 24% 76% Sourc

e: N

uts

for

Life H

P a

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Current situation – MACADAMIAS

Kernel sales stable – based on supply

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500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Vo

lum

e (M

T)

Sourc

e: A

MH

A

Ingredient usage increasing

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Sourc

e: A

MH

A

Retail environment

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• Dominated by two retailers who are driving their own brand agenda (Private Label)

• Recent entrants into the space (ALDI/ Costco) have an own-brand agenda also – it’s the global trend

• +70% of snacking macadamia are sold through private label

• Retailer evolution is technology driven

– Shopper insights driven by loyalty cards

– Shift in check-out formats

– On-line shopping roll out

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Opportunities

Consumer perception

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& pushes them out of the baking box

Savoury cooking with macadamias is exciting

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“The idea of cooking with macadamia is a

great one, but the applications of macadamias in

cooking need to be explained better.

“It opens up all new possibilities with

macadamia nuts.”

Sourc

e: G

alK

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014

Desire

SatisfyConsum-

ption

Strong consumer desire for new products using macadamias

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The Australian NutNEW NEWS FOR SOME BUT WARM AND

PRIDEFUL REPONSE FROM ALL

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“I love buying & supporting Australian produce”

“Definitely fits with macadamias, it’s one of the best selling points”

“Australian made is the best way to be sure it is safe. Outside of

Australia there is a lot of risk of short cuts, Australia is very

regulated.”

Sourc

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Capitalising on the opportunities

Encourage innovation & NPD

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Teach consumers new ways to use macadamias

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Tell the macadamia story

Again & again & again…

2020 projections

Ingredient usage increasing

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Snack 50%

Ingred40%

FS 10%

2020

Production expectations – growing supply

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500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Vo

lum

e (M

T)

Critical success factor – stable supply

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