Beverage Dynamics

Beverage Dynamics July-August 2015

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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High Volume Merchandise 40 Beverage Dynamics • July/August 2015 www.beveragedynamics.com handy is important. For the older custom- ers who know what they want and aren't going to change, it makes sense too," he says. Large stackers of Miller Lite, Bud- weiser and Yuengling "seem to work like crazy for us," he adds. "Especially on weekends." According to Gossett, while about 80 percent of beer shopping trips are planned, even the 20 percent of un- planned purchases are important. "Dis- plays are an opportunity to remind those shoppers about needs they may have forgotten to think about for their shopping trip," he says. Displays also give retailers an oppor- tunity for cross-merchandising, to sell shoppers multiples of products in multi- ple categories and create occasions. For example, displays can help sell a "plus one," such as a 12-pack plus a different six-pack or a 12-pack plus snacks. Wal- lett points out that consumers tend to look at most displays and even if they don't buy right away, they are more likely to take a display product off the shelf later if it provides awareness and inter- rupts their trip. BUILDING A BIGGER PURCHASE Making it easier for customers shopping for their necessities is the main reason for significant high volume displays, but there's also building incremental sales. It's something the Sut- ter Home "Build a Better Burger" campaign has been doing for 25 years. But recently the approach changed, according to Nyberg of Trinchero Family Wines. Perhaps the longest-running retail program in the wine industry, the burger promo's relevance needed ad- justing to market and merchandising realities. Offering $100,000 for the award-winning recipe might have spurred awareness of Sutter Home, but did it actually attract customers to buy the wine and other burger-mak- ing items? "It's been super successful and retail- ers look for it in May and June, but the question was, 'Is the consumer looking to enter a recipe contest or looking for a solution? What's the hierarchy of messaging?'" Nyberg says. "For the first time we didn't lead with the con- test, but instead promoted 25 years with 25 recipes customers can achieve in 25 minutes or less (and by the way, here's the recipe contest). This is more attractive to retailers because it commu- nicates with more people in the store." Retailers often want merchandising that sells more than one item, especially given the contemporary clean store ap- proach, she says. More importantly, mer- chandising that sells rather than amuses is far more important on the store floor. "We all as marketing folks want to find the big idea, but a lot of times you come up with the most creative idea, forgetting the thing you're trying LEADING BRANDS OF WINES (Thousands 9-Liter Cases) 12/13 Brand Category Supplier 2013 2014p %Chg %Cat* 1 Franzia Winetaps Table - Domestic The Wine Group 25,000 25,170 0.7% 8.4% 2 Barefoot Cellars Table - Domestic E & J Gallo Winery 15,870 16,420 3.5% 5.5% 3 Carlo Rossi Table - Domestic E & J Gallo Winery 12,120 11,890 -1.9% 4.0% 4 Sutter Home Table - Domestic Trinchero Family Estates 10,750 9,880 -8.1% 3.3% 5 Woodbridge Table - Domestic Constellation Brands 8,970 9,150 2.0% 3.1% by Robert Mondavi 6 Twin Valley Table - Domestic E & J Gallo Winery 9,100 9,100 0.0% 3.0% 7 Yellow Tail Table - Imported Deutsch Family Wine & Spirits 8,550 8,300 -2.9% 2.8% 8 Peter Vella Table - Domestic E & J Gallo Winery 7,050 7,050 0.0% 2.4% 9 Beringer Table - Domestic Treasury Wine Estates 5,406 5,610 3.8% 1.9% 10 Livingston Cellars Table - Domestic E & J Gallo Winery 5,520 5,430 -1.6% 1.8% 11 Charles Shaw Table - Domestic Bronco Wine Co. 4,983 5,000 0.3% 1.7% 12 Black Box Table - Domestic Constellation Brands 3,410 4,015 17.7% 1.3% 13 Almaden Table - Domestic The Wine Group 4,000 3,880 -3.0% 1.3% 14 Cavit Table - Imported Palm Bay International 3,555 3,590 1.0% 1.2% 15 Arbor Mist Table - Domestic Constellation Brands 3,576 3,365 -5.9% 1.1% (*) Percentage of wine category. (p) Preliminary. Source: Beverage Information Group, Handbook Advance 2015. LEADING BRANDS OF DISTILLED SPIRITS (Thousands 9-Liter Cases) 12/13 Brand Category Supplier 2013 2014p %Chg %Cat* 1 Smirnoff Vodka Diageo 9,580 9,310 -2.8% 12.9% 2 Bacardi Rum Bacardi USA 7,831 7,452 -4.8% 28.2% 3 Captain Morgan Rum Diageo 5,730 5,755 0.4% 21.8% (excludes Parrot Bay) 4 Jack Daniel's Straight Brown-Forman Beverages 4,805 4,887 1.7% 26.0% 5 Crown Royal Canadian Diageo 4,296 4,275 -0.5% 27.7% 6 Jim Beam Straight Beam Inc. 3,976 4,192 5.4% 22.3% 7 Absolut Vodka Pernod Ricard USA 4,440 4,135 -6.9% 5.7% 8 Svedka Vodka Constellation Brands 3,950 4,080 3.3% 5.6% 9 Fireball Liqueurs Sazerac 1,870 3,895 ++% 16.5% 10 E & J Brandy E & J Gallo Winery 3,150 3,135 -0.5% 28.4% 11 Jose Cuervo Tequila Proximo Spirits 3,030 3,082 1.7% 21.5% 12 Grey Goose Vodka Bacardi USA 2,900 2,868 -1.1% 4.0% 13 Skyy Vodka Campari America USA 2,850 2,805 -1.6% 3.9% 14 Pinnacle Vodka Vodka Beam Inc. 2,756 2,675 -2.9% 3.7% 15 Burnett's Vodka Vodka Heaven Hill Brands 2,350 2,608 11.0% 3.6% (++) Greater than 100%. (*) Percentage of spirits category. (p) Preliminary. Source: Beverage Information Group, Handbook Advance 2015.

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