Halloween Promotional Reflections November, 2011 Topics Covered • Retail Ad Support Across Candy Segments • Top Promoted Candy Manufacturers • Top Retailers Promoting Candy, Halloween Decorations, and Halloween Costumes & Make-up • Candy FSI Promotions • Candy Promotions on Retailer Websites “Halloween Week” 2010 Walmart & Target “Halloween Week” 2010 Last year we saw Target advertising a one-cent price advantage over Walmart on the front cover. “Halloween Week” 2011 “Halloween Week” 2011 This year Target advertised the same price point and Walmart has a one-cent advantage. “Halloween Week” 2010 Walgreens competes with the big box stores on price by using coupon & B1G50% off for 2011. “Halloween Week” 2011 “Halloween Week” 2011 CVS beats the big box stores on price by using their Extrabucks promotions for 2011. “Halloween Week” 2010 For “Halloween Week” 2011 Kroger and Albertson’s did not make Halloween a front-page priority, however, Safeway did include Halloween candy on the front page. For “Halloween Week” 2010 Kroger, Safeway, and Albertson’s did not make Halloween a frontpage priority. Retail Ad Support Across Candy Segments Share of Total Candy Ads 2011 2010 77.0% Candy-Chocolate&Assorted 73.1% 17.2% Candy-Seasonal/Holiday 19.7% 5.9% Gum&Mints 7.2% Source: ECRM, October 2011 Share of Total Candy Feature Ads Manufacturers Oct – 2010 Share Point Change Oct – 2011 1 The Hershey Company 24.8% 26.9% +2.1 pts 2 Mars Chocolate 16.0% 18.4% +2.4 pts 3 Nestle S.A. 14.1% 12.0% -2.1 pts 4 Wrigley Jr Company 5.2% 5.7% +0.5 pts 5 Tootsie Roll Industries 6.6% 5.1% +1.4 pts 6 All Other Candy 33.2% 32.0% -1.2 pts • The top 2 manufacturers represent 45% of ad support up from 41% in October 2010. Source: ECRM, October 2011 Candy Features by Channel Candy’s Share of Total Store Ad Blocks 2011 2010 4.2% Drug 4.0% 1.0% Grocery 1.1% 0.7% Mass 0.8% # 8 Advertised Category in the Drug Channel # 28 Advertised Category in the Grocery Channel Reads: Candy represents 4.2% of total circular ads in the drug channel. # 36 Advertised Category in the Mass Channel Source: ECRM, October 2011 Top Retailers Promoting Candy Total Candy Ad Blocks Shoppers Drug Mart Rite Aid 40.3 CVS 37.3 Walgreens Jewel-Osco Kinney Drugs Copps 21.6 42.3 38.4 35.8 31.4 35.8 40.2 32.4 59.4 56.1 51.6 2011 2010 32.1 34.9 Bartell Drug Farm Fresh Owen's Market 73.7 19.2 26.6 26.1 25.9 Source: ECRM, October 2011 Top Retailers Promoting Costumes & Make-up Total Costume & Make-up Ad Blocks Meijer 6.5 Copps 5.0 Walgreens 5.0 Shoppers Drug Mart 3.0 Rite Aid 2.5 Kmart 2.0 Bartell Drug Smith's Marketplace 1.8 1.1 Fred Meyer Stores 1.0 Kinney Drugs 1.0 Fred Meyer 9/28/2011 Source: ECRM, October, 2011 Top Retailers Promoting Halloween Decorations Total Indoor/Outdoor Halloween Decorations Ad Blocks Stop & Shop 11.5 Giant Food Landover 10.3 Giant Food Carlisle 8.0 Fred Meyer Stores 3.0 CVS 3.0 Target Stores 3.0 Kmart 3.0 ShopRite Fry's Food & Drug… Meijer 2.0 2.0 1.5 Giant Food Landover 8/14/2011 Source: ECRM, October, 2011 Top Manufacturers Utilizing FSI Promotions Total FSI Ad Blocks* Nestle S.A. 3 Perfetti Van Melle USA, Inc. 3 The Hershey Company 1 Storck USA, L.P. 1 Wrigley Jr Company 1 Mars Chocolate North America, LLC 1 Ferrero U.S.A., Inc. 1 * Chicago Market Source: ECRM, October, 2011 Top Candy-Makers Featured in Retail Web Promotions Share of Total Web Promotion Ad Blocks Nestle S.A. 41.1% Wrigley Jr Company 13.8% HARIBO 13.1% Mars Chocolate North America, LLC The Hershey Company 6.9% 5.3% Roche Bros Private Brand 2.2% Ghirardelli Chocolate Co. 2.2% Walgreens Web Promo 10/10/2011 Source: ECRM, October, 2011 Top Retailers Utilizing Web Promotions Total Candy Web Promotion Ad Blocks Walgreens 51 Target Stores 45 Loblaws Homeland Hy-Vee Food Stores 23 14 13 Fred Meyer Stores 12 Shoppers Food & Pharmacy 12 Foods Co. 12 Gerbes 12 Adams Super Food Stores 12 Walgreens & Target seem to have embraced the idea of candy web promotions more than other retailers. Walgreens Web Promo 10/10/2011 Source: ECRM, October, 2011 Interesting Halloween Facts • • • • • • • 41 million - The estimated number of potential trick-or-treaters in 2010 — children age 5 to 14 — across the United States. Of course, many other children — older than 14 and younger than 5 — also go trick-or-treating. Source: U.S. Census Bureau 92% - Percentage of households with residents who consider their neighborhood safe. In addition, 78 percent said there was no place within a mile of their homes where they would be afraid to walk alone at night. Source: U.S. Census Bureau 1,177 - Number of U.S. manufacturing establishments that produced chocolate and cocoa products in 2009, employing 34,252 people. California led the nation in the number of chocolate and cocoa manufacturing establishments, with 135, followed by Pennsylvania, with 111. Source: U.S. Census Bureau 409 - Number of U.S. establishments that manufactured nonchocolate confectionary products in 2009. These establishments employed 16,974 people. California led the nation in this category, with 45 establishments. Source: U.S. Census Bureau 24.7 pounds - Per capita consumption of candy by Americans in 2010. Source: U.S. Census Bureau 1,719 - Number of costume rental and formal wear establishments across the nation in 2009. Source: U.S. Census Bureau 1.1 billion pounds - Pumpkin production by major pumpkin-producing states in 2010. Illinois produced an estimated 427 million pounds of the vined orange gourd. California, New York and Ohio were also major pumpkin-producing states, each with an estimate of more than 100 million pounds. Source: USDA National Agricultural Statistics Service Methodology • Retail ad support measured by number of ad blocks in retailer print circulars. • Ad counts include branded & private label products, but not unbranded. • Ad Circular Data Includes U.S. & Canadian Retailers ECRM’s MarketGate Ad Comparisons Web Site: www.AdCompare.MarketGate.com Studies on Retail Promotions: www.PromotionalReflections.com Contacts: Scott Whalley Tom Pirovano Jason Marshall 847-482-1793 440-528-0418 440-498-0500 scott@ecrm.marketgate.com tpirovano@ecrm.marketgate.com jmarshall@ecrm.marketgate.com