Apple JuiceAmanda PetersKaty Beasley

Overview

• Overall Apple Juice category in 2007 had sales of $616,309,900.

• Private Label accounted for 39.9% of those total sales.

• Retailer seem to have strong private label brands that play a significant role in this category.

Audited Stores• Wal-Mart- Bentonville

• Wal-Mart- Pleasant Grove

• Target- Pinnacle Hills

• Target- Fayetteville

** Private Label leads

Store SKU Dominating Brand

Wal-Mart: Bentonville

15 Great Value

Wal-Mart: Pleasant Grove

17 Great Value

Target: PH 10 Market PantryTarget: Fayetteville 11 Market Pantry

Demographics• Overall the demographics for Apple Juice brands

vary. The private label brands are mostly families that have an income between $40,000 and $70,000 with 5+ members in a family, and with kids less than 6 years old. Also, with the age of the female of 44 years old and less

• Old Orchard was the main brand that dominated lower income families with 5+ members in the family

• Tree Top is the leading brand that dominates the income range of $50,000-$69,999

DISTRIBUTION OF PANEL

DOLLAR VOLUME INDEX

DISTRIBUTION OF PANEL

DOLLAR VOLUME INDEX

DISTRIBUTION OF PANEL

DOLLAR VOLUME INDEX

DISTRIBUTION OF PANEL

DOLLAR VOLUME INDEX

TOTAL HOUSEHOLDS 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0INC - <$20,000 19.5 66.8 19.5 25.1 19.5 93.9 19.5 41.1

INC - $20,000-29,999 14.2 60.5 14.2 44.4 14.2 94.0 14.2 97.4INC - $30,000-39,999 11.7 78.3 11.7 120.0 11.7 30.7 11.7 78.4INC - $40,000-49,999 9.7 132.8 9.7 104.3 9.7 60.4 9.7 105.1INC - $50,000-69,999 14.9 145.1 14.9 81.9 14.9 98.1 14.9 158.2

INC - $70,000+ 14.1 138.5 14.1 195.2 14.1 152.8 14.1 96.1INC - $100,000+ 15.8 95.3 15.8 156.6 15.8 143.2 15.8 136.2

SIZE - 1 MEM 24.4 40.9 24.4 32.8 24.4 77.4 24.4 32.9SIZE - 2 MEM 31.4 66.8 31.4 82.3 31.4 51.1 31.4 83.5

SIZE - 3-4 MEM 32.4 144.2 32.4 154.8 32.4 123.1 32.4 155.9SIZE - 5+ MEM 11.9 188.7 11.9 135.2 11.9 212.7 11.9 128.8

AGE FH - UNDER 35 19.6 168.1 19.6 168.8 19.6 96.4 19.6 99.0AGE FH - 35-44 16.1 167.0 16.1 136.3 16.1 194.4 16.1 137.6AGE FH - 45-54 20.1 74.7 20.1 71.3 20.1 66.1 20.1 94.9AGE FH - 55+ 25.5 66.7 25.5 91.2 25.5 66.0 25.5 73.7

AGE FH - 55-64 12.9 69.9 12.9 97.2 12.9 59.6 12.9 92.1AGE FH - 65+ 12.6 63.5 12.6 85.0 12.6 72.5 12.6 54.9

AGE FH - NO FEMALE HEAD 18.7 43.8 18.7 39.6 18.7 105.4 18.7 110.1KIDS - NONE < 18 61.4 56.4 61.4 61.0 61.4 65.0 61.4 58.8KIDS - ANY < 18 38.6 169.2 38.6 161.9 38.6 155.6 38.6 165.4KIDS - ANY < 6 14.9 268.8 14.9 240.9 14.9 204.4 14.9 152.6

KIDS - ANY 6-12 20.3 165.0 20.3 119.4 20.3 156.1 20.3 186.1KIDS - ANY 13-17 18.4 132.2 18.4 93.2 18.4 123.8 18.4 91.3

LS - YOUNG SINGLES NA NA NA NA NA NA NA NA

TREE TOP - FRUIT JUICE - APPLE - SHELF STBL

OLD ORCHARD - FRUIT JUICE - APPLE - SHELF STBL

MOTT'S - FRUIT JUICE - APPLE - SHELF STBL

CTL BR - FRUIT JUICE - APPLE - SHELF STBL

Category Role• Category sales for Apple Juice in 2007 were

over 600 million dollars.• Apple juice continues to maintain margins up

to 53%. Private label has the highest estimated gross margin.

• As a category Apple Juice is a Cash Machine

Ad Hoc Base ITEM $

(000)DOLLAR SHARE

ITEM BUYERS

(000)

ITEM PENETRATI

ON

ITEM $ PER ITEM TRIP

ITEM UNITS PER ITEM

TRIP

% REPEAT BUYERS (%

2+ TIME BUYERS)

LOYALTY (SHARE OF $

REQ.)

% ITEM $ ON DEAL

% DOLLARS WITH

MANUFACTURER COUPON

FRUIT JUICE - APPLE - SHELF STBL

57,112.5 100.0 4,898.4 37.7 2.8 1.5 63.1 100.0 14.9 2.8

CTL BR - FRUIT JUICE - APPLE - SHELF STBL

27,604.0 48.3 3,234.0 24.9 2.6 1.5 56.1 65.4 12.5 0.0

MOTT'S - FRUIT JUICE - APPLE - SHELF STBL

5,315.7 9.3 996.6 7.7 2.9 1.4 37.0 32.1 17.4 2.7

MUSSELMAN'S - FRUIT JUICE - APPLE - SHELF STBL NA NA NA NA NA NA NA NA NA NA

OLD ORCHARD - FRUIT JUICE - APPLE - SHELF STBL 2,294.3 4.0 506.6 3.9 2.1 1.5 35.9 28.5 19.0 0.7

TREE TOP - FRUIT JUICE - APPLE - SHELF STBL

6,266.6 11.0 994.8 7.7 2.5 1.3 38.1 37.7 30.8 13.4

Brand Domination• Great Value, out of all 10 stores that were

audited, had the greatest share of display space

• Mott’s 1 Gallon 100% Apple Juice appears in 7 out of 10 stores

Share of facings by Manufacturer

Gross Margins• Top 5 gross margins

• Wal-Mart- 54%• Nestle- 44%• Mott’s-37%• Tree Top- 28%• Target- 23%

Gross Margins

Private Label • Private label is significant in the Apple Juice

category.• Wal-Mart had 30 facings dedicated to Great Value

• Private label was seen in every store.• Private label had the leading gross margins.• Retailers are committed to their Private label brands

versus National brands.• Private label dollar share percentages have slightly

decreased from 2005; however, total dollar sales have increased.

Recommendations• Our recommendations for Target would be to

increase their shelf space dedicated to private label if they want to compete with Wal-Mart in this category.