Data from SymphonyIRI Group for the year ended 29 September 2012 shows that:
Ware continued: “This heavy use of promotions is what makes much of the alcohol sold at a retail price below the 45p per unit minimum price that the Government is expected to propose.
“Price promotions will be a thing of the past for many. Tomorrow’s strategies will need to focus on other ways to differentiate the brand. Many will look to establish a premium strategy and packaging and branding will be key to their success. We expect to see more innovation and use of cross brand promotions or added value promotions where price is no longer a driver of purchase.
“This might include providing a free multi-pack of crisps or a branded gift with every pack of beer purchased, especially where brand loyalty will become a major driving force on purchases moving forward.”
Ware warns that retailers will also be impacted by their reliance on alcohol promotions to drive footfall around key events (particularly busy periods like Christmas). He said: “Minimum Unit Pricing could be catastrophic for all retailer own label alcohol products where high volumes are currently sold solely on price. Even consumers focused on price are more likely to migrate to branded products or stop purchasing altogether. With focus on branding we may see the same levels of range reduction in alcohol that is taking place for other grocery categories.”
Source: SymphonyIRI
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