AMERICAN EGG BOARD
maximize egg category sales
American Egg Board
Think Fast. Think Eggs. Think Profits.
Over the past several years, the American Egg Board (AEB) has conducted
considerable research into the category dynamics and consumer behavior impacting
the egg case. Several groundbreaking studies have explored egg case economics, shelf merchandising,
promotion strategy, and supply chain efficiency. During this time, the egg category has grown substantially
and per capita consumption has reached its highest point in nearly twenty years. The current interest in
higher protein diets, combined with a greater understanding of the nutritional advantages of eggs, are
bringing even more traffic to the egg case in each store.
For retailers, this trend is especially favorable since eggs have now become one of the most profitable
categories in the entire store. “Think Fast. Think Eggs. Think Profits.” truly sums up what today’s store
operators need to know about the category. This booklet provides the facts and information that will be
helpful in maximizing your results with the incredible, profitable egg. It draws upon a wide range
of AEB and industry research, highlighting approaches that have been proven
in-store. This is just one of the many activities the American Egg
Board undertakes to support the egg industry and its customers.
We trust that you will find it useful. Good selling!
Sincerely,
THE AMERICAN EGG BOARD
AMERICAN EGG BOARD
1460 Renaissance Drive
Park Ridge, IL 60068-1340
aeb@aeb.org
www.aeb.org
2
maximize egg
category sales
maximize egg category sales
American Egg Board
ACKNOWLEDGEMENTS
The information in “Think Fast.
Think Eggs. Think Profits.” results
from five years of research and
inquiry into the dynamics of egg
merchandising. Collectively, these
studies involved:
Introduction
2
Egg Industry Facts
4
Today’s Egg Consumer
6
Category Egg-o-nomics
8
– Over 1000 consumer interviews.
– Sales data from more than 1800
stores in 33 states.
– Interviews and visits with more
than 30 retail chains.
– Supply chain data and analyses
involving 6 retailers and 4 egg
suppliers.
– Controlled shelf resets and
display tests at more than
one dozen retailers.
– Interviews with over 100
egg suppliers.
One Dozen Grade A
Large Eggs
Effective Egg Promotions
11
Managing the Egg Case
14
Egg Nutrition
16
Retailer Support from AEB
18
Best Practices for Retailers
19
– A comprehensive review of
industry data and published studies.
The information in this booklet
is compiled specifically to assist
category managers and retail
marketing executives in the management of the egg category.
Think Fast. Think Eggs. Think Profits.
Following the recommendations in
this booklet will bring measurable
increases in sales and profits.
3
maximize egg category sales
Egg Industry Facts
EGGS ARE SOLD IN SUPERMARKETS
BY THE NUMBERS
Since 1998, the share of eggs
sold in retail stores has increased
from fifty-five to sixty percent.
That translates to over 4 billion
more eggs being sold at retail
each year. Of the eggs sold at
retail, 89% of those sales occurred
in supermarkets and supercenters.
254.1
Per capita egg
consumption in 2003.
This was the highest
figure since 1985.
73 Billion
Total US egg production
(2002).
EGG CONSUMPTION IS INCREASING
Throughout the past decade, egg
consumption has been steadily rising
and has reached its highest point in
over 20 years. Better understanding
of the nutritional and health aspects
of eggs, combined with their versatility
and low cost, have brought renewed
growth to the egg category.
255
283 Million
250
Current population of
the United States.
245
278 Million
Average number of egg
laying hens in the US –
About one hen for every
person in the US.
240
235
230
Per Capita Consumption
'99
'00
'01
83
100
95
100
Seasonal Cost Index
% annual average cost
'02 '03
111
'98
96
109
100
108
Egg costs typically follow a predictable
seasonal pattern with higher costs
November through Easter, and lower
costs during late spring and summer
months. Utilizing this information can
help you plan more effectively
throughout the entire year.
'97
96
'96
91
'95
EGG COSTS FOLLOW
SEASONAL PATTERNS
112
225
259
Average number of eggs
laid by a hen in a year.
65
Egg companies with one
million or more layers.
48 Million
J
F
M
A
M
J
J
A
S
O
N
D
Dozens of eggs exported
from the US in 2002.
Month – Based on Urner-Barry MW quotations
260
EGG SIZING
Egg size is based on minimum net
weight expressed in ounces per dozen
Egg producing companies
with flocks of 75,000
hens or more.
45°F
4
30
27
24
21
18
JUMBO
EXTRA LARGE
LARGE
MEDIUM
SMALL
The maximum storage
temperature under which
eggs should be stored.
maximize egg category sales
Egg Industry Facts
MORE FACTS ABOUT EGGS. . .
TOP 10 EGG PRODUCING STATES
• The high point for per capita egg
consumption was 1945 with 402 eggs.
• An egg shell has as many as 17,000
pores over its surface.
• A chicken consumes 4 pounds of feed
to make a dozen eggs.
• A mother hen will turn over her egg about 50 times each day
(so the yolk won’t stick to the sides of the shell).
• A hard-cooked egg will peel more easily if it
is a week or two old before being cooked.
• Howard Helmer, the “Omelet King,” is in
the Guiness Book of World Records for
making 427 two-egg omelets in 30 minutes.
• The most expensive egg ever sold was the
Faberge “Winter Egg” sold in 1994 for $5.6 million.
• It is believed that Christopher Columbus’ ships
carried to this country the first of the chickens
related to those now in egg production.
The Incredible Edible Egg
NATURE’S MASTERPIECE OF DESIGN
Source: aeb.org
Currently, the top ten egg producing
states (ranked by number of layers):
1) Iowa
6) Texas
2) Ohio
7) Nebraska
3) Indiana
8) Georgia
4) Pennsylvania 9) Florida
5) California
10) Minnesota
EGG GRADING
Grade AA
Egg content covers a small area.White is
firm, has much thick white surrounding
the yolk and a small amount of thin white.
The yolk is round and upstanding. Grade
AA egs are marketed regionally in the
United States.
Shell: Outer covering consisting mostly
of calcium carbonate.
Shell Membranes: Two membranes
that provide a protective barrier.
Grade A
Thin Albumen (white): Nearest to the shell
Egg content covers a moderate area.
White is reasonably firm and has a
considerable amount of thick white
and a medium amount of thin white.
The yolk is round & upstanding.
Thick Albumen (white): Stands higher
and spreads less than thin white.
Major source of riboflavin & protein.
Grade B
Air Cell: Air pocket formed at the large
end. Caused by contraction during cooling.
Chalazae: Strands of egg white that
anchor the yolk in place
Vitelline Membrane (yolk):
Clear seal that holds the yolk.
Yolk: Yellow center portion. The major
source of vitamins and minerals.
Egg content covers a very wide area.
White is weak and watery, has no
thick white and the large amount of
thin white is thinly spread. The yolk is
enlarged and flattened. Grade B eggs
are not sold at retail.
5
maximize egg category sales
Today’s Egg Consumer
FAMILIES
WITH CHILDREN
ACCOUNT FOR
THE MAJORITY
OF EGG
CONSUMPTION
CUSTOMERS LOVE EGGS
• Eaten an average of 1.8 times per week
• 7.8 billion egg trips to stores each year
• 95% household penetration
• 96% repeat purchase
Over half of all
• 71% store-brand penetration
egg sales are
• $2.6 billion in sales
made to families
with children. These
households also represent the biggest spending and most loyal
shopper segments for most retailers. Heavy egg purchases
(3+ dozen per month) account for 46% of total egg volume.
Average Dollars Spent Per Shopping Trip
Based on Nielsen Homescan™ data,
consumers still spend twice as much
at the store during shopping trips
when eggs are purchased compared
to when eggs are not purchased.
Non-Egg
Customers
$21.59
Egg
Customers
$43.35
Source: Pactiv Corporation/ACNielsen Homescan™
Population Growth % 2000-2010
Total
U.S.
+ 6.6%
Hispanic/Latino
+ 23.7%
EGG CUSTOMERS SPEND MORE
EGGS APPEAL TO GROWING POPULATION SEGMENTS
Demographic changes in America suggest a continuing increase in
egg sales for the future. Asians, Hispanics, and individuals over the
age of 50 all consume more eggs than average, and these are
three of the fastest growing consumer segments. Collectively, they
account for nearly half of the entire United States population.
EGG
SALES INDEX
127
EGG CUSTOMERS VISIT THE STORE MORE OFTEN
Asian
+ 28.5%
Age 50+
+ 26.3%
EGG
SALES INDEX
109
EGG
SALES INDEX
126
Source: U.S. Census Bureau (middle values)
and Progressive Grocer Product
Preference Study. April 1, 2003
6
Eggs are highly consumable
and appeal to the most
frequent shoppers in the
store. In fact, research data
shows that egg customers
make an average of nearly
28 more visits to the store
than non-egg customers.
Average Number of Trips Per Year
Egg
Customers
67.2
Non-Egg
Customers
38.4
Source: AEB, Making the Case for Eggs
maximize egg category sales
Today’s Egg Consumer
What do you like about shopping for eggs in this store?
% Total Responses
CONVENIENCE AND SELECTION
ARE WHAT CUSTOMERS LIKE MOST
CONVENIENCE
SELECTION
QUALITY/FRESHNESS
PRESENTATION/DISPLAY
PRICING
NO RESPONSE
IN-STOCK
LIKE THE STORE
Convenience for shoppers is defined as
being in-line with dairy and easy to locate.
Selection is having a full variety of eggs.
However, many other factors are important
to customers also.
28
24
13
10
8
8
6
2
Source: AEB, Setting the Case for Eggs
n=868
MOST CONSUMERS DECIDE TO BUY EGGS
BEFORE THEY GO TO THE STORE...
PLAN TO BUY
EGGS AHEAD
OF TIME
80%
DECISION TO
BUY EGGS
IN-STORE
20%
Do you plan to buy eggs ahead of time
or make the decision in the store?
...BUT WILL BUY EGGS IF THEY ARE ON
SALE EVEN WHEN THEY HAD NOT PLANNED TO
YES 56%
NO 44%
FACT:
THE AVERAGE
UNITED STATES
HOUSEHOLD
EATS EGGS
1.8 TIMES
PER WEEK
Do you buy eggs when they are on sale
even if you had not planned to?
Source: AEB, Promoting the Case for Eggs
CONVENIENCE IS KEY AT HOME
Reasons Customers Do Not Eat Eggs More
Convenience is the primary reason
customers do not make eggs more
often. AEB’s “Think Fast. Think Eggs.”
advertising is directed at emphasizing
how eggs can be among the most
convenient meal options.
OTHER BREAKFAST FOODS ARE EASIER TO MAKE
EGGS TAKE TIME TO PREPARE
CANNOT EAT ON THE GO LIKE OTHER FOODS
DO NOT THINK OF MAKING EGGS THAT OFTEN
EGGS TOO HIGH IN CHOLESTEROL
CANNOT BE BOTHERED WITH CLEAN-UP
WORRY ABOUT SALMONELLA
MORE NUTRITIOUS CHOICES FOR BREAKFAST THAN EGGS
Total %
56
43
45
43
34
32
27
25
Source: AEB Research
What three things are
most important to you
when you buy eggs?
% Total
Customers
Mentioning
FRESHNESS/DATING
NO BROKEN/CRACKED
VARIETY/SELECTION
PRICE
EGG/CARTON CLEAN
HEALTH ISSUES
OTHER SAFETY/QUALITY
MISCELLANEOUS (Multiple responses allowed)
Source: AEB, Setting the Case for Eggs
66
63
47
36
32
8
8
5
FRESHNESS IS MOST IMPORTANT TO CONSUMERS
Freshness is cited as the most important criteria
when shopping for eggs. Retailers should respond
by implementing effective handling procedures
and by always keeping eggs properly refrigerated.
Highlighting “freshness” with store signage and
“satisfaction guaranteed” statements will reassure
customers that they are getting the best quality eggs.
FACT:
7.8 BILLION
TRIPS PER
YEAR ARE
MADE TO
THE STORE
TO BUY EGGS
n=601
7
maximize egg category sales
Category Egg-o-nomics
FRESH EGGS ARE
NUMBER ONE IN PRIVATE
LABEL PENETRATION
Eggs are the number
one supermarket item in
Private Label penetration,
accounting for over 77%
of category unit sales.
There is no other item
in the store that can
build as much store
brand equity as the
incredible, edible egg.
Top Category Leaders In
Private Label Penetration
Unit
Share
Fresh Eggs
Frozen Fruit
First Aid
Milk
Charcoal Lighter
Cotton Balls
Sugar
Coffee Filters
Marshmallows
Dry Beans
Butter
Powdered Milk
Frozen Vegetables
77.2%
70.6%
62.7%
61.5%
59.7%
57.7%
57.8%
57.3%
54.8%
51.8%
51.3%
51.0%
50.9%
Source: IRI/PLMA PLMA’s 2003 Private Label Yearbook
ARE EGGS THE PERFECT CATEGORY?
In looking at the category characteristics that are most important to
retailers, few items can match the
overall performance delivered from
eggs. Is there any other category in
the store with all these advantages?
• High household penetration
EGGS TURN FAST AND GENERATE A POSITIVE CASH FLOW
Only milk turns faster
than eggs in the dairy
case. Most retailers are
able to sell their eggs
before they have to pay
for them, generating
a positive cash flow
and improving overall
store performance.
7.7
• High margin
(Days)
• Fast turning
• Strong sale item response
4.3
3.7
• Appeals to the best customers
• Creates true incremental sales
2.2
1.5
• Builds store brand equity
• Maximizes promotion efficiency
Milk
Eggs
Juice
Yogurt
Cheese
11%
Grocery
Dairy
• Generates related item sales
• Enhances store traffic patterns
...INCREDIBLE!
EGGS ARE AMONG THE MOST
PROFITABLE CATEGORIES IN THE STORE
24%
Compared to other categories, not only are
egg gross margins higher, but handling costs
are less, resulting in a true profit that is higher
than most every other area of the store.
16%
Frozen GM/HBC Produce
Source: AEB, Making the Case for Eggs
8
Dough
27%
Gross Margin Less Handling Costs
(% of Sales)
18%
13%
• High growth
Average Store Inventory
Source: AEB, Making the Case for Eggs
True Profit Contribution
7.8
Eggs
maximize egg category sales
Category Egg-o-nomics
EGG CATEGORY
DATA
Households using
94.3%
Repeat buyers
96%
Item units per trip
1.3
Buyer dollars
per trip
$1.42
Item trips
per buyer
12.6
Purchase cycle
24 days
Sold on deal
23.1%
Buyer dollars
yearly
$17.50
Total retail sales
$3.1 billion
(estimate 2003)
Egg production
sold in retail stores
59.5%
Source:
Progressive Grocer
Consumer
Expenditures Study;
May 1, 2002
April 1, 2003
and AEB Research
RETAIL PROFITS
Eggs are one of the most profitable items
in the store. Eggs were once thought to be
primarily a commodity item producing only
minimal profits for the retailer. Over the past
several years, gross margins in the egg
category have steadily risen, now exceeding
40% in most parts of the country. This
makes eggs one of the least-cost and
high impact promotion items in the store.
Cost to Retail Spread
Average 12 ct. Large
0.36
0.31
0.27
0.22
'96
'97
'98
'99
0.43
0.44
'01
'02
0.35
'00
Source: Urner Barry Publicatons, Pactiv Corporation and ACNielsen.
WHAT EGGS COST TO HANDLE
In 2003, the American Egg
Board conducted an extensive
study of egg supply chain
handling costs. For a typical
warehouse egg program
shipping in 30-count cases,
the total distribution and
store costs averaged 18.8¢
per dozen. However, after
store occupancy costs, the
single largest cost factor
was shrink and damage.
Retailers can significantly
increase their profitability
through improved handling
procedures and training.
The greatest source of
shrink was caused by
retailer handling activities
and shipping eggs on mixed
pallets with other items.
COST PER DOZEN EGGS
WAREHOUSE PROGRAM DELIVERED
RETAILER WAREHOUSE
Ship in
$ 0.00000
Receiving
0.00073
Slotting
0.00082
Occupancy
0.00237
Picking
0.00292
Loading
0.00117
Ship out
0.02700
WAREHOUSE TOTAL
$ 0.03501
RETAILER STORE
Ordering
$ 0.00367
Receive/Putaway
0.00055
Stock/Condition
0.01722
Occupancy
0.06129
Checkout
0.01894
Shrink
0.05041
STORE TOTAL
$ 0.15307
Retailer Total ABC
$ 0.18808
These standards are representative and will vary by retailer.
9
maximize egg category sales
Category Egg-o-nomics
EGGS TAKE UP LESS SPACE
THAN OTHER DAIRY CASE CATEGORIES
DO EGGS GET THE SPACE THEY DESERVE?
254
Average Number of SKUs
211.6
107.2
107
67
11.6
Eggs
Milk
Butter
Average Square Feet Facing
Juice
Cheese
Yogurt
136
120
110
98
In recent years, some retailers have cut back on the
space devoted to eggs under the mistaken assumption
that demand for eggs is static and that profit potential
will not be impacted. Over the past five years, research
has consistently demonstrated that eggs may not be
getting their “fair share” of attention and that retailers
may be giving up space to less profitable items. Eggs
typically take up less than 5% of total dairy case space,
but return more sales per square foot than any refrigerated
grocery categories except milk and cheese.
Top Growth Categories – Refrigerated Dollar Sales
% change vs. Prior Year
CATEGORY – FRESH EGGS
52
44
Eggs
Milk
Butter
Juice
Cheese
Yogurt
EGGS GENERATE MORE SALES AND PROFITS
PER ITEM THAN OTHER CATEGORIES
5737
Average Sales Per SKU
4119
1197
1117
334
Eggs
Milk
Butter
1205
Juice
Cheese
Yogurt
Average Gross Profit Per Unit
947
261
10
Milk
8.2%
CATEGORY – BREAKFAST MEATS
8.0%
CATEGORY – RFG. SALAD/COLESLAW
6.8%
CATEGORY – NATURAL CHEESE
6.1%
*FDMW – Food, Drug, Mass, Warehouse
Source: National Frozen & Refrigerated Foods Association,
2003 Year End Report
Egg sales are growing much faster than other refrigerated
categories. Dollar sales growth in the egg category not only
outpaced other refrigerated items, but eggs were among
the fastest growing categories in the store.
Eggs generate an average of
12.6 trips per buyer, more than
any other dairy case category
except milk and cheese. Source:
..GIVE EGGS THEIR DUE –
IT’S GOOD BUSINESS!
276
66
Eggs
9.9%
CATEGORY – CREAMS/CREAMERS
ACNielsen Homescan/
Progressive Grocer,
May 1, 2002.
323
Butter
Juice
Cheese
Yogurt
14.3%
CATEGORY – YOGURT
EGGS GENERATE MORE TRIPS
PER BUYER THAN MOST OTHER
DAIRY CASE CATEGORIES
952
Total FDMW*
maximize egg category sales
Effective Egg Promotions
Promotion Category Sales Impact
Dozens Sold Per Store
EGG PROMOTIONS BUILD INCREMENTAL SALES
Customers who buy eggs on sale will use more eggs. This simple fact
has been demonstrated in every promotion study by the American
Aggregate scanner sales
data from 599 stores in three
different markets from four
separate egg promotions
Egg Board. Egg promotions truly build new business.
EGG SALES RETURN TO NORMAL IMMEDIATELY AFTER PROMOTION
Two Weeks After - 1123
One Week After - 1149
Sale Week - 1759
Prior Week - 1099
Egg promotions do not “steal” business from succeeding weeks.
Source: AEB, Promoting the Case for Eggs
Scanner data tests show that eggs consistently return to a sales
level that is at least as high or higher than the normal sales level
prior to the promotion period.
PROMOTION FREQUENCY DOES
NOT DIMINISH SALES IMPACT
Studies of sequential egg promotions
show that each promotion performs
very close to its expected results –
SEQUENTIAL PROMOTION RESULTS
as if no other promotions had been
Week/Promotion
Category
Increase
run in the adjacent weeks.
1 – 18-count
112%
2 – 25% off all eggs
3 – 12-count large
36%
EGG SALE ITEMS DO NOT SHIFT
BUSINESS FROM OTHER EGG ITEMS
115%
Remarkably, when eggs are put on
4 – 12-count Large BOGO
83%
and 18-count large 4 days
Four Week Total
86%
Source: AEB, Promoting the Case for Eggs
sale, non-sale items retain an average
of 88% of their normal projected
volume. Only 12% of the non-sale
item volume is lost to the feature item.
DIFFERENT LEAD FEATURE PROMOTIONS
CREATE SIMILAR RESULTS
Results from most lead feature promo-
One Dozen Grade A
Large Eggs
tions typically generate an 80% or more
increase in category unit sales. These
results are consistent across a wide
49¢
variety of promotional events.
Limit
2
Price without
Preferred Card 99¢
11
maximize egg category sales
Effective Egg Promotions
PROMOTING EGGS
BUILDS CATEGORY SALES
GUIDELINES FOR PROMOTING EGGS
Do You Normally Make A Point To
Buy Eggs When They Are On Sale?
AEB research indicates there are five keys
to maximizing sales with egg promotions:
Over half of all shoppers
interviewed indicate that
they make a point to
YES 56%
1. Promote frequently.
When customers buy more, they use more.
NO 44%
2. Promote a variety of egg items. Different
sizes and specialty items can typically
enhance overall gross margins.
buy eggs when they are
on sale. One-fourth of
shoppers interviewed say
they compare egg prices
Source: AEB, Promoting the Case for Eggs
at different stores and
21% say they will shop where eggs are advertised. Over half of
customers surveyed say they will buy eggs when they are on
3. Take advantage of seasonal opportunities.
Less traditional sales periods such as after
Easter or in the summer offer higher egg
supplies and lower costs.
4. Cross-promote eggs with other items.
Nothing fills the cart like eggs. Produce,
breakfast meats, and many other items
are natural complements to the incredible,
edible egg.
sale even if they did not plan to buy them originally.
NON-SALE EGG ITEMS RETAIN 88%
OF THEIR NORMAL VOLUME WHEN
EGGS ARE PROMOTED
5. Sell the benefits of eggs. Interest in good
nutrition and low-carb diets is generating
new interest in the egg category.
MODEL PROMOTION PLANNING CALENDAR
Historic
Sales Index*
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
106
96
120
160
82
84
96
91
98
104
125
130
Fourth
of July
Back-toSchool
Valentine's
Day
Events
Themes
and Ideas
Notes
Dollars
Days
Eggs as
part of a
weight loss
program
Great
Dollar Days
Item
Bake for
Family
Fun Month
St. Patrick’s
Day
"Build a
Better
Breakfast"
Crossmerchandising
event
Egg
decorating
12-ct. and
18-ct. large
for
decorating
Diet Season
Lead Feature Dollar Days
Item Ideas
Ad
Specialty
and Other
Suggestions
Easter and Passover
Egg Salad Wk
Egg salad
ingredients
Peak Egg Season
Easter Ad
Create your
own event!
Earth Day
First Day
of Spring
Easter Ad
Organic
& Natural
National
Egg Month
Mother's
Day
Memorial
Day
National
Dairy Month
Father's
Day
Halloween
Highlight
Breakfast
Devilled
the
for Dad
eggs and
versatility
Omelet
salads for
of eggs:
promotion - picnics &
National tie-in cheese summer
Egg Month and pans
parties
Back-toschool:
Breakfast
is important!
Light & easy
summer
meal ideas
Historically lower costs may create many
buying and promotion opportunities
Tie-in to
Egg Month
4th of
July
XL for
Dad
Labor Day
World
Egg Day
Hardcooked
eggs for
"Brown
Baggers”
Hannukah
Kwanzaa
BOGOs and two-fors
for baking
Hearty
breakfasts
for fall
Devilled eggs for
holiday parties
Cultural traditions
with eggs
Back-to-School
Back Indoors
Hearty
Breakfasts
6 ct. for
seniors
Christmas
Thanksgiving
Day
Holiday Baking
BOGOs
for Baking
Large
packs
BOGOs
for Baking
18-ct.
for baking
*100 = Average Month
12
maximize egg category sales
Effective Egg Promotions
EGGS GENERATE SALES
THROUGHOUT STORE
More than 7 out of 10
customers indicate they
buy other items as a result
of purchasing eggs. Most
of these related categories
generate higher than normal
gross margins for the store.
Retailers can build sales
by providing recipes, crosspromoting eggs with other
items, and building featured
menu ideas. Breakfast items
alone can fill the cart.
SECONDARY LOCATIONS
CREATE ADDITIONAL SALES
The American Egg Board
has tested selling eggs from
locations outside of the egg
case and dairy department.
In almost every instance,
all of the volume in the
secondary location was
incremental. Coolers placed
THE BREAKFAST BASKET
Retail
Eggs
Spices
Bacon
Orange Juice
Cheese
Salsa
Frozen Potatoes
Bread
Butter
Mushrooms
Total
1.29
1.99
4.99
3.79
3.59
2.99
2.59
2.49
4.99
1.89
$30.60
Margin %* Profits
35
33
25
29
29
27
35
35
22
35
29%
0.45
0.66
1.25
1.10
1.04
0.81
0.91
0.87
1.10
0.66
$8.88
Source: AEB Secondary Location Study
prices from actual purchase
ITEMS PURCHASED WITH EGGS
% Total Consumers Mentioning
Bacon, Ham, Sausage
Baking Products
41
26
(flour, sugar, baking mixes)
Cheese
Bread, English Muffins, Biscuits
Butter
Milk
Produce Items
Spices, Condiments, Jams
Breakfast Items
16
16
11
11
9
8
3
412 total responses/answers grouped by category/N=301
Source: AEB/Wisner Marketing Group,
Promoting the Case for Eggs
by the checkout area or in
produce generated very
strong results. In produce,
there was a significant
increase of tie-in items for
omelets and other main
SECONDARY LOCATION TEST RESULTS
Increase
Units Dollars
Eggs: At Checkout
+4.9%
+4.1%
Eggs: In Produce
+4.2%
+6.6%
Produce Tie-In Item
+7.0% +11.3%
dish meals.
...all of the sales in the secondary locations were incremental
13
maximize egg category sales
Managing the Egg Case
PROPER SHELF MANAGEMENT YIELDS RESULTS
In a five chain controlled test, stores were reset utilizing
AEB Best Practice guidelines (see diagram below and
page 19). The results from re-merchandising the egg
case were dramatic, significantly increasing department
sales and incremental profits in excess of $2,000.
Proper shelf management puts more eggs in the cart.
Remerchandising Test Results
5 Chain Study
INCREASING EGG SPACE IMPROVES PERFORMANCE
+$3,892
Per Store Sales Increase
+$2,066
Test - 2,103
Per Store Profit Increase
Some retailers have reduced egg space in the mistaken
belief that egg sales will be the same “no matter what.”
To evaluate
Average Weekly Sales (dozens)
egg space,
50% Space Increase - 8 week test period
one chain
8 Weeks Prior
with a rela1,473 dozen
To Change
tively small
department
allocated
8 Weeks After Change 2,103 dozen
a 50%
increase in
linear space to determine sales impact. After eight
weeks, sales had grown by 42.7% versus the control
stores. Items with the greatest space increase also
showed the largest sales growth.
EGGS BELONG WITH DAIRY
SIGNS
Research consistently indicates that increased sales
and consumer satisfaction will result when it is easy
for the shopper to find everything they need and the
information they want. Utilizing easy-to-read department
signage, clear pricing, rail strips, and promotion signs
will improve department results.
14
Shoppers expect eggs to be located with dairy, ideally
as an anchor on the opposite end from the milk
case. This
% Answering "Eggs are very easy to find
encourages
in my store" (by case type)
customers
to shop
Separate from Dairy 55%
the entire
dairy case.
In-Line with Dairy 82%
maximize egg category sales
Managing the Egg Case
MAKE PRICING EASY TO FIND
egg color
Egg shell and
yolk color may
vary, but color
has nothing to
do with egg
quality, flavor,
nutrition,
or cooking
characteristics.
____________
carton dates
All egg cartons
from USDA
inspected plants
display a
Julian date - the
date the eggs
were packed expressed as the
number of days
since the first of
the year.
____________
storage
Fresh shell eggs
can be stored
in their cartons
4 to 5 weeks
beyond their
Julian date with
insignificant loss
of quality.
Shopper want prices both over
the egg case and on the shelf.
In one study, the difficulty in
finding prices was the single
most mentioned dislike about
shopping for eggs in the store.
WHAT IS MEANT BY “FULL VARIETY?”
A full variety is a “core” mix of egg sizes, pack sizes and types of eggs. This includes:
12 count Jumbo
12 count Extra Large
12 count Large
12 count Medium
6 or 8 count Large
12 count Brown
18 count Large
18 count Extra Large
2 1⁄2 or 5 dozen
Nutrient-enhanced eggs
Cage-free or free-range eggs
Organic eggs
Vegetarian eggs
1-3 Liquid egg items
Additional varieties, packs, brands, and sizes can further enhance sales.
SETTING THE CASE FOR SUCCESS
Setting the egg case for success involves just a few simple guidelines:
•
•
•
•
•
Put the best sellers (typically 12-ct. & 18-ct. Large) in the well at opposite ends of the case.
Place higher gross margin items, including specialty eggs, at eye level.
Position the best selling items at the end of the traffic flow.
Allocate space primarily based on overall sales in your market.
Give a little extra space to higher margin and high growth items.
The diagram below shows how these principles might be applied to a typical shelf set.
6 Ct
Large
12 Ct Medium
Specialty
12 Ct
Small
Liquid Eggs
Egg Substitutes
12 Ct Extra Large
12 Ct Brown
18 Ct Extra Large
12 Ct Jumbo
12 Ct Large
2.5
Dozen
18 Ct Large
➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ TRAFFIC FLOW ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤ ➤
15
maximize egg category sales
Egg Nutrition
SEEING IS BELIEVING
EGGS AND
CARDIOVASCULAR DISEASE
Age-related macular degeneration
(AMD) is the leading cause of blindness
in North America. Approximately 200,000
new cases are diagnosed each year, and
nearly six million Americans have suffered some
vision loss from AMD. A rapidly aging and longer living
population suggests that the prevalence of AMD is likely
to triple over the next 25 years. Research funded by the
The American Egg Board
provides materials to food
editors and others to promote
a better understanding of
diet and eye disease.
A rapidly growing body
of scientific evidence
demonstrates that
saturated fat, not dietary
cholesterol, is the real
culprit in raising blood, or
serum, cholesterol levels.
National Eye Institute has indicated that certain antioxidants, particularly lutein
and zeaxanthin, may significantly reduce the risk of AMD. Eggs are an important
dietary source of both lutein and zeaxanthin and may play an important role in
reducing the risk of serious eye disease.
ARE EGGS THE PERFECT SOLUTION FOR LOW-CARB DIETS?
Led by the popularity of the Atkins diet, low-carb/
high-protein diets are being utilized by millions of
Americans. No food meets the needs of low carb
dieters like the incredible, edible egg.
Protein? Eggs are the standard by which other
protein sources are measured. A typical large egg
contains over six grams of protein.
Fat? An egg has 4.5 grams of fat, only 7% of the
daily value. Only one-third (1.5 grams) is saturated
fat and 2 grams are the mono-unsaturated variety.
Studies conducted at
University of Arizona, the
Harvard School of Public
Health, and others have
concluded that the cholesterol levels of healthy people will probably remain
about the same if they
eat an egg a day.
Tasty? You bet. Eggs are used in 94% of the
households in the US. Almost everyone likes
eggs. This is dieting without sacrifice.
Versatile? Casseroles, stratas without bread, omelets, skillet suppers –
consumers on low-carb diets crave variety, and eggs provide it.
Costly? The one thing that eggs are not. USDA studies have confirmed
that eggs are one of the cheapest forms of high quality protein available.
Consumer interest in the egg category is being driven by individuals
seeking smart choices for a high protein diet.
...EGGS ARE THE PERFECT CHOICE!
16
In addition, the American
Heart Association has
amended its guidelines
on eggs and there is
“no longer a specific
recommendation on
the number of egg
yolks a person may
consume in a week.”
maximize egg category sales
Egg Nutrition
THERE IS
NO LONGER
A SPECIFIC
RECOMMENDATION
ON THE NUMBER
OF EGG YOLKS
A PERSON MAY
CONSUME
IN A WEEK
CHOLINE DOES A BRAIN GOOD
An essential nutrient, choline plays an important
neurological role in the development brain and
memory functions. It has also been found that
prenatal deficiencies of choline have a negative
impact on the development of areas of the brain
related to learning and memory. With 125 mg of choline,
one egg provides at least 22% of an adult’s daily requirement.
WHAT’S IN AN EGG?
Eggs are rich in nutrients and a very affordable component of a healthy diet. They
contain, in varrying amounts, almost every essential vitamin and mineral needed
by humans as well as several
NUTRITION STATEMENT
other beneficial food components.
Nutrient or
Quantity in One
Percent of
In fact, egg protein is of such high
Other Component
Large Egg*
Daily Value**
quality that it is a standard against
Calories
75
4
which other proteins are compared. Total fat
5g
8
Take a look at the nutrition
Saturated fat
1.5 g
8
statement and see what you get
Cholesterol
211.5 mg
70
in today’s incredible, edible egg.
Protein
6.3 g
13
BREAKFAST IS THE
MOST IMPORTANT MEAL
Mom was right. Eating
a good breakfast is the
best way to start the day.
Research demonstrates
that breakfast eaters live
longer, are far less likely
to be fat, and may have
a reduced risk of developing diabetes. Having
eggs at breakfast can
also improve memory
and cognitive skills.
WANT TO LEARN MORE
ABOUT EGGS AND NUTRITION?
The Egg Nutrition Center in
Washington, DC, monitors
scientific research research
regarding eggs and offers a
wide variety of information and
other resources. Log on to
enc-online.com. In addition,
the American Egg Board offers
a wide range of materials for
consumer affairs professionals,
schools, and others.
Vitamin A
Vitamin D
Vitamin E
Vitamin B 12
Vitamin B 6
Folate
Thiamin
Riboflavin
Phosphorus
Zinc
Iron
Choline
Lutein & Zeaxanthin
243 IU
17 IU
0.75 mg
0.6 mcg
0.07 mg
24 mcg
0.031 mg
0.24 mg
95 mg
0.55 mg
0.91 mg
125 mg
165 mcg
5
4
3
10
4
6
2
14
10
3
5
22
n/a
* Large eggs are the size most commonly sold in
the U.S. Eggs of larger or smaller sizes contain
proportionally greater or lesser amounts of nutrients.
** Based on 2,000 calorie intake; for adults and children
greater than or equal to 4 years of age
17
maximize egg category sales
Retailer Support from AEB
Get By With a Little Help From Your Friends at AEB...
CHECK OUR CATALOG!
The AEB materials catalog has retail merchandising
materials, price signs, research reports, consumer
literature. Call AEB or log on at aeb.org to get a copy.
EGGSTRA!
The quarterly retailer newsletter of the American Egg Board is
available free to retailers. To subscribe call AEB or log on at aeb.orb.
THINK FAST. THINK EGGS. THINK PROFITS.
Need more copies of this workbook? Contact your egg supplier
or log on to aeb.org.
PRICE SIGNS
Research demonstrates that clear pricing
is important to consumers. Two styles are
available to place over your egg case.
Signs can easily be customized with your logo.
EGG HANDLING
for Safety & Quality
for
LOG ON TO AEB.ORG
The AEB website has nearly 10 million visitors
each year. Information is here for retailers,
consumer affairs directors, foodservice operators
and includes everything you want to know about
the incredible, edible egg.
Inspect the egg case frequently
to remove out-of-date product
and damaged eggs
Move eggs into the
cooler immediately upon delivery
Store and
display eggs
at 45°or below
Avoid placing
heavier items on
top of egg cases
FOOD AND DRUG
ADMINISTRATION
(FDA) REGULATIONS
Store eggs away from products
that can emit strong odors
A must-have for your back room. This 18-241⁄ 2”
poster outlines proper egg care and handling
tips for dairy clerks. Also available in Spanish.
AND NOW… EXPANDED RETAIL
RESOURCES ON THE WEBSITE –
Available Summer 2004
Everything you want to know
about the incredible, profitable
egg all in one place. Research
reports, category information,
eggstra! archives, and a lot more.
C
O
O
L
E
R
FOOD AND DRUG ADMINISTRATION (FDA) REGULATIONS
EGG HANDLING
18
Safety & Quality
T
R
U
C
K
LOTS MORE !
Rotate eggs
properly First In...
First Out
Follow these guidelines to insure customer satisfaction and safety
AMERICAN EGG BOARD
1460 RENAISSANCE DRIVE • PARK RIDGE, ILLINOIS, 60068 • www.aeb.org
maximize egg category sales
Best Practices for Retailers
Think Fast.
Think Eggs.
Think Profits.
DOES YOUR EGG CASE MAKE THE GRADE?
Use this check list to determine if you are “setting the case”
for maximum sales and profits. Retailers who follow these
shelf merchandising guidelines will see improved results.
PLANNING YOUR STRATEGY
■ Egg case located in-line with dairy
■ Minimum 8-foot department
■ All egg types represented for full variety
■ Plan-o-grams for all stores
SETTING THE CASE
■ Best-selling items set at opposite ends
■ High-margin and growth items at eye level
■ Space allocations based on local market needs
■ Additional space allocated to growth items
COMMUNICATING WITH CUSTOMERS
■ Large overhead department sign
■ Pricing easy to find, both overhead and on-shelf
■ Color-coded cartons, rail strips and signs
■ Consumer information available on egg safety and nutrition
OPERATING FOR BEST RESULTS
■ Employee handling guidelines posted in back room
■ Case temperatures maintained for maximum freshness (always under 45°F)
■ Employees trained in proper rotation procedures
■ Store policies for keeping the egg case clean, organized, and full
■ Accurate measures of damage and shrink
MERCHANDISING FOR SUCCESS
■ Annual merchandising plan
■ Eight or more lead features annually
■ All sizes and types in promotion plan
■ Secondary location displays
■ Cross-merchandising with other items
19
American Egg Board
1460 Renaissance Drive
Park Ridge, IL 60068-1340
or
Contact us by fax or e-mail
E-mail: aeb@aeb.org
Fax: 847-296-7007
Visit our Website at
www.aeb.org