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Customer Presentation January 2013

Customer Presentation January 2013. 2 Company Information Consumer Research Licorice Category Performance Lucky Country® Proposal Meeting Agenda

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Customer PresentationJanuary 2013

2

Company Information

Consumer Research

Licorice Category Performance

Lucky Country® Proposal

Meeting Agenda

3

Lucky Country Inc. is the leading manufacturer of Australian style soft licorice in North America Began importing soft licorice into the U.S. from Australia in 2000 Established U.S. manufacturing operations in Lincolnton, North Carolina in 2005

Lucky Country® products are known for their soft texture and bold flavor profile Available in multiple flavors including Traditional Black, Strawberry , Cherry, Apple &

Pineapple Package sizes ranging from 4oz to 1.5lbs to meet every consumer usage occasion

Company Information

4

Consumer Research - Licorice Category

Age - L icor ice Consumpt ion

The sweet spot appears to be consumers age 25-54

H e a v y n = 2 1 0

M o d e r a t en = 3 5 8

I n f re q u e n tn = 2 3 6

Source: Brand Benchmark & Consumer Insights Study, March 2012

Gender - L icor ice Consumpt ion

Sl ightly more males tended to be Heavy consumers of l icor ice whi le more Infrequent users were female.

H e a v y n = 2 1 0

M o d e r a t en = 3 5 8

I n f re q u e n tn = 2 3 6

Source: Brand Benchmark & Consumer Insights Study, March 2012

Channels – L icor ice Consumpt ion

Grocery and mass merchandisers are the dominant purchase venues.

n = 8 0 4

Source: Brand Benchmark & Consumer Insights Study, March 2012

Drivers – L icor ice Consumpt ion

Taste and texture are the two dominant decision drivers.

n = 8 0 4

Source: Brand Benchmark & Consumer Insights Study, March 2012

Flavor Preferences - Top-3 Shown

Strawberry is the #1 fl avor fo l lowed by b lack, then cherry.

n = 8 0 4

Source: Brand Benchmark & Consumer Insights Study, March 2012

Frequency - Auss ie vs . Standard

The Aussie consumer is a “licorice enthusiast” with 75% consuming l icor ice at least 2-3 t imes per month

A u s s i e n = 8 2

S t a n d a rdn = 7 2 2

Source: Brand Benchmark & Consumer Insights Study, March 2012

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Licorice Category Performance

Lico

rice

Categ

ory

1

3 W

eek

Luck

y Cou

ntry

®

1

3 W

eek

Lico

rice

Categ

ory

26 W

eek

Luck

y Cou

ntry

®

2

6 W

eek

0%10%20%30%40%50%

Licorice Category Overview$ S

ale

s C

hg

vs.

YA

G

Source: Nielsen - Licorice Category - Total U.S XAOC - Ending 12/22/12

Lucky Country® Soft Licorice is driving growth in the category …

+0.8%

+37.9%

+1.2%

+34.2%

Licorice Category

13 Week

Lucky Country® 13 Week

Licorice Category 26 Week

Lucky Country®

26 Week

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Licorice Category OverviewA

vera

ge U

nit

Pri

ce

Source: Nielsen - Licorice Category - Total U.S XAOC - Ending 12/22/12

…And increasing penny profit and register ring!

$1.96

$2.72

$1.94

$2.58

14

Lucky Country® Proposal

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Lucky Country® - Flavor Ranking

#1 Black

#2 Strawberry

#3 Cherry

#4 Apple

#5 Pineapple

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Lucky Country – Package Sizes & Flavors

4oz Peg Bags $1.49 SRP

6oz Peg Bags$1.99 SRP

8oz Gusset Bags$2.59 SRP

1.5lb Gusset Bags$6.99 SRP

Immediate

Consumption

ModerateConsumpt

ion

HeavyConsumpt

ion

17

Lucky Country® Proposal

Products 6oz Black

6oz Strawberr

y

6ozCherry

6ozApple

6ozPineapple

Retail Price

Price/Ounce

Unit Cost

Margin

Permanent Distribution

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Lucky Country® Proposal

Products 7.2oz Black

7.2oz Strawberry

7.2oz Cherry

Retail Price

Price/Ounce

Unit Cost

Margin

Promotional Program – 20% More Free

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Appendix

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An onl ine study was fi elded among: Adults age 18+ Nationwide US geography Gender spl i t 50/50 Screener: Must be l icor ice consumers / at least

a couple of t imes per year or more frequently

The research was fi elded February 28-March 2, 2012 and yielded a total of 804 completes (goal = 800).

Consumer Research Methodology

Nielsen Expanded All Outlet (XAOC)

Grocery Channel: 148 Different Chains

Mass Channel: Walmart, Target, Kmart, Shopko, Alco & Pamida

Drug Channel: Walgreens, CVS, Rite Aid, Kinney, Kerr, Discount Drug Mart, White, Bartell

& USA Drug

Dollar Channel: Dollar General, Family Dollar & Fred’s

Club Channel: Sam’s & BJ’s

Data Suppliers