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Page 1 National Accounts Overview – April 2013
Raising the Bar.
CONFIDENTIAL
Vision Crafting The Spirits That Stir The World
Mission To Become The World’s Fastest Growing Spirits Company
Financial Objectives Exceed National Account Plan Numbers:
Off Premise Appox – 7.9% Depletions; 10.5% NSV & 12% DGP (Ex Innovation)
On Premise 4.5% Depletions; 6.2% NSV & 8.1% DGP (Ex Innovation)
Winning Competitive Edge: The Spirit Of Beam: Entrepreneurs…Creating Innovative Solutions…Beating The Competition,
Together - Beam NAM’S understand the importance & complexity of driving sustainable results
within our Platinum, Gold and Silver acct universe. All NAM’s are Gold Spirits Trainer Certified!
Priority No. 1: Become 2nd Largest supplier in dollars (12 Month Rolling) – Grow our Value share
faster then our Volume share TTL NA Accounts (12/31/13)
CREATE FAMOUS BRANDS
Priority 2:
Use shopper insights to out execute
competition and secure Customer Centric
programs that drive industry leading growth
on our Power and Rising Stars Brands
Priority 3: Nail Pinnacle – make it big in
NAHQ off and on-premise (440K Off / 75K
On)
Priority 4:
Create Growth through securing Innovation
& Expanded Category leadership in Bourbon
& Tequila (SG Vodka & Wine)
BUILD WINNING MARKETS
Priority 5:
Create Universal Vistaar pricing tool for
On & Off Premise National Accounts /
Better understand, manage and reconcile
funding streams from NAHQ Accounts
Priority 6:
Exemplify industry leadership with all
National Accounts – Be viewed as trusted
unbiased supplier
Priority 7:
Accelerate Share Growth In Platinum, Gold
& Silver Accounts – Drive Value – Protect
Pricing integrity
FUEL OUR GROWTH
Priority 8:
Align Our Organizations objectives to our
customers timelines (TTB Approvals /
Innovation)
Priority 9:
Work seamlessly with Local Sales /
Marketing & Activation Center (Strengthen
Feedback Loop & Increase Communication)
Priority 10:
Build zero based budgets & Cat +1 Plan
builds for 2014 – Platinum / Gold & Silver
Accounts – Refine On Premise National
Acct lists (Implement Exposure – Trial &
Adoption model)
2013 Beam Global Vision Into Action – National Accounts
Page 3
BHAG: Make the NAHQ team both a clear source of talent for the company and a sought after career progression experience within Beam. Success in 2013 would be 2 NAMS being recruited to other Beam organizations and 75% of NAHQ job openings being filled internally
Top 5 Goals1. DGP growth above 10% with Skinnygirl, Sauza Family, Jim Beam Family, Maker’s Mark and Pinnacle being
the 5 fastest growing brand families– Acute focus on Sauza/Cinco partnership success and overall development/expansion of relationship
with Corona (Expand to 4th of July & Holiday – Attain 100% participation of NAHQ Accts)
2. Integrate NAHQ into state planning and pricing processes (IL, FL, CA, AZ, IN); have 4 QBRs with all DVPs, state managers, and KAMs attending
3. Create clear compensation links between Local Field Sales/NAHQ & SWS Local Field Sales/NAHQ. (California/Arizona/Illinois/Florida). Train & Develop all NAM’s/Kam’s on Vistaar (BR3) & the New IRI Pricing tool
4. Be seen as best-in-class supplier to our NAHQ customers as evidenced by being the highest scoring supplier on question 1 of the CM profit group survey– Acute Focus: Win at Walmart with our new structure as evidenced by 25% growth in 2013 and at
least 4 regional activations, listings or other “wins” that would not have happened without Execution Managers
5. Re-establish our hiring procedure in 2013 – build process of standardized background questions, behavioral questions, exercises and interview settings to ensure we find the right cultural fit to our organization.
NAHQ BHAG & Top 5 Goals: 2013
Page 4
Page 5
What makes a National Account
1. Large
2. Cross-regional (i.e. more than one DVPs region)
3. Account must have medium or highly centralized decision making process
Page 6
Current National AccountsDrugTraditional Grocery
Liquor / OtherMass
Page 7
Why National Accounts matter
1. Big dollars at-stake
1. Growing – have to win in winning accounts
2. Publically visible
• $225 million in Beam sales• Centralized decision-makers
• ~20% growth (10% ex-Pinnacle, ex-WA)
• Committed to winning in this
industry
• In the Nielsen data• Where people shop –
consumers, but also investors,
management• Wall Street
Page 8
2010* 2011* 2012*
NAHQ
6.36.2
2.7
8.8
6.0
2.9
9.1
Non-NAHQ
3.2
9.5
National Accounts growth significantly
outpacing rest of market
$ Billions of Neilsen sales for 52 weeks ending in August of noted year. Excludes WA
CAGR
4.2%
8.3%
2.3%
Beam’s Growth by Account
NAHQ Share
of Total 31.4% 32.0% 33.8%
Account Nielsen 52-Week $ Sales 2-year CAGR
Target 34,304,710 35.9%
Walmart 445,164,927 28.5%
Total Wine 239,230,698 19.2%
Kroger 522,934,234 11.6%
HyVee 135,124,032 9.7%
Meijer 152,174,457 6.9%
CVS 214,753,013 5.6%
Walgreens 192,259,147 4.5%
Sam's 241,662,163 4.2%
Safeway 330,260,950 1.9%
Military 212,405,050 0.6%
Rite Aid 214,617,745 0.6%
Supervalu 282,864,116 -1.5%
NAHQ Total 3,217,755,242 8.3%
+2.4 pts in
past 2 years
Background: Off-premise National Accounts growing at 8.3% vs. 4.2% for total industry
Page 9
Growth and Sales by Account
Target Wal-Mart
Total Safeway Wal-greens
Kroger Hy Vee CVS-Longs
Military Sam’s Club
Rite Aid
2013 Plan Growth
$
Sales
(M)7 27 21 25 13 33 11 28 21 13 16
Page 10
WMT, WAG, Target, Total Wine and Kroger will change spirits retail– are “super-platinum” accounts
Low: Under 5% Medium: 5-10% High: Above 10%
High: All (or most) decisions made at HQ
Medium: Mix of HQand local decisions
Low: All (or most) decisions made locally
Growth Prospects
Ce
ntr
ali
zed
De
cis
ion
Mak
ing
Why “super-platinum”
• They are large accounts…– Target is only exception
• ..with massive growth ambitions…– Walmart: “4x bigger in 5
years”– WAG: “Top3 liquor retailer
in next 3 years”– Target: “5x growth in spirits
in 5 years”– Total + Kroger both growing
over 10% annually
• …and a proven track record…– Except Total, these are the
dominant retailers in most CPG categories
• …with strong teams in place…– Upgrading buyers at most of
these accounts
• …and a relatively easy path to growth via store expansion, expanded shelf sets and cross-merchandizing
– Retail 101 for them
Page 11
The Super-Platinums are coming: They could drive nearly all industry growth
Total Nielsen
A/O Nielsen
334
Target
103
Total Wine
146
Kroger
215
WAG
387
Walmart
Conservative view of how the “super-platinum”
accounts see the world evolving
$M of Growth in Nielsen: 2012 - 2017
Assumptions
• Walmart: Grow sales 3x over 5 years. This is below their target of 4-5x growth and the annual growth of 25% is below the 29% growth of the past two years.
• Walgreen’s: Grow sales 3x over 5 years. This would put them on target to be the #3 spirits retailer per their goal and is below their growth target of 4-5x over the next 5 years
• Total: Grow sales 10% annually for 5 years. This is below recent growth of 20%+ per year.
• Target: Grow sales 4x over 5-years. This is below their stated goal of 5x growth and the annual growth rate of 32% is below last year’s growth of 45% and the 2-year growth of 35%ies
• Kroger: Grows 7% annually. Les s than recent trends.
• Assumes total Nielsen grows at 3.5% annually
~85% of growth from
“Super-Platinums”
Every “super-platinum” account has a strategic plan in place to do notably better than this;
the growth could be even more slanted if just 1 or 2 accounts delivers its plan
Page 12
Evolution In Big Customer Focus
Right to PlayRight to
CompeteRight to Win
Page 13
Big Customer Focus: Off Premise National Accounts
Prioritization of Accounts
Aligning Organization
“North Stars”
Programming to Win
National Account Manager: Fundamentals
Page 14
Prioritization of Accounts: Off Premise
MILITARY
AnalyticalRigor
NielsenScrutiny
CentralBuying
Decisions
LeadingN.A.
Growth
Top 100=
40% Volume
FoodDrugMassClub
Page 15
Alignment of Organization
Cat Management
Insights & Analysis
Shopper Behavior
Influence
KAMs
Local Execution
Distributor Interaction
“From National to Local”
ActivationTrade Decision Process
Promotional Guidelines
Program Creation
Finance & Revenue Management
Budget Builds
Regional Pricing Schemes
NAHQPlanning
Selling
Programming
Listings
Right to Play
LMFEGBI
Page 16
• VIA
• Reporting suite
• Nielsen Share Measurement
• #2 supplier on dollars
• Category +1 – Drive Share
• Dollars > cases
• Beam/Customer Alignment
• Zero based budget
• Funded first
“North Stars”
Vision Building Brands People Want To Talk About
Mission To Become The World‟s Fastest Growing Spirits Company
Financial Objectives $3 Billion in Sales with a 23% Operating Margin in 2013 (“3 & 23 in 13”)
2011 Target : 4% Sales Growth 4% Profit Growth 22% Return on Sales
Winning Competitive Edge Our Culture: Entrepreneurs… Creating Innovative Solutions… Beating The Competition, Together
Better Than Competitors At : Brand Building, Market Activation, Partnership Management
Priority No. 1: Unleash The „Spirit of Beam‟ By Inspiring Deeper Employee Engagement
CREATE FAMOUS BRANDS
Priority 2:
Focus Investment Behind Growing
Our Power Brands And Rising Stars
Priority 3:
Enhance Global Category Leadership
In Bourbon & Tequila
Priority 4:
Create Growth Through Innovation &
Expanded Category Participation
BUILD WINNING MARKETS
Priority 5:
Accelerate Share Growth In North
America
Priority 6:
Deliver Increased Value Creation In
EMEA
Priority 7:
Strengthen Profitable Growth
Momentum In AsiaPac/S. America
FUEL OUR GROWTH
Priority 8:
Align Our Organization To Be More
Effective & Efficient
Priority 9:
Generate The Next Wave Of Rocket
Fuel From COGs Reduction
Priority 10:
Drive Improved Revenue Realization
(Price, Spend, Mix)
National Accounts & BGSW Vision Into Action – Our 10 Priorities for 2011
0.0
5.0
10.0
15.0
20.0
25.0
11/13/10 12/11/10 01/08/11 02/05/11 03/05/11 04/02/11 04/30/11 05/28/11 06/25/11 07/23/11 08/20/11 09/17/11 10/15/11 11/12/11 12/10/11 01/07/12
$ Sales % Change Beam Bourbon Portfolio vs. Bourbon Category
rolling 13 wks
TTL BRBN CATEGORY TTL BRBN BEAM GLB SW
32.88 33.38
33.83 34.02 34.24 34.44 34.63 34.83 34.94 35.05 35.14 35.23 35.29 35.34 35.48 35.57
33.83
34.43
31.532.032.533.033.534.034.535.035.536.0
11/13/10 12/11/10 01/08/11 02/05/11 03/05/11 04/02/11 04/30/11 05/28/11 06/25/11 07/23/11 08/20/11 09/17/11 10/15/11 11/12/11 12/10/11 01/07/12
BGSW Bourbon Portfilio $ Share of Bourbon Categoryrolling 52 wks
TTL BRBN BEAM GLB SW 2010 $ Share 2011 Goal
Right to Compete
Page 17
• Brand planning & timing
• Application of Insights
• Retail theatre
• Presentation theatre
• Shopper insights
Programming to Win
Right to Win
Page 18
• Top To Top
• Internal Performance Review
– QBR
– Monthly Heat Call
– Hub Meetings
• Core Competencies and Functional Skills
– Shopper insight calls
– Distillery visits
– Cross functional R &D
– Brand experts: Gold accreditation
National Account Manager Fundamentals
2
FRESH INNOVATION Presentation
Lemons, Coconuts,Raspberry, Blackberry
Spices, Honey,Tangerine, Cucumber
ENVIROSELLBEAM GLOBALOctober 2010 7
BEAM GLOBAL MillennialsJuly 2011
ENVIROSELL
Right to Win
Page 19
Big Customer Focus: On Premise National Accounts
Alignment of Organization
Exposure, Trial & Adoption Model
Prioritization of Accounts
Programming to Win
National Account Manager – Fundamentals
“North Stars”
Page 20
• Complete support from top of the business unit
• Field alignment against accounts
• NAM/KAM/Cat Man/Activation Center
• Rare instances of National Marketing applying
• Account “Plan on Page”: Top 5 goals, landscape, strategy
• Program incubation – Agencies heavily involved
• Innovation Listing
• Innovation prioritization
• Vistaar & Regional coordination of pricing
Alignment of Organization: On Premise
Right to Play
Page 21
Exposure, Trial & Adoption: On Premise
• Brand Building Opportunities
• Liquid to Lips: One Drink at a Time
• Applying science & measures
• On Premise Experiences Drive Off premise purchases (Mintel Study)
• Gain buy in from marketers
• Strive for true partnership with accounts
• Defining areas to win
Page 22
Social Media Overview•Twitter
•Strong social chatter throughout the day, with Red Robin being cited
as a “trending topic” on Twitter (meaning our brand was among the
top 10 discussed topics within the Twitter community) on the
morning of 12/6/11.
•293 tweets using the #RR JimDay hash tag (this does not all other
mentions about Jim Day – obviously we received quite a bit more
since we were trending)
Final Event RSVPs: 9,809 Going, 1,418 Maybe, 9,045
Invited (these figures are all due to WOM – from people
forwarding / receiving the invite.)
6,500 new Facebook fans (typically week is approx 1K)
851% increase in people talking about Red Robin on
520,674 people reached from 11/30-12/6/11
•Website
251,599 site visitors to RedRobin.com
74% increase in site traffic from previous week
24,083 unique clicks from RedRobin.com FFE to RSVP
Red Robin Business Results• 32.1% increase in comp guest counts (41,000 total
guests) on 12/6/11
• Jim Day Free Burger Guest Mix was 13.4%
• Jim Beam Burger (Full Price) Guest Mix was 3.8%
(about 1% higher than trend)
Exposure, Trial & Adoption: On Premise
Right to Play
Page 23
THANK YOU!
