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Supplier/Distributor Playbook

2015 Holiday Wine Program

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IntroductionThis October, November, & December we will be featuring our WINE CATEGORY sales event called the “Celebrate the Holiday With Great Wine - Under $20/Under $15”. Our program will focus on our great tasting wines that feature two important price points that our customers ask for. We will also emphasize wine education and food pairings, with plans to engage wine steward stores, which will drive incremental sales and profit dollars for the Adult Beverage Wine Category. We have developed the opportunity to feature our top selling wines at these great values!

You may have noticed our competitive landscape has changed significantly in recent years with the proliferation of mega-liquor stores such as Total Wine, Spec’s, and Bev-Mo. Wine is becoming a significant category at places like Target, at Drug Stores, and even some Dollar Stores! What can we do to prevent an erosion of sales to these competitors? We can begin by listening to our customers!

Dunnhumby insights suggest our greatest competitive advantage vs. non-traditional rivals is to leverage the total store we have to offer in conjunction with the availability of Wine. Our shoppers enjoy Wine with their meals, as an element of family get-togethers, celebrations, and parties. What all of these occasions have in common is FOOD! Our Kroger Co. Family of Stores offers every type of food imaginable to accompany any event. This is one-stop shopping at its finest!

As this program evolves, keep in mind that our goal is to highlight this advantage, while continuing to provide a seasonally relevant selection of wines at competitive retails, with educational materials included for our customers.

Cheers.

The Wine Team - The Kroger Co.

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Program Name: Celebrate the Holiday With Great Wine - Under $20/ Under $15

Program Dates:  W1 P10 – W4P12 (Week beginning October 11 ) - Displays Built – W1P10. - This Wine event includes the Fall/Winter selling period. - This program is a #3 Adult Beverage priority in the grocery display plan.

Program Description: Celebrate the Holiday’s With Great Wine - Under $20/ Under $15 Program is a key Adult Beverage Wine category national initiative and featuring the following loyal customer program elements:

Items: Selected SKU’s are data driven by division, by state and by cluster. Quantities and assortment vary by store segment.

Grocery Sales Plan: This program will be supported as a center aisle display in the grocery sales plan.

Signage Kit: Includes base wrap, stanchion sign, customer brochures, and holder. POS kits will arrive to the stores W4P9. The POS kit will be directly mailed to your stores or third party provider, as directed by the Division.

Display Builds: Your Constellation or Gallo distributor/wholesaler will be responsible for building the displays and executing the point-of-sale.

Audit Form: BEFORE leaving the store, distributors will be required to ask the store’s to sign off that they have built the display to expectations and that it is properly signed with price signs.

Program Objectives:  •To grow wine sales during the program•To execute the program in 95% of our stores, as outlined in the program.•To gain execution feedback and pictures of all stores participating in the program. 

Celebrate the Holiday’s

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Point of Sale/Marketing Elements• Artwork/Elements being developed by Kroger Marketing

Services.• Theme: “Celebrate the Holiday With Great Wine- Under

$20/ Under $15”- Look and feel to fit the total store seasonal trend.

• POS is focused on featuring top selling wines at great values.

• Upscale stores will receive Under $20 messaging• Mainstream and Value stores will receive Under $15

messaging.

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POS Elements Mainstream/Value Stores (Under $15)Stanchion

Brochure

Basewrap

Display Look of Success

*Creative/graphics WILL change.

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POS Elements Upscale Stores (Under $20)Stanchion

Brochure

Basewrap

Display Look of Success

*Creative/graphics WILL change.

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Supplier/Distributor In-Store Execution

We will continue to utilize our DISTRIBUTOR/SUPPLIER RESOURCE PORTAL, which provides all resources needed for distributor reps to execute a successful in-store program. The portal contains the following:

• Division POG’s• Display Build Schedules• Distributor/Supplier Playbooks• POS Installation Instructions – if applicable• Division Store Lists• Display Photo's "Look of Success.” • The portal also includes the Online Audit Survey – which each distributor must fill out after completing the build and

upload a photo. • POS tracking will be made available as soon as the Kits ship to the stores.

SUPPLIER/DISTRIBUTOR RESOURCE PORTAL LINK: www.executionresourcecenter.com (currently being updated)

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Supplier/Distributor ExecutionKEY REMINDERS FOR SUCCESSFUL EXECUTION:

POS Kits & Display Building• Please Do NOT build display's prior to the outlined dates, as POS will not be available – if a change needs to occur,

notify Masterpiece-USA immediately to accommodate.• When building the displays refer the division Planogram's for accuracy of size and items.• Reps will need to secure a photo of the completed display for audit purposes – THIS PHOTO NEEDS TO BE UPLOADED

AFTER THE REP HAS FILLED OUT THE ONLINE AUDIT FORM.

Audit Process• On the day display's are built & POS is attached, distributor reps are required too complete an audit form via the link

below (no faxing needed)- LINK AVAILABLE ON THE SUPPLIER/DISTRIBUTOR RESOURCE PORTAL AS WELL.• Photo will be required to be uploaded at the end of the audit survey as well.

ONLINE EXECUTION AUDIT SURVEY: http://www.executionresourcecenter.com/display-audit-form.html (currently being updated)

WE APPRECIATE ALL THAT YOU DO! IF YOU HAVE ANY QUESTIONS YOU MAY CONTACT SUZANNE WEITHOFER OR ANY MEMBER OF THE WINE TEAM! (Contact information on last page of this presentation)

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Consumer Elements (under development)

Kroger Radio

Kroger.com

(Scripts written by MPUSA for the divisions to utilize)

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Contact Information:Kroger National Wine Team:Ryan McHendry (513-698-1863)Pat Byrne (513-762-4465)Lisa Beth Miller (513-762-4799) Jared Pachta (513-762-7002)Dave Morehead (513-762-4559)Diane Farfsing (513-698-1732) Masterpiece USA (Project Manager/POS):Suzanne Weithofer (513-218-2962) suzanne.weithofer@masterpiece-usa.com