Opportunistic retailers are striving to add credibility to private label alcohol by pushing the boundaries of quality, value and consumer expectations, says new research from Datamonitor Consumer.
Its recent research shows that this sector has the lowest level of consumer sentiment in the FMCG space.
Only a third of consumers say that private label alcoholic drinks are good alternatives to name brands, which is far behind the food, non-alcoholic drinks and household cleaning markets. Yet, a mere 8% of consumers globally say that a brand’s advertising, image or sponsorship would encourage them to pay more for their most often consumed alcoholic drink.
“While recent moves by key retail players can be expected to change the low acceptance of private label alcoholic drinks, there’s clearly a deep-rooted disparity between acceptance of private label alcohol and willingness to actually pick up the bottle,” said analyst Sara Grady.
So, brand perception does play a role; consumers may not pay more based on image, but similarly, they’re not prepared to forgo such branding and potentially pay less.
“Retailers are starting to encourage the purchase decision, catching up with other highly evolved private label sectors by sidestepping the ‘image issue’,” said Grady. “The ill-defined craft trend is, for example, certainly giving mileage in beer and cider across the globe as retailers launch ‘authentic-looking’ products that consumers presume to be craft beers, not private labels.”
Datamonitor Consumer’s research also shows that those who agree that private label alcoholic drinks are fair brand alternatives are more likely to prefer drinking at home than out at bars, clubs and restaurants.
“The stronger preference towards drinking at home for ‘private label consumers’ suggests that stigma does still surround the sector,” said Grady. “Moreover, it actually hints at the types of alcohol such consumers might be buying. Less confident drinkers may find comfort in trusting their retailer’s label and indicates another trend for private label alcohol to capitalise on, rather than shy away from.”
© FoodBev Media Ltd 2024