Selling Specialty Foods to Supermarkets. Introduction. Today s Speakers. > Today s Moderator: Ron Tanner, NASFT
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1 Selling Specialty Foods to Supermarkets September 13, 2011 / 2 3 p.m. ET Speakers: Julie Jeremy, Native Kjalii Foods Chris McCarthy, Acosta Phil Myers, Central Market Houston Moderator: Ron Tanner, NASFT Introduction > Today s Moderator: Ron Tanner, NASFT > Session Logistics Download slides now from LINKS box on left Q&A protocol > Session Overview Speaker Introductions Selling to Supermarkets Manufacturer Viewpoint (Julie Jeremy) Broker Viewpoint (Chris McCarthy) Retailer Viewpoint (Phil Myers) Q&A Ron Tanner Selling Specialty Foods to Supermarkets, September 13, p.m. ET 1 Today s Speakers > Julie Jeremy, Native Kjalii Founder of Native Kjalii Foods, national brand recognized for its use of fresh & natural ingredients. Product line includes: chips, cooking sauces and fresh entrees Career Highlights: Worked in New York in publishing field for News America, eventually moving back to her home town of San Francisco Launched a clothing line called JULIE K. SF in the 90s and later used the brand/product development, promotion and retail sales experience to help develop Native Kjalii Foods Inspired by the natural movement in food, Julie created Native Kjalii with first products launched in 1995: Fire-Roasted Red Salsa, Fire-Roasted Green Salsa, Guacamole and a Papaya Mango Salsa all locally sourced. Education: BA from San Diego State University > Chris McCarthy, Acosta Senior Vice President Midwest Natural Specialty Sales Division Acosta 17 years with Acosta - held a number of positions within the company including Retail, Marketing and Sales Joined the Specialty/Natural Division of the company in 2006 BA from Western Michigan University Food Marketing Program > Phil Myers, Central Market Houston General Manager Central Market-Houston Former Director of Merchandising CO-OP Foodstores-New Hampshire Trained Chef - New England Culinary Institute 8 yrs. NASFT Buyer s Circle Council Selling Specialty Foods to Supermarkets, September 13, p.m. ET 2 1
2 Poll > Please help us better understand the companies you represent and why you are here today > Are you currently selling to supermarkets? Yes No > How long have you been in business? < 1 year 1-5 years 6-10 years years 20 + years Selling Specialty Foods to Supermarkets, September 13, p.m. ET 3 1 Selling Specialty Foods to Supermarkets The Manufacturer Perspective Julie Jeremy, Native Kjalii Foods Selling Specialty Foods to Supermarkets, September 13, p.m. ET 4 Product Validity Don t solve a problem that doesn t exist No one else has it is there a reason for this??? Is it a new product in an EXISTING CATEGORY? Will this product STAND OUT? Is the price point in the RANGE with retailer? Will your product fit in with the existing products in the category? Selling Specialty Foods to Supermarkets, September 13, p.m. ET 5 2
3 Early Fork in the Road Direct vs. Distributor Incredibly important and long-lasting implications What type of product do you have? What type of packaging? WHO IS YOUR CUSTOMER? Selling Specialty Foods to Supermarkets, September 13, p.m. ET 6 Packaging What does this mean and why do you care? True story Does your package represent your product? Inspiration Romance Passion Selling Specialty Foods to Supermarkets, September 13, p.m. ET 7 Strategy and Reality Don t get cute Patience of Job But professional and polite What do you want to accomplish? Goals Image of your product and company Level of professionalism Reaching your target customer Selling Specialty Foods to Supermarkets, September 13, p.m. ET 8 3
4 Don t Try to Reinvent the Wheel Learn from others Brokers, Reps and Sales Directors If you don t see something on the shelf (packaging, product type, category), maybe there is a reason. Or, maybe NOT. Selling Specialty Foods to Supermarkets, September 13, p.m. ET 9 The Surprise Start small and build Wal-Mart not the place to start Lifers One Hit Wonders The Surprise Selling Specialty Foods to Supermarkets, September 13, p.m. ET 10 2 Selling Specialty Foods to Supermarkets The Broker Perspective Chris McCarthy, Acosta Selling Specialty Foods to Supermarkets, September 13, p.m. ET 11 4
5 The Product > Having a great product is not enough > Must fill a legit consumer need that is not already being met > Innovation Unique/authentic flavors Health Packaging safety & convenience Product form Experience premium, cause related, etc. > Value Selling Specialty Foods to Supermarkets, September 13, p.m. ET 12 Research is Key > Who is your consumer? > How big is your target market? > Where will they look for your product? > What will they be willing to pay for your product? > How often will they buy your product? > How long will they buy your product? Selling Specialty Foods to Supermarkets, September 13, p.m. ET 13 Tactics (1 of 2) > Develop a strategy around M.A.P.S. Merchandising How and when do you plan to promote? Assortment What are your priorities by item? Pricing What is your targeted everyday and promoted price point? Shelving What competitive brands do you want to be near? Selling Specialty Foods to Supermarkets, September 13, p.m. ET 14 5
6 Tactics (2 of 2) > Consider mode of Distribution Location in store will be a factor Retailers will impact final decision > Distributors Transportation capabilities Cost savings Retailer relationships Category expertise Reach > How will you penetrate a complex market = Brokers Selling Specialty Foods to Supermarkets, September 13, p.m. ET 15 The Broker (1 of 2) > Partnership Acting as an agent for your company Mutual goals drive sustainable growth > Offer a variety of services HQ sales Integrated Marketing Solution analytics, insights and consulting Retail Services continuity, resets, projects Administration contracts, orders, deduction, proprietary systems Selling Specialty Foods to Supermarkets, September 13, p.m. ET 16 The Broker (2 of 2) > The experts in a complex market Retailers Distributors Local market Trust and rapport > Maximizing Services Need clear consistent objectives Scorecard agreed upon objectives and timelines Selling Specialty Foods to Supermarkets, September 13, p.m. ET 17 6
7 The Retailer (1 of 2) > Manage by category > Must demonstrate product ability to grow the category and add value Bring new consumers to the category Drive additional purchases in the category Trade consumers up in the category > Presentation must be fact based Data driven Provide quantifiable sales points Selling Specialty Foods to Supermarkets, September 13, p.m. ET 18 The Retailer (2 of 2) > Presentation must be detailed and executable Make retailer execution turnkey > Must demonstrate the ability to drive trial and repeat purchases > Have a retailer specific support plan Placement program Ads, TPRs, Demos, EDLP, etc. > Be flexible retailers have different consumers, strategies etc. Selling Specialty Foods to Supermarkets, September 13, p.m. ET 19 Final Thoughts > Be patient Category review schedules drive timing Game changing brands did not develop overnight > Get as much exposure as you can to drive awareness ecommerce Shows Consumer Support > Be persistent A no today could be a yes tomorrow Selling Specialty Foods to Supermarkets, September 13, p.m. ET 20 7
8 3 Selling Specialty Foods to Supermarkets The Supermarket Perspective Phil Myers, Central Market Houston Selling Specialty Foods to Supermarkets, September 13, p.m. ET 21 Specialty Food Industry > Supermarkets today Battling for market share Making specialty affordable Riding the chef as star wave The biggest battle? IPC Selling Specialty Foods to Supermarkets, September 13, p.m. ET 22 Understand the Retailer Take time to get to know us! We are selling your product to the customer Spend time in an aisle one on one. Listen and learn Ask for feedback on your products! Selling Specialty Foods to Supermarkets, September 13, p.m. ET 23 8
9 Understand the Retailer A retailer has limited space. The mystery for every mfr. For every item we add, one has to go! How not to hit bottom How does placement work? The least understood by mfrs. What is the most important location? Shelf vs. promotional Selling Specialty Foods to Supermarkets, September 13, p.m. ET 24 Understand the Retailer How difficult is it for the retailer to get on the shelf? Distributor vs. Direct I am not a warehouse! What are your minimums/ case requirements? Lead times? What support is there for the product? Shelf talker? Training? Demo? Selling Specialty Foods to Supermarkets, September 13, p.m. ET 25 Understand the Retailer What is the outside support? Customer demand? One word: Oprah! Does the retailer understand the product? Umm, Wild Fennel Pollen anyone? Price / Value sensitivity, Timing Seasonality, category schedule, know where you are Selling Specialty Foods to Supermarkets, September 13, p.m. ET 26 9
10 Strategic Relationships > Dedicate yourself to customer centric thinking. > Help me help you > Make it count Selling Specialty Foods to Supermarkets, September 13, p.m. ET 27 Listen to Retailer Feedback > Retail Feedback Price / value Distributor performance Packaging fail! Demo effectiveness Lack of follow-up Selling Specialty Foods to Supermarkets, September 13, p.m. ET 28 Top 5 Questions > Top 5 Questions Why will my customers buy it? How does it grow this category? What support will I get from you? What does mutual success look like? Are you in it to win it? Selling Specialty Foods to Supermarkets, September 13, p.m. ET 29 10
11 Find the Win/Win > Help the retailer/distributor to say YES; they will have a tendency to say NO > Think consumer centric and find the WIN/WIN Selling Specialty Foods to Supermarkets, September 13, p.m. ET 30 Thank you for joining us. If you have additional questions, please send them to education@nasft.org. Selling Specialty Foods to Supermarkets Q & A Speakers: Julie Jeremy, Native Kjalii Foods Chris McCarthy, Acosta Phil Myers, Central Market Houston Moderator: Ron Tanner, NASFT 11
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