1 Cycle 8 REM
2 Conference Call Expectations (Justin)
3 Agenda (Justin) Introductions Business Review Team Analytics Wal-Mart (Jeff) Hannaford (Fern) Market Basket (Jim) Shaw's (Jason) Stop & Shop (April) WHQ Supplemental Decks
4 Introduction (Justin) Welcome Sylvia Buxton! Welcome Jessica Fridwall!
5 Team Analytics – In Store Hours (Justin)
6 Team Analytics – Priority Call Coverage (Justin)
7
8 Wal-Mart (Jeff) Business Results YTD To Win HWN we must… Business Drivers Business Opportunities YTD TL Hershey $1,083,462, % vs. PY vs. objective of 8.4%. YTD TL North East $220,952,561 +6% vs. PY vs objective of 8.2% YTD TL New England $16,725, % vs. PY vs. objective of +7.7%. HWN Sell Through: TL NE HWN order of $3,006,451. TL sales TD of $464,468 or 15%. TL remaining inventory of $2,541,983 Sell through leaders: Joanne (+19.9%), Ron (+16.5%), Fern (16.9%) Multipack +1.8% vs PY CPC +12.1% vs PY NC +22.7% PY KS -6.2 % however, Last %, last wk +23% COMAC and Playbook availability Impulse overall -6.8% driven by standard bar at -23.2% vs. PY. Grocery overall -.2% driven by Syrup at -4.6% Roll Back tags (Standard Bar, KS, HTM, Baking Chips, Wooper Carton) Distribution using zero scan report Consultative Selling Conversation “Every call, Every day” (CSF, business review, impact statements) Win with the “Big 3”, Snack Size, All Time Great and Jumbo. “Door to Floor” “A” locations. Strike Zone, Anchor End Caps and Lead Pallets where possible Additional Points of Interruption (POI) throughout store Utilize tools: COMAC, FSI, POS, Case for Confection, and Eduardo's HWN consumer insights. Market Meetings with all DM’s
Hershey’s Fall Baking 2012
10 Hershey’s largest segment, Baking Chips, is expected to deliver $7.5M, +19.5% POS growth in 2012 Retail Link FY Hershey’s Baking Chips Fiscal Year POS $ 18% CAGR
11 Hershey’s Fall Bake (All Items) POS Dollar Sales Weeks YOY Hershey’s 2012 Fall Baking will deliver $29.2M POS, +$4.3M vs Retail Link %+17.3%
12 Focus on core Semi-Sweet & Milk Chips for 2012 growth, drive incremental POS with Hershey’s flavor brands CYTD Hershey Baking POS Sales $23.1M, +14.9% Retail Link CYTD through SKU’s: $11.7M, +$2.5, +26.8% CYTD TOP 3: $11.4M, +4.7% 49.2% of FYTD POS
13 Walmart Hershey Grocery POS Growth YOY and Share Hershey Baking Food and Walmart – CYTD 7/14/2012 – WMT Wk 24 Source: Nielsen CYTD Hershey is driving Walmart’s POS growth and Share of Market with the largest baking segment, Baking Chips
Fall Baking Planner Keys to Success: Sidecounter 100% Distribution of all authorized items Mod Integrity - Correct # of facings In-stock (2 cases per facing) Shelf Tags and Rollback Flags Bake Center All Bake Centers will set Wk % Distribution of all authorized items In-stock Shelf Tags and Rollback Flags Incremental SKU Placement (Milk and Semi-sweet) Secondary Display Activity EARLY: Bake center and one secondary location for baking chips and syrup MID SEASON: Bake center, one secondary location each for: baking chips, syrup, Kiss Blossom Cookies, and Rolo Pretzel Delights PEAK: Bake center, 1-3 secondary locations for baking chips, and one location each for syrup, Kiss Blossom Cookies, and Rolo Pretzel Delights
15 Increase baskets and deliver +$4.3M POS through multiple impact displays beginning week 33 Cart Rail Grocery 48” Endcap AA ½ Pallet Stackbase Each Hutch holds cases Single Hutch placement Semi Sweet, Milk Choc, Reese, Sp Dark If two Hutches placed Increase Milk & Semi Sweet Add Heath Brickle, Heath Choc, White chips Merchandise with tear pads 4 Tier Hutch (wing display) D cases to fill Core items Semi Sweet, Milk Choc, Reese, Sp Dark Flavor brands Heath Brickle, Heath Choc, White chips Semi Sweet and Milk Chocolate are core focus for Supercenters 96 cases to fill Core items 32 Semi Sweet, 32Milk Choc 16 Reese, 16 Sp Dark Add assortment items if store level POS dictates Semi Sweet and Milk Choc are must haves for Supercenters Merchandise with Tear Pads Up to cases to fill Core items 32 Semi Sweet, 32 Milk Choc 18 Reese, 8 Sp Dark Flavor brands 6 Heath Brickle, 6 Heath Choc 6 White chips Semi Sweet and Milk Chocolate are core focus for Supercenters
16 Telxon will not reflect actual profitability for Hershey’s Scan-back Rollback on Baking Chips Wks $1.98 Rollback Retail Telxon Actual w/Scan-back Retail:$1.98 $1.98 Cost: $2.00 $1.59 Mrg %: (1.0%) 19.7% $ PP: (0.02) $0.39 $0.03 per bag more Penny Profit in 2012 = 60bps increase in margin 0.41¢ Scan was Walmart’s request to enable 7 extra weeks of Rollback in 2012 These money mechanics should be verbalized in KDM consultations to support displays INTERNAL USE ONLY. NOT TO BE USED, OR LEFT AT STORE LEVEL
17 Wk 42 FSI, 11/11/12: Save $1.00 on 3 bags of Hershey’s Baking Chips Hershey’s $1.98 Rollback and baking chip FSI combine to deliver even greater value to Walmart shoppers _ =
18 Wk 42 FSI 11/11/12 Save $1 on 3 Bags 1,500 Store COMAC Wk Blossom Cookies National Advertising D1 TAB support qty Hershey’s consumer support plan is designed to drive trips, baskets, and $4.3M POS growth Bake Center Approx. 3,000 stores Walmart.com Exclusive Recipes TAB Wk 41 11/4/12
19 Deliver $4.3M POS growth in 2012 through in-stock on displays and side-counter
20 Leverage Hershey’s IRC & recipe tear pads at displays to grow baskets from multiple purchases Tear pads allocated by G2M to RSRs week of 9/10/12. All graphic content is subject to change. Save $1.50 off HERSHEY’S Cocoa 8 oz or larger with the purchase of any three (3) bags of HERSHEY’S Baking Chips “Free” Baking Chips 8 oz or larger with the purchase of any three (3) bags of HERSHEY’S Baking Chips Free HERSHEY’S Syrup 22 – 24 oz with the purchase of any four (4) bags of HERSHEY’S Baking Chips 8oz. or larger IRC’sRecipes Oatmeal Toffee Cookies Double Chocolate Chip Cookie Chocolate Snowball Double Peanut Butter Paisley Brownie
21 Opportunities exist to drive incremental POS with Kisses Peanut Butter Blossom Cookies Over $5.00 incremental basket ring FSIs: Wk 42: Save $1 on 3 bags of Kisses Wk 43: Save $1 on 2 bags CPC Wk 46: Save $1 on 2 bags CPC Note: Retail difference between RGS Kisses and Everyday Req #: D88301
22 Further opportunities exist to drive incremental POS with Rolo Pretzel Delights $10.00 incremental basket ring FSIs: Wk 43: Save $1 on 2 bags CPC Wk 46: Save $1 on 2 bags CPC Req #: D88301
24 Shaw’s (Jason) Business Results YTD 9/8/12 To Win HWN we must… Business Drivers Business Opportunities New England is showing strong YTD share (+.9) and POS growth +3% but trail overall Hershey in Shaw’s slightly in POS growth by.1% (3.1% vs. 3%) and share by.1 (35.1 vs. 35). Hershey is driving the category in Shaw’s (+3.1% vs. +.6% for the CMG category). Hershey’s +3.1% increase in Shaw’s is favorable to that of the ROM (Rest Of Market) and US Food.. Hershey ROM=+1.6% and CGM ROM=-.3% while Hershey US Food=+2.3% Top performers YTD- Share leaders- Tim 38.3, Meg 38.2, Joanne 38 Standard Bars- strong increases in all captured timeframes (4 wk $105K +31%, 12 wk $291K +29%, YTD $794K +21%). In all Shaw’s, Hershey dominates the Standard Bar category with a share of 49 (YTD share change +4.1). After a slow start, King Bars have rebounded in NE (12 wk +30.1%, YTD +5.2%). Strong Summer execution has led to recent Non Choc Pkg (basically Twizzlers) increases (12 wk $221K +30%). Halloween- Good start with ST (19.4%), but -3.4% in POS Standard Bars- despite the YTD numbers, these remain an opportunity for the remainder of the year. Utilize “Zero Mover” report to eliminate OOS Baking- details coming soon Win with all HWN pack types “Door to Floor” “A” locations. Strike Zone, Anchor End Caps and Lead Pallets where possible Additional Points of Interruption (POI) throughout store incl use of speed table tank. Leverage IRC’s, 9/23 and 10/14 FSI’s, POS, hutches, sales/ST info to gain incremental, high quality POI’s. Ensure Halloween IC’s are up front by Registers. Ensure signage is correct in seasonal and display locations Blitz stores at start of Must-Buy
Market Basket (Jim) Business Results YTD To win HWN we must… Business Drivers Business Opportunities YTD Share is 24.2% +.3 vs. PY. YTD $ Sales $5,603,517, +8.8% vs PY Share Leaders: Jason (+1.4), April (+1.2) and Megan (+1.1) Keep displays a minimum of 42% Hershey based upon last years sales at MB Use the facts: Reese and KK #1 and #2 HW items at MB While Snickers (#3) and Milky Way (#4) combined were $318k vs Kit Kat was $301k! Use the tools: Consultative Selling Process CSF, Business Review, Impact Statement and Case for Confection IRC’s, FSI’s, Balloons and Llamas Ensure Everyday distribution Your considerable talents!! Multipack +13.1% vs PY, driven by S’MORES! STD Loose 20.3% vs PY driven by pre priced Promotion CPC +16.8% PY XL bar -19% driven NC -4% vs. PY
28 Hannaford (Fern) Business Results YTD To Win HWN we must… Business Drivers Business Opportunities
Stop & Shop (April) Business Results YTD To Win HWN we must… Business Drivers Business Opportunities