By Jason Klotz

Overview

Total category sales for Barbecue Sauces in 2007 was$247,875,900

• 108 total category SKUs

• 25.6% item dollars on deal

• Private label accounts for 7% of total SKUs

• Kraft makes up 27.4% of category sales

• Kraft is the only brand in every store

• Kraft has a 20% penetration

Retailer is in control of the category

Stores audited # SKU's # Unique SKUs

Walmart - MLK 76 4

Walmart - Mall 72 0

Harps - Rogers 53 24

Target - Rogers 12 1

Sams Club - Rogers 5 5

Walgreens - Rogers 1 0

Overview

• Main retail competitors – Walmart, Harps and Target• Depth is important in category due to amount of brands• Prevalent national brands

• Kraft• Sweet Baby Rays• HV Foods (KC Masterpiece)

Demographics

FAMOUS DAVE'S - BARBECUE SAUCES

KC MASTERPIECE - BARBECUE SAUCES

KRAFT - BARBECUE SAUCES

STUBB'S - BARBECUE SAUCES

SWEET BABY RAY'S - BARBECUE SAUCES

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

INC - <$20,000 33.9 60.6 100.7 41.4 46.6INC - $20,000-

29,99935.7 71.0 96.5 27.7 70.6

INC - $30,000-39,999

57.8 109.7 117.4 69.5 80.1

INC - $40,000-49,999

141.4 95.6 106.0 85.3 99.2

INC - $50,000-69,999

135.9 120.3 107.5 95.4 120.0

INC - $70,000-99,999

157.8 118.3 102.2 183.0 146.8

INC - $100,000+ 128.3 119.4 79.4 163.9 124.8

• Kraft consistent presence in all income ranges• Specialty barbecue sauces trend in high income households

…Household Income

Demographics

• 1 member households do not buy barbecue sauce• 5+ member households purchase Kraft and KC Masterpiece

FAMOUS DAVE'S - BARBECUE SAUCES

KC MASTERPIECE - BARBECUE SAUCES

KRAFT - BARBECUE SAUCES

STUBB'S - BARBECUE SAUCES

SWEET BABY RAY'S - BARBECUE SAUCES

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

SIZE - 1 MEM47.3 41.9 43.0 82.1 37.4

SIZE - 2 MEM102.4 92.1 79.0 97.5 104.6

SIZE - 3-4 MEM145.9 129.9 136.8 113.2 127.9

SIZE - 5+ MEM90.4 181.0 198.7 113.7 160.0

…Household Sizes buying barbecue sauces

Demographics

• Ages 55+ not the target market for barbecue sauce• Single men buy Stubb’s barbecue

…Ages buying barbecue sauces FAMOUS DAVE'S -

BARBECUE SAUCES

KC MASTERPIECE - BARBECUE SAUCES

KRAFT - BARBECUE SAUCES

STUBB'S - BARBECUE SAUCES

SWEET BABY RAY'S - BARBECUE SAUCES

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

AGE FH - UNDER 35

104.0 123.6 123.0 107.4 114.6

AGE FH - 35-44134.0 136.5 137.0 128.8 153.5

AGE FH - 45-54139.1 120.4 122.2 93.4 130.1

AGE FH - 55+49.5 69.8 80.3 60.7 74.5

AGE FH - 55-6466.9 86.7 99.1 81.9 93.6

AGE FH - 65+31.6 52.5 61.1 39.1 55.0

AGE FH - NO FEMALE HEAD

101.7 72.6 56.0 133.0 50.7

Manufacturer MLK Walmart

Mall Walmart

Harps Rogers

Target Rogers

Kraft % of Total Facings 25% 31% 30% 37%% of Gross Margin 10% 11% 19% 18%N 19 15 12 4

Sweet Baby Rays Inc. % of Total Facings 17% 17% 10% 37%% of Gross Margin 13% 17% 4% 51%N 11 9 5 5

HV Foods % of Total Facings 13% 14% 16% 19%% of Gross Margin 12% 17% 11% 22%N 12 9 9 2

Leading Brands

• Kraft has the most number of SKUs in all 4 stores

• Sweet Baby Rays has the highest gross margins in 3 of the 4 stores.

Brand # of retailers stocking stocking rate

Kraft 6 33.3%

Sweet Baby Rays 4 41.6%

KC Masterpiece 5 31.5%

Leading Brands

• Kraft is the only brand in all 6 stores

• Sweet Baby Rays has the highest stocking rate of all the brands

…National Brands

Category Captain

• Kraft is the leading brand in sales $, SKUs, display face and is the category captain.

• Sweet Baby Rays and KC Masterpiece continue to grow and take market share from Kraft over last 5 years.

Recommendations

Recommendations to Target

• Increase depth if you want to be competitive in the barbecue category

• Differentiate yourself with lesser known, high priced brands

• Avoid Private Labels