The barbecue season, with the added bonus this summer of the World Cup in Russia, is just around the corner, but the next couple of months or so should also prove a boon to booze sales as consumers look for long, cold drinks as the weather warms up.
Chilled beers, ciders and alcoholic ready-to-drinks (RTDs) will become must-stocks, while spirit drinkers will be focusing on long cooling drinks and wine drinkers will be looking for lighter and lower-alcohol styles as well as the occasional glass of bubbly or a wine spritzer.
Growth categories
The total beers, wines and spirits market in the independent channel goes into the spring with value growth of 1.8% and a slight 0.9% volume decline. Still wine, which accounts for almost one-third of alcohol sales, is seeing modest growth of 0.1%, with beer (up 2.4%) and spirits (up 2.2%) growing at a much faster rate. Big growth categories include gin and flavoured vodka.
Andrew Nunney, category, shopper and insights director at Accolade Wines, says Prosecco is still fuelling growth in the sparkling wine sector (up 6.8%), but sales of Champagne (down 7.8%) are suffering as a result.
Beer sales
The Easter holiday period is proving to be a key opportunity for the take-home drinks trade. According to Liam Newton, vice-president of marketing at Carlsberg UK, Easter last year was the fifth biggest week of the year for off-trade beer sales.
The beer category in the independent sector is doing fairly well, with the average consumer, says Newton, now buying beer from their local shop on average 14.5 times a year. “The majority of this growth is attributed to ‘premiumisation’ and premium lager options, which grew by 6% and contributed an additional £27m to the independent channel.
“As impulse purchasing behaviour increases, it is important for retailers to ensure that a chilled section is fully stocked and conveniently placed, With the barbecue season just around the corner, alongside key sporting events such as the World Cup, independent retailers are positioned incredibly well to profit, and therefore preparation should begin as far in advance as possible.”
Toby Lancaster, category and shopper marketing director at Heineken, says it is important for retailers to offer customers the opportunity to trade up to more premium options in order to increase the value of beer sales. “Within the beer and cider category, ‘premiumisation’ is a continuing trend, with shoppers increasingly looking to trade up for a treat at home.
“Craft beer has become more popular as a premium alternative to the core range of beers. Many shoppers are looking to explore new tastes and formats and so making sure a representative range is stocked is really important.”
Food pairing
Cross-merchandising beer and cider with related products takes on an even more important role in the spring and the lead-up to the summer, says Lancaster at Heineken. “Many beers and ciders offer a perfect accompaniment to a number of food dishes and thus looking at how beer and cider can be merchandised with food is really important.
“By positioning everyday favourite beers alongside fixtures that feature barbecue food or ciders alongside picnic merchandise, retailers should expect to see an uplift in sales as shoppers make a natural link between the two categories.”
Strong increases
The alcoholic ready-to-drink (RTD) sector is a “staple of independent stores” and after many years of decline, sales are growing again with several brands enjoying strong increases, according to Christian Sarginson, brand controller at Global Brands, which markets the VK, Hooch and Crooked RTD brands.
RTDs are now worth £229m in the off-trade, with sales growing by a modest 0.1%, with 700ml bottles accounting for 68% of the RTD market (excluding the pre-mixed spirits sector), as the important spring and summer seasons approach. “As the seasons change, so do consumers’ tastes,” says Sarginson.
Outdoor festivals
“It’s important to remember the impact bank holidays can have on sales in-store. As the season turns over a new leaf, impulsive events, outdoor celebrations and festivals begin to take centre stage. More than half (55%) of alcohol is consumed within two hours of purchase and to take advantage of impulse purchases retailers should keep their top sellers in the fridge.
“In the lead-up to bank holidays and festivals, shop owners should expect an increase in convenience shoppers looking for an easy solution to pre-party.”
Best-selling lines
Still wine in the independent sector is dominated by the New World brands, accounting for the top 10 best-selling lines, according to Ben Smith, corporate communications manager at CYT (Concha y Toro).
Consumption patterns are about to change as the warmer weather arrives. “Certainly, people start to drink more white wines and rosés. But Easter, as a celebration, usually includes plenty of ‘hearty fare’ and so retailers will continue to see good sales for their full-bodied red wines, such as Cabernet Sauvignon, Shiraz and Malbec.”
The Easter holidays offer two main opportunities for wine sales, he says, with sparkling wine the focus for the start of a main meal and then good-quality red wines for the main course.
Andrew Nunney at Accolade Wines, which markets the Hardys and Echo Falls wine brands, says the spring will see demand grow for “fruitier, more refreshing styles of wine”, including fruit wines, like Echo Falls Fruit Fusions, as well as rosé and lighter white wines.
Single-serve wines
The arrival of warm weather should also see increased demand for ‘mini bottles’ to cater for on-the-go shoppers or daytime outdoor events. “Moderation will continue to be a focus in the summer,” says Nunney, “so allowing shoppers to buy single-serve [wine] will help to drive incremental sales. Sales of ‘mini bottles’ are on the increase and branded offerings, such as Hardys Stamp and Echo Falls (187ml), can also be taken outside of the wine aisle and merchandised with the snacking or ready meal offer in order to drive impulse purchasing.”
David Mallory, UK channel director at E&J Gallo, says its Barefoot range of wines includes the UK’s best-selling Pinot Grigio, Merlot and Pink Moscato, with each of these wines also available as a 187ml ‘mini’. “These smaller formats are perfect for picnics and occasions when consumers may want to mix and match different wine styles. With sales up 5%, 187ml bottles cater for the impulse shopper who wants to ‘grab-and-go’, those consumers who want to enjoy a glass of wine during the week without opening a whole bottle and those people who want to vary their drinking experience.”
Holiday time
Accolade Wines says retailers should be linking their ranges to make the most of Easter and the spring bank holidays at the beginning and end of May. “These events are times when people are socialising, having barbecues and special Easter Sunday meals, so they will be looking for good-quality, good-value wines to share with friends and family.
“Cross-category merchandising linking wine and fresh produce, meat or desserts can remind shoppers of your range and raise intrigue,” says Nunney. “Food pairing suggestions on shelf-talkers can encourage shoppers to try something new, trade up and give the shopper the confidence they need for these more important occasions.
“There is an increase in moderation with all age groups, but also a growing interest in quality, provenance and flavour, meaning that shoppers are prepared to spend more and get something more interesting,” says Nunney.
Challenging sector
Selling spirits in the convenience market still represents a challenge for independents, who still mainly merchandise their selection behind the counter and as a result the impulse channel is not performing as well as the major supermarkets.
Dan Bolton, managing director at Hi-Spirits, which markets Southern Comfort and a range of other spirits and speciality drinks, says opportunities this spring rest in sectors such as American whiskeys, premium gins, spiced rums and flavoured spirits.
“Although gin sales are now strong all year round and still seeing growth, the warmer weather is an opportunity to focus on the gin range,” says Bolton. “Consumers expect a choice, and shifting the focus for that first gin and tonic of spring from a mainstream brand to a premium gin can make a big difference to sales.”
Discerning consumers
Leanne Ware, senior marketing manager at Halewood Wines & Spirits, says ‘premiumisation’ and ‘flavour innovation’ will continue to be drivers of growth in the spirits market. “We are now dealing with a more discerning consumer than ever before and their expectations have now been raised across all categories. Provenance, authenticity and heritage will remain key factors in the purchase decision.”
Consumers can also be enticed with the right mix of indulgence and innovation, says Bolton at Hi-Spirits. “The boom in cocktails and mixed drinks is definitely an opportunity for independent retailers to upsell to consumers. While it’s more of a challenge to promote mixed drinks in an off-trade setting, cross-merchandising spirits with mixers and juices, as well as fruit and ice, will help consumers to make the link.”
Inspire consumers
Ware at Halewood, which sells Whitley Neill gin, Rum Sixty Six and other spirit brands, says: “Cross-merchandising is a great way to inspire consumers, particularly in regards to the gin category, so organise your offering into easy-to-navigate segments, such as premium, traditional, contemporary and flavoured, with corresponding mixers and tonics displayed next to them to increase the chances of multiple purchases.”
