11 Category Trends
8 ) PRIVATE LABEL PRODUCTS Producing and retailing your own private label products has become another manner in which stores can differentiate . “ It ’ s a way to have something that only you can carry ,” says Moore of SGWS . “ Also , it enforces loyalty while being a margins enhancement .”
However , he warns that retailers should not overdo it with these products . Shelves should still have plenty of room for the normal brands that drive people to those categories in the first place , Moore says . “ Make sure the consumer still gets what they come in for .”
Another issue with private label products is that they have become the bread and butter of Big Box chains like Total Wine . These superstores rely on sales of their private labels as significant revenue drivers , and thus direct consumers towards these cheaper options .
One way that a smaller retailer can combat these Big Box private labels ? Carry them yourself , says Paul Kaspszak , executive director of the Minnesota Municipal Beverage Association . During a panel on the subject during the 2019 Beverage Alcohol Retailers Conference , Kaspszak pointed out that in some states , legally , Big Box stores must make their private labels available to other retailers . So a Minnesota store began carrying these products so that customers bought it from them , instead of at the Big Box .
9 ) SINGLE-BARREL STORE PICKS Similarly , offering store-specific , single-barrel picks has increasingly become a point of differentiation for beverage alcohol retailers .
On a basic level , store-picked bottlings from distilleries like Maker ’ s Mark or Knob Creak can help put more high-quality product on the shelves . Consumer demand for brown spirits has outstripped supply . Many American brands , especially bourbon , fly out of stores faster than they can come in . Allocations being what they are , it ’ s difficult to stock even brands like Blanton ’ s , which were readily available only several years back , forget the likes of Weller and other red-hot whiskeys . So a store pick can help replenish high-end whiskey stock .
Store picks also help establish your business as a destination . If consumers know that you and your staff pick out great barrels during distillery trips , then customers will keep coming back for these specials , while thinking of your employees as go-to whiskey experts . But this can go both ways . A bad bottle can generate a poor reputation , while becoming a “ shelf turd ” that never sells .
Which is why it ’ s important to monitor local Facebook and other social media groups of whiskey enthusiasts , says Brad Williams , VP of purchasing and product development for Liquor Barn in Kentucky . These people will post blunt reviews online of your barrel picks , which can help you determine real quality , and what the local market prefers .
Williams is a veteran of barrel picks , having been on many through the years , and spoke on the subject during a panel at the 2019 Beverage Alcohol Retailers Conference . He urges the importance of determining and maintaining a certain store identity when selecting , even if that style does not necessarily match your own preference . While Williams personally likes bold spicy whiskeys , for Liquor Barn he still picks bold , flavorful whiskeys , but tries to skew towards whiskeys that are a little more balanced and complex , creating a store-specific style with broad appeal .
Lagunitas recently launched DayTime IPA at 4 % ABV and 98 calories .
10 ) LOW-ABV , ‘ HEALTHY ’ ALCOHOL Consumers today care more about what goes into their bodies . This well-established trend has already penetrated alcohol through lighter wines , sparkling seltzers and low-cal cocktails . Now it has expanded with more health-conscious beverages .
For instance : FitVine . Sponsored by CrossFit , this growing brand of wines contains less sugar , carbs and calories . Yet they still boast enough flavor to please a calorie-counting vino-lover .
Craft beer has also become more conscious of its dietary drawbacks . New Belgium ’ s new beer Mural , a 4 % -ABV Mexican-style ale , has only 110 calories , and 0 grams of sugar . Earlier this year Harpoon released a 3.8 % hazy pale ale called Rec . League , with 120 calories per pint . And Lagunitas recently launched DayTime IPA : 4 % ABV , 98 calories . These brands are targeting active-lifestyle consumers who prefer their beers more flavorful than the traditional low-cal go-to , Michelob Ultra .
And what does it say about this trend that Michelob Ultra — the one macro light lager with year-over-year growth in recent time — has achieved its unusual success largely through savvy marketing aimed at active-lifestyle consumers ? Many people now prefer “ healthier ” options .
11 ) NO STOPPING TITO ’ S Nearly every craft brand that comes out now dreams of being Tito ’ s . Perhaps they lose track of Tito ’ s being an overnight success 20 + years in the making . Regardless , there ’ s no slowing down this freight train of a one-product brand . Tito ’ s grew a staggering 21.4 % in 2018 , according to the Beverage Information Group , reaching 7.34 million 9-liter cases in the U . S . Not bad for a brand that sold 1.2 million cases in 2013 .
Tito ’ s is now the second-best selling vodka in America , behind only Smirnoff , which shrunk 0.8 % in 2018 to 9.18 million cases . It ’ s likely only a matter of time before this Texas brand takes over that top spot . BD
www . beveragedynamics . com July / August 2019 • Beverage Dynamics 29