The cost-of-living crisis means consumers continue to spend their nights at home and savvy retailers are set to prosper.
With many shopping budgets squeezed in the current climate, nights in with family and friends continue to prevail as an alternative to a night out.
“As a result of the increased cost of living, 20% of shoppers are drinking less out of home with 13% saying that they are drinking more at home [Dunnhumby Bespoke Shopper Survey Research BrewDog Craft Beer August 2022],” says Caitlin Brown, Category Executive, BrewDog. “This is great news for convenience retailers and wholesalers, especially as many of these occasions are likely to be impromptu, so creating dedicated displays in-store and promotions on linked purchases can drive impulse sales.”
BrewDog has identified four different occasions which drive Big Night In missions in-store for Craft Beer and Premium Lager, based on data from Kantar Insights Occasion Deep Dive September 2021.
The most popular ‘Night In’ mission (63%) was spent solo or as a couple. The firm suggests four-packs are well suited to this occasion.
The brewer states that shoppers on the Regular/Everyday Drink mission (34%), which is more habitual, rather than a special event, may be looking to moderate their drinking by supping on alcohol-free beverages.
“Research has also shown that alcohol-free spirits have grown 9.2% in the off-trade [Off Trade Nielsen Discovery MAT 27.01.24],” says Lauren Priestley, Head of Category Development Off Trade at Diageo GB. “This has provided people with more choice, meaning they can enjoy socialising moments at home without feeling as if they are missing out on the experience. In fact, Diageo’s ‘House of Zero’ portfolio spans across some of our most popular brands, including Gordon’s, Tanqueray, and Captain Morgan.”
Another alcohol-free contender for the Big Night In audience is energy drinks. Helen Kerr, Associate Director of Portfolio Development at CCEP GB, says: “The energy drinks market is booming and innovation is key to driving this momentum.” The firm extended the portfolio of its £45m Relentless brand with the launch of a new tropical flavour earlier this year. Relentless Fruit Punch comes in a bright-pink £1 price-marked 500ml can and joins the existing line-up of Origin, Cherry, and Passion Punch, alongside its Zero Sugar range of Watermelon, Peach and Raspberry. “This latest arrival follows the introduction of the Relentless Zero Sugar range, which has generated nearly £9m since launching in summer 2022 and continues to deliver double digital volume and value growth,” says Kerr.
Meanwhile, BrewDog suggested that Planned Social Occasions (39%), such as bigger gatherings at someone’s home, and consumers in a Party Mood (36%) could be catered for with larger multi-pack formats and BrewDog’s Mixed pack.
“The ‘Big Night In’ occasion typically sees consumers gravitate towards larger packs of beer and cider than they would normally purchase, in preparation for hosting friends and family at home, or to treat themselves to something extra special,” agrees Alexander Wilson, Category & Commercial Strategy Director at Heineken.
“Convenience retailers can capitalise by stocking small- and mid-sized packs of new beer and cider launches, such as Cruzcampo, Birra Moretti Sale di Mare and Strongbow Strawberry, to drive interest to the fixture when customers are hosting, where bigger multipacks might be warranted, and people are more likely to buy something new to impress guests,” says Wilson. “When looking at smaller packs, Foster’s and Strongbow lead value sales in this segment [ibid], while Heineken, Desperados and Birra Moretti are also worth stocking in this format.”
Strong stuff
Cider is also reaping the benefits of more people staying in. Aston Manor has attributed the success of its premium-quality cider brand, Knights, to several factors, including the cost-of-living crisis, which has caused many shoppers to change their spending habits. “As part of this, more customers are purchasing cider rather than spirits [Kantar | Take-Home | Alcohol Spend Gains Loss | 12w/e 17 March 2024], which is speculatively due to less disposable income,” says the company.
Five of the top 10 brands powering growth within the Beer & Lager and Cider categories have an ABV of 6% or more [SmartView Convenience TWC, Volume and Value Sales, 13 w/e 21.04.24], including Knights Cider – which has an ABV of 8.4% – highlights the company.
Red Star Brands has picked up on the trend for quality high-strength drinks too. “Changes in drinking habits are seen across the board with at-home, or at least out-of-pub/club drinking going from strength to strength,” says Business Development Manager Scotland, Andy Ferguson. “But the change in location does not equal accepting low enjoyment alternatives. Scottish consumers demand both quality and value and Four Loko provides two pub/club strength, high-quality serves in every can.” The vodka-based RTD range started out with just four lines, but now extends to nine, including the latest addition, Pink Melon.
When it comes to wine, stocking core signpost brands will boost shopper trust and ensure that customers keep returning to your store when they need a bottle for tonight, claims Accolade Wines. And what’s more – nailing the right price point is essential. “Crucially, the majority of sales in convenience come from the core mid-range price point between £6 to £8 and should be at the heart of every retailer’s range in-store,” says Tom Smith, Marketing Director – Europe, at Accolade Wines, which owns the Hardys, Echo Falls and Jam Shed brands.
Trading up
Premiumisation of wines rose as consumers became more engaged with their night tipples and explored more during lockdown and Accolade expects this trend to continue. “While wines priced at £9 aren’t performing as strongly as the £6-9 range, many shoppers will still be looking to trade up for certain occasions,” says Smith.
The chance to premiumise sugar confectionery is not to be missed either, says American candy firm Ferrara.
Ferrara claims that its Nerds portfolio is well placed to help retailers capitalise on shoppers who are increasingly looking to trade up during Big Night In social gatherings. “For years, innovative retailers across the country have made themselves destinations for US confectionery and have seen first-hand the premium prices shoppers are willing to pay for these products,” says Ferrara. “Nerds has been key to this growth and the brand is showing no signs of slowing down.” Over the past year Nerds Candy has outperformed the UK non-chocolate confectionery market with value sales up by +65% year on year and annual sales of £7.4m [NIQ 52 weeks ending 20/07/24].
At the other end of the pricing spectrum, Hancocks is keeping sweet-toothed consumers smiling. “The Big Night In has remained popular even after Covid due to the cost-of-living crisis,” says Kathryn Hague, Head of Marketing at Hancocks. “People are choosing to stay home with family and friends without having to spend a fortune to enjoy themselves.
“Instead, they rely on budget-friendly snacks and treats which is why it’s important for retailers to stock up on products such as PMPs [price-marked packs] and sharing options.”
Price-marked share bags are essentials for Big Night In ranges, offering customers an affordable way to treat their friends or family while they’re watching films or sports, playing board games or having a catch-up at home. Bonds of London stocks a wide selection of price-marked pick n mix share bags, each carrying a £1.25 price on them, making them stand out to budget-conscious shoppers. The range includes British favourites like Jelly Beans, Fruit Pastilles, Giant Strawbs and Midget Gems.
Snacktastic solutions
For those with more traditional tastes, popcorn is the ultimate companion for a movie marathon. KP Snacks’ Butterkist popcorn brand is really making the most of the Big Night In opportunity by teaming up with Channel 4 across its film programming.
The initiative will see Butterkist feature prominently across Channel 4’s film premiere programming and video on demand. Four different five second TVC blips and one 10 second ident cleverly integrate popcorn into various movie genres and scenes. In one blip, two pieces of Butterkist popcorn are shown together in a romantic moment while, in another, a horror scene results in a funny popcorn jump scare reaction.
Rachael Rayner, Brand Manager, KP Snacks, says: “Butterkist is perfectly positioned to reinforce the association of popcorn with movies and continue driving category growth.”
The brand is worth £56.3m growing at 5.3% [Nielsen IQ, Total Coverage, Total Value, MAT 13.07.24], and is one of KP Snacks most popular brands, dominating the popcorn category. At nearly twice as large as its nearest branded competitor, Butterkist enjoys a 35.4% market share [ibid].
With 83% of purchases in the occasion pre-planned [Bolt Tracking MAT Q3’22 (Q4’21 – Q3’22) data], there is a massive opportunity for retailers to gear their displays towards the Big Night In occasion, especially towards the end of the week when more nights in take place, advises PepsiCo.
As consumers come together to connect and socialise, many will also be looking for larger pack sizes of their favourite savoury snacks that they can enjoy together, claims the firm. “Within our own portfolio, sharing packs across our core Doritos range (+1.4%), Sensations (+2.2%), and Walkers crisps (+10.0%) have been performing strongly [Nielsen IQ, Total Salty Snacks YA value sales in Independent and Symbol stores in GB for the 52-week period ending 15.06.24],” says Nic Storey, Senior Sales Director, Impulse & Field Sales at PepsiCo. “There is an opportunity here to tap into the popularity of these brands and drive sales, in particular for those looking for a sharing format.” Ensuring that a range of options are available across secondary sitings will mean that shoppers deciding to have a last-minute Big Night In will turn to convenience for their favourite evening treat snacks, he adds.
Stock an enticing range of alcohol, sweets and snacks and you’ll be all set for a Big Night In win.
The autumn months are the perfect time to make the most of the Big Night In occasion as shoppers choose to spend more time cozying up at home. It’s a great chance to try and drive sales in what can sometimes be a quieter time of year, just before the Christmas build-up starts in earnest.
We try to make the most of the Big Night In occasion by pushing our Snappy Home delivery service. We’ll put posts on social media saying things like: ‘It’s getting cold out there, why not stay warm and enjoy a Big Night In on the sofa? We’ve got you covered!’ We also try to drive excitement around the occasion and push our Snappy Shopper service with fun videos on TikTok and I’m proud to say that we’ve just received our 1,000th like!
When it comes to the type of products our shoppers want for their Big Nights In, BWS, Crisps and Confectionery are the biggest sellers. Our crisp sales are huge and driven by multi-pack formats which allow shoppers to mix and match different flavours. The Walker’s Variety packs are one of our top sellers, especially the salty flavours. Salt and salt variants are a big trend around here.
