In Scotland at least, this could be a summer to remember. Commonwealth Games, World Cup, Homecoming, and hopefully buckets full of sunshine – so for retailers, there is an opportunity to be seized like never before.
In our cover story this month, the summer of 2014 is described as a ‘once in a lifetime opportunity’ for retailers. That’s a bold statement, but there’s no doubt that the coming months offer convenience stores an unprecedented chance to boost sales by engaging with customers, offering value across the off-trade section and the soft drinks chiller. As every good retailer knows doing the same thing year in and year out doesn’t work. Consumers trends change, and one of the biggest of late is shoppers making more frequent, smaller shopping trips. Post-recession, consumer confidence is at a three-year high and one of the categories that has benefitted from this is beer and cider – which had recruited 423,000 new UK shoppers.
With cider and beer consumers increasingly looking for drinkers to meet the needs of different drinking occasions, the desire to moderate alcohol intake is becoming increasingly important and Heineken believes the segment represents a £300m growth opportunity in the UK and could account for 5% of total cider and beer sales within the next ten years. The fast-emerging Spirit Beers, or Speers, segment is already worth over £30m.
Desperados has grown sales from £5m to being worth over £22.3m in less than a year, and has recently added a new Desperados Verde. Another new launch this year has been Foster’s Radler with ‘Lime & Ginger’, which comes in 2% and alcohol-free variants, and Heineken hopes this will springboard from the success of Foster’s Radler, which launched last year and has sold 17 million bottles. On the cider front, the growth is coming from flavoured lines and Heineken’s Bulmers and Strongbow brands have both introduced new flavours this spring.
At 2.8% abv Bulmers Cider Five Fruit Harvest and Bulmers Cider Indian Summer have been developed to offer shoppers and consumers a choice of lower alcohol ciders. On top of this, Heineken has launched Old Mout, a new, premium fruit and cider combination offering a 4% abv range of flavoured ciders. Spirit of summer Spirits too, can blossom in summer, with pre-mixed products certain to be in demand this year after growing 14% since summer 2012. Paul Isherwood, Head of Category Development – Off Trade GB, Diageo, points to fractionals as being another area retailers should be on top of. He comments: “As with pre-mix, smaller bottle sizes such as 10cl and 20cl see an increase in sales over summer, with consumers looking to bring smaller quantities of alcohol to outdoor social activities, such as barbecues and picnics. Retailers should make sure that they stock a range of fractional spirits to ensure shoppers can pick up product on their ‘something for tonight’ shopping mission.” As well as its leading lines, this summer Diageo has hopes pinned on its new flavours range, which includes Gordon’s with a Spot of Elderflower, which is also available in pre-mix cans.
Sparkling sales Many retailers have been noting that wine has now overtaken beer in sales value – and within this, the growth within the sparkling wine category is an area which shouldn’t be ignored. It is being driven by younger, more affluent shoppers entering the sector, who are recognising sparkling wine as a quality product. Prosecco is driving growth by attracting new shoppers and contributing to overall category growth, however Spanish sparkling wine represents 35% of the category. So, retailers are encouraged to stock both Italian and Spanish sparkling wine in the chiller to maximise impulse sales and add incremental value from those shoppers who are buying for immediate consumption, as shoppers do not substitute and will either be on the lookout for a Cava or Prosecco. As the market leader in sparkling wine, Freixenet is a name that shoppers recognise and will proactively seek out in store.
For many shoppers, Freixenet is the brand they will consider purchasing due to the very loyal consumer base. The Freixenet Cordon Negro 75cl bottle remains by far the most popular option for Sparkling Wine shoppers. The range also includes 20cl bottles which are perfect for shoppers looking for a personal everyday treat or gift for a friend. Freixenet recommends offering a small but tailored range to cater for all needs, from beers and ciders to Sparkling Wine. Retailers are recommended to offer at least a Cava, Prosecco, Champagne and a Sparkling Rosé – all of which should be chilled. Continental Wine & Food (CWF) agrees that Prosecco is forecast to continue its upward growth and become ever more popular. It’s not all about sparkling though and CWF is pushing a number of lighter wines this summer, including its Straw Hat and Silver Bay Point brands.
A spokesperson says: “We know that there is an increasing demand from consumers for wines that are lighter in style and in some cases with a lower abv. This can be for lots of different reasons – health benefits, reduced calorie and alcohol intake or simply wanting a lighter wine for a social occasion. Lighter wines are also very popular during the warmer spring and summer months.” Backing events On the soft drinks front, much of the summer activity will centre around the big events taking place. AG Barr brands, for example, are bound to be among the more prominent in Scotland this summer with its sponsorship of the Commonwealth Games.
In addition to investing a record £12m in brand support in the run-up to the Games, the company is set to broaden the appeal of its top-performing brand portfolio. As part of this activity, AG Barr has launched a new range of special packs for its Barr range to celebrate the brand’s role as the Official Soft Drink of the Games. The packs feature the Glasgow 2014 logo and are set to draw shoppers’ attention to the soft drinks fixture and build on the success of the Barr brand. “We are investing unprecedented levels of marketing support around Glasgow 2014 to allow us to work closer than ever before with our retail partners,” says Adrian Troy, AG Barr’s Head of Marketing. “However, the retail opportunity is not just for the 11 days of Glasgow 2014. Our marketing activity will enable retailers to use AG Barr brands on their soft drinks fixture for six months to engage shoppers and harness the excitement which is already building around this memorable sporting occasion.”
AG Barr is also enabling retailers to make the most of the fast-growing low calorie cola market with the launch of Barr Xtra Cola, a great-tasting new variant. Irn-Bru is also set for a busy summer, which has kicked off already with its huge ‘Cheer We Go’ promotion. Over at Coca-Cola Enterprises and all eyes are on that other major summer event, The World Cup. Dave Turner, Trade Communications Manager at Coca-Cola Enterprises, comments: “There is a real opportunity for retailers to tap into football fever and encourage shoppers to host their own World Cup barbeques. Creating a signposted space in-store dedicated to the FIFA World Cup, and merchandising soft drinks alongside complementary categories – such as other barbeque essentials – on the fixture, is an effective way for retailers to grab shoppers’ attention as they look to make their World Cup parties complete.
Using World Cup point of sale and targeted offers will also allow retailers to capitalise on the excitement of the event during June and July.” Turner recommends stocking even the larger sharing 1.75 litre range on Coca-Cola, Diet Coke, Coke Zero, Cherry Coke and Vanilla Coke in chillers, if space permits. He says: “We would recommend keeping them cold in chillers, as they are often consumed soon after leaving store. The 1.75L Coca-Cola and two litre Sprite, Fanta and Dr Pepper formats are appropriate for barbecue occasions as they are perfect for sharing with a group.” Vimto is getting set for summer, with a major multi-million pound marketing investment planned over the summer months to ensure retailers can capitalise on the seasonal peak and give them the confidence to continue to stock the brand and help encourage trial for existing and new Vimto consumers.
The brand has recently launched promotional packs on its squash and fizzy ranges in the Cash & Carry and Wholesale channel. Both the 725ml squash and two litre fizzy in Original and No Added Sugar will be available with a £1 PMP. The price mark packs allow convenience store retailers to stock a popular brand with an appealing offer for impulse shoppers. In April, Vimto extended its Still range with a limited Strawberry Still variant which comes in a 500ml.
Crabbies enjoys fruits of its labour
RTD brand Crabbie’s has major plans this summer, with the launch of Crabbie Fruits. Zesty Lemon, Raspberry & Rhubarb and Black Cherry variants are set to hit shelves. Made with natural fruit ingredients and free from artificial colours and flavours, the range will be available in 330ml bottles with a 4% abv, designed to be consumed straight from the bottle. The launch will be supported by a national sampling campaign at a range of summer events across the UK. Halewood International will be rolling out activation kits within the off-trade to help drive sales, including FSDUs, bus stops and shelf wobblers.
Untameable campaign from Bacardi
Bacardi is aiming to boost sales this summer with a multi-million pound campaign that will reveal and pay homage to the brand and family’s heritage of over 150 years of uncompromised passion. With integrated TV, digital, out-of-home and PR activities, “Bacardi: Untameable Since 1862” aims to inspire consumers to pursue their passions and showcase their own ‘Irrepressible Spirit’ – just like the Bacardí family has done for the past 152 years.
High hopes for 100 days of summer
Highland Spring is following last year’s Here Comes Summer campaign with a new 100 Days of Summer promotion that gives participants the chance to win a variety of different prizes every day for 100 days. From cool bags, kites, picnic blankets and swing ball sets to digital cameras, BBQs, Ray Ban sunglasses and travel speakers, prizes will be sure to give consumers a reason to be cheerful this summer. The promotion, which features on all major Highland Spring retail packs and on selected cash and carry packs, will be supported with a PR and advertising campaign. Claire Wilson, Marketing Manager at Highland Spring, says: “Summer is the biggest opportunity for retailers to boost their bottled water sales and after the amazing weather last year, consumers and trade alike are now looking towards summer 2014 with optimism.”
Oasis expansion
Coca-Cola Enterprises is making a significant investment into its Oasis juice drink range with the launch of a new tropical variant for independent retailers to help recruit teens to the brand and drive sales. A Pineapple Rush variant is being added to tap into the popularity of tropical flavours and appeal to teens and young adults. The new flavour – which is available in both plain and £1 price-marked packs – follows the successful launch of Oasis Mango Medley last year. As part of the brand refresh, Oasis is investing in further innovation by launching Oasis Mighty Drops to selected retailers this year, which will be supported with a wider roll out in 2015. Available from mid-May, the 56ml packs of super concentrated squash are available in Mixed Berry, Mango and Raspberry Lemonade flavours and can be added to water while on-the-go to create a refreshing juice drink. With a pack format that is portable and easy to store in a handbag or gym bag, the launch aims to unlock new consumption occasions and will be available to retailers in May. At an rrp of £2.49, Oasis Mighty Drops enables retailers to offer shoppers a value option for enjoying a drink on the move, with a competitive 10p per serve price point when sold at the rrp.
