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SKIPPY® and Family Mart collaborate for a tasty partnership

SKIPPY® peanut butter and Family Mart come together in Taiwan for a ground-breaking sales performance.

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Business Units

Consumer Goods

Business Lines

Fast Moving Consumer Goods

Services

After-sales services, Distribution and logistics, Marketing and sales, Research and analysis, Sourcing

Markets

Taiwan

SKIPPY®, a global peanut butter brand from Hormel Foods, has been a DKSH client since 2013. DKSH provides comprehensive marketing, sales and field marketing services to build the SKIPPY® brand. Family Mart, the second largest convenience retail chain store in Taiwan with over 3,000 stores, has been DKSH’s customer since 2013. They are an important distribution channel for many products that DKSH carries including SKIPPY® peanut butter.

Skippy products

Challenge

SKIPPY® peanut butter has achieved steady sales performance under their partnership with DKSH. However, the DKSH team was convinced that the brand had not yet reached its full potential. Hence, the team constantly explored opportunities to further accelerate the brand’s growth and presence in Taiwan.

A customer of DKSH, Family Mart, is continuously looking for market growth. They do so by partnering with famous, good quality brands to develop new products to attract young consumers.

Approach

DKSH proposed the idea of a co-branding opportunity between SKIPPY® peanut butter and Family Mart by harnessing both businesses’ strengths. Hormel Foods allowed Family Mart to use SKIPPY® peanut butter as one of the main ingredients in their newly developed line of sandwiches and desserts, as well as have the SKIPPY® logo on the product packaging and point-of-sale materials. DKSH also worked together with both parties to develop the product packaging and marketing materials design.

DKSH conducted workshops at Family Mart’s fall-winter trade show to educate store managers on the unique selling points of these newly developed products so they knew how to promote the products in their stores. DKSH also negotiated for a good ratio of shelf space for better product display positioning.

Result

The project generated remarkable sales within the first month of the launch of the SKIPPY®-Family Mart co-branded products. It also gained media attention because this was the SKIPPY® brand's first partnership with a convenience store in Taiwan.

Family Mart’s bundle promotion scheme (which gave a 20 percent discount on SKIPPY® peanut butter spread with purchase of a SKIPPY® peanut butter sandwich or dessert) also helped boost sales. As a result, the SKIPPY® brand's sales performance grew 27 percent year-on-year.

With this successful experience, Hormel Foods is now developing more SKIPPY® branded food products such as ice-cream and pancakes with Family Mart.

We were impressed by DKSH’s innovative thinking. Partnering with DKSH enabled the SKIPPY® brand to generate even more sales and expand our brand footprint through a new partnership with convenience retail chain stores.

Michael De Villa, Country Manager Philippines & Asia Pacific, Hormel Foods International

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