1. In The Olive Oil Category?
By Cindy Beam & Michael Young
So What’s Cooking
In The Olive Oil Category?

2. Introduction Who is in control – retailer or brand?
We say retailer with a few exceptions

3. Importance of Depth Depth is very important Audited 15 stores
Total 181 SKUs
Depth has increased significantly
Depth seems to be tied more to target market than competing stores

4. Typical Walmart SKU’s
$0.35/ .oz
$0.30/ .oz
$0.28/ .oz

5. Typical Fresh Market SKU’s
$2.05/ .oz
$0.76/ .oz
$1.76+/ .oz

7. Category Role Flagship Option 2* Maintain sales/increase profits
Sales Volume (000)
HH Penetration
Gross Margin**
Olive Oil
Total U.S.
$722,133.6
37.8
45%
West South Central
$58,942.9
32.6
ACN Olive Oils WSC 07
* Robert Blattberg, PhD. (Consumer-Centric Category Management, pg.88)
**Estimate based on the sample stores

8. Strength of Leading Brand
Bertolli dominates
Multiple SKUs at 10 of our 15 stores
ACN: Bertolli Item $s are 17% of US category
Average Gross Margin about 45%

9. Market Stocking Rate Sum of store count / (#SKUs X #stores) Brand
Bertolli 56
135
.41
Crisco 31 90
.34
Pompeian 39
120
.33

10. Gross Margin Estimates by Brand
Report
Manufacturer
WLM 6th St GM%
HPS GarlandGM%
Aldi's 6th St.GM%
IGA SchoolGM%
TFM Prom GM%
Bertolli N 8 3 2
Mean
45%
42%
47%
43%
Carapelli 4 1
51%
60%
Colavita
30%
62%
Cookwell
Crisco 6
29%
38%
Davinci
34%
De Cecco
Filippo 5
23%
54%
Gem
71%
Lucini
Newman'sOwn
28%
Olivari
41%
Other 9 32 47
44%
46%
Pompeian 7
Private Label
56%
58%
49%
55%
Star
32%
Total 62 23 52 57
44.25% Gross Margins
55.5%, carried in two stores
36.67%
Bertolli- Category Leader (Averages around 44% GM)
Carapelli- Higher GM than Bertolli (56%) but carried only in Walmart and Harps
Private Labels- Present in 14 stores out of 15 in audit. (93.33%) averages 52.8% GM
IS THIS CONSISTENT WITH YOUR ROLE FOR YOUR CATEGORY?
Yes,
52.8% GM (93.3% store presence)

11. Is This Consistent with Your Role for the Category?
Provides value for the customer by meeting their routine, or stock-up, needs.
Various consumer uses
Pricing among competitors.
Promotion Characteristics
Healthier substitute for cooking oils
Space Allocation
Assortment Characteristics
IS THIS CONSISTENT WITH YOUR ROLE FOR THE CATEGORY>
Yes, olive oil’s role in their category is “ROUTINE”. Customers purchase olive oil as a “stock up item”.
-Retailers tend not to use this category as a primary category to “define” the retailer.
Not a seasonal item, although prices fluctuate based on the time of year.
Olive Oil can be used secondarily as a Convenience/ Impulse item if it is “discounted” by retailer on promotion.
PRICING AMONGST COMPETITORS
Pricing amongst competitors is around (0-5%) on a blended basis.
PROMOTIONS
-Olive Oil can be found within the grocery section of the store (mainly on end caps) displayed frequently.
SPACE ALLOCATIONS
-Single assigned space found within the retailer’s logical traffic flow. Not found at checkout/ various multiple locations usually (Destination Role, Seasonal Role, Convenience Role- Impulse) not found in a prime location.
ASSORTMENT CHARACTERISTICS
-Broad variety focused on major brands and better sellers, saturated Private Labels.

12. Relationship Between Gross Margins & Depth
WLM 6th St GM$
WLM 6th St Face N
Mean 1 6
$2.09 2 31
$3.04 3 14
$3.57 4
$1.51 5
$1.50
$2.68 7
$2.91 8
$2.54 9
$1.82
Total 62

13. Relationship Between Gross Margins & Depth
TFM Prom GM$
TFM Prom Face N
Mean 1 37
$8.14 2 17
$5.82 3
$5.84
Total 57
$7.32

14. Relationship Between Gross Margins & Depth
IGA SchoolGM$
IGA School Face N
Mean 1 6
$4.00 2 21
$3.82 3 15
$3.80 4 5
$3.02
$2.41
$4.52 7
$3.69
Total 52
$3.77

15. Private Label Opportunities
How strong are private labels?
Products
TOTAL
Parent Folder
% Penetration
Index
Quadrant
Colavita (Shortening, Oil : Olive Oil) Oz. **
Olive Oil
0.7%
119
1.High Index / High Penetration
Botticelli (Shortening, Oil : Olive Oil) Oz. *
1.2%
118
Capatriti (Shortening, Oil : Olive Oil) Oz. **
Bertolli (Shortening, Oil : Olive Oil) Oz.
6.0%
114
Filippo Berio (Shortening, Oil : Olive Oil) Oz.
6.8%
Star (Shortening, Oil : Olive Oil) Oz.
1.9%
111
Carapelli (Shortening, Oil : Olive Oil) Oz.
1.6%
110
Private Label (Shortening, Oil : Olive Oil) Oz.
18.8%
Pompeian (Shortening, Oil : Olive Oil) Oz.
5.1%
109
Crisco (Shortening, Oil : Olive Oil) Oz.
3.2%
107
Mazola (Shortening, Oil : Olive Oil) Oz. *
0.8%
100
Carbonell (Shortening, Oil : Olive Oil) Oz. **
0.5%
121
2.High Index / Low Penetration
California Olive Ranch (Shortening, Oil : Olive Oil) Oz. **
0.3%
113
Vigo (Shortening, Oil : Olive Oil) Oz. **
0.4%
Delallo (Shortening, Oil : Olive Oil) Oz. ***
Goya (Shortening, Oil : Olive Oil) Oz. **
Da Vinci (Shortening, Oil : Olive Oil) Oz. ***
0.2%
106
Racconto (Shortening, Oil : Olive Oil) Oz. ***
101
Napoleon (Shortening, Oil : Olive Oil) Oz. ***
Olivari (Shortening, Oil : Olive Oil) Oz. ** 97
4.Low Index / Low Penetration
Gem (Shortening, Oil : Olive Oil) Oz. ** 91
Pampa (Shortening, Oil : Olive Oil) Oz. *** 89
ACN Homescan Product Library

16. Private Label Opportunities
Stores Carrying P/L’s and their Gross Margins
P/Ls make up over 30% of total dollar share of the US category ($216,278,900)
Manufacturer
WLM 6th St GM%
HPS GarlandGM%
Aldi's 6th St.GM%
IGA SchoolGM%
TFM Prom GM%
Bertolli N 8 3 2
Mean
45%
42%
47%
43%
Private Label 7 5 6
56%
58%
49%
55%
46%
Total 62 23 52 57
41%
44%

17. Olive Oil Gross Margin % Trends

18. Recommendations on Private Label Use
Increase in-store cross merchandising
Introduce low cost strategies to enhance P/L image
Increase facings of higher GM% P/L products…with limits
Introduction of premium P/L products

19. QUESTIONS??