The spirits category is one that has embraced convenience recently, with category management being taken more seriously and price marked packs being introduce, but for retailers, how can they use this advice to boost sales?
by Kevin Scott
Spirits can drive high basket spend and that alone should be a strong enough reason for retailers to examine their fixture and look at whether it is working as hard for the store as it could be. An increased focus from suppliers like Maxxium, Diageo and Pernod Ricard means there is no shortage of category management advice out there.
Ali Brown, Business Sector Controller – Impulse Retail and Off Trade Wholesale, Maxxium UK says that one of Maxxium UK’s most obvious commitments to the channel is demonstrated in the recent expansion of its Impulse Retail field sales team with new resource being deployed into the central belt of Scotland. “Our Impulse brand development managers can assist the independent and symbol retailer with data on the latest market trends, range advice, tailored promotional activity and channel specific point of sale support,” he says.
Brown adds that shoppers are making fewer trips to out of town stores to cut fuel costs and managing basket spend closely. He says: “This presents a fantastic opportunity for convenience retailers and the way they can best maximise this potential is to stock a range of fractional sizes and take advantage of spirits Price Marked Pack propositions as readily as they do across other categories.”
Fractionals are currently demonstrating healthy volume growth and account for approximately 35% of spirits sold in the convenience channel compared to 14% across the total market so stock up. In addition, fractional sizes of 50cl and below and Price Marked Packs offer the convenience retailer the means to differentiate their range and promotional offer from the major multiples. Maxxium UK is investing heavily in both areas in 2013.
On the product front, Maxxium is hoping to build on previous success, launching six new packs on category leading brands The Famous Grouse, Sourz and Jim Beam in both 70cl and 35cl formats available exclusively to the independent convenience channel.
Over at Diageo, the company has recently launched a new category initiative called My Store Matters, designed to help retailers drive sales of their alcohol categories. On the My Store Matters website retailers can also learn more about the retailer panel – a panel of retail experts who help to address the challenges and opportunities in the convenience channel.
Within the spirits category, Diageo recommends retailers follow these steps:
- Stock the right range for your shopper and the mission they are on – something for tonight, ready to serve, smaller sizes (50cl, 35cl and 20cl), PMP and pre-mix
- Ensure your spirits display behind the counter is clearly laid out
- Group categories together (all vodka together, all gin together etc), block vertically so that the shopper can see the full category, and place higher priced and premium products above value products
- Bring top selling spirits brands out from behind the counter
- Chill Pre-mix and ensure it is merchandised in the chiller.
Key trends
- Fractionals – customers either conscious of price or volume are seeking out smaller bottle sizes with 35ml and even 20ml products becoming more readily available.
- Premium – there are also a number of customers only too happy to step up to more premium offerings, giving retailer the chance of higher profits, if they can meet demand.
- PMPs – like many other categories, price marked packs have even found their way into the spirits category. Offering them can give customers an increased perception of value and subsequently increase sales.
