The document provides an overview of Beam's strategy for national accounts in 2013. It outlines Beam's vision, mission, and financial objectives. It then lists 10 priorities, including becoming the #2 supplier in dollars, using shopper insights to outperform competitors, and aligning organizational objectives with customer timelines. It also discusses key national accounts like Walmart, Target, and Kroger that represent major growth opportunities. The document emphasizes aligning the organization, programming to win priority accounts, and the fundamentals of national account management.
2. 2013 Beam Global Vision Into Action – National Accounts
Vision Crafting The Spirits That Stir The World
Mission To Become The World’s Fastest Growing Spirits Company
Financial Objectives Exceed National Account Plan Numbers:
Off Premise Appox – 7.9% Depletions; 10.5% NSV & 12% DGP (Ex Innovation)
On Premise 4.5% Depletions; 6.2% NSV & 8.1% DGP (Ex Innovation)
Winning Competitive Edge: The Spirit Of Beam: Entrepreneurs…Creating Innovative Solutions…Beating The Competition,
Together - Beam NAM’S understand the importance & complexity of driving sustainable results
within our Platinum, Gold and Silver acct universe. All NAM’s are Gold Spirits Trainer Certified!
Priority No. 1: Become 2nd Largest supplier in dollars (12 Month Rolling) – Grow our Value share
faster then our Volume share TTL NA Accounts (12/31/13)
CREATE FAMOUS BRANDS BUILD WINNING MARKETS FUEL OUR GROWTH
Priority 2: Priority 5: Priority 8:
Use shopper insights to out execute Create Universal Vistaar pricing tool for Align Our Organizations objectives to our
competition and secure Customer Centric On & Off Premise National Accounts / customers timelines (TTB Approvals /
programs that drive industry leading growth Better understand, manage and reconcile Innovation)
on our Power and Rising Stars Brands funding streams from NAHQ Accounts
Priority 9:
Priority 3: Nail Pinnacle – make it big in Priority 6: Work seamlessly with Local Sales /
NAHQ off and on-premise (440K Off / 75K Exemplify industry leadership with all Marketing & Activation Center (Strengthen
On) National Accounts – Be viewed as trusted Feedback Loop & Increase Communication)
unbiased supplier
Priority 4: Priority 10:
Create Growth through securing Innovation Build zero based budgets & Cat +1 Plan
& Expanded Category leadership in Bourbon Priority 7: builds for 2014 – Platinum / Gold & Silver
& Tequila (SG Vodka & Wine) Accelerate Share Growth In Platinum, Gold Accounts – Refine On Premise National
& Silver Accounts – Drive Value – Protect Acct lists (Implement Exposure – Trial &
Pricing integrity Adoption model) CONFIDENTIAL
3. NAHQ BHAG & Top 5 Goals: 2013
BHAG: Make the NAHQ team both a clear source of talent for the company and a sought after career
progression experience within Beam. Success in 2013 would be 2 NAMS being recruited to other Beam
organizations and 75% of NAHQ job openings being filled internally
Top 5 Goals
1. DGP growth above 10% with Skinnygirl, Sauza Family, Jim Beam Family, Maker’s Mark and Pinnacle being
the 5 fastest growing brand families
– Acute focus on Sauza/Cinco partnership success and overall development/expansion of relationship
with Corona (Expand to 4th of July & Holiday – Attain 100% participation of NAHQ Accts)
2. Integrate NAHQ into state planning and pricing processes (IL, FL, CA, AZ, IN); have 4 QBRs with all DVPs,
state managers, and KAMs attending
3. Create clear compensation links between Local Field Sales/NAHQ & SWS Local Field Sales/NAHQ.
(California/Arizona/Illinois/Florida). Train & Develop all NAM’s/Kam’s on Vistaar (BR3) & the New IRI
Pricing tool
4. Be seen as best-in-class supplier to our NAHQ customers as evidenced by being the highest scoring
supplier on question 1 of the CM profit group survey
– Acute Focus: Win at Walmart with our new structure as evidenced by 25% growth in 2013 and at
least 4 regional activations, listings or other “wins” that would not have happened without Execution
Managers
5. Re-establish our hiring procedure in 2013 – build process of standardized background questions,
behavioral questions, exercises and interview settings to ensure we find the right cultural fit to our
organization.
Page 3
5. What makes a National Account
1. Large
2. Cross-regional (i.e. more than one DVPs region)
3. Account must have medium or highly centralized decision
making process
Page 5
7. Why National Accounts matter
• $225 million in Beam sales
1. Big dollars at-stake • Centralized decision-makers
• ~20% growth (10% ex-Pinnacle, ex-
WA)
1. Growing – have to win in • Committed to winning in this
winning accounts industry
• In the Nielsen data
• Where people shop –
2. Publically visible consumers, but also investors,
management
• Wall Street
Page 7
8. Background: Off-premise National Accounts growing at
8.3% vs. 4.2% for total industry
National Accounts growth significantly
outpacing rest of market Beam’s Growth by Account
CAGR
Account Nielsen 52-Week $ Sales 2-year CAGR
9.5 4.2%
9.1 Target 34,304,710 35.9%
8.8
Walmart 445,164,927 28.5%
3.2 8.3% Total Wine 239,230,698 19.2%
2.9
NAHQ 2.7 Kroger 522,934,234 11.6%
HyVee 135,124,032 9.7%
Meijer 152,174,457 6.9%
CVS 214,753,013 5.6%
Walgreens 192,259,147 4.5%
Sam's 241,662,163 4.2%
6.0 6.2 6.3 Safeway 330,260,950 1.9%
Non-NAHQ 2.3%
Military 212,405,050 0.6%
Rite Aid 214,617,745 0.6%
Supervalu 282,864,116 -1.5%
NAHQ Total 3,217,755,242 8.3%
2010* 2011* 2012*
+2.4 pts in
NAHQ Share past 2 years
of Total 31.4% 32.0% 33.8%
Page 8 $ Billions of Neilsen sales for 52 weeks ending in August of noted year. Excludes WA
9. Growth and Sales by Account
2013 Plan Growth
Target Wal- Total Safeway Wal- Kroger Hy Vee CVS- Military Sam’s Rite Aid
Mart greens Longs Club
$
Sales
7 27 21 25 13 33 11 28 21 13 16
(M)
Page 9
10. WMT, WAG, Target, Total Wine and Kroger will change
spirits retail– are “super-platinum” accounts
Growth Prospects
Low: Under 5% Medium: 5-10% High: Above 10% Why “super-platinum”
• They are large accounts…
High: All
– Target is only exception
(or most)
decisions • ..with massive growth ambitions…
made at HQ – Walmart: “4x bigger in 5
years”
–
Centralized Decision Making
WAG: “Top3 liquor retailer
in next 3 years”
– Target: “5x growth in spirits
in 5 years”
– Total + Kroger both growing
Medium: over 10% annually
Mix of HQ
• …and a proven track record…
and local – Except Total, these are the
decisions dominant retailers in most
CPG categories
• …with strong teams in place…
– Upgrading buyers at most of
these accounts
Low: All (or • …and a relatively easy path to
most) growth via store expansion,
decisions expanded shelf sets and cross-
merchandizing
made
– Retail 101 for them
locally
Page 10
11. The Super-Platinums are coming: They could drive nearly
all industry growth
Conservative view of how the “super-platinum”
accounts see the world evolving Assumptions
$M of Growth in Nielsen: 2012 - 2017 • Walmart: Grow sales 3x over 5 years. This
is below their target of 4-5x growth and the
~85% of growth from annual growth of 25% is below the 29%
“Super-Platinums” growth of the past two years.
334 • Walgreen’s: Grow sales 3x over 5 years.
103 This would put them on target to be the #3
146 spirits retailer per their goal and is below
215 their growth target of 4-5x over the next 5
years
387
• Total: Grow sales 10% annually for 5 years.
This is below recent growth of 20%+ per
year.
• Target: Grow sales 4x over 5-years. This is
below their stated goal of 5x growth and the
annual growth rate of 32% is below last
year’s growth of 45% and the 2-year growth
Walmart WAG Kroger Total Wine Target A/O Total
of 35%ies
Nielsen Nielsen
• Kroger: Grows 7% annually. Les s than
Every “super-platinum” account has a strategic plan in place torecent trends. better than this;
do notably
the growth could be even more slanted if just 1 or 2 accounts delivers its plan
• Assumes total Nielsen grows at 3.5%
annually
Page 11
12. Evolution In Big Customer Focus
Right to
Right to Play Right to Win
Compete
Page 12
13. Big Customer Focus:
Off Premise National Accounts
Prioritization of Accounts
Aligning Organization
“North Stars”
Programming to Win
National Account Manager: Fundamentals
Page 13
14. Prioritization of Accounts: Off Premise
Leading Analytical
N.A. Rigor
Growth
Top 100 MILITARY
= Nielsen
40% Scrutiny
Volume
Food Central
Drug Buying
Mass Decisions
Club
Page 14
15. Alignment of Organization
Cat Management KAMs
Insights & Analysis Local Execution
Shopper Behavior Distributor Interaction
Influence “From National to Local”
LMF
NAHQ EG
Planning
BI
Selling
Programming
Listings
Activation Finance & Revenue
Trade Decision Process Management
Promotional Guidelines Budget Builds
Program Creation Regional Pricing Schemes
Right to
Play
Page 15
16. Right to
Compete
“North Stars”
National Accounts & BGSW Vision Into Action – Our 10 Priorities for 2011
Vision Building Brands People Want To Talk About
To Become The World‟s Fastest Growing Spirits Company
•
Mission
VIA
Financial Objectives $3 Billion in Sales with a 23% Operating Margin in 2013 (“3 & 23 in 13”)
2011 Target : 4% Sales Growth 4% Profit Growth 22% Return on Sales
Winning Competitive Edge Our Culture: Entrepreneurs… Creating Innovative Solutions… Beating The Competition, Together
Better Than Competitors At : Brand Building, Market Activation, Partnership Management
Priority No. 1: Unleash The „Spirit of Beam‟ By Inspiring Deeper Employee Engagement
•
CREATE FAMOUS BRANDS BUILD WINNING MARKETS FUEL OUR GROWTH
Reporting suite Priority 2:
Focus Investment Behind Growing
Our Power Brands And Rising Stars
Priority 3:
Priority 5:
Accelerate Share Growth In North
America
Priority 6:
Priority 8:
Align Our Organization To Be More
Effective & Efficient
Priority 9:
•
Enhance Global Category Leadership Deliver Increased Value Creation In Generate The Next Wave Of Rocket
Nielsen Share Measurement
In Bourbon & Tequila EMEA Fuel From COGs Reduction
Priority 4: Priority 7: Priority 10:
Create Growth Through Innovation & Strengthen Profitable Growth Drive Improved Revenue Realization
Expanded Category Participation Momentum In AsiaPac/S. America (Price, Spend, Mix)
• #2 supplier on dollars $ Sales % Change Beam Bourbon Portfolio vs. Bourbon
Category
rolling 13 wks
• Category +1 – Drive Share 25.0
20.0
15.0
10.0
• Dollars > cases
5.0
0.0
11/13/10 12/11/10 01/08/11 02/05/11 03/05/11 04/02/11 04/30/11 05/28/11 06/25/11 07/23/11 08/20/11 09/17/11 10/15/11 11/12/11 12/10/11 01/07/12
TTL BRBN CATEGORY TTL BRBN BEAM GLB SW
•
BGSW Bourbon Portfilio $ Share of Bourbon Category
Beam/Customer Alignment
rolling 52 wks
36.0
35.5
35.0 35.48 35.57
34.5 34.43 35.14 35.23 35.29 35.34
34.83 34.94 35.05
34.0 34.63
34.44
•
33.5 33.83 34.02 34.24
Zero based budget
33.0 33.83
32.5 33.38
32.0 32.88
31.5
11/13/10 12/11/10 01/08/11 02/05/11 03/05/11 04/02/11 04/30/11 05/28/11 06/25/11 07/23/11 08/20/11 09/17/11 10/15/11 11/12/11 12/10/11 01/07/12
•
TTL BRBN BEAM GLB SW 2010 $ Share 2011 Goal
Funded first
Page 16
17. Programming to Win
• Brand planning & timing
• Application of Insights
• Retail theatre
• Presentation theatre
• Shopper insights
Right to
Win
Page 17
18. National Account Manager Fundamentals
FRESH INNOVATION
Presentation
• Top To Top
• Internal Performance Review Lemons, Coconuts,
– QBR
Raspberry, Blackberry
– Monthly Heat Call Spices, Honey,
Tangerine, Cucumber
Right to
– Hub Meetings 2
Win
• Core Competencies and Functional Skills
– Shopper insight calls
– Distillery visits
– Cross functional R &D
– Brand experts: Gold accreditation BEAM GLOBAL Millennials
July 2011
ENVIROSELL
October 2010 BEAM GLOBAL ENVIROSELL 7
Page 18
19. Big Customer Focus:
On Premise National Accounts
Alignment of Organization
Exposure, Trial & Adoption Model
Prioritization of Accounts
“North Stars”
Programming to Win
National Account Manager – Fundamentals
Page 19
20. Alignment of Organization: On Premise
• Complete support from top of the business unit
• Field alignment against accounts
• NAM/KAM/Cat Man/Activation Center
• Rare instances of National Marketing applying
• Account “Plan on Page”: Top 5 goals, landscape, strategy
• Program incubation – Agencies heavily involved
• Innovation Listing
• Innovation prioritization
• Vistaar & Regional coordination of pricing
Right to
Play
Page 20
21. Exposure, Trial & Adoption: On Premise
• Brand Building Opportunities
• Liquid to Lips: One Drink at a Time
• Applying science & measures
• On Premise Experiences Drive Off premise purchases
(Mintel Study)
• Gain buy in from marketers
• Strive for true partnership with accounts
• Defining areas to win
Page 21
22. Exposure, Trial & Adoption: On Premise
Social Media Overview
•Twitter
•Strong social chatter throughout the day, with Red Robin being cited Right to
as a “trending topic” on Twitter (meaning our brand was among the
top 10 discussed topics within the Twitter community) on the Play
morning of 12/6/11.
•293 tweets using the #RR JimDay hash tag (this does not all other
mentions about Jim Day – obviously we received quite a bit more
since we were trending)
•Facebook
Final Event RSVPs: 9,809 Going, 1,418 Maybe, 9,045
Invited (these figures are all due to WOM – from people
forwarding / receiving the invite.)
6,500 new Facebook fans (typically week is approx 1K)
851% increase in people talking about Red Robin on
Facebook
520,674 people reached from 11/30-12/6/11
•Website
251,599 site visitors to RedRobin.com
74% increase in site traffic from previous week
24,083 unique clicks from RedRobin.com FFE to RSVP
Red Robin Business Results
• 32.1% increase in comp guest counts (41,000 total
guests) on 12/6/11
• Jim Day Free Burger Guest Mix was 13.4%
• Jim Beam Burger (Full Price) Guest Mix was 3.8%
(about 1% higher than trend)
Page 22