CASE STUDIES

PANDA ALL NATURAL LICORICE

The Natural Foods Industry has enjoyed continuous sales growth for the last several decades. Based on a shifting consumer demographic (increased public interest in health, dietary issues, and the environment), Specialty Foods Management Group specifically developed Panda brand initiatives to continue to leverage the steady growth from this class of trade.

Today, the successful execution of these initiatives has put Panda Licorice at a 99% distribution level in stores that sell natural food products. Furthermore, Panda Licorice is sold in all fifty states and via the internet.

The Panda brand has a long and rich history. In 1920 the Panda factory first began manufacturing in the cramped upstairs premises of a berry processing plant. In 1933 the company began production and in 1936 the first licorice drop appeared in shops.

The end of chocolate rationing after WWII marked the beginning of a busy time for the Panda factory. In 1952 its graphic designer drew a chocolate bar wrapping featuring a Panda bear. The name of the chocolate bar was Panda Pop. This created the inspiration for re-naming the factory.

In 1963 the Panda Factory began exporting sweets. The first export product was a licorice roll exported to the U.S. market. Since then Panda has sold a multitude of products to the US market.

An annual promotional calendar was devised to be used through a network of sales brokers that specialized in sales to natural food stores. Specialty Food Management Group knew that to sell into the distributor is not enough to generate distribution and on-going sales growth. Therefore, trade programs were designed to help push the merchandise out to the individual retail store and to the chain retail stores.

Today, Panda All Natural Licorice is the leading premium quality; premium priced all natural confection, with a strong US brand equity and a fanatically loyal consumer following.

GROWING THE SALES OF IMPORTED PRESERVES

In the Specialty Food & Natural Food Distribution Channels

A popular import brand of all natural preserves made the decision to form a self-sustaining corporation in the U.S. in an effort to more aggressively build its business in the U.S. market. The vision was to become the premium import preserve in the market.

After the current importer's contract was cancelled, this preserve manufacturer struck up a strategic alliance with Specialty Food Management Group (SFMG). The purpose of this partnership was to use SFMG's market expertise, established trade relationships, and current distribution network to ensure that no shelf position or points of distribution were lost during the transition.

SFMG's role was to coordinate the go-to-market strategy and manage the sales of the business, as the manufacturer took over the additional role of importer. The manufacturer handled the product importation and chose not to appoint another third party importer.

In its new role, Specialty Food Management Group coordinated a group of about six to seven smaller / independent distributors that were specifically selected to develop direct container programs. This tactic would efficiently and effectively handle the Specialty Food Trade in key markets.

In areas where full container business could not be possible, specialty food management Group was utilized to coordinate and broker the business through the secondary distributors and direct retail customers.

This manufacturer relied on Specialty Food Management Group's established trade relationships, distribution system, and operational expertise to ensure an early success of their vision.

Additionally, SFMG operated as a sales and distribution company for the product range for the natural food channel, thus giving the manufacturer time to concentrate on the core lines, as well as developing and funding new products (sugar free and organic) and new distribution channels.

In an expanded role, SFMG inventoried the branded preserves and the manufacturer's other product lines. SFMG made these products available for shipment out of their warehouse locations. Products were combined with SFMG products in order to benefit from consolidated shipments to customers.

Further, SFMG supplied full budgets, forecasts, targets, and objectives necessary to plan the natural food business going forward. SFMG set up a natural foods broker network, developed products, pack sizes, promotions, and pricing strategies specifically targeting this class of trade.

Today, this brand of import preserves has full distribution in the major natural food chains, as well as in the smaller independents, while enjoying a 52 point ACV in the Specialty/Grocery channel (Source: IRI).