Consumers are leaving pubs in their droves and heading to the off-licence as the credit crunch bites, according to latest research by market research company Nielsen.
In the last year, on-trade sales have dipped 11% compared to a 3% increase in the off-trade. The research also shows that consumers are cutting back on socialising, with 30 per cent saying they are spending less on going out than in previous years.
Sales of half-bottles of wine are soaring as drinkers respond to warnings about alcohol-related health problems. Supermarkets across London report a 100% rise in sales of smaller bottles and are launching new ranges to meet demand.
Source:Evening Standard 27-06-2008
Sainsbury’s are introducing a style guide and new labelling across its entire own-label wine range, designed to encourage customers to try something new and will be on shelves from August.
Following customer research Sainsbury’s found that shoppers look at the style of wine first before the grape variety or country of origin. As a result, the supermarket has created a colour coded style guide with three styles for red, Light & elegant; Smooth & mellow; Rich & complex, and three for white, Crisp & delicate; Soft & fruity; Complex & elegant.
You only have to go into your nearest supermarket to find that promotional activity is now in full swing as retailers seek desperately to grab as many sales as possible (regardless of margin it seems) over Christmas.
I suspect there won’t be a consumer in the land who ends up paying top dollar for their alcohol this Christmas. It is more difficult to find a beer on full-price than it is one on a whacking great promotion. When the BOGOF first hit the market it did wonders for sales of products that needed a bit of a push but today such mechanisms are ubiquitous. Many shoppers are now unwilling to pay full-price for products such is their addiction to promotions. Their choice of product is determined only by what is on promotion – their only loyalty is to these promotions and not to any specific brands.
The Competition Commission has cleared supermarkets of any wrongdoing in selling alcohol below cost. The 18-month inquiry into the groceries market has ruled out a ban on selling alcohol as a loss-leader.
Pubs will also not be pleased to hear the inquiry has recommended a change in planning laws to allow more supermarkets to be built to provide consumers with more choice in certain areas.