JOHN ECCLESSARAH NOLAND

JEFF WATSON

GIN!

Overview

The supplier is in controlFound no private label

GinProducts varied by size130 total SKU’s

Stores Fall ‘10

SKU’s

Fall ‘11

SKU’s

Macadoodle’s

36 (MO)

57 (AR)

Sam’s Club 9 14

Crossover Liquor

59 69

Dickson Street Liquor

29 38

Friendly Liquor

14 32

Weddington Liquor

29 42

Comparison of audited storesFall ‘10 and Fall ‘11

• Macadoodle’s

• Sam’s Club in Fayetteville, AR

• Crossover Liquor in Fayetteville, AR

• Dickson Street Liquor in Fayetteville, AR

• Friendly Liquor in Fayetteville, AR

• Weddington Liquor in Fayetteville, AR

Importance of Depth: Consistent SKU’s

Brand Variety Size (mL)

Beefeater Dry Gin 750, 1750

Bombay London Dry 750

Bombay Sapphire 750, 1000, 1750

Gilbeys Straight Gin 200, 375, 750 1750

Gordon's London Dry 750, 1750

New Amsterdam Straight Gin 750, 1750

Seagram's Extra Dry 200, 375, 750, 1750

Seagram's Lime Twisted 750

Tanqueray London Dry 200, 375, 750, 1000, 1750

Tanqueray Rangpur 750

Importance of Depth:

Demographics

BEEFEATER BOMBAY

SAPPHIRE SEAGRAM'S EXTRA DRY TANQUERAY

52 WEEKS ENDING 12/29/07

52 WEEKS ENDING 12/27/03

52 WEEKS ENDING 12/29/07

52 WEEKS ENDING 12/27/03

52 WEEKS ENDING 12/29/07

52 WEEKS ENDING 12/27/03

52 WEEKS ENDING 12/29/07

52 WEEKS ENDING 12/27/03

SIZE - 2 MEM 201.3 178.1 208.7 122.7 119.8 114.3 119.8 111.4

SIZE - 3-4 MEM 21.9 39.5 51.5 58.0 65.9 111.1 54.3 78.4

SIZE - 5+ MEM 10.1 20.0 4.8 9.4 59.5 75.7 34.4 20.6

COSMOPOLITAN CENTERS 54.2 NA 94.7 NA 93.6 NA 276.0 NA

INDEPENDENT SINGLES 35.1 NA 85.2 NA 160.5 NA 169.8 NA

SENIOR SINGLES 252.6 NA 26.4 NA 94.3 NA 171.0 NA

ESTABLISHED COUPLES 13.6 NA 350.0 NA 109.7 NA 154.3 NA

EMPTY NEST COUPLES 178.9 NA 80.7 NA 210.4 NA 117.7 NA

SENIOR COUPLES 563.9 NA 57.7 NA 79.7 NA 61.2 NA

RACE - AFRICAN AMER. 12.4 38.9 105.2 71.5 425.5 530.8 56.4 81.7

RACE - ASIAN 10.4 135.6 36.9 60.2 0.0 0.0 56.1 45.2

ETH - HISPANIC 14.5 2.7 18.9 111.1 13.7 20.9 184.3 12.1

Importance of Depth: Role

Brand ITEM $ (000) DOLLAR SHARE

ITEM PENETRATION

BEEFEATER - GIN TOTAL U.S.53,985.3 15.9 30%

BOMBAY SAPPHIRE - GIN TOTAL U.S.39,146.7 11.5 40%

SEAGRAM'S EXTRA DRY - GIN TOTAL U.S.45,116.9 13.3 70%

TANQUERAY - GIN TOTAL U.S.52,829.1 15.5 70%

• Role: Maintain/Grow• Sales $: $291,739,000.00

• Shows high gross margins and moderate(growing) sales revenue $s

• Increasing in category depth and receiving more display space

Importance of Depth: Facing by Supplier

MFRSAMS

LIQUOR Fayetteville

Facings

WEDDINGTON LIQUOR Fayetteville

Facings

M Store Springdale

Facings

Majestic Liqour Fort Worth Texas

Facings

TONY'S IN SHREVEPO

RT LOUISIANA

FacingsBeefeater Distilleries

% of Total Sum

12.1% 4.8% 5.6% 6.3% 8.2%

% of Total N 14.3% 4.8% 8.8% 8.1% 9.8%N 2 2 5 3 5

Bombay Spirits

Company

% of Total Sum

12.1% 7.1% 12.5% 14.3% 12.3%

% of Total N 14.3% 7.1% 8.8% 13.5% 15.7%N 2 3 5 5 8

Seagram Company Ltd.

% of Total Sum

9.1% 19.0% 18.8% 14.3% 20.5%

% of Total N 7.1% 19.0% 19.3% 16.2% 11.8%N 1 8 11 6 6

Tanqueray Gordon & Co.

% of Total Sum

21.2% 16.7% 15.0% 17.5% 9.6%

% of Total N 21.4% 16.7% 14.0% 16.2% 11.8%N 3 7 8 6 6

William Grant & Sons Ltd.

% of Total Sum

3.0% 2.4% 3.8% 6.3% 1.4%

% of Total N 7.1% 2.4% 3.5% 5.4% 2.0%N 1 1 2 2 1

Importance of Depth: Gross Margin by Supplier

MFR

Sams Liquor Fayetteville

%GM

Weddington Liquor

Fayetteville %GM

Macadoodle's Springdale

%GM

Majestic Liqour Fort Worth Texas

%GM

Tony's Shreveport,

LA %GMBeefeater

Distilleries% of Total

Sum10.6% 3.7% 7.5% 7.1% 7.5%

% of Total N 14.3% 4.8% 8.8% 8.1% 9.8%

N 2 2 5 3 5Bombay Spirits

Company

% of Total Sum

12.2% 6.7% 8.0% 12.0% 14.3%

% of Total N 14.3% 7.1% 8.8% 13.5% 15.7%

N 2 3 5 5 8Seagram Company

Ltd.

% of Total Sum

8.0% 20.2% 21.1% 17.0% 13.0%

% of Total N 7.1% 19.0% 19.3% 16.2% 11.8%

N 1 8 11 6 6Tanqueray Gordon &

Co.

% of Total Sum

23.1% 18.4% 14.9% 17.9% 12.6%

% of Total N 21.4% 16.7% 14.0% 16.2% 11.8%

N 3 7 8 6 6William Grant &

Sons Ltd.

% of Total Sum

8.5% 2.2% 4.0% 5.9% 2.2%

% of Total N 7.1% 2.4% 3.5% 5.4% 2.0%

N 1 1 2 2 1

Importance of Depth: Stocking Rate

4 Brands were found at all 15 stores: Beefeater, Bombay, Seagram’s, and Tanqueray

Seagram’s had a low stocking rate due to its wide assortment of unique SKU’s

Brand Stocking RateBeefeater 73%

Bombay 59%

Seagram's 35%

Tanqueray 50%

Dominant Brands

Estimated GM%Beefeater: 35-55%Bombay: 41-60%Seagram's: 55-68%Tanqueray: 51-75%

Importance of Depth: Private Label

We found no Private Label Gin products.WHY NOT?

1. Demographics2. Economy3. Structure of Supply4. Perceived Quality

Importance of Depth: Recommendations

HI-WAY Liquor408 W. Thompson St., Springdale AR

Recommendation

Located in high traffic area Carries many lower margin products Increasing the stocking and facings of higher

margin products such as Tanqueray SKU’s

Questions?