a look at the sugar category isela mercado-ulloa

DO YOU HAVE A SWEET TOOTH?A Look at the Sugar Category

Isela Mercado-Ulloa

CAN I BUY A CUP OF SUGAR FROM YOU?

Stores WMT SPR WMT MLK WMT

Campus Harp’s Har-

Ber Harp’s

Garland Target Sam’s

• SKUs– 25– 33– 2– 21– 20– 5– 7

• Change in SKUs– ?– +10– ?– ?– +3– +2– ?

WHO BUYS SUGAR? SUGAR IN THE RAW - SUGAR- GRANULATED C AND H - SUGAR- GRANULATED CTL BR - SUGAR- GRANULATED FLORIDA CRYSTALS - SUGAR- GRANULATED

52 WEEKS ENDING 12/27/03 52 WEEKS ENDING 12/29/07 52 WEEKS ENDING 12/27/03 52 WEEKS ENDING 12/29/07 52 WEEKS ENDING 12/27/03 52 WEEKS ENDING 12/29/07 52 WEEKS ENDING 12/27/03 52 WEEKS ENDING 12/29/07

TOTAL HOUSEHOLDS

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

INC - <$20,000 45.2 66.4 81.0 96.4 124.7 128.0 77.0 80.7INC - $20,000-

29,999 63.9 49.2 92.2 88.0 117.3 121.1 67.9 54.2INC - $30,000-

39,999 84.4 82.0 110.1 102.9 108.9 118.2 126.0 27.2INC - $40,000-

49,999 133.9 44.1 107.6 98.9 103.5 108.1 86.4 47.1INC - $50,000-

69,999 143.7 113.5 113.4 109.2 83.9 102.3 107.4 61.7INC - $70,000-

99,999 137.5 138.0 101.0 101.2 65.1 80.9 135.0 118.2INC - $100,000+ 137.5 163.3 101.0 101.4 65.1 58.5 135.0 240.4

• Private label bought by lower income• Sugar in the Raw & Florida Crystals – higher income

• C & H – not much interesting

WHO BUYS SUGAR? CONT’D

SUGAR IN THE RAW - SUGAR- GRANULATED C AND H - SUGAR- GRANULATED

CTL BR - SUGAR- GRANULATED

FLORIDA CRYSTALS - SUGAR- GRANULATED


EMP - FH EMPLOYED 122.3 90.7 108.6 95.2 102.9 97.1 106.1 87.9

EMP - FH EMP. FULL TIME 113.5 98.0 96.3 87.1 98.2 91.0 104.3 109.3

EMP - FH EMP. PART TIME 144.3 70.8 139.7 117.7 114.7 113.8 110.6 28.5

EMP - FH NOT EMPLOYED 82.9 124.2 108.5 122.5 127.1 124.8 98.0 151.4

EMP - NO FEMALE HEAD 75.5 77.1 62.8 70.0 43.2 61.7 88.6 34.0

• FH Employed vs. FH Not Employed

WHO BUYS SUGAR? CONT’D

SUGAR IN THE RAW - SUGAR- GRANULATED C AND H - SUGAR- GRANULATED




RACE - CAUCASIAN 89.5 78.4 88.8 89.0 93.9 98.7 96.8 102.7RACE - NON-CAUCASIAN 139.6 175.8 142.2 138.6 123.2 104.7 112.1 90.7

RACE - AFRICAN AMER. 123.8 122.6 97.2 86.3 151.1 130.3 124.8 94.0

RACE - ASIAN 122.6 344.2 195.3 170.3 43.3 36.9 70.1 136.3RACE - OTHER

RACE 169.4 199.4 199.5 205.4 100.7 89.0 103.3 71.0ETH - HISPANIC 154.6 123.1 200.1 174.2 94.2 87.2 195.3 105.6

• Private label – pretty bland except with African Americans

• Asian – increase in all brands, except in private label• Hispanics – still strong in brand name sugars

PLAYING TUG-A-WAR

The game between C & H and private label C & H found at all the retailers Private label at their heels

DEPTH IN THE SUGAR AISLE

Retailer Total SKUs Unique SKUs

WMT SPR 25 2

WMT MLK 33 8

WMT Campus 2 0

Harp's Har-Ber 21 3

Harp's Garland 20 1

Target 5 4

Sam's 7 3

WHAT SUGAR DO YOU LIKE? ITEM $ (000) DOLLAR

SHAREITEM

PENETRATIONITEM $ PER

ITEM BUYERITEM TRIPS PER

ITEM BUYER% REPEAT

BUYERS (% 2+ TIME BUYERS)

LOYALTY (SHARE OF $

REQ.)

% ITEM $ ON DEAL

% DOLLARS WITH

MANUFACTURER COUPON

C AND H - SUGAR- GRANULATED

TOTAL U.S.

98,219.6 10.1 12.4 $6.80 2.1 44.1 51.9 24.4 7.0

WEST SOUTH CENTRAL

8,329.7 7.2 11.5 $5.59 1.9 35.8 33.5 21.4 11.5


TOTAL U.S.

605,998.3 62.2 50.6 $10.32 3.8 65.1 73.3 13.6 0.1

WEST SOUTH CENTRAL

75,877.3 65.7 52.7 $11.08 4.2 69.1 75.3 8.7 0.1


TOTAL U.S.

1,927.3 0.2 0.3 $5.92 2.0 29.5 29.7 15.7 10.2

WEST SOUTH CENTRAL

NA NA NA NA NA NA NA NA NA

SUGAR IN THE RAW - SUGAR- GRANULATED

TOTAL U.S.

13,255.6 1.4 1.2 $9.36 2.5 37.1 50.6 10.3 6.0

WEST SOUTH CENTRAL

664.8 0.6 0.8 $6.27 1.8 30.6 45.3 6.9 6.4

THE SUGAR CAPTAIN

C&H is the leader in the category with presence across retailers Deals

Private Label gaining presence also Controlled through shelf space

WMT

GROSS MARGINS

PRIVATE LABEL IN THE SUGAR AISLE

Private label is catching up! C & H better watch out!

Wal-Mart Harp’s Target

a look at the sugar category isela mercado-ulloa

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