2. By Jason Klotz

3. Overview Total category sales for Barbecue Sauces in 2007 was $247,875,900 108 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

4. 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)

5. 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 - <$20,000 33.960.6100.741.446.6 INC - $20,000- 29,999 35.771.096.527.770.6 INC - $30,000- 39,999 57.8109.7117.469.580.1 INC - $40,000- 49,999 141.495.6106.085.399.2 INC - $50,000- 69,999 135.9120.3107.595.4120.0 INC - $70,000- 99,999 157.8118.3102.2183.0146.8 INC - $100,000+ 128.3119.479.4163.9124.8 Kraft consistent presence in all income ranges Specialty barbecue sauces trend in high income households …Household Income

6. 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 47.341.943.082.137.4 SIZE - 2 MEM 102.492.179.097.5104.6 SIZE - 3-4 MEM 145.9129.9136.8113.2127.9 SIZE - 5+ MEM 90.4181.0198.7113.7160.0 …Household Sizes buying barbecue sauces

7. 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 35 104.0123.6123.0107.4114.6 AGE FH - 35-44 134.0136.5137.0128.8153.5 AGE FH - 45-54 139.1120.4122.293.4130.1 AGE FH - 55+ 49.569.880.360.774.5 AGE FH - 55-64 66.986.799.181.993.6 AGE FH - 65+ 31.652.561.139.155.0 AGE FH - NO FEMALE HEAD 101.772.656.0133.050.7

8. ManufacturerMLK Walmart Mall Walmart Harps Rogers Target Rogers Kraft% of Total Facings25%31%30%37% % of Gross Margin10%11%19%18% N1915124 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.

9. 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

10. 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.

11. 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