Premium profits to be plucked in festive flurry

Retailers could be missing out on £13m of incremental sales in the run up to Christmas as buyers look to upgrade to premium spirits during the festive season.

Top tips

1. Ensure there is a premium option available across all spirits to avoid missed sales
2. Create a sense of occasion with seasonal PoS
3. Provide gift bags to maximise impulse gift purchases and stock gift packs
4. Merchandise by price-point and run deals across all price brands
5. Ensure availability throughout the party season and expand your range of products

“There have been great performances by premium wines and spirits over the last few years, but we believe there have still been missed sales opportunities,” said Chris Shead, Pernod Ricard UK off-trade channel director.

Despite £8m growth in impulse sales in this area over the past five years, there is still significant under trade compared with multiple grocers, where premium products took a 30% share of spirit sales during Christmas 2013.

“With shoppers increasingly looking to trade up over the festive period, there is a great opportunity for retailers to seize the chance to match the success of premium spirits in grocery this Christmas,” Shead added. “To put this in perspective, creating a 30% share for premium spirits in impulse would equate to £13m of incremental sales, so the opportunity is massive.”

The brand recommends that retailers focus on premium vodka and premium blended and malt Scotch whiskies, where it believes demand will be particularly high in the party season.

Gifting can also promote sales in this area during the Christmas period and Pernod Ricard recommended retailers consider stocking gift packs or providing gift bags to make it even easier for shoppers.