cranberry marketing committee - notre canneberge 2014 marketing policy (feb 2014 est.) (millions of...

Cranberry

Marketing

Committee

USA

update

Scott J. Soares

Executive Director

[email protected]

Association des producteurs

de canneberges du Québec TRYP by Wyndham Quebec Hotel Pur

395 Rue de la Couronne, Québec, QC

March 30-31, 2015

Cranberry Marketing Committee | USA

CMC Meeting Recap

U.S. Cranberry Acres and Yield 1960 - 2014

Source NASS / USDA

40,500 acres

~16,400 ha

2014 reported

~ 200 barrels/acre

~ 50,000 lbs / ha

2014 crop average

U.S. Cranberry Production

1988 – 2014 (100lb barrels)

4,080,000

6,357,000

7,865,000

8,957,400

*8,014,755

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Barrels

Source: NASS / USDA (shaded blue)

* For 2014 CMC reported production used (CMC Domestic Production Red dash line)

(801, 475,500 lbs)


Inventaire de début (Beginning Inventory)

• dans des congélateurs , traitées et de se concentrer (in freezers, processed and

concentrate )

tout à l'année précédente (all up from previous year) (+8%, +17%, +69% resp.)

• Tonneaux sur la main (Barrels on Hand ) +29%

Barils Acquis (Barrels Acquired)

• Domestique (Domestic) -9%

• étranger (Foreign) +8%

• Totaux (Total) -7%

Ventes (Sales)

• Vendu au Gouvernement (Sold to the Government) +108%

• Total des ventes intérieures (Total Domestic sales) +10% (due to Government & Handler

Processed /Sold, latter +13%)

• Les ventes totales étrangères (Total Foreign sales) +26%, représentant 4ème année

consécutive de hausse , la plus grande augmentation de volume dans la décennie et le

1er temps supérieur à 1 million de barils de 1er cycle (representing 4th consecutive year

of increases, largest volume increase in decade and 1st time greater than 1 million barrels

for 1st cycle)

Le stock de clôture (Ending inventory)

• dans des congélateurs et forme transformée(in freezers and processed ) -2% and -1%

• en concentré (in concentrate) +30%

• en stock (in inventory) +5% plus petite augmentation des stocks en 4 ans de culture

(smallest increase in inventory in 4 crop years)

CMC 1st Cycle Report - 2014 Crop Year – September 1, 2014 – December 31, 2014

2014 Marketing Policy (Feb 2014 est.)

(millions of barrels)

Carry in 7.700

Forecast 8.322

Prod & Acq 9.822

Adjusted Supply 16.975

Total sales/use 8.070

*Carryover (2014) 8.905

CMC Market Policy Development

2014 Actual (December 31, 2014)

(millions of barrels)

7.498 -2.6%

8.014 -3.7%

9.648 -1.8%

(estimate) 16.821 ~

(estimate) 9.021 11.8%

(estimate) 7.944 -10.8%

One Year Ago…

* Actual 200,000+ less than if volume regulation approved

Total Processed, Domestic and Export

Cranberry Sales 1988-2014 (en 100lb barils)

8,714,563

5,807,002

2,907,561

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Barrels

Total Processed Sales Processed Domestic Sales Processed Export Sales

6%

5%

9%

Source: Cranberry Marketing Committee

* 2014 Crop Year sales are estimated

Comparison Total Sales & Total Available Supply

1988-2014 (en 100lb barils)

17,184,890

9,021,809

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Barrels

difference available supply and sales

Total Available Supply

Total Sales

6%

6%

Source: NASS / USDA and Cranberry Marketing Committee

* 2014 Crop Year sales are estimated


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Growth in Foreign

Production

2014

Over 3.3 million barrels

3.25 million barrels (QC and BC)

Over 15,000 acres (QC and BC)

30% average growth 1997-2013

barrels

(en 100lb barils)


Total Domestic & Foreign

Acquired Cranberries (en 100lb barils)

2000-2014

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000 Total Domestic Acquired:

Total Foreign Acquired

QC Production

Foreign as % of Total Acquired

Linear (Foreign as % of Total Acquired)

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

883,773 985,452

1,216,958 1,261,045

1,151,398 1,428,245

1,213,923 1,256,548

983,858 1,251,968

2,195,873 3,058,921

4,177,384 3,731,865

2,500,915 2,505,654

3,257,031 3,271,326

3,036,560 3,169,908

3,020,302 4,445,751

4,610,594 4,101,532

4,567,752 5,794,086

7,497,998

Actual Cranberry Handler Carry-in Inventories 1988-2014

Source: Cranberry Marketing Committee (see Table CMC Total Available Supply and Total Sales 1988-2014)

• Total Inventory up 29%

• 2014 Carry-in Inventory Composition

- 35% Freezers

- 25% Processed form

- 41% Concentrate

• Concentrate only form consistently up last 3CY

What is CMC doing?

FSMIP and SCBG

International programs emphasis

QSP – add concentrate to the mix.

Parameter 2014 CY 2015 CY % difference

Carry in 7.700 7.750 1%

Production Forecast 8.322 8.880 7%

Production + Acquired 9.822 10.480 7%

Adjusted Supply 16.975 18.230 7%

Total Sales/Use 8.070 9.500 18%

Carry Over 8.905 8.156 -8%

Carry Over as % of projected

total sales 110% 88% -20%

CMC Market Policy Development

Producer allotment with 2/2014 conditions proposed

• Motion failed: 5 yes, 7 no, 1 abstention


CMC February 2015

meeting recap

In addition to “Market Policy” work…

International Promotion Program Update

Domestic Activities & Communications Update

Trade Policy Issues Update

Partners & Contractors Reports

CMC Administrative Business

USCRANBERRIES.COM


Growing Importance

of Export Activity


Bringing it all Together:

A Case Study through

Deliverables

Cranberry China Media Tour 2014


International Promotion

2-hour radio interview

6 original online articles

12 pages consumer publications

25-minute program Hunan TV

$2.9 million Total Media Value

78,000,000Total circulation of online/print articles

150,000,000 + consumers reached

Awareness doubled in two years!

Leveraging Funding

~ $100K total cost

$50K covered by MAP/FMD

$20K covered by SCBG

Domestic Promotion

1 Industry Trade Partner (CCCGA)

3 Domestic radio interviews

5 Industry Brand Partners

12+ Food Industry Partners (MSFA)

Communications

500 + collateral generated & shared

6,200 + social media network reach

100,000 + Domestic media readership

Articles published that otherwise would not have…e.g. NY Times

“Exponential Amplification”

USDA success story

Goal Achieved:

Linking all promotional activities through improved communications tools & process

Deliverables by the Numbers


0

100

200

300

400

500

600

700

800

900

7/18/13 9/5/13 10/24/13 12/12/13 1/30/14 3/20/14 5/8/14 6/26/14

Results of first of four Cranberry Marketing Committee coordinated in-store sales promotions

6/19 - 7/2 2/$5.00

10/3 2/$5.00

360° Supermarket Promotions Drive Sales

Sale strengthened by:

• Newsletter promotion

• Ad circulars

• End cap display

• Website promotion

• In-store promotion

• In-store demos

• Social media

Domestic activity “modeling”

Increase usage; versatile, sweet & savory ingredient


3 eCookbooks & limited edition

hardcopies Coming - IV – US

Cranberry Grower’s Favorites

Strengthened SNA Toolkit

Creating and Sharing high quality

collateral

Maximizing Social Media reach

Creating new cranberry video

collateral


Diane Swiontek/Clayton

School District/Clayton, WI


$11,802,154

$32,161,810

$56,543,560

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2008 2009 2010 2011 2012 2013 2014 2015

USDA Cranberry Purchases 2008 - 2015

Cranberry Juice Conc. Cranberry/Apple Juice Cranberry Sauce Dried Cranberries

Dried Cranberries 34% or $19.5 million

379% From 2013


New Trademark

Brand what we represent

not who we are

Trademark for the industry

International markets


Referendum

primer

2011 referendum recap 2015 referendum


CMC 2011

Referendum Results

390, 76%

122, 24%

Ballots Cast (Growers Voting)

3.5, 76%

1.1, 24%

Volume Represented (millions of barrels)

• 512 total ballots cast • ~ 42.7% eligible growers

• 4.6 million total barrels • ~ 59.3% of US production (2011 CY)


Cranberry Marketing Order Continuance?

Eligible Growers Voting

IN FAVOR

Volume Represented by

Growers Voting Order Continues

50% or more 50% or more YES

50% or more Less than 50% YES

Less than 50% 50% or more YES

Less than 50% Less than 50% NO

CMC 2015

Referendum

May 4 - May 26 likely.

Pending Secretary’s announcement, CMO terminated if 50% or more growers voting vote against continuance and those voting also represent 50% or more of the volume voting.


Scott J. Soares

[email protected]

508-291-1510

Merci

Beaucoup!

mailto:[email protected]

cranberry marketing committee - notre canneberge 2014 marketing policy (feb 2014 est.) (millions of...

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