Watermelon Board report sees ‘strong relationship’ between promotions and revenue
National Watermelon Promotion Board, Winter Springs, Fla., has released the findings of a new study, conducted along with research partner Armada Corporate Intelligence Inc., which it says demonstrates a “significant positive impact of the NWPB's activities” on the demand for watermelon.
The study, says NWPB, shows that investment in NWPB's promotional activities results in a “strong return on investment.” Additional findings of the study included the NWPB’s impact on the retail and fob price of watermelon from 2017-2021 and its impact on the general economy, according to a release.
"The NWPB is proud to continue our work in promoting watermelon and supporting the watermelon industry," said Mark Arney, executive director at the NWPB.
The study, which developed a model explaining the retail demand for watermelon, found that funding the NWPB's activities at actual levels versus the lowest monthly level resulted in a 4.5% increase in the retail price of watermelon.
NWPB further reports that retail revenues rose 31.6% from 2017 to 2021, and during that same time span, expenditures remained steady.
The study also found that the NWPB's promotional activities have a positive impact on farm prices. On average, there is a $0.012 per pound difference in farm price when the NWPB's expenditures are set to their historically lowest level versus what was experienced using the actual expenditures. This difference resulted in a $225.19 million increase in farm sales, the release said.
Additionally, the study explored potentially increased employment in the industry by 4,234 jobs, based on incremental grower income and the median fruit and vegetable worker salary, due to NWPB promotional activity.
"These findings reinforce the importance of our efforts and provide a compelling case for amplified investment in the NWPB's activities,” said Christian Murillo, NWPB president.
The full report, “An Economic Analysis of Market Impacts of the National Watermelon Promotion Board: 2017-2021” is available at the industry section of NWPB’s website.
