Progressive Grocer - June/July 2009 - (Page 108)

egories surveyed. The ratings confirmed the projected growth in sales volume, led by more space for mid-priced and super-premium wines and high-end domestic and imported beer. The spirits category received mostly same space ratings. For nearly all products, the larger chains projected allocating more display space than did the smaller chains. This was especially the case for high-end domestic beer and super-premium wines. Importance to Basket Ring chains were the most emphatic about the importance of wine in basket ring and also provided the highest rating for beer, which was rated higher than spirits. There was some retailer preference for more expensive choices for beer and wine, and preference for the least expensive spirits. This pricing disparity may help beer and wine build basket ring value more quickly than spirits. Montgomery believes “a key factor in gaining basket ring sales is supporting secondary displays with promoted items.” Importance to Shopping Trip Wine was the clear winner for importance to basket ring value, by all rating groups. The larger of the highest ratings of the study (76.2 percent) to high importance for wine as an attraction for destination shoppers. But that enthusiasm was muted in chains with less than 50 stores, which placed wine (28.9 percent) behind beer (37.0 percent) in importance to consumers’ buying trips. The larger chains also rated beer and spirits as more important to the shopping trip than the smaller chains. Fewer participating retailers sold spirits than beer or wine, which may have accounted for some of the lower importance ratings. Stores’ Competitive Differentiation Chains with more than 50 stores gave one The most frequently cited differentiating concepts by study participants were: • Availability of Product: Consumers generally buy on impulse and often are very loyal to brands; recent industry studies suggest that consumers will often shop at another store for their preferred brand if it is out of stock in the first store visited • Display Appearance: Displays are competing for attention and discretionary dollars with other non-essential food products • Di s p l a y L o c a t i o n a n d O t h e r D i s p l a y Strategies: Displaying cold product in the store is especially important for beer sales, and displays must be easy to see Price incentive tactics had some appeal to the larger firms but the overall ratings for discount pricing were medium at best. All factors surveyed, and ratings on a scale of 1-5 (low to high), can be found on page 106. Sales of beer, wine and spirits continued to grow in 2008 in supermarkets, although the total alcohol beverage category growth rate slowed. Beer sales volume continued to dominate the category, but retailers projected greater growth potential for value/economy wine and mid-priced wine than for any of the beer categories. On the other hand, the most expensive wine and spirits brands scored the lowest values for projected growth, possibly in response to the challenging economic climate. Larger chains with more than 50 stores were more optimistic than smaller chains regarding sales growth prospects for beer, wine and spirits in supermarkets. Overall, beer, wine and spirits were viewed as above average in driving growth in consumer basket ring value, but the impact was lower than in a similar Gerke study in 2007. The second part of the Beverage Insights research, which will discuss category management issues, cross-channel competition, the value of category captains and promotional programs, will appear in PG’s August/September issue. ■ www.progressivegrocer.com September 23-26, 2009 Boston Convention & Exhibition Center Boston, Massachusetts expoeast.com Education & Events: Wednesday-Saturday September 23-26, 2009 Trade Show: Thursday-Saturday September 24-26, 2009 Natural Products Expo East | Every season is a growing season for your business. Register Today! Use code PROGGROC to register today at www.expoeast.com, 1.866.458.4935, or 1.303.390.1776 and you'll be automatically entered to win a trip to Natural Products Expo East. Registration is FREE for qualiﬁed buyers, brokers and distributors until August 21, 2009. http://www.expoeast.com http://www.expoeast.com http://www.expoeast.com 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