intro to wholesale with peter chapman
TRANSCRIPT
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