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Santiago Solutions Group will show how to build a Total Market growth plan that is fueled by Hispanics & Millennials insights.
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wwwSantiagoSolutionsGroupcom bull P 8187365661
Driving Total Market Growth for Manufacturers and Retailers Building a Plan Fueled by Hispanics amp Millennials
August 15 2013
Presented by
Carlos Santiago President amp Chief Strategist
Unlocking sources of Total Market growth
2
Consumer Dynamics
Connectors Nuances
Company Core
What Business is Co in Who Co competes with
Ingredients Production Packaging Channels
Accelerated Growth Segments
Best Prospects
Total Market Growth
Nuance Nuance
GREEN BEAN
CASSEROLE
MENUDO
3
Family Dinner
Refried Beans amp Tortilla Chips
CONNECTORS
Total Market growth hinges on ldquoDouble Playsrdquo Key to unearth lsquoConnectorsrsquo ndashconvergence of Hispanic Millennials amp NH consumer dynamics aligned with company core that accelerate profitable growth
Unearthing Connectors amp Nuances
4
US Palate Embraces Latin Food
ChineseItalian
MexicanSeafood
Steakhouse
40
18
29
16 16
40
21
33
15 18
Out-of-Home Eating Incidence by Type of Restaurant
2007 2012
Hispanic Food is 2nd most popular in the country 1 West of Mississippi
2005 2012 2017
$54
$82
$107
Hispanic Food amp Beverages Market Size in US
Source Hispanic Food amp Beverage in the US 5th Edition
5
Source SSG analyses of Scarborough USA+ r2 2007 - 2012
Millennials
+6
Evolving Palate Expands Share of Plate Opportunity-Challenge
BreadPastaRice
Potato Chips amp Dip
Red Beans
Quinoa Couscous
Pita amp Hummus Tortilla Chips amp Guacamole
Black Pinto Garbanzo 6
Traditional Ingredients Evolve
Traditional
Pork Pozole
Chili
7
Veggie Pozole de
Frijol
Quinoa with Black Beans and Hominy
Bean and Hominy Potpie
Hominy Bean Salad
Hominy Chili with Beans
Contemporary-Traditional
bull Lighter bull Healthier
bull Quick one-dish bull Fun
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Unlocking sources of Total Market growth
2
Consumer Dynamics
Connectors Nuances
Company Core
What Business is Co in Who Co competes with
Ingredients Production Packaging Channels
Accelerated Growth Segments
Best Prospects
Total Market Growth
Nuance Nuance
GREEN BEAN
CASSEROLE
MENUDO
3
Family Dinner
Refried Beans amp Tortilla Chips
CONNECTORS
Total Market growth hinges on ldquoDouble Playsrdquo Key to unearth lsquoConnectorsrsquo ndashconvergence of Hispanic Millennials amp NH consumer dynamics aligned with company core that accelerate profitable growth
Unearthing Connectors amp Nuances
4
US Palate Embraces Latin Food
ChineseItalian
MexicanSeafood
Steakhouse
40
18
29
16 16
40
21
33
15 18
Out-of-Home Eating Incidence by Type of Restaurant
2007 2012
Hispanic Food is 2nd most popular in the country 1 West of Mississippi
2005 2012 2017
$54
$82
$107
Hispanic Food amp Beverages Market Size in US
Source Hispanic Food amp Beverage in the US 5th Edition
5
Source SSG analyses of Scarborough USA+ r2 2007 - 2012
Millennials
+6
Evolving Palate Expands Share of Plate Opportunity-Challenge
BreadPastaRice
Potato Chips amp Dip
Red Beans
Quinoa Couscous
Pita amp Hummus Tortilla Chips amp Guacamole
Black Pinto Garbanzo 6
Traditional Ingredients Evolve
Traditional
Pork Pozole
Chili
7
Veggie Pozole de
Frijol
Quinoa with Black Beans and Hominy
Bean and Hominy Potpie
Hominy Bean Salad
Hominy Chili with Beans
Contemporary-Traditional
bull Lighter bull Healthier
bull Quick one-dish bull Fun
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Nuance Nuance
GREEN BEAN
CASSEROLE
MENUDO
3
Family Dinner
Refried Beans amp Tortilla Chips
CONNECTORS
Total Market growth hinges on ldquoDouble Playsrdquo Key to unearth lsquoConnectorsrsquo ndashconvergence of Hispanic Millennials amp NH consumer dynamics aligned with company core that accelerate profitable growth
Unearthing Connectors amp Nuances
4
US Palate Embraces Latin Food
ChineseItalian
MexicanSeafood
Steakhouse
40
18
29
16 16
40
21
33
15 18
Out-of-Home Eating Incidence by Type of Restaurant
2007 2012
Hispanic Food is 2nd most popular in the country 1 West of Mississippi
2005 2012 2017
$54
$82
$107
Hispanic Food amp Beverages Market Size in US
Source Hispanic Food amp Beverage in the US 5th Edition
5
Source SSG analyses of Scarborough USA+ r2 2007 - 2012
Millennials
+6
Evolving Palate Expands Share of Plate Opportunity-Challenge
BreadPastaRice
Potato Chips amp Dip
Red Beans
Quinoa Couscous
Pita amp Hummus Tortilla Chips amp Guacamole
Black Pinto Garbanzo 6
Traditional Ingredients Evolve
Traditional
Pork Pozole
Chili
7
Veggie Pozole de
Frijol
Quinoa with Black Beans and Hominy
Bean and Hominy Potpie
Hominy Bean Salad
Hominy Chili with Beans
Contemporary-Traditional
bull Lighter bull Healthier
bull Quick one-dish bull Fun
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Unearthing Connectors amp Nuances
4
US Palate Embraces Latin Food
ChineseItalian
MexicanSeafood
Steakhouse
40
18
29
16 16
40
21
33
15 18
Out-of-Home Eating Incidence by Type of Restaurant
2007 2012
Hispanic Food is 2nd most popular in the country 1 West of Mississippi
2005 2012 2017
$54
$82
$107
Hispanic Food amp Beverages Market Size in US
Source Hispanic Food amp Beverage in the US 5th Edition
5
Source SSG analyses of Scarborough USA+ r2 2007 - 2012
Millennials
+6
Evolving Palate Expands Share of Plate Opportunity-Challenge
BreadPastaRice
Potato Chips amp Dip
Red Beans
Quinoa Couscous
Pita amp Hummus Tortilla Chips amp Guacamole
Black Pinto Garbanzo 6
Traditional Ingredients Evolve
Traditional
Pork Pozole
Chili
7
Veggie Pozole de
Frijol
Quinoa with Black Beans and Hominy
Bean and Hominy Potpie
Hominy Bean Salad
Hominy Chili with Beans
Contemporary-Traditional
bull Lighter bull Healthier
bull Quick one-dish bull Fun
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
US Palate Embraces Latin Food
ChineseItalian
MexicanSeafood
Steakhouse
40
18
29
16 16
40
21
33
15 18
Out-of-Home Eating Incidence by Type of Restaurant
2007 2012
Hispanic Food is 2nd most popular in the country 1 West of Mississippi
2005 2012 2017
$54
$82
$107
Hispanic Food amp Beverages Market Size in US
Source Hispanic Food amp Beverage in the US 5th Edition
5
Source SSG analyses of Scarborough USA+ r2 2007 - 2012
Millennials
+6
Evolving Palate Expands Share of Plate Opportunity-Challenge
BreadPastaRice
Potato Chips amp Dip
Red Beans
Quinoa Couscous
Pita amp Hummus Tortilla Chips amp Guacamole
Black Pinto Garbanzo 6
Traditional Ingredients Evolve
Traditional
Pork Pozole
Chili
7
Veggie Pozole de
Frijol
Quinoa with Black Beans and Hominy
Bean and Hominy Potpie
Hominy Bean Salad
Hominy Chili with Beans
Contemporary-Traditional
bull Lighter bull Healthier
bull Quick one-dish bull Fun
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Evolving Palate Expands Share of Plate Opportunity-Challenge
BreadPastaRice
Potato Chips amp Dip
Red Beans
Quinoa Couscous
Pita amp Hummus Tortilla Chips amp Guacamole
Black Pinto Garbanzo 6
Traditional Ingredients Evolve
Traditional
Pork Pozole
Chili
7
Veggie Pozole de
Frijol
Quinoa with Black Beans and Hominy
Bean and Hominy Potpie
Hominy Bean Salad
Hominy Chili with Beans
Contemporary-Traditional
bull Lighter bull Healthier
bull Quick one-dish bull Fun
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Traditional Ingredients Evolve
Traditional
Pork Pozole
Chili
7
Veggie Pozole de
Frijol
Quinoa with Black Beans and Hominy
Bean and Hominy Potpie
Hominy Bean Salad
Hominy Chili with Beans
Contemporary-Traditional
bull Lighter bull Healthier
bull Quick one-dish bull Fun
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
8
Video Home-cooking amp Family dinner Need for variety amp Openness to new recipe ideas
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Healthy Eating Is Important To All
bull A ldquoHealthyrdquo dinner is most important for 1st Generation Hispanics
bull Significantly higher than 2nd generation Hispanics and NH White
More home-cooking Less Meat More Grains and Beans
Total
Market 82
WNH
79
Hisp 1st
Gen 90
Hisp 2nd
Gen 80
Millennial
82
When I cook dinner it is important that it
be Healthy (Top 2 Boxes)
Source Source SSG-TQF Proprietary research JanFeb 2013
9
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
6
6
5
23
21
Totalhellip
WNH
Hispanic
Millennial
Mill MC
Organic Buyers CAGR
Organic Is Accelerating
Perceptions Healthier grown naturally No pesticides additives chemicals Good for workers in the field Watchful of PriceValue relationship
10 Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
Millennial amp Multicultural Millennial fueling growth rate Hispanic follows closely
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Latinas are Most Open to Purchasing New Convenience Packaging Forms
Shortcuts are OK providedhellip
Quality amp taste
No one can tell
For ldquoemergenciesrdquo
11
Likelihood to Purchase New Convenient Product ndash Top2 Boxes
Total Market
57
WNH 51
Hispanic 1st Gen
65 Hispanic 2nd Gen
59
Millennial 53
Source Source SSG-TQF Proprietary research JanFeb 2013
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Private Label Continues to Grow From Pre- Recession Levels
The base of Hispanic Food PL buyers is increasing 3x faster
than WNH
12
PL Buyer Base CAGR Buyer Incidence of Food Private
Label By Segment
All incidences have increased remarkably
Source SSG Analysis of Gfk-MRI Spring 2006 ndash Fall 2012
bull Millennial PL Food buyer base has exploded due to segment size increase as well as incidence increase
bull 3 in 4 consumers believe Private Label Products Have Improved in the Past Few Years
51
55
43
48
39
65
70
56
61
49
Total Market White NH Hisp Millennial MC Mill
Pre-Recession Post-Recession
17 13
41
221
Total WhiteNH Hispanic Mill
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
13
Video Healthy eating Convenience
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Strategic Implications
14
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Leverage Connectors While Tailoring to Pertinent Nuances
CONNECTORS
Dinner means family gatherings
Consumers thinkingplanning
meals in terms of recipes amp
experiences not isolated
ingredients
Rising popularity of MexicanPan-
Hispanic cuisine
Healthier lives from healthier
eating
Convenience trumps price
Quality trumps convenience
Trust for brands is high yet trust
for PL has broadened
NUANCES
Meal varietyingredient evolution at different paces and expanses ie
Hispanic HH - Kids drive experimentation hellippozole to minestrone soup
NH HH ndash rice to Quinoa
Category competition softer among Hispanics
Role of dinner is revered by all but
more sacred to 1st generation
1st Gen Hispanics look for Convenience but call it ldquoemergencyrdquo
Hispanics lag a bit behind Millennials amp Non-Hispanics in PL but growing faster
15
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Strategic Implications for Brands
Exploring consumer dynamicsrsquo amp alignment with the company core guide strategic anchors
bull Connectors that may unearth lsquoDouble Playsrsquo ndash Powerful insights in-common across current amp most likely
adopters
bull Nuances that will strengthen the context of the communications and promotions ndash Increased Brand relevance and resonance
bull Sources of incremental growth that can realistically lift the historic growth rate ndash Value added innovation
ndash Adjacencies Brand cross-sell expanded occasions new forms recipes packaging expanded channels leveraged capabilities
bull Ways to further differentiate the brand ndash Rational benefits ndashie convenience
ndash Emotional reward ndashie more love amp time for kids
ndash Spiritual rewardmdashie social impact
bull More precise target niches of most likely adopters geo-targeted promos
- ie Upscale Hispanics healthy Millennialshellip
16
Capture the Biggest Opportunity Consumers Among Fastest Growth Segments
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Potential Size of Prize Consumer Dynamics amp Core-Adjacencies Analysis Drive Total Market Incremental Opportunity
2013 2014 2015
BAU
Cons Dynamics Incr OppModelAdjacencies Incr Opp Model
+9
4
18
bull Top growth potential acts on most aligned double-plays within redefined core -yields +9 Total Market CAGR lift over current trajectory (BAU)
bull Moderate growth scenario better leverages connectors amp nuances in marketing strategies lifting growth rate by 4 vs BAU
bull Business As Usual unchanged trajectory yielding +2 annual increase
17
Double Plays
Sample
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
18
$036
$056
$022 $013
$018 $022
$006 $010
$021
$050
$088
$045
$025 $030 $027
$013 $016 $011
NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP NH HISP
Radio
(uarr)
TV (uarr) Print (uarr) Mobile
(uarr)
Promo (uarr) Trade (uarr) Internet (darr) Total
Marketing (uarr)
NH HISP
Total
Media (uarr)
NH HISP
Recalibrating Marketing Effectiveness (ROI) Enhances overall Total Market growth
Assessing what marketing vehicles messages promotions drive Total Market gains and which are less effective to optimize overall ROI
18
Sample SSG Market Mix Analysis
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Strategic Implications for Retailers
bull Category Management
ndash Promote innovation
bull New categories
bull New brands
bull New products
bull Incite Trial
ndash Offer sampling
ndash Provide easy full meal recipes of
bull Trendy dishes
bull New uses for ldquooldrdquo ingredients
ndash Promote value-add products with price-conscious consumers
19
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Thank You Follow us Online Carlos_SSG Santiago_Group LINKEDIN
Moderator
20
Bessie Ramiacuterez
Partner
Santiago Solutions Group
Econometrics Research Analytics Strategy amp Growth
ADD ICONS FOR TWEETERLINKEDIN NEWSLETTER SUBSCRIPTION
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Teasdale Quality Foods
21
bull A portfolio company of Palladium Equity Partners
bull Private Equity group of particular expertise in food companies well positioned for growth in the Hispanic market
bull In business for over 70 years TQF is a leading manufacturer of authentic canned dry pack beans dehydrated beans and hominy
bull Offers a vast array of products to service key National Supermarket Chains Hispanic Independent Retailers major Foodservice distributors and Industrial customers
Private Label Consumer Brands Foodservice
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Save Mart Supermarkets
bull Founded in 1952
bull 226 retail locations under the Save Mart Lucky S-Mart Foods FoodMaxx and Maxx Value Foods
bull Operates in Northern California and Nevada
bull 17300 associates
bull $43B in annual sales
22
Box Store
Conventional
Conventional
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
Panel of Experts
Alberto Bandera
Chief Executive Officer
Beans amp Hominy Mfg Branded Private Label amp
Food Service
Carlos Santiago
President amp Chief Strategist
Consulting Econo-metrics Research Analytics Strategy
amp Growth Implementation
Chris Vasconcellos
Senior Director of Center Store
Retail Conventional Market Box Store amp Limited Assortment
23
