By: Bill Ferguson 12/7/11
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Transcript of By: Bill Ferguson 12/7/11
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By: Bill Ferguson 12/7/11
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Overview• Total U.S. Sales for alcoholic beverages is $15,075,290,000
• Bourbon accounts for $347,856,000
• Jack Daniels accounts for $104,862,000
• In the store audits conducted there was 146 different SKUs
• In the store audited there was 0 private labels
• Jack Daniels was dominated accounting for 17 different SKUs • Jack Daniels also leads the number of facings with 43
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OverviewStores Audited # of SKUs # of Unique SKUs
West Siloam, OK 97 3
Liquor World, AR 95 13
Walmart Jane, MO 61 0
Liquor Depot, AR 26 0
Sam’s Club, AR 44 0
• Main retailers are Liquor World, Walmart, and West Siloam
Prevalent Brands• Jack Daniels• Jim Beam• Evan Williams • Maker’s Mark• Old Charter
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Demographics
• Bourbon is consumed by mainly higher income households
• If private label was to be introduced to this market it may capture the lower income households
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Demographics
• Households with 2 members are more likely to drink bourbon• Households with more than 2 members have children (to busy to drink)
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Demographics
Bourbon is very popular in households w/o femalesBourbon is highly enjoyed by older households as well
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Dominant BrandsThe dominant manufacture is Fortune Brands
They make Jim Beam
Which is lower cost than Jack Daniels therefore better GM
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Dominant Brands
These brands have a high stocking rate due to the popularity of these 5 brands and the amount of sales
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Margins• Bourbon is a Cash Machine Category
• B/c it has high Gross Margins and medium sales volume
• It grosses over $340 million a year
• Bourbon overall has wonderful Gross Margins
• It has a great deal of shelf space
• Jack Daniels accounts for over 100 million in sales
• On average the top brands have very high gross margins
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Questions
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