Canned CornSpring 2014BY: ETHAN TOLAND & JOHN ALBERTSON

Our Category: Canned Corn is a staple good in every retail store, targeting the older and larger household families. As every company continues to add value to their products, canned corned producers are no different as they are continuing to add innovative packaging and unique flavors constantly. Our category strives to be diverse, fully stocked, and constantly there for your entire families needs.

Product SnapshotCanned Whole Corn

TOTAL CORN-WHOLE KERNEL (VEGS-CANNED) OZ. Total Consumption BehaviorScape Framework

LifeStyle

BehaviorStage

71 107 112 85 131 174 116

97 100 119 119 117 133

153 146 181 163 167 202

151 126 178 133 184 211

39 73 75 65 82 82

37 39 52 46 48 54

35 45 43 45 42 58

87 89 113 103 112 127

105

94 86 114 106 111 118

172

162

67

46

46

102 90 105 106 102

107

106

102

10078 91 110 91 101 119Total

Senior Couples2+ person HHs, No Children, 65+

Empty Nest Couples2+ person HHs, No Children, 55-64

Established Couples2+ person HHs, No Children, 35-54

Senior Singles1 person HHs, No Children, 65+

Independent Singles1 person HHs, No Children, 35-64

Young TransitionalsAny size HHs, No Children, < 35

Older Bustling FamiliesLarge HHs with Children (6+), HOH 40+

Younger Bustling FamiliesLarge HHs with Children (6+), HOH <40

Small Scale FamiliesSmall HHs with Older Children 6+

Start-Up FamiliesHHs with Young Children Only < 6

TotalPlain Rural

Living

Modest Working Towns

Struggling Urban Cores

Comfortable Country

Affluent Suburban Spreads

Cosmopolitan Centers

115

Assigning a Role to the Category• We would DEAL in this category!• 25% Gross Margin average across our 10 stores

Stores Audited

•Fayetteville - # SKUs• Walmart Neighborhood Market on Mission - 27• Harps on Mission - 14• Walgreens on Mission – 1 • Marvin's IGA on Lafayette - 8• Harps on Garland - 13• Target - 5• Ozark Natural Foods - 1

•Springdale - # SKUs• Walmart on 71 – 33 • Walgreens on 71 - 1• Aldi on 71 - 2

•61 Total SKUs at 10 different stores

Stores Audited

Store # SKUs % of Category

Walgreens Crossover 1 2%

Harps Crossover 14 23%

Marvins Lafayette 8 13%

Harps Garland 13 21%

Walmart Crossover 27 44%

Walmart 71 Springdale 33 54%

Walgreens 71 Springdale 1 2%

Aldi Springdale 2 3%

Target 5 8%

Ozark Natural Foods 1 2%

• The Walmart off of 71b/ College in Springdale had the largest assortment of Canned Corn, carrying 54% of all SKUs found in the area.

• The Walmart Neighborhood Market off of Mission and Crossover in Fayetteville had the second largest selection with 44% of all SKUs found in the area. This is due to an overall smaller store.

• Walgreens carried only one canned corn product at both their locations

• Target carried 2 private label products and 3 Del Monte Products

SPSS SPSS

Circular Trade Areas- NWA% HHs HHs Index % HHs HHs Index % HHs HHs Index % HHs

HHs Index

Race of Head of Household White 66.8% 97 83.2% 121 83.7% 121 83.4% 121 Black 1.3% 11 6.1% 51 5.9% 49 6.8% 57 Hispanic 28.0% 223 4.0% 32 3.7% 30 4.7% 38 Asian 1.3% 30 3.1% 74 3.6% 84 2.4% 56 Other 2.6% 118 3.5% 156 3.2% 141 2.7% 118Number of Persons 1 Person 28.1% 104 42.3% 156 42.1% 155 36.3% 134 2 Persons 29.1% 90 33.1% 102 32.6% 101 35.1% 108 3 Persons 15.3% 95 12.8% 79 13.5% 84 14.8% 91 4 Persons 12.9% 98 8.1% 62 7.8% 59 8.4% 63 5+ Persons 14.6% 131 3.7% 33 3.9% 35 5.4% 49Household Income Under $10,000 7.6% 99 20.5% 268 15.2% 198 20.2% 264 $10,000 - $19,999 15.2% 135 20.1% 180 15.3% 137 18.2% 162 $20,000 - $29,999 13.9% 128 12.9% 118 13.9% 128 9.7% 89 $30,000 - $39,999 11.4% 113 12.0% 119 14.7% 145 10.2% 100 $40,000 - $49,999 10.6% 118 7.9% 88 6.3% 70 8.3% 93 $50,000 - $74,999 19.8% 110 9.2% 52 10.1% 56 12.2% 68 $75,000 - $99,999 8.5% 72 5.4% 46 7.2% 60 7.4% 63 $100,000 - $149,999 8.9% 72 7.1% 58 9.6% 78 10.6% 86 $150,000 or More 4.0% 45 4.8% 53 7.7% 85 3.2% 35

Aldi- Springdale Walmart- Springdale Walmart- CrossoverDemography

Harps- Garland

Circular Trade Areas- NWA% HHs HHs Index % HHs HHs Index % HHs HHs Index % HHs

HHs Index

Age of Head of Household Age 18 - 24 5.5% 131 21.4% 508 14.8% 350 21.7% 515 Age 25 - 34 17.3% 115 25.3% 167 25.5% 169 31.0% 205 Age 35 - 44 18.4% 106 14.3% 82 16.1% 93 16.7% 96 Age 45 - 54 18.3% 91 12.7% 63 13.6% 68 11.3% 56 Age 55 - 64 16.3% 84 13.1% 68 13.9% 72 10.1% 52 Age 65 - 74 10.5% 80 7.5% 57 8.1% 61 5.1% 39 Age 75 or More 13.6% 127 5.8% 54 8.2% 77 4.1% 39Age and Presence of Children Age < 6 11.2% 151 5.1% 69 5.8% 78 7.0% 94 Age 6 - 17 16.9% 91 9.6% 52 13.4% 72 7.4% 40 Age < 6 & 6 - 17 8.4% 127 4.0% 61 3.4% 51 7.5% 113 No Children 63.5% 94 81.3% 120 77.5% 115 78.2% 116Education of Head of Household Not a High School Graduate 25.8% 198 8.7% 67 5.2% 40 6.2% 47 High School Graduate 28.5% 112 17.4% 68 17.4% 68 13.9% 55 Some College 23.3% 81 33.1% 115 32.8% 114 36.9% 129 College Graduate 13.8% 73 22.4% 118 24.1% 126 25.3% 133 Post College Degree 8.6% 62 18.4% 134 20.6% 149 17.7% 129

DemographyAldi- Springdale Walmart- Springdale Walmart- Crossover Harps- Garland

Category Strategy

•Marvin's - Lafayette1. Private Label

a) 25% Gross Marginb) 59% Shelf Space

2. Libby’s / Seneca Foodsa) 19% Gross Marginb) 26.9% Shelf Space

3. Del Montea) 38% Gross Marginb) 14.2% Shelf Space

•Harps - Garland1. Private Label

a) 21% Gross Marginb) 41.6% Shelf Space

2. Green Giant/ General Millsa) 41% Gross Marginb) 36.2% Shelf Space

3. Del Montea) 18% Gross Marginb) 22.2% Shelf Space

•Walmart 71- Springdale1. Del Monte

a) 25% Gross Marginb) 47% Shelf Space

2. Green Giant/ General Millsa) 33% Gross Marginb) 18.8% Shelf Space

3. Libby’s / Seneca Foodsa) 27% Gross Marginb) 11.1% Shelf Space

1 32

Private Label vs. National Brands

•Private label has a significant portion of the category across the board• Harps on Garland – 42% Shelf Space devoted to Private Label

• Marvin’s on Lafayette- 59% of Shelf Space devoted to Private Label

•Private Label Gross Margins• The Harps on Garland % Gross Margin for Private Label was higher than their % Gross Margin on Del Monte Canned

Corn

• The Marvin’s on Lafayette % Gross Margin for Private Label was higher than their % Gross Margin on Libby’s Canned Corn

•Every store we went to had private labels so we consider this a success. We also believe they should

maintain rather than increase or decrease.◦ Stores are seeing Private Label canned corn as a good way to expand their private label brand

◦ Almost no perceived quality difference between national and private label brands

Category Review•Private Label SKUs and shelf space has increased dramatically

• Harps on Garland has increased their Private Label Shelf Space % by 17% since 2011• More Shelf Space does not necessarily mean more SKUs however

•More “Value-Added” product were introduced to the market place• Large increase in varying of size of containers, from 8.5 Ounce to 87 Ounce containers• Innovative packaging that creates one serving of Corn compared to multiple servings in your traditional

Cans.• Consumers show nearly no Perceived Quality Gap with Private Label Canned Corn

• Hard to tell any difference between the premium branded Canned Corn and Private Label Canned Corn

Thank you!

Any Questions?