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Page 1: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett
Page 2: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Joyce ChandlerChief of Perishables, Acting

Page 3: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Industry: DeCA:Al Oliver – Military Produce Group Joyce ChandlerDavid McMurtry – Kraft Foods Bonita MoffettRandy Meador - Kraft Foods Les SimpsonTim Brown – Empower IT, Inc. Bridget BennettKimberly Dressler – Sara Lee David Leffert

Lou KennedyRandi

RobinsonAmy Perkinson

Page 4: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

• DeCA’s Vision of the Perimeter/Importance

Increasing sales and patron awarenessPerimeter drives patron savingsPerimeter offers the greatest opportunity to build and solidify customer loyalty and capture sales lost to civilian retailers

Page 5: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Fresh Meat $3.22/lb Dairy $2.51/unitFresh Seafood $5.28/lb Frozen $3.51/unitDeli $6.04/lb Bakery $4.42/transaction

Chilled Meat (UPC) $2.76/lbChilled Meat (Random Wt.) $1.85/lb

Fresh Fruits/Vegetables (FF&V) $0.98/lbProduce w/Grocery $2.26/lbCombined Average $1.62/lb

Page 6: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Kimberly DresslerManager, Space Strategy

Category Management Sara Lee

Page 7: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

While the center aisles still account for the majority of sales, it is the perimeter where customers are spending

most of their time. Why? Less Processed FoodRenewed interest in consuming more healthful, less processed food, and the perimeter is simply more interesting.

Shopper ExperienceThere is also more variance at play that can influence the time needed: customer service, meal planning, price, seasonality and quality.

Healthier FoodsWhen you stay on the perimeter of the store, you'll find that you end up eating a healthier and more nutritious diet.

You are now eating real food- filled with vitamins and nutrients straight from nature, not imitation fare created both to last forever on the shelf and to satisfy our society's cravings for fat, sugar and salt.

Article Source: http://EzineArticles.com/?expert=A._Chris_Moreno , Published: March 10, 2010

Page 8: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Common Shopping MethodToday, the more common way to shop is to only go down select aisles.

50% of consumers shop this way, which is a 6% increase since 2008.

Path to PurchaseShoppers are highly focused on specific sales and specific coupons when shopping conventional supermarkets.

This strongly suggests consumers are cherry picking grocery stores.

Shoppers are not going down most aisles at the frequency they used to

Article Source: UBS cites research from Kantar Retail Published: March 13, 2012

Military shoppers are highly planned & actively seek information to plan their

shopping trips

Page 9: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Source1: SymphonyIRI Group Infoscan Syndicated Reviews Data, Total US- FDMx, Latest 52 WE Mar 18, 2012Source2:  Nielsen Perishables Group FreshFacts®, TotUS, 52 weeks ending 2/25/12

DepartmentDollar Sales

(millions)Dollar % Chg

vs. YAGOUnit Sales (millions)

Unit % Chg vs. YAGO

Total Edible Sales (1) $267,544.6 3.7% 107,078.1 -1.5%

Chill $67,110.4 0.1% 25,656.8 0.0%

Frozen $34,198.5 0.0% 11,003.0 0.0%

Total Perishables (2) $87,837.7 5.1% 37,266.1 -0.3%

Bakery $6,925.6 4.3% 2,645.1 0.8%

Meat $32,580.8 5.4% 10,740.2 -1.6%

Produce $28,812.7 4.4% 20,248.8 -0.3%

Deli $15,306.4 6.9% 3,007.3 4.0%

Seafood $4,212.0 3.9% 624.5 -2.6%

Perishables are out-pacing Edible Food in dollar and unit sales growth versus YAGO

Page 10: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Quarterly dollar sales trends for Perishables continue to see 5% or greater growth versus YAGO

Source:  Nielsen Perishables Group FreshFacts®, TotUS, 52 weeks ending 2/25/12

% Chg vs. YAGO 5.0% 5.7% 6.6% 5.0%

Page 11: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

$13,573,348,352

$9,728,324,608

$6,455,872,000

$5,806,445,056

$5,080,249,856

$4,688,948,736

$4,328,664,064

$4,301,624,320

$4,042,806,272

$3,740,357,120

$2,830,923,008

$2,774,112,512

$2,609,193,728

$11,989,798,912

$9,989,911,552

$8,188,719,104

$6,159,934,464

$4,695,679,488

$4,552,313,856

$4,445,490,688

$3,649,158,656

$3,559,996,416

$3,543,880,192

$3,107,801,600

$2,928,744,448

CATEGORY - CARBONATED BEVERAGES

CATEGORY - SALTY SNACKS

CATEGORY - COLD CEREAL

CATEGORY - TOTAL CHOCOLATE CANDY

CATEGORY - BOTTLED WATER

CATEGORY - COFFEE

CATEGORY - CRACKERS

CATEGORY - COOKIES

CATEGORY - SOUP

CATEGORY - BOTTLED JUICES - SS

CATEGORY - TOTAL NON-CHOCOLATE CANDY

CATEGORY - SNACK BARS/GRANOLA BARS

CATEGORY - BABY FORMULA/ELECTROLYTES

CATEGORY - MILK

CATEGORY - FRESH BREAD & ROLLS

CATEGORY - NATURAL CHEESE

CATEGORY - FZ DINNERS/ENTREES

CATEGORY - YOGURT

CATEGORY - ICE CREAM/SHERBET

CATEGORY - RFG JUICES/DRINKS

CATEGORY - LUNCHEON MEATS

CATEGORY - RFG FRESH EGGS

CATEGORY - BREAKFAST MEATS

CATEGORY - FZ PIZZA

CATEGORY - FZ NOVELTIES

> +5% Growth vs YAGO

Perimeter categories are important for generating sales

Source: SymphonyIRI Group Infoscan Syndicated Reviews Data, Total US- FDMx, Dollar Sales, Latest 52 WE Mar 4, 2012

All Categories(millions)

Top 25 (millions)

% of Sales # of Cats +5% $ vs YAGO

Non-Perimeter(1) $149,183.5 $69,960.8 46.9% 4

Perimeter(2) $98,324.8 $66,811.4 67.9% 6

Perimeter

Non-Perimeter

Page 12: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Total Grocery stores sales are poised for continued growth as food prepared at home – the highest in 30

years!

4%

11%

9%

6%

6%

2%

1%

13%

47%Prepared In-Home

Take-Home fromRestaurants

Carried from Home

At Restaurant

On the Run

At School/Work

Guest

NR

Skipped

Distribution of Eating Opportunities(Share Change 2006 – 2011)

At Home51%

(+4.2 share pts)

Away from Home34%

(-4.2 share pts)

*Source: NPD Group / National Eating Trends and CREST Services U.S. 2011

(+4.1 pts)

(+0.1 pts)

(+1 pt)

(-0.3 pts)

(-1.4 pts)

(-0.7 pts)

-0.2 pts)

(-0.3 pts)

(-2.2 pts)

Page 13: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

7 of the top 10 foods consumed at home are from Perimeter categories

*Source: NPD National Eating Trends, 2011

Percent of Individuals Consuming In-Home at Least Once in Two Weeks

90

86

80

77

74

74

71

71

67

60

1. Sandwiches

2. Vegetables

3. Potatoes

4. Salty Snacks

5. Bread

6. Fruit

7. RTE Cereal

8. Chicken

9. Salads

10. Eggs Perimeter

Non-Perimeter

Page 14: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Across the store, Perimeter categories hold high share of sales made during pantry stock-up trips

Source: SIG Consumer Network 52wks ending 8/11, Every SIG Reviews Category Compared Trip Types defined by SIG

Share of Category Dollar Sales Made During Pantry Stock Up TripsTop store categories ranked on dollar share

Perimeter

Non-Perimeter

60%of Military trips are Stock-Up

Page 15: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Eat Better: Quick Tips - Grocery Shopping

Avoid shopping on an empty stomach. You’re more likely to make impulse purchases on less nutritious items that cost more.

Make a shopping list. If you keep a running list at home of items that need to be replaced, you won’t have to worry about forgetting anything. Use this sample grocery list.

Shop the perimeter of the store.The freshest and best foods are generally located around the outside aisles (or perimeter) of the store. You may need to go to specific aisles for other healthy items such as canned beans, nuts and natural peanut butter, dried fruit, and high fiber cereal, although these are sometimes found along the perimeter also.

Shopper is focused on eating healthy, most health-base web-sites are steering consumers to the Perimeter

Article Source: http://www.inshapeindiana.org/93.htm

Page 16: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Tim BrownVP, Business Solutions

Empower IT, Inc.

Page 17: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter Overview• Total Perimeter category dollars +5.4% 2011 vs 2010• Perishable categories outpacing total Edible categories• DeCA Perishable growth slightly ahead of retail, but Chill/Frozen

outperforming

Department Dollar Sales(millions)

Dollar % Chg vs. YAGO

Retail Dollar % Chg vs.

YAGO

TOTAL DeCA 5,669.9 2.8%

Total Edible (1) 4,408.6 4.2% 3.7%

Chill 768.8 7.6% 0.1%

Frozen 510.8 1.6% 0.0%

Total Perishable (2) 1,113.1 5.7% 5.1%

Produce 481.9 4.4% 4.4%

Meat 443.3 7.6% 5.4%

Deli 140.9 6.0% 6.9%

Bakery 47.0 .9% 4.3%

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

Page 18: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter - 2 Year Sales Trends by Period

Perishables sales increased 2011 vs. 2010 in each period

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

Bakery, Deli, Meat, Produce

8.6 8.7 7.2 6.3 8.5 8.0 6.9

$0

$20

$40

$60

$80

$100

$120

2010 Total Perishable 2011 Total Perishable

Page 19: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter - 2 Year Sales Trends by Period

Total Perimeter sales also increased each period 2011 vs. 2010.

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11 – June number represents average of scan periods 6 & 7.Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

Total Perimeter (Perishable+Fzn+Chill)

5.8 5.7 6.4 5.77.9 7.4

8.0

$0

$50

$100

$150

$200

$250

2010 2011

Page 20: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter contribution to Edible dollar sales has continued to increase

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

% of Total Edible Dollars

46.3% 45.7%

53.7% 54.3%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011

Non-Perimeter Perimeter

+ .6 pts vs YAGO

*Estimated % of Total Edible $ in Retail: 53.2%

Page 21: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter increases have been greatest in…

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11

Bakery Deli Meat Produce Frozen Chill

201031.5%18.1%

201132.1%18.5%

% Chill% Meat

+.7+.4

Page 22: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter sales highest in December, but peak periods vary by department

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

-

50

100

150

200

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11

Mill

ions

Bakery Deli Meat Produce Frozen Chill

Page 23: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter sales highest in December, but peak periods vary by department

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

16.8

26.8

36.8

46.8

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Mill

ions

Meat

17.222.227.232.237.242.2

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Mill

ions

Produce

16.521.526.531.536.541.5

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Mill

ions

Frozen

27.2

47.2

67.2

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Mill

ions

Chill

5.1

7.1

9.1

11.1

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Mill

ions

Deli

1.9

2.9

3.9

4.9

Jan-

11

Feb-

11

Mar

-11

Apr

-11

May

-11

Jun-

11

Jul-1

1

Aug

-11

Sep-

11

Oct

-11

Nov

-11

Dec

-11

Mill

ions

Bakery

Peak: Dec

Peak: Mar, July

Peak: Mar, J-A, Dec

Peak: Feb, Dec

Peak: July, Dec

Peak: Dec

Page 24: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Perimeter Top 25 Categories by Dollar Sales(91% of Total Perimeter)

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

All but 4 have increased dollar sales vs. year ago.

Rank Category $ Volume$ % Chg YAGO

% of Perishables

Avg Number Items

Carried

1 PRODUCE 481,902,747 4.4 20.1 n/a

2 FRESH MEAT 443,306,131 7.6 18.5 n/a

3 MILK PRODUCTS 146,489,010 8.2 6.1 117.0

4 DELI 140,863,940 6.0 5.9 n/a

5 CHEESE 126,187,827 7.3 5.3 205.7

6 FROZEN DINNERS 79,558,629 (1.5) 3.3 387.9

7 COLD CUTS 78,548,313 2.3 3.3 189.4

8 BREAKFAST MEATS 58,240,658 15.7 2.4 73.1

9 FROZEN FISH/SHRIMP/SEAFOOD 54,954,776 6.4 2.3 119.7

10 YOGURT 52,782,792 8.1 2.2 140.0

11 BAKERY 47,025,117 0.9 2.0 n/a

12 FROZEN PIZZA 42,710,736 0.2 1.8 94.9

13 BUTTER/MARGARINE 42,226,770 11.8 1.8 69.9

14 JUICE/DRINKS - CHILLED 40,989,131 1.8 1.7 77.4

15 EGGS 39,478,848 10.5 1.7 12.2

16 FROZEN VEGETABLES 36,892,837 1.9 1.5 168.0

17 DINNER SAUSAGE 33,541,559 9.4 1.4 61.8

18 ICE CREAM 33,044,183 5.8 1.4 191.8

19 FROZEN BREAKFAST 32,428,913 12.4 1.4 118.8

20 FROZEN RAW CHICKEN 31,224,222 (3.9) 1.3 18.9

21 FROZEN PREPARED CHICKEN 30,286,494 (3.3) 1.3 55.7

22 FROZEN MEAT 27,688,941 1.8 1.2 67.6

23 FROZEN FAST FOOD/SNACKS 26,037,009 (2.4) 1.1 92.0

24 FRANKFURTERS 23,247,662 5.8 1.0 41.0

25 FROZEN NOVELTIES 22,533,323 1.6 0.9 119.6

Page 25: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Importance of Perimeter Categories to Edible $ Sales

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11

EDIBLE CATEGORIES

All Categories(millions)

Top 25 (millions)

% of Sales # of Cats +5% $ vs YAGO

Non-Perimeter $2,016.0 $ 1,008.8 50.0% 2

Perimeter $1,279.6 $ 799.1 62.4% 7

$36,892,837$39,478,848

$40,989,131$42,226,770$42,710,736

$52,782,792$54,954,776

$58,240,658$78,548,313$79,558,629

$126,187,827$146,489,010

$36,409,867$40,207,463

$42,420,028$45,206,381

$52,612,451$72,419,972

$91,261,205$93,024,430

$102,756,728$105,291,619$106,131,336

$109,609,066$111,480,319

FROZEN VEGETABLESEGGS

JUICE/DRINKS - CHILLEDBUTTER/MARGARINE

FROZEN PIZZAYOGURT

FROZEN FISH/SHRIMP/SEAFOODBREAKFAST MEATS

COLD CUTSFROZEN DINNERS

CHEESEMILK PRODUCTS

RICECOOKING/SALAD/OLIVE OIL

WATERNUTRITIONAL SNACKS

SOUPJUICE/DRINKS - SHELF STABLE

TOTAL COFFEECONFECTIONERY

BREADRTE CEREAL

SALTY SNACKSBISCUITS

CARBONATED BEVERAGES

PerimeterNon-Perimeter

> +5% Growth vs YAGO

Page 26: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Top Perimeter Categories Price Comparison2011 vs. 2010

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11

Average Category Price

Based on 52 week total dollar and package sales. Actual items carried in each channel may vary by size and by year. Promotional activity will also effect average price comparisons.

DeCA RetailCategory 2011 2010 Change % Change 2011 % ChgMILK PRODUCTS $2.45 $2.26 0.19 8.4% $2.94 11.0%FROZEN DINNERS $2.06 $2.04 0.02 1.0% $2.59 3.6%COLD CUTS $2.05 $1.95 0.10 5.1% $3.00 5.0%BREAKFAST MEATS $2.61 $2.36 0.25 10.6% $3.73 8.8%FROZEN FISH/SHRIMP/SEAFOOD $5.70 $5.30 0.40 7.5% $6.80 4.2%YOGURT $1.04 $0.92 0.12 13.0% $1.17 12.4%FROZEN PIZZA $2.70 $2.66 0.04 1.5% $3.16 4.7%JUICE/DRINKS - CHILLED $2.45 $2.44 0.01 0.4% $2.85 3.7%EGGS $1.80 $1.65 0.15 9.1% $2.18 9.3%DINNER SAUSAGE $2.52 $2.33 0.19 8.2% $3.69 5.4%ICE CREAM $2.76 $2.59 0.17 6.6% $3.58 9.9%FROZEN BREAKFAST $2.02 $1.89 0.13 6.9% $2.89 5.8%FROZEN MEAT $3.90 $3.51 0.39 11.1% $4.29 5.5%FROZEN FAST FOOD/SNACKS $2.63 $2.58 0.05 1.9% $3.60 3.1%FRANKFURTERS $1.75 $1.71 0.04 2.3% $2.48 5.6%

Page 27: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Top 25 Stores - Perimeter Index to ConUS

CLASS

TOTAL $(millions)

Perimeter $(millions) % Perimeter

Perimeter Index to ConUS

CONUS (INC AK/HI) $4,042.5 $2,055.5 50.8%

HI-PEARL HARBOR, HI(WHW) 4 4 4 4 3 2 $65.8 $41.2 62.6% 123.1

NE-NEWPORT NETC, RI(NFE) 2 2 2 2 112 101 $13.3 $8.1 61.0% 120.0HI-HICKAM AFB, HI(WHU) 4 4 4 4 43 28 $35.4 $21.3 60.3% 118.6NW-BREMERTON, WA(WGN) 2 1 1 1 111 102 $13.3 $8.0 60.1% 118.2AK-KODIAK, AK(WJ1) 1 1 1 1 162 158 $3.5 $2.1 59.5% 117.0NE-SARATOGA SPRINGS (SCOTIA), NY(NE5) 1 1 1 1 158 152 $4.3 $2.5 59.4% 116.8SO-MERIDIAN NAS, MS(SKH) 1 1 1 2 153 147 $4.9 $2.9 59.4% 116.8NE-PATUXENT RIVER NAS, MD(NAB) 2 2 2 2 89 76 $18.5 $10.9 58.7% 115.5CN-PORTSMOUTH NSY, VA(CBK) 2 2 2 2 94 82 $17.2 $10.1 58.6% 115.2SO-PARRIS ISLAND MCRD, SC(SKP) 2 2 1 2 126 110 $11.6 $6.8 58.6% 115.2MW-CORPUS CHRISTI NAS, TX(MCY) 1 1 2 1 140 138 $7.5 $4.4 58.4% 114.9SO-WHITING FIELD NAS, FL(SJS) 1 1 1 1 151 146 $5.1 $3.0 58.3% 114.6SO-MAYPORT NS, FL(SJ5) 3 4 4 4 76 68 $21.7 $12.7 58.2% 114.5NE-DAHLGREN NSWC, VA(NFK) 1 1 1 1 167 162 $2.9 $1.7 58.0% 114.2SO-NEW ORLEANS NSA, LA(SJQ) 2 3 2 3 135 129 $9.2 $5.3 58.0% 114.1NW-BANGOR NSB, WA(WGM) 2 4 3 4 71 62 $23.8 $13.8 58.0% 114.0

SO-JACKSONVILLE NAS, FL(SJL) 5 5 5 5 19 10 $47.5 $27.5 57.8% 113.7

HI-KANEOHE BAY, HI(WHV) 3 3 3 3 54 43 $30.7 $17.5 57.1% 112.3MW-LAUGHLIN AFB, TX(MC7) 1 1 1 1 166 163 $2.9 $1.7 56.9% 111.9SO-ALBANY MCLB, GA(SJU) 1 1 1 1 155 150 $4.5 $2.6 56.9% 111.8SO-MOODY AFB, GA(SJ7) 2 2 3 2 122 108 $12.4 $7.0 56.7% 111.5NE-FORT DETRICK, MD(NFN) 1 1 2 1 131 128 $9.9 $5.6 56.6% 111.4

HI-SCHOFIELD BARRACKS, HI(WHX) 4 4 4 4 8 5 $54.7 $30.6 55.9% 110.0

NW-WHIDBEY ISLAND, WA(WGU) 3 3 3 3 67 56 $25.5 $14.3 55.9% 110.0SO-KINGS BAY NSB, GA(SJ4) 2 2 2 2 118 107 $12.9 $7.1 55.3% 108.8

• 4 Stores generate 10% more from Perimeter sales than ConUS average• Of the Top 25 stores by Perimeter Index, 18 are class 1 or 2 stores

Source1: Empower IT, Inc., Worldwide, 52 weeks ending 12/24/11Source2:  DeCA Perishables Division, Worldwide, 52 weeks ending 12/31/11

Page 28: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett
Page 29: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Les SimpsonProgram Manager

Fresh Meat & Seafood

Page 30: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Go Lean with Protein Merchandising Initiatives

Industry Opportunities

Page 31: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Bridget BennettProgram Manager

Produce

Page 32: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Standardize Produce PromotionsStandardize DataIncrease Sales

Clean Up Commodities and Create POGS (Items other than FF&V)

Eliminate USDA Grading InspectionsImplement Produce Manager Career Path Improve Produce Inventory ProcessImprove Produce Pricing Procedures

Page 33: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Dave LeffertProgram Manager

Deli/Bakery & Sushi

Page 34: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

The average per pound price of a core deli item- ham, turkey, bologna, etc is $6.04

Deli/bakery accounts for 3.2% of store’s sales

Of total customer transactions, 17.9% consist of deli purchases (11.4% from the bakery)

YTD sales for the deli and bakery are up 8.3% and 1.6%, respectively

Deli and bakery contributes $8.43 and $4.42 respectively, to DeCA’s $62.60 average ring

Page 35: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

YTD sushi sales are $12.7 millionUp 13.3%Growth has exceeded 20% for each of the last three years

YTD hot food sales are $5.2 million, up 31.6% The popularity of rotisserie chicken has made it a fixture in many ‘grab-n-go’ merchandisersFreshly made sandwiches have become one of the best selling items in the deli

In Europe, they are the number one selling item

Page 36: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Contractors are motivated to generate sales to increase revenue- increased sales for the contractors equates to greater sales and surcharge funds for DeCA

Contracted deli/bakeries do not impact DeCA appropriated funds when they hire personnel

Customers are attracted to and willing to pay for convenience

Page 37: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Lou KennedyCategory Manager

Frozen & Chill

Page 38: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Total sales of $1.45 billion, nearly 25% of DeCA’s totalCategory Reviews

Frozen Snacks (November 2011)Prepared Meals (January 2012)Prepared and IQF Chicken (April 2012)Pizza (June 2012)Vegetable (August 2012)

Planograms – Percentage based to facing specific

Page 39: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Chill DairyCategory Reviews

Cheese (October 2011)Yogurts (November 2011)

Chill MeatCategory Reviews

Breakfast Meats (November 2011)Hot Dogs (January 2012)Lunch Meats (March 2012)

Fresh Chicken and Frozen Whole Turkey Agreements

Page 40: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

PromotionsNew Model

Manager’s Special (4-6)Power Buys (6-8)K1 Primary/Features (10)K3 Primary/Features (10-12)

K1/K2 stores total items on display (24)K3 stores total items (36)

Page 41: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett
Page 42: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett
Page 43: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Bonita MoffettLead Store Operations Specialist

Joyce ChandlerChief, Perishables (Acting)

Page 44: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Never OutLists

Top 20Lists

Al OliverMilitary Produce Group

Page 45: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Having the “Right Items” at the “Right Time” at the “Right Price” is a great formula for success that will satisfy our DeCA patrons. Utilize the Top 20 Item Lists, Never Out Lists and Cross Merchandising Opportunities by department provided in the subsequent pages to build perimeter sales.

The Top 20 and Never Out Lists help plan stock levels for our best sellers and core items. The goal is to purchase enough of these products, so they are never out of stock for our patrons.

Now more than ever, customers are looking for convenience when shopping in the perimeter. Not only are they looking for delicious products at a great value, they are looking for complete meal solutions to solve their dinner dilemmas.

All it takes is a little teamwork! Work together with other departments to develop cross merchandising strategies, plans, displays and signs. Cross merchandise in other departments and invite other departments to cross merchandise within your section. Patrons may not plan on purchasing complementary items, but they make the unplanned, impulse purchase when they see these items in a meal solution display. That’s a win-win-win! and vendor stockers to promote sales and Add a Perimeter Pound - “APP”

FRESH MEAT – PRODUCE – DELI & BAKERY – FREEZE – CHILL DAIRY – CHILL MEAT

Page 46: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

Additional Ways to Increase ADD A POUND from the PERIMETER

Utilize Pricing Comparison Boards

5:00 PM “Grand Re-Opening” Stocking

Demos, Recipes, Meal Solutions

Signage – including multiple pricing, savings

Engage associates and vendor stockers to promote sales and Add a Perimeter Pound - “APP”

FRESH MEAT – PRODUCE – DELI & BAKERY – FREEZE – CHILL DAIRY – CHILL MEAT

Page 47: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett

David McMurtryKraft Foods

Page 48: Joyce Chandler Chief of Perishables, Acting Industry:DeCA: Al Oliver – Military Produce GroupJoyce Chandler David McMurtry – Kraft FoodsBonita Moffett