USSTB Product Freshness Consistent Ordering Target

USSTB Product Freshness
Consistent Ordering Target
Adult Copenhagen and Skoal
Dippers are more likely to check the
date code before purchasing a can of
dip
Adult Consumer Response to
Out-of-Stocks
Q4 2009 USSTB MST Return Rate
for Accounts that Pass or Fail
Consistent Ordering
91%
7.1%
77%
57%
59%
2.6%
41%
Copenhagen
Skoal
Other
MST
Copenhagen
Consumers will Consumers will
leave the store leave the stores
Pass
Fail
Consistent Ordering Target (“COT”)
Beginning with Q3 2010, any Retailer that orders consistently for 12 out of 13 weeks during the
quarter, will not be subject to the USSTB Retail Returned Goods Cap for the following quarter. The
specific requirements are described below.
COT Requirements
A retail store will have met the COT if for 12 out of 13 STARS Weeks, during the corresponding
STARS Quarter, they purchase the greater of the following:
• At least 50% of the quantity of all USSTB MST purchased during the immediately preceding
STARS Week, as reported in STARS, or one 5-can roll of any USSTB MST SKU.
Initial Timeline
i.e. Retailers that
meet the COT for Q3
2010 will not be
subject to the Retail
Returned Goods Cap
for the Q4 2010
Retail Returned
Goods Authorization
Period.
Please note: As described in the USSTB Retail MST Returned Goods Policy, purchases of USSTB Promotional Products or new USSTB SKUs
during the introductory period will not be considered for purposes of calculating or meeting the COT.
During November, your ALS&D representative will advise you if you have
earned this benefit for Q4 2010.
*Sources: ALCS MICR estimates ; Note: Smokeless is defined as moist smokeless
tobacco and spit-less tobacco products
** Sources: ALCS Understanding the Retail Experience. September 2009.
ALCS Tobacco Retail Experience Study. October 2008.
USSTB Shelf Life Guide
Designate a store employee as the MST Category Captain to rotate USSTB MST
products - First in First Out
Identifying Out-of-Date (OOD) Product
• Utilize the Shelf Life Guide below to assess all USSTB MST products for freshness
1. Find the SKU within the correct Shelf Life Group
2. In the first column, find the Monday date of the current week
3. Follow the row across to the correct Shelf Life Group. Can is OOD with a Shelf Life Code equal to or earlier than the code in the Shelf Life Group column
• Place OOD USSTB products in ALS&D-supplied returned goods box
• Adjust inventory system for pulled OOD product quantities
Shelf Life Group
Monday
date of
current
week
Copenhagen FC
Natural
Cope LC
Smooth Hickory
Copenhagen LC
Natural
Cope LC
Straight
Red Seal LC Natural
Copenhagen
Pouches
Cope LC
Whiskey
Husky LC Natural
4 Weeks
6 Weeks
Red Seal FC Natural
Husky FC Natural
8 Weeks
Skoal Key
Skoal Slim Can
Wintergreen
Pouches
Skoal Slim Can
Mint Pouches
Skoal Slim
Can Straight
Pouches
12 Weeks
Skoal Edge Wintergreen
Red Seal FC Wintergreen
Red Seal LC Wintergreen
Red Seal LC Mint
Red Seal LS Straight
Husky LC Wintergreen
Husky LC Mint
Husky FC Wintergreen
Husky LC Straight
All Others are
“Guaranteed
Fresh Until”
or “Sell By
Dating”
Less Than
Current Date
20 Weeks
4/05/2010
4/12/2010
4/19/2010
4/26/2010
5/03/2010
5/10/2010
5/17/2010
5/24/2010
5/31/2010
6/07/2010
6/14/2010
6/21/2010
6/28/2010
7/05/2010
7/12/2010
7/19/2010
7/26/2010
8/02/2010
8/09/2010
8/16/2010
8/30/2010
9/06/2010
9/13/2010
UPC
9/20/2010
9/27/2010
10/04/2010
10/11/2010
10/18/2010
10/25/2010
11/1/2010
11/8/2010
11/15/2010
11/22/2010
11/29/2010
12/6/2010
12/13/2010
12/20/2010
12/27/2010
Servicing:
Philip Morris USA
U.S. Smokeless Tobacco Company
John Middleton
MB653 © 2010 U.S. Smokeless Tobacco Brands Inc.
8/23/2010