Item $ Item Buyers Item Penetration % Repeat Buyers % Item on Deal Gin 369,201.64,040.45.987.326.7 Beefeater 53,985.3354.6.336.515.5 Bombay 11,944.1144.4.134.931.

L

Gin—Spring 2012Daniel Frazier Maddie Griffith

Category Definition

Total category sales: $369,201,600

2007 sales: $138,739,800

Average % item on deal: 18.2%

Not highly penetrated

Supplier has control of category

No private label available

Strong national brands

Many small “unique” suppliers

Ad Hoc Base

Item $ Item Buyers

Item Penetrati

on

% Repeat Buyers

% Item on Deal

Gin369,201

.6 4,040.4 5.9 87.3 26.7

Beefeater 53,985.3 354.6 .3 36.5 15.5

Bombay 11,944.1 144.4 .1 34.9 31

Bombay Sapphire 39,146.7 490.1 .4 25.6 27.5

Seagram’s 45,116.9 761.5 .7 44.7 66.3

Tanqueray 52,829.1 763.5 .7 35 59.1

Audit ResultsStore Total SKUs Unique SKUs

Crossover Liquor 62 6

The Spirit Shop 43 6

Weddington Liquor 42 -

Friendly’s Liquor 34 1

Dickson St. Liquor 32 -

The Stellar Cellar(Memphis, TN)

33 4

Cork & Bottle(Little Rock, AR)

29 1

The Little Brown Jug(Pine Bluff, AR)

18 -

Total Number of SKUs in Audit: 100

Demographics Income above $70,000

2-member households

No female head

Empty nesters

Senior citizens

Demographics Income above $100,000

2-member households

No female head

Affluent suburban spread

Established couples

Professional and managerial employees

Demographics Income above $70,000

2-member households

No female head

Affluent suburban spreads

Senior couples

Established couples

Professional and managerial employees

Demographics Income below $50,000

Struggling urban cores

Childless younger families

Empty nest couples

African American (non-Caucasian)

Female & non-female head households

Not employed

Manufacturer Dickson St.

Cork & Bottle

Crossover

Weddington

Stellar Cellar

GMSKUsFacing

38.71%4

12.5%

27.94%5

16.1%

24.41%7

15.3%

17.82%8

19.0%

18.14%4

12.5%

GMSKUsFacing

19.90%3

9.4%

14.88%3

12.9%

18.98%5

8.3%

19.65%3

7.1%

17.7%3

9.4%

GMSKUsFacing

39.56%6

18.8%

40.44%4

12.9%

31.45%5

11.1%

42.43%4

9.5%

26.86%4

12.5%

GMSKUsFacing

33.53%4

12.5%

37.36%3

6.5%

35.97%6

8.3%

25.90%3

7.1%

32.74%3

9.4%

Category Scorecard

Gross Margin Evaluation

Bombay Sapphire has highest gross margins overall 200 mL: 57% 750 mL: 45% 1 L: 45%

Tanqueray has interesting gross margins 200 mL: 54% 375 mL: 47%

Gross Margin Evaluation

750 mL sizes had consistently higher gross margins Spruce Road Spirits: 62% Tanqueray #10: 58% Hendricks: 56% Corsair: 50%

Category is Cash Machine: High gross margins Medium sales volume

Competing Brands & Private

Labels Very strong national brands with loyal

customers in segmented markets 5 biggest brands account for 60% of gin

sales

No private label products in this region

Supplier has control over retailer; no outlet for leveraging this control

Suggestions for Retailer

High gross margins

Increased category sales

Stock fewer SKUs Reduced depth ≠ increased sales, but is an

opportunity for higher gross margins Leading brands are close substitutes

MAINTAIN!