Progressive Grocer - April 2010 - (Page 80)

Grocery Beer The Case for Beverage Insights research reveals the ways in which supermarket retailers view the beverage as a growth category. By Joe Weston he year 2010 is projected to be a challenging sales environment in most retail industries, according to published forecasts. Many consumers are changing their buying habits in today’s economy. Some are “buying down” with less expensive products in selected categories, while others are postponing nonessential purchases. How can supermarket retailers adapt to this trend to protect and increase sales of alcohol beverages in their stores? A recent Beverage Insights TM * study showed that supermarket retailers are turning to wine as the most important source of sales growth in the alcohol beverage category. Beer was rated behind both wine and spirits as an overall growth opportunity in the category. This may be partly due to the consumer shift away from buying alcohol beverages on-premise to buying in supermarkets and other retail venues, which favors new purchases of wine and spirits. Of the beer subcategories, only high-end domestic achieved a rating near the leading wine and spirits products. It should be noted that dollar sales of beer in supermarkets far exceeds 80 • Progressive Grocer • April 2010 T that of wine and spirits, as shown below, but the current growth opportunity appears greater for wine and spirits. For this study, a self-selected sample of retailers was asked to rate sales growth potential and projected space allocation for subcategories of beer, wine and spirits, as well as to rate category management performance for the subcategories. Responses were measured for the total group and for two subsets of chains: those with 50-plus stores and those with fewer than 50 stores. Sales Growth Potential High-end domestic beer earned the high- Beer 2009 Sales in Millions % Change % In-store Sales ** Wine 2007 $8,062 5.1% 2.76% 2009 ** Spirits 2007 $5,173 10.7% 1.79% 2009 ** 2008 $8,353 3.6% 2.80% 2008 $5,418 8.7% 1.80% 2008 $2,631 4.5% 0.87% 2007 $2,517 4.9% 0.86% $8,680 3.9% 2.81% $5,646 7.3% 1.80% $2,744 4.3% 0.87% * Beverage InsightsTM is a collaboration between Gerke & Associates, Inc. and Progressive Grocer **Beverage InsightsTM estimate A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com http://www.progressivegrocer.com

Table of Contents for the Digital Edition of Progressive Grocer - April 2010

Progressive Grocer - April 2010
Table of Contents
Nielsen’s Shelf Stoppers/Spotlight: Baby Needs/Baby Powder
The Lempert Report: Ways to Improve the Nutrition Facts Panel
Best Practices: The Employee Satisfaction, Productivity and Profit Connection
State of the Industry Report: Looking Up, Cautiously
Store of the Month: Standing Ovation
GMA President’s Note: Tackling Obesity: A New Blueprint for Success
Natural Meat: Where Was the Beef?
Produce: Swinging Springtime Sales
Beverage Alcohol: The Case for Beer
Breakfast Foods: The Start of Something Big
Dairy: Probiotics in Dairy and Frozen: A Healthy Pursuit
Baby Care: The Dry Season
Pet Care and Supplies: Where the Margin Is
Case Study: King of the Jungle
Tech Toolbox: A Look at the Latest Solutions
Foodservice: No Strain, No Pain
Sustainability: Green Energy is Blooming
What’s Next: Editors’ Picks for Innovative Products

Progressive Grocer - April 2010