Professional Documents
Culture Documents
Kenlake 3 Year Business Plan - Combined
Kenlake 3 Year Business Plan - Combined
Kenlake
Industry
Profile,
Consumer
Insights
and
Product
Performanc
e
Contents
Overview (All Categories)
Executive Summary
National Trends
Kroger Trends
Recommendations
Complete Index
Executive Summary
Snack Nuts
National Trends
51% of consumers see nuts as everyday snack (in 1989 this was
14%)
Key Snack Food – Tonnage up 47.4% since 2000
Expected tonnage growth at 22% over the next 5 years
Largest segment is still peanuts at 26% and cashews at 22%,
almonds are the fast growing up 29% for 05
Snack nuts are a 2.4B category with only 39.7% coming from
Grocery, 39.4% from Supercenters
14.2% share is Drug and 6.5% clubs. Clubs are the fastest
growing segment
There was a 1% channel migration to Drug and Supercenters in
05.
CB has high loyalty nationally
Executive Summary
Snack Nuts
Kroger Trends
Kroger out performs retail peer group
Weakness at North West Divisions (QFC & FM)
Margin for 05 was off -9.19% with sales flat and units up 4.34%
63.9% unit share with FM and Smiths as the greatest growth opts
Recommendations
Package redesign and consistency as well as innovative plastic tubs and
gusset bags
Premium Nuts (flavors, coated specialty-Virginia Large Peanuts)
Produce expansion in Produce (growing department)
Continue off shelf merchandising (shippers and holiday packs)
Executive Summary
Hot Cereal
National Trends
Down 3% from 03 to 05
Growth expected at 8.7% for next 5 years
1.7B category with 2/3 of sales coming from traditional grocery
CB has a higher repeat purchase than Quaker
Consumer shift to low sugar and sugar free products (where growth
is over the next 5 years)
Natural and Organics are emerging and will carve out a segment of
the category
Executive Summary
Hot Cereal
Kroger Trends
Kroger is stronger in penetration and growth than peers
Up in as sales 7.56% and units 15.37%
Kroger has 32.4% unit share with Quaker at 58.3%
New Disney items planned for 06 at new retail tier
Recommendations
• Additional Flavors
• Cross merchandise shippers in key areas (near produce, bakery and dairy
case)
• Trial Size packets to get consumer trial, consumers are loyal when they try
CB
• Convenience single serve should be watched as a possible growth area (new
innovation)
Executive Summary
Baking Nuts
National Trends
• Baking nuts seen as healthy snack food for desserts
• Key components for salads, Asian and baking
• Diamond only dominant brand in category with solid loyalty nationally
Executive Summary
Baking Nuts
Kroger Trends
Divisions are growing and are strong against peer group
CB is up significantly in sales, units and GM
Kroger has a 71% unit share of the category with Diamond at 21.5%
Recommendations
Consider adding PS or changing to PS. Need to update packaging to a more
premium look
Look to promote CB baking nuts as 100% category solution with CCM team
More points of interruption in produce, frozen, specialty sections with clip
strips
Address any gaps in product offerings versus Diamond
Drive trial through loyalty offerings
Executive Summary
Cocoa
National Trends
European and blends seen as high profile at recent Fancy Food Show in San
Francisco
Chocolate blends are offered at coffee shops (Starbuck’s and other premium
sellers)
Executive Summary
Cocoa
Kroger Trends
Category flat in sales and CB down -4.7%.
Both brands and CB spending to drive tonnage units were up
GM down -7.8% and -9.0% respectively
Converting to Disney on canisters
Recommendations
Update PS with new sku’s and packaging for focus on more premium
Mix-ins (single serve) as an option here as well
Continue to merchandise with shippers
Executive Summary
Gelatin/Puddings
National Trends
Gelatin/Puddings have declined by -4% since 2000 in consumption
Consumption is expected to continue to decline through 2010
Gelatins are at $190M total sale with puddings at $299M nationally
80% of this gelatin buyers purchased through traditional grocery
84% of pudding buyers purchased through traditional grocery
Category base sales will stabilize at core users
Consumers have moved to RTE
Executive Summary
Gelatin/Puddings
Kroger Trends
Kroger out performs retail peer group significantly
Weakness at North West Divisions (QFC & FM)
Sales were up .66%, units 1.29% and GM down -3.83% (category down
slightly)
CB has a 27.1% unit share
Disney items are coming in 06
Recommendations
Package redesign (invest or exit)
Focus on larger sizes rationalizing sku’s
Continue to merchandise at key selling times (Holidays) through shippers
Executive Summary
Powdered Drink Mix
National Trends
From 2000-2004 category decreased 11%
Sales rebounded nationally in 2005
Sales are expected to grow 3% by 2010
Category is a $1.2B in sales nationally
61% is purchased in traditional grocery
Kool-Aid has a strong loyalty and high repeat purchases
Category is being driven by mix-ins
Executive Summary
Powdered Drink Mix
Kroger Trends
Kroger out performs the peer group (double in penetration)
Category up 13.1% in sales down in units 3.7%, CB down -9.0% sales flat in
units
Kraft (Crystal Light and Kool-Aid) has a 82% unit share
Packets are being converted to Disney
Kroger is 22 sku’s of mix-ins in 06
Recommendations
Look at investment on mix-in this trend looks to have staying power
Continue off shelf merchandising for key selling times
Executive Summary
Dried Fruit
National Trends
Is a $1.6B category nationally
64% of sales are in traditional grocery
CB has a high loyalty and repeat purchase nationally
Dried fruit seen as a healthy snack by consumers
Executive Summary
Dried Fruit
Kroger Trends
Category and CB are up across sales, units and GM
CB penetration is 16% in sales and 18% in units (Raisins)
$60M category at Kroger
No dominant brand outside of Raisins
Recommendations
Barriers to business entry are low
Components can be used in other products such as Trail Mix
Current facility and equipment can be utilized with this product line
Executive Summary
Trail Mix
National Trends
$306M category nationally
47% of sales are coming from the grocery channel
Walmart accounts for 25.6% and Clubs are at 6.0%
16.3% of sales come from other channels i.e. drug and convenience.
Nationally consumers are very loyal to CB.
Executive Summary
Trail Mix
Kroger Trends
We currently have no trail mix in CB
Trail mix is a $4 Million dollar category at Kroger
Sales are up 6.8%, units are up 2.2%
Recommendations
Use existing facilities and products to create a line of CB
Trail Mixes
Create in both gusset bag and tubs for trial (consumers are
visual with trail mix)
Current facility and equipment can be utilized with this
product line
dunnhumby
Kenlake
3-Year Business
Plan
Kenlake Returns to
Company
Snack Nut GM $14,516,00
0$7,811,00
Baking Nut GM
0
$6,854,000
Hot Cereal GM
Desserts GM $4,384,000
Powdered Beverage $2,983,000
GM $12,297,00
EBITDA 0
Kenlake Total
KENLAKE
Grow th vs. Plant Contribution Margin
$14,000,000
MAINTAIN WINNERS
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Merchandising
Brand block set
KOMPASS period 5
Graphics
Q4 transition
‘Fresh’
communication
Tube nuts dump
bins
1 x 2 displays
Snack Nuts
Go-to-Market Strategy
SOC
65.7 in 2005
67.0 goal for 2006
PS role
Execution-driven
LCM participation
Canzilla Q4 plan
10/$10’s on
peanuts
6 planned in ‘06
Buying strategy
Snack Nuts New sku’s for
‘06
Cashew halves 16z
$2.3M sales, 1.4M units
Sunflower kernels
$223K sales, 576K units
Gourmet nuts in Q4
‘Finest’ MyLife customer
Trader Joe’s target
20 items, 50 store test
PS Virginia Super Large
Peanuts
Q4 launch via 1 x 2
shippers
Updating Kroger
Snack Nut Category
Current design is 10+
years old and does not
convey product quality
Branding is not
consistent across
franchise
Competitive Pressure
(planters campaign, more
market entrants...)
Capitalize on High
Market Share
Objectives
Create a strong identity
for Kroger nuts at shelf
Enhance shop-ability
through brand
recognition and clarity
of offerings
Insure design speaks to
quality and freshness
of product
Be on shelf with new
design for 4th quarter
Achieving Success
Market Research -
Conducted Competitive
Audit of Category
Consumer Research -
Qualitative Research to
ensure an effective
design system
May 10-11 Focus Groups
Win at FMOT - Increase
presence in store, at
shelf
Snack Nuts Threats
Planters ’06 strategy
21.9% KR share vs. 37.8% US FDM
share per AC Nielsen
‘Famously Fresh’ spending campaign
Pallet ready displays and shippers
New sku’s
- Indulgent line, NUT-trition, Heart Healthy,
South Beach, Trail Mixes, Tube Nuts,
flavored peanuts
MR Peanut 100th anniversary
celebration
Baking Nuts
Go to Market Strategy
Multi-purpose snack
Good for you
Lifestyle-driven
New sku
2.25z Black Walnuts
SOC
69.5 in 2005
71.0 goal for 2006
100% solution?
PS brand
development?
Baking Nuts Clip Strips
Solid profit
potential
SKU Scan GM EBITDa
3 sku’s in p6
Annual projections
$3.5 MM retail
sales
1.5 MM units
1 x 2 shipper
Disney enterprise-
wide launch in p9
DMS Oatmeal Proforma
2006
Kenlake Marketing
Advisory Board
Members
T. Alexander, C. Mendelsberg, M. Moore,
Frito Lay Honey Roast- We have to match Anheiser Busch formula and the volume
potential is 1.6 MM lbs
Brach’s is secure for this year
Kashi is secure for the year, and there are no other co-packers. We are not certain that
Kelloggs is committed to this business for the long term
Nutrisystem instant oatmeal research is ongoing and we should submit a bid by July
1800
1600
1400
1200
1000 Budgeted
800 Actual
600
400
200
0
10
11
12
13
1
2
3
4
5
6
7
8
9
1
2
3
• At Kroger, The Canned Nuts
Category and Corporate Brand Are
Outperforming the Remaining Market
Canned Nuts –
Canned Nuts
Corporate Brand
8.0 4.0
52 Weeks Fiscal YTD Period 13 52 Weeks Fiscal YTD Period 13
6.0
2.0
4.0
0.0
2.0
0.0 -2.0
-2.0
-4.0
-4.0
-6.0
-6.0
-8.0 -8.0
Kroger Rem FDM* WalMart Kroger Rem FDM* WalMart
DOLLARS
Period End 1/28/06
% CHG VS YAG *Rem FDM excludes WalMart
0.0
10.0
-10.0
5.0
-20.0
0.0
-30.0
-5.0 -40.0
-10.0 -50.0
Kroger Rem FDM* WalMart Kroger Rem FDM* WalMart
DOLLARS
Period End 1/28/06 *Rem FDM excludes WalMart
% CHG VS YAG
Copyright © 2006 ACNielsen
a VNU business
• At Kroger, The Oatmeal Category
and Corporate Brand Are
Outperforming the Remaining Market
Oatmeal –
Oatmeal
Corporate Brand
16 25.0
52 Weeks Fiscal YTD Period 13 52 Weeks Fiscal YTD Period 13
14
20.0
12
15.0
10
8 10.0
6 5.0
4
0.0
2
-5.0
0
-2 -10.0
Kroger Rem FDM* WalMart Kroger Rem FDM* WalMart
DOLLARS
% CHG VS YAG
Period End 1/28/06 *Rem FDM excludes WalMart
401.9 407.5
391.8
377.3
359.1
334
294.1
261.1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Since 2000 the tonnage on snack nuts has increased 47.4% and is expected to grow
another 22% in the next five years.
Source: Euro-monitor
Snack Nuts sales will continue strong growth
over the next 5 years
Nuts - US Retail Dollars (Billions)
4.5
4.2
4.0 3.9
3.7
3.5 3.4
3.2
3.0 2.9
2.5
2.5
2.1
2.0 1.9
1.8 1.8
1.5
1.0
0.5
0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Snack nuts sales have increased 61% over past 5 years and is expected to grow
another 45% by 2010
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying Snack
Nuts?
WALMART
$572,048,192
28.2%
GROCERY
$789,436,288
39.0%
WAREHOUSE CLUB
$132,648,080
6.5%
Total Projected dollar sales of- NUTS - CANS category in all the channels are - $2,437,683,750
• Snack nuts is a $2 billion category with 1/3 of total sales coming from traditional
grocery
Consumer Loyalty - Brands
52.9%53.1% 53.2%50.3%
36.8%
29.8%
24.1% 25.5%
21.6% 23.3% 21.3%19.9%
PLANTERS -
NUTS CANS
NUTS CANS
CALIFORNIA
NUTS CANS
NUTS CANS
NUTS CANS
DIAMOND -
EMERALD
IMPERIAL
CTL BR -
FISHER -
- NUTS
NUTS -
CANS
OF
LO YALTY % O f R E PEAT P U RC HA SES
S ou rce: ACN Homescan Consume r F acts -TO TAL U.S . - 52 W eeks e nd ing 12/25 /04
C TL B R - NU TS CA NS bran d bu yers are 52.94% lo yal, and 53.0 9% o f those have purch ased the b ran d mo re than once
• There is a high level of loyalty and repeat purchases in corporate brand snack nuts
D A Y M O N
WOR LDW I DE
Category Overview
Snack Nuts
Peer Comparison
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Nuts CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 40.1 (2.4) 47.2 (1.9) 13.3 (1.3) 14.6 (2.0)
CENTRAL 49.1 1.0 56.3 0.6 19.1 0.0 24.0 0.7
CINCINNATI 50.1 (1.8) 57.0 (0.1) 22.5 2.8 24.3 1.8
COLUMBUS 52.0 4.5 59.2 4.0 29.4 4.1 34.3 4.4
DALLAS 43.5 3.1 49.2 5.5 21.1 2.6 19.0 2.2
MICHIGAN 49.1 2.5 58.8 3.6 20.7 (0.5) 28.2 (0.4)
DELTA 43.9 1.1 47.6 2.7 20.2 1.4 18.0 1.1
HOUSTON 43.0 2.6 47.6 4.0 16.9 (0.9) 13.3 (0.4)
MID-ATLANTIC 43.4 (2.2) 54.3 0.1 35.6 10.6 30.3 4.6
MID-SOUTH 49.1 (4.4) 56.6 2.0 16.1 (0.7) 20.2 (0.8)
DILLONS 47.7 3.5 48.9 4.1 25.1 1.4 24.5 0.4
KING SOOPERS 34.1 0.4 40.5 2.2 27.4 0.9 28.5 0.7
QUALITY FOOD CENTER 17.2 0.1 17.8 2.0 30.1 (1.7) 29.0 (0.6)
FRYS 46.9 (0.9) 47.4 (2.4) 22.9 1.0 17.4 (0.3)
SMITHS 33.6 (7.1) 35.7 (5.4) 32.7 1.9 30.9 2.0
FOOD 4 LESS 28.6 8.7 31.0 9.1 27.7 (5.9) 28.0 (4.8)
FRED MEYER 31.7 (0.6) 27.0 (0.7) 32.4 (1.2) 31.5 (0.7)
RALPHS 29.0 3.6 29.0 5.8 25.2 (2.5) 22.7 (1.1)
TOTAL KROGER 40.6 0.5 45.6 2.0 25.3 0.3 24.1 0.0
• Kroger is performing well against their overall benchmark in snack nuts. They are
out pacing in penetration, unit sales and overall growth
Kroger Internal Scanned
Data
Snack Nuts
Snack Nuts Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$78,465,877 5.28 63.9% $50,139,974 0.57
Units % Chg Units % Chg
21,687,988 5.63 67.0% 14,535,818 4.34
GM$ % Chg GM$ % Chg
$25,630,623 (2.89) 58.0% $14,869,235 (9.19)
• We promoted heavily and gave margin however we did not outpace category growth.
Units grew at a slightly less rate as the category.
Snack Nuts Overview
Division Sales TY % Chg $/Str CB %
014 Cincinnati $3,429,504 0.34 $ 31,177 69.3%
620 King Soopers $4,115,216 (0.27) $ 28,381 68.0%
024 Mid-South $4,277,132 0.63 $ 27,070 69.6%
029 Mid-Atlantic $3,229,266 (0.29) $ 24,280 67.8%
016 Great Lakes $5,804,950 5.31 $ 23,597 70.0%
011 Atlanta $5,065,081 2.27 $ 22,816 65.6%
034 Houston $2,879,600 6.79 $ 22,151 61.6%
701 Fred Meyer $2,594,860 (7.50) $ 19,808 58.1%
660 Frys $2,172,332 3.40 $ 19,396 67.6%
035 Dallas $1,614,487 3.72 $ 18,140 62.0%
615 Dillon $2,110,123 (1.99) $ 18,035 74.4%
025 Delta $2,044,772 1.49 $ 17,781 68.6%
703 Ralphs $5,299,488 8.17 $ 16,206 54.9%
021 Central $2,392,464 (4.74) $ 15,844 69.1%
706 Smiths $1,825,432 (22.87) $ 14,261 44.7%
705 QFC $706,144 16.46 $ 8,117 43.4%
704 Food 4 Less $569,412 (12.25) $ 4,314 60.3%
708 Food 4 Less - Midwest $9,711 - $ 1,942 90.6%
TOTAL KROGER $50,139,974 0.57 $ 19,756 63.9%
• There are 11 division outpacing total Kroger penetration of 63.9%. Smith’s, Food 4
Less, and Fred Meyer took significant declines in 2005
Snack Nuts Overview
Brand Unit Share
STUCKEYS SHIRK IRWIN SUPERIOR
0.48% 0.21% 0.19% 0.14%
P&G BEV VIRGINIA
0.97% 0.13%
BERNER
2.02%
NABISCO
28.69%
KROGER
67.02%
• Corporate Brands has 67% of the total unit share. The category is fragmented by
small and regional brands
Hot Cereal
Trends
Hot Cereal Consumption
US Consumers ate 211,000 Tons of Hot Cereals in
2005
Hot Cereals - US Consumption (Thousands)
229.7
225.3
220.6
218.1
216.8
215.4
214.4
212.6
211.2
207.9
205.1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Hot Cereal took a 3% decline in consumption from 2003 to 2005 based on low carb
trends however it has recovered and grow of 8.7% is expected over the next 5 years
Source: Euro-monitor
Hot Cereal will continue steady sales growth over the next 5
years
Hot Cereals - US Retail Dollars (Billions)
1.6
1.4
1.4
1.3 1.3
1.2 1.2
1.2
1.1 1.1 1.1 1.1 1.1
1.0
1.0
0.8
0.6
0.4
0.2
0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Sales are expected to grow by 27% of the next 5 years where they have remained
flat for the previous 5 years
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying Hot
Cereal?
A_O GROCERY
$77,726,728
4.6%
A_O CHANNELS
$163,502,864
9.7%
GROCERY
$1,241,841,536
73.4%
Total Projected dollar sales of- CEREAL - HOT category in all the channels are - $1,821,398,875
• Total category projected sales for all channels $1.7B with 2/3 of sales coming from
traditional channels
Consumer Loyalty - Brands
62.6%
52.8% 54.8%
51.9%
35.6%33.0%
31.3% 30.4%
25.4% 24.0%
MALT-O-MEAL
CEREA L HOT
CEREA L HOT
CEREA L HOT
CEREA L HOT
RALSTON -
NABISCO -
QUA KER -
- CEREAL
CTL BR -
HOT
LO YALTY % O f R E P EAT P U RC HA S E S
S ou rce: ACN Ho m escan Co nsu m e r F acts -T O TAL U.S . - 52 W eeks e nd ing 12/25 /04
• Quaker and Corporate Brands have a high loyalty factor in the category with CB
having a higher repeat purchase rate based on loyalty.
D A Y M O N
WOR LDW I DE
Category Overview
Hot Cereal
Peer Comparison
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Hot Cereal CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 25.2 (0.8) 39.2 0.4 17.4 (2.3) 22.9 (3.1)
CENTRAL 28.2 1.1 41.4 3.3 17.8 (1.1) 22.1 (2.1)
CINCINNATI 22.4 0.6 34.3 4.1 15.3 (2.1) 19.7 (3.0)
COLUMBUS 31.1 2.4 43.6 4.1 18.6 0.2 24.4 1.7
DALLAS 18.1 0.0 28.3 2.9 22.7 0.1 34.5 4.2
MICHIGAN 25.7 1.3 38.9 3.5 22.0 0.2 29.2 1.4
DELTA 25.9 (2.9) 36.8 (2.9) 25.2 0.0 34.6 (0.4)
HOUSTON 16.6 0.1 26.2 3.2 16.5 (1.3) 23.1 (0.9)
MID-ATLANTIC 22.7 (0.8) 33.6 0.3 15.6 (3.4) 19.8 (3.0)
MID-SOUTH 24.2 (1.1) 33.8 (1.1) 20.6 (2.9) 26.1 (2.6)
DILLONS 25.3 (0.5) 38.2 1.7 26.2 (2.0) 35.0 (3.1)
KING SOOPERS 18.6 (2.2) 27.5 (0.2) 19.1 (3.6) 24.0 (5.0)
QUALITY FOOD CENTER 10.8 1.3 15.4 2.9 18.8 (4.0) 22.7 (4.7)
FRYS 21.0 (3.0) 28.8 (1.9) 19.8 (3.9) 26.1 (4.4)
SMITHS 20.8 (1.6) 29.2 (0.7) 20.9 (1.7) 29.6 (1.1)
FOOD 4 LESS 32.9 (0.1) 48.2 0.8 18.7 (4.0) 23.7 (5.5)
FRED MEYER 16.9 (1.5) 23.7 0.2 19.7 (2.7) 23.5 (2.1)
RALPHS 16.7 0.2 25.6 4.1 16.8 (3.5) 21.6 (5.8)
TOTAL KROGER 15.0 1.5 22.2 3.3 10.6 0.2 13.8 0.6
• Kroger out performs their peer groups in both sales and units in hot cereal. Kroger
also is showing greater growth then their peer growth even with substantially great
overall shares. This will indicate that the category continues to have room for CB
growth.
Kroger Internal Scanned
Data
Hot Cereal
Hot Cereal Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$112,278,345 7.26 22.0% $24,715,596 7.56
Units % Chg Units % Chg
$44,848,364 7.79 32.4% $14,520,421 15.37
GM$ % Chg GM$ % Chg
$37,014,216 7.06 20.1% $7,428,612 (0.76)
• CB sales growth stayed at pace with the overall category. The units were up
substantially with margin remaining flat. Margin spend drove tonnage.
Hot Cereal Overview
Division Sales TY % Chg $/Str CB %
704 Food 4 Less $2,481,099 2.09 $ 18,796 32.0%
016 Great Lakes $3,580,394 18.82 $ 14,554 28.0%
014 Cincinnati $1,461,237 16.02 $ 13,284 23.0%
011 Atlanta $2,531,442 13.28 $ 11,403 23.0%
660 Frys $1,208,127 (0.97) $ 10,787 21.2%
025 Delta $1,198,937 4.62 $ 10,426 26.3%
024 Mid-South $1,638,740 9.58 $ 10,372 23.8%
620 King Soopers $1,324,441 (5.75) $ 9,134 18.3%
701 Fred Meyer $1,183,356 4.66 $ 9,033 17.7%
021 Central $1,347,213 12.88 $ 8,922 27.7%
029 Mid-Atlantic $1,076,136 9.74 $ 8,091 23.0%
706 Smiths $956,239 5.69 $ 7,471 21.7%
703 Ralphs $2,423,942 (1.91) $ 7,413 16.5%
708 Food 4 Less - Midwest $33,533 254.35 $ 6,707 7.2%
035 Dallas $589,353 7.54 $ 6,622 14.2%
034 Houston $788,044 14.75 $ 6,062 15.5%
615 Dillon $675,304 2.60 $ 5,772 23.3%
705 QFC $218,059 14.68 $ 2,506 10.7%
TOTAL KROGER $11,093,453 7.56 $ 4,371 22.0%
NABISCO
4.16%
QUAKER
KROGER 58.33%
32.38%
• Quaker remains the category powerhouse with Kroger a solid category presence.
Baking Nut
Trends
Baking Nuts Consumption
US Consumers ate 334,000 tons of baking nuts in
2005.
Nuts - US Consumption (Thousands)
401.9 407.5
391.8
377.3
359.1
334
294.1
261.1
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Since 2000 the tonnage on nuts has increased 47.4% and is expected to grow
another 22% in the next five years.
Source: Euro-monitor
Baking Nuts will continue strong growth over
the next 5 years
Nuts - US Retail Dollars (Billions)
4.5
4.2
4.0 3.9
3.7
3.5 3.4
3.2
3.0 2.9
2.5
2.5
2.1
2.0 1.9
1.8 1.8
1.5
1.0
0.5
0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Nut sales have increased 61% over past 5 years and is expected to grow another
45% by 2010
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying Baking
Nuts?
WALMART
$165,530,880
WAREHOUSE CLUB 10.2%
$146,195,840
9.0%
MASS MERCH W_SUPERS
$26,775,740
1.6%
A_O GROCERY
$39,215,888
2.4%
Total Projected dollar sales of- NUTS - BAGS category in all the channels are - $1,859,425,750
• Total category projected sales for all channels $1.6B with 69% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands
49.4%
42.3%
39.3%
35.0%
32.4%
28.8% 29.6%
18.0% 19.8%
13.9%
DIAMOND -
DIAMOND -
PLANTERS
CTL BR -
FISHER -
- NUTS
BAGS
BAGS
BAGS
BAGS
BAGS
BLUE
NUTS
NUTS
NUTS
NUTS
LO YALTY % O f R EP EAT P U RC HA S E S
S ource: ACN Ho mescan Consume r F acts -T O TAL U.S . - 52 W eeks e nd ing 12/25 /04
C TL B R - NU TS BA GS brand buyers are 49.43% loyal, an d 42.30% of th ose h ave p urchased the brand more than o nce
• Corporate Brands have the highest loyalty and repeat purchase in Baking Nuts.
Diamond nuts has the next highest.
D A Y M O N
WOR LDW I DE
Category Overview
Baking Nuts
Peer Comparison
Baking Nuts
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Nuts CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 40.1 (2.4) 47.2 (1.9) 13.3 (1.3) 14.6 (2.0)
CENTRAL 49.1 1.0 56.3 0.6 19.1 0.0 24.0 0.7
CINCINNATI 50.1 (1.8) 57.0 (0.1) 22.5 2.8 24.3 1.8
COLUMBUS 52.0 4.5 59.2 4.0 29.4 4.1 34.3 4.4
DALLAS 43.5 3.1 49.2 5.5 21.1 2.6 19.0 2.2
MICHIGAN 49.1 2.5 58.8 3.6 20.7 (0.5) 28.2 (0.4)
DELTA 43.9 1.1 47.6 2.7 20.2 1.4 18.0 1.1
HOUSTON 43.0 2.6 47.6 4.0 16.9 (0.9) 13.3 (0.4)
MID-ATLANTIC 43.4 (2.2) 54.3 0.1 35.6 10.6 30.3 4.6
MID-SOUTH 49.1 (4.4) 56.6 2.0 16.1 (0.7) 20.2 (0.8)
DILLONS 47.7 3.5 48.9 4.1 25.1 1.4 24.5 0.4
KING SOOPERS 34.1 0.4 40.5 2.2 27.4 0.9 28.5 0.7
QUALITY FOOD CENTER 17.2 0.1 17.8 2.0 30.1 (1.7) 29.0 (0.6)
FRYS 46.9 (0.9) 47.4 (2.4) 22.9 1.0 17.4 (0.3)
SMITHS 33.6 (7.1) 35.7 (5.4) 32.7 1.9 30.9 2.0
FOOD 4 LESS 28.6 8.7 31.0 9.1 27.7 (5.9) 28.0 (4.8)
FRED MEYER 31.7 (0.6) 27.0 (0.7) 32.4 (1.2) 31.5 (0.7)
RALPHS 29.0 3.6 29.0 5.8 25.2 (2.5) 22.7 (1.1)
TOTAL KROGER 40.6 0.5 45.6 2.0 25.3 0.3 24.1 0.0
• The majority of the Kroger divisions are growing in both sales and unit penetration.
Food 4 Less and Ralphs are both showing strong sales and unit penetration growth
against their peer groups which are both declining.
Kroger Internal Scanned
Data
Baking Nuts
Baking Nuts Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$37,717,670 11.81 63.6% $23,992,371 22.55
Units % Chg Units % Chg
14,080,257 6.02 71.0% 9,990,179 13.68
GM$ % Chg GM$ % Chg
$14,593,555 0.89 52.4% $7,646,259 5.81
• Corporate brands are up significantly in sales, units, and margin over the total
category. Corporate Brands has a very strong sales, units, and gross margin
penetration in this category.
Baking Nuts Overview
Division Sales TY % Chg $/Str CB %
024 Mid-South $2,837,673 17.50 $ 17,960 88.6%
034 Houston $1,834,327 24.17 $ 14,110 86.8%
014 Cincinnati $1,506,860 11.86 $ 13,699 75.3%
016 Great Lakes $3,268,537 15.31 $ 13,287 79.4%
660 Frys $1,473,283 17.88 $ 13,154 68.1%
620 King Soopers $1,711,098 10.50 $ 11,801 48.3%
011 Atlanta $2,571,501 16.51 $ 11,583 85.9%
025 Delta $1,309,968 24.97 $ 11,391 85.0%
035 Dallas $995,454 24.11 $ 11,185 85.8%
029 Mid-Atlantic $1,266,145 7.11 $ 9,520 71.9%
021 Central $1,425,971 13.34 $ 9,444 81.0%
701 Fred Meyer $1,023,923 60.28 $ 7,816 45.4%
615 Dillon $909,042 11.31 $ 7,770 65.7%
706 Smiths $765,457 18.70 $ 5,980 41.6%
708 Food 4 Less - Midwest $21,932 895.95 $ 4,386 83.0%
704 Food 4 Less $354,380 407.01 $ 2,685 38.3%
703 Ralphs $656,050 - $ 2,006 16.6%
705 QFC $60,770 69.84 $ 699 6.2%
TOTAL KROGER $23,992,371 22.55 $ 9,453 63.6%
• 12 Divisions are outpacing Kroger overall in penetration. All divisions are showing
strong positive sales growth over last year.
Baking Nuts Overview
Brand Unit Share
MAVE ENTERHERMAN NUT CALIFORNIA
FLANIGAN
0.67% 0.11% 0.08%
0.71%
VIGO
RODDENBERY
0.03%
1.33%
AZAR
4.61%
DIAMOND
21.49%
KROGER
70.95%
• Kroger owns the majority of the unit share at 71%. The other significant brand in the
category is Diamond with 21.5% share
Gelatins/Puddings
Trends
Gelatin/Pudding Consumption
US Consumers ate 367,000 tons of Dessert Mixes
in 2005.
383.3
379.7
377.9
376.5
370
367.5
366.1
364.3
362.3
360.6
357.8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Euro-monitor
Gelatin/Pudding will continue strong growth over the next 5
years
Dessert Mixes - US Retail Dollars (Billions)
2.1
2.0 2.0
1.9
1.8 1.8 1.8
1.7 1.7 1.7 1.7
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
• Sales are expected to grow slightly by 16% over the next 5 years where they
remained flat for the previous 5 years.
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying
Gelatins?
W AL MART
W AR EHO USE CLUB $22,477,164
$357,200 11.8%
0.2%
MA SS M ERCH W_SUPERS
$3,972,201
2.1%
G RO CERY
$148,803,728
78.3%
So urce: ACN Ho m escan Con su m er Facts-TO TAL U.S. - 52 W eeks end in g 12/25/04
To tal Pro jected do llar sales o f- G ELA T IN-SW EETENED -MIX catego ry in all the ch an nels are -
$231,518,766
• Total category projected sales for all channels $190M with 78% of sales coming from
traditional Grocery channels.
Where are Consumers Buying
Puddings?
A_O G ROCERY
$8,133,866
2.7%
A_O CHANNEL S
$12,752,138
4.3%
G RO CERY
$243,607,344
81.3%
So urce: ACN Ho m escan Con su m er Facts-TO TAL U.S. - 52 W eeks end in g 12/25/04
To tal Pro jected do llar sales o f- PUDDING - S WEET ENED - MIX catego ry in all the ch ann els are -
$324,316,844
• Total category projected sales for all channels $299M with 81% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands
TRUE FALSE
LOYALTY % Of REPEAT PURCHASES
80.7%
54.4%
49.4%
39.9%
33.5%
28.3%
JELL-O - GELATIN SWTND MIX CTL BR - GELATIN SWTND MIX ROYAL - GELATIN SWTND MIX
Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04
CTL BR - GELATIN SWTND MIX brand buyers are 54.41% loyal, and 33.45% of those have
purchased the brand more than once
• Even though Jell-o has a higher loyalty base it has a low repeat purchase compared to
Kroger that has the second highest loyalty base but a stronger repeat purchase
considering its loyalty.
D A Y M O N
WOR LDW I DE
Category Overview
Gelatins/Puddings
Peer Comparison
Gelatins
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Gelatin Mixes CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 34.2 0.3 46.9 2.4 3.3 0.2 4.2 0.2
CENTRAL 35.3 (1.6) 49.2 3.0 15.5 (0.8) 22.5 (0.5)
CINCINNATI 32.7 (0.6) 41.7 0.4 8.7 0.7 12.9 1.0
COLUMBUS 39.5 0.2 50.9 4.3 6.7 (0.6) 10.6 0.2
DALLAS 27.7 (0.3) 40.8 2.1 12.7 7.2 21.9 12.1
MICHIGAN 28.5 (0.3) 40.5 (0.8) 10.5 (0.3) 15.4 1.1
DELTA 37.8 1.4 53.7 1.3 13.5 2.3 22.8 3.3
HOUSTON 25.8 (1.2) 38.7 0.3 8.1 0.8 13.1 1.5
MID-ATLANTIC 40.4 0.9 57.5 2.5 3.5 0.4 5.1 0.4
MID-SOUTH 34.0 (0.3) 46.7 0.3 9.2 0.2 12.3 (0.1)
DILLONS 35.1 0.5 44.4 2.4 16.4 1.2 22.8 1.3
KING SOOPERS 25.2 3.2 32.5 8.3 12.1 2.9 15.9 3.4
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 13.3 1.8 22.4 1.5
FRYS 41.8 (4.8) 57.0 (1.3) 14.4 1.0 21.9 0.8
SMITHS 34.9 (0.1) 55.0 3.4 7.8 2.1 12.2 2.5
FOOD 4 LESS 25.0 0.4 32.5 0.6 4.2 (0.2) 8.7 (0.8)
FRED MEYER 0.0 0.0 0.0 0.0 11.5 1.1 20.3 (0.1)
RALPHS 11.1 1.6 15.0 0.7 5.5 2.0 10.6 2.8
TOTAL KROGER 27.6 0.2 41.0 1.7 8.3 1.1 14.2 1.5
• All Kroger Divisions with the exception of QFC and Fred Meyer are out-performing
their peer groups in both sales and units in Gelatins. The majority of the Kroger
divisions are down in sales penetration. King Soopers is growing significantly in both
sales and unit penetration This could be contributed to families shopping for
convenience switching to gelatin cups.
Peer Comparison
Puddings
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Pudding Mixes CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 29.5 (1.1) 41.3 (2.8) 2.0 (0.3) 3.0 (0.7)
CENTRAL 36.6 (1.3) 52.2 1.0 13.3 (2.2) 19.5 (3.3)
CINCINNATI 32.2 (0.6) 43.0 (1.7) 7.9 0.5 12.3 0.9
COLUMBUS 33.2 1.0 49.1 3.3 7.5 (0.8) 13.0 (0.4)
DALLAS 22.6 (1.5) 29.9 (2.8) 7.4 3.2 13.4 7.3
MICHIGAN 28.2 0.2 43.2 1.4 11.6 (1.4) 17.4 (1.9)
DELTA 33.9 (1.5) 48.7 (1.0) 9.3 0.6 16.7 (0.3)
HOUSTON 21.6 (1.3) 29.8 (2.2) 8.6 (0.3) 12.6 (0.7)
MID-ATLANTIC 33.0 (2.2) 47.4 (2.5) 2.2 (0.1) 3.2 (0.4)
MID-SOUTH 28.6 (2.4) 41.3 (2.3) 7.6 (0.8) 11.1 (1.6)
DILLONS 30.4 (0.5) 40.5 (1.0) 9.5 (0.1) 14.7 (1.4)
KING SOOPERS 19.6 (0.7) 31.4 1.4 10.4 1.5 14.2 1.4
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 9.0 0.5 11.8 (0.3)
FRYS 44.2 (5.2) 55.8 (7.1) 11.9 0.2 18.3 (0.3)
SMITHS 36.3 (2.9) 54.0 3.0 6.3 2.3 8.9 2.8
FOOD 4 LESS 18.6 (1.8) 20.9 (5.8) 2.9 0.0 5.5 0.3
FRED MEYER 0.0 0.0 0.0 0.0 9.9 0.2 14.5 (1.0)
RALPHS 10.2 (0.5) 14.1 (2.0) 4.1 1.9 7.0 3.0
TOTAL KROGER 26.3 (1.1) 38.5 (0.6) 6.8 0.5 10.9 0.4
• All Kroger Divisions with the exception of QFC and Fred Meyer are out-performing
their peer groups in both sales and units in Gelatins. The majority of the Kroger
divisions are down in sales and unit penetration. This could be contributed to families
shopping for convenience switching to pudding cups and away from the powder mix.
Kroger Internal Scanned
Data
Gelatins/Pudding
Gelatins/Puddings Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$69,786,696 (0.99) 20.1% $14,022,884 0.66
Units % Chg Units % Chg
$73,057,186 (2.43) 27.1% $19,797,756 1.29
GM$ % Chg GM$ % Chg
$23,933,591 0.31 21.4% $5,114,419 (3.83)
• Corporate brands are up in both sales and units where the total category is declining.
Corporate Brand gross margin is declining where the total category is growing.
Gelatins/Puddings Overview
Division Sales TY % Chg $/Str CB %
016 Great Lakes $3,213,999 11.15 $ 13,065 28.2%
704 Food 4 Less $1,227,300 10.56 $ 9,298 24.5%
024 Mid-South $1,335,275 4.00 $ 8,451 25.7%
021 Central $1,215,123 (4.22) $ 8,047 23.2%
660 Frys $838,454 (19.02) $ 7,486 22.1%
029 Mid-Atlantic $951,453 1.07 $ 7,154 23.6%
014 Cincinnati $760,763 16.99 $ 6,916 22.2%
011 Atlanta $1,072,434 12.25 $ 4,831 21.9%
706 Smiths $584,187 (13.99) $ 4,564 19.9%
620 King Soopers $659,372 (6.67) $ 4,547 16.8%
025 Delta $373,374 (18.88) $ 3,247 19.2%
615 Dillon $353,976 (6.25) $ 3,025 19.3%
703 Ralphs $771,635 (13.47) $ 2,360 11.6%
701 Fred Meyer $275,491 (15.93) $ 2,103 5.2%
034 Houston $248,442 16.57 $ 1,911 10.5%
035 Dallas $136,073 (1.70) $ 1,529 10.4%
708 Food 4 Less - Midwest $5,533 100 $ 1,107 5.8%
705 QFC $0 0 $ - 0.0%
TOTAL KROGER $4,852,021 0.66 $ 1,912 20.1%
• 8 Divisions are outpacing Kroger overall in penetration. Frys, Smiths, Delta, Ralphs,
and Fred Meyer all saw a significant decline as did the peers in the market indicating
a consumer move out of the channel.
Gelatins/Puddings Overview
Brand Unit Share
DEAN FOODS
LIPTON
FLAN RICO 0.23%
0.15%
3.97% JEL SERT
KRAFT 0.41%
1.30%
KROGER
27.10%
HUNTWESSON
20.42%
• Kraft has 40% of the total unit share. Kroger (27%) and Huntwesson (20%) have the
majority of the rest of the unit share. The category is fragmented by small and
regional brands.
Powdered Drink Mix
Trends
Powdered Drink Mix will continue strong growth over the
next 5 years
433.9
400.2
395.8
394.7
392.3
390.2 389.2 389.1
386.2
384.8
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
• Powdered Drink Mix sales have decreased 11% from 2000 to 2004, but picked up in
2005. The trend is projected to continue to increase 3% by 2010
Source: Euromonitor IMIS
Note: Figures include alternate channels not tracked by ACNielsen (movie theaters, stadiums, kiosks, etc.). Also, figures take into account inflation.
Where are Consumers Buying
Powdered Drink Mix?
WALMART
$275,815,840
23.3%
WAREHOUSE CLUB
$76,168,168
6.4%
GROCERY
$700,723,328
59.1%
MASS MERCH W_SUPERS
$49,077,720
4.1%
• Total category projected sales for all channels $1.2B with 59% of sales coming from
traditional Grocery channels.
Consumer Loyalty - Brands
TRUE FALSE
LOYALTY % Of REPEAT PURCHASES
55.2%
49.8% 48.1%
45.3% 47.2%
41.3% 39.8%
30.6% 33.4%
20.4%
CRYSTAL LIGHT SF - CTL BR SF - SOFT GATORADE SS - SOFT KOOL-AID SF - SOFT WYLER'S UN - SOFT
SOFT DRINKS PWD DRINKS PWD DRINKS PWD DRINKS PWD DRINKS PWD
Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04
CTL BR SF - SOFT DRINKS PWD brand buyers are 30.62% loyal, and 39.79% of those have
purchased the brand more than once
• Gatorade has the highest loyalty in Powdered Drink Mix, but has a low repeat
purchase. Kool-Aid has a strong Loyalty and the highest repeat purchase.
Kroger Internal Scanned
Data
Powdered Drink Mixes
Peer Comparison
Powdered Soft Drink
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Powdered Soft Drink CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 15.6 0.3 23.0 4.1 2.5 (0.5) 0.8 (0.1)
CENTRAL 14.2 (2.4) 21.3 2.8 5.2 0.9 2.0 0.5
CINCINNATI 11.0 (4.4) 17.2 (4.8) 3.5 0.2 1.0 (0.5)
COLUMBUS 14.9 0.3 27.1 2.1 3.0 0.5 0.8 0.2
DALLAS 9.6 (2.5) 19.7 (1.6) 8.2 (0.4) 2.0 0.0
MICHIGAN 12.7 0.3 21.9 1.9 5.7 0.8 1.8 0.5
DELTA 14.4 (3.0) 24.1 (0.5) 7.1 0.4 5.3 0.0
HOUSTON 9.3 (1.6) 21.5 (1.8) 5.6 0.1 1.3 0.0
MID-ATLANTIC 17.2 (2.3) 26.8 4.2 3.3 (0.4) 1.1 (0.1)
MID-SOUTH 14.5 2.1 20.7 6.1 6.1 0.0 1.5 0.0
DILLONS 10.5 (5.9) 21.8 2.8 6.3 0.7 2.2 0.1
KING SOOPERS 8.1 (2.5) 20.2 1.7 6.0 0.0 1.5 0.3
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 6.7 (0.4) 1.9 0.4
FRYS 19.5 (3.3) 32.6 0.2 8.1 (1.3) 1.7 0.0
SMITHS 11.6 0.6 23.1 (1.6) 7.6 0.3 4.6 (0.5)
FOOD 4 LESS 13.1 (1.3) 11.5 (4.8) 4.4 (2.0) 1.3 (0.3)
FRED MEYER 0.0 0.0 0.0 0.0 7.2 (1.5) 1.9 0.3
RALPHS 2.8 0.0 4.0 2.9 3.4 (1.0) 1.4 0.1
TOTAL KROGER 11.9 (1.1) 20.5 1.0 5.4 (0.4) 2.1 0.0
• All Kroger divisions are either declining or flat in both sales and unit penetration over
last year. Their respective benchmarks are on that same trend. Mid-South is one of
the few divisions that have growth in both sales and unit penetration and out-pacing
its benchmark.
Soft Drink Powder/Pouches
Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$37,942,462 13.14 11.4% $4,334,314 (9.01)
Units % Chg Units % Chg
100,987,820 (3.74) 16.9% 17,025,654 (0.06)
GM$ % Chg GM$ % Chg
$10,823,598 12.52 13.8% $1,493,396 4.14
• Corporate Brands are declining in sales and units over last year, but the gross margin
is up. The total category increased significantly in sales margin, while taking a hit in
units.
Soft Drink Powder/Pouches
Overview
Division Sales TY % Chg $/Str CB %
660 Frys $464,637 (20.74) $ 4,149 24.2%
011 Atlanta $723,161 12.39 $ 3,257 19.5%
024 Mid-South $510,357 22.55 $ 3,230 15.9%
704 Food 4 Less $383,617 (25.93) $ 2,906 11.3%
025 Delta $330,062 (19.87) $ 2,870 15.2%
016 Great Lakes $666,222 1.42 $ 2,708 14.6%
014 Cincinnati $226,924 (30.63) $ 2,063 9.3%
029 Mid-Atlantic $268,847 2.71 $ 2,021 15.7%
021 Central $295,724 (11.34) $ 1,958 13.0%
706 Smiths $187,681 (7.18) $ 1,466 14.8%
620 King Soopers $114,560 (28.85) $ 790 6.6%
034 Houston $96,883 (18.01) $ 745 5.6%
035 Dallas $34,454 (11.35) $ 387 3.0%
615 Dillon $29,032 (66.93) $ 248 3.0%
703 Ralphs $2,153 - $ 7 0.1%
701 Fred Meyer $0 - $ - 0.0%
708 Food 4 Less - Midwest $0 - $ - 0.0%
705 QFC $0 - $ - 0.0%
TOTAL KROGER $4,334,314 (9.01) $ 1,708 11.4%
• 8 Divisions are outpacing Kroger overall in penetration. Mid-South had a strong sales
growth over last year, up 22.6% with Corporate Brands at a 16% in penetration.
Cincinnati and Dillon drastically declined in sales over last year.
Soft Drink Powder/Pouches
Overview
Brand Unit Share
CONTINENT
JEL SERT
0.24% GRUPO DIL.
0.30% 0.15%
KROGER
16.86%
KRAFT G.F.
82.46%
• Kraft owns the majority of the unit share at 82%. Kroger holds the rest of the unit
share at 17%, with the exception of a few regional brands.
Peer Comparison
Instant Breakfast
KROGER DIVISION BENCHMARK
CB Pen CB Pen CB Pen CB Pen
Instant Breakfast CB $$ Pt Chg vs CB Unit Pt Chg vs CB $$ Pt Chg vs CB Unit Pt Chg vs
Pen TY LY Pen TY LY Pen TY LY Pen TY LY
PEER GROUP
ATLANTA 29.9 6.6 34.0 8.5 0.0 (0.2) 0.0 (0.3)
CENTRAL 36.1 1.4 36.6 (1.2) 3.1 (0.5) 4.4 (1.5)
CINCINNATI 30.4 (0.9) 35.3 (1.6) 3.0 1.1 4.3 1.6
COLUMBUS 11.1 11.1 14.2 14.1 2.5 1.2 3.8 1.8
DALLAS 25.7 4.2 28.9 4.5 0.0 0.0 0.0 0.0
MICHIGAN 15.6 (0.3) 17.3 (1.7) 3.0 2.0 4.5 3.2
DELTA 27.0 3.4 32.2 3.7 13.0 1.9 22.6 3.4
HOUSTON 25.0 7.3 27.6 7.8 17.7 (0.7) 24.7 (3.0)
MID-ATLANTIC 27.2 4.8 27.8 2.9 0.0 (0.1) 0.0 (0.1)
MID-SOUTH 19.2 3.2 27.7 8.7 2.3 1.0 3.3 1.5
DILLONS 20.8 3.1 26.9 2.7 15.8 (0.1) 25.6 (1.1)
KING SOOPERS 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
QUALITY FOOD CENTER 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
FRYS 26.4 0.9 32.5 2.2 0.0 0.0 0.0 0.0
SMITHS 3.8 3.7 6.6 6.4 1.7 (0.1) 2.9 (0.9)
FOOD 4 LESS 0.0 0.0 0.0 0.0 4.7 (1.9) 10.0 (4.5)
FRED MEYER 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
RALPHS 0.0 0.0 0.0 0.0 2.9 (1.2) 6.3 (3.2)
TOTAL KROGER 9.7 1.7 14.8 2.7 3.3 (0.2) 6.3 (0.8)
• With the exception of Cincinnati and Michigan, the Kroger divisions are out-pacing
their benchmarks in both sales and unit penetration and all growing share. Columbus
is having the strongest growth over last year.
Instant Breakfast
Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$6,891,039 3.83 28.1% $1,936,332 10.54
Units % Chg Units % Chg
1,982,191 0.85 48.5% 961,718 7.22
GM$ % Chg GM$ % Chg
$2,464,420 3.06 27.0% $665,776 11.87
• Corporate Brands are showing strong growth in sales, units, and margin over last
year. The total category is showing a steady growth in sales, units, and margin.
Corporate Brands is holding almost 50% of the share of units.
Instant Breakfast
Overview
Division Sales TY % Chg $/Str CB %
011 Atlanta $509,786 13.94 $ 2,296 41.4%
016 Great Lakes $354,492 19.94 $ 1,441 45.9%
014 Cincinnati $125,481 (12.01) $ 1,141 31.7%
620 King Soopers $154,147 5.48 $ 1,063 24.0%
660 Frys $117,210 (4.72) $ 1,047 28.1%
029 Mid-Atlantic $136,785 4.44 $ 1,028 46.1%
024 Mid-South $158,985 3.19 $ 1,006 39.1%
025 Delta $99,752 19.28 $ 867 52.0%
615 Dillon $100,899 16.55 $ 862 44.3%
706 Smiths $107,381 4.19 $ 839 32.6%
034 Houston $105,962 2.92 $ 815 26.6%
021 Central $114,769 36.04 $ 760 33.6%
035 Dallas $53,229 11.18 $ 598 20.9%
701 Fred Meyer $56,385 7.75 $ 430 10.9%
704 Food 4 Less $39,946 195.92 $ 303 25.8%
703 Ralphs $0 - $ - 0.0%
705 QFC $0 - $ - 0.0%
708 Food 4 Less - Midwest $0 - $ - #DIV/0!
TOTAL KROGER $2,235,209 10.54 $ 881 28.1%
• 11 Divisions are outpacing Kroger overall in penetration. Atlanta and Great Lakes
had a strong sales growth over last year, up 14% and 20% respectively. Cincinnati
and Frys where the only two divisions to show a declined in sales over last year.
Instant Breakfast
Overview
Brand Unit Share
KROGER NESTLE
48.52% 51.48%
• The category unit share is fairly close to being split down the middle between Kroger
and Nestle, with Nestle having the majority.
Hot Chocolate/Cocoa
Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$22,928,754 (0.32) 24.0% $5,510,898 (4.71)
Units % Chg Units % Chg
13,347,255 10.32 30.0% 4,008,506 1.82
GM$ % Chg GM$ % Chg
$7,474,685 (7.82) 23.0% $1,716,206 (8.97)
• Corporate Brands are growing slightly in units, but took a hit in sales and margin.
The total category is showing similar trends with being up in units, but taking a hit in
sales and margin.
Hot Chocolate/Cocoa
Overview
CB Sales by Division (000's)
Division Sales TY % Chg $/Str CB %
016 Great Lakes $917,196 1.61 $ 3,728 31.3%
660 Frys $404,923 (8.77) $ 3,615 39.3%
701 Fred Meyer $395,483 5.73 $ 3,019 18.2%
014 Cincinnati $321,640 (9.95) $ 2,924 26.2%
620 King Soopers $388,368 (7.28) $ 2,678 23.0%
024 Mid-South $412,701 (6.85) $ 2,612 27.6%
704 Food 4 Less $323,163 (10.07) $ 2,448 21.0%
029 Mid-Atlantic $317,067 (1.16) $ 2,384 33.7%
021 Central $349,245 (10.75) $ 2,313 28.9%
011 Atlanta $499,186 (0.70) $ 2,249 27.5%
706 Smiths $254,035 (1.68) $ 1,985 18.7%
615 Dillon $172,881 10.05 $ 1,478 30.4%
025 Delta $158,484 (9.00) $ 1,378 25.9%
034 Houston $160,812 (24.67) $ 1,237 19.6%
035 Dallas $98,537 (24.24) $ 1,107 18.5%
703 Ralphs $326,815 5.90 $ 999 13.2%
705 QFC $10,362 (38.01) $ 119 2.3%
708 Food 4 Less - Midwest $0 (100.00) $ - 0.0%
TOTAL KROGER $5,510,898 (4.71) $ 2,171 24.0%
• 9 Divisions are outpacing Kroger overall in penetration. Fred Meyer had a strong
sales growth over last year up 5.7% with Corporate Brands at a 18% in penetration.
Frys, Cincinnati, and Central declined drastically in sales over last year.
Hot Chocolate/Cocoa
Overview
Brand Unit Share
STEPHEN S MEAD JHNSN
0.93% 0.71% GHIRARDELL
0.26%
HERSHEY
2.56%
NESTLE
CON-AGRA
40.03%
25.47%
KROGER
30.04%
• Nestle has the greatest unit share at 40%. Kroger and Con-Agra hold the majority of
the remaining unit share.
Dried Fruit
Trends
Where are Consumers Buying Dried
Fruit?
WALMART
$191,524,592
WAREHOUSE CLUB 11.6%
$208,044,000
12.6%
A_O CHANNELS
$116,118,264
7.0%
• Total category projected sales for all channels is $1.6B with 62% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands
43.3%
32.8%
27.3%
24.9% 23.2%24.8%
20.1%
16.3%
13.9%
10.5%
KELLOGG'S
CROCKER -
FRT DRIED,
FRT DRIED,
FRT DRIED,
FRT DRIED,
WELCH'S -
CTL BR -
MONTE -
DRIED,
BETTY
SNKS
SNKS
SNKS
SNKS
SNKS
- FRT
DEL
LOYALTY % Of REPEAT PURCHASES
Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04
CTL BR - FRT DRIED, SNKS brand buyers are 27.32% loyal, and 43.28% of those have purchased the brand more than
once
• Corporate Brands has the highest loyalty and repeat purchasing in Dried Fruit. The
next highest is Del Monte
Kroger Internal Scanned
Data
Dried Fruit
Dried Fruit Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$60,503,382 14.08 15.9% $9,616,852 16.95
Units % Chg Units % Chg
22,812,178 5.05 18.0% 4,100,222 2.67
GM$ % Chg GM$ % Chg
$27,026,303 9.30 14.3% $3,853,461 4.43
• Corporate Brands is growing in sales, units, and margin. The total category is
showing the same growth trend. There is a very strong sales growth in both
Corporate Brands and Total Category over last year.
Dried Fruit Overview
Division Sales TY % Chg $/Str CB %
701 Fred Meyer $776,922 20.57 $ 5,931 18.0%
029 Mid-Atlantic $755,043 29.91 $ 5,677 24.2%
620 King Soopers $762,358 4.72 $ 5,258 13.8%
016 Great Lakes $1,247,396 20.11 $ 5,071 19.2%
024 Mid-South $752,123 20.89 $ 4,760 18.8%
014 Cincinnati $509,072 31.75 $ 4,628 14.5%
011 Atlanta $920,586 11.66 $ 4,147 15.9%
025 Delta $460,367 16.66 $ 4,003 22.7%
660 Frys $424,490 17.96 $ 3,790 17.4%
021 Central $561,192 23.25 $ 3,717 21.1%
703 Ralphs $1,009,044 17.10 $ 3,086 12.6%
034 Houston $387,459 20.40 $ 2,980 12.1%
615 Dillon $333,437 8.45 $ 2,850 20.7%
035 Dallas $240,148 16.42 $ 2,698 14.1%
706 Smiths $225,651 (12.04) $ 1,763 9.6%
705 QFC $124,109 32.91 $ 1,427 7.7%
704 Food 4 Less $127,455 (9.85) $ 966 6.0%
708 Food 4 Less - Midwest $0 - $ - 0.0%
TOTAL KROGER $9,616,852 16.95 $ 3,789 15.9%
• 9 Divisions are outpacing Kroger overall in penetration. Great Lakes and Ralphs had
a strong sales growth over last year up 20% and 17% respectively. Smiths and Food
4 Less declined in sales over last year.
Dried Fruit Overview
Brand Unit Share
M C SNACK SUNSWEET
2.12% 1.86%
DOLE
3.44% NATIONAL R
1.62%
DIAMOND
7.69%
SUN MAID
34.89%
MARIANI
9.47%
OCEAN SPRA
12.35%
KROGER
17.76%
• Sun Maid has the greatest unit share at 35%. Kroger and Ocean Spray hold the
majority of the remaining unit share.
Trail Mix
Trends
Where are Consumers Buying Trail
Mix?
WALMART
$78,436,000
25.6%
Total Projected dollar sales of- TRAIL MIXES category in all the channels are - $386,701,719
• Total category projected sales for all channels $306M with 47% of sales coming from
traditional Grocery channels
Consumer Loyalty - Brands
89.4%
58.6%
50.5%
45.2% 41.8%
40.2%
FRITO-LAY
PLANTERS
GENERAL
CHEX MIX
FISHER -
CTL BR -
- TRAIL
- TRAIL
- TRAIL
MIXES
MIXES
MIXES
MIXES
MIXES
MILLS
TRAIL
TRAIL
Source: ACN Homescan Consumer Facts -TOTAL U.S. - 52 Weeks ending 12/25/04
CTL BR - TRAIL MIXES brand buyers are 89.38% loyal, and 40.21% of those have purchased the brand more than once
• Corporate Brand has the highest loyalty and repeat purchase in Trail Mix. Planters
has the next highest loyalty, but has one of the lowest repeat purchases.
Kroger Internal Scanned
Data
Trail Mix
Trail Mix Overview
TIME FRAME: 2005 PD 01
through: 2005 PD 13
Total Kroger
Total Category CB % Corporate Brand
$ Sales % Chg $ Sales % Chg
$3,919,694 6.79 0.0% $0 #DIV/0!
Units % Chg Units % Chg
1,476,173 2.18 0.0% 0 #DIV/0!
GM$ % Chg GM$ % Chg
$1,321,959 1.22 0.0% $0 #DIV/0!
• Total Specialty Snacks is growing steadily in sales, units, and margin. This shows that
there is a huge opportunity as Kroger for introducing a Corporate brand into the set.