Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Nicole Miller - Piper Jaffray.
Nicole Miller - Piper Jaffray
Tom, you talked about coffee inflation. What are you thinking, I know you use much less dairy, but what are you looking at for inflation there next year?
Thomas P. Cawley
In dairy?
Nicole Miller - Piper Jaffray
Yes.
Thomas P. Cawley
I really don’t have really good visibility to dairy for next year to be honest. We are the coffee experts, not necessarily the milk experts, and we rely on our partners for that, so I don’t even have an outlook that I could share with you.
Nicole Miller - Piper Jaffray
Okay, totally understandable. Just a big picture question for either one of you. How should we think about as you are going to be selling more SKUs for grocery, how do you want us to look at the comp? I use that term lately but I’m saying in my mind I’m looking at? you’re probably in a stable amount of doors, so right now the increase in grocery really does reflect what would be a comp selling more pounds of whole bean coffee, and as you have these license agreements, and I think you’re talking about going down the road of pushing other things through the DSD channel, how are we going to be able to parse out like comps and SKUs today versus more SKUs tomorrow and how will the price points compare too? So could you sell more units? I’m trying to think about if it will be a higher price or a lower price items so that maybe even units could outpace revenues?
Patrick J. O’Dea
Nicole, let me take an initial short shot, then Tom, if you have something you want to add here. The best way to gauge how well we’re doing and what will be our gauge and we’ll share it with you is share results. Obviously that comes from syndicated data, either IRI or Nielsen. We use IRI, which breakout by brand what’s happening in terms of your sales growth through the front register of grocery stores and you can also get from that percent ATV distribution, how much has changed, velocity per point of distribution, and all of those sort of metrics. But there’s not a ?comp store? equivalent. That’s the metric that we use to gauge our performance.
Thomas P. Cawley
- To read the full transcript on Seeking Alpha, click here »
