• CUB - 75+ stores; Minneapolis Metro • Farm Fresh – 40+ stores; Virginia • Hornbachers – 6 stores; FargoMoorhead • Shop ‘n Save – 50+ stores; St. Louis Metro and Central IL • Shoppers – 50+ stores; Baltimore, Northern Virginia, DC
• Average stores size = 50,000+ sq ft • Traditional grocery retailer selling private brand and national brand products across all WIC categories
Grocery Wholesaler
• Independent Business (IB) Locations Serviced = 1900+ • Industry-leading distributor servicing a broad range of entrepreneurs ranging from single neighborhood stores to small and large, regional multi-store locations • Distributing private brand and national brand products across all WIC categories in 48 states + DC and Guam
Retail Stores = 1400 Locations = 36 states Average Store Footprint = 15,000 sq ft Average SKUs = 3000 (vs. 50,000+ at conventional) Limited assortment concept with private label focus allows for retail prices up to 40% below conventional supermarkets • 100% Money Back Guarantee on private label products • WIC required items + WIC approved items as space permits $4B+ Annual Sales
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Topline Among major food and value retailers, Save-A-Lot serves shoppers with the lowest income profile $90.0 $80.0
$73.0 $59.2
$58.4 $46.6
$50.0 $40.0
$77.2
$78.0
$67.4
$70.0 $60.0
$77.1
$38.6
$51.1
$52.4
$59.7
$52.9
$41.3
$30.0 $20.0 $10.0 $0.0
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Support of WIC Mission - Overview • SUPERVALU’s mission is to partner with WIC programs to create the best shopping experience for all WIC customers • Training store staff to be knowledgeable, helpful, and courteous during WIC transactions • Providing WIC solutions such as shelf tags and end caps to simplify the WIC shopping trip • Sharing knowledge during eWIC planning and implementation
• SUPERVALU develops WIC eligible private label national-brand-equivalent (NBE) products for inclusion on states’ approved food lists in order to provide nutritious foods at a value to the WIC program • Save-a-Lot food stores operate in urban and rural food deserts to provide all customers with access to nutritious, low-cost foods in their own neighborhoods 4
What is NBE? National Brand Equivalency means replicating the national brand in product characteristics while being priced below the National Brand at retail Supervalu and Save-A-Lot have a network of 600+ manufacturing partners that produce our private label products to NBE product standards Some of these suppliers are the manufacturer of the National Brand product Supervalu and Save-A-Lot have internal teams of Chefs, Food Scientists, Nutritionists and Sensory facilities to evaluate proposed private label products for National Brand Equivalency
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What is NBE? Private Label Product Quality Standards How are products evaluated to determine if they are equivalent to the National Brand?
Ingredient Declaration
Product Weight/Count
Nutrition Facts Panel (NFP)
Preparation Directions
Front-of-pack Label Claims
Sensory Evaluation
Packaging 6
What is NBE? Private Label Product Quality Standards Degree of Likeness 1
2
3
4
5
6
7
8
9
Unacceptable
Unacceptable
Unacceptable
Marginal
Marginal
Marginal
Acceptable
Acceptable
Acceptable
This Hedonic rating system is utilized in product evaluations to: Measure organoleptic degree of acceptance ie. How does it taste, smell, look – sensory attributes Weight Individual attributes by significance Ex. Aroma is very important in coffee but less important in crackers Analyze subjective data statistically
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– WIC Key Issues & Opportunities Supervalu and Save-A-Lot have a combined 1000+ WIC eligible items • Supporting WIC Client Options
• Supervalu and Save-A-Lot have a combined 96 eligible foods across categories where private brand products are not accepted • We advocate for giving the WIC client a choice between national brand and private brand products
• More Standardization/Documentation across state policies: – – – –
Minimum Inventory Requirements Food List Reviews Private Label Acceptance Compliance Monitoring Process 8
WIC – Examples of Business Partner Collaboration BCP Leverage Examples • Visibility to NWA operating issues and potential business solutions • Featured sponsorship opportunities with the WIC Community • Multiple NWA leadership meeting opportunities for BCP/WIC engagement • NWA provides a platform for Business Partners to interact with WIC state-level staff • Intra-business council partner opportunities BCP Leverage Opportunities • Visibility to states of BCP membership • Dedicated BCP reception opportunity at NWA Annual Conference and Expo with State Directors and decision makers • Retailer information/scan data on WIC shopper purchasing habits and sales trends • Assess and enhance retail operations practices specific to the WIC shopping experience 9 • NWA liaison as information source for states policy changes