Brewers back larger format beer packs
BIGGER isn’t always better, but larger pack formats increasingly appeal to shoppers in the convenience channel.
The lockdowns of the last few years may seem like a different world now, but many consumers will have become used to having a fridge-ready multipack of their favourite brew ready to go.
• At Diageo, Lauren Priestly, head of category for the off trade said that multipacks “lend themselves perfectly for sharing moments” of the kind we can expect to see this winter.
“Maintaining a selection of multipack beer formats will be key for retailers wanting to make the most of these occasions, as research has shown listing a 10-pack with a four-pack drives 30% of incremental sales,” she said.
Priestly suggested retailers ensure they’ve got a variety of Guinness Draught in a Can pack formats in their beer fridge; the brand is now available in four-, 10-. and 15-packs.
Chiller space may be limited, but Priestly said putting some larger packs in the fridge is worthwhile for those who can.
“If chiller space allows, consider incorporating multipacks into this space.
“This allows for consumption shortly after purchase at the optimum temperature that the beverages should be enjoyed,” he said.
• John Price, head of marketing at KBE Drinks – the firm behind brands such as Kingfisher and Sagres – agreed that multipacks present retailers with potential to generate incremental sales.
“In terms of pack formats, don’t just think about smaller sizes as it makes sense to cater for those customers who may be looking to save money, enjoy a ‘big night in’ or are perhaps attending an outdoor event, so ensure you keep a sensible range of larger pack formats to meet their needs,” he said.
Price also suggested that injecting some international flavour into the range helps retailers to command a more premium price point and tap into demand for quality in the beer chiller.
“There’s no doubt that consumers are increasingly willing to spend more to treat themselves to better quality and authentic beer and cider options, which is in turn driving increased value in-store.
“That’s why premium world lagers like Kingfisher and Sagres are a great option for convenience retailers to stock, as they are bang on trend and can typically be charged at a minimum of 30% more than other mainstream options,” he said.
• Brewing giants may all recommend including larger multipack formats within their beer range, but retailers should be careful not to overcook it – as many shoppers do appear to be reverting to pre-pandemic trends, according to Heineken
Alexander Wilson, category and commercial strategy director at Heineken, said: “Shoppers were making fewer shopping trips but increasing their basket sizes during the pandemic, meaning that larger multipacks picked up a greater percentage of spend.
“However, with restrictions having lifted and shoppers reverting to previous habits of making smaller but more frequent shops, we are seeing smaller multipacks – such as four can packs – growing their share of spend over the first few months of 2022.
“We expect this trend to continue over the coming months, and for the split of value to return to similar pre-Covid levels over the course of 2022.”
Despite consumer behaviour tacking back to trends seen before the first Covid lockdown, Heineken still expects the big night in occasion will influence purchasing behaviour in the months ahead, according to Wilson.
“Although many have left their living rooms behind and ventured back to the pub, people are still enjoying nights in,” he said.