intro to wholesale with peter chapman

You love to grow it, Now let’s sell it

You love to grow it, now let’s sell it

Retail landscape

Must have

Nice to have

Behind closed doors

Getting organic in the cart

Retail landscape

Retail landscape-1980’s Large store Traditional Discount

10% 70% 20%

Retail landscape-1990’s Large store Traditional Discount

15% 60% 25%

Retail landscape-2000’s Large store Traditional Discount

20% 50% 30%

Retail landscape-2013 Large store Traditional Discount

25% 40% 35%

Retail/other landscape-2013

Specialty Food service Drug

     Farm  Markets  

   CSA  

Linear footage

Dairy 495 712 690 704

Frozen 495 1,800 1,710 1,080

Core groc 2,574 3,592 5,292 3,524

Water/pop 1,176 1,844 1,454 1,068 Chips/snacks

Household 1,680 1,692 1,376 880

Imported 144 504 852 320

Total 6,564 10,144 11,374 7,576

380 Wal Mart stores 222 Wal Mart Super Centers Annual sales $466,100,000,000

14.2 x Loblaws 27.3 x Sobeys 36.9 x Metro 6.3 x Target 4.6 x Costco

A changing customer

More focus on value

A changing customer

More focus on value

National business

A changing customer

More focus on value

National business

Blurring of channels

A changing customer

More focus on value

National business

Blurring of channels

U.S. share

What do you need?

Must have when selling to retail

Confidence

Must have when selling to retail

Food safety/certification

Must have when selling to retail

Consistent execution

Must have when selling to retail

Technology/EDI

Must have when selling to retail

Packaging & labels

Nice to have when selling to retail

Promotion

Weekly ads

“36% of sales and 48% of tonnage are items with a temporary price reduction” A.C. Nielsen “State of the Industry report”

Nice to have when selling to retail

Nice labels

Nice to have when selling to retail

Assortment

Nice to have when selling to retail

Volume

Behind closed doors

Organic to a retailer

1 of 50,000 skus

Your item to build…

not mine

Behind closed doors

What we like

Point of differentiation

Premium price per unit

Your passion

A committed consumer

Control label organics

Assortment

Behind closed doors

What we don’t like

Herding cats

Resistant to change

Inconsistent supply

Shrink

Front end

Different method of doing business

Behind closed doors

A few numbers

Produce margin

Shelf  G.P.   45.0  

Ad  investment   5.0  

Shrink   7.5  

Labour   12.0  

Supplies   1.5  

Contribu<on   19.0  

Retailer profitability

Shelf  G.P.   27.0  Ad  investment   5.0  Shrink   2.0  Labour   7.5  Fixed  exp.   2.5  Variable  exp.   1.5  Distribu@on   7.0  Total  expenses   25.5  

Profit   1.5  

Shrink 10%-15%

Penetration 5%-8%

Selling more organic

Getting started

Getting started

A plan

Growing sales

Persistence

New items

Different items

Control label

Relationships

Thank you