Progressive Grocer Product

Summer 2015

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2 0 Progressive Grocer Products Showcase / Summer 2015 CENTER STORE off strong. Cereals also struggle against more convenient, portable options, including: • Nature Valley Protein Crunchy Granola ($34.5) • KIND Healthy Grain Clusters ($27.0) • Hershey's Cookies 'n' Crème Cereal ($24.7) • Quaker Real Medleys Cereal ($20.5) • Kellogg's Special K Cereal Oats & Honey ($20.0) Source: IRI New Product Pacesetters; Year-One Sales, MULO, $ Millions Merchandising Matters Center store categories report some heavy promotion, helping drive brand awareness, traffc and sales to a number of areas. According to Solon, Ohio-based ECRM Data Ad Comparisons analysis, beverages were the most promoted category within center store. Not surprisingly, beverage products represented fve of the 10 most heavily promoted center store brands. Pepsi and Coca-Cola took the top two slots, with almost half of their ads receiving premium page placement in circulars. Products from the snacks category, which represented just more than 19% of category promotions, took four of the remaining fve slots in the top 10. Dry and boxed foods represented the only other category to have a brand in the top 10, with Kraft Boxed Dinners making the list. Promotions for this product had the largest jump in promotions of all the center store brands over the past year, likely in an effort to buck the trend of retailers promoting more fresh and prepared foods. PGPS Category Share Canned Foods 10.3% Baking Needs 9.0% Dry & Boxed Foods 6.5% Beverage 21.2% Snacks 19.6% Condiments & Dressings 6.9% Grocery Bakery 5.9% Sauces & Spreads 5.6% Cereal 5.0% Cofee/ Tea & Cocoa 4.4% Everyday Candy 3.0% Baby & Toddler Food 1.1% Seasonal Candy 1.0% Internatonal/ Ethnic Foods 0.4% Gum 0.2% Offer Type Share X-For 44.5% Save $x 3.9% BOGO 3.5% Other 0.6% Save X% 0.5% Price Point 47.1% Source: ECRM All U.S. Retailers, Circulars Only, Effective Ad Block Count Source: ECRM All U.S. Retailers, Circulars Only, Effective Ad Block Count

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