INVESTING IN SPIRITS

“PEOPLE may be looking to spend less but better in the new year, so it’s important to provide customers with affordable, yet high-quality drinks options,” says Lauren Priestley, head of category development off-trade at Diageo.

Priestley also recommends stocking a range of spirits at different prices to cater for a wider customer demographic. This gives customers the choice to trade up or seek value depending on their budget. It also offers the opportunity for retailers to drive repeat purchases.

But what should stores focus on? “Gin is an extremely versatile liquid and forms the base of many popular serves that are synonymous with occasions that take place all year round,” says Priestley.

“The recent raft of innovation from the category also provides an opportunity for retailers to offer a good range of products, which can excite people and encourage exploration of a range.”

Priestley recommends leveraging popular brands, such as Gordon’s, to encourage customers into the category.

Rum, meanwhile, has had growth of 38.4% in the UK offtrade since 2019, according to Campari Group UK’s marketing director, Sandra Brunet.

“Retailers should capitalise on this opportunity in the spirits category by stocking a range of rums,” says Brunet.

“With almost one in four consumers drinking rum in cocktails, this spirit increasingly presents a growth area for retailers.”

Flavoured vodka can help retailers meet the demand for cocktails, too, as well as cater to customers looking to expand their repertoire.

“Flavoured vodka is experiencing the fastest growth within the vodka category,” says Priestley.

“Smirnoff makes up 39% of total vodka sales, with new varieties including Smirnoff Raspberry Crush, Smirnoff Mango & Passionfruit Twist. Both of which offer consumers the option to create simple, but effective twists on classic serves.”

top Tips Merchandising

Promotions and price-marked packs (PMP) are two ways retailers are successfully driving wine and spirits sales.

It is unsurprising that cost is on people’s minds at the moment, and Brunet says 38% of consumers are becoming more observant of pricing and sticking to an allocated budget, and 34% of shoppers look to buy more products on a promotional offer.

Ferrers doesn’t stock premium products due to low demand and is unable to compete with the multiples on price. “We buy quite a lot of PMPs as they sell much better than plain packs,” says Ferrers. “Our premium items just sat on the shelf and the only reason we will bring it in is if a customer asks for something in particular. However, it is very rare that customers request these kinds of products.”

Rodrigo believes it is vital retailers make sure they have promotional barkers visible and in the right place. She adds: “Booker offers a lot of good promotions across a selection of wines.”

Make sure wine and spirits are merchandised and presented properly with the correct labels. How you display your alcohol is extremely important, as well as the prices you can offer. It will help customers know what to select and make sure staff are clued up on your range to make recommendations, too.