Moods lighten as the days stretch and for retailers, the sales opportunity that comes with brighter skies is one to make them smile, but how can you make the most of the summer occasion? Read on to find out.
by Kevin Scott
Discussions about the weather will be heard in every convenience store every day, but for retailers, the sun’s shyness can have a negative effect on sales in the summer months and so retailers can be forgiven for wanting the temperature to rise for business reasons: the hotter it is, the more chilled drinks people buy, whether that be soft drinks, beer or wine. Social occasions that demand drinks also multiply with the temperature.
Of course, when it comes to maximising the potential of your off-trade sales, careful management of the category, and the missions that incorporate it, are key to success.
Diageo GB has recently launched a new category initiative called My Store Matters, designed to help retailers drive sales of beers, wines and spirits. The new discussion forum and interactive website has been designed to give advice and support to retailers from the convenience sector. Retailers can log onto the website at www.mystorematters.co.uk to register and discover a range of useful solutions to suit any store.
On the website retailers can also learn more about the retailer panel and gain access to exclusive content, including what other retailers think about these proven sales drivers:
- Range and layout – stocking the right range in an easy to shop layout
- Free your spirits – bringing top-selling spirits out from behind the counter
- Permanent visibility – creating off shelf displays to maximise impulse purchasing
- Chillers and pre-mix – stocking the right range and increasing visibility
- Price marked packs – maximise your customer’s confidence to buy in your store
It’s not just Diageo that have been working on helping retailers sell spirits. First Drinks has recently launched ‘How Convenient’, a sprits category strategy created exclusively for the convenience and wholesale channel. How Convenient will provide five clear strategies, making life easier for retailers, providing impetus to maximise sales opportunities and give consumers more reasons to buy. These are: fractionals, versatility, seasonal events, gifting solutions and premium growth, while providing clear solutions to activate them effectively.
From pack sizes to premixes
With pricing being a major factor in spirits buying decisions, smaller bottle formats have become all the rage in the last few months, and in summer that trend is pushed even further. Vicky Mundy, Category Development Manager for RTM & Convenience, Diageo GB, says: “Growth in 35cl spirits and other fractionals supports the evidence that shoppers are increasingly buying within a budget and looking for ways to save on spend during each shopping trip. Sales of 35cl spirits are increasing ahead of the total category and is in 7% growth year on year, with sales of 20cls also performing well at +9% year on year.”
Diageo has a number of 50cl, 35cl, 20cl and 10cl sized products available across its range.
That said, to Ali Brown, Business Sector Controller – Impulse Retail and Off Trade Wholesale, Maxxium UK predicts that premiumisation could be a key sales driver this year. He says: “Premium quality continues to play a key role in the independent off trade as shoppers default to brands with heritage that they can trust and consumers increasingly trade up and invest in high quality spirits. It’s therefore important for wholesalers to offer a range that can allow independents to capitalise on this trend.”
Consumer demand for cocktails is greater than ever and still growing as trends towards at-home entertaining and the desire for new taste experiences continues. As cocktail category experts, Maxxium works closely with a number of major retailers and also in the impulse channel to advise and guide customers in cocktail bay development, to help inspire shoppers.
As the summer kicks in and temperatures rise, consumers often look for refreshing, long alcoholic drinks packed with fruity flavour. This summer sees the launch of Sourz Mango, the first permanent new flavour in the range for two years. It was created as part of our on-going commitment to introducing new taste and flavour experiences for fans, and was chosen by over half (54%) of Sourz’ 505,000 strong Facebook community last year in an interactive poll, so it’s bound to encourage trial.
As well as carefully managing the spirits section, the rise of premix drinks have given retailers another sales opportunity. Growth in the sector is at 33%, and consumers, it would seem, are finally seeing the benefits of ready mixed spirits drinks.
Diageo’s Vicky Mundy says: “Pre-mix drinks and ready-to-serve cocktails are widening the reach of brands and attracting different shoppers. Premix cans are ideal for summer get togethers such as picnics and barbecues, and having them in the chiller ensures they can be consumed that day. 70% of pre-mix is intended to be consumed on the same day of purchase, therefore retailers should ensure it is merchandised in the chiller.”
Maxxium UK is investing heavily in a new proposition for 201: Sourz Fusionz, with its two fruity flavours – Apple Bite and Purple Twist – is a sparkling 4% ABV RTD available in 275ml bottles, and 330ml sleek cans. In addition, Maxxium’s latest innovation from The Famous Grouse is Ginger Grouse – an alcoholic ginger beer at 4.0% ABV available in 500 ml bottles – designed to appeal to a younger consumer group (25-40 years). Maxxium has also recently launched Jim Beam Lime Splash, a 330ml RTD combining Jim Beam White bourbon with lime-lemonade to create a unique refreshing blend aimed at an 18-24 year old audience.
The price is right
With all major spirits companies now using Price Marked Packs, it’s clear that this perceived value is becoming ever more important. As part of its shopper understanding research, Diageo found that PMPs provide reassurance to shoppers that they are getting value for money and a fair price. 90% of convenience customers would consider buying price-marked spirits. Another benefit for retailers stocking PMPs is that 60% of shoppers would not consider buying beer from a convenience store unless it was price-marked. Therefore retailers should tap into this huge opportunity with Diageo GB’s promotional four-packs of Guinness and Red Stripe.
Beer has a huge role to play in summer, and among the many companies hoping for good weather is Heineken.
Heineken says that World Lager is the most buoyant category with the fastest growth rate, worth over £339m in the total off-trade market. Growing at 8.3% in volume and 10.7% in value, this segment offers retailers strong opportunities for sales and profits.
Martin Porter, Sales Director, comments: “Retailers looking to capitalise on the World Lager segment should first ensure they get the basics right.
“When it comes to Beer and Lager the majority of sales still come from leading everyday national brands, with the top 10 packs currently delivering over 30% of all sales and 80% of total market sales. It’s very tempting to stock a range of exotic beers, but in reality, the vast majority of sales still come from the best sellers, which also deliver the best rate of sale. However, once the mainstream beer and lager range is correct, then a wholesaler might want to consider stocking two or three world beers that match their shoppers’ tastes.”
The Cider category too, is one that always carries high expectations into the summer season. Most of the overall category growth is coming from new Modern flavoured ciders, which have grown 131% in the off-trade over the last year. In terms of mainstream brands, Bulmers Crushed Red Berries & Lime remains the No.1 Flavoured Cider in the off-trade in terms of volume, whilst Strongbow recently launched a new pear variant. Retailers looking for success this summer should look at their range of beer and cider and ensure they are mixing the best-selling products, with those in strong growth.
So too in the RTD category. Debs Carter, Marketing Director for WKD says: “Summer is a key time to maximise drink sales so stocking the best-sellers is essential. As well as keeping an eye on the big sellers, it’s also important to keep abreast of the latest consumption trends. The emergence in popularity of the RTD cocktail is probably one of the biggest drinks trends we are currently seeing. This trend first emerged in the on-trade and, now firmly established in pubs, it is being mirrored in the off-trade. RTDs are still very much seen and consumed as drinks in their own right, but they are also now increasingly being used as an ingredient for people making cocktails at home or at social gatherings,” Carter explains. “These sharing cocktails are ideal for summer occasions: they are quick and easy to make, add a dash of summer colour to proceedings and are a fun talking point.”
Picking up on this growing trend, brand owner SHS Drinks has used Augmented Reality (AR) digital technology to create the WKD Cocktail Recipe Maker App. Consumers download the app by pointing their smartphones at special bottle labels or multipack outers, and then create their very own cocktail recipes by selecting their favourite WKD flavour variant.
Price and range key to soft success
Soft drinks sales increase along with the temperature and so in summer retailers should keep an eye on the weather forecast. A good summer means good soft drinks sales, which is encouraging given the sector continues to grow. Summer is the second-biggest calendar opportunity for soft drinks after Christmas, generating an extra 8.4 million trips across the category. The recently published Britvic Soft Drinks Review reported sales of £7.2bn across Grocery, Convenience and Impuls, up 2.8% in value. In Impulse, that value growth stood at 1.6%.
According to Britvic, growing sales ahead of this is down to careful planning and using in-store theatre to generate awareness and interest among customers. As well as making the most of Big Night In, the company behind Pepsi, Tango and 7Up, points out that 67% of snacks and soft drinks are consumed together, but only 13% are sold together. Nigel Paine, Commercial Director – Impulse at Britvic, says: “To make the most of the sales opportunity, snacks could be positioned next to a chiller, or display solutions used to bring the categories together. This not only works for on-the-go linked snacking or meal deals but also Big Night In displays when sharing bags of snacks and two-litre bottles of soft drinks are merchandised in the same display.”
A recent Britvic trial using retailer EPOS data showed that by linking soft drinks to bagged snacks, sales can be increased by up to 16% for on-the-go soft drinks and 34% for take-home two-litre bottles of Pepsi.
“Offering promotions and value for money are key sales drivers,” says Paine. “Research shows that consumers trust price-marked packs more than plain packs, as they deliver clear visible value for money in store. In January, Britvic introduced a ‘20% more’ flash to its 600ml bottles range (Pepsi Max, Diet Pepsi, 7UP Free and Tango), which clearly communicates the added-value to consumers who are looking for a larger soft drink on-the-go. Britvic also has a variety of PMP options available across different ranges of products and packaging options.”
Like other categories, Price Marked Packs continue to have an increasing influence on volume growth. At Britvic, 330ml cans are price marked at 59p across the Pepsi range, and 49p for 7Up and Tango brands. 600ml and 500ml bottles are price marked at 99p and feature on Pepsi, 7UP, Juicy Drench and star performer of the Cold Hot Drinks category, Lipton Ice Tea. Paine says: “With prices displayed clearly on-pack, the latest range delivers visible value for money and is set to offer retailers a POR of up to 49%, further demonstrating the benefits to retailers for stocking this range of PMPs.”
Of course, retailers should remember that customers are willing to pay for a drink that is chilled, and so if the weather heats up, there is less reliance on price and promotion. Soft drinks’ popularity knows no bounds it would seem, something Dave Turner, Coca-Cola Enterprises Trade Communications Manager, agrees with: “There are a great number of different occasions where soft drinks can be enjoyed. Whether a quick drink on the go in between meetings, an accompaniment to lunch or enjoyed at home with friends and family, soft drinks can accompany or enhance most daily activities, whatever we’re doing. There are very few categories that are as expandable and offer as many sales opportunities. A soft drink can be enjoyed during so many different occasions and has the potential to touch consumers at many different points throughout the day.”
CCE has changed its strategy with sharing format Coca-Cola recently, with the introduction of a 1.75 litre bottle on Coca-Cola, Diet Coke, Coke Zero, Cherry Coke and Vanilla Coke. Turner says the format has been introduced to enable retailers to capitalise on shoppers making a single bottle mission to their local convenience store. “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.”
Retailers will also be aware that Vanilla Coke is back on the fixture after a decade-long absence, and Turner is confident it can deliver a sales boost this summer.
At Vimto, Marketing Manager, Emma Hunt recommends retailers concentrate on their 500ml PET range during summer months. She says: “Stocking a range of 500ml SKUs is vital for sales of soft drinks this summer as most consumers will want to consume ‘on the go’.”
Vimto offers a range of 500ml PET bottles as part of its portfolio, including Vimto and Cherry Vimto original and No Added Sugar variants; Levi Roots Caribbean Crush and Tropical Punch, and Weight Watchers Brazilian Orange, Mango and Watermelon. Hunt adds: “Retailers should ensure there are plenty of the big brands available in the chiller for consumers, given that most drinks are consumed within a few hours after they are purchased; particularly by those who are on their way to an impromptu social gathering.”
Vimto will be back on TV in June with a campaign that will reach 75% of all teens & adults in the UK, making it a ‘must stock’ this summer. Levi Roots, meanwhile, is launching its first nationwide on-pack promotion this summer which will give consumers the chance to instantly win £10 notes. Weight Watchers soft drinks has launched a nationwide summer campaign to drive trial of its 500ml RTD still range. The Brazilian, Orange & Watermelon product features in a new Weight Watchers foods TV advert which is currently being screened nationally, whilst a money off coupon deal will feature in the July edition of the Weight Watchers magazine.
Funkin Brazilian
Cocktail mixer brand funkin has launched funkin Brazilian. The new SKU combines a blend of mango, passion fruit and orange juice, with naturally energising Brazilian guarana extract. The growing range of easy-to-use mixers from funkin include popular flavours such as funkin Mojito and funkin Strawberry Daiquiri which are popular for serving to guests at a summer party. Specifically designed to be served with top selling spirits including vodka and rum, placing the mixers next to the spirits will encourage trial and engagement.
Cuvana and Dead Crow
Flavoured beers from SHS Drinks, from SHS Drinks fit the bill perfectly. Cuvana has a light rum flavour with a hint of lime, while Dead Crow is a bourbon-flavoured premium beer. Both beers are packaged in 330ml bottle 4-packs with an RRP* of £5.49. Having been launched earlier this year, this will be the first summer season that these brands have been available.
Beer & Cider tips from Heineken
Range: The top 10 packs account for more than 34% of total category sales, demonstrating the importance of stocking big, well-supported brands such as Foster’s, Strongbow and John Smith’s
Category: 30% of lost sales are due to shoppers not being able to find what they want. Group similar items products together to make it easier for shoppers to find what they are looking for
Merchandising: Put top products on more facings than slower sellers and ensure key brands are located in high visibility positions to act as sign posts.
Merrydown
Merrydown is launching a 6% abv classic medium cider packaged in 500ml bottles (rrp £1.99) and featuring distinctive new livery. Arriving this summer, the new line has been launched following consumer research. The new 500ml bottle pack design features a new logo – a fox dancing a jig and playing an apple core-shaped fiddle, bringing to life the character and sociability of the brand. Based on a traditional Sussex recipe created by the brand’s founders in 1946, Merrydown is produced from eating apples and the words ‘Delightfully Delicious’ are inscribed underneath the Merrydown brand name.
Consumer PR, digital and in-store activity, sampling and outdoor advertising will support the launch – united by the strapline: ‘One Sip. Many a knowing grin explained’.
Schweppes Summer Punch
Schweppes is toasting the launch of a limited edition sparkling Summer Punch, introduced to target the core of consumers buying into the growing lemonade sector. The Summer Punch has been created with adult taste and quality expectations in mind as the perfect refreshing soft drink for sharing from a jug with friends or for drinking over ice from a long glass. Schweppes Summer Punch is available in a two-litre bottle or a 6x330ml can multi-pack. The packaging has a sophisticated design, with attractive summer imagery communicating the great taste and sparkle of Schweppes Summer Punch.
The new variant is now available to retailers so that they can get an early start on the summer and on shelves ahead of the key summer sales period. The launch will be supported by in-store activation focusing on promotional and seasonal displays with lemonade at key summer occasions.
Buxton backs cricket
In celebration of its on-going partnership with the English Cricket Board during The Investec Ashes, Buxton is launching Cricket themed summer packs featuring cricketing heroes Alastair Cook, Stuart Broad and Ian Bell. The pack aims to cheer on the courage of England’s cricketers as they prepare to face the Australian team, while creating a friendly rivalry between the two teams by asking ‘Who’s got the bottle?’ The new design is available from in a 6×1.5L £1.99 price marked and a 6×1.5L non-price marked pack, an 8x50cl multi-pack and a 24/20x50cl wholesale pack. Single 50cl, 75cl, 1l and 1.5l bottles will feature a simplified ‘Who’s got the bottle?’ design.
Irn-Bru looks to the skies for new campaign
Irn-Bru has launched a new summer promotional campaign titled Bru-Skies. As part of the campaign, AG Barr will be giving consumers the chance to win one of over 5,000 prizes every day, including cash amounts of up to £100 and thousands of pairs of bespoke Bru-Shades. The promotion will feature on a number of Irn-Bru regular and sugar-free SKUs including 500ml and two-litre bottles and multipacks of 8 x 330ml cans. The campaign runs from the beginning of June until the end of August.
Bru-Skies follows the success of last year’s Bru-Island on-pack promotion which resulted in sales of over £14m and a 11% year on year increase over the summer months. This year’s promotion will be supported by a dedicated radio campaign, fronted by the latest Irn-Bru weatherman character, Alan McCloud.
“Bru-Skies is set to be our biggest ever on-pack promotion,” said Adrian Troy, Head of Marketing at A G Barr. “Retailers will be able to generate excellent visibility in-store with the POS we are providing, helping to capitalise on the increased demand Bru-Skies will generate.”
