By Jason Klotz

Overview Total category sales for Barbecue Sauces in 2007 was $247,875, 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 - MLK764 Walmart - Mall720 Harps - Rogers5324 Target - Rogers121 Sams Club - Rogers55 Walgreens - Rogers10 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 INC - <$20, INC - $20, , INC - $30, , INC - $40, , INC - $50, , INC - $70, , INC - $100, 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 SIZE - 1 MEM SIZE - 2 MEM SIZE MEM SIZE - 5+ MEM …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 AGE FH - UNDER AGE FH AGE FH AGE FH AGE FH AGE FH AGE FH - NO FEMALE HEAD

ManufacturerMLK Walmart Mall Walmart Harps Rogers Target Rogers Kraft% of Total Facings25%31%30%37% % of Gross Margin10%11%19%18% N Sweet Baby Rays Inc.% of Total Facings17% 10%37% % of Gross Margin13%17%4%51% N11955 HV Foods% of Total Facings13%14%16%19% % of Gross Margin12%17%11%22% N12992 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 stockingstocking rate Kraft633.3% Sweet Baby Rays441.6% KC Masterpiece531.5% 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