PQ--a magazine from the National Peanut Board

PQ Spring 2019 issue 39

a magazine from the

National Peanut Board

news/food/innovations/wellness/marketing

feature story

Turning Point: The Sweeping Peanut Butter Recall of 2009 10 Years Ago A salmonella outbreak shook the peanut industry.

What happened?

How did we recover?

Meet Your Customer NPB works to stay ahead of consumer trends.

New research shows it’s paying off.

NationalPeanutBoard.org

Call to Action Tell everyone you know about peanut allergy prevention. Here’s how.

The National Peanut Board represents all of America’s peanut farmers and their families. As farmers and stewards of the land, our mission is to grow, cultivate and promote the best-tasting peanuts in the world. We seek to be responsible in all that we do, from production research that results in a more healthful, sustainable crop, to sharing all the nutritional and culinary benefits of USA-grown peanuts.

A Message from Our 2019 Chairman

The Night My BlackBerry Blew Up

BY BOB PARKER President & CEO

National Peanut Board 2019 Officers and Members Dan Ward, Chairman Peter Froese Jr., Vice Chairman Andy Bell, Treasurer Les Crall, Secretary Alabama Tom Corcoran Thomas Adams, alternate Arkansas Gregory Gill Gregory Baltz, alternate Florida William Carte Jeremy Rolling, alternate Georgia Andy Bell Casey Cox, alternate Mississippi Joe Morgan Lonnie Fortner, alternate New Mexico Jim Chandler Karen Jackson, alternate North Carolina Dan Ward Raymond Garner Jr., alternate Oklahoma Les Crall Gayle White, alternate South Carolina Bud Bowers Vacancy, alternate Texas Peter Froese Jr. Jeff Roper, alternate Virginia Paul Rogers Westley Drake, alternate Member-at-Large Micah Barham Clay Deane, alternate

Bob Parker NPB President and CEO PQ Editorial Staff & Contributors Editor: Cathy Johnson

Dear Fellow Peanut Farmers, I am honored to serve as chairman of the National Peanut Board. A passion of mine is precision breeding using genetic markers instead of trial and error as in the past. I have spent years serving on The Peanut Foundation Board and the Peanut Genomics Initiative (PGI), which allowed me to see advancements made in understanding the peanut genome. This is an exciting time for the peanut industry.

Geneticists and breeders have identified markers for desirable traits, particularly disease resistance, and how to precisely breed for traits to reduce time, labor and cost. Leafspot resistance is on the near horizon. We already have markers for nematode resistance and high oleic that are in varieties being planted now.

In Phase I of PGI, the industry achieved incredible results with a $6 million investment from growers, shellers and manufacturers. As advancements in genetics were made, costs came down, surpassing our original goals. Not only did these findings set up foundational knowledge of the peanut genome, huge accomplishments were unexpectedly made in marker discovery.

The next challenge is to apply that knowledge in four key areas: disease resistance, drought tolerance, aflatoxin mitigation and flavor conservation/enhancement. You can learn more about Phase II on The Peanut Foundation’s website: PeanutFoundation.org.

613,000 tons to China because we were price competitive. The national average yield for 2014-2018 is 21 percent higher than the same period 10 years ago. With higher yields come lower costs of production per ton.

When grower costs are lowered, the industry wins. Growers sell more peanuts domestically and internationally. Shellers shell more tons to supply expanding markets, increasing efficiency and profitability, and manufacturers’ profit margins become wider.

The industry needs to continue to support precision peanut breeding not only to benefit from the outcomes, but also to retain highly sought-after scientists. At a recent symposium hosted by NPB, I was impressed

by Josh Clevenger, a scientist at Mars Wrigley Confectionery. Josh studied under research scientist Peggy Ozias-Akins at the University of Georgia and was instrumental in adopting new technologies to fast-track peanut breeding.

To maintain competitiveness, we need these people on our team working for peanuts. If we cannot support the tools they need, they may choose to work for other commodities.

Growers understand the importance of supporting precision breeding. We are confident in the next phase of the Peanut Genomics Initiative and hope that it can again be an industry-wide supported effort with results that benefit us all.

Sr. VP, Marketing & Communications: Ryan Lepicier Lauren H. Williams

Caroline Young

Sherry Coleman Collins

Lindsey Johannesen

Keegan Treadaway

Mark Dvorak

Sandra Flores, Art Direction Silvia F. Tavitas, Editor Cecilia Lozano, Lead Designer Anais Quintanilla, Illustration & Design

1

Our improvements in yield in the past 10 years have made us one of the low-cost producers in the world. Exports to China before 2013 were virtually zero, and since 2013 we have exported

Friday, January 9, 2009, was a normal day at the office and that night my wife and I were going to a friend’s house for dinner. Little did I imagine that day would be the start of one of the most monumental events in food safety history in the United States. The way farmers and food processors handle and process food products would change forever as a result.

News reports had been trickling in through the week about people being sickened by salmonella poisoning from an unknown source. That Friday, reports emerged that salmonella had been discovered in a tub of peanut butter in a nursing center in Minnesota. As a vice president with Golden Peanut at the time and a member of the American Peanut Council (APC) executive committee, I was concerned about the devastating effects tainted peanut butter could have on our consumers and our business.

That night, dinner was not the relaxing evening with friends I had hoped for, as my old BlackBerry device “blew up” with emails. Messages among APC staff and executive committee members shared concerns as we got more information supporting suspicions that peanut butter was linked to the sickening of more than 500 people and possibly eight deaths.

Over the coming days and weeks, the APC, the National Peanut Board and other industry groups would clarify that jarred peanut butter brands, our main market for peanut products, were not affected by the salmonella event. We relied on the knowledge that farmers are held in a high position of public trust and we positioned farmers as spokespeople to share the message to consumers that their favorite brands of peanut butter were safe. After a month of declines, peanut butter sales quickly recovered to normal. (See page 3 in this issue of PQ.)

What had gone wrong and how could future salmonella events be prevented? As it turned out, the head of a company in Virginia, Peanut Corporation of America (PCA) would be sentenced to 28 years in prison for knowingly shipping peanut butter tainted with salmonella to food companies all over the U.S. for use in human and pet food products. The final toll, according to the Center for Disease Control, was 714 people sickened and nine deaths in 46 states.1 During the Food and Drug Administration investigations, horrible sanitary conditions were found in PCA’s facilities, which were rife with roof leaks, roaches and rodents— perfect environments for breeding salmonella. These discoveries, coupled with the many illnesses and deaths, led to transcending changes in food safety laws and food industry practices.

The peanut salmonella incident was a major catalyst for the Food Safety Modernization Act of 2011 (FSMA). FSMA outlawed practices PCA used, such as retesting failing lots. It also imposed stringent food safety processes and inspection requirements on food handling and processing facilities. The food industry also implemented voluntary third-party food safety certification programs such as Hazard Analysis Critical Control Point (HACCP) and Safe Quality Food Institute (SQFI).

Even before 2009, I believe the U.S. had the safest food supplies in the world. But the events that unfolded showed we needed improvement. As a result, we have even more stringent food safety requirements and voluntary practices in place starting on the farm and continuing through the entire supply chain. Many people suffered in 2008 and 2009, but they did not suffer in vain.

Dan Ward Chairman

CONTACT INFORMATION 3350 Riverwood Parkway, Suite 1150 • Atlanta, Georgia 30339 • toll-free tel: 866.825.7946 • tel: 678.424.5750 • fax: 678.424.5751 email: peanuts@NationalPeanutBoard.org • web: NationalPeanutBoard.org

¹ https://www.cdc.gov/salmonella/2009/peanut-butter-2008-2009.html.

2

Turning Point: The Story of the Sweeping Peanut Butter Recall of 2009 and How It Changed an Industry Ten years ago, the Peanut Corporation of America (PCA) shuttered its operations after corporate crimes led to one of the most massive and lethal food-borne contamination cases in USA history. A nationwide outbreak of salmonella-contaminated peanut products, traced to the PCA facility in Blakely, Ga., killed at least nine people and sickened at least 714 people in 47 states,¹ ultimately bankrupting the company and leading to numerous criminal charges and convictions against top officials for knowingly shipping tainted peanut foods.

The outbreak caused the most extensive food recall in U.S. history at that time, forcing more than 360 companies to recall more than 3,900 different peanut products across 46 states. This caused great harm to the industry and to farmers already suffering from low prices due to the 2008 bumper crop and the deepening economic crisis at the time.

Losses to the U.S. peanut industry exceeded a billion dollars.²

The American Peanut Council (APC) stood on the front lines of the initial media and public opinion firestorm.

“I remember first learning about the crisis on a Friday night,” said Patrick Archer, president of APC, referring to Jan. 9, 2009. “As the salmonella news broke, the media, FDA and industry leaders began calling nonstop. We’d never faced a crisis of this magnitude.”

Shockwaves reverberated around the peanut industry. How did this happen? How could it happen? One whole decade has come and gone since the salmonella outbreak and it’s time to ask: What has changed in peanut production and food safety over the last 10 years? Are peanut industry professionals better prepared should another food-borne contamination case happen again? And could it happen again?

People infected with the outbreak strain of salmonella typhimurium, by state, as of April 20, 2009

1-4 Cases 5-19 Cases 20-102 Cases Source: Center for Disease Control. ¹ “Multistate Outbreak of Salmonella Typhimurium Infections Linked to Peanut Butter, 2008-2009 (FINAL UPDATE).” Centers for Disease Control and Prevention, i11 May 2009, www.cdc.gov/salmonella/2009/peanut-butter-2008-2009.html. ² “Peanut Corporation of America.” Wikipedia, Wikimedia Foundation, 5 Nov. 2018, en.wikipedia.org/wiki/Peanut_Corporation_of_America.

3

A Perfect Storm The year before the Peanut Corporation of America filed for bankruptcy, the manufacturer was in its heyday. Estimates say PCA manufactured about 2.5 percent of the processed peanuts in the U.S.³ The company, owned by Stewart Parnell operated in three peanut processing facilities in Blakely, Ga.; Suffolk, Va.; and Plainview, Texas. They sold peanuts, peanut butter, peanut meal and peanut paste to schools, prisons and nursing homes; as well as to discount retail outlets and to food manufacturers for use in cookies, snacks, ice cream and dog treats.

In September of 2008, the first victim fell ill, but it was not until January 2009 that the Center for Disease Control (CDC) pinpointed peanut butter as the likely food source.⁴ When the Minnesota Department of Health isolated salmonella in King Nut peanut butter produced by PCA, the U.S. Food and Drug Administration (FDA) launched an investigation into PCA’s Blakely, Ga. Several conditions within the nation’s food production and food safety culture contributed to a perfect storm for food contamination and product recall.

At the time, the nation’s food protection system relied heavily on “the honor system”—voluntary efforts by food makers to safely process food and recall tainted products when their own tests show problems. Government inspections were rare and sometimes not adequate.⁵ “Finger-pointing [was] common when problems occurred,” quoted the New York Times.⁶ Retailers tended to blame contracted manufacturers for failing to police food manufacturers. Federal authorities tended to rely on state inspectors, many of whom lacked specialization because they visited many types of food plants and may not have known what to look for in a peanut butter facility, for instance.

When an FDA team inspected the Blakely plant, they discovered that on 12 occasions in 2007 and 2008, tests by the company found salmonella in its products, but retested and shipped the contaminated products to customers anyway.

However, PCA did nothing to clean the plant or the equipment.⁷ The tricky thing about salmonella is the bacteria lives in pockets within foods, meaning a test could be run in a portion of a large container of peanut butter and be found “clean.” Another portion of the same container may contain salmonella and not be detected. It was discovered, during PCA’s later indictments and trial that the company retested the same container of product until it found no portions with salmonella.

“It’s Not Whether You Get Knocked Down, It’s Whether You Get Back Up.” Vince Lombardi, legendary football coach for the Green Bay Packers Recognizing the necessity that a concerted response would be required by the recall, the National Peanut Board (NPB), as the marketing and promotions program for USA-grown peanuts; the American Peanut Council (APC), the trade association representing all segments of the peanut industry; and all state peanut producer organizations in the Peanut Belt joined forces.

After learning of the outbreak that fateful Friday night, Patrick Archer, president of APC, said, “by Monday morning we’d secured a top PR firm, Ogilvy, who went right to work putting a crisis communication plan in place.”

Ogilvy knew the APC was in a race against time. A single objective was established: maintain the reputation and safety of the peanut industry over the long term. Immediately, the PR team focused on communicating the facts to their key audience, the public. ³ Ibid., page 3 ⁴ Goetz, Gretchen. “Peanut Corporation of America from Inception to Indictment: A Timeline.” Food Safety News, 22 Feb. 2013, www.foodsafetynews.com/2013/02/peanuticorporation-of-america. ⁵ Harris, Gardiner. “Peanut Product Recall Grows in Salmonella Scare.” The New York Times, 28 Jan. 2009, https://www.nytimes.com/2009/01/29/us/29peanut.html. ⁶ Ibid. ⁷ Ibid.

4

News of the outbreak flooded Canadian media, the United States’ largest peanut butter export market at the time. “This quickly became a North-America-wide crisis,” said Alison George, senior vice president of Argyle Public Relationships, APC’s agency of record in Canada. “This event instantly attracted media attention across the continent and we worked closely with the FDA and Canadian Food Inspection Agency (CFIA) developing a list of affected products.”

The “Resumption to Consumption” campaign in New York City featured live peanut plants from Oklahoma. Pictured (L-R) Kelly Chamberlin, USDAARS researcher and Mike Kubicek, executive director of Oklahoma Peanut Commission in 2009.

Media information was corrected daily and stressed which products were deemed safe to consume by FDA. Daily media monitoring was set in place with extensive daily media reports sent to APC’s industry membership. The APC and industry leaders spoke directly to consumers through press releases, a satellite media tour, and public statements carried by major media outlets.

Communication efforts amplified the overarching fact that the peanut industry was a large and safe industry, of which PCA was a rogue company. A safe products database was housed on the APC website to view the comprehensive list of peanut products deemed safe and which products had been recalled.

Peanuts Hit Hard The first months of 2009 did not look good for peanuts. Even though jarred peanut butter brands sold in grocery stores were not part of the recall—nor were 99 percent of peanut products—nonstop media reports and continuous product recalls created a public panic. People were throwing out peanut butter, grocery stores were discarding unaffected products and restaurants were pulling peanuts from their menus. Several major brands took the unusual step of placing advertising in national newspapers telling shoppers their products were not affected and, many brands offered coupons as incentives to buy again.

Because Peanut Corporation of America sold peanut butter to the federal government, some states were told to remove peanut products purchased from the government for school lunch programs. Fortunately, no illnesses were reported from students eating tainted peanut butter at school.

PCA manufactured a small percentage (2.5 percent) of the processed peanuts in the U.S. at the time of the outbreak.⁸ Yet, peanut butter sales dropped nationwide by nearly 25 percent in the four-week period ending January 2009, compared with the same time in 2008.⁹

Resumption of Consumption Campaign Peanut leaders utilized consumer research to understand behavior and attitudes about the recall. Most peanut butter consumers were moms who are concerned with providing their families safe, affordable and nutritious food. A highly-trusted source of information emerged from the research— peanut farmers and their families were the industry’s most credible and authentic spokespeople. And almost all consumers surveyed thought it was acceptable to promote and advertise peanuts.

5

⁸ “Peanut Corporation of America.” Wikipedia, Wikimedia Foundation, 5 Nov. 2018, en.wikipedia.org/wiki/Peanut_Corporation_of_America. Page 1. ⁹ “Nation’s Peanut Growers Reeling from Outbreak.” U.S. Business on NBCNews.com, Associated Press, 15 Feb. 2009, http://www.nbcnews.com/id/29212000/ns/busiiness-us_business/t/nations-peanut-growers-reeling-outbreak/#.XHmEKbh7lPY

National Peanut Board responded and reached out to hundreds of media outlets to share the farmers’ perspective of the crisis, which influenced tens of millions of consumers from coast to coast. The greatest impact came from a “Resumption to Consumption” New York City Event and National Grower Tour.

New York’s Grand Central Station Terminal was converted to a “live” peanut field, with 200 plants grown in an Oklahoma greenhouse. Farmers, peanut butter manufacturers, state and national leaders in the peanut industry participated, handing out free product samples that were unaffected by the recall and educating consumers on the nutritional benefits of peanut butter. A media/blogger chef demonstration and tasting event, a large peanut butter donation to a food bank, and peanut street teams engaged consumers over two days. Media stories amplified the event in and around New York, and a “Grower Tour” with additional stops in Atlanta, Washington, D.C., Minneapolis/St. Paul, Chicago, Nashville, Houston and Santa Monica all served to help convince America that eating peanut butter was safe.

Climbing Upward: Tangible Results According to IRI Information Resources, Inc., peanut butter volume sales increased every month since March as compared to the same period in 2008, turning around the critical decline in January and February of 2008.* Finally, a January 2010 article about the peanut industry’s “Resumption of Consumption” efforts in PRWeek said, “[The] efforts did more than just restore confidence, they moved the needle.”

Giant Leaps Forward in Food Safety “The greatest lesson learned is the importance of food safety,” said Archer. “This crisis spurred the industry to double down on food safety research and training. Ninety-nine percent of our industry was doing the right thing, but we learned that not only can our industry be greatly harmed by one bad actor, but also people’s lives can be greatly endangered because of one negligent company.”

The PCA recall contributed significantly to the creation of the Food Safety Modernization Act (FSMA), signed into law in 2011. The law focused on the prevention of outbreaks, not reaction to them, hopefully ensuring greater food safety in the U.S. FSMA outlawed practices the Virginia company used, such as retesting failing lots. It also imposed stringent food safety processes and inspection requirements on food handling and processing facilities.

After a prior peanut butter recall of ConAgra’s Peter Pan brand,¹⁰ the American Peanut Council established a comprehensive food safety training program for its membership by contracting with Steve Calhoun, who had an extensive career in food safety and quality control with Mars, Inc.’s North American products. Once the salmonella crisis and the PCA recall hit, the need for rapid expansion of food safety training programs for the peanut industry was quickly realized.

“Our approach after the PCA recall was to review and revise the Good Manufacturing Practices (GMP) already in place for peanuts,” said Calhoun. “We quickly developed extensive training programs in food safety, especially in how to take preventative measures. Also, we prioritized identifying research needs regarding hazards in peanut foods.”

Calhoun spearheaded several industry-wide training programs; developing new GMPs, collaborating with the University of Georgia to develop a Hazard Analysis and Critical Control Point (HAACP) program, presenting in large seminar settings and developing webinars with subject matter experts in food safety, sanitation and how to manage a recall, among other topics.

¹⁰ “Tainted peanut butter leads to $11.2 million penalty a decade later.” CNBC, Associated Press, 14, Dec. 2016. https://www.cnbc.com/2016/12/14/tainted-peanut-butteriileads-to-112-million-penalty-a-decade-later.html. * March, up 5.6 percent over 2008; April 13.5 percent; May, 24.7 percent; June, 5.1 percent; July, 7.9 percent; August, 18.6 percent; September 4.8 percent.

6

“We improved awareness of proper microbiological testing during the processing of peanuts to reduce the risk of salmonella,” said Calhoun. “We recognized the importance of proper finished product testing, because in the case of PCA, they were not reacting to results properly.”

Also, subject matter experts were brought in to teach nut microbiology, pathogen reduction and supply chain controls.

“All of these training programs have been effective and are an ongoing component of our industry to improve exposure to risks,” said Calhoun. “The industry has done quite a bit of work in this area, with the webinars on sanitation and managing a recall gaining the most interest.”

Finding Answers Through Research “The industry needed to discover gaps in research about salmonella and how to control it,” said Calhoun. “Surprisingly, when I searched, there was very little research that had been done on salmonella in peanuts.”

Two studies are significant in better understanding salmonella in peanuts and how to reduce the risk.

One study, “Prevalence and Concentration of Salmonella on Raw, Shelled Peanuts in the United States,”¹¹ was published in the Journal of Food Protection to understand the amount of salmonella in raw peanuts. “This study not only identified how much salmonella was contained in peanuts, but also determined the concentration of bacteria present,” said Calhoun.

Another study, “Effect of Oil and Dry Roasting of Peanuts at Various Temperatures and Times on Survival of Salmonella and Enterococcus Faecium,”¹² funded by APC and performed at Deibel Labs in Gainesville, Fla., evaluated roaster temperatures in raw peanuts.

“It was important to know the actual times and temperatures needed to kill salmonella,” said Calhoun.

Change Is Good FDA inspections have changed over time with the Food Safety Modernization Act (FSMA). “FDA officials have attended peanut industry training classes and have a better understanding of processing procedures specific to peanut butter. I’m aware they are more stringent in their inspections to mitigate any conditions that might lead to contamination,” said Calhoun.

Corporate cultures have gradually changed for the better over the last 10 years.

Most large manufacturers voluntarily brought themselves into compliance before FSMA. Medium-sized companies are more focused on quality and food safety today than in the past, according to Calhoun.

“The shelling companies have embraced the food safety issue to a large degree,” said Calhoun. “Most have gone above and beyond the FSMA requirements and have identified a senior-level person within the company specifically for food safety.”

Calhoun is concerned, though, about smaller processors and entrepreneurs who have started businesses after 2009. “We need to continue to seek out small peanut butter companies to ensure their preparation for a recall should it happen and to understand how to best control hazards in their facilities,” said Calhoun.

7

¹¹ Stephen Calhoun, Laurie Post, Benjamin Warren, Sterling Thompson, and Ann Rogers Bontempo (2018) “Prevalence and Concentration of Salmonella on Raw, Shelled iiPeanuts in the United States.” Journal of Food Protection: November 2018, Vol. 81, No. 11, pp. 1755-1760. iihttps://jfoodprotection.com/doi/abs/10.4315/0362-028X.JFP-18-114 ¹²Sanders, T.H., R.S. Calhoun. 2014. Effect of oil and dry roasting of peanuts at various temperatures and times on survival of Salmonella and Enterococcus faecium. Peanut iiScience. 41:65-71.

Roger Neitsch (left), chairman of the National Peanut Board in 2009, talks about the quality of peanuts in a simulated "live" peanut field at New York City's Grand Central Terminal event.

The Big Question Is the industry prepared if a major recall happens again?

From his perspective as a food safety expert, researcher and trainer, Calhoun senses the industry is better prepared.

“Our recall training is well attended, and these companies are focused on the prevention side of handling a recall well,” he said. “They are more able to hold and retrieve product more quickly, get information out to retailers and the public more quickly. They are better prepared to prevent people from consuming any product that might be contaminated. Best yet, they are better prepared to handle the product to get it out of the market.”

The foundational principles of the Good Manufacturing Practices are where the best risk reduction lies, conclude those peanut industry officials who work in food safety areas.

“Really, the GMPs of keeping the plant sanitized and the processing clean, keeping the water out; things like that are the most important factors,” said Calhoun. “We found most of the contamination outbreaks and recalls were due to postprocessing contamination.”

Calhoun said he will continue to ensure people understand how important sanitation is. “We get the most requests from companies for best practices in sanitation. Sanitation starts all phases—making sure the facility is clean, there are no avenues for pests to get inside. The biggest risk we’ve controlled by now is roof leaks—birds flying over can deposit things, so it is critical that rainwater not leak onto the peanuts.”

“And hand washing,” said Calhoun. “People may laugh, but you can never underestimate the value of hand washing.”

In 2009, the peanut industry realized its defining moment. But that year also showed how all segments of the industry progressed rapidly in response to the tragedy of the PCA salmonella outbreak. PCA will always be a reminder of how terribly things can go wrong; but by working together, adhering wholeheartedly to applicable laws and guidelines, and remaining teachable and vigilant, it is also a motivator to keep the future bright and safe for peanut consumption.

8

Meet Your Customer:

The National Peanut Board works to stay ahead of consumer trends and new research shows it’s paying off.

If you have been around the National Peanut Board for some time, you may have heard us say, “people love to meet and talk with peanut farmers.” With 98 percent¹ of our population today disconnected from the farm and rural life, it’s easy to see why urbanites and suburbanites—many of whom eat peanuts and peanut butter—think it’s fascinating to speak with a grower face-to-face.

Through Peanut Vision (PeanutVision.org) and growers talking about their love for the land, NPB helps ensure the peanut story breaks through.

“When we have the opportunity to tell the authentic story about peanuts, how they grow, what their health benefits are and how cultures around the world have loved them for years, peanuts win,” Lepicier added. s a “That’s a position any food would love to be in.”

Why Millennials?

So, we decided to turn the idea around. We’re asking you, our peanut farmer readers, to meet your customer—the wide variety of folks all over the United States who eat, love and make sure peanuts and peanut butter are a part of their everyday lives.

In fact, every three years NPB fields a brand tracking study to gauge consumer attitudes, perceptions and habits about peanuts and competitive foods. In 2015, as the board shifted its marketing focus to engage millennials, the study was redesigned to ensure the Board could track this generation and compare it with the general market.

Moving the needle with an important generation

Creating marketing moments that excite and engage

The good news: the latest brand tracking report shows the new focus appears to be working. Today’s millennials have a better impression and are more likely to recommend peanuts and peanut butter.² Moreover, they are more likely to order or purchase a grocery or menu item if it has peanuts on it.

So how do you reach these consumers and move them to purchase your products? You won’t be surprised that it’s mostly through online platforms such as Twitter and Instagram. That’s why NPB has significantly increased its presence on and use of those channels in the past few years. That’s a major shift from print advertising, which was so effective for the Board for many years.

“Peanuts, peanut products and our whole industry have so many things these consumers are seeking,” explained Ryan Lepicier, NPB’s senior vice president of marketing and communications. “Peanuts win on taste—which is always most important. But millennials care more and more about choosing foods that are easy to eat on the go, as well. And manufacturers are answering with new peanut snacks all the time. And they are influencing those around them.”

9

This harmony between peanuts and today’s consumer continues to propel per capita consumption, though the form they are choosing is shifting. Millennials are more likely to have tried peanut candy, peanut oil, and peanut powder compared to the general population. And 84 percent of millennials have purchased or eaten a peanut product in the past month, while 57 percent consume peanut butter on a weekly basis. ¹ www.nytimes.com/1988/07/20/us/farm-population... ² 2018 National Peanut Board Brand Tracking Study, fielded by The Bantam Group

Influencers are also key, but they have to be authentic.

Two years ago, former NFL player Charles “Peanut” Tillman encouraged millennials to “shell out” for peanut products by sharing the fun and irreverent things they would do for their favorite foods. And this past year, actor Justin Baldoni helped drive the early introduction of peanuts to help prevent peanut allergies, helping to nearly double the percentage of parents who said they intended to follow the new government guidelines.

For 40 percent of millennials, sustainability is paramount.

They will spend more money on foods they believe will help them achieve longer, more active lives and are good for the planet.

PEANUT BUTTER MAYO Time

Unusual food combinations have a way of fueling debate among consumers who may either love or hate them; but always feel passionate about them. A recent combination that has divided the nation’s peanut butter lovers is without a doubt the peanut butter and mayonnaise sandwich.

When news of the sandwich made it to the National Peanut Board, it was clear research needed to be done to understand why there are such drastically different opinions on the issue. To helps consumers dive deep into the conversation, NPB created a video series— interviewing a variety of experts, from food scientists to influencers to people who eat food every day—to get their opinions.

Understanding today’s peanut butter customer, with their changing trends and tastes, is one of the most important roles the National Peanut Board plays in the peanut industry. Armed with smart, timely information, NPB can help foster an open and receptive market for the peanuts you grow, smoothing the way for food brands, retailers, food service operations and others to sell more.

Why millennials? They are moving into their prime spending years—millennials are generally considered to be 23 to 38 years of age—and there are more of them than any generation before. For more, see the sidebar story.

It’s

•

Millennials consider themselves foodies; 30 percent say their life revolves around food experiences.

They have high expectations of the food they purchase—and the people or companies that produce it.

•

Millennials are multicultural. For comparison, 56 percent of this generation are (non-Hispanic) whites, compared to 84 percent of the “greatest generation” that lived through the Great Depression and World War II. That means millennials are adventurous when it comes to food and other life experiences, making them more eager to try global cuisines.

•

Millennials are digitally connected: Half spend three-plus hours a day on smartphones versus just a quarter of baby boomers. Millennials consume news and information dramatically differently than any generation before them.

•

The impact of millennials is so great they have changed the definition of “food authority.” Ninetytwo percent trust recommendations from individuals (even if they don’t know them) over brands; 74 percent turn to social networks for guidance on purchase decisions.

Sources: The Guardian, Hartman Group, Fortune, Food Institute, ACOSTA, Delish, Business Insider, Popsugar, BBC, CMI Online, Ypulse, Iconoculture, International Food Information Council (IFIC) Foundation, Pew Research Center, EY, B2X, Nielsen, The Spoon, Fona International

The three videos were shared via @PeanutsHere on Twitter and Instagram at the end of November, resulting in more than 1.5 million impressions and 390,000 views.

Consumers were quick to jump into the conversation online; more than 700 people commented to share their taste preferences, recipes for personal favorite ways to enjoy the combination, or memories of parents or grandparents serving them a peanut butter and mayo sandwich.

The question is, what’s your take on the combination?

To view all three videos, visit @PeanutsHere on Twitter and Instagram.

10

/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

The Retro Comfort Food Gets an Upgrade

By Lauren Highfill Williams

How the National Peanut Board Supports Innovative Peanut Butter Snacks Most of us have memories of dipping a spoon in a peanut butter jar for a quick snack or spreading peanut butter and jelly on bread for a child’s lunchtime meal.

It’s hard to believe those familiar habits would ever end, but data now suggests that consumers are actually using jarred peanut butter less often than they used to. Consumers report cutting back on bread consumption, which is the number one use of peanut butter, without adding in a different way to using peanut butter, like as an ingredient in main dishes or in smoothies.

With the sluggishness of peanut butter sales and consumers’ growing interest in snacking and functional foods, how can NPB help secure future success for peanuts in the market?

New product development is a key part of the answer.

Bringing peanuts into new categories keeps them relevant to consumers and positions them for future success in the marketplace. Elmhurst and Crazy Richard’s are two manufacturers with category-changing ideas that NPB recently helped support.

Elmhurst Milked of Elma, N.Y. was the first manufacturer to bring peanut milk to the retail market. In 2009, the alternative milk market was already showing strong growth when the National Peanut Board connected with food scientist Dr. Cheryl Mitchell. NPB supported Dr. Mitchell’s development of an innovative patented process to produce a peanut-based milk with minimal added ingredients. Elmhurst worked with Dr. Mitchell to launch Milked Peanuts and Milked Peanuts Chocolate in late 2017. Peanut milk promotions included a peanut-themed Airstream trailer sampling tour across the East Coast, trade media and social media advertising, all of which NPB helped support to extend the company’s reach.

additives, emulsifiers or preservatives. They’re available on Elmhurst’s website (www.elmhurst1925.com) and will be rolling out to retailers this spring. NPB continues to partner with the Elmhurst marketing team to extend promotions of the new peanut shakes.

Thinking about creative peanut butter snacks, last year NPB worked with natural peanut butter brand Crazy Richard’s to help bring peanut butter snacks to a new aisle of the grocery store—the freezer. Crazy Richard’s President and CEO Kimmi Wernli is on a mission to make healthy snacking simple and she often made peanut butter protein bites for her family of six. When Wernli wanted to explore developing this product for national distribution—while preserving the simple, wholesome and nutritious nature of the snacks—she reached out to NPB for help. NPB connected Wernli with an expert in food product development and supported the process of making the protein balls to her specifications. The result is a line of frozen peanut butter protein balls called Wholly Rollies, which Crazy Richard’s launched at the NPB exhibit at the Winter Fancy Food Show in January. Wholly Rollies are available in three varieties—PB & Cacao, PB & Strawberry and Cinnamon Oatmeal—all made with six ingredients or fewer.

But there’s good news. Consumers still have a love for peanut butter and the future looks bright. If we consider buying and eating habits of peanut butter in context with other market trends, such as snacking, functional benefits and innovation, peanuts and peanut butter have promising opportunities for increased consumption.

Snacking continues to be a powerful force for growth in the food industry. Dataessential estimates that the average American eats 4-5 snacks per day. The snack market is worth roughly $89 billion, according to IRI, and is growing at nearly 3 percent. Large food companies have made big moves in response to the snacking trend. For example, just in the past few years Campbell’s Soup bought Snyder’sLance, Kellogg’s purchased RXBAR and Mars invested in KIND Snacks.

No longer satisfied with empty-calorie snack options, consumers are demanding more from their packaged food purchases—and peanuts and peanut butter deliver. For peanut products introduced in 2018, functional claims that support energy, sleep and other lifestyle benefits rose 500 percent.

As multiple demographic segments like millennials and baby boomers look for foods that taste great, are convenient and provide a benefit to their lives, manufacturers and brands are responding with products to meet these needs.

Peanuts are delicious, have more protein than any other nut (7 grams per serving), contain good fats and provide many other vitamins and nutrients, so they’re the perfect fit for these consumers.

11

Elmhurst has extended its product line to a new collection of peanut-based protein shakes. Ready-to-drink sports protein beverages are a $785 million market in the U.S. and is expected to reach $1.1 billion by 2020, according to Euromonitor. The new Elmhurst products are available in chocolate peanut, chocolate banana, vanilla bean and café mocha. The 12-ounce shelf-stable shakes contain 20 grams of peanut protein and are a welcome addition to the protein beverage category. Made with six ingredients or fewer, they meet consumer demands for simpler products with no

While there will always be comfort in eating peanut butter directly from the spoon, the time has arrived to think outside the peanut butter jar and into the snack box, with innovative peanut butter foods that are the trifecta of delicious, convenient and nutritious.

12

Public Service Announcement: Tell Everyone You Know About Early Introduction In case you haven’t noticed, we’ve been working hard to spread the word about the guidelines from the National Institute of Allergy and Infectious Diseases (NIAID) on introducing peanut foods to infants to prevent peanut allergy.

We’re already seeing positive results, but if we’re going to turn the tide on peanut allergies for the next generation, we need your help.

Here’s our call to action: Tell everyone you know about early introduction. Let’s look at the potential impact we can make if everyone followed the new feeding recommendations.

Here’s a breakdown of each based on risk factor: If an infant has severe eczema, egg allergy or both: Talk to the child’s pediatrician before giving them any peanut foods. This child’s risk of developing a peanut allergy is high, so the healthcare provider may want to conduct an allergy test and/or introduce peanut foods under medical supervision. Once approved, infants in this category should start eating peanut foods early (around four to six months of age) and continue eating peanut foods often (two grams of peanut protein, three times per week).

Can you tell me how to get to Sesame Street? Perhaps not. But a peanut farmer in South Georgia can tell you how Sesame Street got to her farm. In an episode that aired Feb. 2, 2019 on HBO, the children’s television series visited peanut country to show kids where one of their favorite foods comes from.* In the process of filming, it became an educational experience unto itself that brought the industry together and showed that Sesame Street still has the power to bring joy and inspiration to people of all ages.

When the Georgia Peanut Commission received an inquiry looking for a peanut farmer to be filmed for a children’s show, Casey Cox of Camilla, Ga. immediately came to mind.

“I said I’d be glad to help,” said Cox. “They told me later it was for Sesame Street, and I could not believe it. I said, ‘I’ll do anything!’”

“Obviously, in February we had to get creative because there were no peanuts in the field,” said Cox. “I talked to colleagues at the USDA Peanut Lab and the University of Georgia (UGA) peanut team. I said, ‘they need a live peanut plant.’”

Cox said she had people from across the Southeast looking for a peanut plant. “The UGA team enlisted folks from the University of Florida. It became a tri-state effort.”

Eventually, they found one that Cox described as “a tiny little thing no bigger than a potted flower.” She was glad she was able to point the producers to B-roll footage of peanut farming and harvesting that was previously shot on her farm for a National Peanut Board video.

The film crew wanted to show peanut seed going into a hopper, and where peanuts are stored. Darlene Cowart of Birdsong Peanuts helped.

Of the four million infants born in the U.S. each year, it’s estimated that 2 to 2.5 percent are at risk of developing a peanut allergy. That’s approximately 90,000 new cases of peanut allergy that could occur every year.

If an infant has mild to moderate eczema: Begin feeding infant-appropriate peanut foods—such as thinned out peanut butter, or peanut powder stirred into infant cereal—three times per week starting around 6 months old. It’s not necessary for children in this category to have an in-office evaluation by their pediatrician before introducing peanut foods.

“Everybody thought it was a practical joke because we were asking to open up a peanut warehouse, so Sesame Street could come film,” said Cox. “I’m very thankful to the kind gentleman who opened up that warehouse at 8:00 p.m. on a Friday night for three hours for us to film. The whole experience was so entertaining and fun.”

The groundbreaking LEAP (Learning Early About Peanuts) study found that introducing peanut foods to high-risk infants between four and six months of age reduced their risk of developing peanut allergy by up to 86 percent. The guidelines provide feeding recommendations consistent with the LEAP study and could theoretically provide the same results for the general population.

If an infant has no eczema or food allergy: Feed peanutcontaining foods in addition to other solid foods as often as preferred and in accordance with family and cultural practice. This child is considered low-risk for developing peanut allergy and can begin consuming peanut foods as one of many complementary foods introduced in their first year of life.

The film crew also shot footage of peanut butter production at a facility in Alabama, and Cox provided the voiceover for the whole process, from planting and harvesting to making the peanut butter.

That means if everyone followed the guidelines we could potentially decrease the rate of peanut allergy in children from 90,000 to 13,000 new cases each year. That’s huge!

But we have to get the word out in order to see these results.

It’s important to remember whole peanuts and peanut butter straight out of the jar are choking hazards for infants. Peanut butter should be thinned with warm water, breast milk, or formula. Peanut powder is also a good option for stirring into infant cereals and baby food.

Before you start talking to others about the guidelines, first know that there are three separate recommendations based on a child’s risk for developing a peanut allergy.

We’ve included a tear-out of these recommendations for your convenience and to share with others in your community. You can refer people to our website—PreventPeanutAllergies.org— for more information and a link to the NIAID guidelines.

It’s time to take action to reduce the rate of peanut allergy in the next generation.

13

T is for Teamwork: How the Peanut Industry Came Together for Sesame Street

A Teachable Moment for Everyone

Casey Cox (NPB Ga. alternate), with a Cookie Monster puppet for the taping of a Sesame Street program on her farm in Camilla, Ga.

For Cox, the experience was a reminder of the bigger picture when it comes to food production. She hopes that children who watch the segment will make the connection between the food that they eat, and the agricultural communities that helped bring it to the table.

“People are so far removed from agriculture and from the farm,” said Cox. “Teaching children where their food comes One of TV’s most iconic programs that generations of children from, including the family farm and agricultural community have grown up watching wanted to produce a segment on behind every product, is important.” how peanut butter is made. But the filming needed to be done in February, so stakeholders from across the industry Asked what she’ll remember most about this experience, pulled out all of the stops to make magic happen when peanut Cox said: “This is probably the highlight of my agricultural farming wasn’t. career. I don’t know if you can top being on Sesame Street!”

Teamwork Makes the Dream Work

*Season 49, Episode 12: Elmo’s Happy Little Train

14

Making Early Introduction of Peanut Foods Mainstream

Working with WIC But outreach will go beyond healthcare professionals. The Women, Infants and Children (WIC) special supplemental nutrition program serves 53 percent of all infants born in the U.S.⁵ WIC providers are an influential audience that can help reach parents who might otherwise be at a disadvantage in learning about the guidelines.

By Keegan Treadaway Andy Warhol once said, “they always say time changes things, but you actually have to go out and change them yourself.”

Taking its cue from that philosophy, the National Peanut Board is wasting no time in advancing awareness and adoption of early peanut introduction for infants.

Experts suggest it takes on average 17 years for new knowledge generated by randomized controlled trials to be incorporated into practice. Based on that timeline it would be the year 2032 before the evidence from the ground-breaking LEAP study—which showed that introducing peanut foods to high-risk infants reduces their likelihood of developing a peanut allergy by 86 percent—becomes mainstream.

Where We’ve Been When the LEAP study was published in early 2015, prominent medical associations like the American Academy of Pediatrics and American Academy of Allergy, Asthma and Immunology fully endorsed the research, and immediately signed a consensus statement that recommended introducing peanut foods to infants.¹,² Two years later, the National Institute of Allergy and Infectious Diseases issued official guidelines on preventing peanut allergy through early introduction.³

Six months after the guidelines were published (and two years after the LEAP study came out), a survey of pediatricians found that a paltry 11 percent were correctly adhering to the new guidelines.⁴ What’s more, a survey of consumers from August 2017 that was commissioned by the National Peanut Board found that only 37 percent were aware of the new guidelines. These results suggest that parents and healthcare providers may still not know about early introduction.

Where We’re Going Recognizing the brevity of the situation, the National Peanut Board is working to reverse the upward trend of peanut allergy development by talking with healthcare providers at national conferences about the game-changing potential of the new guidelines. The goal is to provide resources that aide conversations between practitioners and patients and showcase new products that are designed to make early introduction easy and convenient for parents. This year the Board will exhibit and present at conferences for pediatric nurses and nurse practitioners, physician’s assistants, family practitioners, and of course, pediatricians.

In spite of the significance of the study’s findings, and the NIAID’s relatively breakneck pace in issuing new guidelines, implementation has been slow to take hold among pediatricians, healthcare professionals and the general public.

15

These materials were created with the intention of having both medical and public health professionals use them in their practice and share them with patients and clients.

LeeAnn Weintraub, MPH, RD, in private practice in Los Angeles said WIC providers need to know about evidencebased resources on infant feeding because it is a subject that they counsel program participants about every day.

“It is important for WIC providers to understand there are newer guidelines, which are very different from the older well-known approaches of delaying the introduction of peanut [foods],”

LeeAnn Weintraub, MPH, RD, private practitioner, Los Angeles “It’s also helpful for dietitians to be familiar with age appropriate ways to introduce peanut products to infants to be able to educate the participants with practical tips.”

Weintraub spoke to WIC providers at the California WIC Association conference last year about preventing peanut allergy. In her presentation, she shared resources and a video created by the National Peanut Board.

So far, the Board’s efforts have been effective at getting the resources in the hands of many healthcare and WIC providers. Weintraub received the materials in a health ambassador newsletter, and said she found the content to be concise, professional and unbiased. She thinks it’s important for the Board to continue its outreach to the WIC community, but cautioned that administrators of the federal program need to formally accept the guidelines for them to become a common and consistent recommendation for all participants.

“I think that there needs to be a top-down approach to make sure all WIC communications, trainings and relevant tools reflect the new guidelines,” said Weintraub.

The same may be true for prominent health groups. That’s why extending outreach beyond individual health influencers to the organizations that they belong to is something that is being pursued.

The Board already partnered with the American College of Allergy, Asthma and Immunology to launch the website, PreventPeanutAllergies.org. This year, the Board is in communications with the American Academy of Pediatrics and recently became members of the National WIC Association.

Building these relationships and continuing to engage with influencers will hopefully speed up widespread adoption of the guidelines. Time will tell when early introduction becomes common practice, but the National Peanut Board will be the change that makes it happen sooner.

¹ http://pediatrics.aappublications.org/content/136/3/600 ² https://www.aaaai.org/about-aaaai/newsroom/news-releases/interim-guide-peanut ³ https://www.niaid.nih.gov/diseases-conditions/guidelines-clinicians-and-patients-food-allergy ⁴ https://www.annallergy.org/article/S1081-1206(17)30726-3/pdf ⁵ https://www.fns.usda.gov/wic/about-wic-wic-glance

16

Peanuts Are The Most Common Allergen—And 5 Other Myths About Food Allergies

By Sherry Coleman Collins, MS, RDN, LD When most people hear “food allergy,” their thoughts automatically turn to peanuts. But peanuts are not the most common allergen today. Actually, prevalence of food allergy is age-dependent. Among school-age children, peanuts may be most common. However, according to a survey of 38,408 parents, in children under five, allergy to milk was more than twice as common as peanut.⁵ And among adults, shellfish is the most common food allergy.¹ Bottom line: Eight foods—milk, egg, peanut, tree nut, shellfish, fish, soy, and wheat—cause 90 percent of food allergy reactions, but any food can.

MYTH #1 Oral Immunotherapy (OIT) will cure peanut allergies.

OIT is one promising treatment for peanut allergies. Epicutaneous immunotherapy (Patch) and sublingual immunotherapy (SLIT) are being studied, along with vaccines, the role of the microbiome, and others. At this time, researchers do not believe immunotherapy will cure the allergy, but it will reduce the risk of anaphylaxis (a severe reaction) in case of accidental ingestion for many allergic individuals. In general, allergic individuals will still have to avoid eating peanuts and peanut foods (except their maintenance dose in OIT) and carry their emergency medications, but it could reduce the risk from cross-contact, inaccurate labeling and other risks associated with eating prepared foods and dining out.

Bottom line: Some day treatments could result in reversing peanut allergies. But for now, emerging therapies may serve to make those with peanut allergy safer, even if it won’t provide a cure.

MYTH #2

Introducing peanut foods to infants early will completely eliminate peanut allergies.

MYTH #3

Food allergies are a childhood condition and don’t affect adults.

Early introduction of peanut foods is one way to reduce the risk of developing peanut allergies, especially for high-risk infants, and it’s very effective. In fact, early introduction reduced peanut alleriges by 86 percent in the LEAP study. However, according to the LEAP Study, early introduction didn’t prevent peanut allergy in every instance.

Bottom line: We still have things to learn about preventing peanut allergies, but early introduction is a way to help reduce risk.

While food allergies are more common in and often associated with childhood, they also affect adults. Some adults with food allergies were diagnosed with food allergies as children and never outgrew them, while others were diagnosed in adulthood. A recent survey of 40,443 people indicated that as many as 10.8 percent of adults in the U.S. have a food allergy.¹ The major limitations of this study include that the data was obtained via self-reporting, and physican diagnosis was not required to be considered food allergic.

The study found that about 50 percent of those who reported having a food allergy, didn’t have symptoms convincing for that diagnosis.

Bottom line: Food allergies can occur at any age, however self-diagnosis is often inaccurate.

MYTH #4

Introducing peanuts to infants can be dangerous because reactions are more severe in younger children.

MYTH #5

Banning peanuts in schools effectively reduces the risk of anaphylactic reactions among food-allergic students.

17

Actually, recent research presented at the 2018 American Academy of Allergy, Asthma & Immunology (AAAAI) meeting and published in the Journal of Allergy & Clinical Immunology, found that severe reactions are less likely in infants than in older children.³ While anaphylaxis can occur in infants, the most common reactions among infants are gastrointestinal symptoms, such as vomiting and hives. More information on signs and symptoms of food allergy reactions in infants can be found at the NIAID website.

Bottom line: Food allergy reactions among infants are most often gastrointestinal or skin (eg. hives).

Although some advocate for food bans, there is no research to support this approach as a means to reduce risk and some evidence shows it may increase risk.⁴ Creating allergenaware or safe zones, training school and foodservice staff, and avoiding use of food in classrooms and for special events may help reduce risk.

Bottom line: Rather than bans, experts recommend a comprehensive approach to managing food allergies in schools that focuses on caution, preparation, and education.

¹ Gupta R, Warren C, Smith B, et al. Prevalence and serverity of food allergies among U.S. adults. JAMA Netw Open. 2019;2(1):e185630. ² Anagnostou K, Turner P. Myths, facts and controversies in the diagnosis and management of anaphylaxis. Arch Dis Child. 2019;104:83-90. ³ Samady W, Trainor J, Houdek D, et al. Abstract: Anaphylaxis in Infants. J Allergy Clin Immunol. 2018;141(2):AB157. ⁴ Wang J, Bingemann T, Russell A, Young M, Sicherer S. The Allergist’s role in anaphylaxis and food allergy management in the school and childcare setting. J Allergy Clin Immunol. 2018;6(2):427-435. ⁵ Gupta R, Warren C, Smith B, et al. The publilc health impact of parent-reported childhood food allergies in the U.S. Pediatrics. 2018;142(6)

18

This year, the Food Allergy Advisory Council welcomed two new members.

Food Allergy Education Advisory Council Guides NPB’s Food Allergy Research Programs

Whether it is relying on university researchers’ studies on water use or seeking advice from an accountant to keep your farm in business, experts help peanut producers work more effectively and efficiently. It’s no different in the food allergy world.

In 2014, the National Peanut Board (NPB) gathered leading food allergy experts from around the world as part of a new Food Allergy Education Advisory Council, with the goal of making peanut allergies history. The Council, comprised of health care professionals, allergy advocates and leaders in foodservice, schools and the law, focuses on helping NPB lead the way on education, and engage consumers and influencers on proper food allergy diagnosis and management.

“The Council brings news, experience, research and topical concerns from many directions,” said JJ Levenstein, M.D., FAAP, chair of the Council and a retired pediatrician. “As a result, the National Peanut Board is able to gain valuable insights, communicate more effectively in different channels, and devote time, energy and dollars to initiatives that promote peanuts, allergy education and outreach.”

• •

Mary Jane Marchisotto, Senior Vice President of Research and International Operations at Food Allergy Research & Education (FARE) Victoria Ladd, MSN, RN, State School Nurse Consultant, Division of Children's Health, S.C. Dept. of Health & Environmental Control, and member of the National Association of State School Nurse Consultants (NASSNC)

Returning allergy council members include: • JJ Levenstein, M.D., FAAP (Chair), Pediatrician; President and Co-Founder MD Moms • Sherry Coleman Collins, MS, RDN, LD, Registered Dietitian Nutritionist/Consultant, National Peanut Board • David Fleischer, M.D., Associate Professor of Pediatrics Director, Food Challenge Unit, Children’s Hospital Colorado • Eleanor Garrow-Holding, Chief Executive Officer, Food Allergy & Anaphylaxis Connection Team • Matthew Greenhawt, M.D., M.B.A., M.Sc., Assistant Professor of Pediatrics, Allergy Section, Children’s Hospital Colorado • Wesley Eby Johnson, JD, Escamilla & Poneck, LLP • Gideon Lack, MBBCH (Oxon), MA (Oxon), FRCPCH, Professor of Pediatric Allergy, King’s College • Soheila Maleki, Ph.D., Research Chemist, United States Department of Agriculture • William Weichelt, Director, ServSafe, National Restaurant Association For full biographies and more information about the Food Allergy Education Advisory Council, visit PeanutAllergyFacts.org/about-us.

America’s peanut farmers are able to get an inside view into a world that many others do not see: what’s new and innovative in food allergy research and education. The Council helps NPB focus food allergy resource dollars where most appropriate, provides a sounding board for ideas and approaches, and helps build relationships in the food allergy arena.

“As a pediatrician and clinician, I enjoy chairing this group as I am invested in and devoted to providing evidence-based information to healthcare providers, and learn so much from my fellow Council colleagues,” said Dr. Levenstein.

“We’re all here to make the world a safer place when it comes to food allergies, but we are also energized and excited participating in primary preventive strategies that will positively affect our fellow humans moving forward.”

19

Pictured (L-R) are Lindsey Johannesen, Golin; Jennifer Gerdts, Executive Director of Food Allergy Canada; Eleanor Garrow-Holding, President & CEO, The Food Allergy & Anaphylaxis Connection Team, FAACT; Bob Parker, NPB President & CEO; Ranjit Dhanjal, Vice President, Marketing, Communications & Engagement at Food Allergy Canada; Ryan Lepicier (in back row), NPB's SVP of Marketing & Communications; Victoria Ladd, MS, RN, National Association of State School Nurse Consultants; Jessica Gerdes, MS, RN, NCSN, National Association of State School Nurses Consultants; William Weichelt (back row, not visible), Director of the National Restaurant Association's ServSafe; Sherry Coleman Collins, MS, RDN, LD, dietetic consultant; J.J. Levenstein, MD, FAAP, Chair of the FAEAC; Soheila Maleki, PhD, researcher, USDA ARS; and Mark Dvorak, Golin.

20

Co-Promotions Build Peanut Love State by State PEANUTS BRING FLAVOR TO FALL, Y’ALL

2

Whether Americans are on the road, at a sports or volunteer event, the state fair or browsing social media or their favorite food magazine, we want everyone thinking about, talking about and eating more USA-grown peanuts.

Since 2004, the National Peanut Board and state peanut producer organizations have combined co-promotion dollars to creatively promote America’s favorite nut in their respective states. This year, eight state peanut producer organizations were present at a variety of venues—football games, state fairs, heart walks, marathons, festivals and business expos; as well as on websites, social media venues and magazines. Below are ways hundreds of thousands of people were inspired to love peanuts.

aboutpeanuts.com

1

New Mexico Peanut Growers Association sponsored the annual Peanut Festival in Portales. A newlydesigned booth featured the early introduction of peanut products to infants to reduce the risk of peanut allergies. A video screen at the booth highlighted tips and facts about early introduction while Buddy McNutty helped engage young parents and children with the messaging. An estimated 6,000 people attended the event.

2

The Virginia-Carolinas region placed a full-page ad in Garden and Gun magazine’s October/November issue. The ad featured a recipe for Garlic-Rubbed Skirt Steak with Vidalia Onions and Peanut Romesco Sauce from celebrity chef Virginia Willis. Garden and Gun’s audience of more than one million subscribers is 60 percent male and 40 percent female.

3

The Mississippi Peanut Growers Association reached a new audience by partnering with the American Heart Association, Greater Southeast Affiliate at the 2018 Gulf Coast Heart Walk. MPGA set up a tent to distribute educational materials and peanuts to the 7,500 participants. Media was reached via press releases, social media, and public relations activities. Two CPR in Schools Kits were provided to two high schools to train students to correctly administer CPR. Logos and the AHA Heart Check were included in all giveaways.

4

Arkansas Peanut Growers Association sponsored a booth at the Northeast Arkansas Chamber of Commerce Annual Ag Appreciation Expo. Area civic leaders, business professionals, farmers, FFA and 4-H students were engaged about the latest research in reducing the risk of peanut allergies. Also, locallygrown peanuts and peanut swag were given away. More than 400 attendees came to the booth and were educated about the recent growth in peanut production in Arkansas.

5

Texas Peanut Producers Board advertised with Texas Monthly magazine, both print and online. The magazine alone has a readership of 2.4 million.

6

Georgia Peanut Commission hosted a food bloggers tour during peanut harvest visiting the University of Georgia Food Science Department in Griffin, peanut farms, a buying point, shelling plant and a research center. Food bloggers included influencers from Homemade Delish, The Everyday Mom Life and The Dish.

Participants also learned about peanut allergy research, early introduction of peanuts and sustainability.

Bloggers posted about their experiences to their large followings on social media.

7

Alabama Peanut Producers Association placed a full-page advertisement, “Peanuts—The Ultimate Tailgate Snack” in the 2018 University of Alabama football program. The ad reached football fans of all ages with a reach of 100,000 per game.

8

The Oklahoma Peanut Commission hosted a booth at the Oklahoma State Fair along with the “Cooking with Peanuts Contest.” The Fair staff solicit entries and OPC commissioners provide a narrative, quizzes, trivia and awards to the audience while entries (peanut cakes, pies, candies and others) are judged. OPC provides modest cash awards and peanut-themed gifts to winners. Approximately 1,000 visitors stopped by the OPC Fair booth.

3 1

GARLIC-RUBBED SKIRT STEAK AND VIDALIA ONIONS WITH PEANUT ROMESCO SAUCE Ingredients

2 lbs. skirt, hanger, or flank steak 6 garlic cloves, mashed to a paste with salt 2 Tbsp. pure olive oil 2 or 3 large sweet onions, preferably Vidalia, sliced Romesco sauce: ½ c. roasted peanuts 1 (12-oz.) jar roasted red bell peppers ½ c. tomato puree 2 garlic cloves, plus more for garnish 1 slice country white bread, toasted and crumbled 1 Tbsp. smoked paprika ⅓ c. sherry vinegar ⅔ c. extra-virgin olive oil, plus more for garnish Coarse kosher salt and freshly ground black pepper

Directions

1. Pat steak dry, put in large bowl.

Coat meat with garlic paste and olive oil. Add onions, cover and refrigerate 30 minutes or up to overnight.

2. Romesco sauce: In food processor, grind peanuts, then add roasted peppers, tomato puree, garlic, bread, and paprika.

Process to a paste. Add vinegar, pulse to blend. With motor running, slowly pour oil in feed tube until it thickens like mayonnaise. Salt and pepper to taste.

3. For charcoal grill, 6 pounds of charcoal burned for 20-30 minutes and spread evenly.

For gas grill, with burners on high and lid closed, heat to 500 F. If using a grill pan, heat the pan over medium-high heat.

4. Scrape excess garlic from beef and discard. Grill meat and onions over direct until char lines appear. Cook to taste, 3 to 5 minutes per side.

Let rest 5 minutes. Serve steak and onions with peanut romesco sauce on the side.

The Mississippi Peanut Growers Association at the Gulf Coast Heart Walk

Excerpted from SECRETS OF THE SOUTHERN TABLE © 2018 by Virginia Willis. Photography © 2018 by Angie Mosier. Reproduced by permission of Houghton Mifflin Harcourt. All rights reserved.

(L-R) Jim Chandler (N.M. member) and Wayne Baker (former N.M. member) at the Portales Peanut Festival

4

5

Mary Nell Baltz, spouse of Greg Baltz (Ark. alternate) at the Northeast Arkansas Chamber of Commerce Ag Appreciation Expo

6

8

7 Georgia Peanut Commission and media bloggers and chefs tour the food science facility at the University of Georgia Griffin Campus.

(L-R) Les Crall (Okla. Member) and Linda Gronewaller, first-place winner of the Cooking with Peanuts Contest, at the Oklahoma State Fair

21

22

Export Update

Mexico Trade Mission Builds Export Potential for Peanuts

Grower Voices

New Peanut Leadership Academy Graduates Reflect on Their Experience (L-R) Grupo PM’s Félix Valladares and Javier Colin; NPB’s Dan Ward; Olam’s Ravi Prabhakar; Grupo PM’s Mónica Moreno; APC’s Stephanie Grunenfelder; NPB’s Lauren Highfill Williams; Grupo PM’s Gabriela Flores, Lourdes García, Beatriz Moreno; and APC’s Peter Vlazakis.

By Stephanie Grunenfelder, American Peanut . Council Conducting a full-scale marketing program in a foreign country is no easy task. It is critical to engage local experts who understand the culture and can stay active on the ground, building relationships and taking every opportunity to expand sales.

To ensure the success of U.S. peanut exports in Mexico, the American Peanut Council (APC) has partnered with Grupo PM, a marketing and public relations company, for almost 20 years. Grupo PM has been integral to the expansion of U.S. peanut exports to Mexico, a market that has grown from sales of $34 million in 2007 to sales of $152 million in 2017 (for all peanut products).

Grupo PM communicates with the peanut industry inside the country and provides intelligence to APC on food and other important cultural trends that impact U.S. peanut exports. The firm also organizes Mexican attendance in the industry’s annual reverse trade mission, held in peanut-growing regions of the United States. Each year, Grupo PM representatives work with APC to prepare specific marketing plans to drive objectives in Mexico.

In January, National Peanut Board Chair and North Carolina Member Dan Ward, NPB Marketing and Communications Manager Lauren Highfill Williams, and Olam’s Ravi Prabhakar, joined APC for a marketing planning session in Cuernavaca, located about 50 miles south of Mexico City.

“This trade mission opened my eyes to the export potential for Mexico,” said Ward. “I was impressed with the planning and energy the marketing teams in Mexico put into building consumer awareness of peanuts and peanut butter.”

First on the agenda was an informative review of successful tactics from the previous year’s work. Results from the Mexico public relations efforts in 2018 indicate that for one dollar invested, the industry received $72 in benefits. The marketing firm’s main messages, revolving around the health and nutrition benefits of peanuts and their versatility in cooking and snacking, will continue in 2019.

The APC team visited a peanut butter company and other peanut businesses in Mexico City and Guadalajara to learn more about the overall market. Mexican consumers eat peanuts mostly as snacks—street vendors often offer them to passersby. The most popular peanut snack is a coated “Japanese-style” peanut, which is wrapped in a flour coating and flavored with soy and garlic. Mexican consumers also like peanuts flavored with spices and lime—and of course, just roasted and salted.

Peanut butter consumption, while growing, is still a very small segment of the market. “Whereas 95 percent of Americans have peanut butter on their pantry shelves, only 10 percent of families in Mexico have it in their homes,” said Ward. “The marketing teams are focusing on young mothers and children as their main market, utilizing a strong opportunity to build a new generation who prefer peanut butter.”

23

Peanut farmers Jan Jones of Georgia and Antron Williams of South Carolina are the most recent graduates of the Peanut Leadership Academy (PLA). NPB proudly sponsored their two seats and after completing the 18-month program, we asked them about what they learned and what they have planned for the future.

NPB: What are the top learnings you took from your time in PLA? JJ: Talking to political leaders about issues that directly impact your farming operation is vital to helping the ag industry grow. No one knows how crucial access to water is, how devastating a hurricane, wildfire or other natural disaster was, or how decisions made in Washington directly impact farming operations across the nation better than farmers.

AW: I learned a great deal more about the overall industry. I learned about the about the different functions of the National Peanut Board. I also learned more about the differences that exist among the different peanut growing regions.

NPB: What were you most surprised to learn?

JJ: One of the most surprising things I learned was just how intricately the peanut industry is tied together. From the farmer that grows and harvests the plant, to the buyers and shellers who clean, grade and market the product, to the facility that turns that raw product into the peanut butter that ends up in consumers’ pantries, we’re all working toward making the most sustainable, nutritious and best quality peanuts possible.

AW: The most surprising thing to me was the ability of the Texas growers to grow organic peanuts due to their dryer climate that lowers the threat from diseases.

NPB: What did you enjoy most about your experience in PLA? JJ: I really enjoyed how diverse the sessions were in both subject matter and location. Not only does PLA designate each session to a specific aspect of the peanut industry,

Jan Jones

Antron Williams

but it also takes the class to different peanut growing regions. That way, we were able to learn about the industry in detail and see what growing conditions look like in the Southeast, West and other regions.

AW: I enjoyed a few things. I enjoyed the fellowship with other farmers, the exposure to the internal workings of the industry, and getting to experience places that I may not have had the opportunity to experience otherwise.

NPB: How has the experience better prepared you for future leadership in the peanut industry?

JJ: Since PLA keeps its class sizes relatively small, it creates a space where all members have to learn to improve our public speaking skills: be it in addressing the class itself, introducing guest speakers, leading prayer or discussing agricultural issues with our congressional leaders.

AW: The experience has definitely made me more cognizant of the industry and so yes, I believe that it has better prepared me for leadership in the peanut industry should the opportunity arise.

NPB: What would you say to another young farmer who’s considering PLA? JJ: Definitely do it! On paper, it may seem like too much time away from your farm, and the program is certainly a commitment. However, PLA coordinators do their best to schedule sessions conveniently, and the opportunity to learn the peanut industry and hone your leadership skills is worth it.

AW: I would advise them that it's a great opportunity and they would not regret the time they'd have to commit.

24

Meet Our New Board Members Micah Barham

At-Large Member

Micah Barham of Oak Ridge, La. is president of Barham and Barham Farms where he grows peanuts, corn and cotton. Barham is in his eighth year of farming as a career after growing up in a farming family. He and his wife, Alex reside in Monroe. Barham graduated from Louisiana State University with a Bachelor of Science degree in Agricultural Business. In his spare time, Barham enjoys hunting, dining out and playing tennis.

“It’s a great opportunity and I’ve already learned a lot. I expect this to continue,” said Barham.

Financials

NATIONAL PEANUT BOARD BUDGET Fiscal Year 19 (November 1, 2018—October 31, 2019)

FISCAL YEAR 2019 BUDGET

ACCOUNT DESCRIPTION REVENUES Crop Projection

$ 9,000,000

Prior Years’ Crop Overages

$ 2,364,549

FY 16 Expense Savings

$ 690,000

FY 17 Expense Savings

$ 425,000

FY 18 Expense Savings—Domestic/Golin

$ 775,000

Interest Income

$ 210,000

Late Fee Collection—Prior Year

$ 5,912

TOTAL REVENUE

Clay Deane

At-Large Alternate Clay Deane of Sikeston, Mo. is the co-owner and operator of North Delta Planting Co., which he runs in partnership with his cousins as a division of the family farm operation, Triple D Farms. He is a fifth-generation farmer who began working on the farm after graduating with a Bachelor of Science in Agronomy from Mississippi State University in 2012. Deane grows peanuts, corn, wheat, soybeans, rice and cotton. Deane and his wife, Sara Beth enjoy traveling together, and in his off time he enjoys hunting with family.

“I would like to be a voice for our state to be able to grow the industry and see the peanut industry come to Missouri,” said Deane. “I look forward to connecting with growers who have grown peanuts their whole lives who share what they know with new growers in places like Missouri, where there's an up-and-coming industry.”

Casey Cox

Georgia Alternate Casey Cox of Camilla, Ga. is the sixth generation of her family to farm. She farms at Longleaf Ridge Farms on the Flint River with her parents Glenn and Tina. They grow peanuts, sweet corn, field corn, soybeans and timber. Cox graduated from the University of Florida with a Bachelor of Science in Forest Resources and Conservation and is passionate about stewardship, conservation and sustainability with an emphasis on water. She is a recent graduate of the Peanut Leadership Academy. Formerly the director of Flint River Soil and Water Conservation District, Cox has a renewed focus on the farm.

“It is an absolute honor to be appointed as the alternate member for Georgia on the National Peanut Board,” said Cox, “I am grateful for the opportunity to learn from other farmers across the country who serve on the Board and to represent Georgia's peanut farmers.”

25

$ 13,470,461

PROMOTION / MARKET DEVELOPMENT / RESEARCH Domestic—Promotion / Market Development Programs

$ 7,247,000

Export—Promotion / Market Development

$ 515,000

Grower & Intra-industry Communications

$ 594,000

Opportunity Budget

$ 100,000

Production Research Projects

$ 2,041,406

Germplasm Research Funding

$ 7,000

Griffin—Replacement Wild Species

$ 15,000

NIFA Research

$ 250,000

Sustainability Support

$ 25,000

TOTAL PROMOTION / MARKET DEVELOPMENT / RESEARCH

$ 10,794,406

OTHER EXPENSES Administrative

$ 869,500

AMS Oversight

$ 220,000

Five-Year Program Evaluation

$ 40,000

TOTAL OTHER EXPENSES TOTAL EXPENSES FOR PROGRAM YEAR

$ 11,923,906

ADDITION TO UNRESTRICTED RESERVE

$ 1,546,555

TOTAL EXPENSES PLUS ADDITIONS TO RESERVE * Contingency Reserve = $1,400,000 Unrestricted Reserve = $3,187,778

$ 1,129,500

$ 13,470,461

26

PRESORTED STANDARD US POSTAGE PAID PERMIT #3832 ATLANTA, GA

National Peanut Board 3350 Riverwood Parkway, Suite 1150 Atlanta, GA 30339

Snacking with Shells On

There is one snacking preference that people are not too sure of: eating peanuts with the shells still on.

NPB’s consumer-facing social media account, @PeanutsHere, shared a “Peanut Service Announcement” that encouraged peanut lovers to continue snacking however they like. Social media users went nuts over the idea of shells-on snacking, there were more than 293K comments, likes and retweets. The National Peanut Board is here to remind everyone that there is no wrong way to enjoy peanuts.

@Peanutshere

@Nationalpeanutboard