Positioning Halal Values on the Retail Shelf

Prepared for the World Halal Forum 2011 Kuala Lumpur Conference Centre

4-5 April 2011 – Kuala Lumpur, Malaysia

Zahed Amanullah Director, American Halal Corporation

Managing Director, Halalfire

Currently in 500+ stores in the United States, planned for 4000+ in 2011

American Halal is a halal food manufacturer based in Stamford, CT

Who we are

Saffron Road branded products available in the US since September 2010

PART 1:

A broader vision of halal

The Western Muslim demographic growing in numbers and affluence

Greater demand for transparency in halal standards and production

Greater connection between consumers, producers through media and technology

Halal product basics

Organic/natural foods: No additives or preservatives, minimal processing

Social responsibility/fair trade: Fair trade, workers rights, charitable giving

Environmentally friendly/green values: Low carbon footprint, energy efficiency

Values-based products

New halal parameters

• A “faith-based” approach that goes beyond the criteria for religious slaughter (unlike kosher)

• Emphasis on restoring sacredness and nurturing spiritual connectiveness with food

• Emotionally connecting with Muslim and non-Muslim consumers alike with food and culture

• Establish “tayeeb” values as a measure of quality assurance and aspiration – a “higher standard”

A case for common values

• Make the case that social responsibility and sharia business ethics consist of shared values

• Justice: Economic and social justice to communities and society (diversity, empowerment, transparency)

• Equity: To stakeholders (employees, communities, globally, and shareholders), fair wages, healthcare

• Responsibility: To the environment, employees, consumers, and society at large

What halal consumers want R

esp

on

den

ts

Survey of 1,000 halal consumers in the United States through zabihah.com

Much more brand conscious (70%) and much less price sensitive

Over 80% want to buy brands that support their Muslim or cultural identity

The new Muslim consumer*

75% want brands to make them feel part of a wider community, not a marginal one

* 2008 to 2010 Market Studies by J W Thompson and Ogilvy Noor

Harmonized markets

• Second/third generation American Muslims more sophisticated, 100% shop at US supermarkets

• American Muslim consumers are 67% more educated and affluent than average

• Top themes include ethical values (sourcing), social justice, animal welfare, health, fair trade practices

• These trends mirror high-value product market trends elsewhere that can be appropriated

PART 2:

Designing our product

Zabihah slaughtered by hand with transparent and verifiable standards

All natural or certified organic with no additives, preservatives, hormones

Animals humanely raised in a safe, clean, and comfortable environment

Clarifying tayeeb values

Sustainably and locally farmed, raised, or transported ingredients

100% vegetarian animal feed, with no hormones, antibiotics, or rendering

Be a socially conscious company, fair to employees and charitable to community

Clarifying tayeeb values

Participate in the Non-GMO Project, which opposes genetic modification

Strive to adopt Temple Grandin’s pioneering animal welfare philosophy

Commit to being the only halal certified brand to meet HFAC guidelines

A broad ethical approach

Mainstream retailers have high safety, quality, and provenance standards

Identify retailers who share values to become partners, not just resellers

Many mainstream retailers eager to work with brands that dignify Muslims

The retail “sweet spot”

Specialist ethnic cuisine Quality packaging

Greater halal standards Lifestyle branding

Targeted marketing Higher retail pricing

Organic/Natural ingredients Social responsibility

Specialist/natural retail Locally sourced/eco-friendly

Certified humane Higher retail pricing

Basic ethnic cuisine Corner/ethnic shops

No branding/marketing Shipped long distance

Minimal halal standards Low retail pricing

Basic regional cuisine Mass market retail More processed

Less mfr. transparency Minimal branding

Low retail pricing

The retail “sweet spot”

Mainstream products Halal products

Good v

alu

e

Hig

h v

alu

e

Identify high value retail partners open to new products and customers

Design product to appeal to unmet needs of Western Muslim consumers

Brand product to appeal to broader market (name, appearance, values)

Our strategy

PART 3:

Selling the vision

American Halal offers four halal SKUs under Saffron Road brand in 2010

Exclusive contract offered for sale of Saffron Road in Whole Foods Markets

Halalfire hired to promote Saffron Road and produce market data/analysis

Our action plan

Product launch

Promotional page and advertising on zabihah.com for Saffron Road

Offer voucher for free Saffron Road entree during the month of Ramadan

Collect 1,000 completed surveys in exchange for free vouchers

Begin product promotions

Digital voucher delivery

Geo-locate 200+ Whole Foods Market stores in zabihah.com database

Measure search activity within 10 miles of each store with SKUs (±1,000/hour)

Identify “influencers” within WFM store areas for targeted promotions

Marketing infrastructure

Sample mapping of searches for Halal services from the iPhone (15% of all zabihah.com traffic) in an average day

Geolocated demand

Map sales data, queries, promotion responses to determine efficacy

Analyse survey results, product feedback to identify satisfaction, consumer trends

Begin Phase Two campaigns in sales regions that require attention

Analysing results

Social media and PR

Facebook group for allows direct communication with customers

Twitter feed for Saffron Road keeps fans informed of news and updates

Traditional PR complements marketing and social media to maximise exposure

Trade recognition

Natural Products Expo – One of the few products with antibiotic-free meat

Fancy Food Show – Voted one of top 10 hottest products to watch in 2011

Supermarket Guru – Declares Saffron Road a “hit” as halal goes mainstream

Proof of concept

• First SKUs approved by Whole Foods Market by pre-production startup in their 30-year history

• WFM is very pleased with over 10,000 halal consumers drawn into their stores

• Sales lift of 100% on promotion, WFM authorised 300% increase in shelf space and SKUs

• Brand value established with affluent American Muslims, Islamic scholars, and non-Muslim foodies

A bright future for halal

Thank you