Peanut Quarterly 31 National Peanut Board

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PO P E A N U T

Q U A R T E R L Y

A Publication of the National Peanut Board for America’s Peanut Farmers | Issue 31

The Peanut Allergy Panacea: Is a Hypoallergenic Peanut Possible?

INSIDE THIS ISSUE:

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Should Commercial Products Be Shared?

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Mornings Start Brighter With Peanut Butter

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Hot Nutrition & Food Trends for 2015

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Complete Our Survey For A Chance To Win A Drone Deadline for entry June 30, 2015


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.

National Peanut Board 2015 Officers and Members Bob White, Chairman Monty Rast, Vice Chairman Gayle White, Secretary Ed White, Treasurer Alabama Ed White Tom Corcoran, Alternate Arkansas Gregory Gill Gregory Baltz, Alternate Florida Jeffery Pittman Georgia John Harrell Andy Bell, Alternate Mississippi Joe Morgan Lonnie Fortner, Alternate New Mexico Wayne Baker Kenneth Cox, Alternate North Carolina Dan Ward Ray Garner, Alternate Oklahoma Gayle White Les Crall, Alternate South Carolina Monty Rast Bud Bowers, Alternate Texas Bob White Peter Froese Jr., Alternate Virginia John Crumpler II Paul Rogers, Alternate Member-at-Large Vic Jordan Bob Parker NPB President and CEO PQ Editorial Staff & Contributors

A Message from Our 2014 Chairman. BY JOHN HARRELL Outgoing Chairman

Dear Fellow Peanut Farmers, Thank you for allowing me to be your chairman this past year. I was fortunate to experience the first full year of our Perfectly Powerful Peanut campaign. The new brand has taken off and is being used by the state peanut producer organizations and industry. Another important area of success for the Board in the past year was in peanut allergy. While NPB has been committed to helping people with peanut allergies since the Board was established, our expanded peanut allergy program could not have come at a better time. In November, I attended a meeting of our newly formed Food Allergy Education Advisory Council in Atlanta. I was impressed with the diversity of the group, which has a significant focus on helping schools manage food allergies without food bans. It is a difficult battle between facts and emotion in this area, but we are making progress. Through this council, we have intelligent and influential people in our corner.

made us more knowledgeable about the peanut industry and has made us better Board members. We have a great staff that makes our job as Board members pleasurable and who truly work for America’s peanut farm families. I am grateful to the Board members and alternates who volunteer their time to serve. My wife Deena and son Douglas have been extremely supportive of my involvement on the Board. The saying, “If farmers are the salt of the earth, their spouses are the sugar” has never been more true. Bringing the Board to visit my hometown in Southwest Georgia was the highlight of my year, and I look forward to serving in 2015 with Chairman Bob White of Quail, Texas. Our National Peanut Board can accomplish almost anything when we can trust and respect one another.

John C. Harrell Immediate Past Chairman

NPB has a great president and CEO in Bob Parker, and through his leadership, he has

Editor: Cathy Johnson Sr. VP, Marketing & Communications: Ryan Lepicier Bob Coyle

Sherry Coleman Collins

Mark Dvorak

Gene Powers

Jewel Hazelton

Steve Saari

Lauren H. Williams

Hilary Stiefelmeyer

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

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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


Should Commercial Products Developed With Grower Research Funds Be Shared? Within the span of three years, U.S. farmers have become the world’s low-cost producer of peanuts. One contributor to that rapid change is vast improvements in seed varieties. Ten years ago, the U.S. average yield was approximately 3,000 pounds per acre. For the 2012 – 2014 crops, we have, amazingly, averaged over 4,000 pounds.

BY BOB PARKER President and CEO

Not surprisingly, other countries want our seed varieties. Your representatives on the National Peanut Board believe that commercial seed varieties developed with your hard-earned dollars should be used to grow the U.S. peanut industry.

This new policy makes perfectly good sense to our board members. They realize if a 33 percent increase in yields is here to stay, we had better find a home for the peanuts, or we must face the alternative of planting a lot fewer acres of peanuts. And the best opportunity for expanding sales is in the export markets.

That’s why, in 2013, the NPB voted to change the language in its research agreement so that products developed with NPB funding could be licensed only in the U.S., unless specifically approved by the Board and all other parties signing the agreement.

As expected, some universities do not agree with NPB’s decision. We are working hard to resolve these differences. But NPB members believe that U.S. peanut farmers paying for the research should get the benefits of the research.

NICK MARSHALL, FLORIDA After graduating from Troy State University, Nick Marshall decided to come back home and help his father on the farm. Since then, he has partnered with his father, James, to operate over 2,000 acres of cotton and peanuts in Baker, Florida. “The most enjoyable part of farming to me is simply being able to do the work with my dad and maintain a great relationship, watching the crops grow and certainly, the freedom of being your own boss,” Marshall said. Marshall is a member of the Florida Peanut Producers Association Board of Directors where he serves as vice president. He also serves on the Okaloosa County Farm Bureau Board. He is a graduate of the Syngenta Peanut Leadership Class and just finished the Syngenta and National Cotton Council Policy Education Program earlier this year. “The National Peanut Board is important for many reasons, but I believe the most important is the information they provide to everyday consumers. They work hard at getting the right messages out about the peanut, especially these days, when you have so much negative publicity about peanut allergies,” he said. When not working on the farm, he enjoys spending time with his wife Maryann, fiveyear-old son Landen and seven-month-old daughter Emery.

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The Peanut Allergy Panacea: Is a Hypoallergenic Peanut Possible?

By Cathy Johnson, MAPW Anyone who works in the peanut industry or anyone who just enjoys eating peanuts holds the hope that one day peanut allergies will be a thing of the past. For decades, researchers, food scientists, inventors and others have tried to find a solution to the peanut allergy problem. And when peanut growers formed the National Peanut Board 15 years ago, one of their first priorities was to help fund viable peanut allergy research and treatment options. While less than one percent of the population has a peanut allergy, the founding Board decided that one person harmed by the food that they grow was one person too many. To date, the Board has contributed more than $11 million to peanut allergy research, outreach and education. As the news media has given increasing attention to peanut allergy issues in the last few years, so too has there been more public attention focused recently on hypoallergenic peanuts—or on ways to reduce the allergenic components in peanuts. National Peanut Board wanted to explore the reports by researchers, entrepreneurs, the media and others about the possibility of bringing a hypoallergenic peanut product to market. What is the science behind hypoallergenic peanuts? What clinical trials are being done and how do

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the processes for taking the allergens out of a peanut affect the flavor, nutrition and appearance of the legume? What are the potential uses for a hypoallergenic peanut product, and would it be accepted by the peanut industry and the allergy community? At the outset, it’s important to understand the term “hypoallergenic.” Hypoallergenic does not mean allergy-free or non-allergenic and was first used in the 1950s in skin care products. According to Merriam-Webster’s Medical Dictionary, hypoallergenic means “having little likelihood of causing an allergic response.” Hypoallergenic cosmetics are products that manufacturers claim produce fewer allergic reactions than other cosmetic products. There are no federal standards or definitions that govern the use of the term “hypoallergenic.” The term means whatever a particular company wants it to mean. In the past, the FDA tried to regulate the term hypoallergenic, but any regulation proposals were ultimately ruled invalid by the courts.1 In the past few months, three hypoallergenic peanut methods have emerged from the lab, gained media attention and have entrepreneurs seeking to commercialize them. All processes are non-GMO, work on post-harvest peanuts only, and have the claim made that allergens are reduced, not eliminated completely. U. S. Food and Drug Administration, Hypoallergenic Cosmetics; http://www.fda.gov/cosmetics/labeling/claims/ucm2005203.htm

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in foods that is on the FDA Generally Recognized as Safe (GRAS) list and is edible. The chemical ingredient can be added before, during or after grinding when making peanut butter. “Initially we tested this process on off-the-shelf creamy peanut butter,” said Glen Smotherman, financial director at Honeycutt. “We verified our process with an independent allergy testing lab (Donald Guthrie Foundation/LEAP Testing Service). We found the treated peanut butter showed a 15 to 18 percent reduction in the allergen and were reduced to non-detectable levels.” A third process is known as pulsed light technology, or PLT. A team led by Wade Yang, an assistant professor in food science and human nutrition at the University of Florida, told Newsweek2 that PLT “may remove up to 80 percent of peanut allergens in whole nuts.” Yang explained to Newsweek, “PLT is the light emitted from a lamp containing an inert gas like xenon… It can be tens of thousands times more potent than conventional light...The heating effect of UV light breaks down the structure of the peanut proteins that elicit allergic reactions in a way that normal light cannot—effectively cutting allergens …to below 1.5 milligrams,” or, as Yang says, “enough of a reduction so that 95 percent of those with peanut allergies would be safe.” Yang and a team of scientists had the results of Pulsed Light Technology research published in the Journal of Food Science in July 2008.3 A patented process created by Jianmei Yu, a food and nutrition researcher at North Carolina A&T, removes roasted peanuts from the shell and treats them with a food-grade enzyme.

Attention-grabbing headlines such as “Hypoallergenic peanuts offer hope for peanut allergy sufferers” and “Hypoallergenic peanuts move closer to commercial reality” give the impression that products will be on the market soon. The reality is that hypoallergenic peanut proponents have a long way to go in the clinical testing process from the clinician’s point of view and a long road ahead from a manufacturer’s point of view.

Three Ways to Take Allergies Out of Peanuts Announced last year, Dr. Jianme Yu, a food and nutrition researcher at North Carolina A&T’s School of Agriculture and Environmental Science, along with a team and support from USDA-ARS, found a way to treat peanuts and reduce their allergens by, they claim, about 98 percent. The treatment consists of pretreating shelled and skinless peanuts with a food-grade enzyme. Whole roasted peanuts go through a oneminute soaking to make it possible for the peanut to absorb the foodgrade enzymes. These are the same types of enzymes used for decades in breads, wines and cheeses, to name a few. Then, the peanuts go through an incubation period (at first for around 1.5 hours, but now down to 30 minutes or less.) After drying, the peanuts are ready for consumption. Whole roasted peanuts are used in the process (instead of raw) because it is believed to produce a more consistent product with a longer shelf life. A similar process has been developed by The Honeycutt Company, based in Norcross, Georgia. Travis Honeycutt, entrepreneurial chemist, created a hypoallergenic peanut process based on his success in innovating a non-allergenic natural rubber latex that is now used in over 40,000 latex products. Honeycutt holds 40 U.S. patents for a range of products and has a provisional patent for a process that reduces allergenic protein in creamy peanut butter to below detection levels. The Honeycutt process involves roasting the peanuts, removing shells and skins, and then treating the nuts with a chemical ingredient used

Putting Hypoallergenic Peanuts to the Test “It’s nothing new for researchers to study the allergens, or protein, in peanuts. We’ve been doing that for decades,” said Howard Valentine, retired executive director of The Peanut Foundation. Valentine and other researchers interviewed by NPB outlined the familiar process for gaining credibility for a new discovery in the lab. First, the researcher attempts to prove a hypothesis and finds something unique. Next comes a proof of concept study, which is usually small and used to verify that a concept has the potential of being used. If the proof of concept holds, the researcher files for a series of tests, with groups that increase in numbers of people, in controlled settings. Sometime within this process, scientists may file for a patent. Findings must be published in a reputable scientific or medical journal. The findings must be peer reviewed to gain credibility. “For hypoallergenic peanut products,” said Valentine, “a series of tests needs to done with peanut-allergic and non-peanut-allergic people. It is important to have a placebo control component because some people who may be anxious may have a response that mimics an allergic reaction. A series of feeding studies needs to happen, starting with giving subjects a small amount of crushed peanuts and pushing it until a predetermined amount can be tolerated. All studies would need strong FDA oversight.” The North Carolina A&T enzyme process, in conjunction with the University of North Carolina at Chapel Hill has had their clinical trial results published also. A proof of concept study, in the form of skin prick tests, has been conducted to “determine the safety and allergenicity of hypoallergenic peanut product extract as compared to standard peanut extract in an adult population with known peanut allergy,” according to Clinicaltrials.gov.4 The test was performed on 22 adults ages 18 to 65. Castillo, Stephanie, Making Hypoallergenic Peanuts, Newsweek, Oct. 18, 2014; www.newsweek.com/2014/.../making-hypoallergenic-peanuts-278109.html. Chung, S.-Y., W. Yang, K. Krishnamurthy. (2008). Effects of pulsed UV-light on peanut allergens in extracts and liquid peanut butter. Journal of Food Science, 73(5): C400-C404. 4 https://clinicaltrials.gov/show/NCT01489514. 2

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The study ended in December and has been accepted into Food Research International, a journal of the Canadian Institute of Food Science and Technology (CIFST). Michelle Hernandez, MD, Investigator, University of North Carolina at Chapel Hill, was the study’s lead, and said, “We have to be guarded about the results because this is a proof of concept study. The bottom line is we don’t know how this will perform in people who are allergic to peanuts. If researchers are able to confirm the safety and efficacy of a hypoallergenic peanut product, then studies on larger populations can be conducted. The results thus far have to be taken with a lot of caution,” said Hernandez. At North Carolina A & T, a sample of treated peanut flour. “I’m glad researchers are working on improving the lives of people with peanut allergies,” said Soheila Maleki, Ph.D., lead research scientist, Food Allergy Research at the U.S. Department of Agriculture. “But many more questions need to be asked and the proper testing on humans needs to be done before we can have full confidence that this is a solution that prevents or helps reduce allergic reactions to peanuts.”

Discrepancies For those of us outside the medical and allergy communities, discrepancies lie between claims made in the news media and press releases and actual clinical test results to date. “I got calls from major national news outlets who were excited about the hypoallergenic peanut news and I had to say to each of them, ‘Slow down, we still have a long way to go,’” said Hernandez. For instance, the media reports say the treatment reduces two key allergens, Ara h 1 to undetectable levels and Ara h 2 by up to 98 percent.5 While it is true that scientists have identified up to 12 allergens in peanuts (Ara h 1 up to Ara h 12), Ara h 1 and 2 are the most likely to cause dangerous systemic reactions or anaphylaxis in the U.S. population.6 “The allergic population in different countries can be more allergic to different allergens in peanuts and tree nuts,” said Maleki. Also, Maleki questions a focus that emphasizes just two allergens. “The researchers put an enzyme in the presence of a peanut,” said Maleki. “The enzymes used here are like molecular scissors. They chop up all of the proteins they come in contact with. It’s impossible to chop up only a few. All the allergens, and proteins in the peanut, are affected by the enzyme.” Others are skeptical about claims about the reduction of only two of the seven allergens. What about the remaining allergens? One research and development scientist with a major manufacturer, who asked to have his name withheld, said hypoallergenic peanut products are irrelevant from a manufacturer’s point of view. He indicated it takes a minute amount— sometimes a nanogram—in a highly allergic person to cause a severe

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reaction. He worries that putting a hypoallergenic peanut on the market would give consumers a false sense of security while not eliminating the problem of peanut allergies. In a statement attributed to Yu, North Carolina A&T’s website7 states, “Treated peanuts can be used as whole peanuts, in pieces or as flour to make foods containing peanuts safer for people who are allergic.” Maleki points out that the only test that has been conducted uses a peanut product extract. She explains, “When the peanuts are put in the solution, and even if it is crushed, some particulates become soluble—or liquid— while some particles remain insoluble. The majority of tests only A sample of untreated peanut flour. measure the proteins or allergens in the soluble matter—the extract. The immunological parts of the study are only conducted on a peanut liquid extract, not on the part that does not dissolve. So we only have results for two reduced allergens in the extract—not for the whole peanut. It is impossible from this clinical trial, which only involves skin testing with extracts, to say the treatment is effective on whole peanuts, peanut pieces or peanut flour.” Other claims include the enzyme process “maintains the nutrition and functionality needed,8” “has same taste” and “does not change physical characteristics.9” “How does the NC A&T process affect flavor, texture or nutrition? No one can possibly know without more testing,” said Maleki. “Scientists can measure the nutritional content of the treated product in this study, but, again, most of the measures are with the extract. There is a long road to making or marketing the hypoallergenic peanut. Approved clinical trials, in which peanut allergic volunteers ingest the product, are necessary. A successful food challenge would result in minimal or no symptoms. This is called a ’food challenge’ and is considered the gold standard for testing allergenicity. Until this is done, all claims to a hypoallergenic peanut are premature.” Maleki continued, “The same information is true for the pulsed UV-treated peanuts. They only study the soluble extracts and not the whole peanut. Insoluble material cannot be used in the currently existing scientific methods used to measure simple immunological responses. Pulsed UV will cross-link all proteins as well; it is not an allergen-selective treatment.” Valentine agrees; “We cannot possibly test the nutrition of any food without doing a feeding study, in animals or humans. We won’t know how the treated peanuts break down and are digested in the body until we test that.” http://www.foodsafetynews.com/2014/06/hypoallergenic-peanut-products-one-step-closer-tocommercial-reality/#.VOYBry79yfI www.peanut-institute.org/eating-well/allergy/ 7 http://www.ncat.edu/news/2014/08/peanuts.html 8 http://www.ncat.edu/news/2014/08/peanuts.html 9 http://www.foodsafetynews.com/2014/06/hypoallergenic-peanut-products-one-step-closer-tocommercial-reality/#.VOYBry79yfI 5

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Allergy Community

know there is a lot of testing and developing that goes into something like this. Our goal is to show that it can be done and to help others further Eleanor Garrow-Holding is founder and CEO of the Food Allergy & develop hypoallergenic peanut products and let the industry decide Anaphylaxis Connection Team (FAACT) and a member of NPB’s Food if they’re valid or not.” Honeycutt continues, “We believe we have the Allergy Education Advisory Council. She is also the parent of a son chemistry that will work. It doesn’t change the nature of the peanut with life-threatening food butter, does not discolor it allergies, including a peanut and uses chemicals already allergy. “As a parent, I think on the market. Also, as we hypoallergenic peanuts are experimented with the confusing and dangerous. viscosity, we found the Hypoallergenic peanuts are peanut butter works well not allergen-free, so how in a squeeze bottle, which could someone be sure they adds another dimension to wouldn’t react if they ate one? a potential product. We feel I can’t imagine someone with we’re on to something.” a peanut allergy wanting to Critics point out that latex is take that risk. I would not take not ingested while, of course, that risk with my son’s life,” peanuts are. she says. “True,” said Smotherman. “Hypoallergenic peanuts “We’ve got to make sure the also allow the non-allergic protein allergens in peanuts person to say peanut allergies North Carolina A & T announced an exclusive license for its hypoallergenic peanut patented enzyme process to Alrgn Bio are blocked before we take in October. Pictured are untreated peanuts (left) and treated peanuts (right). are ‘no big deal’,” Garrowthis to market. We’re at the Holding continues. “It trivializes allergies along with the life-threatening beginning stages with this, and clearly, we have more testing to do. We reactions some people get when they eat certain foods. I’m afraid do know there was a strong concern about the allergens in latex at the proponents of hypoallergenic peanuts are further complicating issues time we developed that process and we reduced the allergens to below surrounding a life-threatening food allergy.” detected levels. To our knowledge, there have been no allergenic problems brought to the attention of the company manufacturing those products.” From Lab to Market Right now, “moving the needle” by reducing the allergens is what Currently, two groups are working to bring the hypoallergenic peanut Smotherman and Honeycutt wanted to see to continue moving forward. to market: North Carolina A & T and The Honeycutt Company. Researchers and others see a small potential market for hypoallergenic North Carolina A & T has given exclusive license of its patented peanuts in immunotherapy. “With medical supervision,” said Maleki, hypoallergenic process to Alrgn Bio, a spin-off of N.C. A & T and Xemerge “hypoallergenic peanuts could be administered in small doses over the that set up operations at Gateway University Research Park in Greensboro, course of treatment to build up a patient’s resistance to peanut allergies.” North Carolina around the same time. In a demonstration to industry officials as he announced the A Manufacturer’s Perspective formation of Alrgn Bio, Johnny Rodrigues, founder, said he could see “Before any new product would come into the fold, we need to ensure hypoallergenic peanuts becoming the new standard in the industry. there is sound science behind it,” said Michael Guanella, Skippy brand He believes the process will be attractive to businesses that make and manager, Hormel Foods. The idea must be thoroughly vetted and looked sell peanut products and will be easy to incorporate into the food at from all angles, and there must be a high degree of confidence in the preparation process. science behind the product. Rodrigues said, “We are seeking out industry partners—food “There also needs to be enough interest in the marketplace to justify processors and manufacturers—to establish this process as the industry bringing a new product to market,” he said. standard for peanuts and peanut-derived ingredients. We want to make To determine if consumers are interested in a hypoallergenic peanut sure everyone will benefit from this technology, so we are careful to pick product, Guanella pointed to the need for focus groups among people the right partners to make that happen. We’ll work together to deliver with a peanut allergy. “Potential consumers need to be asked questions safer peanut products to consumers as quickly as possible.” like, what is their sensitivity level to peanuts? Are they willing to expose When asked how he would ensure the hypoallergenic peanut is safe themselves, or their children, to a hypoallergenic peanut?” when only an extract had been tested, Rodriguez said, “We’re making a So the question remains, is there a market to manufacturers? safer peanut, that’s the target. We will always have testing going on. We’re Proponents of the hypoallergenic peanut say manufacturers would have working with others to do more testing and we will never stop that.” a market with schools and institutions as a way for these groups to offer The Honeycutt Company has a similar model to help bring a a potentially allergenic food (peanuts and peanut butter) with a reduced hypoallergenic peanut to market. risk of a severe reaction. “Our emphasis is not on becoming peanut butter manufacturers “I think it is still too early to tell, said Guanella. “The science has to be ourselves, but to find industry partners that can produce prototypes of solid and proven, and the consumer demand has to be there as well.” this product and do further testing themselves,” said Smotherman. “We

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More Mornings Start Brighter, Thanks to Peanut Butter The good ole peanut butter and jelly sandwich at noontime may be the quintessential American meal. Generations have grown up with PB&Js in their lunch boxes, on road trips with the family and as a great after-school snack. But as work and

Consider what recent research by the respected Nielsen organization shows:

• Consumers

still eat breakfast, but they just eat it differently. Many people are opting for fast and healthy options, and others substitute a regular meal with portable snacks. Even those who prefer a hot meal sometimes want something they can take on the run.

• More

than ever, consumers want to know where their food comes from and what’s in it. They want transparency in nutritional information.

• Protein,

while growing in popularity at all times of day, is also significant as an important breakfast element.1

life habits change and concerns about food allergies grow, the PB&J faces mounting challenges from a host of new alternatives that seek to replace this iconic food. Since its creation 15 years ago, the National Peanut Board has worked to stay ahead of emerging trends and issues like these. First, and perhaps most importantly, the Board works to bring balance and perspective to the food allergy discussion so that children can continue to enjoy their favorite meal at school. (See more at www. peanutallergyfacts.org.) Second, NPB builds awareness about the nutrition, versatility, portability and affordability that peanut butter offers. Third, the board is striving to drive consumption of peanut butter at new times of day. And one meal that appears to be the most promising is breakfast.

“Peanut butter already has so many of the benefits that a parent or consumer could want—particularly during this time of day,” said Sherry Coleman Collins, NPB’s registered dietitian and nutrition consultant. “We think there is tremendous opportunity to increase awareness about creative ways to add this much-loved food into the morning meal.”

Over the past three years, the Board has focused on several initiatives under the “Peanut Butter for Breakfast” umbrella. In addition to hammering home strong nutrition messages, the Board has reinforced other important benefits—and worked with others to create fun and easyto-make meal ideas that mirror the trends in breakfast eating. In 2014, the program started by integrating eye-catching Rise and Shine images on the Board’s Peanut Butter Fanatic Facebook page to engage those PB lovers who stay closely tuned to NPB ideas. A Better Breakfast Month Blog Tour engaged food, health and parenting bloggers in presenting their followers with creative morning ideas using peanut butter. Thirty-two sponsored posts generated some 13,000 interactions, reaching more than 1.6 million readers. Also during the year, the Board partnered with FitFluential to host a “PBforBreakfast” Twitter party. The one-hour program, targeting fitness professionals—who routinely recommend nutrition tips to their clients—generated 2,800 tweets and 23.3 million impressions. “Peanut butter is perfectly positioned to take advantage of morning meal trends,” Coleman Collins added. “It’s a long-term strategy for the Board—and one you’ll hear much more about—because it will continue to move more grower stock while, importantly, helping Americans eat better.” Breakfast: Still the Most Important Meal of the Day (2014, August 19). Retrieved November 26, 2014, from http://www.nielsen.com/us/ en/insights/news/2014/breakfast-still-the-most-important-mealof-the-day.html.

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Peanuts Have a Strong Presence in America’s Restaurants

Apr-Jun 14

Jan-Mar 14

Oct-Dec 13

Jul-Sep 13

Apr-Jun 13

Jan-Mar 13

Source: MenuMonitor, Technomic 2014 Base: Top 500 Restaurant Chains, Emerging Restaurant Chains & Top Independent Restaurant menus

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National Restaurant Association http://www.restaurant.org/News-Research/Research/Facts-at-a-Glance

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Oct-Dec 12

Jul-Sep 12

Apr-Jun 12

Oct-Dec 11

Jan-Jun 11

Jul-Dec 10

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Jul-Dec 09

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Jul-Dec 08

Texas alternate board member Peter Froese, Jr. and his daughter Adelheida. Froese brought along freshly dug peanuts and NPB served several dishes to highlight ideas to use peanut butter at breakfast: Peanut Butter & Honeycrisp Apple Quinoa, Strawberry Topped Peanut Butter Pancakes and Peanut Bird Nests; the result of an editors-only contest that A twist on classic oatmeal, Peanut Butter & Apple Breakfast Quinoa was benefited a local food bank. popular with IFEC attendees. Immersions are another way NPB impacts America’s menus, giving operators the opportunity to taste a variety of peanutinspired items for their menus. Recent restaurant items from NPB immersion attendees include: Houlihan’s Chicken Asian Chop Chop entrée salad with sautéed sesame-glazed chicken; Napa Salad with snow peas, roasted peanuts, red bell peppers, jicama, crispy NPB Texas alternate Peter Froese, Jr., and his daughter Adelheida (center), discussed peanut farming with food trade media editors at the annual conference of the International Foodservice Editorial Council in wontons, peanut-ginger dressing; Dallas. NPB’s Lauren Highfill Williams (far right) and Jewel Hazelton (far left) showcased peanut butter for breakfast items. Houlihan’s Chicken Lettuce Wraps To keep peanuts part of the conversation in this industry, appetizer with sweet and savory sesame-glazed chicken, carrots, National Peanut Board develops relationships with food trade scallions, crispy wontons and peanut ginger sauce; TGI Friday’s media to secure non-paid coverage of peanuts in influential Chocolate Peanut Pie dessert; and Destination Hotels’ Peanut magazines like Flavor and the Menu, On Campus Hospitality and Butter Banana Smoothie on the kids menu made with peanut Food Management. butter, banana, honey and milk. NPB’s long-term membership in the International Foodservice The history of these immersions and continued culinary Editorial Council (IFEC) outreach has helped 101 Percent Increase of Peanut Menu Mentions on America’s helps secure this contribute to the Menus Over the Past Six Years – Outpacing Almonds2 coverage. At IFEC’s presence of peanuts 967 937 934 925 922 annual conference in on America’s menus. 901 877 874 864 837 824 812 806 800 795 794 Dallas in November, Technomic Menu 764 760 756 738 698 675 684 NPB capitalized on the Monitor reports that 583 582 589 572 549 529 event’s location in a there has been a 101 486 468 453 451 436 peanut-growing state percent increase of with a sponsorship peanut dishes over the opportunity that past six years at the top allowed editors and 500 restaurant chains, other conference emerging chains and attendees to meet a top independent peanut farmer; NPB restaurants. Almond Peanut Jan-Jun 08

Americans spent 47 cents of their food dollar at restaurants to the tune of $683.4 billion in 2014.1 Food industry professionals are continuously looking for ways to keep diners interested in eating out, and peanuts and peanut products are a perfect way to do so. Culinary versatility, nutritional benefits, great taste, popularity with consumers and affordability make peanuts a natural fit for foodservice and packaged foods.

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Hot Nutrition & Food Trends for 2015 By Sherry Coleman Collins, MS, RDN, LD

Twenty fifteen is set to be a busy year for foodies and the food industry, including peanuts! Many prognosticators have been working on their list of hot trends. Here are some that are sure to provide exciting opportunities for promoting peanuts and peanut foods. Topping the list and a continuing hot trend is the focus on sustainability. Sustainability includes both an environmental focus, reducing chemical and water use, and supporting healthy economies. Who knows more about sustainability than farmers? This is the perfect story for America’s

a focus on artisan creations. Typically, this implies small-batch, family-made, and vintage recipes passed down from generation to generation. The term “local foods” is often a driver here too as people look for companies close to home, specializing in regional flavors. Many peanut foods already shine in this category, yet there is also opportunity for growth. In fact, the expectation is that larger manufacturers will be looking for ways to bring this trend to market in a bigger, broader way. The next two trends are in the flavor arena. America’s collective palate continues to change and evolve, seeking more exotic tastes to reflect the globalization of our world. Smoked flavors is a hot trend that food manufacturers have already been developing. In fact, Planters debuted a new smoked peanut (along with several other flavors) in summer 2014. Asian and global flavors (think African, Indian and South American) are also high on many lists of anticipated trends for 2015. Perfect for peanuts, since we like to say peanuts make the familiar exotic and the exotic familiar. Lastly, there’s expected to be an uptick in the focus toward attracting and capturing the attention and loyalty of the next generation of shoppers – gen Z. Generation Z includes those born between 1995 and now; the first of these consumers are just starting to really make food purchasing decisions for themselves. According to Phil Lempert, analyst for the grocery industry, in a piece he wrote for Huffington Post, “Exposed at a young age to more flavors and variety than previous generations, gen Z’s collective attitude toward food is simplicity and health.1” Delicious flavor, nutritional profile, and culinary versatility make peanuts a perfect food for this group of consumers. Peanuts truly are an incredible food. Able to meet the diverse tastes, interests, and goals of today’s consumers, they are sure to stand out in many of these coming fads. By keeping a pulse on trends, NPB’s team is ready to leverage what’s en vogue to keep peanuts top of mind for manufacturers, foodservice and nutrition professionals, and consumers alike.

NPB’s Registered Dietitian Sherry Coleman Collins was featured on Atlanta Plugged In as part of a promotion with Georgia Peanut Commission. (L-R) Former show host Parker Wallace and Coleman Collins.

peanut farmers to tell. As we dig into economics, farmers play an incredibly important part, with successful farms supporting multigenerational families, rural communities and whole state industries. There will also be an increased interest in the people behind the products. National Peanut Board is poised to help share the story of sustainability on behalf of its stakeholders. Likewise, the trend toward craft foods creates a great opportunity for peanuts. Farm and estate-label products are all the rage, with

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Lempert, P. (2014, November 26). Top Food Trends for 2015... Are You Ready? Retrieved December 12, 2014, from http://www.huffingtonpost.com/phil-lempert/top-food-trends-for-2015a_b_6225884.html

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Infographic Shows Positive ROI on Peanut Assessments DID YOU KNOW?

What results do your grower assessment dollars produce year

Every Dollar Invested Returns $8.87

after year? National Peanut Board set out to answer that question. In 2014, we sponsored the most comprehensive study ever

Advertising

Reputation management Enhances consumer confidence about the nutritional benefits of eating peanuts. Works with health professionals, food service and school leaders to educate and inform about goodness of peanuts, as well as best practices for managing peanut allergies. More than $10 million has been allocated to peanut allergy research, outreach and education since 2001.

Creates all domestic consumer and trade advertising—print, outdoor, digital, etc—to reinforce the benefits of peanuts and peanut butter and how they can be a natural part of everyday life.

conducted about the return on investment of peanut assessments. Dr. Harry Kaiser, an expert in economics at Cornell University who performed the analysis, concludes “each dollar invested in the Board’s checkoff program between 2007 and 2013 returned $8.87 to the peanut industry.” National Peanut Board will be sharing these good results throughout the year through media

Public Relations

Production Research Funding

Proactively shares the good news about peanuts with consumers, health professionals and other food influencers through social media and news outlets

Discover new ways to improve peanut seed quality, varieties and disease resistance, resulting in grower efficiencies, higher quality of crop and increased yields. More than $20 million has been allocated to production research since 2001.

outlets, at grower events and consumer trade shows nationwide.

Business Development Works with restaurateurs, retailers and chefs to create recipes and menu items, share cooking tips and promote peanuts and recipes in eating establishments and retail outlets. In a comprehensive 2014 study about the return on investments of checkoff programs funded by National Peanut Board, Dr. Harry Kaiser of Cornell University concluded that the return on investments for each program area between 2007 and 2013 was vastly greater than the cost of the program.

KEY POINTS 15% LESS

Had there been no promotion conducted by the Board from 20072013, peanut consumption would have averaged 15 percent less than it actually was.

ROIInfoGraphic6x9Final.indd 2

10.8% LESS

Had there not been any NPBsponsored production research over this period, peanut yield would have averaged 3,184 pounds per acre, or 10.8 percent less than it actually was.

BOTTOM LINE

Checkoff dollars have had a tremendous impact on peanut demand in the United States.

10/23/14 12:45 PM

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New Ads, Give Aways and Events Show Creativity of State Co-Promotions The National Peanut Board partners with state grower organizations by offering them scholarship money to do marketing and promotions locally.

Alabama Peanut Producers Association The Alabama Peanut Producers Association ran two full-page ads in the statewide publication, Neighbors. Neighbors magazine reaches 80,000 homes across the state and is distributed eight times a year.

Florida Peanut Producers The Florida Peanut Producers used their co-promotion money to create peanut snack bags with The Perfectly Powerful Peanut logo to pass out at promotional and educational events throughout the state.

Mississippi Peanut Growers Association In collaboration with the local radio program, Friday Night Under the Lights, Mississippi Peanut Growers Association promoted the nutritional benefits of peanuts along with The Perfectly Powerful Peanut slogan for 15 weeks during the show. Additionally, the promotion will run on their two-hour radio show that airs each week. The Mississippi Peanut Growers Association decided to use their co-promotion money this way to help stop the ban of peanuts in schools statewide. The radio show airs on eight stations and reaches 500,000 school students, 182 school districts and about one million viewers on their website.

Georgia Peanut Commission The Georgia Peanut Commission partnered with a local Atlanta CBS Affiliate to produce several cooking segments for the show, Atlanta Plugged In (photo page 9). NPB Dietitian Sherry Coleman Collins was invited to guest cohost with the anchor to share nutritious ways to incorporate peanuts and peanut butter into everyday life.

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Oklahoma Peanut Commission This year Oklahoma Peanut Commission tried something new with its co-promotion money. They included The Perfectly Powerful Peanut slogan on their peanut snack bags. These bags will be given to recipients participating in a blood drive conducted throughout the state by the Oklahoma Blood Institute.


Virginia-Carolina Peanut Promotions The Virginia-Carolina Peanut Promotions represents the South Carolina, North Carolina, and Virginia peanut growing areas. As a part of their co-promotion this year, they worked with Runner’s World magazine to feature The Perfectly Powerful Peanut advertising campaign in print and online. Runner’s World reaches 129,989 consumers and the web impressions reach over 500,000 hits a day. The demographic for this magazine ranges from 23 – 62 years of age. This magazine is known throughout the nation and many athletes purchase the magazine to seek information how to increase their performance.

and Marathon in Albuquerque in October. This two-day event provided NMPGA with a new venue and a fitness-minded audience; proving to be an effective combination for promoting peanuts in their state. The Duke City Marathon is the largest and longest-running marathon in New Mexico and is the only state qualifier for the Boston Marathon. More than 10,000 people from all 50 states and eight countries participated.

New Mexico Peanut Producers New Mexico Peanut Growers Association (NMPGA) and National Peanut Board teamed up to help sponsor the 2014 Big 5 Sporting Goods Duke City Health and Wellness Expo

Texas Peanut Producers Board

(L-R) NPB’s Cathy Johnson, Keegan Treadaway, Hampton Farms’ Mary Orozco, Board spouse Joanna Baker and NMSU’s Joleen Szaloy showcase peanuts at the New Mexico Peanut Growers Association co-promotion event.

The Texas Peanut Producers Board’s statewide co-promotion featured The Perfectly Powerful Peanut ads in Texas Power magazine. The ads ran in November and December. The magazine reaches 1.18 million subscribers across the state of Texas. The magazine’s primary audience is farmers and agribusiness leaders.

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National Peanut Board Welcomes Board Members and Alternates In December, the National Peanut Board inducted new members and alternates to its Board. They began their term on January 1. As they begin their terms, take a moment to get to know our new Board members. Ed White, Alabama, Reappointed Board Member White operates White Farms with his wife Bonnie and son Jason. White Farms grows runner peanuts in addition to cotton, corn and small grains. The Whites also have a hunting operation and a cattle operation. White said, “I consider it an honor that my fellow peanut farmers are willing to trust me to spend their check-off dollars wisely. I want help make sure their dollars, so hard-earned, benefit not only the growers, but also the entire peanut industry.”

Tom Corcoran, Alabama, Reappointed Alternate

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Corcoran owns and operates Liikatchka Plantation in Eufaula in partnership with his wife Denise, brother Walt Corcoran,

sister-in-law Kim Corcoran and nephew Liston Clark. They produce runner peanuts in addition to cotton, soybeans, corn and wheat. They also have a cow/calf operation. Corcoran said, “Serving on the National Peanut Board helps me stay informed about what’s going on in the industry. I like being able to contribute my ideas to help the peanut industry move in the right direction.”

Gregory Gill, Arkansas, Board Member Gill operates Greg Gill Farms in Walnut Ridge and has been engaged in peanut production most recently for four years. Gill previously grew peanuts with his father from 1968-1979. “I feel honored to have been selected for the National Peanut Board and I hope that I represent Arkansas well,” said Gill. “There’s a lot of potential for peanuts in Arkansas and I plan to learn what I can to help our state’s growers.” Gill grows runner peanuts, rice, corn and soybeans.

Gregory Baltz, Arkansas, Alternate Baltz operates Running Lake Farms near Pocahontas and has been growing peanuts for four years. He farms runner peanuts, rice, corn and soybeans. “There’s been great work done by predecessors to establish peanuts in Arkansas,” said Baltz. “I’m honored that Arkansas has been accepted as a major peanut-producing state and hope we can be a model for the industry.”

Jeffery Pittman, Florida, Board Member Pittman previously served two terms as Florida alternate on the National Peanut Board. Pittman is owner and operator of Jeffery C. & Ginger W. Pittman Farm near Bascom where he grows peanuts, cotton,


corn, soybeans, sunflowers, small grains, hay, and has additional acreage for cattle. Pittman said, “Due to the efforts of the National Peanut Board to specialize in promotion and research, it enables us to be a valuable tool for today’s peanut farmers.”

Joe Morgan, Mississippi, Board Member Morgan operates M&M Farms near Hattiesburg and has grown peanuts for nearly 25 years. He grows runner peanuts, corn and cotton. “Our entire operation is centered on peanuts,” said Morgan. “I’m honored to serve on the Board and to contribute something back for all that peanuts have done for us.”

Lonnie Fortner, Mississippi, Alternate Fortner operates Rock Lake Planting Company near Port Gibson and grows runner peanuts in addition to cotton, corn, wheat, soybeans and sesame. Fortner is a third-generation farmer and earned an ag economics degree from Mississippi State University. Fortner is glad to join the National Peanut Board. “It’s good to be involved on the frontline to ensure that the grower’s investment is going to the right place,” he said.

Dan Ward, North Carolina, Board Member Ward previously served two terms as the North Carolina alternate to the National Peanut Board. Ward grows Virginia-type peanuts along with corn and soybeans in Clarkton. Ward said, “I am excited about serving on the National Peanut Board and helping our research efforts continue to utilize grower dollars to get maximum benefits.”

Raymond Garner Jr., North Carolina, Alternate Garner is a fifthgeneration farmer in Halifax County and has been farming since 1992. As owner and operator of Garner Farms, near Roanoke Rapids, he grows peanuts, cotton, soybeans and wheat. Garner said, “The promotions projects of the National Peanut Board have done a lot to increase consumption of peanuts in the U.S. and I’m honored to be a part of that. It makes sense that we need to have a strong market for the crops we grow so peanut promotion is important for all of us.”

John Crumpler II, Virginia, Reappointed Board Member Crumpler and his wife, Terri, own and operate RCR Farms, Inc., in Suffolk. They grow peanuts, soybeans, cotton, corn and wheat. Crumpler said, “Serving on

the National Peanut Board is important, especially helping to make decisions about where our check-off dollars are utilized. It has been educational to be involved with the Board’s strong approach toward peanut allergy education and research. The production research we fund has helped on the farm with the development of new plant varieties that has resulted in increased yields.”

Paul Rogers III, Virginia, Reappointed Alternate With his father, Rogers farms about 150 acres of Virginia-type peanuts in addition to cotton, corn, soybeans, and wheat near Wakefield. Rogers said, “It has been enlightening for me to learn about all aspects of the peanut industry as an alternate on the Board. I have been amazed at how much the Board has accomplished with grower dollars, such as allergy awareness. The Board is blessed with great members and an outstanding staff and I look forward to doing my part in investing grower dollars wisely for the betterment of the peanut industry in the future.” For more information visit www. nationalpeanutboard.org/news-releases/.

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Exports Promising for Peanut Farmers By Stephanie Grunenfelder, American Peanut Council U.S. Exports

600000

In the past few years, exports of

Quantity by MT

peanuts and peanut products have been increasing steadily. In the calendar year 2013 (JanuaryDecember), there were record peanut exports; more than double

500000 400000

the previous five-year average at a volume of 509,000 shelled metric

300000

tons and a value of $824 million.

The American Peanut Council,

2013

2012

2011

2010

2009

0

sales have been growing since.

2008

first year was a little rough, export

2007

100000

2006

with all other origins. Though the

2005

to compete on the world market

200000

2004

program in 2002, U.S. peanuts began

2003

After the change in the quota

(APC), in partnership

with the National Peanut Board, promotes peanut exports on behalf of U.S. industry. APC receives funds to complement those the industry

200000

EU

150000

Canada

provides from USDA’s Market Access

Mexico

100000

Promotion and Foreign Market Development Programs. National Peanut Board members sit on the APC Export Board along with other industry members to oversee export promotions.

Japan

50000

China 0

The main export markets, where

2010

2011

2012

2013

90 percent of exports go in typical years, are Canada, Europe, Mexico

for aflatoxin allow U.S. peanuts to sell easily into the restrictive European

and Japan. U.S. peanuts have long been considered the best quality in

market. Though China was a big customer in 2013, they have yet to come

the world market, but now the U.S. is shaping up to become the world’s

into the market for 2014. Experts believe that it will only be a matter of

low-cost producer, making exports even more attractive. Strong controls

time before the U.S. is selling peanuts to China on a regular basis.

Five Years of Growth Inshell $35.5 million in 2008 $82.3 million in 2013

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Shelled $197.8 million in 2008 $415 million in 2013

Peanut Butter $53.3 million in 2008 $152.9 million in 2013

U.S. peanuts have long been considered the best quality in the world market, but now the U.S. is shaping up to become the world’s low-cost producer, making exports even more attractive.


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Financials NATIONAL PEANUT BOARD FY 15 Budget: November 1, 2014 - October 31, 2015 REVENUES: Budgeted Crop Assessment Prior Years Crop Overages Additional Crop Year 12 Revenue Interest Income - Prior Years

$7,500,000 1,388,270 15,466

Crop Assessments in excess of Budget FY 04 Amount from Reserve Late Fee Collections - Prior Crop Year Total Revenues

7,292 $8,911,028

EXPENSES: Domestic Promotions Export Promotions / Market Development Grower & Intra-Industry Communications Production Research Projects Genomics Funding Germplasm Collection Funding

$5,201,852 350,000 398,500 1,590,176 400,000 7,000

Other Expenses

182,000

Administrative

781,500

Total Expenses

Fiscal Year

$8,911,028

2014 Audited

USDA Approved Budget FY 14

$7,284,050

$6,035,000

INCOME: Assessments Prior Year Assessments in excess of Budget

239,473

From Reserves

2,400,000

Prior Year Interest Income & Late Fee Income

14,434

Interest Income

6,443

Other Income

1,715

Total Revenues

$ 7,292,208

$8,688,907

$4,079,112

$4,772,712

Export Promotion

349,585

350,000

Grower Communication

302,382

362,500

Production Research

130,406

1,725,695

EXPENDITURES: Domestic Promotion

Genomic Research

400,000

Germplasm Funding 626,440

822,500

Other

179,932

248,500

$5,667,857

$8,688,907

Total Expenditures Dedicated Reserve balance at 10/31/14 totaled $1,400,000.

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7,000

Administrative


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