Progressive Grocer - June/July 2009 - (Page 104)

With these needs in mind, Gerke & Associates recently collaborated with Progressive Grocer for online research on selected variables that influence effective merchandising of beer, wine and spirits in supermarkets. Responses from over 70 supermarket category managers revealed important strategic changes from previous alcohol beverage research by Gerke in the supermarket channel. These changes are likely based on consumers’ lower-cost preferences due to cutbacks in personal spending for non-essential items. The research focused on the following factors: Beer sales volume far exceeds that of wine and spirits. The percentage sales growth of wine is the greatest of the three, but wine sales’ percent growth has slowed since 2006. To an extent, sales of alcohol beverages have floated with the “rising tide” of supermarket sales growth. increased slightly from 5.46 percent of the industry’s grocery sales in 2007 to 5.54 percent in 2008. Since 2006, total grocery sales (prepack- Factors Influencing Effective Merchandising of Beverage Alcohol 1 Sales Growth 2 Display Space Growth 3 Basket Ring Influence 4 Shopping Trip Influence 5 Stores’ Competitive Differentiation 6 Category Management Support 7 Category Captains 8 Channel Competition 9 Promotional Programs sales volume far exceeds that of wine and spirits. The percentage sales growth of wine is the greatest of the three, but wine sales’ percent growth has slowed since 2006. To an extent, sales of alcohol beverages have floated with the “rising tide” of supermarket sales growth, as evidenced by the small increases in percentage of in-store sales for beer, wine and spirits, respectively. Projected Sales Growth for Alcohol Beverages by Supermarket Retailers Importance Ratings (1-5) Factors 1 through 5 will be discussed in this first of a two-part series. The second report will deal more specifically with category management practices that retailers deem to be most effective in generating sales of alcohol beverages. For this study, the responses by retailers were limited to managers in the alcohol beverage category and were cross-tabulated from companies with more than 50 stores and with 50 stores or fewer stores. Significant differences in growth projections were expressed by the two company size groups and will be discussed later in this article. Report Findings aged, UPC items only) have increased 6.6 percent, while alcohol beverage sales in supermarkets have increased 10.2 percent. As shown in the accompanying table, beer Based on comparison between the 2008 Beverage Insights study and a similar study conducted by Gerke in early 2007, retailers have switched from projecting growth of high-dollar alcohol beverages to growth of value-priced bev- Projected Beverage Alcohol Sales by Price Tier 3.47 2.63 2.56 3.68 3.15 3.00 3.74 3.09 2.92 In the approximately 35,000 supermarkets in the Nielsen database (stores with annual sales in excess of $2 million), alcohol beverage sales More ONLINE For additional beverage alcohol info, go to Progressivegrocer.com/centerstore Highest Premium ■ Wine ■ Beer ■ Spirits Mid-Priced Value-Priced Sales Metrics for Beer, Wine & Spirits in Grocery Stores* Beer 2008 Sales (in Millions) % Change % of In-Store Sales *Source: The Nielsen Company Wine 2006 $7,670 1.6% 2.76% 2008 $5,418 5.0% 1.83% 2007 $5,161 7.3% 1.79% 2006 $4,811 8.7% 1.73% 2008 $2,631 4.9% 0.89% Spirits 2007 $2,509 4.7% 0.87% 2006 $2,396 5.4% 0.86% 2007 $8,056 5.0% 2.80% $8,352 3.7% 2.82% 104 • Progressive Grocer • June/July 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.Progressivegrocer.com/centerstore http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - June/July 2009

Progressive Grocer - June/July 2009
Table of Contents
Nielsen’s Shelf Stoppers/ Spotlight: Cheese/Shredded Cheese
Market Snapshot: Sacramento-Stockton-Modesto, Calif.
Independents Report: The Advantages of Older Associates
Lempert Report: Food Experts Tackle the Economy
Industry Achievement: The Top 100 Women in Grocery
Multicultural Marketing: 2050 is Today
Retailer of the Year: Celebrating Kroger
2009 Deli/Bakery Operations Review: Shrink-Wrapped
Fresh Developments: Consumer Shifts Create New Complexities for Fresh Food Trading Partners
Produce: Brimming With Possibilities
Meat: Fired Up!
Store of the Month: Giant Eagle’s Express-Ohhh!
Cheese: Cooked Cheese and Other Spiritual Revelations
Beverage Alcohol: A Cup of Cheer
Frozen Foods: Frozen Vegetable Sales are Steaming
Real Estate: Bigger is not Always Better
Technology: At Your Service
Equipment Innovations
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - June/July 2009