Artificial SweetenerKatie Clark

Reed Taylor

Introduction to Artificial Sweeteners$606 million in annual revenue31.42% item penetration

Category dominated by a few strong national brands and there is little private label activity.

Category Audit Findings10 stores audited66 SKUs found18 brands found44 unique SKUs found across the 5 main

retailers

Category DepthRETAILER TOTAL SKUS UNIQUE SKUS

WALMART 40 20

HARPS 40 18

WALGREENS 9 2

TARGET 8 1

MARVINS 18 3

TOTAL 66 44

*SKUs may appear in more than one store

Category Definition

Category Definition

Category Role

Gross Margin %

Gross Margin %Share of Gross Margin Percentages, Artificial Sweetners

ManufacturerWalmart NHM- 412 East

GM %Walmart NHM-Wedington

GM % Harps- 412 East GM % Harp- Garland GM % Marvins IGA GM %Cumberland Packing- Sweet & Low

Mean 26.802% 26.802% 32.677% 30.766% 28.724%

% of Total N 14.3% 14.3% 21.2% 17.9% 22.2%

N 4 4 7 7 4

McNeil Nutritionals-Splenda

Mean 38.175% 34.140% 45.634% 43.686% 49.533%

% of Total N 39.3% 46.4% 33.3% 28.2% 27.8%

N 11 13 11 11 5

Merisant US-Equal

Mean 6.133% 6.133% 31.721% 32.200% 36.718%

% of Total N 3.6% 3.6% 15.2% 15.4% 16.7%

N 1 1 5 6 3

Private Label Mean 26.608% 34.864% 13.236% 13.722% 8.971%

% of Total N 14.3% 21.4% 12.1% 12.8% 11.1%

N 4 6 4 5 2

Whole Earth Sweetener Co.-Skoopz=Unique SKU

Mean     71.429% 67.442% 53.020%

% of Total N   

3.0% 2.6% 5.6%

N     1 1 1

Total Mean 26.007% 29.600% 36.227% 33.048% 33.981%

% of Total N 100.0% 100.0% 100.0% 100.0% 100.0%

N 28 28 33 39 18

Share of Shelfspace

Share of ShelfspaceShare of Shelfspace, Artificial Sweetners

ManufacturerWalmart NHM-412 East

FacingsWalmart NHM-Wedington

Facings Harps- 412 East Facings Harps- Garland Facings Marvins IGA FacingsCumberland Packing-Sweet & Low

% of Total Sum 9.4% 6.7% 19.6% 18.6% 23.3%

% of Total N 14.3% 12.0% 21.2% 17.9% 22.2%

N 4 3 7 7 4

McNeil Nutritionals-Splenda

% of Total Sum 41.5% 46.7% 41.1% 27.1% 30.2%

% of Total N 39.3% 48.0% 33.3% 28.2% 27.8%

N 11 12 11 11 5

Merisant US-Equal

% of Total Sum 7.5% 4.4% 12.5% 13.6% 18.6%

% of Total N 3.6% 4.0% 15.2% 15.4% 16.7%

N 1 1 5 6 3

Private Label % of Total Sum 13.2% 31.1% 8.9% 11.9% 9.3%

% of Total N 14.3% 24.0% 12.1% 12.8% 11.1%

N 4 6 4 5 2

Whole Earth Sweetener Co.Skoopz

% of Total Sum   

1.8% 1.7% 2.3%

% of Total N   

3.0% 2.6% 5.6%

N     1 1 1

Total % of Total Sum 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total N 100.0% 100.0% 100.0% 100.0% 100.0%

N 28 25 33 39 18

Gross Margin Dollars

Gross Margin DollarsShare of Gross Margin Dollars, Artificial Sweetners

Manufacturer Walmart NHM- 412 East GM $ Walmart NHM-Wedington GM $ Harps- 412 East GM $ Harps- Garland GM $ Marvins IGA GM $Cumberland Packing-Sweet & Low

% of Total Sum 10.3% 8.3% 17.7% 15.0% 15.3%

% of Total N 14.3% 14.3% 21.2% 17.9% 22.2%

N 4 4 7 7 4

McNeil Nutritionals-Splenda

% of Total Sum 68.4% 62.0% 45.1% 40.4% 47.7%

% of Total N 39.3% 46.4% 33.3% 28.2% 27.8%

N 11 13 11 11 5

Merisant US-Equal

% of Total Sum 1.1% 0.8% 11.9% 12.5% 16.5%

% of Total N 3.6% 3.6% 15.2% 15.4% 16.7%

N 1 1 5 6 3

Private Label % of Total Sum 8.0% 20.6% 2.5% 3.3% 1.4%

% of Total N 14.3% 21.4% 12.1% 12.8% 11.1%

N 4 6 4 5 2

Whole Earth Sweetener Co.-Skoopz=Unique SKU

% of Total Sum   

3.7% 2.7% 3.6%

% of Total N   

3.0% 2.6% 5.6%

N     1 1 1

Total % of Total Sum 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total N 100.0% 100.0% 100.0% 100.0% 100.0%

N 28 28 33 39 18

Future of Private LabelPrivate Label is not that important to this

category. Walmart places the private label brands next to the strong national brands in hope that consumers buy products based on price.

Our recommendation to Walmart would be to decrease the role of private label. Give shelf space to either Splenda or Equal, and increase promotion on those brands.

Questions?