Not a lot of customers buy spirits, but with such a high price point, you only need a few extra sales to start noticing a difference, which is why we’re looking at recent trends that can help you increase your sales.
by Kevin Scott
When it comes to spirits, an incredibly low 1.2% of the public make a purchase in their local convenience store. Given the inclusion of spirits boosts basket spend from £5.53 to £15.31, it is a category well worth exploited – and the way to do that is by making the most of current trends such as flavoured vodka and smaller bottle sizes across all spirits.
The category overall is growing faster than total alcohol, but Matthew Critchlow, Director of Sales, Convenience (BBFB) says: “With 36% of shoppers preferring not to purchase spirits from convenience stores, instead buying these items during their main shop, and 55% citing price as their main purchase barrier, it’s essential to get your range, merchandising, pricing and promotions right in order to drive sales.”
There are a number of trends that BBFB cites as being critical to boosting sales – the first of these, perhaps unsurprisingly, is the Big Night In. Critchlow says: “ In part, this is a reflection of the challenging economic situation but also due to the change in the cultural perception that staying in with friends and family is no longer seen as a poor counterpart to going out.”
He also brings up the increasing trend for making cocktails at home, and with Bacardi being the leading rum brand in the UK, this is good news for the company.
The main trends though, are in fractionals and flavours, and to the former, Critchlow says: “With consumers’ disposable income stretched, fractionals provide an entry price suitable for any consumer and is a great way to boost spirit sales. Fractionals also offer consumers a format more convenient for casual drinking occasions when litre bottles are not suitable or are seen as too expensive. Often smaller formats appeal to young adults, who are likely to be purchasing spirits for an event, such as a party, rather than stocking up cupboards.”
At BBFB, Finlandia vodka recently launched a new smaller bottle for two of its most popular variants – Finlandia Classic and Finlandia Grapefruit, both of which are available from wholesalers now. Eristoff Vodka which is currently growing at +58% in the Convenience sector, has also launched a 35cl bottle, available exclusively to the convenience channel.
With growth of 11.1%, smaller formats are pushing things harder than 70cl bottles, and there is the added benefit in convenience stores, of half-bottles being lighter to carry home. Price, after all, isn’t everything.
John Bradbury, UK Sales Director at Whyte & Mackay adds: “Any growth we are seeing within the spirits market in convenience is being driven by fractional sizes so it’s vital that the retailer stocks a selection of 35cl bottles.”
According to Bradbury, while vodka accounts for 60% of fractional sales, it is also prudent to stock single malts, such as Jura 35cl, within this range as the lower price point is more accessible to people and also means it’s a less risky purchase for a first time buyer. He also highlights the introduction of Cockspur Spiced and the Vladivar flavoured vodka range in 50cl bottles.
The smaller formats are also being pushed by Pernod Ricard. To help retailers tap into this trend, seven of the company’s brands are now available in 35cl format – Beefeater, The Glenlivet, Absolut, Jameson, Malibu, Chivas Regal and Martell. Dan Reuby, Customer Marketing Director, Pernod Ricard UK, says: “The 35cl format offers a strong profit opportunity with 31% of shoppers stating that they would try premium spirits if retailers stocked smaller formats. Retailers can look to stretch consumers’ repertoire with education at point of sale and encourage them to experiment with mixed drinks at a lower cost. The format encourages trial and is a convenient size for on–the-go purchases with 54% of convenience shoppers travelling to outlet on foot.”
Pernod Ricard UK’s recently launched Premium Edge initiative helps retailers unlock the premium spirits potential for their business. The initiative is underpinned by four simple concepts, ‘Make it Available’, ‘Make it Easy to Find’, ‘Make it Compelling’ and ‘Make it Great to Drink’.
Flavour country
As a specific category, vodka (excluding flavours) continues to be popular and has seen growth in the off-trade with an increase of +9.4% in value year-on-year, with premium vodka Absolut also up in both value and volume. Whilst the growth of flavoured vodka in the total off-trade has slightly flattened out, Absolut – with its powerful legacy in the flavoured vodka market – bucks this trend with +7.5% value growth year-on-year, with core flavours, Absolut Raspberri and Absolut Citron, driving this growth.
BBFB’s Matthew Critchlow, adds: “Flavour innovation remains a key driver within the spirits category and is something BBFB has responded to with a range of recently launched NPD, including Jack Daniel’s Tennessee Honey. The new variant from the brand follows a successful stateside launch last year and is the first new expression from the Jack Daniel Distillery in more than a decade.”
When it comes to spirits, following American trends tend to be followed in the UK, and flavoured spirits stateside command a healthy share of the market.
As well as the Jack Daniel’s extension, BBFB has recently placed Southern Comfort Bold Black Cherry and Bacardi Oakheart into the market.
