FDOC Promotion of OJ Benefits Growers

Tacy CalliesMarketing, Orange Juice

FDOC

The Florida Department of Citrus (FDOC) e-commerce campaign to drive sales of 100 percent Florida orange juice (OJ) is nearing the halfway mark and continues to deliver strong results.

As of Dec. 18, the e-commerce campaign reached 150 million impressions and $4.2 million in attributed sales of 100 percent OJ with a return on advertising spend of $5.45. Additionally, the FDOC has launched a new partnership with Kroger that exceeded expectations with $228,000 in attributed sales in its first week.

Lisa House, the director of the Florida Agricultural Market Research Center and professor at the University of Florida (UF), gave a presentation during a recent webinar discussing the benefits from the FDOC generic promotion on the demand for OJ and returns to Florida producers.

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House estimates the return on investment (ROI) of FDOC promotions to Florida producers to be between $11.27 and $12.46 for every dollar spent in 2019–20.

It is no secret that the COVID-19 pandemic had a significantly positive impact on consumer behavior, influencing the demand for 100 percent OJ for its immunity-boosting properties. House says that the models used to track sales incorporated independent variables such as the number of cases diagnosed and timing of the outbreak to account for those changes in order to deliver a true reflection of the impact of FDOC marketing programs.

House and her team of experts used both Nielsen sales data and the UF/FDOC Household OJ Tracker to discover the range of ROI. Each model displayed tremendously different estimated retail sales numbers, which House believes can be attributed to the tracker picking up on OJ consumption beyond retail. Nevertheless, House points out the major difference in retail sales with and without promotion.

When moving the consumer awareness of OJ promotion to zero, sales volume dropped significantly. This difference, which is estimated at 11 percent or 86 million gallons of OJ in the tracker, shows that promotions have a significant impact on sales. Comparatively, the Nielsen retail data shows a similar drop, confirming overall accuracy.

To view the webinar, click here.

This article was written by Ashley Robinson, AgNet Media communications intern in Gainesville, Florida.

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