Category advice

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Spirits

Market Insight

Category advice2020

 

Gin growth slowing and now driven by flavoured.

MAT Value growth 9.5% v last year. Non Flavoured growth +1% where as Flavoured +26% TY v LY MAT Impulse Value.

70cl Bottles = 53% Value Share

20cl & 35cl = 31% Value Share

5cl = High Growth rate from low base

Make sure that you stock the best sellers, place these next to the bigger versions of the same brand.

Convenience has its highest share of Spirits sales in the week after Christmas to a massive 25%.

This is the sweet spot for C-stores to ensure they have the best choice of brands, formats and price points for shoppers on the way to New Year's Eve parties and topping up after Christmas.

Make sure you take advantage of key celebration nights and stock up, increase visibility and use POS to attract shoppers.

Brits attend on average 9 BBQs a year and therefore are increasingly important to UK drinkers who are having casual get togethers with friends and family.

Make sure you take advantage of summer time drinking occasions during key seasons.

Use POS and seasonal events like BBQ activity and Gin Festivals.

Price Marked Packs accounts for over 45% of impulse spirits sales and are driving growth in the Convenience channel.

These provide reassurance to shoppers for a fair price and it saves them having to ask the price. PMP have added more than 3 times the volume of Non PMP in the last year.

Stocking PMPs are important to gain shopper trust for reliable price points.

RTD's or 'Premix' is a prime opportunity for Convenience stores, with growth of +37% in the last year! The most popular premix brands are Gordon's, Jack Daniels and Smirnoff.

Premix must be merchandised in your chiller as 90% are consumed within 2 hours of purchase.

Source: Nielsen, MAT to January 26th 2019; IRI data, MAT to January 27th 2019; HIM! 2019; IGD 2018

Gin Crazy!

Gin products
  • This is a global phenomenon, providing 88% of all growth in the UK spirits market.
  • There have been 67 new brands launched in the UK in the last 12 months, and Bestway stock over 100 of the best Gins.
  • Brand is important in this increasingly complex category. 55% of all sales came from just 5 brands.
  • Premium gin remains important to shoppers, with nearly 40% of all sales coming from premium brands such as Bombay Sapphire and Tanqueray.
  • Flavoured gin is an important trend attracting new and younger shoppers with Pink at the forefront. This is just the beginning of the flavour boom!
  • It's not all PINK! Orange has become the second fastest growing flavour in Spirits. We recommend Beefeater Blood Orange and Tanqueray Sevilla.
  • Final Tip: Make sure you give Gin enough space on fixture and stock the best selling brands.

Premium products = more profit

Preumium products
  • Premium products are growing in nearly every single category in the market.
  • Shoppers are looking for a better experience, whether this is out of home or at home and premium products fit this need.
  • 48% of shoppers say they think it is worth paying more for spirits when drinking at home.
  • More than half of shoppers do not set a budget for spirits, so there are opportunities for trade up whilst they are in store.
  • Convenience currently under-indexes vs supermarkets in premium sales so stocking the right premium range will deliver more sales value and more profit.
  • Final Tip: Stock the best selling premium brands, especially in Gin, Imported Whiskey and Vodka: we recommend stocking brands that shoppers are looking for: Absolut Vodka, Bombay Sapphire, Tanqueray and Chivas – brands that are all in growth.

Merchandising

  1. Give the right amount of space to the right categories, use our recommended planograms.
  2. Gin is the biggest trend in the UK at the moment, give this more space.
  3. Make sure that the best sellers are visible, at eye level in the middle of the fixture.
  4. Use PMP products to communicate price.
  5. Make sure non-PMP products are clearly priced.
  6. Brand block, as shoppers navigate the fixture looking for brands they know and love.

Ranging

  1. Make sure you have the best-selling brands and formats, we recommend ranging our 'Must Stock' products as a minimum.
  2. Stock PMP where possible, these are driving growth in the channel.
  3. A strong range of fractionals will attract new shoppers.
  4. Keep the range limited to avoid confusion, but make sure that you are offering the products shoppers are looking for.
  5. Premium products will increase basket spend.
Spirits

Must Stock Lines

Category advice2020

 

These are the ‘Must Stock’ lines which shoppers expect to see in a convenience store. By stocking these lines, you will be meeting your customers’ needs and therefore they will visit your store again.

We suggest you stock the following range:

= Premium

Must stock linesMust stock linesMust stock linesMust stock linesMust stock lines
Must stock linesMust stock linesMust stock linesMust stock linesMust stock linesMust stock lines
Must stock linesMust stock linesMust stock linesMust stock linesMust stock lines

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