Shopper Tracker managing director Simon Ford presented the 2017 State of the Nation report at the drinks association’s latest network breakfast.
Here are some of the highlights ...
1. Liquor is improving
Simon said: “Shoppers tell us Liquor categories and retailers are getting better on the basics of price, range and availability. Dan Murphy’s and First Choice lead this improvement. Focussing on price image, vodka, cider and champagne are the most improved; pre-mix rum & scotch, red wine over $15, premium beer and champagne respond most efficiently to promotional spend. Half of promotional spend is on single bottle/ pack, led by spirts. After that, 2 for 1 deals are bought by almost 1 in 3 shoppers, led by wine.
2. Shoppers feel the industry is innovating well
Simon said: “Retailers are recognising new ideas in big xox and non-attached/drive thru bottleshops. Craft Beer remains the no.1 category where shoppers want ‘new’.
3. There’s a clear trend to responsible drinking
This is being led by younger shoppers and, according to Simon, Bottlemart is the retailer that has been most responsive to the movement.
4. Consider disruption
Other markets and products reflect the threat of disruption, for example Uber to taxi companies. New products and new platforms are threats. Grocery and convenience have changed a great deal in the last decade to meet the trend of shoppers moving away from large stock up shops to smaller more frequent specific mission shopping. “Overseas, we see liquor delivering to this more so - Australia retail is playing catch up,” Simon said.
5. Look to technology to predict disruption
In Australia, 1 in 3 shoppers have a particular occasion in mind when buying Liquor, increasing to 45% for under 30s and 37% of females.
“In wine alone, this is over 50% and yet the retail operation has not yet shifted to deliver to this in quite the same way as overseas/ other channels,” said Simon.
Digital and Online are new platforms, already growing and disrupting bricks and mortar.
“Online liquor shopping skews more heavily to specific occasion shopping: are they delivering to unmet needs?”
Want to know more? Contact Simon at Shopper Tracker on firstname.lastname@example.org, or by telephone on (02) 8282 0020.