1 / 20

Artificial Sweeteners

Artificial Sweeteners. Andy Brown Tyler Clark. Summary. Introduction Category Depth Strength of Brands Private Label. Introduction to Artificial Sweeteners. Over $606m annual revenue 29.6% item penetration Mid level supplier control Category dominated by a few strong national brands

rainer
Download Presentation

Artificial Sweeteners

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Artificial Sweeteners Andy Brown Tyler Clark

  2. Summary • Introduction • Category Depth • Strength of Brands • Private Label

  3. Introduction to Artificial Sweeteners • Over $606m annual revenue • 29.6% item penetration • Mid level supplier control • Category dominated by a few strong national brands • Mid to low level private label activity

  4. Category Depth *Unique SKU found ONLY at one retailer, may appear in more than one store.

  5. Category Audit Findings • 10 stores audited • 75 SKUs found • 28 brands found • 49 unique SKUs found across 5 retailers • Slow growth of SKUs • Driven growth in brands/trends

  6. Harp’s on Garland Walmart NHM on Weddington

  7. Category DemographicsAd Hoc Demo

  8. Category DemographicsAd Hoc Demo

  9. Category Demographics Summary • No significant difference between brands • Artificial sweetener shopper tends to be older, empty nester couples • Could be because of dietary needs

  10. Gross Margin %

  11. Category Role • Cash machine • Mid-level volume • Good gross margins

  12. Category Depth Share of Facings

  13. Brand Dominance • Splenda has almost 60% of total category revenue • It also dominates shelf space in stores

  14. Gross Margin %

  15. Gross Margin % • Category average GM% = 28% • Started off by estimated lowest gross margin at 6%

  16. Scorecard

  17. Gross Margins and Display Space • Most brands’ display space is proportionate with respect to the GM • Truvia’s GM is about 25% but is only getting around 10% display space at stores

  18. Strength of Private Label • Overall category private label strength is limited • GMs aren’t very high relative to competing brands • Walmarthas most active PL strategy • PL’s compete with leading brands on display space and GMs • Other retailers focus less on PLs due to lower GMs • PLs are seen as a way to induce competition among suppliers, but retailers aren’t really committed to them

  19. Scorecard

  20. Future of Private Label • PLs are decreasing in importance to category • Although Walmart’s PL strategy seems to be consistent • Our recommendation to Walmart: • Decrease role of PL in category • Increase % of shelf space to Splenda and Sweet N’ Low • Increase promotional with Splenda • Negotiate better price deals with Cumberland Packing (Sweet N’ Low) to increase GM

More Related