Candy. Center Store. National Expo 1
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1 Candy Center Store 1
2 Overview What is the Opportunity How To Win o Good o Better o Best Approach Seasonal Candy Front End Candy Discuss Next Steps 2
3 Candy is an Important Category % HH Penetration All Outlets Combined; 98% 98% 94% 94% 94% 94% 92% 92% 72% Purchase Cycle (Days) All Outlets Combined; SALTY SNACKS CMG CARB BEV SOUP CEREAL CRACKERS COOKIES JUICES DRINKS - SS SNK/GRAN BARS SALTY SNACKS CARB BEV CMG CEREAL JCS/DRNKS - SS COOKIES CRACKERS SNK/GRAN BARS SOUP $ $ $96.59 Buying Rate ($ per Buyer) All Outlets Combined; Purchase Frequency (Trips per Buyer) All Outlets Combined $70.68 $57.63 $44.53 $42.73 $39.38 $ CARB BEV SALTY SNACKS CMG CEREAL JCS/DRNKS - SS COOKIES SNK/GRAN BARS SOUP CRACKERS SALTY SNACKS CARB BEV CMG CEREAL JCS/DRNKS - SS COOKIES CRACKERS SOUP SNK/GRAN BARS Source: Nielsen US Homescan Panel 3
4 Candy is highly impulsive Most purchase decisions are made in the store Item predetermine 39% d Total candy purchases Planned to buy candy 100% Did not plan to buy candy 58% 42% Item choice made in store 19% 42% 39% Purchases: Item decision pre-determined 61% Purchases: Item decision made in store Source: Smart Revenue 4
5 Confection merchandising drives big lifts CMG Promotional % Lift Any Promo xaoc: 52 Weeks Ending 12/20/14 CMG Promotional % Lift By Merch Tactic US Food: 52 Weeks Ending 1/2/16 120% 109% 99% 94% 89% 82% 80% 169% 72% 69% 47% 57% 13% CEREAL SOUP CMG CARB BEV SNACK BARS TTL NUTS SALTY SNACKS CRACKERS COOKIES TPR Only Feature Only Display Only Feature & Display 5
6 3 Segments make up the Candy category Three components make up the Candy Category for Supervalu Independents Instant Consumables 26% +1% $178M In Retail Sales! +2.9% Take Home 61% +2.4% Seasons 13%.3% Source: Nielsen 6
7 All segments are growing! Supervalu Independents are growing with Take Home and Instant Consumables Total CMG by Segment - Dol % Chg Supervalu Ind and Competition 52 Weeks 1/2/16 4.4% 4.3% 2.4% 3.4% 3.9% 2.3% SV Total (Includes SAL) SV Ind 1.0% 0.3% SV Ind ROM -1.0% Take Home Instant Consumables Seasons Source: Nielsen 7
8 The Candy aisle can be hard to shop The consumer experience in the confection aisle is that of frustration Confection and the Shopper 76% of shoppers frustrated with clutter in the Confection aisle 25% Causing 25%* of shoppers to walk away without purchase We ve talked to over 150K shoppers in the last two years Source: *Hershey s Mass and Grocery Confection Store Intercepts (2009); **POPAI Shopper Engagement Study Food Channel (2012) 8
9 GOOD, BETTER, BEST APPROACH 9
10 A START Align Flow & Adjacencies Space Allocations Competitively Priced 10
11 Efficient Assortment- Set by Usage Occasion +3% Growth with usage occasion segmentation 11
12 Candy Aisle Space Allocation/Flow Dedicated Candy End Cap 8' Candy Dish 4' Gifts & Premium 8' Movie and Snack 8' Fruity and Chewy 4' Gum and Mint End Cap Candy: Space Allocation to Sales Category Percent of Space Candy Dish 20-25% Gifts & Premium 10-15% Movie & Snack 25-30% Fruity & Chewy 25-30% Gum & Mints 10-15% Total 100% 12
13 A WAY Align Flow & Adjacencies Space Allocations Competitively Priced Sign Package Dedicated End Cap 13
14 Make Candy easy to find & shop Sign package and Beacon End cap and Help shoppers find the candy aisle & invite them in +3 to 5% category growth with Beacon Endcap 14
15 Help customers navigate the aisle 15
16 THE CANDY AISLE Align Flow & Adjacencies Space Allocations Competitively Priced Sign Package Dedicated End Cap Seasonal & Incremental Displays Front End Candy Racks 16
17 Top 5 Strategies for Best Large Secondary Displays Utilization of shippers Utilize multiples (2/$5.00) to increase incremental purchases Weekly ad support Aisle Expansion 17
18 Create WOW displays for high impact merchandising 18
19 HOW TO WITH SEASONAL CANDY 19
20 Best practices for Seasonal Candy Get the season started BIG & EARLY Well signed & visible from the entrance Create a whole store seasonal feel Run Ads early in the season Order to cover through last event 20
21 Every season is important with Candy! % of Total Seasons 35.5% 25.8% Aug Oct 31 st Nov 1 st Dec 25 th Shoppers who purchase candy in your store will spend up to 37% more in store!!! 18.3% Feb 15 th Easter Sunday 10.3% Dec 26 th Feb 14 th 10.1% After Easter-August 21
22 Supplement Seasons with Themes and Creative Events Summer Solution Displays NCAA Olympics Branded Event 22
23 Candy is always one of the top 2 holiday items purchased 51% 50% VALENTINE S 28% 24% 71% EASTER 32% 28% 27% Cards Candy Novelty Candy Flowers Candy Real Eggs Non-Food Gifts Food 82% HALLOWEEN 32% 29% 28% 58% 56% HOLIDAY 45% 45% Candy Indoor Décor Novelty Candy Outdoor Décor Gift Wrap Candy Gift Card Cards 23
24 The 5 th Candy Holiday - SUMMER! Summer Candy is as BIG as you make it Picnics, entertaining- think candy dish outside Focus on non-chocolate and novelties Red, White, and Blue items are great items for Memorial Day and 4 th of July Don t forget Hershey S mores pallets in throughout the store Tie in with GM/Seasonal items Source: Ongoing HSY Seasonal Trackers 24
25 HOW TO WITH FRONT END CANDY 25
26 SUPERVALU Front End Program Stores utilizing SV Candy Racks have experienced sales increases LED lighting showcases candy racks Coolers and Lane Blockers available Contact your Account Manager for more information 26
27 Next Steps Check out the Candy display in the Show and Sell area up in the Wilkens (Grocery) arena of the EXPO See latest layout and Category Business Plan Contact your SUPERVALU Sales and Operations person to discuss your candy section Set-up instore Candy Aisle evaluation 27
28 Key Contact Information SUPERVALU East Region: Cynthia Barbour Category Merchandiser SUPERVALU West Region: Toni Seanger: Category Merchandiser
29 QUESTIONS? 29
30 Thank You! Make sure to stop by the Best In Class Candy Set on the Expo Floor! 30
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