At Palmer and Harvey, we recognise that the right alcohol products at the right prices can have a great effect on your store’s profitability. Alcohol can increase average spend considerably, whilst also increasing footfall.
We stock an extensive range of alcohol lines at fantastic wholesale prices – from spirits to RTDs, beers to cider, we can serve all your alcohol needs and deliver to your door. We work hard to ensure our promotions keep our prices competitive and great value.
Beer and Lager
Palmer and Harvey has a strong portfolio of lagers including the leading brands: Carlsberg, Carling and Fosters, as well as a strong offering of premium world beers such as Peroni, Heineken and San Miguel. We also offer products from the ever-growing ‘mixes’ category – Desperados, Carling Zest and Foster’s Radler, for example.
With challenges around customer loyalty in the convenience beer market, and with frequency of trips in decline, it is not only important to stock the right brands but also to suggest new, more premium offerings. For instance, world beers and lager mix sales continue to be in growth in the market. Larger packs of beer could also be an opportunity, as shopper numbers for these continue to be on the rise – 2013 penetration was up 20.5% on 2012.
The beer market is consolidating. Ten years ago the top 10 brands were worth a third of the market – it is now closer to two thirds, and within the next couple of years it will be worth 80% – make sure you have a core range of the key market-leading beer brands.
- Plan for uplifts in sales – Bank Holidays, major sporting events, seasonal holidays, BBQ’s, etc.
- Make sure leading brands are always kept cold in the chillers – 80% of alcohol purchased from Convenience Stores is consumed within 20 minutes
- Floor stacks can create additional display areas and improve availability, especially when on promotion – but don’t clutter floor space.
- Consider driving sales through cross merchandising or link buys
- Think about in-store theatre to draw people to the right products
Cider is the fastest growing sector in the alcohol market who’s resurgence is being driven by the big everyday and premium brands. We have an extensive range of ciders, ranging from traditional premium ciders such as Westons and Thatchers, to market leaders like Strongbow and Magners and popular flavoured ciders like Koppaberg and Rekorderlig.
Cider sales continue to grow faster than any other brewed category. With the increased diversity of flavours, cider is attracting the female demographic and popularity continues to grow, particularly in the 500ml bottle format, following the trend in the on-trade market.
- Cider has strong regional preferences, make sure you take advantage of the area’s regional tastes
- Chilled products will sell better
- Focus on key brands
- Premium ciders are the major providers of value and cash margin – make sure you have brands like Magners, Bulmers and Strongbow in stock at all times
Palmer and Harvey can provide a wide range of spirits – from premium brands such as Grey Goose to everyday brands such as Smirnoff and entry-level brands like Glens Vodka.
1.2% of shoppers buy spirits within convenience – so there is a substantial growth opportunity. Achieving 2% penetration would add £480 million to the category value.*
As with most categories, price is key. 35cl/20cl sales continue to grow within the convenience industry, expanding ahead of 70cl and 1L formats. 35cl spirits now account for one in four sales, offering an entry price point for premium categories such as Malt Whisky & Cognac.
As a result, many suppliers are now launching price-marked packs – an effective method of communicating value to the end user – in 35cl and 20cl formats, including Smirnoff, Gordons, Bells, Russian Standard and Grants.
- A wall bay location is best suited for this product category
- Try, if possible to allocate at least one full bay to enable clear identification of the section
- Block products vertically
- Locate this section late in the "traffic-flow" – close to till point
- Stock a focused range of Spirits and Liqueurs
- Position deluxe/exclusive lines on the top shelf/shelves, premium brands at eye level and price-fighting/own label on lower shelves. Allow for promotional space at eye level
- Keep the fixture full and bottles dusted regularly
*Source: HIM 2013
When it comes to wines, we at Palmer and Harvey offer an extensive range from all over the world – from the USA to Australia; South Africa to France; Spain to Italy – and much more.
White wine dominates the Total Off Trade with a 46% market share within Off Trade. It is also the fastest growing type of wine. In terms of country of production, Australia is number 1 when it comes to sales in the Off Trade. Spain is the fastest growing.
For every 27p spent on beers, 36p is now spent on wines. Market growth is being driven by ‘New World’ wines (Australia, South America, South Africa), supported by major advertising and promotions.
Like Pre-Mix cans, single serve wines (187ml) continues to be the largest contributor to value growth, with £1.6m incremental sales¬.
With wines, it is important to have a chilled range. Research shows that most alcohol impulse purchases start to be consumed within 20 minutes when purchased from a convenience store – they are purchased for “now” and not “later” as may be the case when purchased from a supermarket.
- Use your chillers to display a range of white wines for customers who want a table-ready bottle
- Don’t neglect wines over £6.00 per bottle – customers will trade up for special occasions
- Feature promotional offers both on the fixture and by having floor displays.
- Try multi-buy promotions and “wines of the month” deals
- But don’t simply feature cheap wines in promotions – this will encourage down-trading and these will sell anyway, regardless of promotions.
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Source: AC Nielsen Total Off Trade 52wk w/e 20/07/13