Pernod Ricard UK serves up £2,792 festive opportunity for every store

Pernod Ricard UK is urging retailers to respond to consumer trends accelerated by the last 18 months to capitalise on the huge opportunity within Premium Spirits and Wines this Christmas. Retailers in the impulse and convenience channel could each make up to £2,792 this Christmas by stocking a broad range of Premium Spirits and Wines during the twelve weeks leading up to Christmas Day.

Friends and family kept apart by lockdowns in 2020 will start celebrating earlier this year and the convenience channel has a key role to play by supporting shoppers with two important missions: “grabbing a bottle on the way to a house party/gathering” and “picking up a bottle to host friends and family at home”. A recent study commissioned by Pernod Ricard UK demonstrates the importance of the convenience channel for buying Spirits on the way somewhere, with 87 per cent of shoppers buying them to consume there. The study also found that 31 per cent of “shopping on my way” missions are completely spontaneous, which is high verses 21 per cent for Total Mission, making this a massively valuable mission.

On-Trade closures accelerated several market trends that already existed pre-COVID. There are now more online shoppers and a broader demographic of people shopping locally due to a sustained increase of working-from-home. There has also been an increase in Spirits Premiumisation, with Premium+ Spirits value growing more than twice as fast as Total Spirits (+27 per cent vs. +11 per cent) as shoppers treat themselves to affordable luxuries both at home and when meeting up with friends and family. And in terms of “trying something new”, it now takes two more Spirits sub-sectors to make up 95 per cent of Impulse value sales than it did a year ago. For these reasons, retailers must be able to cater for a wider variety of tastes and occasions than in the past with premium options that will make visibly generous and special party contributions.

“The Off-Trade is likely to retain an inflated share of the total BWS market this year,” said Chris Shead, Off-Trade Channel Director. “It’s important not only to stock the familiar core lines of Premium Spirits and Wines shoppers will expect to see but something new and exciting from those trusted brands, due to the increased knowledge of Spirits and Wines shoppers have acquired in lockdown. This year, more than ever, it’s about breadth of range. Consumers upskilled during lockdown, they tried more cocktails at home, experimented with new flavours, and treated themselves to the new product or flavours from their favourite brands. Last minute purchases are crucial to getting it right this Christmas. Grabbing a bottle on the way to either hosting or being hosted has grown in importance as people celebrate the moments they can share together, so having an enticing range is hugely important.”