2009 Business Review & 2010 Plans Presented to Robbie Leonhardi By Steve Meyers February 24, 2010
Agenda Nielsen South Convenience Store Data Core-Mark Atlanta Business Review 2010 Promotional Plans Nascar Upcoming Promo Power Events Divisional Support 2010 Innovation February Launch Items March Launch Items Core Items Importance Priority List Next Steps
Total South C-Store Confections = $1.13B, +1.2% Segment Dollars / Share (Dollars % Chg YAG) Non Chocolate (+5.7%) Gum (-2.9%) Mint / Strips / Beads (Flat) Chocolate (+1.7%) Vendor Dollars / Share (Dollars % Chg YAG) Hershey (+3.1%) Mars (WO/SS) (+1.7%) Wrigley (+1.1%) Cadbury (- 3.4%) Nestle (+0.9%) All Other (Flat) Wrigley is the #2 confection vendor in South Convenience Stores! Source: Nielsen ScanTrack, SOUTH C-Store, 52 weeks Ending 12/26/09 Wrigley & Mars = ~40% Share of Category!
Gum = $295 MM, - 2.9%Mints = $48.4MM, - 2.5% Dollar Share of Gum (Dollars % Chg YAG) Non Choc = $313.4MM, +5.7% Dollar Share of Mints (Dollars % Chg YAG) Dollar Share of Non Choc (Dollars % Chg YAG) Wrigley (- 1.5%) Cadbury (- 3.4%) Hershey (-19.7%) All Other (+2%) Wrigley (-9.1%) Cadbury (-19.1%) Tic Tac (- 7.1%) All Other (Flat) Wrigley (+12.4%) Nestle (+3.5%) Hershey (+7.9%) All Other (+5.7%) Wrigley’s success is achieved through continued category innovation in brand development, consumer insights, and trade support Wrigley is #1 in Gum, #2 in Mints and #1 in NC in South Convenience Stores! Source: Nielsen, SOUTH C-Store, 52 weeks ending 12/26/09; Mints excludes Strips/ Beads Hershey (+13.6%)
Business Review Core-Mark Net Sales ATLANTA 2009 vs WWY$X,XXX,XXX$X,XXX,XXX XX% S&S$ XXX,XXX$ XXX,XXX XX% Total$X,XXX,XXX$X,XXX,XXX XX% Goals2010 WWY$X,XXX,XXX S&S$ XXX,XXX Total$ X,XXX,XXX Source: Wrigley P&L Core-Mark Sales Reports Jan-Dec Sales
Atlanta Brand Contribution Source: Wrigley P&L Core-Mark Sales Reports Jan-Dec Sales #1 Brand, LIFESAVERS is 14% of sales #5 Brand, ORBIT is 10% of sales YE Sales
2010 Nascar
February and March Promo Power Events PROMO POWER MARCH CM # PROMO POWER FEB CM # PROMO POWER FEB CM #
April and May Promo Power Events PROMO POWER APRIL CM # PROMO POWER MAY CM # PROMO POWER APRIL CM #
June Promo Power Events PROMO POWER JUNE CM # PROMO POWER JUNE CM #
Wrigley Supports Atlanta Division Programs April-May 2010 Order Guide Front Cover Smart Buy Guide Front Cover- February 2010
Wrigley Supports Atlanta Division Programs The Jet Set program is designed to insure manufacturers that their best selling products are placed in our customers store schematics for merchandising purposes. Vendors and Manufacturers receive added benefits such as merchandising support, special treatment of new products, preferential treatment for promotional opportunities and consistency of placement across our customer base. Jet Set also provides a benefit to the retailer to have new items worked into their schematics when products are first introduced. It also provides a mechanism to weed out slower selling products and discontinued items. Manufacturers can make changes throughout the year on items they would like to add or delete from the program. Jet Set Merchandise Placement Program
February/March 2010 Wrigley Innovation New Item LaunchBrand & FlavorProduct Description 5 REACT Mint & Fruit REACT provides a personalized flavor experience unique to each chewer! Unique Mint and Unique Fruit will intrigue consumers with black wrapping and color. Great innovation from America’s fastest growing gum brand! ORBIT MIST Raspberry Lemon Dew Orbit Mist quickly reached over a 2% dollar share after its initial launch! Raspberry Lemon Dew will continue this momentum by bringing a crisp, mouthwatering raspberry flavor with a hint of lemon to the growing fruit gum segment EXTRA FRUIT SENSATIONS Sweet Tropical Extra Fruit Sensation has contributed 91% of the total fruit gum category dollar growth this year! Sweet Tropical brings a sweet combination of orange, pineapple and grapefruit flavors that tested superior to Trident Tropical Twist in taste ORBIT Lime Melon Lime Melon is the latest innovative flavor offering from America’s #1 selling gum brand. Lime Melon contains a unique blend of lightly sweet Asian melon with a hint of lime. LIFESAVERS Fruiteria LifeSavers Fruiteria contains the Hispanic inspired flavors of Passion Fruit, Papaya, Mandarin Orange and Pineapple which are growing in popularity among the general market as well. A great addition to the #1 hard candy brand! ALTOIDS SMALLS Simply Mint Altoids Smalls Simply Mint provides an innovative minty sweet flavor consumers will love. Altoids Smalls grew +426% after the packaging re-launch in Dec 08’, and this unique mint flavor will continue to drive momentum for the brand. SKITTLES Fizzl’d Fruits Skittles Fizzl’d Fruits are the new berry fruit chewy candy that fizz in your mouth for an unpredictable, tongue-tingling experience! The outstanding originality of this item combined with the growth of the Skittles brand is a recipe for success! STARBURSTS Summer Fun Fruits Starburst Summer Fun Fruits is an exciting blend of delicious flavors with the fruit juiciness consumers love. The Staw- Watermelon, Cherry Splash, Lemon Limeade and Kiwi Banana flavors tested better than the successful FaveReds! Ships 2/1Ships 3/1
2010 Innovation February Items ordered- Thank you March New Items- Please order as soon as possible: Altoids Smalls Simply Mint CM# Skittles Fizzl’d Fruit Pouch CM# Skittles Fizzl’d Fruit Theatre Box CM# Starburst Summer Fun Fruits CM#
Importance of Core Items This study uncovered major opportunities available through improved manufacturer, distributor and retailer collaboration directed at broadening the scope of category management to include: Keeping core brands in stock at all times. Improving in-store product placement. Understanding and responding to consumers’ typical shopping practices to maximize prime selling areas and secondary multi- vendor merchandising opportunities. Improving execution of new item strategies. Improving exit strategies for poor performing items. Source- Consumer Store Decisions, May May 01, 2009 “Sweet Opportunity” by Bob Gatty, Contributing Editor Convenience, Candy, & Profit Study
Wrigley Priority List
Next Steps Wrap Up Discussion Open Forum Aged Inventory Report Returns/Spoils Merchandising Room Thank You for Your Business!