Ashliegh Dumont & Alex Coreas Apple Juice Ashliegh Dumont & Alex Coreas

Total category Demographics TOTAL APPLE JUICE (JC,DRK-CAN,BTL) OZ. Total Dollars BehaviorScape Framework   LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < 6 218 187 232 292 216 236 227 Small Scale Families Small HHs with Older Children 6+ 117 124 129 140 97 87 113 Younger Bustling Families Large HHs with Children (6+), HOH <40 263 246 212 178 194 206 213 Older Bustling Families Large HHs with Children (6+), HOH 40+ 182 193 161 176 152 166 Young Transitionals Any size HHs, No Children, < 35 78 85 48 83 60 96 75 Independent Singles 1 person HHs, No Children, 35-64 49 34 37 50 31 39 Senior Singles 1 person HHs, No Children, 65+ 55 33 42 32 29 35 Established Couples 2+ person HHs, No Children, 35-54 70 67 73 64 63 68 Empty Nest Couples 2+ person HHs, No Children, 55-64 52 74 61 Senior Couples 2+ person HHs, No Children, 65+ 72 80 69 54 62 103 112 99 116 90 88 100 Struggling Urban Cores Start-Up Families Large households with Children 6+, Head of household under 40

Importance of Demographic Attributes Demographics Variables and Measures Demographic Variables   % Total $ Index Race of Head of Household White 62.7% 88 Black 14.5% 127 Hispanic 16.5% 144 Asian 3.9% 104 Other 2.4% 101 Number of Persons 1 Person 10.6% 41 2 Persons 20.5% 63 3 Persons 21.4% 4 Persons 24.6% 177 5+ Persons 23.0% 214 Household Income Under $10,000 5.6% 70 $10,000 - $19,999 8.0% 78 $20,000 - $29,999 8.8% 80 $30,000 - $39,999 9.8% 89 $40,000 - $49,999 10.5% 105 $50,000 - $74,999 22.1% 113 $75,000 - $99,999 12.7% 107 $100,000 - $149,999 14.3% 125 $150,000 or More 8.2% 119 Age of Head of Household Age 18 - 24 4.5% Age 25 - 34 146 Age 35 - 44 27.3% 147 Age 45 - 54 20.8% 98 Age 55 - 64 12.2% 67 Age 65 - 74 6.8% 58 Age 75 or More 5.5% 54 Age and Presence of Children Age < 6 18.8% 219 Age 6 - 17 26.5% 132 Age < 6 & 6 - 17 19.0% 253 No Children 35.7% 56 Housing Tenure Own 65.8% 99 Rent 34.3% 102 Importance of Demographic Attributes Attributes   Importance Number of Persons 88.4 Household Composition 84.4 Age and Presence of Children 75.9 Age of Oldest Child 73.7 Age of Head of Household 33.3 Marital Status of Head of Household 25.4 Number of Vehicles in Household 14.2 Household Income 9.2 Occupation of Head of Household 9.1 Race of Head of Household 7.1 Education of Head of Household 1.8 Housing Tenure 0.0 One thing that is interesting is the demographics have not changed over the past year. Higher index of Black & Hispanic races Head of household ages 25-44

Demographics Large families with children $100,000-$149,999 income Number of Persons-Total Dollars Index Large families with children Household Income-Total Dollars Index $100,000-$149,999 income

Category Assessment 8 stores audited Wal-Mart Supercenter 6th Street Wal-Mart on Campus Garland Wal-Mart Neighborhood Market Crossover Marvins IGA Lafayette Walgreens Township Dollar General College Ave. Harps Garland Ozark Natural Foods Note that Juicy Juice had more SKUs at Walmart 6th but Great Value had more Facings

Assessment results Wal-Mart Supercenter Juicy Juice brand domination but Great Value shelf space domination Great Values 96 Oz 100% Apple had 45 facings Nestles Juicy Juice was found in 6 out of 8 stores Ozark Natural Foods & Dollar General did not stock it Juicy Juice & Wal-marts Relationship Gross margins are significantly lower on 64 Oz jug of 100% Juice Building supplier relationship = okay to have these low margins

Shared Display Space of Apple Juice 2013 Shelf space Shared Display Space of Apple Juice 2013 Manufacturers2 Walmart 6th WalMart Mission Harps Garland IGA Layf Associated Wholesale Grocers % of Total Sum   .2 .5 % of Total N N 3 5 Coca-Cola .0 .1 1 Martinellis 2 Nestle .4 10 4 Old Orchard 6 Others .3 14 Walmart 7 Total 1.0 43 11 13

Assessment results Martinellis Wal-Marts pricing & gross margins are significantly lower Harps is charging almost $3.00 more than Wal-Mart Example of strong supplier relationship for Wal-Mart Always Save brand is priced as the lowest out of any brands Harps and Marvin’s IGA carry these Catering to a certain demographic Apple juice is found at every grocery retailer

Gross Margin Percentages Gross Margins Gross Margin $ Manufacturers2 Walmart 6th Walmart Neighb Harps IGA Associated Wholesale Grocers Mean   .94 1.65 % of Total N .2 .5 N 3 5 Coca-Cola .60 .28 1.59 .1 1 Martinellis 4.25 2 Nestle .64 .47 1.58 1.43 .4 10 4 Old Orchard 1.06 .70 1.71 6 Others 1.18 .52 1.36 .85 .3 14 Walmart 1.11 .56 7 Total 1.01 .50 1.76 1.34 1.0 43 11 13 Gross Margin Percentages Manufacturers2 Walmart 6th Walmart Neigh Harps IGA Associated Wholesale Grocers Mean   .31 .49 N 3 5 Coca-Cola .18 .09 .40 1 Family Dollar Martinellis .36 .58 2 Nestle .22 .42 10 4 Old Orchard .74 .35 .57 6 Others .39 .45 14 Walmart .46 .23 7 Total .20 .43 43 11 13

Gross Margin vs. Size Takeaway The smaller ounces (12 to 64 Oz) tend to do much better than larger counterparts Smaller ounces capture most of the gross margins This was the case for the Retailer’s brand and Manufacturer’s brand This can be attributed to the Spectra demographic statistics Most Apple Juice is bought by households of 3-5 or more and mostly bigger families Prices were relatively constant among Private Label and manufacturer’s apple juices in relation to the ounces all across the board Did show slight increase when the container changed Example-Apple Juice jars and Jugs cost more than frozen can and boxes even if overall ounces equaled their counterpart Example-Great Values frozen can produces 80% Gross Margins

% REPEAT BUYERS (% 2+ TIME BUYERS) % DOLLARS WITH MANUFACTURER COUPON Ad Hoc Base   ITEM $ (000) DOLLAR SHARE ITEM PENETRATION ITEM $ PER ITEM BUYER ITEM $ PER ITEM TRIP % REPEAT BUYERS (% 2+ TIME BUYERS) % ITEM $ ON DEAL % DOLLARS WITH MANUFACTURER COUPON FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 616,309.9 100.0 40.6 13.1 3.1 64.5 22.5 1.7 WSC 57,112.5 37.7 11.7 2.8 63.1 14.9 APPLE & EVE - FRUIT JUICE - APPLE - SHELF STBL 15,414.6 2.5 1.9 7.2 3.5 35.3 24.3 2.6 IN ZONE INC- NBL - FRUIT JUICE - APPLE - SHELF STBL 2,854.3 0.5 0.6 3.9 2.9 16.5 14.5 0.0 LANGERS - FRUIT JUICE - APPLE - SHELF STBL 10,818.7 1.8 2.0 4.6 25.7 39.6 787.8 1.4 3.4 19.1 39.3 3.2 MARTINELLI'S GOLD MEDAL - FRUIT JUICE - APPLE - SHELF STBL 13,726.5 2.2 0.7 17.5 8.2 35.9 3.3 MINUTE MAID - FRUIT JUICE - APPLE - SHELF STBL 27,839.5 4.5 3.8 6.4 28.8 20.6 2,883.6 5.1 5.7 25.9 14.0 4.7 MOTT'S - FRUIT JUICE - APPLE - SHELF STBL 86,828.3 14.1 9.8 7.6 39.4 26.4 2.4 5,315.7 9.3 7.7 5.3 37.0 17.4 2.7 MUSSELMAN'S - FRUIT JUICE - APPLE - SHELF STBL 2,366.6 0.4 4.9 3.0 21.6 30.7 0.1 NESTLE JUICY JUICE - FRUIT JUICE - APPLE - SHELF STBL 43,445.1 7.1 5.0 7.5 40.2 16.2 2,400.3 4.2 41.5 15.2 5.9 OLD ORCHARD - FRUIT JUICE - APPLE - SHELF STBL 20,272.3 32.2 29.7 0.9 2,294.3 4.0 2.1 19.0 R W KNUDSEN FAMILY - FRUIT JUICE - APPLE - SHELF STBL 3,232.9 0.2 33.1 17.9 0.3 TREE TOP - FRUIT JUICE - APPLE - SHELF STBL 62,038.4 10.1 5.4 9.9 45.8 25.0 6,266.6 11.0 6.3 38.1 30.8 13.4 WELCH'S - FRUIT JUICE - APPLE - SHELF STBL 2,014.7 10.4 23.0

Private Label Potential & Opportunities Wal-Mart had greater presence of Private Label Great Value had 64 facings compared to 30 in 2010 Wal-Mart created an impact in Private Label Takes most of their facings Presents the best Gross Margins 57% @ Wal-Mart MLK for Apple Juice in Jugs Walgreens’s PL brand “Nice!” presents a 70% Gross Margin presence amongst the manufacturer brands Harps’ brand “Always Save” and “AWG” present exceptional Gross Margin returns in this category Private label overall had the leading Gross Margins Every retailer carried some form of Private Label Apple Juice essentially committing them to their own form of private label product

Trending & Highest ranked items Catering to families / focusing on toddlers Up and Coming trend of attractive toddler packaging Wal-Mart is the only retailer evaluated taking advantage of these trends by carrying all 4 highly ranked items Shows why Wal-Mart has majority Juicy Juice SKUs compared to previous years when Great Value had the most SKUs Juicy Juice – Index of 163 Tummy Tickler- Index of 173 Tummy Tickler Tots- Index of 179 Motts for Tots – Index of 183

Recommendations Wal-Mart on Garland has very few SKUs (4 facings in Great Value, 2 in Ocean Spray Seems to be a coherent strategy congruent to store size and age. Mostly dependent on Private Label at this point Would recommend that they diversify to differentiate their selection. Opportunity based on location and size.