Home' Convenience and Impulse Retailing : April May 2014 Contents April / May 2014 | C&I | www.c-store.com.au
“ Declining per capita alcohol consumption,
generally uncer tain consumer conditions and
intense competition have weighed on the Liquor
Retailing industry over the past five years,” the repor t
said. “ T he industry is forecast to record subdued
growth in 2014, as the uncertain retail environment
and heav y price competition constrains liquor sales
at bricks-and-mortar establishments.”
... it is quite a daunting
outlook and any future foray by
the convenience channel would be
seriously handicapped by the higher
prices it would have to charge
Fur thermore, Coles and Woolwor ths are continuing
to increase their large-format liquor stores under
the Dan Murphy’s and First Choice brands, and they
are also increasing focus on online liquor sales.
It is quite a daunting outlook and any fut ure
foray into alcohol by the convenience channel
would be seriously handicapped by the
higher prices it would have to charge.
However, the IBIS World repor t does note that
the major driver of industry growth over this
period has been the increasing consumer
demand for higher value, premium beverages.
“ I think convenience stores doing a more boutique
alcohol offering is the only way I could really see it
working,” s aid Mr Greco. “ People drive ever y where
now and that ’s when they pick up their alcohol and
if they can get it cheaper elsewhere then they will.”
He said even if people are walking by and
picking up the odd six pack of beer, they
just aren’t going to give stores the volume
they need to make it worthwhile.
Mr Greco says one way to ensure a more level
playing field would be for the government
to mandate the minimum price at which
cer tain alcohol products could be sold.
“ W hat has happened is that heav y government
taxes has made alcohol a price sensitive
product – that has effectively compelled
people to look to go to places where they
can save a few dollars,” he said. “Of course,
that is to the supermarkets who have the
buying power ... and that is simply not fair.”
Impulse reality check
Mr Greco says that perhaps the big chains
like 7-Eleven could make alcohol sales a big
profits driver or some specific stores located in
a country town or close to BYO restaurants.
Cer tainly, it would appear unlikely that
many smaller independent operators could
foot a bill of potentially tens of thousands
of dollars to prepare a store to sell alcohol ...
even if they had the space to begin with.
With both beer and wine requiring refrigeration,
additional fridges or a coolroom would have to be
installed unless stores wanted to cut into the space
allocated for their current range of cool beverages.
The current boom in that category would make it
unlikely that many stores would take up that option.
For most stores, there would also be a matter
of having the space to stock a sufficient range
to tempt customers to visit convenience
stores as a destination for alcohol.
There are significant challenges in the way of
the push for alcohol sales in convenience ...
and no shor tage of organised opposition.
The Australian Liquor Stores Association (ALSA)
has labelled the AACS campaign as ‘naive’. It says
the convenience retail liquor market is already
well catered for with around 80% of all take-away
packaged liquor sales being sold through
specialist convenience retail liquor outlets.
And Dr Michael Livingston from the National
Dr ugs and Alcohol Research Centre says the
evidence suggests that the more places you can
buy alcohol, the more problems you get from
alcohol. He said increasing the number of outlets
by something like 3,000 across Australia is just
asking for rates of problems to go up sharply.
Given the ongoing public debate about how
best to control the alcohol excess culture
that many feel has beset Australia’s youth,
it seems unlikely that any government is
about to pass legislation to make it more
freely and more widely available.
Whether alcohol sales might give the
convenience sector a major fillip as it deals
with fierce competition from supermarkets
and the impact of plain tobacco
packaging is likely to remain a moot
point for many years to come.
ALCOHOL IN CONVENIENCE
Grocery retailers should be putting
their energies into gravy, cake mixes,
cheap nappies, and French champagne,
according to Shopper Tracker.
The local retail insights agency has
found that Australian grocery shoppers
are most swayed by promotions
on disposable nappies and coffee.
Liquid breakfast drinks, blocks of
chocolate and freshly prepared pizza
will also get grocery customers
through the supermarket door.
When it comes to the liquor space, the
number one special to lure shoppers
is fairly predictable: discounted French
champagne. Promotions on bourbon
and various types of beer will also do
the trick, says Coles and Woolworths’
grocery and liquor insights agency.
Speaking at Popai’s State of the Nation
breakfast in Sydney, Shopper Tracker’s
Simon Ford said there were many
gaps in the grocery market. He said
homebrand developers and product
buyers should focus their energies on
innovative meal and snack solutions.
Ready to heat sauces, marinades,
cake mixes, fresh pizza, and recipe
mixes are Ford’s top five product
development suggestions for 2014.
When it comes to slashing prices,
Aussie shoppers are the most reactive
to value on disposable nappies, long
life milk, chocolate, cola soft drink,
and hair colouring products.
“ Invest in these categories to
reassure shoppers on price,”
said Shopper Tracker’s breakfast
presentation. Ford said the number
one priority for retailers should be
availability, even above value, price,
merchandising, or customer service.
Shopper Tracker has found shoppers
are most likely to walk out of a store
if it’s out of nappies, drink mixers,
razors, feminine hygiene, and long life
milk. When it comes to the products
that people are most likely to buy on
impulse, there was a pretty clear winner
chocolate. Blocks of chocolate and
bags of confectionery hit the shopper’s
sweet spot, along with liquid breakfast
drinks and, surprisingly, cat food.
Inside Shopper 4/3/14
When it comes to the
products that people are most
likely to buy on impulse, there
was a pretty clear winner –
Hitting supermarket shelves during March, FANTA
has added another flavour to its Australian range
with the launch of FANTA Strawberry Kiwi. FANTA
Strawberry Kiwi offers up a tangy taste profile giving
consumers a mouth-watering burst of flavour fun.
Following on from the success of new flavour
launches in 2013 - FANTA Grape and limited
releases FANTA Sour Watermelon, Pineapple
Lime and Mango Passionfruit, FANTA Strawberry
Kiwi is the latest rotational flavour by FANTA
to market. “ We’re excited to deliver new-
to-market flavours, giving mums and teens
new and different flavours to choose,” said
Delia Maloney, FANTA Marketing Manager.
FANTA Kiwi Strawberry will be available in all
major supermarkets in a 1.25L bottle size and
8x200ml mini cans. FANTA Strawberry Kiwi joins
Orange, Raspberry, Passionfruit, Grape, Creaming
Soda and Lemon to bring the current range of
flavours in Australia to seven across all channels.
FANTA Strawberry Kiwi will feature as the hero
flavour of this year’s FANTA Flavour Lab campaign,
which will be announced later this month.
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