Christmas is almost upon us, as if you hadn’t noticed, and that means consumers in Scotland will be heading to their local shop weighed down with last minute shopping lists, making it more important than ever for retailers to keep on top of stock.
by Kevin Scott
Okay, so you’ve decked the halls and the shop is looking resplendent in all its Christmas-themed wonder. There are just a few weeks to go and hopefully sales have started picking up. It’s in this crucial period leading up to the Big Day itself that retailers can really win big, so it goes without saying that availability becomes even more important now than at any other time of the year. If you run out of something, chances are that in their desperation for last minutes gifts or distress purchases, consumers won’t risk being let down again, so ensure the shelves are packed and the stockroom is as busy as a barn in the days after the birth of baby Jesus.
It is important that if you are part of a symbol group that you keep in contact with your wholesaler, as it’s not uncommon for stock issues to causes problems at this time of year – not every demand can be predicted after all. If you’re unaffiliated, ensure you’ve taken advice from suppliers and your usual cash and carries. Every brand out there is already in the midst of their marketing campaigns and special edition products have been available for a while now. Much work is still to be done though. gifting options Thanks to gifting, indulgence and just because it’s what people do at Christmas, the spirits category is one that can give convenience retailers a huge boost.
And as we approach Christmas Day itself impulse purchases of spirits play an increasingly important role. According to leading spirits distributor Maxxium, retailers can capitalise on this by stocking a good range of well-known brands ensuring these are visible and clearly priced. Ali Brown, Business Sector Controller – Impulse Retail and Off Trade Wholesale, Maxxium UK: “Give more facings to the best-selling brands to ensure they remain available and to help the consumer find them.
The majority of impulse buyers of alcohol are going to consume the product within two hours of purchasing so it’s also important to ensure that products that are consumed chilled are given chiller space.” Brown adds that at-home cocktail drinking is another key trend which all retailers can maximise, whether it be re-ranging the fixture to optimise the shopper experience by merchandising key brands and ingredients in one place, adding value with easy to make cocktail recipes on point of sale (tear-offs, neck-collars and websites), offering link-save deals with mixers, fruit and ice, or simply up-selling these items at the till or on fixture. He adds: “Maxxium’s Impulse brand development managers can assist the independent and symbol retailer with tailored promotional activity and channel specific point of sale support. Retailers looking to grow sales of complementary products during the festive season can do so by looking at the different long serves which are available to those looking for a different way to serve drinks.” Bacardi Brown Forman Brands (BBFB) has launched a Christmas campaign exclusively for the convenience channel.
Designed to tap into the spirit gifting occasion, the activity will see BBFB offering shoppers free gift bags with purchase on some of the firms leading brands. Trading up With 80% of shoppers looking to trade up or increase their spend during the Christmas period, spirit sales also tend to peak during the winter months as consumers purchase items for at-home events or gifts. In fact, last year Christmas represented 25.8% of Total Alcohol sales (by volume) and up to 32.2% for Spirits. Running across best-selling brands including Bacardi, Jack Daniel’s, Bombay Sapphire and Southern Comfort, the festive BBFB promotion is set to help independent retailers take advantage of the sales opportunities the season brings. The promotion are supported by branded shipper units to help maximise visibility in store. Suitable for stores of all sizes, the new shippers hold branded flat-packed gift bags so they can be confidently placed in store rather than behind the till point. Over 500,000 bags will be available across key convenience retailers.
Helping inspire consumers, the bags will also feature seasonal serve suggestions, as well as displaying information on each brand’s heritage. David Irwin, Director of Grocery and Convenience at Bacardi Brown-Forman Brands, comments: “The festive season is a crucial period for the spirits category, driving huge spikes in sales and giving retailers the chance to make incremental profits. The gifting occasion is also key to seasonal sales, with huge numbers of consumers seeking convenient gift solutions, and to trade up to more premium brands. BBFB says it is delighted to be supporting the convenience channel with its new festive promotion which will provide retailers with a chance to tap into this lucrative occasion.
Last year’s activity saw an average of a 33% uplift in value sales, so we’re confident that the new offering will once again appeal to shoppers looking for gifts during the winter months”. There’s no denying that Christmas is boom time for local retailers, so stock up and get selling – and when the big day comes you can unwind safe in the knowledge that the till has been ringing like church bells.
Premier opportunities
For major food manufacturers with multiple brands Christmas can mean masses of investment across many different categories. Such is the case at Premier Foods where it is present in the cakes and biscuits sector, desserts and grocery. Many of its brands come into their own at Christmas. The firm says that as Christmas approaches, retailers should be preparing for the three things that shoppers ask for during the period: availability, dependability and simplicity.
The company’s advice is simple: in an era when consumers are focused on keeping tight control on everyday spending, making the most of national and seasonal events such as Christmas is a great way for retailers to inspire them. Cross-category merchandising and Christmas hot-spots also work well to disrupt shopper missions. Cakes Cakes are a real winner for retailers during the winter months, with Premier Foods delivering more than a third of its packaged cake sales in the 12 weeks leading up to Christmas.
Peak sales continue to escalate year on year with seasonal cakes an essential part of the offering. This year will prove no exception as the Mr. Kipling brand extends its seasonal range with Mr. Kipling Winter Whirls. In addition, the brand will be giving consumers a ‘gift from Mr. Kipling’ with a packaging refresh across its popular Christmas SKUs.
Flavourings & Seasonings More than 30% of Flavourings & Seasonings sales are made in the 12 weeks leading up to Christmas, so retailers should ensure they stock their stores with a range that reflects the importance of the category over this period. By locating gravies and stuffing like Bisto and Paxo near the chilled meat area or creating a secondary siting, retailers can successfully drive sales through the creation of the complete meal solution.
Ambient Desserts Over 36.8m Christmas puddings are consumed by UK households over the festive period, with custard being the topping of choice and featuring alongside a multitude of seasonal desserts. Ambrosia has an 80% share of total Ambient Ready to Serve custard, so retailers should ensure they are stocking up on Ambrosia ahead of the Christmas period, in the knowledge that it is the nation’ favourite. Newly launched Ambrosia Devon Dream (rrp 89p) will also drive incremental sales this Christmas.
Virtual bodyguard Leading wine style drink
Lambrini is helping to keep its consumers safe by introducing a virtual Bodyguard as part of a nationwide campaign to encourage responsible drinking over the festive season. The virtual Bodyguard is a free-to-download application for android and iPhone users, which has a range of functions including an alcohol unit counter that calculates the amount of alcohol consumed from a drinks list. It also features a ‘Get Me home’ tool that uses the GPS functionality on users’ handsets to locate the nearest form of transport and advises of the last available train, bus or tram plus onward connections. And when the night draws to a close, the Bodyguard will even list local taxi companies including contact details to make a booking. Promoted on 2.4 million bottles across all four variants of Lambrini, the Bodyguard App pulls in real time data so users can plan ahead of a night out.
A first for Warburtons
Warburtons first ever Christmas themed wax packaging will make its debut on shelves this year, offering retailers an opportunity to strengthen sales in the important festive season. With three eye-catching designs, the packaging comes with a twist and doubles up as Christmas wrapping paper for re-use by consumers after the bread has been eaten – ideal for consumers looking to keep costs down this season. Warburtons Christmas wax packaging designs will be available across the 800g Toastie, Medium and Thickest bread products and is now available in-store over the festive period. Darren Littler, Innovation and Renovation Director at Warburtons, comments: “Our new Christmas wrapping is the latest example of our innovation. The attention grabbing packaging will draw in festive shoppers providing retailers with an opportunity to strengthen sales in the important Christmas season.”
Advocaat brand puts its collar up
First Drinks has revealed its number one advocaat brand, Warninks, is re-launching its festive on-pack promotion giving consumers the chance to win a trip to the famous Icehotel. Promotional bottles (£12.49 rrp) will feature a neck collar, directing shoppers to register online, via a unique QR code or going online. The winner will be rewarded with an all-expenses paid, four day trip for two to Sweden’s Icehotel, whilst runners up will receive Nikita outerwear. Paul Curry, Warninks Brand Manager at First Drinks commented: “Warninks is synonymous with the festive season and witnessed record sales last Christmas. The brand’s popularity continues to grow, up 9% and is now worth £3.4m. As a way of retaining our loyal customers and attracting new drinkers to the category, we have launched a promotion to reward the consumer and create added value to the retailer.” It’s also worth remembering that 63% of Waninks sales take place in December, a 900% uplift.
Speers set for growth
As retailers gear up for Christmas, Heineken is hoping to drive growth within the beers category with its tequila-flavoured premium bottled lager; Desperados. Desperados has seen value sales increase by 475% YOY, delivering incremental sales for retailers and fuelling the development of a new Spirit Beers sub-category which Heineken believes could be a £200m segment by 2016. Dubbed ‘Speers’, the fast-emerging Spirit Beers segment is already worth over £26m, with value sales growing by 262% YOY. At the forefront of this growth is Desperados, which has grown from £5m to being worth over £20m in less than a year, accounting for 75% of Speers segment value. What’s more,18-34 year olds account for over 70% of the brand’s drinkers.
The brand is also tapping into more up-tempo occasions compared to Total Lager, with drinkers preferring to consume the brand at social get-togethers or high energy late night occasions. As a result Desperados is delivering incremental value to the category, thanks to the premium price point the brand commands. Martin Porter, Sales Director-Off Trade at Heineken, comments: “We have seen an explosion of new fruit flavours within the Cider category and the emergence of the Speers segment within Beer and Lager, responds to consumer demand for new and exciting beer drinking experiences. The meteoric growth of Desperados has been integral to the health and development of the Speers category and the brand continues to drive growth and rising value sales.
Desperados is a brand that shoppers actively seek out and, as such, the brand is not reliant on promotions to drive rate of sale. We are committed to nurturing the brand in a sustainable way and we will be launching a marketing programme in 2014 in order to drive trial and increase relevancy amongst the target audience to maintain the momentum of this new and exciting segment.”
Plenty of options
With plenty going on in the kitchen over the Christmas period, local retailers stand to make the most of distress purchases of products such as kitchen role, and as the leading brand in the UK with a 24% market share Plenty is well placed to help retailers clean up. According to brand owner SCA changes in consumer behaviour have resulted in shoppers recognising the benefits of household towel as a core part of cleaning process, and therefore there is a growing desire for products that meet specific needs around the home, especially during the busy festive season. The range includes Plenty The Original One, Plenty The Fat One, Plenty The Big One and now new Plenty Super Strong.
Diageo to drive spirits by channelling food revolution With festive trading reaching the final stretch, Diageo is aiming to revolutionise the category by recreating the food revolution of the last 30 years in the spirits category. It plans to do this by inspiring consumers with, in the words of James Cragg, Diageo GB Head of Category Development, “amazing looking and great tasting drinks, and showing people making great occasions by enjoying spirit drinks.” He says that spirits has a versatility that no other part of BWS can match. He says: “Spirits and mixed drinks tap brilliantly into current key GB consumer trends of creativity and authenticity of ingredients. For too long we have shown people bottle shots in outlets of rows of optics behind bars and somehow expected people to know what to do with spirits. We need to make them want to get involved in creating at home or trying for themselves when out in the on-trade.” Much of this category advice can be found at the MyStoreMatters website. Diageo’s top five Christmas tips
- Top 10 brands should be visible and available at all times
- Ensure your range covers ‘Christmas sensitive categories’ such as cream liqueurs
- Increase range covering gifting, innovation and premiumisation
- Stock different pack formats to suit different occasions
- Inspire consumers across all categories
With the hugely successful ‘Share a Coke’ initiative introduced this summer, CCE is hoping to continue this engagement into the festive period. CCE says its convenience channel-specific 1.75L pack size on Coca-Cola, Diet Coke, Coke Zero, Cherry Coke and Vanilla Coke is easier to transport than the traditional two-litre bottle and with a lower rrp of £1.79, the 1.75L bottle is designed to make take-home formats of cola more accessible by offering value to convenience shoppers. This year, Coca-Cola is running its biggest ever Christmas marketing campaign to further drive sales for retailers over the festive period. Comprising of new TV advertising, festive-themed Coke packs and Christmas truck tour, which will visit‘hotspots’ and cities across the country, which were identified through research carried out by Coca-Cola. A dedicated hub will also be set up on CokeZone, highlighting where the truck will be during the tour. And the famous Sundblom-designed Santa will be adding a festive presence to packaging across both Coca-Cola and Diet Coke two-litre bottles, 330ml cans and multi-packs, encouraging consumers to “Share a Coke with Santa”. Merging two of the brand’s most successful campaigns to date, Christmas and Share a Coke, consumers will also be able to digitally customise a special ribbon-designed bottle to send to friends and family via the Coca-Cola Facebook page.
Grant’s gift pack
First Drinks has unveiled a gift pack to showcase its number three blended Scotch whisky, Grant’s Family Reserve, and it’s out just in time for the run-in to Christmas. The convenience-exclusive gift pack is designed in its classic red and gold livery creating shelf stand-out to attract existing and new consumers. These gift packs will be available to exclusively to the convenience channel.
Grouse gets personal
The Famous Grouse has unveiled its Christmas advert for this year, which will be screen through On Demand services for the first time, enabling the brand to connect with its broader target audience. The brand has also launched a personalised labelling service to allow consumers to make labels for gifts. As well as being available online, the service will be offered in selected stores. Peter Sandstrom , Marketing Director Maxxium UK , commented: “No one makes us feel more famous than our friends and family. This campaign allows customers to create a gift personal to them providing retailers with a unique offer to roll out in store.”
Don’t forget to get the beers in
Although people are more likely to indulge with premium beers in the festive season, the run up to Hogmanay sees a clear shift in drinking habits. That’s the message from McEwan’s brand owner Wells and Young’s. Richard Garden, National Account Manager for the Scottish Off-Trade at the firm, comments: “At this time of year, standard abv products become a preference for consumers with sales of standard ale up by 70% compared to just a 17% increase for premium ales.
Cans of ale are a particularly popular option for drinkers with sales doubling in the run up to Hogmanay, so retailers should be looking at their standard and canned ale offering during this period to make the most of the sales building opportunity. Bucking this trend however is McEwan’s Export which still sees sales up by almost 50% in the days leading up to Hogmanay. This is likely to be due to the beer’s loyal following of drinkers who tend to stick to their “favourite”. “Based on the popularity of standard and canned ale in Scotland between Christmas and New Year we will also certainly be expecting to see McEwan’s Red selling well,” says Green. “As a 3.6% abv can, it fits the bill for what consumers are looking for at this time of year, and having only been launched seven months ago is still creating excitement amongst drinkers keen to try something new.”
Retailers can also take advantage of the heavyweight TV advertising planned for McEwan’s Red which looks set to make the beer one of the biggest ale advertisers in Scotland during the run up to Christmas and beyond, putting it at the forefront of consumers’ minds.
Baileys pouring over TV screens
Baileys will be aiming to boost sales this Christmas with its first festive TV advert for five years. The advert is a contemporary twist on Tchaikovsky’s ‘The Nutcracker’ ballet by critically acclaimed Black Swan choreographer Benjamin Millepied. The two-minute full-length version of the advert is on air now and sees Baileys create a festive up-tempo night out with the girls, told through the re-imagination of a classic Christmas fairytale. The advert sees a stellar cast of Royal Ballet principal dancers perform in a dramatic and engaging retelling of one of ballet’s best-known tales. Kerry Owens, Western Europe Category Marketing Director, Baileys and Portfolio Brands at Diageo said: “We are delighted to be working with an A-list cast and crew to create a truly magical and enchanting take on The Nutcracker. Baileys has undergone a transformation this year with our new slim line bottle and this is mirrored in the advert, which sees a Christmas classic given a fresh, contemporary twist.”
Jack puts his tree up again
This Christmas Jack Daniels is encouraging consumers to celebrate the holidays in the spirit of its home town of Lynchburg with an up-weighted marketing campaign. As part of this year’s festive activity, Jack Daniel’s, part of Bacardi Brown-Forman Brands, will be inspiring consumers with a through-the-line campaign, including TV, and cinema and OOH advertising, as well as radio and digital activity. Continuing to showcase Lynchburg’s festive tradition of making good use of the many whiskey barrels it empties each year, Jack Daniel’s will return to small screens across the country with its renowned ‘Barrel Tree’ advert. The campaign launches on 19th November with a new 60 second spot featuring the people of Lynchburg, gathering together to build the unique 26 foot barrel tree, symbolising good times, good friends and good whiskey. Drawing attention to the Jack Daniel’s portfolio the advert’s end frame will highlight the full range, including Jack Daniel’s Old No.7, Gentleman Jack, Jack Daniel’s Single Barrel and the new variant; Jack Daniel’s Tennessee Honey.
