Jinx Innovation and Operations Meeting Notes

Data Management and Financial Strategy

  • Master Data Discrepancies: There is currently a lack of alignment between the sales forecast sheet, the master data system, and internal spreadsheets. Some new items are documented in the master data while others exist only in specific sales sheets or P&L files. It is vital to note that information presence in one document does not guarantee existence in another.
  • List Price Calculation and Ownership:
    • P&L vs. Master Data: For new innovation items (net new to Jinx), list prices are carved out in the P&L file rather than master data. For existing items, such as the 14 lb14\,lb kibble, list prices are piggybacked off of items currently in-market.
    • Calculated Targets: List prices are not always firm; they often function as targets. The price is back-calculated based on a set Suggested Retail Price (SRP) and an Everyday Low Price (EDLP) discount. For example, the list price for the 3 oz3\,oz tender cuts was determined based on a 17%17\% EDLP discount against a base number, resulting in a target of approximately $0.90\$0.90.
    • Ownership: The pricing is built into the P&L files as a target, while individual channel price sheets are built out subsequently. Volume data is typically housed in the brand-owned section, whereas specific pricing calculations reside in the working P&L.
  • Single Source of Truth: Efforts are underway to ensure the P&L and forecast files serve as the definitive source of truth to avoid searching through fragmented master data. A full audit is planned once all data is plugged into the three-year forecast file.

Forecasting and Sales Assumptions

  • Assumption Logistics: Forecasting involves specific numerical values and qualitative callouts. For example, a current forecast assumption includes the involvement of 900900 PetSmart stores. Fluctuations in store count (greater or less than 900900) will directly affect the total forecast.
  • Retail Submissions: The team is preparing for a stage gate presentation. This includes high-level summaries for several products:
    • Tender cuts.
    • Lamb stews.
    • Freeze-dried nibbles.
    • Kibble sauce.
    • Salmon kibble sauce.
    • 14 lb14\,lb bag upsize.
  • Channel Adjustments: While there are potential changes for holiday treats on Amazon and Chewy, no formal adjustments have been made to the forecast yet. Updates are also pending for "fresh" products.

Project Updates and Logistics

  • Salmon Bites: This product is now live and generating revenue.
  • Holiday Limited Time Offers (LTOs):
    • Corrugate Status: Corrugate materials are scheduled to arrive this week.
    • VAS (Value Added Services): Once materials arrive, a VAS order will be placed through Sydney.
    • Inventory Management: There is a surplus of holiday bites bags; sales is currently searching for a home for this remaining inventory.
  • Packaging and Production timelines:
    • Freeze-Dried Nibbles: The August 14 date is critical for claims validation and finalizing guidelines with Shannon.
    • Meatball Toppers: Production is planned for late September or early November. Receipt of goods is expected in November for a February launch. Plates have already been created.

Technical Packaging and UPC Requirements

  • Cat Tens (Wet Cat Trays):
    • UPC Addition: Retailers require a UPC on individual trays because they may "break pack" to ship individual units. ITIL has confirmed there are no cost implications for adding the UPC, though it requires unique packaging inventory per recipe.
    • Logistical Interims: To avoid carrying multiple tray SKUs, an interim solution involves shrink-wrapping the trays and applying a UPC sticker to the film. This prevents trays from floating freely in Distribution Center (DC) networks, such as Target’s, where loose trays are problematic.
    • Transition Plan: Product with the new UPC trays needs to be in Regional Distribution Centers (RDCs) or delivered by the end of December for a January shipping start from RJW.
  • Meatball Toppers Scannability: The current UPC on the meatball topper pouch is receiving a scannability score of "F." Although it still reads, this is a low score. The pouch material and UPC size are identical to the "homemade" line which had no issues. Adjusting the UPC at this stage would affect the project timeline as plates are already produced.
  • Master Case Labels: For Cat Tens, the sticker size on the master case is flexible as long as it contains the necessary information. Existing house labels of varying sizes may be utilized.

Regulatory Claims and Formulations

  • Indoor Hairball Control Claim:
    • Dietary Shift: Moving from an "all life stages" designation to "adult maintenance." This is a requirement for making hairball control claims.
    • Formulation Tweak: The formula was slightly modified by increasing cellulose to raise the fiber content for testing with an RE. The ingredient deck remains the same, though the Kcal value has changed slightly.
    • Retailer Strategy: There is a concern about how this shift affects retailers like Walmart. The team must decide between a "hard cutover" (new UPC or item code) or a "soft transition" (bleeding through old inventory). Dry cat production is currently soft, meaning existing packaging inventory may last until the end of the year.
  • Soft Baked Biscuits and Drizzle:
    • Base Guardrails: Products must adhere to the "no corn, no wheat, no soy" guardrail. While some recipes suggest wheat-based or oat-based flour, there is a strong preference for maintaining oat-based formulations.
    • Corn Syrup Conflict: The "Drizzle" portion of the "Drizzle and Whipped" line traditionally uses corn syrup. This conflicts with the "no corn" claim. If corn syrup is not used, the project may be paused with the vendor, Claudia.
  • Sunshine Biscuits: Moving forward with an 8 oz8\,oz bag in two recipes. There is an option for a custom Jinx tool/design featuring a "J" on the biscuit shape.

Fresh Product Development

  • Beef Rolls:
    • Design Limitations: The team is pursuing a repeat design rather than a non-repeat design. Current filling machines at the IPF (International Pet Food) facility cannot handle non-repeat designs without a "drip" or alignment issue. High-quality non-repeat designs would require a new filling machine, which is not a short-term feasibility.
    • Hardware: Deep wall hardware development is moving into the next phase with Adi.
  • SERP Projects: Inputs are gathered, but the team must verify that the nuances of product identity (texture/piece identity) align with a margin that makes sense for the business.

Questions & Discussion

  • Who owns coming up with the list price?     The P&L is built based on Set SRPs, backing into a Walmart discount (EDLP). It is more of a calculated target than a firm price initially, which is then fine-tuned for specific sales channels.
  • What is the forecast assumption for stores?     It includes approximately 900900 PetSmart stores, with the understanding that changes in that number will impact the overall forecast.
  • Are there outstanding questions on empty sections of the sheet?     Rosecam, Nick, and Kim are having one last connection with Jack to go over specific forecast questions before they are considered "good to go."
  • Will the soft baked biscuit update be presented on Friday?     Yes, it will be a very quick presentation (1-2 slides) to inform the group of the new direction and what it looks like.
  • What is the batch size for meatballs?     There are no major concerns regarding batch size because they are run through a Mule machine rather than a steam tunnel. The Minimum Order Quantity (MOQ) provided is two pallets, which can be treated as the batch size for documentation purposes.
  • Is the 14-lb chicken SKU new for Walmart?     No, the 14 lb14\,lb chicken, turkey, and duck SKU is already in the market. The upcoming launch will focus on whitefish and salmon upsized bags.