Message about value for money is crucial

Simon Harrison, commercial director of wholesale and convenience at InBev, suggested that smaller pack sizes are key sellers.

“A key opportunity is a small pack. Twenty five per cent of all category volume is sold to very frequent purchasers who spend less than £6 per trip, and 73% of beer volume is sold in cans and 27% in bottles. Bulk deals are not the answer and value for money will continue to be the key consumer motivator. Consumers love the reassurance of a price-marked pack, even if some of our customers don’t. Savings on price-marked packs give a double-whammy.”

InBev has tided its PMP on its Stella range to give a more uniformed look and is extending this across its other lines.

Harrison continued: “Market conditions for beer in general, and our channel, will remain challenging. Consumer behaviour has changed considerably, and we have to respond and take the opportunities offered. Communication of value for money is key through our ranging, weight of purchase, promotional mechanics, pack design and even the brands we offer. Keep the consumer at the heart of your commercial strategy.”

He added that consumers have noticed price increases and are considering strategies to cope. “From a grocery perspective – most common stated strategies are looking for more promotions, cutting back on indulgences and switching to retailer own brands.”

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