NRA presentation - bslg-smartketing-wawa
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Transcript of NRA presentation - bslg-smartketing-wawa
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The Grocerants Are Eating Your Lunch: How Grocery Stores, C-Stores, Drug Stores & Home Delivery Are Taking
Away Market Share
Presented by: Bill Cross, SVP Business Development, Broad Street Licensing GroupWith Jim Matorin, SMARTKETING
Mike Sherlock, Vice President, Fresh Food & Beverage, Wawa, Inc.Ben Hamlin, VP Fresh Direct
5/18/2014
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Restaurant Brands at Retail: An Overview by
Bill Cross, Broad Street Licensing Group
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Restaurant Brands Licensed to Retail• Began in 1996 - Initial line of 5 SKUs from restaurant menu
(potato skins, Buffalo wings, mozzarella sticks) - grown to 18 SKUs•Annual Retail Sales (est.) = $ 350MM•181MM 1 year ago (21% growth )•4% Share of total frozen/refrigerated appetizers & snacks segment
Frozen Appetizers &
Dinner Entrees
Salsas/Dips
ChipsDrinks & Mixers
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Restaurant Brands Licensed to Retail
• CPK began licensing in1997 – 12 SKUs utilizing restaurant’s most popular flavors•Annual retail sales $159 MM;•19.6% annual growth
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•High-end frozen skillet meals launched 2010: “PF Chang’s Home Menu”•Priced in the premium $8.99-$9.99 range
Restaurant Brands Licensed to Retail
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• Starbucks began in1995 w/ice cream - by July 1996 Starbucks Ice Cream was top-selling super premium brand in coffee-flavor segment•“2nd Generation” non-coffee ice creams launched 2010•RTD drinks introduced 1996 - by 2005 achieved 98% share of US RTD coffee market•Coffee beans introduced 1998 – leader in gourmet /premium coffee bean segment•Retail products are highlighted on the company’s web site under “Starbucks at Home”•Coupons given out in Starbucks promoting grocery products•Went into retail business directly after contentious falling-out with Kraft
Ice Cream
Candy & Liqueur Drinks
Coffee Beans
Restaurant Brands Licensed to Retail
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#NRAShow“You know White Castle is always open late so you can always get what you crave, but sometimes you just want to get what you crave at home. Did you know you can get frozen White Castle hamburger patties from your grocer’s freezer?” [White Castle’s corporate web site]
Restaurant Brands Licensed to Retail
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Restaurant Brands Licensed to Retail
Coming Soon
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Restaurant Brands Licensed to Retail
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Don’t Just Compete With Other Restaurants in Their Category (e.g., fast casual)—
Don’t Just Compete With Other Restaurants—
They Compete With Everyone Who Sells Food—
RESTAURANTS:
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And Almost Everyone Sells Food Now:
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80% of Americans Don’t Know by 4PM What’s for Dinner*
* Source: Technomic
Factoid:
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Don’t ask whether non-traditional retailers are threatening your business, but whether you can
threaten theirs*
* Chris Stark
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The Convenience Factor
Jimmy Matorin – Business Catalyst
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The Convenience Factor
• Time Usage- 24/7- Mobile U.S.A.- Internet
• Lifestyles
• Snacking Numerology
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-4%
0%2% 1%
3%
Restaurant Traffic % Change vs. YAG
Morning Meal( )
Lunch( )
Supper( )
PM Snack( )
NPD Traffic YE Dec ‘13
0%
-2%
0%
-1%
1%
-3%-1% -1%
1%
-1%
-3%
0% 0% 1%
-1%
21%
34%
31%
14%
YE Dec'09 YE Dec'10 YE Dec'11 YE Dec'12 YE Dec'13
The NPD Group, Inc. | Proprietary and Confidential Source: CREST
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2007 2008 2009 2010 2011 2012 2013
208207
200
197
194 194192
The NPD Group, Inc. | Proprietary and Confidential
17
Annual Restaurant Meals & Snacks Per Person
Source: CREST Years Ending November
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Nanosecond
The fraction of time that elapses between when a traffic signal changes to green and the car behind
you blasts their horn.
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Nanosecond
A nanosecond is one billionth of a second. Consequently one nanosecond is to one second as
one second is to 31.7 years.
TelecommunicationsPulsed Lasers
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Average Time Usage Study
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Mobile U.S.A.
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Mobile U.S.A. – Smartphone Usage
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Internet Usage – Social Media
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Internet Usage – Social Media
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Lifestyles
• Multiple Screens
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Lifestyles
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Lifestyles
• Multiple Screens
• Demographics – Indie Woman – Millennial Moms
• Online Education
• Night Owls (24/7)
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Snacking Numerology
2.35/92%
50% +22
+18/12 percent
$9.2 Billion
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The Grocerants Are Eating Your Lunch: How Grocery Stores, C-Stores, Drug Stores and Home Delivery Are Taking Away Market Share
Mike Sherlock
5/18/2014
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Who is Wawa?200 Years in American Business
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• Employs over 22,000 people
• Owns and Operates 650 stores– 263 non-gas– 387 gas
Delaware
220240
41
Pennsylvania
Virginia
New Jersey
Maryland
40
45
Florida
Mid Atlantic
68
Who is Wawa Today?
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A trusted brand in our Mid-Atlantic market (PA, NJ, MD, DE, VA):
#1 C-Store Share (47.8%)#1 in Gasoline (21.1% sales); 1.6% of all fuel sales in U.S.#1 in Coffee; #7 nationally#1 in Hoagies and Sandwiches#47 – Forbes Annual Ranking of Largest Private Companies3rd in Food Trade News Market Share for food retailers in
the Delaware Valley
Who is Wawa Today?
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Private Ownership
• Long-term Point of View• Closely Held = Engaged Owners
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Employee Ownership!
40.9%
10.0%11.2%
37.9%
ESOP
OtherShareholders
George WoodTrust
George WoodDescendants
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Our Core Values
Value People Delight Customers Embrace Change
Do The Right Thing Do Things Right Passion For Winning
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Wawa Dairy
1902
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Store #1 Opens in Folsom, PA
1964
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Coffee Program Begins
1975
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Hoagie Program Begins
1975
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1977 ESOP Created
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1996 First Super Gas Store - Millsboro, DE
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2000 Touch Screen Ordering
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2012Florida
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44
Fast Casual To Go
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What Do You Want To Be Known For?
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Keep Your Brand Fresh
After
Before
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Create the Environment To Represent Your Brand
After
Before
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Create the Environment To Represent Your Brand
Before
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Create the Environment To Represent Your Brand
Before
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50
Communicate Freshness
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Communicate Freshness
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Value
Fast, Friendly, Clean and Fresh
Personalization
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Fulfilling lives, everyday.