WATERMELON US CONSUMER STUDY (IMPORT) Prepared by: Rose Research LLC October, 2013 Page § 1 YOUR LOGO Background & Purpose The primary objective of this study is to measure changes that have taken place (during the import season) in the watermelon category in the United States over the past year (which is when the last wave of interviewing was fielded). Accordingly, this research project will update consumer demand data for watermelon, reasons for purchasing each type, as well as its future growth potential and marketplace opportunities. Areas of investigation include – awareness of watermelon health benefits, watermelon cut preferred and reasons why, the extent to which watermelon is considered a good value for the money, food safety concerns, as well as a number of other watermelon topics (i.e. interest in connecting with the NWPB through social media, affect of the economy on shopping habits, watermelon bin investigation, value for the money, etc.). Methodology A quantitative project was conducted online among a total of 1,001 consumers in March/April, 2013. Qualified respondents were men and women, 18 years of age or older, who are the primary grocery shoppers of their household. In addition, where applicable, findings from the 2013 study are compared to the previously conducted 2012 research. Page § 2 YOUR LOGO OVERVIEW Page § 3 YOUR LOGO Overview Positively, watermelons’ perception of being a healthy food to eat continues to climb, as more than half of the consumers are reportedly aware of its health benefits (56%, up from 47% last year and 40% in 2011) – reaching an all-time high. Moreover, watermelon purchasers, California residents, high income earners (at least $75K a year) and those who are better educated (at least a college graduate) are even more likely to be aware of watermelon’s health attributes. In addition, 44% of the respondents (who are aware that red watermelon contains lycopene) recognized that watermelon contains more lycopene than any other fresh produce item (on par with last year – 44% and higher than any year prior to 2012) - - with watermelon purchasers and younger respondents (under the age of 46) even more aware. Also favorable, while watermelon purchasing during the import season has remained more or less steady over the past 6 years (ranging from 57% in 2010 to 60% in 2009 and 2012 [58% this year]), the following reasons for purchase (during the winter) increased this year compared to 2012 – “tastes good/I like to eat it” (65% vs. 62%), “it’s a good snack” (59% vs. 54%), “it’s healthy and nutritious” (49% vs. 48%), “it’s fun to eat” (43% vs. 41%), “it looked fresh/appealing” (39% vs. 38%), “it’s a good value” (26% vs. 22%), “for a picnic, party or special occasion” (18% vs. 12%), “to make a carving” (12% vs. 11%), “given a sample in a store” (11% vs. 9%) and “to use as an ingredient in a recipe” (9% vs. 8%) - - a sign that all of the NWPB promotional efforts are working. Overall, the greatest threat to increased watermelon sales is the issue of “food safety”, particularly after the various produce recalls (especially cantaloupe) in 2012. While significantly fewer respondents are concerned with the fruit they purchase compared to last year, three-fifths of the population remain “extremely/very/somewhat” concerned with the safety of the fruit they buy (60% vs. 78% in 2012). Accordingly, the NWPB should reinforce its efforts to differentiate watermelon from cantaloupe and honeydew - - as a growing number of consumers consider cantaloupe, watermelon and honeydew to be the same and would lump them together as “melons” if a food safety issue were to occur (56% vs. 49%). Page § 4 YOUR LOGO Specifically, when the individual fruits are examined, “honeydew” and “cantaloupe” are thought to be the least safe, followed by “apples”, while “bananas”, “oranges” and “watermelon” are perceived to be the safest. Notably, when it comes to “who is to blame” for food safety issues, a growing number of respondents mentioned that it “depends on the situation” compared to last year (58% vs. 47%), followed closely by the “grower” (41% vs. 38%) and at lower levels, the “distributor” (26% vs. 20%) and “retailer” (16% vs. 13%). Furthermore, about one-third of the shoppers “have ever had a problem with the quality of watermelon they’ve purchased” (32%) - - with the primary quality issue being with the “whole” watermelon variety during the summer. However, more than three-fifths of the respondents who’ve experienced a quality problem with watermelon “didn’t do anything about it” (62%), while significantly fewer “stopped buying watermelon” (18%) or “returned it to the store” (15%). All in all, the outlook for watermelon remains very encouraging - - as awareness of it’s health attributes continue to grow and recognition that “watermelon contains more lycopene than any other fresh produce item” remains strong. However, while “safety” concerns have declined compared to last year, it continues to be of paramount importance. As such, it is our opinion that the NWPB strengthen its promotions/messaging surrounding the fact that “not all melons are the same” - - targeting the trade and the media (which will eventually trickle down to the consumer), while continuing with its efforts which position watermelon as a “safe food to eat” – that is also “healthy” and “a good value for the money”. Page § 5 YOUR LOGO FOOD SAFETY Page § 6 YOUR LOGO Concern With Fruit Safety While still a large segment of the population (64%), fewer households are concerned about the safety of the fruit they bought this year vis-à-vis last year (78%). Concern with Safety of Fruit Purchased – Import 50% 46% Extremely/very concerned 45% 40% 35% 36% 34% 32% 30% 30% 25% Somewhat concerned Not very/not at all concerned 22% 20% 15% 10% 5% 0% 2012 Q1c. How concerned are you with the safety of the fruit that you purchase? Would you say you are…? Page § 7 2013 Base: Total respondents YOUR LOGO Is Fruit Safety More Of An Issue Today Accordingly, not as many shoppers reported that the safety of the fruit they purchase today is a concern than it was in the past (2013 – 55% vs. 2012 – 65%). Is Fruit Safety More Of An Issue Today – Import 70% 65% Yes 60% 55% No 50% Don't know 40% 33% 30% 25% 20% 13% 10% 10% 0% 2012 Q1d. Do you consider the safety of fruit more of an issue today than it was in the past? Page § 8 2013 Base: Total respondents YOUR LOGO Fruit Safety Issues The two major health/safety concerns when purchasing fruit is E. Coli (53%) and Salmonella (46%), followed by Listeria (30%). Fruit Safety Issues - Import 60% E. Coli 53% 50% Salmonella 46% Listeria Don't know 40% 30% None of the above 30% 20% 20% 15% 10% 0% 2013 Q1d1. Which, if any, of the following are you concerned about when purchasing fruit? Page § 9 Base: Total respondents YOUR LOGO Fruit Safety Ranking Honeydew and cantaloupe are still the two fruits consumers are most concerned about (4.12 and 4.04 means) – followed by apples (3.63) and watermelon (3.33 mean) – while oranges (3.07) and bananas (2.80 mean) are perceived to be the safest. 2012 Import 2013 Import MEAN MEAN Bananas 2.85 2.80 Oranges 2.92 3.07 Watermelon 3.27 3.33 Apples 3.58 3.63 Cantaloupe 4.18 4.04 Honeydew 4.19 4.12 Fruit Safety Ranking Q1e. Please rank the following fruits in terms of how safe you consider them to be. Rank the fruit you consider to be the safest a “1” and the one you consider the least safe a “6” as well as the ones in between. Page § 10 Base: Total respondents YOUR LOGO Melon Safety Concerns Interestingly, higher than last year (directionally) more respondents feel that if there is a problem with the safety of melons (in general) all of the varieties would be affected (2013 – 56% vs. 2012 – 49%). Melon Safety Concerns – Import 90% Yes 80% 70% No 56% 60% 50% 51% 49% 44% 40% 30% 20% 10% 2012 2013 Q1f. Thinking about cantaloupe, watermelon and honeydew, do you consider them to be the same – in other words if a food safety issue occurred with one type of melon then would it affect every type of melon? Page § 11 Base: Total respondents YOUR LOGO Blame For Food Safety Issues Also, higher than last year, more of the shoppers in 2013 indicated that putting the blame for food safety issues “depends on the situation” (2013 – 58% vs. 2012 – 47%), while singling out specific groups (i.e. distributors, retailers, etc.) was more or less in line with 2012. Blame For Food Safety Issues – Import 70% 58% 60% 50% Depends on the situation The grower The distributor 47% 41% 40% The retailer 38% The consumer 30% 20% 26% Don't know 20% 16% 13% 10% 4% 6% 5% 7% 0% 2012 Q1g. If a food safety issue were to occur, who do you think would be to blame? Page § 12 2013 Base: Total respondents YOUR LOGO Impact of Food Recall on Purchase Intent Notably, when food is recalled, there is a significant impact on purchase behavior – as better than 4 in 10 played back that they “might or might not buy the product” (42%), with 32% indicating that they won’t buy it (definitely/probably won’t buy it). Impact of Food Recall on Purchase Intent - Import 45% 42% Definitely would purchase the product 40% 35% Probably would purchase the product 30% 25% Might or might not purchase the product 22% 20% 18% 15% 10% 10% Probably would not purchase the product 7% Definitely would not purchase the product 5% 0% 2013 Q1h. Using a 5 point scale, where a 5 is a "definitely would purchase the product" and a 1 is "definitely would not purchase the product", what impact does a food recall have on your future purchase behavior with that product? Page § 13 Base: Total respondents YOUR LOGO HEALTH PERCEPTIONS Page § 14 YOUR LOGO Health Perceptions – Awareness Positively, and an all-time high, nearly 6 in 10 of the respondents are aware of the health benefits provided by watermelon (2013 – 56% vs. 2012 – 47%). Awareness of Health Benefits - Import 70% 56% 60% 50% 44% 47% 60% 56% 53% 44% 40% 30% 40% 47% 53% Yes 56% 45% No 20% 10% 0% 2008 2009 Q2a. Are you aware of any health benefits that watermelon provides? Page § 15 2010 2011 2012 2013 Base: Total Respondents YOUR LOGO Health Perceptions – Awareness Also encouraging, across the board, all of the population segments are more aware of the health benefits provided by watermelon. Purchasers 70% 66% 58% 60% Region 2012 Import 2013 Import 50% 40% 30% 34% 32% 70% 60% 63% 55% 50% 45% 40% 45% 39% 10% 0% 10% 0% Yes C alifo rnia No Wes t Income 70% 56% 60% 48% 43% 65% 57% 43% 30% 20% 10% 0% Under $50k $50k - $75k P lains S o uth C entral G reat L akes S o utheas t M id S o uth N o rtheas t Education Level 40% $75k or more Q2a. Are you aware of any health benefits that watermelon provides? Page § 16 43% 55% 55% 54% 50% 52% 53% 47% 45% 30% 20% 20% 50% 59% 58% 70% 60% 50% 40% 30% 20% 10% 0% 41% 47% Under College Grad. 54% 64% College Grad. + Base: Total Respondents YOUR LOGO Health Perceptions – Purchase Intent More or less consistent with last year, better than 7 in 10 of the shoppers indicated that knowing watermelon is healthy and nutritious makes them more likely to want to purchase it in the future (2013 – 72% vs. 2012 – 77%). Purchase Intent Based on Health Benefits - Import Yes 100% 80% 74% 72% 77% 67% 77% 72% No 60% 40% 20% 17% 8% 18% 10% 20% 13% 15% 8% 16% Don't know 21% 7% 7% 0% 2008 2009 2010 2011 Q2b. Does/would knowing that watermelon is healthy and nutritious make you more likely to purchase it in the future? Page § 17 2012 2013 Base: Total Respondents YOUR LOGO Health Perceptions – Purchase Intent Consumers residing in California, the Mid South and Northeast, higher income households (earn $75k or more a year) and those with children under the age of 18 living with them are even more disposed to want to purchase watermelon because it’s healthy and nutritious. Purchasers 100% 85% Region 2012 Import 2013 Import 82% 80% 100% 80% 66% 60% 60% 40% 40% 20% 20% 0% 0% Purchasers 80% 76% C alifo rnia Non-purchasers 83% 81% 73% 79% 70% 78% 72% 74% 71% 71% 72% 71% 67% 68% Wes t Income 85% 75% 70% 100% 75% 74% 70% 70% S o utheas t M id S o uth N o rtheas t 78% 77% 69% 40% 60% 0% $75k or more Q2b. Does/would knowing that watermelon is healthy and nutritious make you more likely to purchase it in the future? Page § 18 G reat L akes 60% 20% $50k - $75k 85% 80% 65% Under $50k S o uth C entral Children Under 18 81% 79% 80% P lains Yes No Base: Total Respondents YOUR LOGO Health Perceptions – Specific Awareness Benefits Provided by Watermelon Awareness of specific watermelon health benefits were essentially on par with last year – as better than 6 in 10 credit it for “being low in fat” (75%), “low in calories” (70%) and “having vitamins” (63%). 2013 Import % 2012 Import % 2011 Import % 2010 Import % 2009 Import % 2008 Import % Watermelon is low in fat 75 75 81 81 79 85 Watermelon is low in calories 70 71 75 71 70 82 Watermelon has vitamins 63 61 64 65 64 69 Red Watermelon contains the antioxidant lycopene 49 53 57 56 50 43 Watermelon is high in Vitamin C 54 47 50 49 43 56 Watermelon consumption is good for cardiovascular function 39 47 46 37 27 31 The amino acids in watermelon help maintain arteries and blood flow promoting heart health 35 41 42 33 24 25 Watermelon is high in Vitamin A 35 35 31 30 27 27 Watermelon is high in Vitamin B-6 28 26 24 28 16 21 (555) (472) (400) (131) (143) (175) BASE Q2c. What health benefits are you aware of that watermelon provides? Page § 19 Base: Respondents Aware of Watermelon Health Benefits YOUR LOGO Health Perceptions – Source of Information When asked how they learned about watermelon health attributes, about one-quarter credited the Internet (26%), magazines and newspapers (24%) and friends/family (22%), followed by – nutrition labeling (17%), television (16%) and supermarket/grocery store (15%). 2013 2012 Import Import % % Internet (not via social networking) 26 34 Magazines and newspapers 24 30 Friends/family 22 26 Nutrition labeling 17 22 Television 16 23 Supermarket/grocery store 15 16 Books 13 19 School/classes 13 13 Internet (via social networking) 12 9 Doctor/healthcare provider 9 15 Weight Watchers 7 9 On the watermelon bin 7 7 On the actual watermelon 6 7 Radio 4 4 Don‘t know 20 11 (555) (472) BASE Q3. And, do you remember where you learned or read about watermelon health benefits? Page § 20 Base: Respondents Aware of Watermelon Health Benefits YOUR LOGO Health Perceptions – Lycopene Content On par with 2012, however higher than previous years, awareness that watermelon contains more lycopene than any other fresh produce item was played back by more than 4 in 10 of the shoppers aware of it (2013 – 44% vs. 2012 – 44%). Watermelon and Lycopene Content - Import 80% 70% 60% 50% 40% 30% 20% 10% 0% 68% 61% 39% 2008 32% 2009 Yes 62% 38% 2010 59% 41% 2011 Q2d. Are you aware that watermelon contains more lycopene than any other fresh produce item? Page § 21 56% 44% 2012 56% 44% No/Don't know 2013 Base: Respondents Who Are Aware Red Watermelon Contains Lycopene YOUR LOGO Health Perceptions – Lycopene Content (Yes) Also similar to last year, younger respondents (under the age of 46) and watermelon purchasers are significantly more likely to know that watermelon contains more lycopene than any other fresh produce item compared to their respective counterparts. Age Watermelon Purchasers 60% 50% 49% 2012 2013 47% 60% 50% 49% 2012 2013 47% 41% 40% 36% 40% 30% 30% 20% 20% 10% 10% 0% 0% Under 46 46+ Q2d. Are you aware that watermelon contains more lycopene than any other fresh produce item? Page § 22 36% 28% Yes Non-purchasers Base: Respondents Who Are Aware Red Watermelon Contains Lycopene YOUR LOGO VALUE FOR THE MONEY Page § 23 YOUR LOGO Perceived Value for the Money Significantly lower than last year, fewer watermelon purchasers indicated that it is a “much/ somewhat better value for the money” compared to other produce items (2013 – 37% vs. 2012 – 57%), with nearly half playing back that it’s an “equal value” (2013 – 47% vs. 2012 – 40%) and 16% a “somewhat/much worse value” (compared to 4% last year). Value for the Money – Import 60% 57% Much/ Somewhat better value for the money 47% 50% 40% 37% 40% An equal value for the money 30% 20% 16% 10% Somewhat/ Much worse value for the money 4% 0% 2012 Q7b. Compared to other produce items you’ve purchased this winter, do you think watermelon is…? Page § 24 2013 Base: Watermelon Purchasers YOUR LOGO PURCHASE BEHAVIOR Page § 25 YOUR LOGO Purchase Behavior – Types of Fruit Similar to last year (and lower than in the summer), about three-fifths of the respondents purchased watermelon in the past 12 months (2013 – 58% vs. 2012 – 60%), with bananas, apples and orange much higher. Types of Fruit Purchased in Past 12 Months - Import 100% 80% 93% 88% 87% 92% 92%91% 90% 89%90% 89% 86% 86% 81% 78% 79% 78% 77% 77% 2008 2009 60% 58% 55% 55% 58%60% 58% 58% 55% 56% 57% 53% 60% 35% 32% 29% 30% 31% 28% 40% 20% 2011 2012 0% Bananas Q1. 2010 Apples Oranges Which of the following fruits have you purchased in the last 12 months? Page § 26 Watermelon Cantaloupe Honeydew 2013 Base: Total Respondents YOUR LOGO Purchase Behavior – Watermelon Respondents residing in California, the Plains and Northeast, as well as those aware of watermelon health attributes, higher income consumers (earn at least $75K per year), those who have children under 18 living in their household and college graduates are most likely to be watermelon purchasers. Origin Children Under 18 Years OId 70% 67% 69% 65% 60% 60% 54% 55% 50% Yes Q1. 64% 58% 54% N or th ea s t 49% So ut h M id t 5 1% So ut he as re at So ut h 65% 54% No 2012 2013 80% 70% 60% 50% 40% 30% 20% 10% 0% 73% 52% 68% 48% Yes 74% 61% 63% 45% No 68% 48% $50k - $75k Aware of Health Attributes Which of the following fruits have you purchased in the last 12 months? Page § 27 80% 70% 60% 50% 40% 30% 20% 10% 0% Under $50k G W es t C 66% 56% 58% en tra l 50% Pl ai ns 59% La ke s 66% 62% C 64% 59% al ifo rn ia 70% 60% 50% 40% 30% 20% 10% 0% Income $75k or more Education Level 70% 60% 50% 40% 30% 20% 10% 0% 54% 65% 54% Under College Grad. 61% College Grad. + Base: Total Respondents YOUR LOGO Purchase Behavior – Attribute Ratings The most played back reason for purchasing watermelon is because it is “refreshing/cool/juicy” (2013 – 83% vs. 2012 – 91%), followed by – “it is satisfying” (2013 – 77% vs. 2012 – 84%), “my family likes it” (2013 – 79% vs. 2012 – 81%) and “it is healthy and nutritious” (2013 – 76% vs. 2012 – 81%). The lowest rated attribute is – “it has no reside or pathogens” (2013 – 43% vs. 2012 – 60%). 2013 2012 2011 2010 2009 2008 Import Import Import Import Import % % % Import % % % It is refreshing/cool/juicy 83 91 91 87 88 95 My family likes it 79 81 83 74 79 88 It is low in fat 79 78 82 84 82 79 It is satisfying 77 84 83 89 85 90 It is healthy and nutritious 76 81 83 74 74 83 It is a safe food to eat 72 75 78 82 76 81 It contains lots of vitamins 63 78 75 74 71 71 It is a good value 62 71 57 68 76 62 It is good for my heart 61 71 73 66 59 50 It is good for picnics 55 64 64 61 56 60 It contains the antioxidant lypocene 55 62 59 71 59 50 It is filling 54 71 62 68 59 71 It can be used in a variety of ways 52 62 63 66 68 40 It is the 2nd lowest fresh produce item in terms of containing pesticides and urbicides 49 61 46 42 50 40 It is part of my diet to help me lose weight 47 49 48 61 38 36 It has no residue or pathogens 43 60 55 50 50 43 (116) (129) (109) (38) (34) (42) BASE Q7a. Thinking about the many reasons you purchased watermelon during the winter, how strongly do you agree or disagree with the following statements? Page § 28 Base: Watermelon Purchasers YOUR LOGO Purchase Behavior - Enticements Consistent with previous years, price is the main purchase driver among import buyers, as better than 4 in 10 indicated that they would be more apt to buy watermelon/buy more of it “if it was cheaper/less expensive” (2013 – 44% vs. 2012 – 46%), while 3 in 10 also mentioned “if it was more available where I shop” (2013 – 30% vs. 2012 – 30%), followed by “if it looked good in the store” (2013 – 23% vs. 2012 – 28%). Enticements to Purchase Watermelon More Often - Import 70% 61% 56% 60% 50% 54% 53% 46% 40% 30% 32% 28% 26% 18% 14% 13% 9% 16% 16% 16% 11% 20% 10% 33% 32% 44% 18% 16% 14% 8% 17% 16% 12% 10% 16% 16% 11%9% 23% 19% 11% 7%7% 0% 2008 2009 2010 2011 2012 2013 If it w as cheaper/ less expensive If it looked good in the store If m y fam ily asked for it If it w ould help m e lose w eight If it w ere good for m y heart If I knew m ore w ays to use it Enticements to Purchase Watermelon More Often – Import (cont’d) 40% 36% 36% 30% 30% 20% 10% 19 % 8% 3% 30% 18 % 16 % 8% If it w as m ore available w here I shop 36% 10 % 8% 18 % 8% 10 % 6% 2% 30% 18 % 9% 9% 3% 18 % 12 % 10 % 5% 9% 12 % If I knew w here the product w as com ing from / knew the origin If it w ere healthier 6% Don't know 0% 2008 2009 2010 2011 Q10. What, if anything, would encourage you to purchase watermelon/more watermelon during the winter? Page § 29 2012 2013 Nothing Base: Total Respondents YOUR LOGO Purchase Behavior – Reasons for NonPurchase The main reasons for not purchasing watermelon among the import sample is also due to the fact that “it’s too expensive/not a good value” (2013 – 26% vs. 2012 – 30%) and “it’s too big/not convenient” (2013 – 27% vs. 2012 – 29%). Reasons for Not Purchasing (More) Watermelon - Import 40% 37% 31% 30% 23% 23% 20% 35% 33%33% 14% 9%11% 10% 14% 11% 10% 30% 29% 30% 29% 24% 19% 19% 14% 12% 27% 26% 18% 17% 12% 11% 9% 15% 15% 12% 11% 10% 10% 12% 0% 2008 2009 2010 2011 2012 2013 It's too expensive/ not a good value It's too big/ not convenient Spoils too quickly It's too hard to cut My fam ily doesn't like it I don't like the taste Reasons for Not Purchasing (More) Watermelon – Import (cont’d) 25% 20% 20% 5% 0% 7% 4%4% 2% 0% 2008 15% 6%6% 2% 0%0% 2009 9% 6%6% 3% 2% 1% 2010 Q11. Why don’t you purchase watermelon/purchase it more often? Page § 30 18% 16% 15% 12% 10% It's not available at the store w here I shop It is poor quality 11% 7%6% 1%2% 2011 8% 6% 4% 1%0%1% 2012 4% 3%2% 2% 2% 2% 2013 Too high in carbs/ sugar It has a poor external appearance It's not healthy It has too m any calories It's not good for m y heart Base: Watermelon Non-Purchasers YOUR LOGO Purchase Behavior – Attribute Agreement (Top-2 Box) Dropping from last year, fewer shoppers are “paying more attention to prices that they used to” (due to the weak economy) – (77% compared to 83% last year), while also less concerned about the prices of food products than ever before (71% vs. 79%). In addition, less of them are also cutting back on their expenditures (60% vs. 70%) and “sacrificing luxury items and only buying things they need” (57% vs. 67%). Attribute Agreement - Import 100% 85%83% 90% 80% 70% 75%73% 66% 60% 74% 71% 83% 79% 70% 67% 60% 77% 71% 60% 57% 50% I pay attention to prices when I'm shopping more than I used to I am more concerned about the prices of food products than ever before I am cutting back on my expenditures due to the current economic environment 40% 30% I am sacrificing luxury items and only buying the things I need 20% 10% 0% 2010 2011 2012 2013 Q12. Using the same scale from 1 to 5 where a 1 means you “agree completely” and a 5 means you “disagree completely”, how much do you agree with the following statements? Page § 31 Base: Total Respondents YOUR LOGO Purchase Behavior – Penetration by Season Consistent with previous years, watermelon is bought much more often in the summer months, as about 9 in 10 purchase it during this time of year (2013 – 92% vs. 2012 – 92%), followed by about half in the spring (2013 – 46% vs. 2012 – 54%), with about 4 in 10 buying it in the fall (2013 – 36% vs. 2012 – 39%) and 20% in the winter (compared to 20% last year). Purchase Penetration - Import 100% 94% 96% 95% 95% 92% 92% Summer 80% 60% 40% 53% 40% 45%41% 47% 45%40% 22% 19% 18% 20% 56% 54% 39% 22% 19% 46% 36% 20% Fall Winter 0% 2008 2009 2010 Q5a. During which season(s) have you purchased watermelon in the past 12 months? Page § 32 Spring 2011 2012 2013 Base: Watermelon Purchasers YOUR LOGO Purchase Behavior – Penetration (Primary Choice) by Season Accordingly, watermelon purchase penetration is strongest during the summer (2013 – 87% vs. 2012 – 86%). Season When Watermelon is Purchased the Most - Import 100% 91% 93% 88% 91% 86% 87% Summer 80% Spring 60% 40% 20% Fall 6% 2% 0% 4% 2% 1% 6% 4% 0% 2008 2009 2010 Q5b. And, which one season do you purchase watermelon the most? Page § 33 2% 4% 2% 2% 8% 3% 3% 7% 4% 2% Winter 2011 2012 2013 Base: Watermelon Purchasers YOUR LOGO Purchase Behavior – Types by Season In addition, and consistent with past years, whole watermelon is the type that is purchased most often throughout the year (of all of the seasons), followed at significantly lower levels by minis, sections/ slices and cubes. 2013 Import Whole 75% 80% Sections/Slices 70% 60% Mini Cubes 51% 51% 50% 41% 40% 30% 20% 21% 19% 9% 10% 22% 23% 21% 17% 11% 11% 13% 11% 3% 0% Spring Summer Q5c. And, which of the following types of watermelon do you purchase most often during each season? Page § 34 Fall Winter Base: Watermelon Purchasers By Season YOUR LOGO Purchase Behavior – Reasons for Purchase The main reason for purchasing watermelon continues to be because “it tastes good/I like to eat it” (2013 – 65% vs. 2012 – 62%), followed by – “it’s cool/refreshing/juicy” (2013 – 55% vs. 2012 – 56%) and “a good snack” (2013 – 59% vs. 2012 – 54%), with being considered “healthy and nutritious” (2013 – 49% vs. 2012 – 48%) also important. 2013 Import % 2012 Import % 2011 Import % 2010 Import % 2009 Import % 2008 Import % Tastes good/I like to eat it 65 62 72 71 74 69 It‘s a good snack 59 54 67 68 65 67 It‘s cool/refreshing/juicy 55 56 56 55 68 57 It‘s healthy and nutritious 49 48 61 61 65 36 It‘s fun to eat 43 41 45 42 41 45 It looked fresh/appealing 39 38 53 45 53 57 My family/kids like it 35 40 46 34 50 55 It‘s a good value 26 22 26 16 12 12 It has a lot of vitamins 23 36 35 34 38 21 It is a safe food to eat 23 34 38 50 35 26 It‘s good for my heart 22 32 34 16 35 14 I saw a large display at the store 20 12 12 8 15 17 When there is an advertised or promotional price 20 19 21 18 15 21 For a picnic, party or special occasion 18 12 19 5 9 7 It‘s part of my diet to help me lose weight 16 16 21 24 21 10 To make a carving 12 11 10 8 12 2 Given a sample in store 11 9 10 - - 7 It‘s in season 10 12 11 5 3 5 To use as an ingredient in a recipe 9 8 14 3 6 - (116) (129) (556) (38) (34) (42) BASE Q6a. For which of the following reasons do you buy watermelon during the winter months? Page § 35 Base: Watermelon Purchasers YOUR LOGO Purchase Behavior – Primary Purchase Reason Not surprising, the major reason the respondents indicated that they buy watermelon is because “it tastes good/I like to eat it” (2013 – 40% vs. 201 – 26%), followed at lower levels by “my family/kids like it” (2013 – 11% vs. 2012 – 12%) and “it’s healthy and nutritious” (2013 – 9% vs. 2012 – 12%). 2013 Import % 2012 Import % 2011 Import % 2010 Import % 2009 Import % 2008 Import % Tastes good/I like to eat it 40 26 28 26 26 38 My family/kids like it 11 12 14 13 24 26 It‘s healthy and nutritious 9 12 11 11 9 10 It‘s a good snack 8 8 9 5 9 5 It’s fun to eat 7 - - - - - It‘s cool/refreshing/juicy 4 9 6 5 6 5 For a picnic, party or special occasion 3 3 1 3 - 2 It‘s part of my diet to lose weight 3 2 4 5 6 2 When there is an advertised or promotional price 3 1 1 - 6 2 It looked fresh/appealing 2 5 9 8 6 5 Given a sample in store 2 - - - - - It’s a good value 2 - - - - - It has a lot of vitamins 2 - - - - - It‘s in season 1 1 - - - - It‘s good for my heart 1 5 2 8 3 - To use as an ingredient in a recipe 1 - - - - - I saw a large display at the store 1 - - - - - To make a carving 1 - - - - - (116) (129) (109) (38) (34) (42) BASE Q6b. And, thinking about all the reasons you buy watermelon during the winter months, what is the ONE reason you purchase it most often? Page § 36 Base: Watermelon Purchasers YOUR LOGO Purchase Behavior – Frequency by Type Watermelon is bought at least once a month by virtually all of the shoppers. 2013 Import 50% 40% 32% 38% 42% 42% 36% 38% 26% 30% 20% Whole Sections/Slices Mini Cubes 21% 14% 10% 10% 13% 11% 13% 18% 25% 5% 0% Once a week or more 2-3 times a month Once a month Once a season 2012 Import 70% 60% 50% 40% 30% 20% 10% 0% Whole Sections/Slices Mini Cubes 59% 46% 36% 36% 32% 12% 32% 27% 32% 35% 14% Once a week or more 2% 2-3 times a month Once a month Q8a/b/c/d. How often do you buy (whole watermelon/watermelon in sections or slices/watermelon cubes/mini watermelon) during the winter? Page § 37 27% 4% 8% 0% Once a season Base: Watermelon Purchasers By Type YOUR LOGO Purchase Deterrents – Import Season The primary watermelon purchase deterrent centers around price, as watermelon is perceived to be “too expensive” (2013 – 34% vs. 2012 – 36%), followed closely by being “out-of-stock” (2013 – 30% vs. 2012 – 32%). Purchase Deterients - Import 45% 42% 41% 40% 37% 36% 35% 30% It's too expensive/not a good value Not available at store where I shop 39% 32% 27% 25% 20% 15% 20% 18% 14% 11% 10% 5% 26% 25% 21% 24% 23% 21% 10% 9% 6% 5% 3% 2009 2010 7% 6% 3% 0% 0% 0% 2008 12% 8% 5% 2% 2011 Q9. Why don’t you purchase watermelon during the winter? Are there any other reasons? Page § 38 30% 24% 21% 20% 16% 11% 9% 5% 32% 24% 23% It has poor taste It's poor quality 34% It's too cold outside It has poor texture 21% 19% 16% My family doesn't like it It has a poor external appearance It's too high in carbs/sugar 13% 7% 5% 2% 2012 9% 7% 4% 2% 2013 Base: Import Watermelon Non-Purchasers YOUR LOGO What’s Done To Watermelon Before It Is Consumed About 4 in 10 of the consumers wash watermelon before they eat it (41%), while 33% run it under tap water and 36% do nothing to it. Watermelon Before It Is Consumed - Import 50% 40% 47% 41% 35% 28% 30% 33% 36% Wash it Run it under tap water 20% 10% Nothing 0% 2012 Q13b. What do you do with watermelon before you consume it? Page § 39 2013 Base: Total Respondents YOUR LOGO QUALITY ISSUES Page § 40 YOUR LOGO Ever Have Problem With Watermelon Quality The majority – about 7 in 10 – have never had a problem with the quality of the watermelon they’ve purchased (68%). Ever Have Problem With Watermelon Quality - Import 85% 75% 2013 68% 65% 55% 45% 35% 32% 25% 15% 5% Yes Q15i. Have you ever had a problem with the quality of watermelon that you've purchased? Page § 41 No Base: Respondents Who Have Not Used Mobile Phone to Assist With Grocery Shopping YOUR LOGO Type of Watermelon That Had Quality Issue/ And Season Whole watermelon is generally the variety that has a quality problem and it’s usually in the summer (47%). Type of Watermelon That Had Quality Issue/and Season - Import 60% Winter Spring Summer Fall 47% 50% 40% 30% 24% 26% 26% 20% 11% 12% 11% 10% 4% 7% 8% 9% 6% 9% 7% 6% 8% 0% Whole Mini Sections/Slices Q15J. With which of the following types of watermelon did you have a quality problem? And, which season(s) did you have this quality problem? Page § 42 Cubes Base: Respondents Who Have Had a Problem With the Quality of Watermelon They’ve Purchased YOUR LOGO Action Taken When There’s A Problem With Watermelon Notably, while better than 6 in 10 don’t do anything when they run into a problem with watermelon (62%), nearly 2 in 10 stop buying it (18%) and/or return it to the store (15%). Action Thane When There’s a Problem With Watermelon - Import 80% 2013 70% 62% 60% 50% 40% 30% 20% 18% 15% 6% 10% 2% 0% Stopped buying watermelon Returned in to the store Changed the store where Looked at the stickerI purchase watermelon label of the watermelon for contact information Q15k. What did you do when you had a problem with the quality of watermelon? Page § 43 Didn't do anything Base: Respondents Who Have Had a Problem With the Quality of Watermelon They’ve Purchased YOUR LOGO Quality Concerns When Fruit Is Sold In Bunches When fruits are sold in bunches (i.e. apples/bananas) there is no more or no less concern about their quality compared to watermelon – 75% have the same amount of concern. Quality Concerns When Fruit is Sold in Bunches - Import 80% 75% 2013 70% 60% 50% 40% 30% 20% 14% 11% 10% 0% More concerned about fruit that comes in bunches About the same amount of concern about fruit that comes in bunches Less concerned about fruit that comes in bunches Q15M: How concerned are you with the quality of fruit that is sold in bunches - such as apples or bananas compared to watermelon? Page § 44 Base: Total Respondents YOUR LOGO Season When Watermelon Quality Is An Issue There is no specific time of the year when the consumer is more concerned about the quality of watermelon (61%). Season When Watermelon Quality is an Issue - Import 80% 2013 70% 61% 60% 50% 40% 30% 26% 20% 12% 10% 7% 7% Spring Fall 0% Winter Summer Q15O. Is there a specific time of year when you are more concerned about the quality of watermelon? Page § 45 No specific time of year Base: Total Respondents YOUR LOGO WATERMELON BINS Page § 46 YOUR LOGO Purchase Intent Based On Specific Bin About four-fifths of the respondents indicated that after seeing watermelon in this bin they are “extremely/ very/somewhat” likely to buy it if it were sold at an acceptable price (79%). Purchase Intent Based On Specific Bin – Import 60% 50% Extremely/ very likely Somewhat likely 48% Not very/ not at all likely 40% 30% 31% 20% 20% 10% 0% 2012 Q13b1. Assuming that watermelon is sold at an acceptable price in a store where you normally shop, how likely would you be to buy watermelon if it were sold in the following bin? Page § 47 Base: Total Respondents YOUR LOGO Purchase Intent Based On Specific Bin Moreover, this bin is even better – as 9 in 10 of shoppers agreed that they would be “extremely/very/ somewhat” likely to purchase watermelon after seeing it sold this way (90%). Purchase Intent Based On Specific Bin – Import 70% Extremely/ very likely 63% 60% Somewhat likely 50% Not very/ not at all likely 40% 30% 27% 20% 9% 10% 0% 2012 Q13b2. And, assuming that watermelon is sold at an acceptable price in a store where you normally shop, how likely would you be to buy watermelon if it were sold in the following bin? Page § 48 Base: Total Respondents YOUR LOGO Type Of Information Interested In On Bins Nearly half (47%) of the respondents are interested in seeing “nutritional information” on bins at the retail store, followed at much lower levels by “stickers” (17%), “eye-catching information/ advertisements” (16%) and “QR codes” (11%) – all lower than last year. Type Of Information In On Bins - Import 70% 60% Nutritional information 60% Stickers 47% 50% Eye-catching information/advertisements QR Codes 40% Don't care 31% 30% 20% 20% 11% 10% 18% 17% 16% 15% 9% 21% Nothing 11% 0% 2012 2013 Q13c. What type of information would you like to see on the watermelon bins at the retail store? Page § 49 Base: Total Respondents YOUR LOGO SOCIAL MEDIA Page § 50 YOUR LOGO Social Media Facebook continues to be the dominant social network website, as nearly three-quarters of the shoppers belong to it (2013 – 71% vs. 2012 – 74%), with all of the others significantly lower. Social Media Website Membership – Import 80% 71% 70% 60% 50% 40% 30% 20% 25% 25% 19% 18% 13% 10% 11% 9% 9% 4% 4% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 0% Facebook.com Twitter.com Linkedin.com Pinterest Google+ Instagram Myspace.com Classmates.com Tumblr StumbleUpon 360.yahoo Hi5.com Tagged.com Reunion.com Livejournal.com Flixster.com Cafemom.com Friendster.com Myyearbook Blackplanet Bebo None of the above 2013 Q21b. Which, if any, of the following social networking websites do you belong to? Page § 51 Base: Total Respondents YOUR LOGO Social Media – Facebook Facebook is skewed toward – watermelon purchasers, younger respondents (under the age of 46) and those with children under the age of 18 residing with them. Import Purchasers Children Under 18 90% 80% 2012 78% 2013 72% 70% 68% 69% Age 90% 90% 2012 2013 81% 80% 73% 72% 71% 80% 70% 70% 60% 60% 60% 50% 50% 50% 40% 40% 40% 30% 30% 30% 20% 20% 20% 10% 10% 10% 0% 0% 0% Yes Non-purchasers Yes Q21b. Which, if any, of the following social networking websites do you belong to? Page § 52 No 2012 2013 80% 75% 65% 66% Under 46 46+ Base: Total Respondents YOUR LOGO Social Media About half of the shoppers indicated that they would be interested (extremely/very/somewhat) in connecting with the National Watermelon Promotional Board on the social networking sites that they belong to in order to receive new recipes, health information, etc. (2013 – 49% vs. 2012 – 59%). Interest in Connecting With NWPB Via Social Media – Import 60% 51% 50% Somewhat interested 41% Not very/ not at all interested 40% 32% 30% Extremely/ very interested 27% 26% 23% 20% 10% 0% 2012 Q21c. How interested would you be in connecting with the National Watermelon Promotional Board on the social networking sites that you belong to in order to receive new recipes, health information, etc.? Page § 53 2013 Base: Respondents Who Belong to Social Networking Websites YOUR LOGO Social Media – Top-2 Box Specifically, watermelon purchasers, those aware of watermelon health attributes, consumers with children under 18 residing in their household, younger shoppers and those living in California and the Plains states are most interested in connecting with the NWPB via social networking. Purchasers Region 50% 2012 2013 39% 40% 31% 50% 40% 30% 30% 19% 20% 19% 2012 2013 40% 38% 31% 31% 22% 30% 23% 21% 20% 20% 29% 30% 37% 28% 26% 25% 15% 10% 10% 0% 0% Yes Aware of Health Attributes 42% 2013 31% 50% 40% 42% 22% 20% 19% 2012 2013 26% 19% 20% 10% 15% 0% 10% Yes No Yes No Q21c. How interested would you be in connected with the National Watermelon Promotional Board on the social networking sites that you belong to in order to receive new recipes, health information, etc.? Page § 54 P lains S o uth C entral G reat L akes S o utheas t M id S o uth N o rtheas t Age 38% 30% 30% 25% Wes t Children Under 18 2012 40% 35% C alifo rnia Non-purchasers 40% 35% 30% 25% 20% 15% 10% 5% 0% 36% 2012 2013 30% 24% 20% Under 46 46+ Base: Respondents Who Belong to Social Networking Websites YOUR LOGO Social Media In addition, of those interested in receiving information from the NWPB via social media, about 7 in 10 would prefer to be contacted via email (69%), followed at much lower levels by “social networking sites they belong to” (35%) and “text messages” (14%). Interest in Receiving Social Media Updates/Alerts From NWPB - Import 80% 75% Email 69% 70% 60% Through the social networking site you belong to 50% Text message 40% 30% 35% 29% I don't want to receive updates/alerts 20% 12% 14% 10% 10% 10% 0% 2012 2013 Q21d. How would you be interested in receiving updates/alerts from the National Watermelon Promotional Board? Page § 55 Base: Respondents Who Were Interested in Being Contacted by NWPB via Social Media YOUR LOGO MOBILE DEVICES Page § 56 YOUR LOGO Mobile Devices More than one-quarter of the respondents use their mobile device to assist with grocery shopping (28%), with 52% aware of what a QR code is (higher than last year – 42%). Mobile Device Used When Grocery Shopping - Import 80% 75% Aware of QR Code - Import 70% 72% 70% 60% 50% 50% Yes 40% 30% 25% 28% No 52% 49% 42% 40% Yes No 30% 20% 20% 10% 10% 0% 0% 2012 2013 Q15d. Do you ever use your mobile device to assist you with grocery shopping? Q15e. Do you know what a QR code is when it is used with mobile phones? Page § 57 58% 60% 2012 2013 Base: Total Respondents YOUR LOGO Mobile Devices Among those who use their mobile device to assist with grocery shopping, half use it to “compare prices” (2013 – 50% vs. 2012 – 62%), followed by – “for coupons” (2013 – 57% vs. 2012 – 57%), “to find better prices” (2013 – 42% vs. 2012 – 47%) and “for QR codes” (2013 – 31% vs. 2012 – 34%). How Mobile Phone is Used When Grocery Shopping - Import 85% 2012 2013 75% 65% 62% 57% 57% 55% 50% 47% 42% 45% 34% 35% 31% 25% 15% 5% For coupons To compare prices Q15f. How do you use your mobile phone to assist you with your grocery shopping? Page § 58 To find better pricing I use QR codes Base: Respondents Who Have Used Mobile Phone to Assist With Grocery Shopping YOUR LOGO Mobile Devices The main reasons for not using their mobile phones to assist with grocery shopping include – “haven’t considered it” (2013 – 39% vs. 2013 – 37%), “shop with my paper list” (2013 – 27% vs. 2012 – 28%) and “I don’t want to incur the mobile phone data charges” (2013 – 16% vs. 2012 – 22%). Reasons Mobile Phones Not Used to Assist With Grocery Shopping - Import 85% 2012 2013 75% 65% 55% 45% 37%39% 35% 28%27% 25% 15% 22% 16% 10%10% 11%10% 10% 9% 9% 9% My mobile phone screen is too small to surf the web I don't know what website to go to Websites are more difficult to navigate on a mobile phone 13% 8% 5% Haven't considered it I shop with my I don't want to I don't have a paper list, incur the good mobile using the mobile phone reception and/ mobile phone data charges or speed would be too time consuming Q15g. Why haven’t you yet used your mobile device to assist you with grocery shopping (via QR codes, coupons, better pricing, etc.)? Page § 59 Didn't know that was possible Base: Respondents Who Have Not Used Mobile Phone to Assist With Grocery Shopping YOUR LOGO Mobile Devices About one-quarter of the consumers plan to use their mobile device in the future to “assist with grocery shopping via QR codes, coupons, better pricing, etc.” (2013 – 26% vs. 2012 – 23%). Plan to Use Mobile Device to Assist with Shopping via QR Codes - Import 85% 77% 74% 2012 2013 75% 65% 55% 45% 35% 25% 26% 23% 15% 5% Yes Q15h. Do you ever plan on using your mobile device to assist you with grocery shopping via QR codes, coupons, better pricing, etc.? Page § 60 No Base: Respondents Who Have Not Used Mobile Phone to Assist With Grocery Shopping YOUR LOGO Demographic Information RACE 2013 % AGE 2013 % NUMBER OF PEOPLE LIVING IN HOUSEHOLD 2013 % Caucasian (Non-Hispanic) 68 24 or younger 13 1 18 Asian 4 25-29 10 10 55 13 30-35 2-3 African-American 10 27 14 36-39 4 or more Hispanic/Latino Other 2 40-45 11 2013 % 46-49 10 MEAN (who eat watermelon) 2.66 INCOME 50-55 12 Less than $15,000 10 56 and older 23 FAMILY MEMBER CONSUMING WATERMELON 2013 % $15,000 – less than $24,999 12 MEAN You 57 $25,000 – less than $34,999 9 Spouse/significant other 16 $35,000 – less than $49,999 13 Child 17 $50,000 – less than $74,999 14 Some high school or less Other 5 $75,000 – less than $99,999 8 High school graduate Don’t know 4 $100,000 – less than $124,999 7 Some college/AA/Trade/Tech. $125,000 – less than $149,999 7 College graduate NUMBER OF CHILDREN (UNDER 18) IN HOUSEHOLD $150,000 – less than $199,999 9 2013 % $200,000 or more 8 None 55 Refused 4 1 20 GENDER 2013 % 2-3 23 4 or more 2 Male 37 Female 63 EDUCATION MEAN 2013 Post graduate degree (masters or doctorate) CHILDRENS INFLUENCE ON WATERMELON PURCHASE 2013 % Greatly influence purchases 35 Somewhat influence purchases 43 Do not influence purchases 22 MEAN Base Size Varies Page § 61 YOUR LOGO