Brands Positioning

For Cheese At Retailer X

Slices, Shreds, Sticks, and

Chunks

Brands Positioning

47% 42%

21% 23%

8% 7%

7% 6%

6% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

LY Share (rolling 52) Current Share (rolling 52)

Natural Cheese Share - Top 5 Brands

CRYSTAL FARMS

BORDEN

SARGENTO

KRAFT

PRIVATE LABEL

Natural Cheese Private Label Share Shift

Volume has grown YOY by 2% but Private Label has lost 5% share to

national brands (KRAFT)

-5%

Source: IRI – Rolling 52 weeks – 11/30/14

Natural Cheese Volume 19,814,467

Natural Cheese Volume LY 19,366,857

% Change 2%

Rolling 52 Volume View

Promotional Activity

For Chunks, shreds, slices, and sticks

Methodology: Food For Thought

Upon reviewing the slides please keep in mind the following:

• Purpose: To identify the promotional strategies of National Brands vs.

Private Label

• Key Variables: 1. How steep the National Brands’ discounts are compared to Private Label 2. How frequently the National Brands are promoting compared to Private Label

• Measures used in the analysis are: • Average Price Per Unit • Average Promoted Price Per Unit • Difference between the Avg. Price Per Unit and Avg. Promoted Price Per Unit =

Average Difference • Please note: If the Average Promoted Price Per Unit is zero, the difference

between Avg. Price Per Unit and Avg. Promoted Price Per Unit is zero

• Scope of Analysis • Natural Chunks, Shreds, Sticks, and Slices • Processed Slices

Source: IRI Data – Weekly Sales Data Dec. 8th, 2013 through Nov. 30th, 2014

Average Promotion Price – Natural Chunks Cheese

Private Label promotions are less frequent than the National Brands

Diff. Between Avg. Price and Avg. Promo Price

-$2.50

-$2.00

-$1.50

-$1.00

-$0.50

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

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Promotional Variance - Chunks

Kraft Foods Crystal Farm Sargento FoodPrivate Label Borden Average Difference for Chunk

-$3.00

-$2.50

-$2.00

-$1.50

-$1.00

-$0.50

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

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013

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014

Promotional Variance - Shredded

Kraft Foods Crystal Farm Sargento Food

Private Label Borden Average Difference for Shredded

Average Promotion Price – Natural Shredded Cheese

In the 2nd and 4th quarter, Private Label is not promoting as frequently or steeply

as the National Brands

Diff. Between Avg. Price and Avg. Promo Price

Average Promotion Price – Natural Sliced Cheese

For the majority of the time Private Label promotions are in-line with National Brands,

however, they are not offering as steep of a discount as the National Brands

Diff. Between Avg. Price and Avg. Promo Price

-$0.80

-$0.60

-$0.40

-$0.20

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

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Promotional Variance - Sliced

Kraft Foods Crystal Farm Sargento Food Private Label Borden Average Difference for Sliced

-$1.90

-$1.60

-$1.30

-$1.00

-$0.70

-$0.40

-$0.10

$0.20

$0.50

$0.80

$1.10

$1.40

$1.70

$2.00

$2.30

$2.60

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Promotional Variance - Stick

Kraft Foods Crystal Farm Private Label

Sargento Food Average Difference for Stick Saputo Cheese

Average Promotion Price – Natural Snack Cheese

Kraft dominates the segment. There is little to no promotion activity from

Sargento, Crystal Farm Saputo or Private Label

Diff. Between Avg. Price and Avg. Promo Price

Stick and String cheese

Average Promotion Price – Processed Sliced Cheese

For the majority of the time Private Label promotions are in-line with

National Brands

Diff. Between Avg. Price and Avg. Promo Price

-$2.00

-$1.50

-$1.00

-$0.50

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

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Promotional Variance - Sliced

Kraft Foods Borden Private label Average Difference for Slice

Brand Positioning

For Chunks, Shreds, slices, and sticks

Methodology: Food For Thought

Upon reviewing the slides please keep in mind the following:

• Purpose: To identify the relative pricing of brands sold to discover

redundancy

• Key Variables: 1. The Average Price gap between the National Brands (Borden, Crystal Farms,

Kraft and Sargento) and Private Label 2. Which brands are consistently redundant

• Measures used in the analysis are:

• Average Price in OZ ( Calculated based on Average Price divided by Oz) • Dollar Sales

• Scope of Analysis

• Natural Slices, Shreds, Chunks, and Sticks • Processed Slices

Source: IRI Data – Weekly Sales Data Dec. 8th, 2013 through Nov. 30th, 2014

Brand Positioning – Natural Chunks

Chunks – Brand Positioning

4 brands in the

same pricing

segment

Redundant

brands

Brand Positioning – Natural Shreds

Shreds – Brand Positioning

All 5 brands are

in the same

pricing segment

Redundant

brands

Brand Positioning – Natural Sliced

Sliced – Brand Positioning

Redundant

Brands

3 brands in the

same pricing

segment

Brand Positioning – Natural Snacks

Stick– Brand Positioning

Sales are

Negligible:

Brand Serves

Little Purpose

Stick and String cheese

Brand Positioning – Processed Sliced

Processed Sliced – Brand Positioning

3 brands in

the same

pricing

segment

Conclusion

Key Insight:

• Seeing as both Crystal Farms and Borden generally fall in the same pricing brackets as the other brands AND the sales of the two brands are, relative to the others, rather small, we would recommend removing the brands and replacing with Private Label SKUs

This would allow Retailer X to optimize their profit and increase variety

in assortment and customer loyalty