Apple Juice Nate Wolfe | Bo Renner. Category Snapshot TOTAL APPLE JUICE (JC,DRK-CAN,BTL) OZ. Total...

Apple JuiceNate Wolfe | Bo Renner

Category Snapshot

TOTAL APPLE JUICE (JC,DRK-CAN,BTL) OZ. Total Consumption BehaviorScape Framework

LifeStyle

BehaviorStage Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living

Total

Start-Up FamiliesHHs with Young Children Only < 6 218 226 265 220 253 261 242

Small Scale FamiliesSmall HHs with Older Children 6+ 126 103 117 159 115 84 113

Younger Bustling FamiliesLarge HHs with Children (6+), HOH <40 249 220 236 173 241 216 221

Older Bustling FamiliesLarge HHs with Children (6+), HOH 40+ 210 197 177 160 166 145 177

Young TransitionalsAny size HHs, No Children, < 35 77 71 64 68 66 87 72

Independent Singles1 person HHs, No Children, 35-64 44 31 45 48 39 30 40

Senior Singles1 person HHs, No Children, 65+ 51 40 31 38 29 29 34

Established Couples2+ person HHs, No Children, 35-54 73 66 76 98 71 58 72

Empty Nest Couples2+ person HHs, No Children, 55-64 76 70 61 86 69 61 68

Senior Couples2+ person HHs, No Children, 65+ 65 67 55 76 68 57 63

Total 103 109 102 105 97 89 100

Demographic VariablesMusselman's Juicy Juice Langer's Minute Maid Private Label

Race of Head of Household % Volume Index % Volume Index % Volume Index % Volume Index % Volume Index

White 54.5% 79 59.7% 86 60.1% 87 65.1% 94 61.3% 89

Black 15.0% 125 12.9% 108 15.9% 133 11.0% 92 13.1% 109

Hispanic 22.9% 185 20.4% 164 15.3% 123 16.4% 132 19.0% 154

Asian 4.9% 115 4.8% 111 5.0% 117 5.7% 132 4.3% 100

Other 2.7% 126 2.3% 107 3.8% 173 1.9% 87 2.3% 105

Number of Persons

1 Person 12.5% 46 5.8% 21 9.4% 35 9.6% 36 9.6% 35

2 Persons 22.7% 70 16.4% 51 21.3% 66 18.5% 57 20.9% 65

3 Persons 18.7% 116 22.9% 142 26.8% 166 22.9% 142 19.8% 122

4 Persons 22.6% 171 27.1% 205 20.0% 152 22.6% 171 25.2% 191

5+ Persons 23.5% 211 27.8% 250 22.5% 202 26.4% 238 24.5% 220

Household Income

Under $10,000 5.5% 70 4.9% 62 13.3% 168 5.3% 66 4.8% 60

$10,000 - $19,999 6.5% 56 9.9% 85 12.1% 104 5.7% 49 10.4% 90

$20,000 - $29,999 8.8% 78 11.4% 101 9.7% 85 6.5% 57 9.9% 87

$30,000 - $39,999 8.5% 81 10.4% 99 9.5% 90 8.0% 76 9.2% 87

$40,000 - $49,999 9.8% 105 8.0% 87 10.0% 108 8.7% 93 10.3% 111

$50,000 - $74,999 20.1% 111 22.1% 122 22.7% 125 20.9% 115 22.0% 121

$75,000 - $99,999 13.7% 117 12.9% 109 9.6% 82 14.3% 122 13.1% 112

$100,000 - $149,999 14.7% 128 12.5% 109 8.1% 71 17.9% 156 11.9% 105

$150,000 or More 12.4% 154 7.9% 98 4.9% 61 13.0% 161 8.4% 104

Category Role

• Theory: Families, and in particular, upper-middle class, with children tend to be the most consistent consumers of apple juice.

• National Sales: $562 million – middle range

Category Role

Why Apple Juice?

• High number of different product offerings at multiple different locations.

• High competition among private label brands against traditional, well-established brands.

• Influx of various types of different juices to compete against the industry all together. E.g. Strawberry-Pineapple Juice, Kiwi-Melon Juice, etc.

Stores Audited

• Walmart – MLK

• Walmart – Mall

• Walmart Neighborhood – Weddington

• Harps – College

• Marvins

• Walgreens – W. MLK

• Walgreens – Township

• Walgreens – College

• Flash Mart – MLK

• Kum & Go - MLK

Retailers Audited

• Walmart on College had the largest assortment with 33% of SKUs available.

• Locations most popular among families carried the largest selection.

The Suppliers

• Coca Cola – Minute Maid

• Mott’s

• Nestle – Juicy Juice

• Musselman’s

• Walmart – Great Value

• Old Orchard Brands

The Suppliers

• Old Orchard – most dominant with six SKU’s at five different stores.

• Juicy Juice & Pepsi’s Oceanspray – very limited selection and higher price.

Gross Margin by Store and Manufacturer

Determining Gross Margins

• Minute Maid, on average, has the highest cost among major manufacturers, with $.10/ounce.

• Always Save, on average, had the lowest cost with $.015/ounce.

• The estimated private label cost per ounce is approximately $.02/ounce.

• There were slight adjustments made on differentiating between the major manufacturer and private label price per unit.

Circular Trade Area – Fayetteville

DemographyHarps 124 Marvins 220 Wal Mart 359 Wal Mart 144% HHs HHs Index % HHs HHs Index % HHs HHs Index % HHs HHs Index

Race of Head of Household White 80.2% 116 83.2% 121 76.8% 111 77.8% 113 Black 7.0% 58 6.1% 51 4.9% 41 7.9% 66 Hispanic 4.8% 38 4.0% 32 11.7% 94 5.1% 41 Asian 4.6% 107 3.1% 74 3.7% 87 5.3% 123 Other 3.5% 154 3.5% 156 2.9% 128 4.0% 178Number of Persons 1 Person 45.2% 167 42.3% 156 35.8% 132 48.0% 177 2 Persons 32.0% 99 33.1% 102 31.3% 97 31.1% 96 3 Persons 12.6% 78 12.8% 79 14.3% 89 11.4% 70 4 Persons 6.4% 48 8.1% 62 10.1% 77 6.3% 48 5+ Persons 3.8% 34 3.7% 33 8.4% 76 3.2% 29Household Income Under $10,000 22.5% 293 20.5% 268 12.5% 163 25.9% 339 $10,000 - $19,999 21.4% 191 20.1% 180 14.6% 131 23.4% 209 $20,000 - $29,999 12.8% 118 12.9% 118 13.3% 122 14.2% 130 $30,000 - $39,999 12.2% 121 12.0% 119 16.0% 158 11.9% 118 $40,000 - $49,999 7.1% 79 7.9% 88 8.0% 89 7.5% 84 $50,000 - $74,999 9.6% 53 9.2% 52 11.9% 66 8.1% 45 $75,000 - $99,999 5.3% 44 5.4% 46 7.7% 65 3.2% 27 $100,000 - $149,999 6.6% 54 7.1% 58 9.8% 80 3.9% 32 $150,000 or More 2.6% 29 4.8% 53 6.3% 70 1.9% 21

Circular Trade Area – Fayetteville

Age of Head of Household Age 18 - 24 23.0% 547 21.4% 508 12.3% 291 27.4% 651 Age 25 - 34 31.6% 210 25.3% 167 25.0% 166 29.7% 197 Age 35 - 44 15.8% 91 14.3% 82 18.0% 104 13.8% 80 Age 45 - 54 10.6% 53 12.7% 63 14.8% 74 10.2% 51 Age 55 - 64 9.9% 51 13.1% 68 13.8% 71 9.8% 51 Age 65 - 74 5.0% 38 7.5% 57 8.1% 61 5.1% 39 Age 75 or More 4.0% 37 5.8% 54 8.1% 75 3.9% 37Age and Presence of Children

Age < 6 5.9% 80 5.1% 69 8.0% 108 5.2% 71 Age 6 - 17 7.8% 42 9.6% 52 15.8% 85 8.1% 44 Age < 6 & 6 - 17 4.6% 70 4.0% 61 6.6% 101 3.0% 46 No Children 81.7% 121 81.3% 120 69.6% 103 83.6% 124Housing Tenure Own 25.2% 39 30.6% 47 42.3% 65 17.4% 27 Rent 74.8% 214 69.4% 198 57.7% 165 82.6% 236Education of Head of Household

Not a High School Graduate

7.0% 54 8.7% 67 13.3% 102 9.1% 70

High School Graduate 16.0% 63 17.4% 68 21.4% 84 18.3% 72 Some College 39.1% 136 33.1% 115 29.0% 101 40.5% 141 College Graduate 21.3% 112 22.4% 118 20.8% 109 18.0% 95 Post College Degree 16.6% 121 18.4% 134 15.5% 112 14.1% 103

52 WEEKS ENDING 12/29/07

ITEM $ (000) DOLLAR SHARE ITEM BUYERS (000)

ITEM PENETRATION

ITEM $ PER ITEM BUYER

ITEM TRIPS PER ITEM BUYER

ITEM $ PER ITEM TRIP

ITEM UNITS PER ITEM TRIP

N=RAW BUYERS PURCHASE CYCLE (IN ELAPSED

DAYS)

% REPEAT BUYERS (% 2+ TIME BUYERS)

LOYALTY (SHARE OF $ REQ.)

% ITEM $ ON DEAL

% DOLLARS WITH MANUFACTURER

COUPON

JUICY JUICE - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

NA NA NA NA NA NA NA NA NA NA NA NA NA NA

WEST SOUTH CENTRAL


LANGERS - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

10,818.7 1.8 2,345.2 2.0 4.6 1.6 2.9 1.6 1,151.0 56.5 25.7 21.1 39.6 1.9

WEST SOUTH CENTRAL

787.8 1.4 229.7 1.8 3.4 1.4 2.5 1.7 118.0 59.8 19.0 16.3 39.3 3.2

MARTINELLI'S GOLD MEDAL - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

13,726.5 2.2 786.7 0.7 17.5 2.1 8.2 1.2 374.0 41.8 35.9 58.6 3.3 0.0

WEST SOUTH CENTRAL


MINUTE MAID - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

27,839.5 4.5 4,383.8 3.8 6.4 1.8 3.5 1.4 2,136.0 49.0 28.8 30.7 20.5 3.4

WEST SOUTH CENTRAL

2,883.6 5.1 503.8 3.9 5.7 1.8 3.1 1.2 272.0 49.4 25.9 34.2 14.0 4.7

MOTT'S - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

86,828.3 14.1 11,391.0 9.8 7.6 2.3 3.4 1.5 5,606.0 49.0 39.4 38.2 26.4 2.4

WEST SOUTH CENTRAL

5,315.7 9.3 996.6 7.7 5.3 1.9 2.9 1.4 574.0 47.3 37.0 32.1 17.4 2.7

MOTT'S ORGANICS - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

659.6 0.1 137.9 0.1 4.8 1.7 2.8 1.4 82.0 42.7 27.5 31.2 6.8 6.6

WEST SOUTH CENTRAL


MUSSELMAN'S - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

2,366.6 0.4 479.6 0.4 4.9 1.6 3.0 1.4 301.0 47.9 21.6 23.0 30.7 0.1

WEST SOUTH CENTRAL


NESTLE JUICY JUICE - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

43,445.1 7.1 5,811.5 5.0 7.5 2.2 3.4 1.4 2,753.0 48.1 40.2 37.0 16.2 3.8

WEST SOUTH CENTRAL

2,400.3 4.2 419.0 3.2 5.7 1.9 3.0 1.4 220.0 45.2 41.5 32.1 15.2 5.9

OLD ORCHARD - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

20,272.3 3.3 4,384.3 3.8 4.6 1.9 2.4 1.6 2,454.0 50.3 32.2 24.1 29.7 0.9

WEST SOUTH CENTRAL

2,294.3 4.0 506.6 3.9 4.5 2.1 2.1 1.5 279.0 42.3 35.8 28.5 19.0 0.7

OLD ORCHARD ORGANICS - FRUIT JUICE - APPLE - SHELF STBL

TOTAL U.S.

951.0 0.2 138.1 0.1 6.9 2.2 3.2 1.2 85.0 31.0 33.3 23.7 17.5 0.6

WEST SOUTH CENTRAL


Picture.

Private Label Share

“Good losers?Snacks and confectionaryCosmeticsBaby foodAlcoholic beverages

“Success!”Paper, plastic, and wipesRefrigerated foodFrozen foodShelf stable juices

Bad winners? – no one but ourselves to blame.Pet foodHealthcareDiapers and feminine hygiene

“Bad stuff” – why?Home careNonalcoholic beveragesPersonal carePri

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Private label shareLow <12% High > 12%

Questions?

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