There’s no better opportunity to increase your drinks sales than Christmas and from the off-trade to the soft drinks fixtures, there is much that retailers can do to ensure maximum return, with a focus on premium brands recommended this year.
Christmas comes but once a year, so the saying goes, and for retailers it’s most certainly a time of joy. Take the spirits sector for example, sales grew 4.1% in convenience in the 12 weeks leading up to Christmas, and with the major brands focussing on premiumisation this year, that boost could reach even higher.
For Diageo, this means pushing its recently launched Baileys Chocolat Luxe, along with standard Baileys – which is a revelation over Christmas. Smirnoff Gold is another new premium product that will be heavily marketed along with the regular variant, while Diageo will also be getting behind its premium vodka brand Ciroc, so consumer demand is likely to rise. Faith Holland, Category Development Manager RTM & Convenience at Diageo, says: “Premium spirits are selling well in the off trade with an increase of 10% in value sales year on year. They are a must-stock for retailers during the festive season, when consumers are willing to spend more on higher quality spirits for nights in at home, as well as gifting.” So, to that end retailers should ensure more premium spirits are in stock over Christmas. Customers – despite the ongoing slump – are more willing to spend their cash at Christmas. Diageo isn’t the only major spirits company to go down the premium route this year. In fact, Pernod Ricard Pernod Ricard UK has shared its most extensive research ever into the Christmas shopper in a bid to help the entire drinks trade maximise sales of premium wines and spirits during this critical time of year.
The extensive qualitative and quantitative research asked consumers about where they shop, how they shop and, most importantly, what they felt was missing from their Christmas wines and spirits shopping experience. “The results highlighted that despite on-going economic challenges, when it comes to Christmas, consumers are intent on investing more in premium branded wines and spirits over this period”, explains Dan Reuby, Customer Marketing Director, Pernod Ricard UK. “Indeed premium wine now accounts for 25% of all wine spend over Christmas in the off-trade and premium spirits account for close to 40% of all spirits sales in the final week before Christmas”. Interestingly, shoppers indicated that throughout the festive season they increased their shopping repertoire.
“Whilst grocers are used for bulk shopping, consumers are increasingly looking towards convenience and impulse outlets for top up shops on premium wines and spirits and last minute gifting,” says Reuby. This year, Pernod Ricard UK has developed a host of activation to support its premium wine portfolio this Christmas including gift boxes on Jacob’s Creek Reserve range and a gift tin for Campo Viejo Gran Reserva. Maxxium is also pushing the premium end of the market this year. “Christmas is the ideal time to capitalise on high-end drinks,” comments Ali Brown, Business Sector Controller – Impulse Retail and Off Trade Wholesale, Maxxium UK.
“Premium quality continues to play a key role in the independent off-trade as shoppers turn to brands with heritage that they can trust and consumers increasingly trade up and invest in high quality spirits.” Gifting also continues to be an important element in the convenience sector over the Christmas period, so in response to this, The Famous Grouse will also be available in gift cartons in selected outlets, giving customers even more choice in the blended whisky category. The gifting market is always on the lookout for something new and extra special, The Macallan 1824 Series, which includes four expressions: The Macallan Gold, Amber, Sienna and Ruby launched in May 2013. The range will be available in the Christmas market for the first time following the launch, this offers the off-trade with something new and enticing for their consumers over the Christmas period.
Key trends such as flavoured spirits will continue to thrive during the Christmas period also, so retailers should ensure their fixture is well-merchandised with the products that sell year round, as well as those that grow to prominence at Christmas.
