RETAIL NEWS

Constellation targets winenation consumers…Tesco overhauls its spirit range…Web loophole scares retailers…Online sales set to soar…

Constellation targets winenation consumers 

New research from Constellation Europe has identified seven distinct groups of wine consumers in the UK. The WineNation study, aims to exploit the potential of the off-trade wine category by identifying retail strategies to target each group.

Dan Townsend, senior vice president and UK trading director at Constellation Europe, says, “By sharing this information with our customers we can help them develop their range, point-of-sale and promotional activity to maximise the value and weight of purchase from each of the different consumer groups.”

The multi-stage research initiative, carried out by Wine Intelligence, involved an initial online quantitative survey of 3,000 consumers. This was followed by an accompanied shopping project with 200 respondents in 23 stores (both multiples and independents) and a detailed ethnographic study of 50 consumers who kept diaries of their purchasing habits and took part in filmed workshops.

The research showed that  wine consumers fall into one of the following seven segments:

• Routiners – well established mid-life family drinkers.

• High Potentials – high-spending, knowledgeable young professionals.

• Engaged Explorers – older, well educated and experienced.

• Experts – knowledgeable and involved expert wine drinkers.

• Newbies – “take it or leave it” young drinkers, new to wine.

• Occasionals – “on special occasions only“ family drinkers.

• Economisers – experienced price-driven, bargain seekers.

“If we look at the migration patterns among these consumers and how they develop their association with wine, it is clear that if retailers do more to engage and educate them, the more confident they become in the category and the more they are prepared to spend,” adds Townsend. He believes that future expansion of the wine category will be driven by the consumer agenda.

Constellation plans to publish the WineNation Report in the new year, detailing these seven consumer groups and outlining what retailers can do to appeal to each type of shopper.

Tesco overhauls its spirit range

UK supermarket Tesco has completely overhauled its spirits range and launched over 100 lines. The retailer conducted a gap analysis against other grocers, such as Selfridges, Fortnum & Mason, Aldi and Lidl and as a result made a number of changes.

In particular the grocer has introduced a tailored range for Scottish stores with products matched to local demand.

It has also made alterations to existing products. For example, the Tesco-label Finest Reserve Whisky has been redesigned, while its own-label gin has been relaunched as two different lines, a 40% abv at £8.97 and the new Finest Gin with 43% abv at £11.99.

The supermarket’s Cognac VS and VSOP have been redesigned.

Tesco Value Spirits (whisky, gin, vodka and brandy) have also been redesigned with new branding on the vodka and whisky.

New to the spirits range is Tesco white and dark rum 35cl; Tesco vodka 1.5l, and a Tesco XO organic Cognac.

As well as relaunching Tesco brands, the supermarket has introduced a variety of premium products, including Comte de Lauvia 15 Year Old Armagnac, Marquis de Montesquiou 21 Year Old Armagnac, Rémy 1738 VSOP Cognac and Highland Park 18 Year Old whisky.

Finally, the retailer points out that duplication in its spirits range has been significantly reduced as part of the full spirits category review.

Web loophole scares retailers

The UK drinks retail market could be devastated if the European Court of Justice passes a ruling prohibiting additional taxes being levied on foreign goods purchased online. Advocate general, Francis Jacob, has stated that the extra duty does not conform to the single market principle. The ECJ is expected to pass a ruling on November 23.

If the Court rubber stamps Jacob’s proposal it seems likely to fuel a surge in online shopping for cheap wine and spirits. Ferry operators who are reliant on the “booze cruise” business and the Treasury will both be hit hard.

Commenting on the development, WSTA chief executive, Jeremy Beadles, urged caution from the trade. “Think about the threats, think about the opportunities but don’t do anything until we know what the decision says. There’s going to be a lot more detail coming out and there will likely be provisos on how people are actually allowed to do this,” he says. 

Online sales set to soar

Online sales are predicted to rise by 40% to £42 billion in the UK in 2007, up from £30bn this year. The forecast comes after the Interactive Media in Retail Group (IMRG) recorded one of the biggest ever months for online sales. The British spent as much as £2.7bn on the internet in October.

The IMRG expects customers to spend £7bn online in the run-up to Christmas Day, £3.5bn of this in December alone.

The forecasted growth for 2007 is a result of both the increasing acceptance of the internet as a secure means of buying products and the rapid growth in the number of households with broadband.

It is important to add that the IMRG includes travel tickets and holiday bookings made on the internet in its calculations, despite the fact that a newly-formed group called the SPSL Retail Think Tank believes these tickets and holidays booked online should not be included in retail sales figures.

© db December 2006