Sustaining Margins the IGA Way

Russian Heat Wave

The heat wave and drought that hit Russia in the summer of 2010 destroyed 1/3 of the wheat crop

Flooding in Australia

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Australia, the world’s fourth-largest wheat exporter, is expected to lose up to 90 % of its harvest due to recent flooding.

Dry Weather in Argentina

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Argentina's soybean crop, the world's third-biggest, is facing drought caused by La Niña weather conditions.

Colder Weather in the Northern Hemisphere

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Unusually cold winter weather in the northern hemisphere is resulting in significant agricultural loss.

The Rest of the Story

Additional factors contributing to global food shortages and higher food prices:

fuel pricesgrowing demand from Chinaincreasing corn use for ethanol fuel a weak U.S. dollar

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2008 Global Food Crisis

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The Current Global Food Crisis

Measure of the monthly change in international prices of a basket of food commodities.

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Changes in monthly international prices of major food commodities.

The Current Global Food Crisis

"We are entering a dangerous territory. It will be foolish to assume this is the peak. There is still room for prices to go up much higher…” Abdolreza Abbassian

Economist Food and Agriculture Organization of the United Nations

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What is IGA?

IGA is more than a simple banner – it’s more than private label merchandise on the shelf

Why They Are IGA …..

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What is IGA?

Wholesalers, premier global manufacturers and retailers combine to create the IGA Alliance….

IGA is the biggest affiliation of independent grocers in the United States and around the world!

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What is IGA?Global Retail Locations

IGA is the world’s largest voluntary supermarket network with aggregated worldwide retail sales of more than $29 billion per year

The Alliance includes over 5,000 Hometown Proud Supermarkets worldwide, supported by 36 distribution companies and more than 55 major manufacturers, vendors and world-wide suppliers

IGA has operations in more than 36 countries, commonwealths and territories.

IGA Around The World: 5,000 Stores and Growing

IGA has operations in more than 36 countries, commonwealths and territories

BRAZILAUSTRALIA

USA

SINGAPORE

CHINA

MOSCOWMOSCOW

GUAM

Global Vision, Local Focus

How Can IGA Help Independents Sustain

Margins in a Global Food Crisis?

How Can IGA Help Independents

Brand Awareness Buying Power Partnerships with manufacturers Education

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Brand Awareness: The IGA Promise

A Brand Promise thatapplies in every culture:

“The IGA Promise of personalized customer service delivered by trusted members of the community…”

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Brand Awareness: Community Commitment

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Buying Power When groups of stores trading in a common region combine –

the power of the individual IGA stores is naturally magnified

Buying Power

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Relationships with Manufacturers

The world’s premier consumer product manufacturers are helping to address the issues and opportunities of independent grocers.

Through their Red Oval membership, they are able to offer incremental support and programming that is exclusive to IGA independents.

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Red Oval Patners

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Education: IGA Coca-Cola Institute Training

WWW.IGAINSTITUTE.COM

Education: IGA Coca-Cola Institute Training

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Certifications and Enrollments

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What Our Students Say

“The training support I have received from the Institute is excellent or good.”90%

“After completing the Institute’s online courses, I havereduced errors on the job.”71%

“I have been able to apply my newly learned skills and knowledge to my job.”89%

“After completing the Institute’s online courses, I have more confidence when performing my job.”88%

“The Institute’s online training is easy to use.”94%

“The training support I have received from the Institute is excellent or good.”90%

“After completing the Institute’s online courses, I havereduced errors on the job.”71%

“I have been able to apply my newly learned skills and knowledge to my job.”89%

“After completing the Institute’s online courses, I have more confidence when performing my job.”88%

“The Institute’s online training is easy to use.”94%

Three Thoughts for Sustaining Margins Provide retail stores with productivity ideas that will help

keep costs low without sacrificing customer service or product quality

Think of new ways to control costs and logistics

Consider collaborative sourcing…even with competitors

At the end of the day the winner will be the one who serves the customer best…

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Sustaining Margins the IGA Way