national honey board annual report positioning the nhb as the go-to resource ... national honey...

2011

National Honey Board Annual Report

2NATIONAL HONEY BOARD ANNUAL REPORT 2011 BACK TO CONTENTS

Contents

Board Members 3

Marketing Report 4

General Consumer Public Relations 5

Hispanic Public Relations 7

Sports Marketing Public Relations 8

Foodservice Public Relations 8

Ingredient Public Relations 10

In House Public Relations 11

Research Report 12

Production Research 12

Development of Honey Purity Test 12

Other Research 12

Treasurer’s Report 13


2011 National Honey Board Members & Alternates

FIRST HANDLERS: BOARD MEMBERS

Buddy Ashurst, Chairman

Nancy J. Gamber-Olcott, Secretary-Treasurer

Brent Barkman

ALTERNATE MEMBERS

Ilene Miller

Jim Phillips

Brian Nipper

IMPORTERS: BOARD MEMBERS

Candace Trussler

Elise Gagnon

ALTERNATE MEMBERS

Ronald Phipps

IMPORTER-HANDLER:

BOARD MEMBER

Hans J. Boedeker

ALTERNATE MEMBER

Nicholas Sargeantson

MARKETING COOPERATIVE:

BOARD MEMBER

Mark Mammen

ALTERNATE MEMBER

Robert Brandi

PRODUCERS:

BOARD MEMBERS

Zac Browning

Clint Walker III, Vice Chairman

George Hansen

ALTERNATE MEMBERS

David Ellingson

Mark Brady

Bonnie Woodworth


The National Honey Board (NHB) is dedicated to

developing promotion and advertising programs

that are designed to increase demand for honey and

honey products. The organization reaches out to

consumers, both English and Spanish-speaking, the

foodservice industry, food manufacturers, retail and

wholesale bakers, health care professionals,

registered dieticians and nutritionists, as well as the

fitness and athletic community. With such a diverse

group of target audiences, the challenge lies in

finding appropriate tactics that effectively reach

each segment.

To better understand the ever-evolving needs and

tastes of its audiences, the NHB conducts market

research geared toward identifying the diverse

perceptions and uses of honey. Based on this

information, the NHB creates various websites and

resources for all target audiences to easily find the

information that is most relevant to their needs,

thereby positioning the NHB as the go-to resource

for all things honey.

The NHB’s marketing program strives to strengthen

and enhance the image of honey. In 2011, marketing

efforts focused on generating widespread awareness

of honey and its many uses and benefits. Through

NHB’s market research and trend tracking, the Board

identified ways to emphasize how honey fits into its

audiences’ demands and the movement toward more

natural foods.

All the NHB’s marketing programs promoted honey in

and out of the kitchen as an all-natural, flavor-

enhancing, one-ingredient sweetener. In addition, the

programs also sought to educate the various

audiences about honey’s benefits as an energy

booster, as a skin moisturizer and as a cough

suppressant. With elements like recipe promotions,

chef events, intensive media outreach, sports

marketing events and more, the NHB made a name

for honey’s versatility through increased publicity that

showcased honey’s marketability and popularity in

products and promotions.

The following are highlights from the

2011 marketing program areas.

National Honey Board Annual Marketing Report


GENERAL CONSUMER PUBLIC RELATIONS $991,591

Highlights of 2011 Marketing Programs

Minor League Baseball Media Tour and

Audio News Release

In May, the NHB conducted a 3-city Minor League

Baseball Media Tour to promote the energy-boosting

qualities of honey. The selected cities were Buffalo,

Louisville and Sacramento; these are home to the top

MiLB teams and strong media markets. Two

spokespeople were leveraged for this tour: registered

dietitian and sports nutritionist Mitzi Dulan and

retired major league baseball player Sid Bream.

An additional component of the Media Tour was the

development and distribution of an Audio News

Release (ANR) during Major League Baseball’s all-star

break. On behalf of the NHB, Mitzi Dulan recorded a

60-second radio news release that reinforced the

natural energy booster message.

First Birthday Educational Program

The NHB partnered with the National Association of Pediatric Nurse

Practitioners (NAPNAP) to educate health professionals and

consumers about the positive benefits of re-introducing honey as a

natural, wholesome sweetener and versatile lifestyle product to the

entire family through a trusted source. The objective was to introduce

honey during a significant moment of time such as a child’s first

birthday celebration.

In conjunction with NAPNAP, an educational tear-sheet pad with a

counter card was designed as a tool for health care professionals to

provide their clients and patients. The tool provides better

understanding of honey, informs parents of the correct age to give

honey to children, and illustrates the reasons why honey shouldn’t

be given to infants under age one. It also highlights the benefits

of honey as a culinary ingredient and cough suppressant, and

includes a wholesome first birthday cake recipe. 3,348 tear sheet

pads were mailed to NAPNAP professionals. This program will

continue in 2012 to broaden the message to the health care community.

New York Beauty Event

In June, the NHB organized and hosted a beauty

event for the media at the Caudalíe Vinotherapie Spa

at The Plaza Hotel in New York City. The event was

called, Discover the Beauty of Pure Honey—One Ingredient. The Way Nature Intended. Spokesperson

Gretta Monahan, a renowned beauty expert, revealed

to the media the NHB’s scientific research proving

honey is an effective skin moisturizer. She also touted

the benefits of honey as a beauty ingredient, often

referring to it as “liquid gold” of the beauty industry.

She also shared five exclusive beauty tips she

developed using honey for do-it-yourself (DIY)

pampering at home.

The event was attended by ten media representatives

from a variety of long-lead publications and blogs,


GENERAL CONSUMER PUBLIC RELATIONS (CONT’D)


including: Family Circle, Health, Daily Glow, Colin Cowie Weddings, Beauty Blitz Blog, Real Simple, Ladies’ Home Journal, Stylelist.com, and NYCityMama.

Media coverage included eight placements with

over 11 million impressions.

Test Kitchen Seminars with Chef David Guas

Chef David Guas and the NHB marketing team met

with 34 editors from nine publications during the Test

Kitchen Seminars held in New York, NY, and Nashville,

TN. The meetings were scheduled during the month

of March in an effort to secure Back-to-School

coverage, as September is National Honey Month.

During the seminars, Chef David Guas discussed how

honey is the one essential ingredient to not only spice

up lunch items for both kids and adults, but also

shared other culinary ideas and trends to

demonstrate the versatility of honey. In addition,

Chef Guas walked editors through a tasting of three

lunchbox recipe ideas all using honey.

Media Outreach

Media outreach is an essential factor of expanding

the NHB’s visibility among consumers. Tactics such as

mat releases and editorial pitches promoting usage of

honey and recipes are crucial to reach our target

audience and reinforce our messaging. The NHB

developed four mat releases showcasing the

versatility of honey as a cough suppressant, natural

energy booster, beauty aid and culinary ingredient.

“Soothe Children’s Coughs Naturally and Affordably

with Honey” release reached a readership of 16 million

and more than 143 million unique visitors per month.

“Beat the Afternoon Slump with Honey—A Natural 3

P.M. Energy Boost” release reached a readership of

more than 20 million and more than 104 million

unique visitors per month. “Discover the Beauty of

Pure Honey” release garnered a readership of more

than 17 million and more than 112 million unique

visitors per month. “To the Rescue: Honey a Must-

Have in Gluten-Free Holiday Recipes” release reached

a readership of more than 9 million and more than 67

million unique visitors per month.

Chef David Guas Integrated Media Tour (IMT)

During September, the NHB worked with Chef

David Guas to promote National Honey Month

via an integrated media tour (IMT) with the goal

of securing television and radio interviews with

various media outlets throughout the country.

The theme of the tour was honey‘s versatility as

a unique culinary ingredient, the benefits of a

natural sweetener, ways to incorporate honey

into creative lunchbox ideas, and usage tips.

In addition to the tour, the NHB produced a

60-second audio news release recording that

was disseminated nationally. During the IMT the

NHB was able to capture a two-minute video of

Chef Guas demonstrating one of the recipes

which was then featured on www.honey.com

and the NHB’s YouTube Channel.

The media tour resulted in audio news release

airings for a potential audience of 16+ million,

plus 26 interviews (9 TV; 17 radio) with a

potential reach of 18+ million.


HISPANIC PUBLIC RELATIONS $408,655

Valentine’s Day

The NHB launched the “Día del Amor/Valentine’s Day

with Honey” campaign in mid-January with the goal

of introducing gourmet, honey-based dishes to cook

at home for your significant other on Valentine’s Day.

The Peruvian-influenced dishes were created by

internationally renowned Chef Ricardo Zárate. Key

messaging of the campaign centered on the gourmet

versatility of all-natural honey and its ability to

accentuate flavors rather than overpower any dish.

Promotional activities included a media tour with

Chef Ricardo Zárate in LA and Miami, a media tasting

event at Chef Zarate’s award-winning restaurant

Mo-Chica, and production of two “Cooking Up

Romance” how-to videos featured on mielpura.org.

Media coverage included 249 online placements,

42 print placements, and 3 television placements.

Traditional Candies for Halloween

At the end of September 2011, the NHB set the

“Traditional Candies for Halloween (Dulces Típicos para Halloween)“ campaign in motion. The goal of the

campaign was to use honey-based candies to bring

together a Latino holiday, Día de Muertos/Day of the

Dead, which celebrates loved ones that have passed,

and the American holiday of Halloween. Both holidays

share a similar theme in having fun with the idea of

mortality, with offerings and treats at the center of

both traditions. NHB enlisted the help of Chef Bret

Thompson to develop honey-based candy recipes

inspired by traditional Latin-American candies with

the purpose of introducing them to consumers as

an option for Halloween. These new, natural options

that could easily be made at home helped introduce

younger bi-cultural generations to Day of the Dead

and allowed them to enjoy these treats for both

holidays. The promotion included two how-to

videos featured on mielpura.org and national media

outreach that resulted in 149 online placements

and 42 print placements.

Honey from Head to Toe

In November, the NHB launched the “Honey from

Head to Toe” campaign with the goal of sharing

honey-based beauty treatments that can easily and

cost-effectively be prepared at home. Celebrity

makeup artist Jackie Gómez acted as spokesperson

and helped to drive home the idea of using a natural

product to keep skin hydrated during winter.

Consumers are demanding cosmetics and personal

care products made from natural ingredients and

promoting honey’s skin moisturizing benefits was a

natural fit for the campaign. Promotional activities

included two beauty recipe how-to videos featured

on mielpura.org and a media tour with Jackie Gómez

in LA and Miami. The media tour resulted in

placements in all of the top Spanish language

networks, including Univision, Telemundo and CNN en

Español. The campaign also resulted in 230 online

placements and 20 print placements.


Honey Energy Boosters

The NHB kicked off a Honey Energy Booster campaign in mid-May with the goal

to teach consumers about honey as a source of natural energy for everyday

activities and during exercise. NHB utilized fitness expert Bárbara Trujillo-Gómez

to act as a spokesperson. As the founder of her own fitness brand, B&B Fit, and

author of “…Bárbara por Atrás” — A Latin Woman’s Guide to Fitness, Bárbara was an

effective voice for the campaign and was well received by media. She helped

drive the key messaging of adopting a more active lifestyle with the help of

honey in anticipation of summer. To compliment this, the mielpura.org website

hosted an eight-week-long series of videos that demonstrated quick and easy

exercises, as well as nutritious honey-based meal plan ideas developed by

Bárbara. The energy campaign resulted in 282 online placements, 24 print

placements, two radio placements, and 22 television placements.

http://mielpura.org

http://mielpura.org

Culinary Institute of America



SPORTS MARKETING PR (Minor League Baseball) $379,975

In 2011, the NHB continued its fourth annual

partnership with Minor League Baseball, beginning in

early April at the start of the MiLB season, and

continuing through post-season into early September.

The 2011 program was expanded to include seven

teams with geographic dispersion from coast-to-

coast: Jacksonville (FL), Louisville (KY), Buffalo (NY),

Richmond (VA), Corpus Christi (TX), Albuquerque

(NM), and Sacramento (CA). These teams/markets

were selected based on overall attendance and

promotional capabilities, quality of media and radio

partners, and opportunities to provide messaging and

awareness in markets not previously reached through

this program.

Promotions included positioning honey as the

“Official Natural Energy Booster” of the team,

prominent stadium signage, nightly in-stadium

between inning honey trivia fan contest, broadcast

radio announcements of the “Pure Energy Play of the

Game, brought to you by honey …,” and team website

banner ads. A honey purchase incentive promotion

was designed to increase the awareness and

consumption of honey; each of the seven teams

made discounts available to fans with the proof of

purchase of any brand or size container of honey.

The program resulted in more than 13.9 million

impressions, including: stadium attendance,

radio announcements, website views, email blasts,

pocket calendars, local newspaper mentions and

information handouts.

FOODSERVICE PUBLIC RELATIONS $353,309

Culinary Institute of America (CIA) Event/Honey Summit

The NHB partnered with the CIA at the Greystone campus to host an educational Honey Summit in June 2011.

Drawn from a wish list of top-tier foodservice industry influencers, the dozen VIP participants included culinary

executives at top commercial and non-commercial foodservice operations. The custom-designed two-and-a-half

day Honey Summit included a Honey 101 informational session conducted by CIA instructors and followed by an

inspiring presentation by Chef David Guas, a honey varietal tasting workshop, a visit to an apiary to see honey

production first-hand, and honey-inspired recipe ideation in the pristine CIA kitchens. The event proved to be an

unmatched opportunity to educate key foodservice industry contacts about honey and establish relationships

offering longer-term benefit and value.



International Foodservice Editorial Council (IFEC)

The NHB participated in the IFEC Conference in

Washington, D.C. Nov. 7 – 10. IFEC is an annual

conference for foodservice media that provides an

opportunity for the NHB to connect with key media

and influencers and secure priority honey placements

in many of the top foodservice publications. During

the conference, the NHB participated in six one-on-

one meetings with editors to pitch story ideas,

recipes, photos and other information that fits the

needs of editors’ upcoming editorial plans. The

NHB’s presence at the IFEC’s Chef Showcase created

top-of-mind awareness of honey, while spokesperson

Chef David Guas prepared two honey recipes on

the conference’s opening night for the foodservice

media to sample.

Women Chefs & Restaurateurs (WCR)

WCR hosts an annual conference consisting of

keynote presenters, panel discussions, master

cooking classes, culinary tours, networking lunches,

awards dinner and InfoFair. The NHB attended the

conference November 4-7, 2011, in Boston, Mass. As a

Platinum sponsor, the NHB and honey were featured

prominently throughout the conference. The NHB

hosted a booth at the WCR InfoFair, providing visitors

with honey information and collateral materials.

The NHB fielded questions about honey for

foodservice applications, solicited sign-ups to NHB’s

foodservice e-newsletter (Hot from the Hive), as well as

shared recipes and other honey-related information.

The event was very successful in creating visibility for

NHB and bringing honey to the forefront among this

group of foodservice professionals, chef instructors

and students.

E-Newsletter, Hot from the Hive

The NHB’s foodservice industry quarterly

e-newsletter, Hot from the Hive, has captured an

engaged and growing reader base since its launch in

August, 2010. Throughout 2011 we continued

delivering fresh content in an attractive, user-friendly

format to edify reader loyalty. In addition, we pursued

opportunities to grow the reader base through

industry contact, “share with a friend” options and

media outreach. Through timely and relevant content,

an appealing format and accessibility, Hot from the Hive has established itself as a welcomed resource for

honey news and information among our target

readers — foodservice professionals in the

commercial and

non-commercial

arenas.

FOODSERVICE PUBLIC RELATIONS (CONT’D)

Marketing Materials

The NHB developed a new honey foodservice brochure in 2011. The high-

quality brochure highlights honey’s unique properties and versatility (through

photos, information and recipes), along with substitution and other tips for

using honey in foodservice applications. The brochure will be shared with

trade industry contacts and foodservice media throughout 2012 and

beyond, via trade shows, mailings, one-on-one industry and media

outreach, and more.



Market-Specific Websites/eNewsletter

The NHB focused its interactive efforts on providing

a constant stream of new content on the NHB’s four

food ingredient websites: bakingwithhoney.com,

snackingwithhoney.com, candywithhoney.com and

dairywithhoney.com. Each site was updated weekly

with new product information, trend stories, bakery

profiles and general honey information. In addition

to the website, NHB also published a monthly

eNewsletter and aggregated all of its content

through a new website, www.madewithhoney.com.

Marketing/Collateral Materials

The NHB developed two marketing pieces promoting

the use of honey in dairy and candy products. These

materials followed a similar format to the 2010 Snack

Ideas with Honey brochure, focusing on information

and ideas about using honey in new and existing

products. The types of candy product ideas

incorporating honey that were featured in the Candy

Ideas with Honey brochure included jelly beans, drops

and lozenges, hard candy and candy bars. Some of

the dairy and honey product ideas featured in the

Dairy Ideas with Honey brochure included Greek

yogurt, ice cream, butter and athletic milk beverages.

Media Outreach/Public Relations

The NHB conducted a comprehensive public relations

campaign aimed at all ingredient markets with a

focus on baking and snack foods, and dairy and

candy products. The goal of the campaign was to

gain media coverage of honey and establish the NHB

as a key opinion leader in the industry. In addition to

targeted story public relations, we also developed

press releases and strongly promoted NHB’s formulas

and baker and consumer research. We garnered

mentions in many of the top trade magazines,

ranging from press release pickups and interview

quotes to extensive honey background info and entire

articles dedicated to honey.

Research

The NHB worked with Cypress Research Associates

to conduct research on honey’s usage and

acceptance in the retail and wholesale baking

industry. The retail and wholesale bakery research

product consisted of an online survey to retail and

wholesale bakers to determine current honey usage

levels and opportunities for increasing honey use.

With the wholesale bakery survey, we learned that

bakers understand the benefits of honey but there

are obstacles with usage that range from supply to

handling. For retail bakers, the challenge lies in

accessing recipes they can use.

Tradeshow

The NHB exhibited at the All Things Baking show in

Schaumburg, Illinois, from October 2-4, 2011. The

inaugural show was a joint venture of the Retail

Bakers of America, American Bakers Association and

BEMA, and was launched in an attempt to

consolidate some of the smaller baking shows into

one event. The show skewed mainly toward retail and

specialty bakeries, but did feature attendees from

some large and prominent wholesale bakeries and

bakery cafe chains.

Advertising

The NHB introduced a new advertising campaign in 2011 that was focused on the

natural benefits of honey, including flavor and function. The new campaign’s tagline

was “Honey: The One and Only,” and consisted of two advertisement graphics, one

designed for the retail baking industry, and the other for the commercial baking

and general ingredient market. These advertisements were placed in seven

magazines, mainly focusing on the baking and snack industries with additional

coverage in Food Processing magazine, which covers the spectrum of food and

beverage manufacturers. The NHB also ran a targeted eNewsletter advertising

campaign with Baking Buyer’s online property. The campaign focused on Holiday

Baking Formulas, and was distributed in September, November and December.

INGREDIENT/BAKING PUBLIC RELATIONS $239,663

http://bakingwithhoney.com

http://snackingwithhoney.com

http://candywithhoney.com

http://dairywithhoney.com

Recipe How-To Video Series

The NHB produced six recipe demonstration videos showcasing honey’s

versatility across the menu. These timeless, consumer-oriented videos

feature Chef Laurey Masterton and sports nutritionist and registered

dietician Mitzi Dulan. The videos are featured on Monkeysee.com, NHB

social media sites and honey.com, as well as distributed (by Knowlera

Media) to television stations across the country.


IN-HOUSE PUBLIC RELATIONS $114,153

Many activities are implemented and managed solely

by NHB staff, without agency involvement or costs.

These activities may crossover into some of the above

areas, but they are managed internally and referred to

as “In-House” programs.

Big Game Day Entertainment CO-OP

Satellite Media Tour (SMT)

In February, the NHB participated in a co-op satellite

media tour (SMT) to reinforce honey’s versatility in Big

Game Day party foods. The SMT was held during the

week leading up to the 45th Super Bowl in order to

capitalize on all the media coverage surrounding not only

the game, but also hosting parties and entertaining at

home. Diane Johnston, the wife of Daryl “MOOSE”

Johnston who led the Dallas Cowboys to three Super

Bowl wins, shared her party tips to help viewers across

the country create an excited home-gating experience.

She also shared honey tips on how versatile honey is in

many different types of dishes and how it can be added

to any party food staple to give it that extra something.

This SMT resulted in more than 310 total airings including

television, radio and online with impressions reaching

nearly 4.3 million.

Capitol Hill Volleyball Classic (CHVC)

The NHB exhibited at the CHVC in Washington, D.C. over

President’s Day weekend. The volleyball tournament

draws athletes from around the country and allows them

to compete for a bid to the USA Volleyball Girls’ Junior

National Championships. Held annually, the tournament

draws more than 5,000 athletes, 700 club coaches and

approximately 100 college coaches. While exhibiting at

the tournament, NHB staff spoke to young athletes about

honey’s ability to be a great natural energy booster. The

NHB also handed out our marketing brochures, honey lip

balms, drawstring sports packs and honey sticks.

Holiday Entertaining CO-OP Satellite Media Tour

The NHB participated in a co-op satellite media

tour (SMT) to reinforce honey’s versatility in many

dishes, especially during the holiday entertaining

season. The SMT was held in early November in

order to be included in all the media coverage

from Thanksgiving and beyond. The tour

broadcasted live from Los Angeles, and featured

author and television personality Jeanne

Benedict, author of Plan to Party: Simple and Special Entertaining in Your Home. Some of the great honey

tips that she shared included how versatile of an

ingredient honey is and how it can be

incorporated into many different types of dishes,

as well as the benefits of adding honey to both

sweet and savory holiday entertaining staples.

The broadcast had more than 414 total airings

including television, radio and online with

impressions reaching nearly 6.6 million.

Social Media

In 2011, the NHB’s social media presence launched

in to its second year, complete with a Facebook

page, Twitter profile, YouTube channel, blog and

email blast. The chosen social media networks

helped generate widespread awareness of honey

and its many uses and benefits. The NHB has

created a constant presence with its social media

audience. The broad range of topics showcased

on the social media sites has encouraged more

fan participation and interest. The honey facts

and questions have been not only interesting to

our audience, but also garnered a great deal of

engagement and participation.


http://honey.com

PRODUCTION RESEARCH $176,524

DEVELOPMENT OF HONEY PURITY TEST $263,016

OTHER RESEARCH $71,322

Five percent of our estimated assessment revenues are committed to “production research”, or research related

to the production of honey prior to packing. It includes studies on honey bees, maintaining the health of honey

bees, pest and disease control, and other management aspects of beekeeping, honey production, and honey

bees. In recent years our production research has focused specifically on maintaining the health of honey bees.

Expenditures in 2011 were for ongoing projects from 2009, 2010, and 2011. New research contracted for in 2011

totaled $241,303. A list of bee research projects, by year contracted, is available on the Honey Board’s website at

http://www.honey.com/nhb/industry/bee-health-research/.

In 2011 the NHB contracted with two laboratories to develop a test or tests that can identify a product as pure

honey with its inherent characteristics and functional properties, and can help differentiate it from honey

pretenders that have a negative impact on the honey industry. Both projects extended into 2012, with results

expected by the end of 2012. The total dollar commitment for the two contracts was $339,500.

Other research projects in 2011 included:

Evaluating the glycemic effects of honey in comparison to sucrose and $22,420

high fructose corn syrup. This project is expected to continue into 2013.

Evaluating the efficacy of honey to clean hair via the ability to remove $30,000

dulling sebaceous soil.

Evaluating the effect of heat and filtration on honey, a preliminary study. $18,902

ResearchFor the National Honey Board, “research” means any type of test,

study, or analysis designed to advance the image, desirability, use,

marketability, production, product development, or quality of honey

and honey products. It includes scientific research, as well as market

research. Most of our scientific research includes studies to improve our

knowledge of the composition, functional properties and health-related

applications of honey, or product development to find new uses for honey.


Budget Actual Explanatory Comments

Cash in bank, beginning of year $ 1,151,700 $ 1,151,718

Receipts: Assessments - domestic honey 1,300,000 1,248,898 31% of assessments received

Assessments - imported honey 2,600,000 2,794,596 69% of assessments received

Merchandise sales 31,000 25,947

Investment income 3,300 440

Total receipts 3,934,300 4,069,881

Disbursements: Marketing:

General consumer 1,071,777 991,591

Hispanic consumer 460,169 408,655

Minor League Baseball 380,000 379,975

Food service 414,862 353,309

Baking & ingredient industry 251,992 239,663

In-house public relations programs 116,300 114,153

Other 41,600 36,634

Total marketing disbursements 2,736,700 2,523,982

Research:

Other research 115,237 71,322

Production research - 2011 223,000 75,943

Production research - 2010 49,098 49,098 5% of assessments was budgeted & committed;

unspent balance for 2009-2011 will be disbursed

in subsequent years as projects are completed.

Production research - 2009 60,073 51,483

Honey purity testing 299,800 263,016

Market research & data collection 34,950 29,233

Scientific & technical consulting 18,044 12,266

Other 1,000 885

Total research disbursements 801,202 553,245

Industry Services:

Fulfillment material 85,100 74,972

Fulfillment shipping 15,600 22,691

Crisis communication 26,000 25,791

Industry meetings 4,000 2,020

Total industry services disbursements 130,700 125,473

Emerging Opportunities 3,698 3,697

Other:

Personnel 739,200 730,066

Office expenses 80,800 60,222

Facilities expense 97,800 102,150

Professional services 21,200 14,555

Travel 34,300 17,598

Board meetings 72,000 42,862

Federal fees 161,600 151,151

Equipment purchases 6,800 5,774

Total other disbursements 1,213,700 1,124,378

Total disbursements 4,886,000 4,330,776 Incomplete projects from 2011 were carried over into

2012. The 2012 budget includes $150,694 of funds

committed to completion of these projects.

Cash in bank, end of year $ 200,000 $ 890,822 Fully collateralized in accordance with

USDA requirements.

CASH SUMMARY 2011

National Honey Board Treasurer’s ReportCALENDAR YEAR 2011 ACTIVITY


Administration & Depreciation $628,987 14.5%

Emerging Opportunities $3,697 0.1%

Program Area 2 $228,821 5.3%

Program Area 1 $610,336 14.1%


Program Area 1: RESEARCH

• Developcomprehensiveknowledgeofhoney’s

composition, functional properties and

health-related benefits.

• Advancescientificinterestinhoneyresearch

and applications.

• Conductmarketresearchand/orcollectrelevant

sales and trends data.

• Supportthehoneyindustryineffortstomaintain

honey quality.

• Guidedbymarket-drivenand/orscience-based

research, pursue product development for the purpose

of finding or creating new and increased uses of honey.

• Conductresearchdealingwithhoneybeecolony

management to help producers maintain colony health

while allowing for the production of quality honey.

Program Area 2: INDUSTRY SERVICES

• Providepracticalmethodsandtoolsforhoney

industry members to capitalize on NHB research

and honey promotional programs.

• Informandeducatethehoneyindustryabout

National Honey Board programs and activities and

changes in the regulatory environment affecting

the honey industry.

• Fosterindustryrelationshipsanddevelopment.

• Anticipatepotentialthreats,createandimplement

programs to protect honey’s pure, natural image.

Program Area 3: MARKETING & PROMOTIONS

• Increaseconsumptionandpurchase

frequency of honey using food and

non-food strategies.

• Increasetheuseofhoneyin

foodservice operations.

• Increasehoney’suseasaningredientwith

food, beverage and non-food manufacturers.

EMERGING OPPORTUNITIES

• Provideaflexiblesourceoffundsforuseat

the discretion of the Chief Executive Officer

to respond to issues unanticipated in the

annual budget which arise during the

course of the year.

ADMINISTRATION & DEPRECIATION

• Officeadministrativepayrolland

payroll overhead.

• Officeadministrativeexpenses(supplies,

postage, insurance, rent and utilities,

financial audit, legal)

• BoardMeetings

• Federaloversightfees,U.S.Customs

collection fee, Office of General Counsel fee.

• Depreciation


BY PROGRAM AREA

(Amounts include indirect costs)

2011 PROGRAM AREAS

Program Area 3

$2,866,083 66.1%

To ensure accurate and reliable reporting of the National Honey Board’s financial results, an annual independent

audit is conducted by a certified public accounting firm chosen by the Board. The audit is conducted in

accordance with generally accepted auditing standards and the standards applicable to financial audits

contained in Government Audit Standards, issued by the United States Comptroller General.

The audit of the 2011 financial statements was completed in February 2012 and was presented by the auditor to

the Board at their March meeting. The audit resulted in an unqualified audit opinion, as well as audit assurance

that the Board is in compliance with investment guidelines established by the Agricultural Marketing Service of

the USDA. Copies of the audit report and complete financial statements are available from the National Honey

Board office. Call (800) 553-7162 to request a copy.

The Balance Sheet (Exhibit A) and the Statement of Revenue, Expenses and Changes in Fund Balance (Exhibit

B) from the audited financial statements are included in this report.

To ensure that the members of the National Honey Board are aware of the Board’s most current financial

results, monthly financial reports and budget variance reports are prepared by the Board’s staff. This

information is regulary reviewed by staff project managers and Board members.

Submitted by Nancy Gamber Olcott, Secretary/Treasurer

May 2, 2012_______________________________________________ _______________________

Nancy Gamber Olcott Date



AssetsCURRENT ASSETS

Cash on hand and in banks

Prepaid expenses

Fulfillment inventory

Deposits on leases

Total current assets

PROPERTY AND EQUIPMENT

Computer equipment

Office machines and equipment

Images portfolio

Less accumulated depreciation

Net property and equipment

TOTAL ASSETS

Liabilites and Fund BalanceCURRENT LIABILITIES

Payroll liabilities

Total current liabilities

COMMITMENTS AND CONTINGENCIES

FUND BALANCE

Unrestricted

Restricted – budgetary reserve

FUND BALANCE

TOTAL LIABILITIES AND FUND BALANCE

December 31,

2011 2010

$ 891,123 $ 1,152,018

17,104 16,792

63,421 56,692

9,489 9,489

981,137 1,234,991

12,407 10,248

13,664 11,409

50,000 50,000

76,071 71,657

(45,513) (31,676)

30,558 39,981

$ 1,011,695 $ 1,274,972

$ 8,386 $ 10,001

8,386 10,001

803,309 1,064,971

200,000 200,000

1,003,309 1,264,971

$ 1,011,695 $ 1,274,972

NATIONAL HONEY BOARD BALANCE SHEET – MODIFIED CASH BASIS

Exhibit A


Revenues Assessments

Investment income

Other (merchandise sales, donations)

Total revenues

Expenses Administrative expenses:

Administrative (Office)

Administrative (Board)

Administrative (Federal)

Total administrative expenses

Program expenses:

Advertising, public relations, and research

Industry service and support

Emerging opportunities

Total program expenses

Provision for depreciation and amortization

Loss on disposal of assets

Total expenses

EXCESS OF REVENUES OVER (UNDER) EXPENDITURES

FUND BALANCE, beginning of year

Charges to producer reserve

Change in inventory included in industry services

FUND BALANCE, end of year

December 31,

2011 2010

$ 4,043,494 $ 3,769,657

440 620

26,056 35,408

4,069,990 3,805,685

419,778 437,981

42,862 41,528

151,151 141,137

613,791 620,646

3,476,419 2,638,403

228,821 232,802

3,697 33,622

3,708,937 2,904,827

15,089 14,098

107 –

4,337,924 3,539,571

(267,934) 266,114

1,264,971 1,051,607

– (58,753)

6,272 6,003

$ 1,003,309 $ 1,264,971

NATIONAL HONEY BOARD STATEMENT OF REVENUE, EXPENSES AND CHANGES IN FUND BALANCE – MODIFIED CASH BASIS

Exhibit B


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