Almost 60% of branded spirits off-trade sales are made at specially reduced prices
But the new William Grant & Sons UK had a similar message to last year when it launched its annual market report. Premium spirits are vitally important to off-trade sales, it argues, and consumers are looking for style and quality. But, at the same time, they’re still keen on deals and buy most of their spirits on promotion, often after checking that the offer really is good value.
Quoting off-trade Nielsen data to 26 April 2014 the William Grant & Sons UK Market Report says:
• Almost 60% of branded spirits are sold at a promoted price in the off-trade – price promotions play a key role for shoppers.
• 90% of shoppers will check the main spirits aisle after seeing promotion details to make sure they are getting value for money
• Shoppers will pay above expectations for categories viewed as more premium such as malt whisky and Cognac
• Smaller bottles encourage trial of products. However almost half (48%) of people buying spirits in 35cl bottles only purchase that size.
• A quarter of shoppers say a free gift with a purchase will encourage them to spend more in the store.
• 68% of Scotch malt whisky shoppers purchase the product as a gift.
• 3% of people purchased an alcohol gift in the past year. Of those some 51% bought spirits as a gift.
• 40% of spirits gifts are Scotch whisky.
• Products purchased to be used as gifts accounted for 29% of total off-trade spirits sales. Spirits for gifts sales are estimated to be worth over £1bn a year.
• When purchasing gifts, shoppers are willing to trade
up by an average of 11% compared to a standard spirits purchase.
Chris Mason, managing director of William Grant & Sons UK, said: “Premium brands are extremely well placed to benefit from the trends the market is experiencing.
“Building premium brands that consumers desire is core to our business. In the year ahead we aim to work even more closely with our customers to deliver premium experiences.”
