By: Bill Ferguson 12/7/11

Overview• Total U.S. Sales for alcoholic beverages is $15,075,290,000

• Bourbon accounts for $347,856,000

• Jack Daniels accounts for $104,862,000

• In the store audits conducted there was 146 different SKUs

• In the store audited there was 0 private labels

• Jack Daniels was dominated accounting for 17 different SKUs • Jack Daniels also leads the number of facings with 43

OverviewStores Audited # of SKUs # of Unique SKUs

West Siloam, OK 97 3

Liquor World, AR 95 13

Walmart Jane, MO 61 0

Liquor Depot, AR 26 0

Sam’s Club, AR 44 0

• Main retailers are Liquor World, Walmart, and West Siloam

Prevalent Brands• Jack Daniels• Jim Beam• Evan Williams • Maker’s Mark• Old Charter

Demographics

• Bourbon is consumed by mainly higher income households

• If private label was to be introduced to this market it may capture the lower income households

Demographics

• Households with 2 members are more likely to drink bourbon• Households with more than 2 members have children (to busy to drink)

Demographics

Bourbon is very popular in households w/o femalesBourbon is highly enjoyed by older households as well

Dominant BrandsThe dominant manufacture is Fortune Brands

They make Jim Beam

Which is lower cost than Jack Daniels therefore better GM

Dominant Brands

These brands have a high stocking rate due to the popularity of these 5 brands and the amount of sales

Margins• Bourbon is a Cash Machine Category

• B/c it has high Gross Margins and medium sales volume

• It grosses over $340 million a year

• Bourbon overall has wonderful Gross Margins

• It has a great deal of shelf space

• Jack Daniels accounts for over 100 million in sales

• On average the top brands have very high gross margins

Questions

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