Value judged by the appeal of promotion

Consumers are changing the way they shop, and to be successful we need to change with them, warned Tony Walsh, senior client manager of Nielsen.

He reported that total alcohol sales in the off trade have risen 5% in the last year, and while price increases can go some way to explaining this, volume is up slightly too so consumers are not buying less in the current climate.

“More and more people appear to be prepared to sacrifice a night out for a night in, effectively shifting consumption from on premise to take home. In beer, in spirits and in wine, the off trade is delivering growth while on trade sales decline, and in the latest 52 weeks 40% of all alcohol sales were made in off trade retailers. That’s pound;13bn over the year coming from the off trade.”

Value for money is a key area for consumers and Walsh noted that in the beer category: “The consumer is not judging ‘value’ in this instance by price per litre but by the appeal of the promotion or the offer. Beer consumers will buy into the offer and the acceptable price per litre is both relative and variable. It’s about offering the right mechanic to tempt a purchase.”

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