Beverage Category Roundup Beverage Bonanza • • • • • • • Welcome & Introductions Category Overview Fun Facts Doing Business with the Beverage Team Examples Quiz Q&A 2 Beverage Category Directory • BEVERAGES • • • • Michelle Frost, Category Manager (804) 734-8000, extension 4-8696 Fax: (804) 734-8009 PP 78696 E-mail: michelle.frost@deca.mil • Coffee Ground Bagged, Coffee Whole Bean, Coffee International, Coffee Instant Flavored/Bagged, Coffee Instant Regular, Coffee Canned, Coffee Ground Flavored, Coffee Creamers, K-Cups, Coffee Filters, Instant Breakfast, Tea Bagged, Herbal/Flavored Tea, Instant Tea/Mix, Hot Cocoa, On-the-Go Breakfast Shakes, Instant Breakfast, Shelf Stable Milk, Milk Modifiers, Canned and Powdered Milk Multi-Pack Juice, Cranberry/Cranberry Blend Juice, Drink Mix Syrup Fruit Flavors, Drinks Fruit and Nectars Juice, Vegetable/Tomato/Prune Juice, Aseptic Juice, Lemon/Lime Juice, Pineapple Blends/Juice, Apple Juice/Cider, Grapefruit Juice, Sparkling Juice Soda, Premium Soda, Value Soda, International Beverages, Water, Water Filtration, Flavored/Sparkling Water, Isotonic Beverages, New Age Beverages, Kosher Beverages, Cocktail Mixers, Powdered Instant Drinks, Water Enhancers, Freeze Pops, Energy Drinks, Hispanic Beverages, Liquid Coffee • • • • • • Lisa Owens, Merchandising Specialist (804) 734-8000, extension 4-8181 Fax: (804) 734-8009 PP 78181 E-mail: lisa.owens@deca.mil Michel le Photo Vacant, Business Analyst Michelle Bibbs & LorettaTucker - Planogrammers 3 The Beverage Categories CONUS EX AK HI (THIS WILL BE UPDATED) DeCA 52 Week Ending 2/1/2014 Dollars % 1 COFFEE $ 81,760,941 22.83% 2 SOFT DRINKS $ 71,463,962 19.95% 3 SHELF STABLE JUICES AND DRINKS $ 56,738,304 15.84% 4 WATER $ 38,292,023 10.69% 5 NEW AGE BEVERAGE $ 32,783,986 9.15% 6 ISOTONIC BEVERAGE $ 19,131,269 5.34% 7 TEA PACKAGED AND BAGS $ 8,608,910 2.40% 8 COFFEE CREAMERS $ 7,556,784 2.11% 9 POWDERED INSTANT DRINKS $ 6,988,327 1.95% 10 CANNED AND POWDERED MILK $ 4,793,302 1.34% 11 LIQUID COFFEE $ 4,155,423 1.16% 12 BEVERAGE HISPANIC $ 4,132,293 1.15% 13 SHELF STABLE MILK $ 3,949,620 1.10% 14 INSTANT TEA AND TEA DRINK MIX $ 3,858,753 1.08% 15 MILK MODIFIERS $ 3,319,035 0.93% 16 HOT COCOA $ 3,134,449 0.88% 17 LIQUID TEA $ 3,055,414 0.85% 18 HERBAL TEA $ 1,886,940 0.53% 19 COCKTAIL MIXERS $ 1,378,134 0.38% 20 COFFEE FILTER $ 1,128,885 0.32% 21 SHELF STABLE CHOCOLATE DRINK $ 22,634 0.01% $ 358,139,388 100.00% 4 The Beverage Categories N E W I T E M P R E S E N T A T I O N S BREAKFEST BEV2GO COFFEE K-Cups COFFEE GROUND BAGGED COFFEE WHOLE BEAN BAGGED COFFEE INTERNATIONAL COFFEE INSTANT FAVORED/BAGGED COFFEE INSTANT REGULAR COFFEE CANNED REGULAR COFFEE GROUND FLAVORED CREAMERS POWDERED NON DAIRY TEA BAGGED TEA FLAVORED OR HERBAL TEA INSTANT COCOA MILK SWEET EVAPORATED MILK POWERED MILK ULTRA HIGH TEMP UHT K-CUPS ALL Other MILK FLAVORING FILTERS JUICE MULTI PACKS JUICE CRANBERRY/CRAN BLENDS JUICE DRINK MIX SYRUP FRUIT FLAVOR JUICE DRINKS AND NECTARS FRUIT JUICE VEGETABLE TOMATO/PRUNE JUICE ASEPTIC JUICE LEMON /LIME JUICE PINEAPPLE OR PINEAPPLE BLENDS JUICE OR CIDER APPLE JUICE GRAPEFRUIT SODA PREMIUM WATER FILTRATION SODAS ALL FLAVORS WATER DRINKS ENERGY DRINK MIXES POWDERED DRINKS ISOTONIC SODA VALUE MIX SPECIALITY LIQUID & DRY FREEZE POPS DRINK MIX TONIC CLUB SODA NEW AGE BEVERAGE WATER SPARKLING OR FLAVORED INTERNATIONAL BEVERAGES - HOLIDAY May June April/July April/July April/July April/July April/July April/July April/July April Nov/Dec Nov/Dec Nov/Dec May january/June january january June May April March/August March/August March/August March/August March/August March/August March/August March/August March/August March/August December September July/December September April/October January/February October July August November August April/October September January 5 Overall Category Management Objectives • Grow Volume, Grow Value, Grow Loyalty • Transform strategies of business plan to category plan which should be implemented around the “The First Moment of Truth” • Use fact-based decision process • Continuously focus on best practices, recognizing different shopper behavior 6 Marketing Strategies • Right Assortment • Right Prices • Right Promotions • Right Location and Space in Store • Right NPIs 7 Marketing Strategies (Continued) • Traffic Building – Getting more patrons to the store and the category • Transaction Building – Increasing the patrons’ average spend while showing savings • Creating Excitement – Continuing to offer innovative, fashionable products and promotions • Image Enhancing – Strategy aimed at creating the right image toward the category consumer … “Your commissary, it’s worth the trip!” 8 Tactics • Assortment – Focus on the leading brands of the category – Review marginal items with low contribution to sales – Focus on new-to-the-world products • Price – Shelf prices offering patron savings of 30% – Optimize sale prices – no lower outside the gate – Focus on top brands • Merchandising – Shelf space sufficient to last between stocking periods – Sufficient space for Regional and S-coded items • Promotions – Continue creative theme events – Develop activities and events for new item introductions – Use pallets when offered to simplify merchandising 9 How • Joint Business Plan – Overall Objective – Working together to create better business results for both DeCA and you – Create better understanding of common business issues and opportunities – Joint development of growth strategies – Joint development and implementation of category development plan – Ongoing monitoring and negotiation based on common understanding and best practices 10 How The Joint Business Plan-Guiding Principles • Common focus to grow the category, based on improved consumer and shopper satisfaction, greater volume, greater turnover • Work in the greatest possible transparency and there should, in principle, not be any sacred cows • Common goals and objectives and decisions based on facts and data • Both parties must be committed to implement decisions • Frequent check point discussions • Results for All 11 Bonanza Quiz Let’s see if you were paying attention … 12 Bonanza Question 1 This city in the US consumes 7 times more coffee than any other US City. 1 3 Bonanza Question 2 According to many historians, from which country did coffee originate? 1 4 Bonanza 3 What 2 countries were the first to bottle Coca Cola outside of the US? 1 5 Bonanza 4 What soft drink manufacturer was the first foreign product allowed into Russia? 1 6 Bonanza Question 5 Which major soft drink is a blend of 23 different flavors? 1 7 Bonus What is the Name of this Iconic Beverage Character 1 8 Questions 19 Thank You 2 0