Progressive Grocer - November/December 2009 - (Page 76)

Grocery Half Full The beverage alcohol industry recalibrates to meet the needs of a wary consumer. By Danny Brager, VP, group client director, beverage alcohol, The Nielsen Company Nick Lake, VP, group client director, beverage alcohol, The Nielsen Company Brian Lechner, client director, beverage alcohol, The Nielsen Company Glass hol market, and some thoughts on what retailers can do to capitalize on them. The Renewed Focus on Value hile the beverage alcohol industry is sometimes thought to be “recession-proof,” its performance over the past year can more accurately be described as recessionresistant. Consumers tend to drink alcoholic beverages in both good and bad economic times, but what and where they drink changes with their confidence in their personal financial situations, and the economy in general. In the past 18 months, consumers have reprioritized what they consider necessary and discretionary items. Food and drink budgets are tighter, and while the beverage alco76 W hol category is still holding up relatively well in comparison with many other consumer goods, today’s consumers are wary. Beverage alcohol manufacturers and retailers have had to adapt their strategies to compete for consumer dollars in today’s tenuous economic climate. The following is a summary of the trends we’ve seen developing in the beverage alco- Value is the new watchword for consumers of all income levels, and retail outlets focused on value, convenience and savings are faring better in the current economic climate. Value means more than just the lowest price, however. In today’s competitive market, it’s defined as having the right product at the right price and in the right place, as judged by the consumer. Price is still a key component of value, however, and not surprisingly, the economic downturn has made today’s consumers highly price-aware and price-sensitive. Nielsen data shows consumers across all income levels searching for deals in a quest www.progressivegrocer.com • Progressive Grocer • November/December 2009 A H E A D O F W H AT ’ S N E X T http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - November/December 2009

Progressive Grocer - November/December 2009
Contents
Nielsen’s Shelf Stoppers/Spotlight: All Departments/Ramen Noodles
Progressive Grocer’s Category Captains Awards: Recession Planning
Consumer Insights: Innovate to Differentiate
Independents Report: Determining Relative Worth
Lempert Report:The Trends That’ll be Tops in 2010
Store of the Month: A New Brand of Winn-Dixie
Beverage Alcohol: Glass Half Full
Sports/Energy Drinks: Energetic Sales?
Category Management: Categorical Shifts
Holiday/Super Bowl Meat Promotions: Bowled Over
PG’s Annual Deli/Bakery/ Prepared Foods Roundtable: Bringing Value to the Table: Part 2
Packaging Trends: Sheer Innovation
Price and Promotion Optimization Software: Optimization Plus
Signage: Above and Beyond
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - November/December 2009