Latest / Omni Talk Retail / Schnucks Bets Big on Local Brands — But Will It Work?

Transcript

Schnucks Bets Big on Local Brands — But Will It Work? · Omni Talk Retail

• 0:00
  We're
• 0:00
  going
• 0:00
  to
• 0:00
  talk
• 0:00
  about
• 0:00
  Schnooks
• 0:01
  once
• 0:01
  more.
• 0:02
  Schnooks
• 0:02
  plans
• 0:03
  to
• 0:03
  test
• 0:03
  local
• 0:04
  products
• 0:05
  via
• 0:05
  an
• 0:05
  incubator,
• 0:06
  according
• 0:06
  to
• 0:06
  Grocery
• 0:07
  Dive.
• 0:07
  A
• 0:07
  year
• 0:07
  after
• 0:08
  launching
• 0:08
  its
• 0:08
  business
• 0:09
  accelerator
• 0:09
  program,
• 0:10
  Chinook
• 0:10
  Markets
• 0:11
  announced
• 0:12
  Tuesday
• 0:12
  it
• 0:12
  will
• 0:13
  introduce
• 0:13
  products
• 0:13
  from
• 0:13
  the
• 0:14
  program's
• 0:14
  first
• 0:15
  cohort
• 0:15
  of
• 0:16
  local
• 0:16
  businesses
• 0:16
  in
• 0:17
  15
• 0:17
  of
• 0:18
  its
• 0:18
  St.
• 0:18
  Louis
• 0:19
  area
• 0:19
  stores.
• 0:20
  The
• 0:20
  program,
• 0:20
  called
• 0:21
  Snooks
• 0:21
  Springboard,
• 0:22
  provides
• 0:23
  local,
• 0:23
  diverse
• 0:23
  owned
• 0:24
  businesses
• 0:24
  with
• 0:24
  education,
• 0:25
  resources
• 0:26
  and
• 0:27
  access
• 0:27
  to
• 0:27
  the
• 0:27
  grocery
• 0:28
  company's
• 0:28
  existing
• 0:29
  customer
• 0:29
  base.
• 0:30
  Starting
• 0:31
  Wednesday,
• 0:32
  11
• 0:32
  Miss.
• 0:33
  11
• 0:34
  Missouri
• 0:35
  and
• 0:35
  four
• 0:36
  Illinois
• 0:37
  stores
• 0:37
  will
• 0:37
  offer
• 0:37
  the
• 0:38
  company's
• 0:38
  products
• 0:39
  in
• 0:39
  a
• 0:40
  four
• 0:40
  week
• 0:40
  trial
• 0:41
  to
• 0:41
  help
• 0:41
  introduce
• 0:42
  the
• 0:42
  new
• 0:42
  goods
• 0:42
  to
• 0:43
  to
• 0:43
  their
• 0:43
  shoppers.
• 0:44
  The
• 0:44
  grocery
• 0:44
  has
• 0:45
  also
• 0:45
  reportedly
• 0:46
  scheduled
• 0:46
  sampling
• 0:46
  events
• 0:47
  for
• 0:47
  the
• 0:47
  first
• 0:47
  weekend
• 0:48
  in
• 0:48
  May.
• 0:48
  That's
• 0:48
  this
• 0:49
  weekend,
• 0:49
  people.
• 0:50
  Head
• 0:50
  out
• 0:51
  to
• 0:51
  all
• 0:51
  your
• 0:51
  Schnooks
• 0:52
  select
• 0:52
  locations
• 0:53
  in
• 0:53
  Missouri
• 0:54
  and
• 0:54
  Illinois.
• 0:55
  I'm
• 0:56
  going
• 0:56
  to
• 0:56
  go
• 0:56
  to
• 0:56
  you
• 0:56
  first,
• 0:57
  Jeff.
• 0:57
  Generally
• 0:58
  speaking,
• 0:59
  are
• 0:59
  you
• 0:59
  pro
• 1:00
  or
• 1:00
  con
• 1:01
  the
• 1:01
  idea
• 1:01
  of
• 1:02
  local
• 1:02
  incubators
• 1:03
  within
• 1:03
  grocery
• 1:04
  stores?
• 1:06
  The
• 1:07
  concepts,
• 1:07
  it's,
• 1:08
  I
• 1:08
  mean
• 1:08
  I
• 1:08
  think
• 1:09
  you're
• 1:09
  a
• 1:09
  terrible
• 1:09
  person
• 1:09
  if
• 1:09
  you're
• 1:09
  not
• 1:10
  pro
• 1:10
  that.
• 1:11
  I,
• 1:11
  I,
• 1:12
  it's
• 1:12
  a,
• 1:12
  oh
• 1:13
  boy,
• 1:14
  it's
• 1:14
  a,
• 1:15
  it's
• 1:15
  a
• 1:15
  great
• 1:15
  concept
• 1:16
  that
• 1:16
  I
• 1:16
  think
• 1:16
  does
• 1:17
  a
• 1:17
  lot
• 1:17
  for
• 1:17
  a
• 1:17
  local
• 1:18
  community.
• 1:18
  Now
• 1:18
  whether
• 1:19
  it
• 1:19
  is
• 1:19
  a
• 1:20
  profitable
• 1:21
  or
• 1:21
  the
• 1:21
  right
• 1:22
  strategic
• 1:22
  direction
• 1:23
  for
• 1:23
  a
• 1:23
  larger
• 1:24
  company
• 1:24
  to
• 1:24
  employ,
• 1:26
  I
• 1:26
  think
• 1:27
  is
• 1:27
  if
• 1:27
  it's
• 1:28
  looking
• 1:28
  for
• 1:28
  a
• 1:28
  click,
• 1:29
  you
• 1:29
  know,
• 1:29
  banner
• 1:31
  headlines
• 1:31
  it
• 1:31
  to
• 1:31
  be
• 1:32
  the
• 1:33
  unlock
• 1:33
  for
• 1:34
  them.
• 1:34
  I'm
• 1:34
  not
• 1:34
  a
• 1:34
  big
• 1:34
  proponent
• 1:35
  of
• 1:35
  it,
• 1:35
  but
• 1:36
  I
• 1:36
  actually
• 1:36
  am
• 1:36
  not
• 1:36
  surprised
• 1:36
  at
• 1:37
  Schnooks
• 1:38
  given
• 1:38
  their
• 1:39
  family
• 1:39
  owned
• 1:40
  and
• 1:40
  operated
• 1:40
  history,
• 1:41
  seeing
• 1:42
  what
• 1:42
  they're
• 1:42
  doing
• 1:43
  in
• 1:43
  particular
• 1:43
  in
• 1:44
  the
• 1:44
  markets
• 1:44
  that
• 1:44
  they're
• 1:44
  going
• 1:44
  to
• 1:44
  employ
• 1:45
  it.
• 1:45
  I
• 1:45
  actually
• 1:45
  don't
• 1:45
  think
• 1:46
  they
• 1:46
  were
• 1:46
  looking
• 1:46
  for
• 1:46
  a
• 1:46
  headline
• 1:47
  here.
• 1:47
  I
• 1:47
  actually
• 1:48
  believe
• 1:48
  they
• 1:48
  were
• 1:49
  doing
• 1:49
  this
• 1:49
  because
• 1:50
  they,
• 1:51
  they
• 1:51
  want
• 1:51
  to
• 1:51
  get
• 1:53
  some
• 1:53
  unknown
• 1:54
  local
• 1:54
  family
• 1:55
  owned
• 1:55
  and
• 1:55
  operated
• 1:56
  brands
• 1:57
  more
• 1:58
  exposure.
• 1:59
  And
• 1:59
  I
• 1:59
  think
• 1:59
  when
• 1:59
  you
• 2:00
  do
• 2:00
  it
• 2:00
  for
• 2:01
  that
• 2:01
  manner
• 2:01
  in
• 2:01
  that
• 2:02
  capacity,
• 2:02
  it
• 2:02
  works.
• 2:04
  When
• 2:04
  you
• 2:04
  do
• 2:04
  it
• 2:05
  for
• 2:06
  a
• 2:07
  headline
• 2:07
  or
• 2:08
  a
• 2:09
  consumer
• 2:09
  talking
• 2:09
  piece,
• 2:09
  I
• 2:10
  think
• 2:10
  it's
• 2:10
  lost.
• 2:12
  Jeff,
• 2:12
  I
• 2:13
  have
• 2:13
  to
• 2:13
  bring
• 2:13
  back
• 2:14
  something
• 2:14
  you
• 2:14
  said
• 2:14
  earlier
• 2:15
  in
• 2:15
  the
• 2:15
  podcast,
• 2:15
  cause
• 2:16
  this
• 2:16
  is
• 2:16
  something
• 2:16
  that
• 2:17
  I'm
• 2:17
  wondering
• 2:17
  about
• 2:17
  with
• 2:18
  some
• 2:18
  of
• 2:18
  these
• 2:18
  incubators.
• 2:19
  What
• 2:19
  happens
• 2:20
  when
• 2:20
  tariffs
• 2:20
  hit
• 2:20
  these
• 2:21
  small
• 2:21
  companies?
• 2:22
  Like
• 2:22
  you've,
• 2:23
  you've
• 2:23
  invested
• 2:23
  all
• 2:24
  this
• 2:24
  money
• 2:24
  in
• 2:24
  a
• 2:24
  local
• 2:24
  incubator
• 2:25
  and
• 2:25
  you
• 2:26
  were
• 2:26
  talking
• 2:26
  about
• 2:26
  major
• 2:27
  retailers
• 2:27
  potentially
• 2:28
  going
• 2:28
  out
• 2:28
  of
• 2:28
  business
• 2:28
  this
• 2:29
  summer.
• 2:29
  I
• 2:29
  mean
• 2:29
  what
• 2:29
  is,
• 2:30
  what
• 2:30
  impact
• 2:30
  could
• 2:31
  tariffs
• 2:31
  have
• 2:32
  on
• 2:32
  these
• 2:32
  programs
• 2:32
  for
• 2:33
  the
• 2:33
  small
• 2:33
  brand
• 2:34
  that
• 2:34
  suddenly
• 2:35
  is
• 2:35
  paying
• 2:35
  three
• 2:36
  times
• 2:36
  the
• 2:36
  amount
• 2:36
  of
• 2:36
  money
• 2:37
  for
• 2:38
  organic
• 2:38
  flax
• 2:39
  seed
• 2:39
  coming
• 2:40
  from
• 2:40
  overseas?
• 2:42
  Yeah,
• 2:42
  it's,
• 2:43
  it's,
• 2:43
  it's,
• 2:44
  it's
• 2:44
  Lights
• 2:45
  out.
• 2:45
  I
• 2:45
  mean,
• 2:46
  unless
• 2:46
  you
• 2:47
  can,
• 2:48
  can,
• 2:48
  can,
• 2:48
  can
• 2:49
  think
• 2:49
  about
• 2:50
  your
• 2:50
  pricing
• 2:51
  and
• 2:51
  promotional
• 2:51
  strategy
• 2:52
  in
• 2:53
  a
• 2:53
  very
• 2:53
  quick
• 2:54
  manner.
• 2:55
  It'll
• 2:56
  be
• 2:56
  very
• 2:56
  challenging
• 2:57
  for
• 2:57
  some
• 2:57
  of
• 2:57
  these
• 2:58
  smaller
• 2:58
  bespoke
• 2:59
  brands
• 2:59
  that
• 2:59
  are
• 3:00
  heavily
• 3:00
  reliant
• 3:01
  on
• 3:02
  the
• 3:02
  sourcing
• 3:02
  of
• 3:03
  their
• 3:03
  goods
• 3:03
  outside
• 3:04
  of
• 3:04
  the
• 3:04
  US
• 3:05
  to
• 3:06
  weather
• 3:07
  the
• 3:07
  type
• 3:08
  of
• 3:09
  pressure
• 3:09
  that
• 3:11
  we're
• 3:11
  going
• 3:11
  to
• 3:11
  face
• 3:11
  and
• 3:12
  we
• 3:12
  are
• 3:12
  facing
• 3:12
  right
• 3:12
  now.
• 3:14
  Look,
• 3:14
  I
• 3:14
  think
• 3:15
  there's
• 3:15
  still
• 3:15
  some
• 3:15
  brands
• 3:16
  that
• 3:16
  do
• 3:16
  it
• 3:16
  well.
• 3:17
  I
• 3:17
  think
• 3:17
  of
• 3:18
  Huckberry
• 3:18
  as
• 3:18
  an
• 3:19
  example.
• 3:19
  Huckberry,
• 3:20
  I
• 3:20
  love
• 3:20
  everything
• 3:21
  that
• 3:21
  they
• 3:21
  do
• 3:21
  and
• 3:23
  they
• 3:23
  source
• 3:24
  a
• 3:24
  lot
• 3:24
  of
• 3:24
  bespoke,
• 3:25
  unique
• 3:25
  brands,
• 3:26
  obviously
• 3:26
  US
• 3:27
  based,
• 3:28
  but
• 3:28
  they
• 3:29
  do
• 3:29
  some
• 3:29
  international,
• 3:29
  a
• 3:30
  lot
• 3:30
  of
• 3:30
  international
• 3:30
  actually
• 3:31
  brands.
• 3:31
  And
• 3:32
  it'll
• 3:32
  be.
• 3:33
  And
• 3:34
  they
• 3:34
  don't
• 3:34
  do
• 3:34
  it
• 3:34
  for
• 3:34
  the
• 3:34
  promo,
• 3:35
  they
• 3:35
  don't
• 3:35
  do
• 3:35
  it
• 3:38
  for
• 3:38
  the
• 3:38
  advertisement.
• 3:39
  But
• 3:39
  I
• 3:39
  do
• 3:39
  believe
• 3:39
  that
• 3:40
  you
• 3:40
  have
• 3:42
  an
• 3:42
  opportunity
• 3:42
  with
• 3:43
  some
• 3:43
  of
• 3:43
  these
• 3:43
  smaller
• 3:43
  brands
• 3:44
  to
• 3:44
  lean
• 3:44
  into.
• 3:44
  But
• 3:45
  it'll
• 3:45
  be
• 3:45
  interesting
• 3:45
  to
• 3:46
  see
• 3:46
  how
• 3:46
  many
• 3:46
  are
• 3:46
  actually
• 3:46
  left
• 3:47
  at
• 3:47
  the,
• 3:48
  at
• 3:48
  the
• 3:48
  end
• 3:48
  of
• 3:48
  this
• 3:48
  if
• 3:49
  this
• 3:49
  isn't
• 3:49
  resolved.
• 3:50
  Yeah.
• 3:51
  Luis,
• 3:51
  how
• 3:51
  would
• 3:51
  you
• 3:52
  be
• 3:52
  advising
• 3:53
  your
• 3:54
  partners
• 3:55
  at
• 3:55
  A
• 3:55
  and
• 3:55
  M
• 3:56
  or
• 3:56
  your
• 3:56
  clients
• 3:56
  at
• 3:57
  A
• 3:57
  and
• 3:57
  M
• 3:57
  if
• 3:57
  they're,
• 3:58
  you
• 3:58
  know,
• 3:58
  if
• 3:59
  this
• 3:59
  is
• 3:59
  the
• 3:59
  strategy
• 4:00
  that
• 4:00
  they
• 4:00
  have
• 4:00
  to
• 4:01
  bring
• 4:01
  in
• 4:01
  new
• 4:01
  customers
• 4:02
  and
• 4:03
  really
• 4:03
  help
• 4:03
  bolster
• 4:04
  some
• 4:04
  of
• 4:04
  the
• 4:04
  local
• 4:05
  businesses.
• 4:07
  I
• 4:07
  think
• 4:08
  one
• 4:10
  question,
• 4:10
  and
• 4:10
  that's,
• 4:11
  you
• 4:11
  know,
• 4:11
  Jeff,
• 4:11
  with
• 4:11
  the
• 4:11
  CFO
• 4:12
  services,
• 4:13
  hat
• 4:15
  kind
• 4:15
  of
• 4:15
  alluded
• 4:15
  to
• 4:15
  it,
• 4:16
  is,
• 4:16
  is
• 4:17
  it
• 4:17
  the
• 4:17
  right
• 4:17
  use
• 4:18
  of
• 4:18
  capital
• 4:19
  and
• 4:19
  resources
• 4:21
  for
• 4:21
  a
• 4:22
  grocer
• 4:24
  to
• 4:24
  be
• 4:24
  investing
• 4:25
  and
• 4:26
  helping
• 4:26
  develop
• 4:28
  those
• 4:29
  companies?
• 4:30
  And
• 4:30
  that's
• 4:31
  a
• 4:31
  real
• 4:31
  question
• 4:31
  on,
• 4:32
  you
• 4:32
  know,
• 4:32
  how
• 4:33
  stretched
• 4:33
  can
• 4:33
  you,
• 4:33
  can
• 4:33
  you
• 4:34
  be?
• 4:34
  Do
• 4:34
  you
• 4:34
  want
• 4:34
  to
• 4:35
  have
• 4:35
  the
• 4:35
  grocer
• 4:35
  just
• 4:36
  focused
• 4:36
  on
• 4:36
  their
• 4:36
  core
• 4:36
  business
• 4:37
  and
• 4:38
  other
• 4:39
  VCs
• 4:40
  or
• 4:40
  other
• 4:41
  players
• 4:41
  are
• 4:42
  supporting
• 4:43
  and
• 4:43
  bringing
• 4:44
  the
• 4:44
  new
• 4:44
  players
• 4:45
  to
• 4:46
  the
• 4:46
  groceries
• 4:47
  who
• 4:47
  will
• 4:47
  then
• 4:47
  distribute
• 4:48
  it,
• 4:48
  or
• 4:48
  do
• 4:48
  you
• 4:48
  want
• 4:48
  to
• 4:49
  integrate
• 4:49
  and
• 4:50
  do
• 4:50
  you
• 4:50
  think
• 4:50
  that
• 4:50
  because
• 4:51
  you're
• 4:51
  a
• 4:51
  grocer,
• 4:52
  you
• 4:52
  have
• 4:53
  actually
• 4:54
  a
• 4:54
  specific
• 4:54
  set
• 4:55
  of
• 4:55
  knowledge,
• 4:56
  you
• 4:56
  know,
• 4:56
  the
• 4:56
  customers,
• 4:57
  you
• 4:57
  can
• 4:57
  very
• 4:57
  quickly
• 4:58
  scale
• 4:59
  the
• 4:59
  new
• 5:00
  products
• 5:00
  in
• 5:01
  your
• 5:01
  stores
• 5:02
  and
• 5:02
  help
• 5:03
  accelerate.
• 5:04
  So,
• 5:04
  so
• 5:04
  that's
• 5:04
  a
• 5:04
  strategic
• 5:05
  question
• 5:05
  that
• 5:06
  you
• 5:06
  have
• 5:06
  to,
• 5:07
  to
• 5:07
  answer.
• 5:07
  And
• 5:08
  it
• 5:08
  depends
• 5:08
  on
• 5:08
  the
• 5:08
  DNA
• 5:09
  of
• 5:09
  the
• 5:10
  company.
• 5:10
  And
• 5:10
  some
• 5:10
  companies
• 5:11
  have
• 5:11
  turned
• 5:12
  into
• 5:12
  good
• 5:13
  incubators
• 5:14
  on
• 5:14
  the
• 5:14
  side,
• 5:15
  but
• 5:15
  not
• 5:15
  many.
• 5:16
  So.
• 5:16
  Yes.
• 5:17
  Right.
• 5:17
  And
• 5:17
  you
• 5:18
  actually
• 5:18
  see
• 5:19
  a
• 5:19
  lot
• 5:19
  of
• 5:19
  the,
• 5:19
  from
• 5:20
  consumer
• 5:20
  standpoint,
• 5:21
  a
• 5:21
  lot
• 5:21
  of
• 5:21
  the
• 5:21
  big
• 5:22
  players,
• 5:24
  you
• 5:24
  know,
• 5:24
  if
• 5:24
  you
• 5:24
  think
• 5:25
  the
• 5:25
  pepsi,
• 5:25
  Coca
• 5:26
  Cola,
• 5:26
  Dr.
• 5:26
  Peppers
• 5:27
  and
• 5:27
  others,
• 5:29
  typically
• 5:30
  they
• 5:30
  try
• 5:31
  incubating,
• 5:32
  they
• 5:32
  try
• 5:32
  developing
• 5:33
  small
• 5:34
  companies,
• 5:34
  but
• 5:34
  not
• 5:34
  that
• 5:35
  many
• 5:35
  or
• 5:35
  even
• 5:35
  L'Oreal
• 5:36
  in
• 5:36
  the
• 5:36
  beauty
• 5:36
  space
• 5:37
  or
• 5:37
  not
• 5:37
  many
• 5:38
  emerge
• 5:39
  very
• 5:39
  smart.
• 5:40
  Right.
• 5:42
  How
• 5:42
  it
• 5:42
  typically
• 5:43
  works
• 5:43
  well
• 5:43
  is
• 5:44
  when
• 5:44
  they
• 5:44
  acquire
• 5:45
  a
• 5:45
  company
• 5:45
  that's
• 5:45
  already
• 5:46
  scaled,
• 5:46
  that's
• 5:47
  no
• 5:47
  longer
• 5:47
  a
• 5:47
  startup
• 5:48
  and
• 5:48
  that
• 5:49
  they
• 5:49
  can
• 5:49
  integrate
• 5:50
  in
• 5:50
  their
• 5:50
  view.
• 5:51
  So
• 5:51
  right.
• 5:51
  That's
• 5:52
  the
• 5:52
  biggest
• 5:52
  thing
• 5:52
  is
• 5:53
  can,
• 5:53
  can
• 5:53
  you
• 5:53
  scale
• 5:54
  if,
• 5:54
  if
• 5:54
  you
• 5:54
  do
• 5:55
  take
• 5:55
  off
• 5:55
  in
• 5:55
  the
• 5:55
  local
• 5:56
  four
• 5:56
  or
• 5:56
  five
• 5:56
  stores
• 5:57
  are
• 5:57
  you
• 5:57
  ready
• 5:57
  to
• 5:57
  go
• 5:58
  chain
• 5:58
  wide
• 5:58
  and
• 5:58
  how
• 5:58
  quickly.
• 5:59
  So
• 5:59
  it's
• 5:59
  more
• 6:00
  complex
• 6:00
  you're
• 6:00
  saying
• 6:01
  than
• 6:01
  pro
• 6:01
  or
• 6:01
  con
• 6:03
  Chris,
• 6:03
  I'll
• 6:03
  give
• 6:04
  you
• 6:04
  the
• 6:04
  last
• 6:04
  word.
• 6:04
  Pro
• 6:05
  or
• 6:05
  con?
• 6:06
  Local
• 6:06
  income.
• 6:07
  I
• 6:07
  feel
• 6:08
  like
• 6:08
  the
• 6:08
  last
• 6:08
  two
• 6:08
  times
• 6:09
  we've
• 6:09
  had
• 6:09
  a
• 6:09
  M
• 6:10
  on
• 6:10
  the
• 6:10
  show
• 6:10
  and
• 6:11
  like,
• 6:11
  you
• 6:11
  know,
• 6:11
  like
• 6:12
  I,
• 6:13
  I
• 6:13
  get
• 6:13
  very
• 6:13
  vociferous
• 6:14
  in
• 6:14
  my.
• 6:14
  I
• 6:15
  don't
• 6:15
  think
• 6:15
  I
• 6:15
  disagree
• 6:15
  with
• 6:16
  you
• 6:16
  guys
• 6:16
  actually
• 6:16
  I
• 6:16
  think
• 6:16
  I
• 6:17
  agree
• 6:17
  with
• 6:17
  Luis
• 6:18
  but
• 6:18
  I'm
• 6:18
  going
• 6:18
  to
• 6:19
  come
• 6:19
  at
• 6:19
  Jeff
• 6:19
  a
• 6:19
  little
• 6:19
  bit
• 6:20
  say
• 6:20
  I
• 6:20
  guess
• 6:20
  I'm
• 6:20
  the
• 6:20
  bad
• 6:21
  person
• 6:21
  that
• 6:21
  is
• 6:21
  con
• 6:22
  for
• 6:22
  the
• 6:22
  local,
• 6:23
  the
• 6:23
  local
• 6:23
  products
• 6:24
  and
• 6:24
  grocery
• 6:24
  stores
• 6:24
  because
• 6:25
  I
• 6:25
  think
• 6:25
  Luis
• 6:25
  hit
• 6:25
  it
• 6:25
  on
• 6:26
  the
• 6:26
  head.
• 6:26
  Like
• 6:26
  I
• 6:26
  don't
• 6:27
  think
• 6:27
  most
• 6:28
  retailers
• 6:29
  have
• 6:29
  the
• 6:29
  stomach
• 6:30
  to
• 6:30
  do
• 6:30
  these
• 6:30
  for
• 6:31
  the
• 6:31
  long
• 6:31
  term.
• 6:31
  So
• 6:31
  like
• 6:32
  with
• 6:32
  that
• 6:32
  I
• 6:32
  like
• 6:33
  with
• 6:33
  that
• 6:33
  said,
• 6:33
  I'm
• 6:34
  pro
• 6:35
  the
• 6:35
  idea
• 6:36
  as
• 6:36
  long
• 6:37
  as
• 6:37
  you
• 6:37
  are
• 6:37
  100%
• 6:38
  committed
• 6:38
  to
• 6:39
  it
• 6:39
  being
• 6:39
  an
• 6:39
  idea
• 6:39
  to
• 6:40
  give
• 6:40
  back
• 6:40
  to
• 6:40
  the
• 6:40
  community
• 6:41
  for
• 6:41
  the
• 6:41
  long
• 6:41
  term.
• 6:41
  Like
• 6:42
  I'm
• 6:42
  talking
• 6:42
  forever
• 6:43
  or
• 6:44
  as
• 6:44
  or
• 6:44
  as
• 6:44
  R
• 6:45
  and
• 6:45
  D
• 6:45
  and
• 6:45
  like
• 6:45
  you're
• 6:46
  just
• 6:46
  comfortable
• 6:46
  losing
• 6:47
  that
• 6:47
  money
• 6:47
  every
• 6:47
  year
• 6:47
  and
• 6:48
  again
• 6:48
  you're
• 6:48
  going
• 6:48
  to
• 6:48
  do
• 6:48
  it
• 6:49
  every
• 6:49
  year
• 6:49
  for
• 6:49
  the
• 6:49
  R
• 6:50
  D
• 6:50
  because
• 6:51
  chances
• 6:52
  are
• 6:52
  when,
• 6:53
  when
• 6:53
  you're,
• 6:53
  when
• 6:54
  these
• 6:54
  items
• 6:54
  are
• 6:54
  stacked
• 6:54
  up
• 6:55
  against
• 6:55
  every
• 6:55
  item
• 6:55
  in
• 6:56
  the
• 6:56
  store.
• 6:56
  I've
• 6:56
  said
• 6:57
  this
• 6:57
  a
• 6:57
  thousand
• 6:57
  times
• 6:57
  on
• 6:58
  this
• 6:58
  show.
• 6:58
  These
• 6:58
  brands
• 6:58
  are
• 6:59
  small
• 6:59
  for
• 6:59
  a
• 6:59
  reason.
• 7:00
  They
• 7:00
  wouldn't
• 7:00
  get
• 7:00
  in
• 7:01
  the
• 7:01
  shelf,
• 7:01
  they
• 7:01
  wouldn't
• 7:02
  get
• 7:02
  on
• 7:02
  the
• 7:02
  shelves
• 7:02
  otherwise.
• 7:03
  So
• 7:03
  you're
• 7:04
  going
• 7:04
  to
• 7:04
  lose
• 7:04
  money
• 7:04
  on
• 7:05
  them
• 7:05
  more
• 7:05
  often
• 7:05
  than
• 7:06
  not.
• 7:06
  Sure.
• 7:06
  Are
• 7:06
  you
• 7:07
  going
• 7:07
  to
• 7:07
  get
• 7:07
  a
• 7:07
  winner?
• 7:07
  Yeah,
• 7:08
  maybe
• 7:08
  every
• 7:09
  once
• 7:09
  in
• 7:09
  a
• 7:09
  while.
• 7:09
  But
• 7:10
  it's
• 7:10
  not
• 7:10
  going
• 7:10
  to
• 7:10
  offset
• 7:10
  the
• 7:10
  cost
• 7:11
  of
• 7:11
  trying
• 7:11
  to
• 7:11
  do
• 7:11
  this
• 7:12
  day
• 7:12
  in
• 7:12
  and
• 7:12
  day
• 7:12
  out.
• 7:13
  And
• 7:13
  the
• 7:13
  chances
• 7:13
  are
• 7:14
  to
• 7:14
  Luis's
• 7:14
  point,
• 7:15
  the
• 7:15
  winners
• 7:15
  will
• 7:16
  get
• 7:16
  onto
• 7:16
  your
• 7:16
  shelves
• 7:17
  naturally.
• 7:17
  Anyway,
• 7:18
  that's
• 7:18
  just
• 7:18
  how
• 7:19
  this
• 7:19
  works.
• 7:20
  So
• 7:20
  net
• 7:20
  net.
• 7:20
  I
• 7:21
  don't
• 7:21
  think
• 7:21
  it's
• 7:21
  a
• 7:21
  good,
• 7:22
  good
• 7:23
  investment
• 7:23
  of
• 7:24
  capital
• 7:24
  for
• 7:24
  the
• 7:24
  average
• 7:25
  retailer
• 7:25
  to
• 7:25
  think
• 7:25
  about.
• 7:26
  Like
• 7:26
  I
• 7:26
  just,
• 7:26
  I
• 7:26
  just
• 7:26
  have
• 7:26
  not
• 7:27
  bought
• 7:27
  in
• 7:27
  on
• 7:27
  it.
• 7:27
  But
• 7:28
  again
• 7:28
  schnooks
• 7:29
  very
• 7:29
  important
• 7:29
  in
• 7:29
  the
• 7:29
  local
• 7:30
  community.
• 7:30
  If
• 7:30
  they're
• 7:30
  beholden
• 7:31
  to
• 7:31
  the
• 7:31
  idea
• 7:32
  of
• 7:32
  supporting
• 7:33
  local
• 7:33
  entrepreneurs
• 7:34
  then
• 7:34
  fine.
• 7:34
  But
• 7:34
  we've
• 7:34
  seen
• 7:35
  other
• 7:35
  examples,
• 7:35
  particularly
• 7:36
  in
• 7:36
  our
• 7:36
  local
• 7:36
  market
• 7:37
  where
• 7:37
  they
• 7:37
  say
• 7:38
  they're
• 7:38
  going
• 7:38
  to
• 7:38
  do
• 7:38
  this
• 7:38
  and
• 7:38
  then
• 7:39
  they
• 7:39
  pull
• 7:39
  the
• 7:39
  plug
• 7:39
  on
• 7:39
  it
• 7:40
  because
• 7:40
  they
• 7:40
  need
• 7:40
  to
• 7:40
  find
• 7:41
  some
• 7:41
  other
• 7:41
  growth
• 7:41
  opportunities
• 7:42
  and
• 7:42
  that's
• 7:42
  just
• 7:42
  a
• 7:42
  waste
• 7:43
  of
• 7:43
  time
• 7:43
  in
• 7:43
  my
• 7:43
  opinion.
• 7:44
  Yeah,
• 7:44
  so
• 7:45
  well
• 7:45
  said.
• 7:45
  I
• 7:45
  think
• 7:45
  that's.
• 7:46
  That's
• 7:46
  also
• 7:47
  like,
• 7:47
  where's
• 7:47
  the
• 7:47
  budget
• 7:48
  coming
• 7:48
  from?
• 7:48
  Is
• 7:48
  this
• 7:49
  a
• 7:49
  marketing
• 7:49
  thing
• 7:49
  where
• 7:50
  you're
• 7:50
  trying
• 7:50
  to
• 7:50
  get
• 7:50
  like,
• 7:51
  are
• 7:51
  you
• 7:51
  using
• 7:52
  these
• 7:52
  local
• 7:52
  brands
• 7:53
  as
• 7:53
  marketing
• 7:53
  to
• 7:54
  draw
• 7:54
  you
• 7:54
  into
• 7:54
  your
• 7:55
  local
• 7:55
  store?
• 7:55
  That's
• 7:56
  a
• 7:56
  marketing
• 7:56
  budget.
• 7:56
  Then
• 7:57
  that's
• 7:57
  not
• 7:57
  a
• 7:57
  merchandising
• 7:58
  play
• 7:58
  at
• 7:59
  that
• 7:59
  point
• 7:59
  in
• 7:59
  time
• 7:59
  too.
• 8:00
  So
• 8:00
  it's
• 8:00
  really
• 8:00
  changing
• 8:01
  how
• 8:01
  you're
• 8:01
  thinking
• 8:01
  about
• 8:02
  it,
• 8:02
  right,
• 8:02
  Chris?
• 8:03
  Yeah,
• 8:03
  and
• 8:04
  I'd
• 8:04
  say
• 8:04
  too,
• 8:04
  like,
• 8:04
  as
• 8:05
  a
• 8:05
  former
• 8:05
  merchant,
• 8:05
  looking
• 8:06
  at
• 8:06
  my
• 8:06
  adjacencies
• 8:07
  or
• 8:07
  my
• 8:07
  space
• 8:08
  plan
• 8:08
  on,
• 8:08
  you
• 8:09
  know,
• 8:09
  in
• 8:09
  a
• 8:09
  store,
• 8:10
  in
• 8:10
  the
• 8:10
  average
• 8:10
  store,
• 8:11
  as
• 8:11
  soon
• 8:11
  as
• 8:11
  I
• 8:11
  start
• 8:11
  to
• 8:12
  see
• 8:12
  the
• 8:12
  average
• 8:13
  dollars
• 8:13
  per
• 8:13
  square
• 8:13
  foot
• 8:14
  of
• 8:14
  these
• 8:14
  items
• 8:14
  being
• 8:15
  incredibly
• 8:15
  low,
• 8:16
  I'm
• 8:16
  going
• 8:16
  after
• 8:16
  that
• 8:17
  and
• 8:17
  I'm
• 8:17
  making
• 8:17
  a
• 8:17
  play
• 8:17
  for
• 8:17
  it
• 8:18
  because
• 8:18
  I
• 8:18
  want
• 8:18
  to
• 8:18
  bring
• 8:18
  in
• 8:18
  something
• 8:19
  and
• 8:19
  I
• 8:19
  want
• 8:19
  to
• 8:19
  be
• 8:19
  the
• 8:19
  hero
• 8:20
  in
• 8:20
  my
• 8:21
  organization
• 8:21
  that
• 8:21
  helps
• 8:22
  drive
• 8:22
  comp
• 8:22
  growth
• 8:23
  year
• 8:23
  over
• 8:23
  year.
• 8:24
  So
• 8:24
  that's
• 8:24
  what
• 8:24
  end
• 8:25
  up,
• 8:25
  most
• 8:26
  of
• 8:26
  the
• 8:26
  time
• 8:26
  ends
• 8:26
  up
• 8:27
  happening
• 8:27
  here.
• 8:27
  You've
• 8:27
  got
• 8:28
  to
• 8:28
  have
• 8:28
  a
• 8:28
  really
• 8:28
  strong
• 8:28
  leadership
• 8:29
  that's
• 8:29
  going
• 8:29
  to
• 8:29
  stick
• 8:29
  to
• 8:29
  this
• 8:30
  idea.