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How Retailers Promote Pet Food & Pet Care

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How Retailers Promote Pet Food & Pet Care How Food Retailers Promote Wine & Spirits Tom Pirovano May 3rd, 2011 1 What You Need to Know • Retailers promote wine as much as beer and spirits combined. • Safeway banners run more wine ads than any other retailer – up vs. year ago. • Retail ad support for spirits is down 16% while beer ads are up 10%. • Wine ad counts vs. year ago have been down since Christmas. 2 Share of Beverage Alcohol Retail Promotions Beer 29.0% Share of Retail Ads Although beer generates much higher Liquor/ dollar sales, wine Spirits receives more retailer 20.0% ad support than beer and spirits combined. Malt Liquor MarketGate Ad Comparisons Wine 1.4% 52-Weeks Ending 4/16/2011 U.S. & Canadian Retailers 49.6% Excludes Liquor Stores 3 Top Retailers Promoting Wine Number of Wine Ad Blocks Over 12 Months Tom Thumb 871 Randall's Food Markets 865 Quality Food Centers Safeway banners 774 Safeway Stores run the most wine 725 Dominick's Finer Foods promotions. 716 Carrs 712 Jewel-OSCO 710 Vons 684 Pavilions 677 ShopRite 580 MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 U.S. & Canadian Retailers Giant Eagle 570 Excludes Liquor Stores 4 Top Retailers Promoting Spirits Number of Liquor/Spirits Ad Blocks Over 12 Months Jewel-Osco 699 ShopRite 586 Carrs 362 Jewel-Osco runs Safeway Stores 359 102 circulars per Vons 358 year. Pavilions 356 The average Supervalu (Albertsons) 352 ShopRite circular contains 582 ad Dominick's Finer Foods 329 blocks. Sweetbay Supermarket 317 MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 U.S. & Canadian Retailers Save Mart 273 Excludes Liquor Stores 5 Alcohol Promo Mix Across Retailers Retailers Promoting More Wine Tom Thumb 74.7% 25.3% Randall's Food Markets 74.3% 25.7% Giant Eagle 71.5% 25.0% Publix Super Markets 71.3% 28.7% Quality Food Centers 70.0% 30.0% Wine Beer & Malt Liquor Spirits Across Retailers 46.1% 35.1% 18.8% Retailers Promoting More Spirits ShopRite 48.7% 2.2% 49.2% Sweetbay Supermarket 30.4% 28.2% 41.4% Bashas' Markets 33.1% 31.9% 34.9% Jewel-OSCO 33.4% 33.7% 32.9% Cub Foods 30.3% 37.3% 32.4% MarketGate Ad Comparisons, 52-Weeks Ending 4/16/2011, U.S. & Canadian Retailers, excludes liquor stores 6 Top Promoted Wine Companies Share of Retailer Wine Ads Constellation Brands, Inc. 16.5% E&J Gallo Winery 13.3% Treasury Wine Estates 7.9% Majestic Fine Wines 5.3% Diageo North America, Inc. 4.9% The top 3 wine- The Wine Group 4.8% makers represent Ste. Michelle Wine Estates 3.6% 38% of wine ads. Trinchero Family Estates 3.4% Brown-Forman Corporation 3.3% W.J. Deutsch & Sons, Ltd. 3.2% MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 LVMH Group 2.5% U.S. & Canadian Retailers Excludes Liquor Stores 7 Top Promoted Spirits Companies Share of Retailer Spirits Ads Diageo North America, Inc. 27.30% Beam Global Spirits & Wine 11.48% Bacardi, Ltd. 11.38% Pernod Ricard 8.41% William Grant & Sons Ltd 5.02% The top 6 spirits Jack Daniel Beverage Co. 3.80% companies Private Brand Manufacturer 3.53% represent over two thirds of ads. Skyy Spirits, LLC 3.30% Constellation Brands, Inc. 2.57% Allied Domecq PLC 2.42% MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 Nolet Spirits USA 2.41% U.S. & Canadian Retailers Excludes Liquor Stores 8 Top Promoted Wine Brands Share of Retailer Wine Ads Beringer 4.03% Kendall Jackson 3.59% Barefoot 3.55% Yellow Tail 2.92% Clos du Bois 2.60% Woodbridge 2.37% No single wine Robert Mondavi 2.24% brand represent Chateau Ste. Michelle 2.23% more than 4% of retail wine ads. Sterling 1.98% Korbel 1.75% MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 Sutter Home 1.69% U.S. & Canadian Retailers Excludes Liquor Stores 9 Top Promoted Spirits Brands Share of Retailer Spirits Ads Bacardi 7.66% Jose Cuervo 5.90% Smirnoff 5.12% Sauza 4.38% Captain Morgan 4.22% Absolut 3.97% Jack Daniel's 3.80% The top promoted spirits brands represent Private Brand 3.53% a wide variety of Jim Beam 3.25% product segments. Seagram's 3.02% MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 Skyy 2.76% U.S. & Canadian Retailers Excludes Liquor Stores 10 Retail Ad Support Vs. Year Ago +10.3% Change Vs. Year Ago +8.8% -1.2% -0.6% Retail ads for spirits Total alcohol ad counts declined sharply, while change changed very beer ads increased. little vs. year ago. -15.9% Total Alcohol Wine Spirits Beer Malt Liquor MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 U.S. & Canadian Retailers Excludes Liquor Stores 11 4/16/11 4/9/11 12 4/2/11 3/26/11 3/19/11 3/12/11 3/5/11 2/26/11 2/19/11 2/12/11 Valentine’s 2/5/11 1/29/11 Christmas 1/22/11 - 1/15/11 NewYear’s 1/8/11 Pre 1/1/11 Wine 12/25/10 12/18/10 - 12/11/10 12/4/10 11/27/10 11/20/10 11/13/10 11/6/10 10/30/10 10/23/10 10/16/10 10/9/10 10/2/10 Thanksgiving Current Ago Year 9/25/10 9/18/10 9/11/10 9/4/10 8/28/10 8/21/10 8/14/10 8/7/10 7/31/10 7/24/10 7/17/10 7/10/10 7/3/10 6/26/10 6/19/10 6/12/10 6/5/10 5/29/10 5/22/10 5/15/10 Weekly Retail Ad Support Ad Support Retail Weekly 5/8/10 5/1/10 since December. since December. for wine has declined Retailer ad support 4/24/10 4/17/10 4/10/10 13 4/3/10 3/27/10 3/20/10 3/13/10 3/6/10 2/27/10 2/20/10 2/13/10 2/6/10 1/30/10 1/23/10 NewYear’s 1/16/10 1/9/10 1/2/10 Spirits 12/26/09 12/19/09 - 12/12/09 12/5/09 11/28/09 11/21/09 Current Ago Year 11/14/09 11/7/09 10/31/09 10/24/09 Christmas - 10/17/09 10/10/09 10/3/09 Pre Thanksgiving 9/26/09 - 9/19/09 9/12/09 Pre 9/5/09 8/29/09 8/22/09 8/15/09 8/8/09 8/1/09 7/25/09 7/18/09 LaborDay 7/11/09 7/4/09 6/27/09 6/20/09 6/13/09 6/6/09 5/30/09 5/23/09 5/16/09 Weekly Retail Ad Support Ad Support Retail Weekly the past 52 weeks. the declined throughoutdeclined for spirits have Retailer ad support 5/9/09 5/2/09 4/25/09 Retailers with Significant Changes in Wine Ad Support Current Year Ago Ad Count Percent 52-Week 52-Week Chg Vs. Chg Vs. Retailer # of Ads # of Ads Year Ago Year Ago Dominick's Finer Foods 716 512 +205 ads +40% Giant Eagle 570 375 +196 ads +52% Safeway Stores 725 555 +170 ads +31% Randall's Food Markets 865 742 +124 ads +17% Vons 684 566 +118 ads +21% Carrs Most are 712 595 +118 ads +20% Tom Thumb Safeway 871 768 +103 ads +13% Banners Farm Fresh 374 474 -100 ads -21% Ralphs Grocery Co. 191 300 -109 ads -36% Harris Teeter 312 423 -111 ads -26% Albertsons LLC 21 188 -167 ads -89% Save Mart 392 649 -257 ads -40% ShopRite 580 1,446 -866 ads -60% 14 Retailers with Significant Changes in Spirits Ad Support Current Year Ago Ad Count Percent 52-Week 52-Week Chg Vs. Chg Vs. Retailer # of Ads # of Ads Year Ago Year Ago Copps 227 132 +95 ads +72% Hy-Vee Food Stores 105 26 +79 ads +302% King Soopers 57 0 +57 ads n/a Food 4 Less 126 80 +45 ads +56% Pavilions 356 387 -30 ads -8% Save Mart 273 318 -45 ads -14% Dominick's Finer Foods 329 377 -48 ads -13% Ralphs Grocery Co. 125 180 -55 ads -30% Winn Dixie 26 91 -66 ads -72% Albertsons LLC 16 158 -142 ads -90% ShopRite 586 1,084 -498 ads -46% Down 498 Ads at ShopRite 15 Change in Ad Support Among Top Promoted Wine Companies Retail Ad Support Change Vs. Year Ago Constellation Brands, Inc. -0.9% E&J Gallo Winery -0.7% Treasury Wine Estates +1.4% Majestic Fine Wines +9.2% Diageo North America, Inc. -6.1% MarketGate Ad Comparisons 52-Weeks Ending 4/16/2011 The Wine Group -11.6% U.S. & Canadian Retailers Excludes Liquor Stores Ste. Michelle Wine Estates -14.9% Trinchero Family Estates +1.0% Brown-Forman Corporation +5.4% W.J. Deutsch & Sons, Ltd. -9.8% LVMH Group +16.1% 16 Change in Ad Support Among Top Promoted Spirits Companies Retail Ad Support Change Vs. Year Ago Diageo North America, Inc. -12.3% Beam Global Spirits & Wine -5.2% Declining Ad Bacardi, Ltd. -20.8% Support Across Pernod Ricard -18.1% Top Spirits William Grant & Sons Ltd -9.4% Companies. Jack Daniel Beverage Co. -11.4% Private Brand Manufacturer +44.8% Skyy Spirits, LLC -7.4% Constellation Brands, Inc. +4.6% MarketGate Ad Comparisons Allied Domecq PLC -37.9% 52-Weeks Ending 4/16/2011 U.S. & Canadian Retailers Nolet Spirits USA -2.4% Excludes Liquor Stores 17 Retailers Promoting Private Label Wine & Spirits # of PL PL % # of PL PL % Retailers Wine Ads of Ads Retailers Spirits Ads of Ads Fresh & Easy 104 71.8% Jewel-Osco 95 13.6% ShopRite 15 2.6% Supervalu (Albertsons) 42 11.9% Jay C Stores 13 52.0% Carrs 9 2.6% Carrs 12 1.7% Ralphs Grocery Co.
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