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Gin Category Audits. Grant Spencer Courtney Duhamel. Why Gin?. Gin accounted for 4.4% of the market share in the liquor industry in 2007. That’s $138,739,800!
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Gin Category Audits Grant Spencer Courtney Duhamel
Why Gin? • Gin accounted for 4.4% of the market share in the liquor industry in 2007. • That’s $138,739,800! • The suppliers are more in control in the liquor industry because of the increasing demand for it. As long as there’s excess demand, suppliers will continue to make more and more product. • No private brands • Not your typical category. Lots of small manufacturers. Courtney
Leaders in the Industry • Diageo- Tanqueray, Gordon, Booth’s and Gilbey’s • PernodRicard- Seagram’s and Beefeater • Bacardi Limited- Bombay Original and Sapphire • Barton Brands- Barton • Heaven Hill- Burnett’s • Small Various Suppliers Courtney
“Are you ready to Tangueray?” • Before SPSS Analysis, we perceived these as the dominant brands. • Tanqueray • Seagram’s • Beefeater • Bombay Courtney
Sluggish Brands • Lucas Bols- Damrak brand • Cock Russel & Co.- Boodles • Bellow’s and Company- Bellow’s Courtney
Retailers Audited and Observations • Oklahoma Locations • Campus Liquors** • Corkscrew Liquors • Thunderstuck Liquors • Mainstreet Liquor • Foster’s Liquor • Missouri Locations • Sonny B’s • WM Supercenter • Arkansas Locations • Wedington Liquor • Sam’s Club • Spirit Shop **had the greatest assortment Grant
SKUs by Brand • 75 total SKUs reported • Manufacturer with most SKUs - Seagram’s • Brands with most SKUs – Seagram’s • Most with identical product SKUs- Barton, Gilbey’s, Beefeater, Seagram’s Extra Dry and Lime Twisted, Barton (all tied at 5 SKUs) Courtney
Gross Margins • We started at a base price of the lowest unit per brand. We also used the image or prestige of the brands to determine how much to pay for each SKU. • Highest Average Gross Margin- Foster’s Liquor (42.5%) • Highest Margin in Audit -Barton’s .2 L Bottle (62.8%) Courtney
Battle for Shelfspace • Supplier’s share shelf space is disproportionate to their share of SKUs, therefore they’re more in control of the market. • PernodRicard and Diageo both had significant display space. • Overall, Bacardi Limited had a relatively poor showing for being major brand. Grant
Gross Margin by Brand Grant
Gross Margins by Facings Grant
Market Summary • Privately owned liquor stores tend to have higher gross margins, therefore there is more opportunities for other small business owners. • Overall, PernodRicard has the most shelf space and the highest gross margins.