POTATOES USAM A R K E T I N G P R O G R A M S

2017–2018

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INTRODUCTIONThis past year has been quite the year for U.S. potatoes—a record year in fact—and Potatoes USA played an integral part in fostering that success.

Globally, U.S. potato exports set a record high of over $1.7 billion with the fresh weight equivalent of 72 million hundredweight. This international growth was supported by nearly 250 new menu items, 100 new product launches, over 100 endorsements from credible nutrition sources and features in nearly 575 celebratory articles for U.S. Potatoes.

Right here in the U.S., potato sales saw a 1.9% increase to 36.7 billion pounds sold. Potatoes are on 97% of U.S. menus, the highest penetration of any item in foodservice. Potatoes continue to maintain the title as U.S. consumers’ favorite vegetable, and we continue to see them enjoyed across the country.

The USDA awarded $2.7 million in funding for a Dickeya research project through its Specialty Crop Research Initiative as a result of work done by the Potatoes USA-led Potato Research Advisory Committee. Additionally, the entire industry now has 24/7 access to beneficial variety development data through the creation of the Variety Data Management System.

Potatoes USA is honored to be a part of the past, present and future accomplishments of the industry.

ABOUT POTATOES USAPotatoes USA is the marketing organization for the 2,500 commercial potato growers operating in the United States. We promote five main potato products: fresh table-stock potatoes, fresh chipping potatoes, seed potatoes, frozen potato products and dehydrated potato products. Potatoes USA provides culinary potato inspiration to key audiences, along with useful tools, education and support.

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INTERNATIONAL PROGRAM OVERVIEW

AN ENTIRE WORLD OF POSSIBILITIES FOR U.S. POTATOESThe international marketing program of Potatoes USA ensures that potato innovation spans the globe. By targeting consumers, foodservice representatives, importers, retailers, food manufacturers and growers, the international marketing program drives new sales by inspiring new uses and applications for U.S. fresh, frozen and dehydrated potatoes. Through effective market-driven strategies that focus on the greatest opportunities, Potatoes USA is proving that, no matter where the customer lives, U.S. potatoes offer a world of possibilities.

MARKET ACCESS IS A FOUNDATION FOR GROWTH

Greater access to international markets continues to be a key driver in developing global demand. Potatoes USA works with the National Potato Council, state potato organizations and industry groups to support and assist government-to-government negotiations. Potatoes USA’s work with customers in the markets also supports efforts to resolve trade barriers.

BUILDING EXPORT DEMAND IS A COOPERATIVE EFFORT

Potatoes USA wishes to thank the Foreign Agricultural Service of USDA, whose Market Access Program, Quality Samples Program, Emerging Markets Program and Technical Assistance for Specialty Crops Program help fund international marketing work. Marketing programs also benefit from strong support and participation by the U.S. potato industry, National Potato Council and state potato grower organizations.

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INTERNATIONAL FOODSERVICE MARKETING

EXPLORING NEW GLOBAL MENUS FOR U.S. POTATOESThree words describe the strategy for this program: exposure, innovation and engagement. With the aim of introducing new uses and products to current and new distribution channels in the foodservice industry, Potatoes USA continues to fuel new sales by putting U.S. potatoes on more menus around the world.

Trade education, technical training, merchandising visits, public relations and trade shows ensure foodservice representatives gain exposure to the potential of the full range of U.S. potato products. Why Buy U.S. messaging continues to be a powerful tool, while training offered only to U.S. customers maintains loyalty. Menu development activities, chef seminars, contests and reverse trade missions inspire potato innovation across all foodservice channels by encouraging participants to push the boundaries of potato versatility. Foodservice promotions featuring new menu creations engage and encourage consumers to see U.S. potatoes as global fare.

Last year’s program resulted in nearly 250 new U.S. potato menu items, 50 new foodservice operations are now purchasing U.S. potatoes and over 15 alternative foodservice channels now use U.S. potatoes. The program successfully extended sales in new markets like Myanmar and Vietnam while driving positive export growth in established markets as well. The current year’s program will build on these successes while expanding to new targets, such as noncommercial entities in select markets.

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INTERNATIONAL INGREDIENT MARKETING

INTRODUCING ONE OF THE MOST VERSATILE INGREDIENTS The heart of the International Ingredient marketing program is fostering innovation and new usage for U.S. dehydrated and frozen potato products, and fresh chip-stock. Targeting food manufacturers, snack manufacturers, bakeries and food developers, this program creates brand-new growth opportunities. Potatoes USA understands the individual foreign markets and develops product ideas that will resonate with each market’s consumers, playing to the strengths of the U.S. potato.

Every year, Potatoes USA conducts research and product application studies to find ways to increase the use of U.S. potatoes as an ingredient in new products. These pinpoint the benefits and appropriate formulations. The versatility, functionality and benefits of potatoes as an ingredient are conveyed to the trade through one-on-one meetings, seminars, trade shows and trade communications. Samples and technical assistance are effective at helping to facilitate new product trials.

This strategy resulted in more than 50 new products containing U.S. potatoes launched in foreign markets last year. More than 100 companies conducted U.S. potato product trials, including bakeries in Myanmar, resulting in the country’s first direct imports of U.S. dehydrated potatoes. In the current year, the ingredient program continues to leverage application studies into new sales while conducting new research and trade outreach to highlight the benefits of U.S. potatoes in even more products.

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INTERNATIONAL RETAIL MARKETING

TRAINING AND PARTNERSHIPS DRIVE NEW RETAIL SALESPotatoes USA works with international retailers in nine markets to ensure that U.S. potatoes appear on consumers’ tables at home more often. High-quality U.S. potato products are introduced to consumers through supermarkets as well as online stores.

The program includes education, such as training seminars to improve knowledge regarding storage, handling and marketing of U.S. potatoes and products. These result in more effective merchandising of U.S. potatoes, ultimately driving more sales. In-store and online promotion partnerships, product sampling and development of point-of-sale materials encourage consumer trial and repeat purchases.

Thanks to this program, international retailers conducted nearly 500 promotions last year that increased U.S. potato sales by 75% or more and nearly 80 new U.S. potato products are now carried by international retailers. U.S. fresh table-stock potato sales reached record levels in Central America, the Philippines and Taiwan, and gained traction in the new markets of Vietnam and Myanmar. In Taiwan, the first retail promotions for U.S. frozen fries created a new channel for growth, as did the launch of a successful online promotion for processed potatoes in China. The current year’s program continues to build knowledge and partnerships among international retailers and to expand into online sales.

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INTERNATIONAL CONSUMER MARKETING

PUTTING POTATOES IN THE GLOBAL CONSUMER’S DAILY DIETBy delivering positive messages about U.S. potatoes, the Consumer Marketing program is inspiring consumers across the globe to eat more U.S. potatoes at home and in restaurants. The program promotes the health and lifestyle benefits of U.S. potatoes while spreading the word about their great taste and versatility.

In addition to consumer and media events, consumer communications include public relations, advertising and social media promotion. These activities engage and inspire consumers and media to see potatoes as a universal ingredient in local and global fare. Recipes continue to be a crucial vehicle in this achievement. Meanwhile, nutrition outreach improves consumer attitudes toward potatoes through seminars, special events, work with influential bloggers and the media. This dispels negative stereotypes while promoting U.S. potato benefits.

Last year, consumer marketing generated more than 500 positive articles about U.S. potatoes and over 100 endorsements of U.S. potatoes by nutrition influencers, while social media disseminated the program’s messaging to millions. The Consumer Marketing program continues to take advantage of the growing trend toward sharing recipes and food on social media. Nutrition work is increasing, and the program’s nutrition messaging has shifted to also feature the value of potatoes in athletic performance.

INTERNATIONAL SEED MARKETING

SOWING THE (POTATO) SEEDS OF CHANGEU.S. seed potatoes continue to take root in new areas around the world, thanks to the Potatoes USA Seed Export Program. This program identifies and introduces U.S. seed potatoes to new potential markets. It facilitates trade by obtaining and expanding market access, convincing foreign growers of the benefits of U.S. seed potatoes, and connecting those growers and importers with U.S. suppliers. U.S. seed variety field trials and production training, market visits, reverse trade missions to the United States and a biannual International Seed Symposium work together to establish U.S. seed potatoes as unique in their exceptional quality, multiple varieties and stringent certification process.

Last year, the program sparked the first commercial sales in Senegal and Guatemala, assisted in obtaining formal approval for seed potato imports into Myanmar, concluded successful variety trials in the promising target markets of Guatemala, Myanmar and Morocco, and conducted a mission to Cuba that prompted a market access proposal now under discussion. The current year’s program is focused on expanding and fully commercializing sales to target markets and ongoing market access efforts.

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INTERNATIONAL SUCCESS

THE U.S. EXPORTED $65 MILLION MORE POTATOES IN 2016–2017, TOPPING $1.7 BILLION.More than two years after the U.S. West Coast port slowdown triggered export losses for the potato industry, U.S. potato exports have not only recovered, but surged past previous records to hit $1,758,130,172 for the July 2016–June 2017 marketing year (MY). U.S. exports of potatoes and all potato products achieved a record volume of 1,712,364 metric tons (MT). At their fresh weight equivalent (FWE), this represents the movement of 71,837,331 hundredweight of potatoes out of the U.S. market, approximately 20% of U.S. potato production for the marketing year.

Growth was led by rising demand for frozen potato products, which were up 3.5%, as well as by a strong 9.4% surge in fresh potato exports. The only product to decrease was dehydrated potatoes, down 10%.

U.S. potato exports face many obstacles, such as increasing competition, currency exchange rates that frequently disadvantage U.S. product and ongoing market access barriers. Their continued growth demonstrates the value of a strategic marketing program to strengthen world demand. We are proud to share a sampling of the global successes that aided in increasing exports last year.

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INTERNATIONAL SUCCESSES

SOUTH KOREA: USING SOCIAL MEDIA TO INCREASE POTATO CONSUMPTIONLast year, consumers in South Korea did not have to wonder where their next serving of U.S. potatoes would come from. All they had to do was check Potatoes USA’s Facebook page and find a location. With U.S. potatoes popping up on menus everywhere in the country, Potatoes USA utilized social media to showcase all the great locations. Throughout the year, the Mr. U.S. Potato Facebook page introduced popular menus and restaurants that serve U.S. potatoes, offered simple home-cooking recipes and solicited interactive communications with potato fans. Social media was particularly valuable in supporting U.S. potato promotions. When 15 trendy pubs in Seoul launched gourmet U.S. fry menus to celebrate U.S. Potato Week and Oktoberfest Dishes, a map posted on Facebook led potato lovers right to their destination. The Potatoes USA Facebook campaign successfully reached 1.6 million people.

CENTRAL AMERICA: CREATING NEW DEMAND AT RETAIL Exports of U.S. fresh table-stock potatoes to Central American markets reached a record level of $12.4 million last year, aided by retail education and promotion activities to heighten product knowledge and interest. Cooperative retail promotions were conducted for 317 days, with 10 chains in El Salvador, Guatemala, Panama and the Dominican

Republic, resulting in an average sales increase of 93%. Promotions resulted in 12 new items and varieties being carried by retail chains. Also last year, due to one-on-one meetings with Potato USA representatives, the Dominican Republic gained two new U.S. fresh potato importers, opening the door to increased exports. Meanwhile, eight consumer cooking workshops introduced U.S. potato nutrition and versatility to participants, as well as thousands of others, through coverage in online media, radio and television.

MALAYSIA: BAKING UP SWEET SUCCESS WITH NEW APPLICATIONS Bakeries in Malaysia are always looking for new ideas and ingredients to improve their breads and buns, making the sector an ideal target for Potatoes USA’s strategy of creating new ingredient applications. By promoting research that showed adding U.S. dehydrated potatoes improved overall bun softness, volume and resilience, Potatoes USA convinced eight bakeries to conduct product tests. Last year, two major bakery chains were convinced to use U.S. dehydrated potatoes in their sweet bun formulations. Two of those, Berry’s Cake House and The Loaf, launched U.S. dehy sweet buns in February 2017. The sweet bun application is just the latest of the new applications created and promoted by the program in this market, where U.S. dehy is increasingly used in bread, bergedil and curry puffs as well, thanks to previous application studies. By capturing new usage, the program helped dehydrated potato exports to grow 30% by volume and 29% by value last year.

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JAPAN: TURNING THE SIMPLE FRY INTO A GLOBAL FEAST Thanks to years of usage in the fast food sector, U.S. frozen potatoes have a strong presence in Japan. However, to keep exports headed up, Potatoes USA continues to introduce versatile new presentations for the ever-popular fry. During MY 16/17, the foodservice program introduced a series of trendy global fry menus. The Plus One Fry campaign utilized test marketing to prove that adding new fry products may help increase sales, while the “Loaded Fry” campaign encouraged the food industry to expand their center-of-the-plate options by offering patrons smothered fry baskets, seasonal toppings and dipping sauces. As a result, two alternative channels launched U.S. fry menus. One of them, a beer hall, offered four loaded fry menu items at a spring beer festival, using 7 metric tons of fries during the 10-day event. In other channels, four supermarket chains offered U.S. fry party plates during the holiday season, selling more than 61 tons of U.S. fries during Christmas. Several restaurants, including one of the country’s largest chains with 1,370 outlets, launched loaded fry menu items due to the campaign. Japan remains the largest destination for U.S. frozen potatoes, with exports rising 9% to $299 million last year.

TAPPING A NEW FRONTIER FOR U.S. SEED EXPORTS The first shipment of U.S. commercial seed potatoes to the sub-Saharan nation of Senegal arrived in September 2016, thanks to the efforts of Potatoes USA. The shipment contained approximately 175 metric tons of U.S. seed, valued at approximately $150,000, and is the direct result of growing trials during the winter of 2015–2016, followed by a market visit and a reverse trade mission for three Senegalese seed buyers and growers during 2016. The activities were part of Potatoes USA’s ongoing work to identify and tap new target markets, which is a primary strategy of the seed potato export program.

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DOMESTIC

CULTIVATING AN APPETITE FOR U.S. POTATOES Potatoes USA’s domestic marketing program objective is quite simple: get more people, eating more potatoes in more ways. This proves that, no matter where consumers are, potatoes offer a world of delicious possibilities. Showcasing unexpected yet delicious potato dishes to consumers while they are navigating their social media feeds, shopping for groceries, satisfying a craving while on the go or enjoying their favorite restaurant is job #1. This is accomplished through engaging and integrated marketing programs with consumers and retailers, as well as professionals in nutrition, foodservice, school foodservice and food manufacturing.

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DOMESTIC CONSUMER MARKETING

POTATOES LIKE YOU’VE NEVER SEEN ’EM Celebrating the deliciousness and versatility of cooking with potatoes is at the heart of the 9th Wonder of the World advertising campaign. The campaign taps into the adventurous nature of Food Enthusiasts, showing there are no limits to the cuisines, flavors and preparation styles one can do with potatoes. Of course, even the most adventurous cooks face time pressures. By featuring convenient dishes and preparation hacks, the Potatoes USA consumer marketing program showcases how potatoes can be the perfect component of any culinary adventure.

Social media is a proven way to share the love for spuds. Whether it’s on Facebook, Instagram or Pinterest, consumers can find delicious potato dishes and engage with other potato lovers throughout the year. Inboxes are filled with delicious potato ideas every week. Plus a network of hand-selected food and lifestyle bloggers further extend the love for the spud. These online influencers have large followings and are helping showcase over 80 new recipes as well as their own takes on which potatoes to use for different dishes. They also offer their own tips and tricks for creating more convenient or unique dishes.

Food52, a leading online kitchen and home website that includes a large and loyal social media following of food enthusiasts is a new partner of Potatoes USA. As a part of the partnership, Food52 devoted an entire week to potatoes. During the week, the site and social media feeds were filled with inspiring, mouth-watering potato dishes suited for every meal occasion. Also included in the partnership are multiple articles featuring delicious and convenient potato recipes.

Every year, new and expanded consumer marketing programs are reaching consumers and the efforts are making an impact. Last year alone, consumers reported that potatoes were the single most likely item they were eating across all meals. Serving sizes are getting larger, and consumers are enjoying more types of potatoes than ever before.

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DOMESTIC NUTRITION MARKETING

POTATOES FUEL ATHLETIC PERFORMANCEPotatoes USA wants consumers to know that Potatoes = Performance. Partnering with registered dietitians, the press and having a strong online presence is now being expanded to the athletic community.

Potatoes were announced as the “Official Performance Vegetable” for IRONMAN 70.3 Boulder. Talk about being in the spotlight! Athletes and spectators alike were able to sample delicious potato recipes designed specifically to meet the demands of endurance athletes—tasty, convenient and packed with nutritious ingredients. After sampling the potato dishes, these elite athletes commented that they’d “never thought of cooking with potatoes like that” and “I could totally do this as a snack on my ride.”

Athletic performance experts are also providing their take on potatoes. Four influential experts in the athletic performance space have partnered with Potatoes USA to develop a series of new performance-focused potato recipes featured at events and conferences, in brochures, through the media and online. Check out some of their impressive resumes:

• Allen Tran, MS, RD, CSSD: Head chef and dietitian for the U.S. Ski and Snowboarding Association (USSA), including alpine, snowboard and Nordic ski teams.

• Carissa Bealert, RDN: Certified personal trainer, marathon runner, Run Disney race announcer and contributor to Runner’s World.

• Leslie Bonci, RD: Nutrition consultant for the Pittsburgh Pirates, Toronto Blue Jays and Kansas City Chiefs, consultant to Gatorade and author of several books on sports nutrition.

• Chef Glenn Lyman: Chef and owner of GCooks, a personal chef and meal planning service for professional athletes, including LeBron James and Ryan Lochte.

Potatoes are packed with nutritional benefits and getting the word out through events such as IRONMAN, the Walt Disney World Marathon Expo and a partnership with the American College of Sports Medicine (which has over 50,000 members made up of fitness professionals, personal trainers, clinicians, academics and scientists) is key to the nutrition program’s success.

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DOMESTIC RETAIL MARKETING

POTATOES ARE MAKING IT INTO CARTS AND ONTO PLATESThe opportunity at retail lies not only with consumers but with key retail decision makers as well. Potatoes are a key driver for the produce department and for the entire store. They are the #1 vegetable in weekly volume sales per store. In fact, Nielsen data suggests that consumers’ basket sizes are on average nearly 2x larger when fresh potatoes are in the basket and nearly 2.2x larger with frozen potatoes, the highest of all adjacent produce categories. Sharing the latest data, market insights, trends, research and merchandising tips, as well as providing nutrition, storage, handling and associate training helps ensure potatoes are available and promoted effectively to consumers to drive retail sales.

Campaigns such as More Ways to Win and Do You Have the Right Mix? seek to engage retailers with the potato category to learn more and value the importance of the category. More Ways to Win features key education to improve the grocery-buying process with consumers through five online training videos from growing practices to type education to nutrition to storage, handling and merchandising. Do You Have the Right Mix? helps retailers understand what products are selling in their region and how to optimize the fresh potato mix in their stores to meet consumer demands and bolster potato category sales.

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DOMESTIC INGREDIENT MARKETING

POTATOES, AN INGREDIENT THAT INSPIRESThe versatility of the humble spud is a dream for food manufacturers and fresh packaged food manufacturers alike. Not only is it America’s favorite vegetable, it also provides many of the nutritional benefits consumers want and the functionality food companies are seeking in their new product development.

Potatoes, featured at three leading events—The Food Evolution Summit, Prepared Foods New Products Conference and Progressive Grocer’s Grocerant Summit—provided attendees firsthand insights into how potatoes in all forms meet the demands of today’s consumers. Samples of entrées, snacks, side dishes and baked goods—ranging from potato flatbread to breakfast energy bars to potato hummus—demonstrated the versatility of the product and stimulated many new culinary innovation, product development and potato sourcing opportunities.

Direct marketing spurred innovation with Sprouts Market this past year and inspired the launch of two new signature potato dishes. Potatoes USA will continue to utilize direct marketing as a powerful marketing tool with food manufacturers through a quarterly newsletter filled with potato inspirations, trends and usage opportunity insights.

New product launches in the U.S. that included a potato product accounted for 9% of all new product launches this past year. Growth in this sector is expected to grow as consumers seek convenient on-the-go meals. Potatoes USA will continue to inspire this sector with new, versatile and functionally beneficial potato product solutions.

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DOMESTIC SCHOOL FOODSERVICE MARKETING

POTATOES ARE RAISING THE BAR AT SCHOOLSEach day, school foodservice operators prepare lunches for 30.4 million students and 14.6 million who eat breakfast at school. This heroic group is increasingly strapped for time, labor and inspiration. Potatoes USA is committed to helping meet the needs of K–12 schools by offering inspiring potato menu ideas.

Staying connected with school foodservice operators throughout the year helps keep potatoes top of mind when they are developing their menus and placing orders. Continuous posts on social media, monthly Potatoes Raise the Bar eNewsletters, regular ads in the School Nutrition Associations’ SmartBrief, sponsorships at annual school foodservice conferences, educational webinars and training videos build a strong rapport with these key decisions makers. The marketing kit effectively expands the program’s reach while promoting the versatility, functionality and love of potatoes.

Recipe creation, curation and distribution is key to the program’s impact. Potatoes USA partners with schools, a leading school chef and a school nutrition expert to ensure that new recipes meet the needs of kids’ discerning palates and the functionality required of school foodservice professionals. In fact, this year Potatoes USA is getting into schools to work directly with the foodservice operators to test new potato dishes. Districts prepare new potato recipes on premise for students to see how versatile they are to prepare and serve. Students then share their thoughts to see what they liked and what could be changed to make them even better.

One of the keys that has unlocked the door to school kitchens has been the donation of well over 270 salad bars from the potato industry to schools across the country. By partnering with the potato industry, Potatoes USA has greatly increased the reach into school foodservice and prominently positioned potatoes as a gateway vegetable for the next generation.

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DOMESTIC FOODSERVICE MARKETING

SPUD-TACULAR MENUS SHOWCASE THE VERSATILITY OF POTATOESInnovation and creative recipe development has taken the lead in restaurants across the nation. Knowing potatoes are America’s #1 side dish and on 97% of menus, the challenge is to continue to offer familiar food to customers, yet stay on trend in an ever-evolving restaurant scene. Championing the world’s finest spuds requires ongoing culinary innovation while also generating wide exposure and engagement.

Innovation is at the heart of the domestic foodservice program. Potato culinary innovation sessions not only challenges the status quo, it taps into the hottest trends such as plant-forward dishes, using flavors and preparation methods from around the globe and creating dishes that are versatile for every daypart. The dishes created through innovation sessions are continuously featured throughout Potatoes USA marketing programs, including presentations and demonstrations at foodservice shows, advertising, brochures, articles in leading foodservice publications, email campaigns and videos. Engaging the foodservice industry through innovation is key to ensuring consumers have the opportunity to enjoy potatoes on more menus in more ways.

Chef’s Roll, a networking and marketing avenue for chefs, has exploded onto the culinary and social media scene, providing an opportunity for foodservice professionals to showcase talent and culinary innovation, while also offering a social media platform to demonstrate cutting-edge techniques. Through a partnership with Chef’s Roll, Potatoes USA has featured award-winning chefs, such as Shirley Chung and Rich Landau, to ideate fantastic potato dishes that inspire other chefs and restaurateurs to increase and innovate their potato offerings on menus.

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