1. Grain Milks
Timothy W. Huebner

2. Silk (Milk : Dairy-Shakes & Drinks-RefgD) Pints Total Consumption 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
146 89
191
140 92
100
123
Small Scale Families Small HHs with Older Children 6+ 71 97
155 96
135 64
105
Younger Bustling Families Large HHs with Children (6+), HOH <40 62
148
218 65 38
117
Older Bustling Families Large HHs with Children (6+), HOH 40+
220
119 67 93 39
103
Young Transitionals Any size HHs, No Children, < 35
149 63 78
109
Independent Singles 1 person HHs, No Children, 35-64
102 60
131 51 46
Senior Singles 1 person HHs, No Children, 65+ 56 82 66 55
Established Couples 2+ person HHs, No Children, 35-54
125
138 72 74 91 94
Empty Nest Couples 2+ person HHs, No Children, 55-64
121
104
114
107 59
Senior Couples 2+ person HHs, No Children, 65+
152
144
160 90
115
126
111 85 68
Category Snapshot

3. Category Demographics

4. Brand Differences

5. Until recently I just saw these as something for people who were lactose intolerant
Size, in US sales:
$1.38B in 2008 = high
Projected to exceed $1.7B by 2016 [1]
8.5% Category Penetration
Marsh Supermarket Data on the broader category
Interest in penetration, purchase cycles, deal
Category Role

7. Stores
# SKUs
% of Cat
WM, MLK 46
53.5%
WM, Pleasant Crossing 44
51.2%
Ozark Natural Foods 22
25.6%
Harps, w. Sunset 28
32.6%
Aldi’s, MLK 7
8.1%
Target, Promenade 4
4.7%
The Wal-Mart on MLK had the highest percent with 53.5%
Products located near diary products in stores
Retailers Audited

8. Changes In category New Suppliers: Vanished Suppliers: Califa Farms
Quality Chekd
So Delicious
Organic Valley
Earth Balance
Eden Soy
SimplyMade
Better Than Milk
Friendly Farms
West Soy
Clearly Organic
Good Karma
Changes In category

9. Changes in Category, cont…
%GM’s have decreased across the board
Prices, for the most part, have gone down.
Great Value grain milk, have increased in price
Total number of facings for the category has drastically increased along with category depth
Individual facings for SKUs have stayed approximately the same
I predict that, as depth increases, there will be drastically increased competition for shares of display
I still see the category taking a back burner to other more contemporary dairy beverages
Changes in Category, cont…

10. The Suppliers All Suppliers: Silk – Largest brand Blue Diamond
Great Value
Hiland
Rice Dream
Califa Farms
Earth Balance
SimlyMade
Friendly Farms
Clearly Organic
Good Karma
8th Continent
The Suppliers

11. The Suppliers, cont… Silk was the dominant brand because:
Most SKUs
Present in every store except Aldi’s (which is devoted to PL)
Stocked in 5/6 stores
Stocking rate
West Soy - gone
Major firms with little shelf space, single facings, strange or lo9w margins?
Target had surprisingly low shelf space for this category
Ozark Natural Foods had percent margins % higher on some products
Likely do to MUCH higher prices
The Suppliers, cont…

12. Sku’s 86 total SKU’s discovered in audit
Compared to 47 in 2012 audit
40 in 2011
24 in 2010
Supplier w/the most SKU’s of the identical product/formulation
- Ocean Spray had 34 SKU’s
- Private Label had 37 SKU’s
This leaves 23 SKU’s for the other five brands found
Adjacencies next to Cranberry Juices: Other Juices i.e. Grape Juice, V-8 Juices, etc.
Location: in the middle of the aisle
MLK Walmart had 22 Silk SKUs out of a total of 46 SKUs – THAT’S 47.8%!!!
Sku’s

13. Stores Trade area demographics for specific stores
Anticipated depth for the stores of interest to group members
Store without any evidence at category management—no relationship between demographics and category depth
Stores

14. Stores

16. Gross Margins Highest Costs: Private Label … Stocking Rate
Silk – 0.045/oz
Blue Diamond – 0.047/oz
Private Label
0.3/oz …
Stocking Rate
Gross Margins

17. Private Labels Great Value’s prices have been rising
High quality PLs in Organic stores; also high costs
Good Losers
Private Labels

18. 1 http://www. prnewswire
1 beverages-in-the-us-soy-milk-almond-milk-rice-milk-and-other- dairy-milk-alternatives html
Spectra
Bibliography