By Cindy Beam & Michael Young
So What’s Cooking
In The Olive Oil Category?
Introduction
• Who is in control – retailer or brand?
– We say retailer with a few exceptions
Share of Display (% Total sum = share of total facings & % Total N = share of SKU's)
HPS
IGA
WLM 6th
Garland
Aldi's 6th
School TFM Prom
St Face
Face
St. Face
Face
Face
Manufacturer
Gem
Bertolli
Lucini
Carapelli
Colavita
Cookwell
Crisco
N
2%
% of Total N
2%
2%
3
2
% of Total Sum
16%
15%
7%
5%
% of Total Sum
2%
% of Total N
13%
13%
6%
4%
% of Total N
3%
4
1
% of Total Sum
5%
5%
% of Total N
6%
4%
N
N
Newman'sOwn
2
1
% of Total Sum
3%
1%
% of Total N
3%
2%
N
% of Total Sum
2%
% of Total N
5%
N
N
1
% of Total Sum
1%
% of Total N
2%
N
% of Total Sum
% of Total N
% of Total N
6
9%
10%
9
9
32
47
10%
41%
52%
78%
15%
39%
62%
82%
2
2
9%
10%
7%
% of Total Sum
14%
10%
9%
4%
% of Total N
11%
2
4
7%
8%
9%
8%
% of Total N
1
Pompeian
Private Label
Star
N
N
7
5
2
6
7
18%
20%
100%
18%
16%
% of Total N
11%
22%
100%
12%
12%
N
1%
% of Total Sum
% of Total N
2%
% of Total N
5
4
% of Total Sum
9%
6%
% of Total N
8%
8%
Total
7
% of Total Sum
% of Total Sum
N
2
6
N
N
Olivari
N
Other
N
Only In 1 or 2 stores % of Total Sum
3
% of Total Sum
Filippo
1
1%
3
% of Total N
De Cecco
1
% of Total Sum
8
% of Total Sum
Davinci
N
N
1
2%
4%
62
23
2
52
57
% of Total Sum
100%
100%
100%
100%
100%
% of Total N
100%
100%
100%
100%
100%
Importance of Depth
Store
# SKUs
WLM 6th HPS Garland Aldi 6th
62
23
IGA School TFM Prom
2
52
57
• Depth is very important
– Audited 15 stores
– Total 181 SKUs
– Depth has increased significantly
– Depth seems to be tied more to target market
than competing stores
Typical Walmart SKU’s
$0.35/ .oz
$0.30/ .oz
$0.28/ .oz
Typical Fresh Market SKU’s
$0.76/ .oz
$2.05/ .oz
$1.76+/ .oz
TOTAL OLIVE OIL (SHORTENING, OIL) OZ. Total Dollars BehaviorScape Framework
LifeStyle
BehaviorStage
Start-Up Families
HHs with Young Children Only < 6
Small Scale Families
Small HHs with Older Children 6+
Younger Bustling Families
Large HHs with Children (6+), HOH <40
Older Bustling Families
Large HHs with Children (6+), HOH 40+
Young Transitionals
Any size HHs, No Children, < 35
Independent Singles
1 person HHs, No Children, 35-64
Senior Singles
1 person HHs, No Children, 65+
Established Couples
2+ person HHs, No Children, 35-54
Empty Nest Couples
2+ person HHs, No Children, 55-64
Senior Couples
2+ person HHs, No Children, 65+
Total
Cosmopolitan
Centers
Affluent
Suburban
Spreads
Comfortable
Country
Struggling
Urban Cores
Modest
Working
Towns
Plain Rural
Living
Total
144
127
112
131
99
75
112
120
120
101
111
74
65
95
109
114
86
88
74
81
90
144
144
113
118
102
93
120
100
86
80
64
70
80
79
73
71
69
70
59
41
63
98
87
66
87
68
58
73
129
133
105
113
100
82
109
160
148
129
101
112
97
125
148
161
137
115
120
109
131
119
125
104
96
86
78
100
Source: Spectra BehaviorScape: Total Dollars/Spectra 2013 Jan (Spectra)/Homescan Product Library
Very High: 150+
High: 120-150
Category Role
• Flagship Option 2*
– Maintain sales/increase profits
Sales Volume
(000)
Olive Oil
HH
Penetration
Gross
Margin**
Total U.S.
$722,133.6
37.8
45%
West South
Central
$58,942.9
32.6
45%
ACN Olive Oils WSC 07
* Robert Blattberg, PhD. (Consumer-Centric Category Management, pg.88)
**Estimate based on the sample stores
Strength of Leading Brand
• Bertolli dominates
– Multiple SKUs at 10 of our 15 stores
– ACN: Bertolli Item $s are 17% of US category
– Average Gross Margin about 45%
Market Stocking Rate
• Sum of store count / (#SKUs X #stores)
Brand
Store count
#SKUs X # Stores
Rate
Bertolli
56
135
.41
Crisco
31
90
.34
Pompeian
39
120
.33
Gross Margin Estimates by Brand
Report
Manufacturer
Bertolli
N
Mean
Carapelli
N
Mean
Colavita
N
Mean
Cookwell
N
Mean
Crisco
N
Mean
Davinci
N
Mean
De Cecco N
Mean
Filippo
N
Mean
Gem
N
Mean
Lucini
N
Mean
Newman'sO N
wn
Mean
Olivari
N
Mean
Other
N
Mean
Pompeian N
Mean
Private
N
Label
Mean
Star
N
Mean
Total
N
Mean
IGA
WLM 6th St
HPS
Aldi's 6th SchoolGM
GM%
GarlandGM% St.GM%
%
8
3
3
45%
42%
47%
4
1
51%
60%
2
30%
3
42%
6
2
2
29%
38%
43%
2
4
34%
45%
1
43%
5
4
23%
54%
1
1
45%
71%
2
60%
1
28%
6
41%
9
9
32
34%
41%
44%
7
44%
7
5
2
6
56%
58%
49%
55%
1
32%
62
23
2
52
41%
44%
49%
47%
TFM
Prom
GM%
2
43%
44.25% Gross Margins
55.5%, carried in two stores
1
62%
36.67%
47
46%
7
46%
57
46%
52.8% GM (93.3% store presence)
Is This Consistent with Your Role
for the Category?
• Provides value for the customer by meeting their routine, or
stock-up, needs.
– Various consumer uses
• Pricing among competitors.
• Promotion Characteristics
– Healthier substitute for cooking oils
• Space Allocation
• Assortment Characteristics
Relationship Between Gross Margins & Depth
Mean Gross Margin ($)
Walmart (6th St.) Number of Facings
and GM$
WLM 6th St GM$
$4.00
$3.50
$3.00
$2.50
WLM 6th St
Face
1
N
6
Mean
$2.09
2
31
$3.04
3
14
$3.57
4
4
$1.51
5
1
$1.50
6
1
$2.68
7
3
$2.91
$2.00
8
1
$2.54
$1.50
9
1
$1.82
Total
62
$2.91
$1.00
$.50
$.00
1
2
3
4
5
6
Number of Facings
7
8
9
Relationship Between Gross Margins & Depth
The Fresh Market Number of Facings and GM$
TFM Prom GM$
Mean Gross Margin ($)
TFM Prom
Face
1
$9.00
$8.00
$7.00
$6.00
$5.00
$4.00
$3.00
$2.00
$1.00
$.00
37
Mean
$8.14
2
17
$5.82
3
3
$5.84
57
$7.32
Total
1
2
Number of Facings
3
N
Relationship Between Gross Margins & Depth
IGA (School Ave.) Number of Facings and GM$
IGA SchoolGM$
Mean Gross Margins ($)
$5.00
$4.50
IGA School
Face
1
$4.00
$3.50
$3.00
N
6
Mean
$4.00
2
21
$3.82
3
15
$3.80
4
5
$3.02
5
1
$2.41
$2.50
6
3
$4.52
$2.00
7
1
$3.69
$1.50
Total
52
$3.77
$1.00
$.50
$.00
1
2
3
4
5
Number of Facings
6
7
Private Label Opportunities
• How strong are private labels?
Products
TOTAL
Colavita (Shortening, Oil : Olive Oil) Oz. **
Parent Folder
Olive Oil
% Penetration
0.7%
Index
119
Quadrant
1.High Index / High Penetration
Botticelli (Shortening, Oil : Olive Oil) Oz. *
Olive Oil
1.2%
118
1.High Index / High Penetration
Capatriti (Shortening, Oil : Olive Oil) Oz. **
Olive Oil
0.7%
118
1.High Index / High Penetration
Bertolli (Shortening, Oil : Olive Oil) Oz.
Olive Oil
6.0%
114
1.High Index / High Penetration
Filippo Berio (Shortening, Oil : Olive Oil) Oz.
Olive Oil
6.8%
114
1.High Index / High Penetration
Star (Shortening, Oil : Olive Oil) Oz.
Olive Oil
1.9%
111
1.High Index / High Penetration
Carapelli (Shortening, Oil : Olive Oil) Oz.
Olive Oil
1.6%
110
1.High Index / High Penetration
Private Label (Shortening, Oil : Olive Oil) Oz.
Olive Oil
18.8%
110
1.High Index / High Penetration
Pompeian (Shortening, Oil : Olive Oil) Oz.
Olive Oil
5.1%
109
1.High Index / High Penetration
Crisco (Shortening, Oil : Olive Oil) Oz.
Olive Oil
3.2%
107
1.High Index / High Penetration
Mazola (Shortening, Oil : Olive Oil) Oz. *
Olive Oil
0.8%
100
1.High Index / High Penetration
Carbonell (Shortening, Oil : Olive Oil) Oz. **
California Olive Ranch (Shortening, Oil : Olive Oil)
Oz. **
Vigo (Shortening, Oil : Olive Oil) Oz. **
Olive Oil
0.5%
121
2.High Index / Low Penetration
Olive Oil
0.3%
113
2.High Index / Low Penetration
Olive Oil
0.4%
111
2.High Index / Low Penetration
Delallo (Shortening, Oil : Olive Oil) Oz. ***
Olive Oil
0.3%
110
2.High Index / Low Penetration
Goya (Shortening, Oil : Olive Oil) Oz. **
Olive Oil
0.7%
109
2.High Index / Low Penetration
Da Vinci (Shortening, Oil : Olive Oil) Oz. ***
Olive Oil
0.2%
106
2.High Index / Low Penetration
Racconto (Shortening, Oil : Olive Oil) Oz. ***
Olive Oil
0.3%
101
2.High Index / Low Penetration
Napoleon (Shortening, Oil : Olive Oil) Oz. ***
Olive Oil
0.2%
100
2.High Index / Low Penetration
Olivari (Shortening, Oil : Olive Oil) Oz. **
Olive Oil
0.4%
97
4.Low Index / Low Penetration
Gem (Shortening, Oil : Olive Oil) Oz. **
Olive Oil
0.5%
91
4.Low Index / Low Penetration
Pampa (Shortening, Oil : Olive Oil) Oz. ***
Olive Oil
0.3%
89
4.Low Index / Low Penetration
ACN Homescan Product Library
Private Label Opportunities
• Stores Carrying P/L’s and their Gross Margins
– P/Ls make up over 30% of total dollar share of the US category ($216,278,900)
Manufacturer
Bertolli
WLM 6th St
GM%
N
Mean
Private Label
N
Mean
Total
N
Mean
HPS
GarlandGM%
8
3
45%
Aldi's 6th
St.GM%
IGA
SchoolGM%
42%
TFM Prom
GM%
3
2
47%
43%
7
5
2
6
7
56%
58%
49%
55%
46%
62
23
2
52
57
41%
44%
49%
47%
46%
Olive Oil Gross Margin % Trends
60%
50%
40%
30%
20%
10%
0%
2011
2012
2013
Recommendations on Private Label Use
• Increase in-store cross
merchandising
• Introduce low cost strategies to
enhance P/L image
• Increase facings of higher GM%
P/L products…with limits
• Introduction of premium P/L
products
QUESTIONS??