The past 12 months or so has seen several key trends emerge in the wine sector which have meant that it matters more than ever what you do in store to drive wine sales. 28% of consumers never intended to buy wine before entering the store 1, with only 13% of wine buyers deciding exactly what wine to buy in the first instance, the lowest out of 35 categories 2.
Squeezed budgets, an increasing shift towards mindful drinking, a changing consumer demographic, the return of the On Trade to compete with stores, and longer term consumer aspirations are shaping the way in which stores need to adapt to win in store with wine sales.
Tightening purse strings:
With the current cost of living crisis, there’s a noticeable shift in the outlook of consumers on the value of the products they buy in store, coupled with the rise of larger Grocer’s Buy 6 deals, making it more important than ever to protect your core products and recognise this price shift.
Recognising your favourite products for <£7, clearly pricing your products in tiers on shelf and making meaningful space in store for your best sellers will all help to maintain sales.
Mindful purchases:
We’re increasingly seeing a shift in drinking habits towards more mindful consumption, both cutting back on amount of alcohol consumed and cutting out alcohol for Low/No options altogether. This is coupled with an increased focus from consumers on carbon footprint and sustainable packaging. 66% of consumers feel more positive about companies demonstrating efforts to reduce carbon footprint 3.
A changing consumer demographic:
The number of 18–35-year-olds buying wine in convenience fells by 14% between 2020-2022, marked by a shift to at home consumption due to Covid, together with the rise in competition from flavour forward spirits and flavoured ciders 3.
You can drive wine sales by making wine as accessible and distinctive in store through showcasing wines with fruit flavours/Rosé/sweeter reds and making them more accessible in cost (£4-£6).
The return of the on trade:
There’s a battle to keep consumer’s consuming alcohol at home since the reopening of On Trade venues, and 40% of On Trade occasions also moved to retail during lockdowns 4.
By utilising wine products in store through clear markings and accessibility, you can maintain and increase wine sales during the return of the On Trade. Combining wine and food in deals, communicating wine and food pairings clearly, and linking wine deals to specific events throughout the year all serve to drive and maximise the potential of wine in store.
Aspirational consumers:
Covid and the increase in sophistication and quality amongst consumers has seen a longer-term shift in the category to higher value products and ‘safe steps up’ from their usual wine. Highlighting key growing grape varietals, such as Malbec and Sauvignon Blanc, together with a clear ‘step up’ to <£7 is a great way to appeal to consumers in store. By marking prices clearly and providing key tiers of products on shelves, you can maximise sales from the get-go.
Sources:
1) Nielsen, Value Sales, Convenience, 52 w/e 28.01.2023 2) Nielsen, Value Sales, Convenience, 52 w/e 28.01.2023 3) The Carbon Trust 4) Kantar, Total Wine Penetration 52 w/e 27.11.22