DRINKWARE BUSINESS PLAN

DRINKWARE
BUSINESS PLAN
www.luminarc.us
Casual Glass Drinkware Market Share
• 46.6% share of U.S. retail
casual glassware market
5/28/2014
Glass Drinkware Market Share
www.luminarc.us
Retail Sales in Glass Drinkware in Millions
$620.0
$595.8
$600.0
$584.2
$580.0
$561.7
$560.0
$560.1
$553.4
$540.0
$520.0
$518.1
$507.7
$500.0
$480.0
$460.0
2007
5/28/2014
2008
2009
2010
2011
2012
2013
HOUSEWARESCENSUS2014
HomeWord Business®
Glass Drinkware Market Potential
www.luminarc.us
4%
Extremely likely to purchase
7%
Very likely to purchase
Somewhat likely to
purchase
16%
52%
Not very likely to purchase
21%
Not at all likely to purchase
7%
Tumblers
Coffee/Tea
Wine/Champagne
Stems
Stemless Wine
Martini/Specialty
Cocktail
5/28/2014
somewhat willing
7%
11%
very willing
38%
13%
extremely willing
32%
57%
35%
HOMEWORLDFORECAST2014
HomeWord Business®
www.luminarc.us
Glass Drinkware Market Potential
7%
Casual
Formal
93%
5% 4%
Discount Store
Price
31%
27%
Home Specialty Store
Off-Price/Closeout Store
Retail Sale Circulars
Warehouse Club
21%
was chosen
58.2%
6%
Department Store
Quality/Performance
In-store Elements
6%
21%
Super Market
7%
52%
9%
11%
TV/Internet/Catalogs
5/28/2014
Gourmet Store
HOMEWORLDFORECAST2013
HomeWord Business®
Consumer Behavior
www.luminarc.us
Glass Drinkware Sales by Retail Channel
2008
65% 65%
63%
63%
17%
Discount Stores
5/28/2014
16% 16%
15%
Department
Stores
2009
12%
2010
12%
11%11%
Specialty Stores
2011
4% 5% 6% 6%
4% 3% 3% 3%
Others
Catalogs
HOUSEWARESCENSUS2012
HomeWord Business®
www.luminarc.us
Glass Drinkware Market Potential
2%
3%
Price
Quality/Performance
3% 5%
Walmart
23%
Target
41%
Kmart
Dollar General
Style/Color
33%
56%
Other
34%
Brand
7%
Tumblers
Sets
8%
27%
Coffee/Tea
Individual Pieces
12%
73%
38%
Wine/Campagne
Stem
Martini/Specialty
Cocktail
35%
Stemless Wine
5/28/2014
HOUSEWARESCENSUS2012
HomeWord Business®
Glass Drinkware Market Potential
www.luminarc.us
Martini/Specialty Cocktail
Stemless
Wine/Champagne Stem
$30
$20-$29.99
$15-$19.99
$10-$14.99
$5-$9.99
Less than $5
Coffee/Tea
Tumblers
0.0%
5/28/2014
10.0%
20.0%
30.0%
40.0%
HOMEWORLDFORECAST2013
HomeWord Business®
Market / Category Assessment
www.luminarc.us
Market Size – 2011/2012YTD (HomeWorld 2012)
Criteria
Casual Drinkware USA
Market Sales ($m)
2012 YTD
Market Sales 11
Actual
Market Sales
Last 5 Yrs
Change
Market Sales
Projected 2012
Total
$387M Est.
$584.2M
11% Total
Growth/3% average
year
$601M Est.
Top suppliers in category
#1=Libbey
#2=Anchor
#3=Luigi Bormioli
#4=Arc International
Approx. $ Sales for 2012 Annual
$138M Est.
$81M Est.
$43M Est.
$37M Est.
Actual 2011
$137M Est.
$80M Est.
$42M Est.
$31M
Key COE’s, learnings or discoveries from the assessment you just did:
1. Category Growing the last few years after the 2008 economic crisis
2. Libbey Is continuing to maintain their status as the supply leader
3. Arc International has double digit growth in this category due to increased focus and long-term strategic plan to recapture market share in North America
4. Discount Channel is continuing to thrive and take market share
5. Retailers are focusing more and more on Made in USA items. Imports are becoming less attractive due to the dollar parity, increased freight rates and decrease of
competitiveness
www.luminarc.us
Market / Category Assessment
Key Consumer Insights (Housewares 2013 Forecasting Trend Report):
•
•
•
•
•
•
•
•
Value plays the most important role when purchasing glassware
Quality is important to the customer
Packaging and in-store signage plays an important role in purchasing glassware.
Brand has very little impact to the consumer
Shape and color are somewhat important.
Made in USA becoming increasingly more important. Consumers are ready to choose
made in USA product vs. product made outside USA (imported) as long as the price is
similar.
Decorated product is growing, especially organic ink usage that is environmentally
friendly. Although it represents a small portion of the market.
Consumers are becoming more aware of Sustainability and value purchasing products
from responsible companies.
Category Trends
www.luminarc.us
Trend Name
Entertaining at Home
Functionality and Quality
Trends
Made in America
Sustainability and/or green
efforts
Description Example
Implication
Consumers are seeking more
entertaining sets, Such as Serving
sets, Wine sets; Beer Sets and other
glassware that make entertaining at
home fun
Increased set sales. Sets that are fun with
color and personalization Examples; Wine
party packs and hot drink sets
Consumers are seeking more
functionality and quality in their
drinkware
More customers going to specialty shops to
seek out glassware that has extra value. Ex:
Stackable, silicone décor, laser cuts and
double wall glassware.
More Consumers and Buyers are
seeking out vendors that make
products in the USA
Better quality, job placement and improved
logistics and service levels. Consumer “Feel
Good” Purchase
Companies and Consumers are
focusing more on Green Efforts
Buyers and consumers are looking to buy from
suppliers that are keeping up with the
environmental movement
Home Category Profile: Glassware
www.luminarc.us
Observation / Improvement
Opportunities
Retailer
Walmart
Target
•
•
•
•
•
Strength:
#1 Top Housewares Retailer
Price Point Leader
Regional Offerings
Variety of Mixed Beverage Sets
•
•
•
•
•
•
•
•
•
Weakness:
Open Stock/No Dollar Program
Best Brand Offering
Housekeeping
Unclear good/better/best strategy
•
•
•
Strength:
Premium Brand Offering
Licensed Product
Clarity of Product
Offering/Display/Merchandising
Weakness:
Weak Variety of Brand Offering
Price Points
# of
Skus
Space /
Footage
allotted
28
12-18ft
List of Brands
Anchor
Libbey
Mainstay
30
12ft
Riedel
Libbey
Home Category Profile: Glassware
www.luminarc.us
Observation / Improvement
Opportunities
Retailer
Kohl’s
Bed Bath &
Beyond
•
•
•
Strength:
Strong Brand Recognition through licenses
Strong Everyday Discount Sales Strategy
•
•
•
Weakness:
Lack of National Brands
No Everyday Low Price
•
•
•
•
•
•
•
•
Strength:
Large Product Offering
Very clear good/better/best strategy
Clear Display/Merchandising
Wide Variety of Brands
Weakness:
Open Stock
Limited offering of Mixed beverage
# of
Skus
Space /
Footage
allotted
34
12ft
List of Brands
Bobby Flay
Food Network
Sonoma
78
12-18ft
Luigi Bormioli
Riedel
Libbey
Anchor
Luminarc
www.luminarc.us
Retailer
Kmart
Home Category Profile: Glassware
Observation / Improvement
Opportunities
• Strength:
• 4pc set offering
• Brand Recognition through license
# of
Skus
Space /
Footage
allotted
29
8-10ft
• Strength:
• Mixed Beverage Set Offering
• Entertainment Sets
• Everyday low price/New Strategy
• Weakness:
• Overall Selection of Brands
• No Open Stock Selection
• Value Mixed Beverage Sets
Sandra Lee
Libbey/Crisa
• Weakness:
• Selection of Brands
• Mixed Beverage sets and price points
• “Unfriendly” environment
JCPenney
List of Brands
Essential Home
31
12ft
Libbey
JC Penny Home
Collection
www.luminarc.us
Retailer
Macy’s
Home Category Profile: Glassware
Observation / Improvement Opportunities
• Strength:
• Brand recognition
• Selection of 4pk Drinkware
• Entertainment Sets
# of
Skus
Space /
Footage
allotted
52
24ft
• Strength:
• Open Stock
• Premium Product (Sheer Rim)
• Variety of Skus
• Weakness:
• No Boxed Set assortment
• Too many choices/lack of focus
• High Price Points
Cellar
Martha Stewart
Crystal D’Arques
• Weakness:
• Overall Selection of Brands
• No Open Stock Selection
Crate & Barrel
List of Brands
158
28ft
Krosnos
Rona
Dansk
Bohemia
www.luminarc.us
Retailer
Pottery Barn
Home Category Profile: Glassware
Observation / Improvement
Opportunities
• Strength:
• Open Stock
• Premium Products
• Specialty Barware Assortment
# of
Skus
Space /
Footage
allotted
39
12ft
• Strength:
• Open Stock
• Premium Products
• Weakness:
• Mixed Beverage Sets
• Price Point
Schott Zweisel
Casa
PB Classic
• Weakness:
• Assortment of Boxed Sets
• Lack of national brands
• Assortment of Skus
• Price Points
• Not in top 100 Retailers
Williams Sonoma
List of Brands
Caterer's Box
35
16ft
Riedel
Schott Zweisel
Dorset
Duraclear
www.luminarc.us
Retailer
Deals
Home Category Profile: Glassware
Observation / Improvement
Opportunities
• Strength:
• Price Points
• Open Stock
• Growing Segment
# of
Skus
Space /
Footage
allotted
49
12ft
• Strength:
• Price Points
• Growing Segment
• Weakness:
• Very Little Skus available for the
Drinkware category
Libbey
Coke
Made In China
• Weakness:
• Mixed Beverage Sets
• Quality Products (made in China)
Family Dollar
List of Brands
3
4ft
Libbey
Anchor
Percent of Unit Quantity
www.luminarc.us
October 2012 Store Check
2 pc Set
BBB
Target
4%
15%
3 pc Set
4 pc Sets
Kohl’s
Kmart
Deals
Family
Dollar
WM
WM
Spring ‘13 Recommendation
67%
37%
Reinforce/bolster 4pc set offering.
Should have a complete
expanded suite at 9.99
7%
4%
64%
48%
79%
5 pc Set
6 pc Sets
JCP
26%
38%
4%
6%
17%
7 pc Set
Continue to carry 5-8 pc
Entertaining Sets
19%
8 pc Sets
14%
10 pc Set
2%
19%
12 pc Sets
4%
13+ pc
Sets
9%
Open
Stock
13%
26%
11%
21%
7%
15%
17%
2%
14%
96%
33%
11%
Expand 12pc party pack to include
red wine and possibly stemmed
ice beverage
30%
Continue same amount of mixed
beverage set offering…consider
new offerings
22%
More Dollar /Open Stock
Percent of Unit Quantity
www.luminarc.us
October 2012 Store Check
William
Sonoma
2 pc Set
14%
3 pc Sets
6%
Pottery Barn
Crate N Barrel
See previous Slide for
recommendations
4 pc Sets
5 pc Sets
6 pc Sets
1%
26%
1%
7 pc Set
1%
12 pc Sets
5%
13+ pc
Sets
Open
Stock
54%
WM
Spring ‘13 Recommendation
95%
98%
Open Stock vs. Packaged Sets
www.luminarc.us
October 2012 Store Check
Drinkware Open Stock vs. Packaged Sets
Overall Open Stock
vs. Sets
87
48% 52%
Open Stock
Boxed Sets
40
34
32
27
24
17
3
5
2
Open Stock
Mass Markets
5/28/2014
Off-Price
Packages Sets
Department
National
Specialty
Mass Markets: WalMart, Target, & Kmart
Off-Price: Deals &
Family Dollar
Departments:
Macy’s
National: JC Penney
& Kohl’s
Specialty: BB&B,
Crate & Barrel,
Pottery Barn &
William Sonoma
Percent of Assortment
www.luminarc.us
October 2012 Store Check
BBB
Target
Kohl’s
Macys
JCP
Kmart
Deals
FD*
WS*
PB*
CB*
WM
Glass
74%
100%
100%
79%
100%
100%
100%
100%
100%
100%
96%
100%
Tritan/Kostr
ate/Sparx
26%
0%
0%
21%
0%
0%
0%
0%
0%
0%
4%
0%
Everyday
33%
50%
85%
38%
45%
84%
71%
100%
37%
45%
32%
57%
Barware
58%
40%
15%
55%
45%
8%
27%
0%
63%
55%
68%
29%
Pitcher
8%
10%
0%
8%
0%
8%
2%
0%
0%
0%
0%
11%
Beverage
Dispenser
1%
0%
0%
0%
10%
0%
0%
0%
0%
0%
0%
4%
Clear
95%
97%
68%
93%
100%
97%
86%
100%
100%
100%
94%
96%
Tint
3%
3%
32%
7%
0%
3%
10%
0%
0%
0%
4%
4%
Decorated
(print)
2%
0%
0%
0%
0%
0%
4%
0%
0%
0%
2%
0%
WM
Spring ‘13
Suggestion
Material
Consider
exploring break
resistance at a
value
Use
Color
This category
continues to
perform
Percent of Assortment
www.luminarc.us
October 2012 Store Check
BBB
Target
Macys
Kohl’s
JCP
Kmart
Deals
FD*
WS*
PB*
C&B
WM
Cooler
(13oz+)
18%
29%
23%
43%
31%
48%
50%
75%
9%
10%
14%
36%
Juice
1%
3%
2%
0%
10%
3%
4%
0%
0%
5%
3%
0%
DOF(12oz+)
14%
24%
22%
30%
15%
30%
2%
25%
6%
10%
14%
26%
Goblet
5%
3%
3%
3%
3%
6%
14%
0%
3%
10%
2%
3%
Spring ‘13
Suggestion
Size/Style
Coffee
Add Juice
4%
6%
0%
0%
3%
0%
4%
0%
0%
0%
0%
6%
Look out for hot
drink as this is
an expanding
category
9%
3%
7%
0%
8%
0%
10%
0%
9%
5%
8%
6%
conservatively
expand beer
offering
Beer
Percent of Assortment
www.luminarc.us
October 2012 Store Check
BBB
Target
Macys
Kohl’s
JCP
Kmart
Deals
FD*
WS*
PB*
C&B
WM
9%
6%
8%
5%
3%
3%
2%
0%
17%
13%
7%
6%
Red Wine
10%
6%
8%
5%
0%
3%
0%
0%
14%
13%
9%
6%
A/P Wine
4%
0%
3%
0%
5%
0%
4%
0%
0%
0%
13%
3%
Stemless
wine
4%
9%
5%
5%
5%
0%
2%
0%
14%
5%
1%
6%
Flute
6%
6%
3%
0%
0%
0%
2%
0%
11%
10%
8%
3%
Martini
6%
3%
3%
0%
5%
0%
4%
0%
6%
3%
3%
0%
Margarita
1%
0%
2%
0%
5%
0%
2%
0%
0%
3%
2%
0%
0%
2%
0%
0%
0%
0%
0%
0%
0%
2%
0%
Spring ‘13
Suggestion
Size/Style
White Wine
Rocks (912oz)
No Need
Highball
(10-13oz
Tall)
Misc.
(Cordial,
Brandy, SL
Flute,
Cocktail)
5/28/2014
Complete unified 4
pack suite offering at a
9.99 price point
9%
0%
2%
10%
3%
6%
0%
0%
0%
0%
1%
0%
3%
7%
0%
5%
0%
0%
0%
11%
13%
13%
1%
www.luminarc.us
Percent of Assortment by Brand
Rocco Bormioli
5%
Pasabahce
7%
Luminarc
13%
Luigi Bormioli
5%
Anchor
19%
5/28/2014
Libbey
51%
www.luminarc.us
Key Observations:
Percent of Assortment
October 2012 Store Check
Wal-Mart is under penetrated in:
1. A unified and comprehensive 4pk solution at a 9.99 price point
2. Open Stock Items/Dollar Items
3. Juice items
4. Best Stemware and Tumblers
5. Decorated/ License
Over penetrated in:
1. Clear Everyday Drinkware Sets
2. Private Label Brands
List how your company can fill any of the voids identified here or list any suggestions
for improvement.
1. Provide a unified and comprehensive 4pk solution at 9.99 price point
2. Provide open Stock and/or Dollar programs
3. Provide more Seasonal Programs
4. Decorated/License
Market Assessment: Glassware
www.luminarc.us
October 2012 Store Check
Modular Footage
Overview
BBB
Target
Kohl’s
JCP
Kmart
Deals
Family
Dollar
WM
WM
Spring ‘13
Recommendation
Most Common
Footage
24ft
12ft
12ft
12ft
12ft
12ft
4ft
16ft
Wal-Mart is
utilizing the
minimum
space to be
effective.
Most Common
Ft Store Count
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Smallest
Footages
20ft
8ft.
8ft.
8ft
8ft.
8ft
4ft
12ft
Largest
Footages
28ft
16ft.
16ft
16ft
16ft.
16ft.
4ft.
20ft
* Modular footage overview is estimated.
www.luminarc.us
Luminarc Branding
DRINK.
•
•
•
Made in: USA,
China & France.
Type of Product: Casual
New Products: Aurora, Flashy cups, Bola,
Vintage, Cachet Stemless 13 oz. Red Wine &
Stemless 9 oz. Flute.
.
and more
5/28/2014
Libbey Branding
www.luminarc.us
•
•
•
Made in: USA, China, &
Netherlands.
Type of Product: Casual
2013 New Products: Coke Curve
Tumbler, Stemless 16.75 oz.
White Wine, Yucatang Margarita,
Classic Sangaria, Impressions
Goblet, COOL Cocktails, and
much more.
.
and more
5/28/2014
www.luminarc.us
•
•
•
Made in: USA
Type of Product: Casual
2012 New Products: Swish
11.5 oz. small Tumbler, Rain 12
oz. & 16 oz. Tumbler, Domino
16 oz. Tumbler, Portico 16 oz.
Tumbler, Argyle 16 oz. Tumbler,
Summit 16 oz. Tumbler, Vienna
Anchor Hocking Branding
.
and more
5/28/2014
www.luminarc.us
•
•
•
Pasabahce Branding
Made in: Turkey
Type of Product: Casual
New Products:
.
5/28/2014
www.luminarc.us
•
•
•
Luigi Bormioli Branding
Made in: Italy
Type of Product:
Casual/Formal
New Products:
.
5/28/2014
www.luminarc.us
•
•
•
Made in: Italy
Type of Product:
Casual/Formal
New Products: Arena, Easy
Bar, Nadia, Riserva, Rock Bar,
and Party.
Rocco Bormioli Branding
.
Online
5/28/2014
DRINK Trends
www.luminarc.us
• Colors
Pasabahce
Anchor Hocking
Anchor Hocking
Mikasa
Libbey
5/28/2014
Libbey
www.luminarc.us
• On-the-Go Drinkware
– Very popular for Plastic
Sagaform
5/28/2014
DRINK Trends
DRINK Trends
www.luminarc.us
• Tea/Coffee Mugs
Pasabahce
5/28/2014
Libbey
Anchor Hocking
DRINK Trends
www.luminarc.us
• Double-Wall Glass
Luigi Bormioli
5/28/2014
Bodum
Fred & Friends
www.luminarc.us
• Stackable
iittala
5/28/2014
Pasabahce
www.luminarc.us
DRINK Trends
• Bar Mixing Sets
Vacu Vin
5/28/2014
Libbey
DRINK Trends
www.luminarc.us
• Entertainment Sets
Libbey
5/28/2014
DRINK Trends
www.luminarc.us
• Diverse Patterns
Sagaform
Artel
5/28/2014
Simon Pearce