Apple Juice Nate Wolfe | Bo Renner

Category Snapshot TOTAL APPLE JUICE (JC,DRK-CAN,BTL) OZ. Total Consumption BehaviorScape Framework LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < Small Scale Families Small HHs with Older Children Younger Bustling Families Large HHs with Children (6+), HOH < Older Bustling Families Large HHs with Children (6+), HOH Young Transitionals Any size HHs, No Children, < Independent Singles 1 person HHs, No Children, Senior Singles 1 person HHs, No Children, Established Couples 2+ person HHs, No Children, Empty Nest Couples 2+ person HHs, No Children, Senior Couples 2+ person HHs, No Children, Total

Demographic Variables Musselman'sJuicy JuiceLanger'sMinute MaidPrivate Label Race of Head of Household% VolumeIndex% VolumeIndex% VolumeIndex% VolumeIndex% VolumeIndex White54.5%7959.7%8660.1%8765.1%9461.3%89 Black15.0% % % %9213.1%109 Hispanic22.9% % % % %154 Asian4.9%1154.8%1115.0%1175.7%1324.3%100 Other2.7%1262.3%1073.8%1731.9%872.3%105 Number of Persons 1 Person12.5%465.8%219.4%359.6%369.6%35 2 Persons22.7%7016.4%5121.3%6618.5%5720.9%65 3 Persons18.7% % % % %122 4 Persons22.6% % % % % Persons23.5% % % % %220 Household Income Under $10,0005.5%704.9%6213.3%1685.3%664.8%60 $10,000 - $19,9996.5%569.9%8512.1%1045.7%4910.4%90 $20,000 - $29,9998.8%7811.4%1019.7%856.5%579.9%87 $30,000 - $39,9998.5%8110.4%999.5%908.0%769.2%87 $40,000 - $49,9999.8%1058.0%8710.0%1088.7%9310.3%111 $50,000 - $74, % % % % %121 $75,000 - $99, % %1099.6%8214.3% %112 $100,000 - $149, % %1098.1%7117.9% %105 $150,000 or More12.4%1547.9%984.9%6113.0%1618.4%104

Category Role Theory: Families, and in particular, upper-middle class, with children tend to be the most consistent consumers of apple juice. National Sales: $562 million – middle range

Category Role

Why Apple Juice? High number of different product offerings at multiple different locations. High competition among private label brands against traditional, well-established brands. Influx of various types of different juices to compete against the industry all together. E.g. Strawberry- Pineapple Juice, Kiwi-Melon Juice, etc.

Stores Audited Walmart – MLK Walmart – Mall Walmart Neighborhood – Weddington Harps – College Marvins Walgreens – W. MLK Walgreens – Township Walgreens – College Flash Mart – MLK Kum & Go - MLK

Retailers Audited Walmart on College had the largest assortment with 33% of SKUs available. Locations most popular among families carried the largest selection.

The Suppliers Coca Cola – Minute Maid Mott’s Nestle – Juicy Juice Musselman’s Walmart – Great Value Old Orchard Brands

The Suppliers Old Orchard – most dominant with six SKU’s at five different stores. Juicy Juice & Pepsi’s Oceanspray – very limited selection and higher price.

Gross Margin by Store and Manufacturer

Determining Gross Margins Minute Maid, on average, has the highest cost among major manufacturers, with $.10/ounce. Always Save, on average, had the lowest cost with $.015/ounce. The estimated private label cost per ounce is approximately $.02/ounce. There were slight adjustments made on differentiating between the major manufacturer and private label price per unit.

Circular Trade Area – Fayetteville Demography Harps 124Marvins 220Wal Mart 359Wal Mart 144 % HHsHHs Index% HHsHHs Index% HHsHHs Index% HHsHHs Index Race of Head of Household White80.2% % % %113 Black7.0%586.1%514.9%417.9%66 Hispanic4.8%384.0%3211.7%945.1%41 Asian4.6%1073.1%743.7%875.3%123 Other3.5%1543.5%1562.9%1284.0%178 Number of Persons 1 Person45.2% % % %177 2 Persons32.0%9933.1% %9731.1%96 3 Persons12.6%7812.8%7914.3%8911.4%70 4 Persons6.4%488.1%6210.1%776.3%48 5+ Persons3.8%343.7%338.4%763.2%29 Household Income Under $10, % % % %339 $10,000 - $19, % % % %209 $20,000 - $29, % % % %130 $30,000 - $39, % % % %118 $40,000 - $49,9997.1%797.9%888.0%897.5%84 $50,000 - $74,9999.6%539.2%5211.9%668.1%45 $75,000 - $99,9995.3%445.4%467.7%653.2%27 $100,000 - $149,9996.6%547.1%589.8%803.9%32 $150,000 or More2.6%294.8%536.3%701.9%21

Circular Trade Area – Fayetteville Age of Head of Household Age % % % %651 Age % % % %197 Age %9114.3%8218.0% %80 Age %5312.7%6314.8%7410.2%51 Age %5113.1%6813.8%719.8%51 Age %387.5%578.1%615.1%39 Age 75 or More4.0%375.8%548.1%753.9%37 Age and Presence of Children Age < 65.9%805.1%698.0%1085.2%71 Age %429.6%5215.8%858.1%44 Age < 6 & %704.0%616.6%1013.0%46 No Children81.7% % % %124 Housing Tenure Own25.2%3930.6%4742.3%6517.4%27 Rent74.8% % % %236 Education of Head of Household Not a High School Graduate7.0%548.7%6713.3%1029.1%70 High School Graduate16.0%6317.4%6821.4%8418.3%72 Some College39.1% % % %141 College Graduate21.3% % % %95 Post College Degree16.6% % % %103

52 WEEKS ENDING 12/29/07 ITEM $ (000)DOLLAR SHAREITEM BUYERS (000)ITEM PENETRATION ITEM $ PER ITEM BUYER ITEM TRIPS PER ITEM BUYER ITEM $ PER ITEM TRIP ITEM UNITS PER ITEM TRIP N=RAW BUYERSPURCHASE CYCLE (IN ELAPSED DAYS) % REPEAT BUYERS (% 2+ TIME BUYERS) LOYALTY (SHARE OF $ REQ.) % ITEM $ ON DEAL% DOLLARS WITH MANUFACTURER COUPON JUICY JUICE - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. NA WEST SOUTH CENTRAL NA LANGERS - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 10, , , WEST SOUTH CENTRAL MARTINELLI'S GOLD MEDAL - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 13, WEST SOUTH CENTRAL NA MINUTE MAID - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 27, , , WEST SOUTH CENTRAL 2, MOTT'S - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 86, , , WEST SOUTH CENTRAL 5, MOTT'S ORGANICS - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S WEST SOUTH CENTRAL NA MUSSELMAN'S - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 2, WEST SOUTH CENTRAL NA NESTLE JUICY JUICE - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 43, , , WEST SOUTH CENTRAL 2, OLD ORCHARD - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S. 20, , , WEST SOUTH CENTRAL 2, OLD ORCHARD ORGANICS - FRUIT JUICE - APPLE - SHELF STBL TOTAL U.S WEST SOUTH CENTRAL NA

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Private Label Share “Good losers? Snacks and confectionary Cosmetics Baby food Alcoholic beverages “Success!” Paper, plastic, and wipes Refrigerated food Frozen food Shelf stable juices Bad winners? – no one but ourselves to blame. Pet food Healthcare Diapers and feminine hygiene “Bad stuff” – why? Home care Nonalcoholic beverages Personal care Price gap with manufacturer brands High>30% Low<30% Private label share Low <12%High > 12%

Questions?