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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
10%

70%

20%

Large store Traditional Discount
Retail landscape-1990’s
15%

60%

25%

Large store Traditional Discount
Retail landscape-2000’s
20%

50%

30%

Large store Traditional Discount
Retail landscape-2013
25%

40%

35%

Large store Traditional Discount
Retail/other landscape-2013
Specialty

	
  	
  CSA	
  
	
  	
  	
  Farm	
  
Markets	
  

Food service

Drug
Linear footage

Dairy

495

712

690

704

Frozen

495

1,800

1,710

1,080

2,574

3,592

5,292

3,524

Water/pop
1,176
Chips/snacks

1,844

1,454

1,068

Household

1,680

1,692

1,376

880

144

504

852

320

6,564 10,144

11,374

7,576

Core groc

Imported
Total
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.	
  
Ad	
  investment	
  

27.0	
  
5.0	
  

Shrink	
  
Labour	
  
Fixed	
  exp.	
  
Variable	
  exp.	
  
Distribu@on	
  
Total	
  expenses	
  

2.0	
  
7.5	
  
2.5	
  
1.5	
  
7.0	
  
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

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Intro to Wholesale with Peter Chapman