This document summarizes insights from a study on consumer perceptions of macadamias in Australia. It finds that consumers see macadamias as a symbol of quality, luxury, and premiumness. They associate macadamias with signs of naturalness and perceive products containing macadamias to have a higher quality feel. However, the availability of macadamia products is limited compared to consumer demand. Consumers expressed interest in seeing macadamias incorporated into more product categories beyond chocolate, biscuits, and ice cream. This represents an opportunity for growth in new macadamia-containing products.

1. Project Forrest – Understanding the macadamia consumer from a premium perspective - Australia
Prepared by: Brent Wallace
CEO Galileo Kaleidoscope
16 October 2014

2. Premium perceptions of Macadamias …

3. Brands that demonstrate clear expressions of nature –
simplicity, purity can move beyond a ‘sustainability’
message
BROADLY TODAY CONSUMERS SEEK PROTECTION IN A WORLD OF
UNCERTAINTY…..
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In an increasingly hectic and uncertain
world consumers look more for sanctuary
and safety.
COCOONING
More creative
cooking at home
More focus on home
renovations
INVESTING IN THE HOME
Brands that promise a moment of everyday luxury
offer a small indulgence to be enjoyed within the
sanctuary of home
As a reaction to omnipresent technology,
consumers look for signs of naturalness in
their lives
NATURALNESS
SIGNS OF NATURE
Moving away from
‘manmade’
Back to nature –
clothing, food
OPPORTUNITY
PROTECTION

4. DEMOGRAPHIC SHIFTS ARE IMPACTING ON THE SNACKING
CATEGORY: AN AGING POPULATION LOOKS FOR EVERYDAY LUXURIES
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Demonstrating ‘everyday luxury’ becomes a powerful way to engage this aging population with a compelling
proposition that taps into this reward and indulge attitude.
• As we grow older as a Nation (with more than 1000
people over the age of 100 in Victoria alone, compared
with 100 in 1974), tour tastes and priorities are
changing
• After years of family life and sacrifice - older consumers
focus more on everyday luxuries as a way of rewarding
themselves
• Choosing a healthy and somewhat richer snacking nut‘
is one such way to enjoy some of life’s little luxuries
everyday
• This choice becomes a part of a broader self-centric
approach to life, finding ways to enjoy life in autumn
years
Macadamias play to this trend –
offering an aging population an
‘everyday luxury’
I’ve worked all my life, I’ve not
got that long left – I just want bit
of luxury now…”

5. MACADAMIAS PROVIDE A TASTE OF THE LUXURIOUS LIFE WITH
THE SIMPLICITY OF A DAILY PURCHASE
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EVERYDAY EVERYDAY LUXURY HIGH END LUXURY

6. MACADAMIAS ARE IN A GOOD POSITION TO DELIVER ON QUALITY
AND PREMIUMNESS
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“Macadamias are a premium product and should be treated and eaten that way.” Light, Male
PRODUCT
QUALITY
SOURCE
MATERIAL
HOW
MADE
We spoke to experts to determine what makes up a premium or quality product:
Macadamia
delivers this via
product
attributes and
taste
Macadamia
delivers this via
the Australian
heritage (known
in Australia)
Macadamia
delivers this via the
reasons to believe
of harvesting and
carful farming
= PREMIUM

7. MACADAMIAS ADD A QUALITY FEELING TO WHATEVER PRODUCT
THEY ARE IN
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Quality is delivered by many of the product
attributes itself, and how that product is brought to
market
“Pretty much any cake or biscuit, ice cream, maybe a
macadamia pesto instead of pine nuts, maybe those cheese
logs- they could all be made better quality with macadamias”
“Adding macadamias to food is a great idea and adds quality.
You can't say that with all of the other nuts”
“They are so much more expensive than other nuts– so I think
that means they are better quality”
“Quality. Macadamia are generally an expensive option to add
to a product when I see a product that has macadamias in it I
generally think it is a higher quality product”
QUALITY

8. MACADAMIAS ADD A PREMIUM FEEL TO ANYTHING– THEY ARE
SEEN AS WELL ABOVE AVERAGE
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“I think macadamias add a little bit of 'special flair' to
supermarket products. I think it would also go well with
chicken, as a crust”
“Macadamias are still a relatively rare nut products (peanuts
are everywhere) so when I see them to buy or in a food product
I think premium”
“Products that I see as 'little affordable luxuries' - gourmet ice-cream
like Connoisseur, magnums. Also single serve dessert
treats, such as a sticky date pudding, or crème caramel”
“I think including macadamias in other products would add a
premium feel. Eg. Macadamia cookies seem more luxurious
than plain or choc-chip ones”
Macadamias are above average, and provide
something a little bit extra and associated with
luxury– premium.
“I consider them premium because of their price. Peanuts are
cheap and almonds are reasonably priced. I think macadamias
are in a premium class”
PREMIUMNESS

9. BECAUSE OF QUALITY AND PREMIUMNESS, PEOPLE EXPECT TO PAY
MORE FOR PRODUCT WITH MACS
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“I think it raises the perception of the quality of the product
based on the fact that they are more expensive.. Maybe about
10%
“I would expect a small price increase. About 5% or less would
be within my perceived price… because they are grown
naturally and need to be harvested”
“Slightly higher because macadamias aren’t cheap… I wouldn’t
expect it to be more than 3-5%”
“Definitely add to the price. You’re adding an expensive and
quality product to an existing product, simple logic says the
price will rise… maybe 10-20%”
Only about ½ of the participants said they would expect
to pay more for macadamias, and that did not correlate
with loyal vs. light as much as with those who know the
prices of varied nuts
It should be noted that much of the quality perceptions
of macs comes mostly from the high price
This price increase expectation is incumbent on price first, but secondly on quality and premium perceptions. This
means holding up the health and provenance support points is VERY important to the future of Australian
Macadamias, especially if a lower-priced challenger comes to market.

10. CONSUMERS WANT TO SEE MACADAMIAS IN MORE PRODUCTS
THAN THEY CURRENTLY DO
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DESIRE FOR INDULGENT
MACADAMIA PRODUCTS,
FEEL MORE LUXURIOUS
• Energy bars
• Snack mixes
• Museli
• Biscuits
• Take-home desserts
• Chocolate bricks
• Chocolate biscuits
• Cakes and muffins
• Beyond chocolate, ice cream, and
biscuits– people are looking for more
macs
OPPORTUNITY FOR MACS TO
PROVIDE MORE HEALTH
CREDENTIALS / BENEFITS
DESIRE for
macadamia products
outstrips SUPPLY
“I haven't seen too many new things with macadamias. I have
seen chocolate coated macadamias and some very large cookies
with macadamias and white chocolate. I don't think there have
been too many new products on the market recently
incorporating macadamias. Pity!” – LIGHT user
HANKERING TO CHANGE UP THE
CURRENT OFFERINGS OF MANY
PRODUCTS

11. CONSUMERS WANT TO SEE MACADAMIAS IN MORE PRODUCTS
THAN THEY CURRENTLY DO
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Top of mind for many when thinking about
more existing macadamia products
Connoisseur- a hero brand, considered premium for
macadamia NPD
ICE CREAM
First association for many, and closely linked
with cooking and baking at home
Organic, Indulgent
BAKERY
CONFECTIONARY - PREMIUM CEREALS – HEALTH & ORGANIC OPPORTUNITY
Opportunity to partner with established high end brands which are affordable, and not at too high a price point.
(Some of the above are consumer-generated). Opportunity to tap into the macadamia moment, which was an
occasion enjoyed with alcohol for many. Although outside the 4 categories mentioned, alcoholic beverages were
an integral part of the macadamia moment for many.