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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38 Beverage Dynamics • July/August 2015 www.beveragedynamics.com udging by the constant drumbeat of media coverage, it would be logical to assume that the most important products on wine and spirit retailer shelves these days are craft beers and spirits, or wines from recently- discovered regions. But retailers know the real deal: a large percent- age of their sales, and an untold amount of profi t, come from the best-known and leading brands in any category. Volume in retailing is almost always king, and making sure customers can easily locate their favorite beverages is something any savvy retailer values. The steady fl ow of profi tability from major brands is only one of the reasons that it makes sense to prominently invest fl oor space and energy into quality displays and other mer- chandising efforts around them. "These are power brands that drive foot traffi c to a store, because high-volume brands are the ones consumers are looking for," says Mitch Cristol, director for off-premise trade marketing, Pernod Ricard. "They want to buy them, so using displays for these products to bring customers into your store is the fi rst step in driving conversion to other products." In other words, there are many reasons why retailers can't afford to neglect these brands, but fi rst and foremost is build- ing a steady stream of interested customers. "Shoppers are not as loyal to a specifi c store as you would hope these days, so in order to encourage loyalty and stay relevant and competitive, retailers still need to provide easy access to the brands that move at pace," says Kelly Georgetti, activation director for mixables at Beam Suntory. "Merchandising is about driving consumers to make a decision at the point of purchase, and our role as a supplier is to try to help retailers sell more." In order to break through the clutter and ensure merchan- dising pieces work the hardest for brands, retailers should em- brace tactics that help the shopper make a buying decision, Georgetti says. "Whether it is understanding what the product is, how to use the product or what occasion it's targeted for, merchandising tools should help shoppers navigate and select. Therefore, it's crucial to delineate the roles different merchan- dising tactics play." The more compelling the brand in terms of story, heritage, volume and seasonality (among other issues), the easier it is for a retailer to justify committing the space in today's clean store environment. Seen as a form of retail theatre, well-selected dis- MAKE THE RIGHT HIGH-VOLUME MERCHANDISING MOVES The brands that pay the bills deserve extra attention, for profi tability and customer motivation. BY JACK ROBERTIELLO istock.com/woodkern

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