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Top Category Leaders In
Private Label Penetration
|
Unit Share
|
| Fresh Eggs |
77.2%
|
| Frozen Fruit |
70.6%
|
| First Aid |
62.7%
|
| Milk |
61.5%
|
| Charcoal Lighter |
59.7%
|
| Cotton Balls |
57.7%
|
| Sugar |
57.8%
|
| Coffee
Filters |
57.3%
|
| Marshmallows |
54.8%
|
| Dry Beans |
51.8%
|
| Butter |
51.3%
|
| Powdered
Milk |
51.0%
|
| Frozen
Vegetables |
50.9%
|
| Source:
IRI/PLMA PLMA’s 2003 Private Label Yearbook |
|
|
FRESH EGGS ARE NUMBER ONE IN PRIVATE
LABEL PENETRATION
Eggs are the number one supermarket
item in Private Label penetration, accounting for over 77% of
category unit sales. There is no other item in the store that
can build as much store brand equity as The incredible edible
egg™. |
EGGS TURN FAST AND GENERATE A POSITIVE
CASH FLOW
Only milk turns faster than eggs
in the dairy case. Most retailers are able to sell their eggs
before they have to pay for them, generating a positive cash
flow and improving overall store performance.
|
 |
Source: AEB, Making the Case
for Eggs |
Source: AEB, Making the Case
for Eggs
|
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EGGS ARE AMONG THE MOST PROFITABLE
CATEGORIES IN THE STORE
Compared to other categories,
not only are egg gross margins higher, but handling costs are
less, resulting in a true profit that is higher than most every
other area of the store.
|
ARE
EGGS THE PERFECT CATEGORY?
In looking at the category characteristics
that are most important to retailers, few items can match the
overall performance delivered from eggs. Is there any other
category in the store with all these advantages?
- High household penetration
- High growth
- High margin
- Fast turning
- Strong sale item response
- Appeals to the best-customers
- Creates true incremental sales
- Builds store-brand equity
- Maximizes promotion efficiency
- Generates related item sales
- Enhances store traffic patterns
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EGGS TAKE UP LESS SPACE THAN OTHER
DAIRY CASE CATEGORIES
|
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DO EGGS GET THE SPACE THEY DESERVE?
In
recent years, some retailers have cut back on the space devoted
to eggs under the mistaken assumption that demand for eggs is
static and that profit potential will not be impacted. Over
the past five years, research has consistently demonstrated
that eggs may not be getting their “fair share” of
attention and that retailers may be giving up space to less
profitable items. Eggs typically take up less than 5% of total
dairy case space, but return more sales per square foot than
any refrigerated grocery categories except milk and cheese. |
|
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|
Top Growth Categories —
Refrigerated Dollar Sales
|
|
| %
Change vs. Prior Year |
| Fresh Eggs |
14.3%
|
| Yogurt |
9.9%
|
| Creams/Creamers |
8.2%
|
| Breakfast Meats |
8.0%
|
| Rfg. Salad/Coleslaw |
6.8%
|
| Natural Cheese |
6.1%
|
*FDMW—Food,
Drug, Mass, Warehouse
Source: National Frozen & Refrigerated Foods
Association, 2003 Year-End Report |
Egg sales are growing much faster than
other refrigerated categories. Dollar sales growth in the egg
category not only outpaced other refrigerated items, but eggs
were among the fastest growing categories in the store. |
|
EGGS GENERATE MORE SALES AND PROFITS
PER ITEM THAN OTHER CATEGORIES
|
 |
|
EGGS GENERATE MORE TRIPS PER BUYER
THAN MOST OTHER DAIRY CASE CATEGORIES
Eggs generate an average of 12.6 trips
per buyer, more than any other dairy case category except milk
and cheese.
Source: ACNielsen Homescan™/Progressive
Grocer, May 1, 2002 |
RETAIL PROFITS
Eggs are one of the most profitable
items in the store. Eggs were once thought to be primarily a
commodity item producing only minimal profits for the retailer.
Over the past several years, gross margins in the egg category
have steadily risen, now exceeding 40% in most parts of the
country. This makes eggs one of the least-cost and high impact
promotion items in the store. |
|
Source: Urner Barry Publications,
Pactiv Corporation and ACNielsen |
WHAT EGGS COST TO HANDLE
In 2003, the American Egg Board conducted
an extensive study of egg supply chain handling costs. For a
typical warehouse egg program shipping in 30-count cases, the
total distribution and store costs averaged 18.8¢ per dozen.
However, after store occupancy costs, the single largest cost
factor was shrink and damage. Retailers can significantly increase
their profitability through improved handling procedures and
training. The greatest source of shrink was caused by retailers
handling activities and shipping eggs on mixed pallets with
other items.
EGG CATEGORY DATA |
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Households
using
|
Repeat buyers
|
Item units
per trip
|
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|
Buyer dollars
per trip
|
Item trips
per buyer
|
Purchase
cycle
|
|
|
|
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|
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Sold on
deal
|
Buyer dollars yearly
|
Total retail sales (estimate 2003)
|
|
|
|
 |
|
Source:
Progressive Grocer Consumer Expenditures Study; May 1,
2002 & April 1, 2003 and AEB Research |
| Egg
production sold in retail stores |
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