EXECUTIVE SUMMARY
MEAT SNACKS CATEGORY OVERVIEW
Dollar Share of Total Snacks
Total U.S. Convenience1
• Meat Snacks are the 4th largest category in the
C‐store channel, representing 8.9% of total U.S. Convenience dollar share
1 Source: IRI All‐Scan Reviews, 52 w/e 8/11/13
Dollar Sales % change YA1
• The Meat Snacks category is growing
MEAT SNACKS BEAT OTHER CATEGORIES IN INCREMENTAL IMPACT & SALES RATES
• Meat Snacks are more incremental to C‐Store than candy
• They have a faster sales rate than cookies and crackers
FLAVORS ARE DRIVING MEAT SNACKS CATEGORY GROWTH
Meat Snacks Flavor Growth
Dollar Sales –
Meat Sticks
Dollar Sales ‐
Meat Sticks
C‐Store Dollar Sales ($M)
L52 Weeks Ending 6/6/13 –
C‐store ($M)
L52 Weeks Ending 6/6/13 ‐
C‐Store ($MM)
‐1%
$500
$400
$300
‐2%
5% CAGR
$100
$80
+2%
$200
$120
$60
11% CAGR
10% CAGR
$40
$100
$20
$‐
$‐
Original
Flavors
Dollar Sales YAGO
Total Sticks
Dollar Sales
Peppered
FY10
Barbecue
FY11
FY12
Sweet & Hot
FY13
• Consistent growth over the past 3 years
• Flavors deliver incremental growth in the stick segment Source: IRI Conv – L52 Wks ending 6/9/13
SLIM JIM IS AMERICA’S #1 MEAT STICK LEADER
Total U.S. Conv. Meat Stick Dollar Share
• Slim Jim represents 54.2% of meat stick dollar share
*Current flavor retail sales based on FY13 total MULOC Latest 52 weeks ending September 15, 2013 Slim Jim’s 7 Leading Flavors
• Slim Jims have 7 of the top 10 fastest turning meat sticks
HIGHER SKU COUNTS HAVE INCREMENTAL POTENTIAL
• Current SKU counts average 40 units
• 41 SKUs account for 70% of volume, while 58 SKUs are responsible for 80%
• Optimal Mix suggests moving distribution to 60+ SKUs results in higher sales volume
MERCHANDISING SOLUTION
Merchandising Challenge:
Create a permanent and dynamic rack that solves the meat snacks category’s historical navigation, clutter and brand/flavor identification display issues. Merchandising Solution:
Innovative Design
o Increases meat sticks holding power by 23% and overall holding power by 6%
o Increases capacity to display jerky o Reduces clutter
o Exposes greater variety of product
Consumer Perception
o Reduces confusion
o Improves navigation
o Improves ability to identify flavor, form and brand
REASONS TO BELIEVE
In‐Market Test Dynamics:
• Final results drove a 20.3% sales increase vs. only 8.2% in control stores
Test Retailer Results:
• Test stores grew 2.5 times faster than the control stores
• Test stores grew 7 times faster than the national average
• Both sticks & bagged items had strong growth
What the Consumers said:
“Other [stores] usually have 4 or 5 flavors. This one has tons. I feel like I’d always have an option here.”
“I’ve never seen so many Beef Jerky [options] either. It’s great.”
NEW 3‐TIER LAYDOWN POG RECOMMENDATIONS
*based on nationally recommended planogram
NEW 4‐TIER LAYDOWN POG RECOMMENDATIONS
*based on nationally recommended planogram
APPENDIX
RACKS CAN BE CUSTOMIZED TO INCLUDE BASKETS (6) OR PEGS (14)
Flexible
merchandising options for side wings… baskets or pegs
RETAILER TESTING INTERCEPT
SHOPPERS FELT THE ORGANIZATION OF THE RACK MADE IT VERY EASY TO SHOP
• Nearly all respondents felt the new Meat Snack stick bins with their helpful labels were viewed as a major improvement in terms of shopability over the standup cardboard boxes.
– “Very helpful! All the prices, all the flavors and all the brands are right here… You don’t have to go hunting for it.”
– “It’s more organized… Before every one was packed into a shelf and had to kind of read every single label on the (stick) before you knew exactly what you were getting.”
– “Everything’s labeled. So if I want a regular Slim Jim, it’s right here. Other ones display them all in canisters sticking up. You have to search through them. This way makes it quicker. Come in, grab what you want and go!”
• The bags of Beef Jerky were easy to read on the lower section of the display.
– “I like that these (bags) are on the bottom since they’re bigger. If sticks were on the bottom, it would be harder to get to them.”
RETAILER TESTING INTERCEPT
THE EXTENSIVE SELECTION OF MEAT SNACK PRODUCTS PLEASANTLY SURPRISED NEARLY ALL OF THE SHOPPERS
• The shoppers that had not seen this display before had no idea that so many flavors were available. Many had selected or expressed an interest in trying something new.
– “The display looks different. I didn’t know they had all these flavors. Before they were in boxes and couldn’t see them behind each other. I never really cared to look behind them. I usually use Regular or Teriyaki. I didn’t know there was a Sweet & Hot!!”
– “I’ve never seen (Slim Jim) Jamaican style before! I would go for stuff I’d never seen before.”
– “Other (stores) usually have 4 or 5 flavors. This has tons! I feel like I’d always have an option here. I don’t always have to get Teriyaki.”
– “I like the new flavors like Bacon and the tangy Honey BBQ.”
• Jerky consumers also liked the wide variety of choices.
– “Most stores only have a couple of bags.”
– “I’ve never seen so many Beef Jerky (options) either. It’s good!”
REASONS TO BELIEVE
In‐Market Test Dynamics:
• Final results drove a 20.3% sales increase vs. only 8.2% in control stores
Test Retailer Results:
• Test stores grew 2.5 times faster than the control stores
• Test stores grew 7 times faster than the national average
• Both sticks & bagged items had strong growth
What the Consumers said:
“Other [stores] usually have 4 or 5 flavors. This one has tons. I feel like I’d always have an option here.”
“I’ve never seen so many Beef Jerky [options] either. It’s great.”
Fourth shelf can be added with two extensions that slip into back corners of the top shelf. Fourth shelf then pegs into the uprights. REASONS TO BELIEVE
Riser bar rotated around will adjust from 7”H to 9”H to accommodate small & larger bag snack product.
In‐Market Test Dynamics:
• Final results drove a 20.3% sales increase vs. only 8.2% in control stores
Third Shelf is adjustable from the standard 16.5” to 14.5” for shorter gondola depth.
Test Retailer Results:
• Test stores grew 2.5 times faster than the control stores
• Test stores grew 7 times faster than the national average
• Both sticks & bagged items had strong growth
What the Consumers said:
“Other [stores] usually have 4 or 5 flavors. This one has tons. I feel like I’d always have an option here.”
“I’ve never seen so many Beef Jerky [options] either. It’s great.”
3 ‘ Inline Rack
REASONS TO BELIEVE
Riser bar rotated around will adjust from 7”H to 9”H to accommodate small & larger bag snack product.
In‐Market Test Dynamics:
• Final results drove a 20.3% sales increase vs. only 8.2% in control stores
Third Shelf is adjustable from the standard 16.5” to 14.5” for shorter gondola depth.
Test Retailer Results:
• Test stores grew 2.5 times faster than the control stores
• Test stores grew 7 times faster than the national average
• Both sticks & bagged items had strong growth
What the Consumers said:
“Other [stores] usually have 4 or 5 flavors. This one has tons. I feel like I’d always have an option here.”
“I’ve never seen so many Beef Jerky [options] either. It’s great.”
4 ‘ Inline Rack
REASONS TO BELIEVE
In‐Market Test Dynamics:
• Final results drove a 20.3% sales increase vs. only 8.2% in control stores
Test Retailer Results:
• Test stores grew 2.5 times faster than the control stores
• Test stores grew 7 times faster than the national average
• Both sticks & bagged items had strong growth
Riser bar can be rotated to adjust height on both 3’ & 4’ Inline racks.
3 ‘ Inline
Rack
Third Shelf is adjustable from the standard 16.5” to 14.5” for shorter gondola depth on both 3’ & 4’ Inline.
What the Consumers said:
“Other [stores] usually have 4 or 5 flavors. This one has tons. I feel like I’d always have an option here.”
“I’ve never seen so many Beef Jerky [options] either. It’s great.”
4 ‘ Inline Rack
RACK SHIPS AS FOLLOWS
4th laydown shelf option with extensions. (note: must be ordered separately)
Every Rack includes:
• 3 Laydown shelves
• 2 Large side baskets
• 4 Small side baskets
• 2 clear caddy corners
• 32 Long Pegs (6 inch)
• 15 ‐ 8’ Pegs
• 12 ‐ 6” Pegs
• 6 ‐ short Pegs (4 inch)
• 38 Flip Tags (UPC tag holders for Pegs)
Optional Rack add‐ons:
• 4th laydown shelf
• 2 Extensions
Combination of pegs & corner caddy. (up to five pegs can be placed on the side, minus the caddy)
Combination baskets & corner caddy. (example here shows two small baskets & one large basket with corner caddy.)
Quick Bin & Peg Count 4 Shelf Laydown ‐
8 Bins across x 4 Shelves Deep.
Total 32 Bins.
3’ Inline Rack, 9 across x 3 Deep.
Total 27 Bins.
Riser Bar ships w/8 Pegs/UPC tags.
3 Shelf Laydown ‐
8 Bins across x 3 Shelves Deep.
Total 24 Bins.
4’ Inline Rack, 12 across x 3 Deep.
Total 36 Bins.
Riser Bar ships w/10 Pegs/UPC tags.