Wine Suppliers Need To Use Global Insights For Category Growth, Bridgethorne Says
A new global survey into wine retailing trends by ProWein has identified the rise of convenience purchasing, online sales and store consolidation as major challenges, and reinforces the importance for suppliers to better understand shopper demands and behaviour in order to achieve category growth, according to customer, category and shopper management specialist Bridgethorne.
The survey was commissioned by ProWein, organisers of the wine and spirits trade fair.
It reported data from eight separate markets, which together account for half of global wine consumption - the UK, Germany, France, Spain, Italy, Australia, Japan and the US.
The study reflected the trend in most mature markets towards buying groceries more often, in less quantity, with wine not immune from this move towards convenience shopping. In some markets, including the UK, this benefits the same retailers who are already prominent in other channels, for example, where the major multiples have extensive convenience networks.
The report also picked up on the growth of direct-to-home shopping undertaken online as well as the steady decline in small chain independent wine retailers in favour of the multiples.
“Retailers and therefore suppliers must be aware of and plan for this changing shopper behaviour,” said John Nevens, joint managing director of Bridgethorne. “The growth of convenience shopping could lead to a smaller range of wines being available with a focus on what are perceived by retailers to be the strongest, most reliable wine brands, which lend themselves more easily to a quick, purchasing decision.”
Suppliers need to have an effective category strategy in place to discuss with retailers, which reflects the expectations and goals of both the supplier and the retailer, he added.
“Suppliers must regard it as their responsibility to help grow categories, increase margins and help the retailer deliver on its KPIs,” said Nevens.
Also, wine supplier often do not know how to extract the best insights from data, or turn it into a selling story that resonates with the buyer.
"By sharing insights suppliers can offer retailers joint initiatives for category growth and create mutually beneficial trade investment plans."
Speaking on the wine and spirits trade fair, organised by ProWein, Neil McGuigan, CEO of wine producer Australian Vintage told ESM: "ProWein has come a long way from when we first exhibited there four years ago. We believe it has become the go-to wine exhibition in Europe."
The vast majority of the wine company's customers in Europe, North America, Scandinavia and the UK now go to the exhibition, and they are the main draw card for Australian Vintage to attend, he explained.
"At ProWein, you are immersed in the world wine industry, and can hear and see global innovation first-hand. If you’re astute, you can pick up on wine and marketing trends at the exhibition that may or may not work for your country, or indeed your brand, but at least you are knowledgeable and tuned in to what is going on.”
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