Keeping your Store Relevant
Key Messages
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The significance of candy in store
•
When to push innovation launches
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Gaining incremental sales with seasonal product
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Best in class merchandising
The significance of candy in convenience
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Total Dollar Sales
Total U.S. C-Store YTD W/E 12/06/20
CMG and Salty Snacks represent the two largest snacking categories
with a combined 57% of sales
Candy has the highest GM% and 2
ndhighest HH Penetration across
all edible categories
Gross Margin % by Merch Category
C-Store GM% 52 W/E 12/29/19 Edible Categories % HH PenetrationTotal U.S All Outlets 52 W/E 12/29/19
Candy splits into Choc/Non-Choc: Choc is the largest confection
category totaling almost half of all CMG sales
Chocolate
49.48% Non Chocolate33.76% 13.23%Gum 3.53%Mint CMG Sales Change (M)
Total U.S. C-Store YTD W/E 12/06/20
CMG Category Share
Total U.S. C-Store YTD W/E 12/06/20
When and why to push innovation
launches
Sometimes less is more!
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Core items should always be the focus in store, innovation is
incremental
EVD IC Core vs Innovation Item Ct Share & Dol Share
Total C-Store 2020
EVD IC Core vs. Innovation Dol Per Item
Total C-Store 2020
Source: IRI
Top 10 innovation brands made up 82% of innovation
sales in 2020
9 Source: IRi
Top 10 Innovation Brands Dol Sales
Total U.S. C-Store; YTD WE 11/22/20
• Total Innovation Sales: $160M • Top 10 Innovation Brands: $131M • Remaining Innovation Brands: $29M
Capitalize early on innovation by getting items into distribution,
otherwise innovation will miss opportunity
Keep an eye on innovation after launch; most plummet in
sales after customer excitement wears off
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Innovation brands see a significant
drop in velocity after the first year
Source: IRI
Everyday King Size Brands $/MM ACV Total US C-Store 12 Weeks Post Launch
Recommended # of Innovation SKUs Per POG Size
12
12’ 9 Shelf POG
9’ 9 Shelf POG 6’ 9 Shelf POG
12 Innovation
Candy SKUs
7 Innovation
Candy SKUs
Candy SKUs
4Innovation
Avg Candy Item Count 12’ -- 136
9’ -- 102 6’ -- 68
Reese flavor extensions provide more incrementality without
diminishing core sales
Snickers brand has grown their item count by 65% since 2015, while
sales have only grown by 7%
Cross purchasing of everyday and seasonal items produces minimal
overlap leading to high incrementality
Reese’s Everyday IC
67%-72% Reese’s Seasonal IC
24%-29%
Overlap 3-8%
% of Everyday and Holiday Seasonal Consumers
Loyalty Card Data
Seasonal items are typically purchased in addition to everyday items
Reese’s Franchise Everyday and Seasons Dollars
Total US C-Store Quad Weeks
Minimal items are needed to capture a majority of seasonal sales,
start small with a box at register
Top 2 Items’ Sales Contribution for Each Season
Seasons 2020
Top 2 items
31.0% Top 2 items 36.4% Top 2 items 49.2% Top 2 items 41.6%
BUILDING SEASONS SHIPPER GETTING STARTED BOX AT REGISTER OWN THE SEASON END CAP Source: IRI
Best in class merchandising and the
latest Hershey Innovation
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Reese’s Big Cup With Pretzels
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Agenda
▪ Is Innovation important to drive my business?
▪ Newest Launch: What is Reese’s Big Cup with Pretzels?
▪ Why execute in your store?
▪ What does Reese’s Big Cup with Pretzels have to win right now?
▪ Why another Reese Brand extension?
▪ Marketing: How will we support this launch?
▪ Leveraging the manufacturers support to gain sales.
Key Messages
▪ Introducing New Reese’s Big Cup with Pretzels– the Reese’s chocolate & peanut butter you love, now stuffed with your favorite salty snack for the perfect afternoon pick-me-up
▪ We are launching Reese’s Big Cup with Pretzel in the following pack types
▪ King & Standard – November 06th, 2020
▪ Reese Stuffed 240ct Prepack – November 16th, 2020
▪ Big Cup will continue to be a platform for Reese’s brand to expand further into the afternoon cravings occasion
▪ When consumers think of Chocolate Covered Salty Snacks, Pretzel is the # 1 choice
▪ Reese’s Big Cup with Pretzels will launch December 2020 with priority innovation advertising support that reinforces this The Hershey Company’s key launch for 2021
Reese’s Peanut Butter Big Cup with Pretzels Standard Bar, 1.3 oz
Case | Item UPC: 34000 24987 | 34000 24988
Reese’s Peanut Butter Big Cup with Pretzels King Size Bar, 2.6 oz
Case | Item UPC: 34000 24989 | 34000 24990
Introducing Reese's Peanut Butter Big Cup with Pretzels!
Standard and King Size Bars – Product Detail
Available for Delivery 11/06/20 Brand Insights Support Launch
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Reese’s Big Cup with Pretzels is part of a comprehensive
portfolio approach to win in both snacking & indulgence
Brand Insights Support Launch
Indulgence Snacking
Source of Volume
Snack Foods (Chips / Pretzels) Confection0% 1% 2% 3% 4% 5% 6% 7% 8% 12 AM 1 AM 2 AM 3 AM 4 AM 5 AM 6 AM 7 AM 8 AM 9 AM 10 AM 11 AM 12 PM 1 PM 2 PM 3 PM 4 PM 5 PM 6 PM 7 PM 8 PM 9 PM 10 PM 11 PM Meal Time (not to scale y-axis)
3
pmSource: MESH Consumer Journey, 2018
IC Occasions: The Big Cup platform will help Reese’s to
win during peak afternoon cravings
% of Reese’s Cravings By Daypart
25
Packtypes Available
IC First Delivery 11/06/20
Big Cup Standard: 1.3 oz / 8 / 16 Ct Big Cup King: 2.6 oz / 9 / 16 Ct
Prepack First Delivery 11/16/20
Reese Stuffed Prepack: 240 ct Assorted King
▪ Introducing New Reese’s Big Cup with Pretzels– the Reese’s chocolate & peanut butter you love, now stuffed with your favorite salty snack for the perfect afternoon pick-me-up
▪ Adding Pretzels allows Reese’s to play a more satiating role to help fill the afternoon pick me up job in a new way
▪ When consumers are asked about adding something to a Reese’s, the overwhelming preference is Pretzels
Plan on A Page - Reese’s Big Cup with Pretzels
Marketing Support
National Launch Timing / Merch
First Delivery: IC November 16th, 2020
3 Standard Bar National Merch Vehicles
Permanent
Platform / Product Insights
Brand Insights Support Launch
• TV Commercial • Digital Support -Facebook -Instagram -OLV • Earned Campaign
Estimated 1.5 Billion Impressions Media Support Plan
Standee
240 Ct Roller Mod1390 Ct
Half Mod 2310 Ct
Dec
‘20 Jan‘21 Feb‘21 Mar‘21 Apr‘21 May‘21 Jun‘21 ‘21Jul Aug‘21 Sep‘21 Oct‘21 Nov‘21 Dec‘21
Priority Innovation Support Merchandising Consumer Programs
Reese’s Big Cup with Pretzels will receive advertising throughout
2021 including TV, Digital, and Social
Large and small count solutions throughout the year Integrated support across:
Television Digital Social Earned Brand Insights Support Launch
Execution…it’s a step by step process to success
Step 1
Step 2
Step 3
Secure Placement and Line Pricing •Review all plan o grams for distribution
opportunities of all IC items, if applicable
•Line price with items by pack type and
plan for distribution on 11/06/20
Build Excitement with POS • Reinforce news with appetite appeal
visuals
Execute merchandising
•Leverage pre-pack displays to drive trial
and repeat
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In-Store Retail Execution – Best Practice
Summary
▪ New Reese’s Big Cup with Pretzels– the Reese’s chocolate & peanut butter you love, now stuffed with your favorite salty snack for the perfect afternoon pick-me-up. Drive trial and repeat purchases with flawless in-store execution.
▪ We are launching Reese’s Big Cup with Pretzels in Standard and King Size Big Cup along with a 240ct King Prepack to drive brand expansion and provide cross merchandising opportunities to build the consumer basket size.
▪ Reese’s with Pretzels will be supported with major advertising support throughout 2021 including TV, Digital, and Social Media to drive trips, awareness and demand to build the basket size within Convenience stores.
▪ Proper Execution in stores, leveraging the brand launch support, merchandised in areas known to tie well together (Inline distribution, morning trips and lunch occasions) will increase the basket size and drive profits for the convenience owners.
Innovation’s Role Within C-Store: Key Takeaways
• Innovation is the main driver of growth within C-Stores, but too much can hurt base business
Growth
Driver
• Many retailers are missing out on the opportunity during the early time periods of newly launched products
Launch
Opportunity
• Merchandising displays, signage, and promotion play a large role in successful innovation of products
