Reese's Peanut Buttercups Product Autopsy Final Presentation
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TRICK OR TREAT? Of Reese’s Buttercups and Plumpy’nut
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Transcript of Reese's Peanut Buttercups Product Autopsy Final Presentation
TRICK OR TREAT?Of Reese’s Buttercups and Plumpy’nut
AGENDA
➤ Reese’s Autopsy
➤ Reese’s Supply Chain
➤ USA and Ghana in Context
➤ Peanuts in the US
➤ Peanuts in Ghana
➤ Conclusion
AUTOPSY
BILL OF MATERIALS
AND SUPPLY CHAIN
BILL OF MATERIALS
56.70
21.00
18.71
1.00
0.18
1.00
1.00
2.18
Reese'sComprehensiveBreakdownofBOM
MilkChocolate* Peanuts Sugar Dextrose Salt TBHQ CitricAcid
SUPPLY CHAIN
Georgia & Virginia Texas Belt
California
Ghana
Hershey’s Factory (Hershey’s, PA)
USA AND GHANA IN CONTEXT
USA GHANA➤ Population: 25.9 Million
➤ GDP Per Capita: USD 1,401
➤ Caloric Intake: 2,850 Kcal
➤ Population: 318.9 Million
➤ GDP Per Capita: USD 55,904
➤ Caloric Intake: 3,770 Kcal
➤ Massive Micronutrient deficiencies in the US.
➤ Lots of hidden hunger in the US, with more than half of American children with less than enough levels of Vitamins D and E.
➤ One in 13 Ghanaian children dies before his or her fifth birthday.
➤ 8 in 10 children under 5 years of age and 3 in 10 women suffer some form of undernutrition.
NUTRITION NUTRITION
PEANUTS IN THE US
A 4-SENTENCE HISTORY OF PEANUTS
➤ Native to the Western Hemisphere.
➤ Originated in South America and spread throughout the New World through Spanish explorers
➤ Traders were responsible for spreading peanuts to Asia and Africa.
➤ Made its way back to North America on sailing ships in the 1700’s.
CANDY
➤ 10 states grow 99% of all peanuts in the US
➤ Biggest is Georgia (42%), followed by Texas (24%)
➤ 300 Uses of the Peanut (George Washington Carver)
➤ Mostly used for candy, other food products.
PEANUTS IN GHANA
Plumpy’Nut
THE ECONOMICS OF PEANUTS IN GHANA
“Theagro-ecologicalzonesinwhichpeanutsaregrownareprimarilyclassi7iedasGuineaSavannahandSudanSavannahareas,locatedprimarilyintheNorthern,UpperEastandUpperWestadministrativeregionsofGhana.”
—ComprehensiveAssessmentofthePeanutValueChainforNutritionImprovementinGhana
Source:AdaptedfromdatareportedthroughEsoko.comforvariousdatesinAugust2013
VERY DIFFERENT ECONOMIC STORY
CONTRADICTING STORIES…
WHAT IS HAPPENING
➤ Information inconsistencies
➤ Great abuse of market sellers in the production areas
➤ Secondary markets within Ghana (People in the North would have to sell to the South, who would sell to Hershey’s)
➤ Esoko research
IT GETS WORSE…
PLUMPY’NUT IN GHANA
➤ Massive malnutrition
➤ Peanut-based Ready-To-Use Therapeutic Food (RUTF)
➤ Ingredients: peanut butter, sugar, oil, dried milk and a mineral-vitamin complex (CMV)
➤ Very useful, prevalence of peanut allergies in target population is low
➤ Way better than F100 milk supplements
PLUMPY’NUT EXPOSÉ
➤ BUT, patent issues with regards to Nutriset—PlumpyNut’s producers— patents.
➤ Produced only in France.
➤ 90% of all UNICEF RUTF purchases.
➤ Exposed in a New York Times article in 2010.
➤ Eventually allowed some other producers as well.
CONCLUSION
SUMMARY AND NEXT STEPS
➤ PLUMPY’NUT—Cycle of malnutrition and poverty in Ghana.
➤ Peanut is candy in the US, food for survival in Ghana.
➤ Hidden hunger in the US, whereas severe malnutrition in Ghana.
➤ INFORMATION INCONSISTENCIES—The peanut producers suffer the most of in the supply chain.
➤ Massive challenges for increasing the quality of life of peanut farmers in Ghana.
➤ There is a lot of unequal growth in Ghana due to poor economic policies.
➤ This translates to school absenteeism, as well as other negative HDI factors.
Candy here? Survival there.
TRICK OR TREAT?Of Reese’s Buttercups and Plumpy’nut
