Hot Properties
Manufacturers and retailers ready their seasonal product and merchandising strategies.
In summer, the thoughts of suppliers and purveyors of beverage alcohol turn to capitalizing on the season's affinity for outdoor entertaining — occasions tailor-made for a frosty mug of beer or a chilled glass of wine.
"Seattle-area consumers tend be quite sophisticated in their wine and beer purchases, so while drinking patterns shift in predictable directions for the summer — pale ales, lagers, lighter-style IPAs, rosé, white wines in general, and lighter, brighter red wines that lend themselves to al fresco fare — our customers are far more willing to experiment and take a flyer on a new region or variety," notes Jeff Cox, beer and wine merchandiser at the Emerald City's PCC Natural Markets cooperative. "In the Seattle area, sales of rosé wines have been superb for the past several years and are seeing tremendous growth, as are white wines from Italy and Spain, while on the domestic front, we're seeing a shift away from Chardonnay and Sauvignon Blanc toward Rhône varietals, Riesling, Gruner Veltliner, and other, lesser-known grapes."
To capture summer sales, PCC adjusts its merchandising strategy subtly but decisively. "Where summertime merchandising is concerned, the message is the medium," explains Cox. "Our merchandising methods don't change drastically; it's the content of the displays that are the focus. Other than a greater accent on cross-merchandising targeted items in produce, it's the products themselves … that drive merchandising and sales."
This summer, the co-op intends to promote "dry rosé; Italian, Spanish and southern French whites; beers in general, with an emphasis on pilsner and lagers from West Coast producers; 'al fresco' reds — and, for the first time, we'll be doing a dry sherry promotion," he says.
'A Full Docket' of Beer
On the supplier side, companies await the season with enthusiasm as they fine-tune their latest rounds of appropriate products and promotions.
"Whether stocking up for planned events or picking up a 12-pack for impromptu, same-day consumption, summer shoppers are looking for drink options that are convenient, provide badge value that complements who they are, and are available in packaging options that fit their on-the-go lifestyle," asserts Steve Ward, VP of national accounts at White Plains, N.Y.-based Heineken USA.
To that end, the company plans "a full docket of retail programming for all of our brands that will be hitting stores, beginning in May," says Ward. "One highlight retailers can look forward to is Heineken's 'Voyage' program [featuring] in-store merchandising, cross-merchandising offers and special promotional packaging. When shoppers download the Heineken Star App and scan the Star Bottle, they're taken to an augmented-reality world where they can earn chances at grand rewards around the globe, as well as daily instant rewards of retailer cash cards, driving consumers back in store throughout the summer."
Additional efforts include "a range of high-impact cross-merchandising programs that will enable retailers to build average basket size through pairing Heineken and other portfolio products with summer grilling essentials such as meat, seafood and marinades," he adds. "Especially in the grocery channel, sales are driven by successfully optimizing the shelf and cold box with a strong product offering that focuses on variety over duplication. The key is to understand which packs actually drive incremental volume and which are substitutable, especially for the summer months. Promotionally, the optimal strategy is to lead with the biggest up-scale import brands — namely, Heineken and Corona — and then fill in with high-lift growth brands and seasonals like Dos Equis, Newcastle, Blue Moon and local crafts."
Heineken USA's summer offerings include the latest Newcastle Limited Edition — Newcastle Bombshell blonde golden ale — launching nationally this month in 6- and 12-pack bottles, and supported by retro-style, pinup-themed packaging and point of sale, as well as advertising and marketing support that includes a national TV ad, extensive social media promotion and sampling activations.
The company has also added a 12-can format to its Beers of Mexico pack of the Dos Equis, Tecate and Sol brands, and is increasing distribution for its Strongbow Cider brand alongside nationwide "Golden Hour" influencer events. According to Ward: "This series of experiences will set Strongbow apart as the catalyst for a great night, driving trial, generating mass awareness and positioning Strongbow as the premiere cider brand. These events will be reinforced with cross-merchandising and display programs that will drive visibility and trial in store among consumers."
According to Jonathan Stern, director of media relations at Chicago-based MillerCoors: "Consumers are looking for two primary factors: refreshment and portability. Beer drinkers are looking for something that's easy to drink and refreshing all summer long." To help them enjoy beer in more places — Stern cites golf courses, fishing spots and campsites as prime locations — the company has introduced Miller Lite and Coors Light in aluminum pints, while its craft beers, including Jacob Leinenkugel Brewing Co.'s Summer Shandy and Blue Moon Belgian White, are also available in cans.
Among the new MillerCoors items that the company believes to be "poised for a big summer," as Stern puts it, are Redd's Apple Ale, an apple-flavored golden ale with low malt and bitterness cues; Leinenkugel's Orange Shandy, which is brewed using malted wheat with a touch of real Wisconsin honey, and then mixed with orange; and Blue Moon Brewing Co.'s Blue Moon Agave Nectar Ale, brewed with agave nectar and white wheat.
When asked about the importance of seasonal promotions, Stern declares: "If you win the summer, you win the year. One of our most successful and popular store-level programs is Jacob Leinenkugel Brewing Co.'s partnership with Sartori Cheese, another Wisconsin-based company. Grocery stores and shoppers really enjoy our cheese-and-beer sampling events, and the cross-merch programs have proven to be very successful for both Sartori and Leinenkugel's."
Another summer promo involves iconic American brands Miller High Life and Harley-Davidson, the latter of which is celebrating its 110th anniversary. In honor of the occasion, "customized black-and-red Miller High Life motorcycles will grace retail store floors across the country," Stern says.
"Prominently displaying lighter, refreshing summertime beers within the beer section is certainly one key" to merchandising success, he continues, "but we've seen a tremendous response from getting beer out of the beer section and tying it in with food displays throughout the store. For example, stacking up some Blue Moon Belgian White throughout the orange section is a nice touch. Similarly, Leinenkugel's Summer Shandy really stands out when it appears within a lemon display. We're also having fun with apple-themed Redd's displays. … Both the food and beer sales increase when they're featured like this, and it's a fun way for stores to add incremental sales from shoppers who might not have even been thinking about buying beer when they entered the store."
Corona Extra and Corona Light from Chicago-based Crown Imports LLC aim to inspire consumers to get out and take part in exhilarating summer activities via the "Live it. Share it. Win it." promotion. Packaging codes will be tied to more than 1,000 weekly prizes, in addition to four grand-prize experience trips to major U.S. cities worth $3,000. Point-of-sale (POS) and on-premise activations will help retailers generate excitement among consumers and boost sales.
Additionally, Crown's Pacifico brand will launch the "Explore the Open" sweepstakes, which gives 10 winners and their guests the chance to experience the U.S. Open of Surfing (USOS). Winners will have access to an exclusive Pacifico concert and VIP viewing deck to watch world-class surfers compete in the event. Pacifico will provide retailers with POS featuring the call to enter the sweepstakes for the USOS experience (where legal), and display options to gain feature and display activity.
Also, building on the success of its 2012 promotion, Crown's Modelo Especial "will leverage the combined passions of soccer and beer in anticipation of arguably the world's greatest sporting event: the World Cup," which will next take place in 2014, observes Jim Sabia, chief marketing officer. This summer, Modelo Especial will offer new promotional packaging that touts the chance to win a five-night trip for two to Brazil, the global tournament's planned site, and provide retailers with additional retail display options. Modelo Especial will boast its first-ever promotional packaging to drive repeat purchase, and the brand will offer a new branded soccer goal display enhancer to tie in with the thematic POS offering.
Crown works with off-premise accounts to provide consumers with multiple points of interest, which Sabia says provide more opportunities to convert the sale and more brand presence, as well as making it easier for consumers to shop and delivering higher register rings and margins. Further, Sabia notes, a valuable consumer offer can help grow basket size and provide meal solutions while driving unplanned purchases.
Summoning Up the Season
But it's not just beer companies that are gearing up for the summer. Suppliers of wines and spirits are also looking forward to growing their sales during the season.
"Lighter wines are always summer favorites, especially varietals like rosé, which are hot right now," says James Nunes, VP, marketing services and strategy at Napa, Calif.-based Trinchero Family Estates. "Rosés represent nearly 10 percent of the global wine market, and U.S. rosés above $10 were up over 14 percent in 2011. … Many of the typical 'summer' varietals are experiencing double- and triple-digit growth, such as Sauvignon Blanc and Pinot Grigio, which are both up 11 percent — or new category pink moscato, up over 500 percent, according to Nielsen."
Nunes points out, though, that "summer isn't limited to light wines. A great Zinfandel … always pairs well with a backyard barbecue." He additionally cites "light, refreshing drinks like margaritas, mojitos and mimosas. Basically, consumers are looking for beverage alcohol products that pair well with the weather, their summer activities and their summer menus."
For summer, Trinchero is bowing the Tres Agaves Tequila and Organic Mixers Margarita Co-Pack to coincide with the highest tequila consumption months of summer, and its Sea Glass line is about to launch an unoaked Chardonnay that Nunes describes as "on trend right now, especially for summer, as it's lighter and works well with summer foods." As a matter of fact, he adds, "The entire brand identity of Sea Glass wines reflect summer, produced from coastal vineyards and meant to evoke the experience of the beach and the water."
Trinchero is also revealing a fresh look for Bandit, its 500-milliliter and 1-liter wines in TetraPak packaging, a container that Nunes characterizes as "perfect for the beach, camping, boating and other summer activities," as well as bright summery colors for new Sutter Home wine packaging.
In addition to Sutter Home's highly successful Build a Better Burger Recipe Contest, which is the industry's longest-running wine promotion (more than 20 years and counting), Trinchero is running a farmers' market-themed program for its Folie a Deux brand, featuring a farmstand-style rack and offers on fresh vegetables, and grilling-themed campaigns for the Menage a Trois, The Show, Napa Cellars and Terra d'Oro brands. "We are also going to launch a glamorous camping, or 'Glamping'-themed, promotion for Bandit, our 'Good to Go Wine,'" notes Nunes.
To help retailers draw attention to its products, Trinchero offers "displays that can easily be moved around the store, so they get out of the wine section and into high-traffic departments such as the produce section and meat counters," says Nunes. "Grilling with fresh meats and produce is top of mind for most consumers during the summer months. To ensure that our wines get displayed with these items, we offer coupons and recipes pairing them together, incenting consumers to pick up our wines for their backyard dinners, barbecues and summer parties."
Since Ste. Michelle Wine Estates in Woodinville, Wash., believes that "consumers look to refreshing, easy-drinking wines to cool down and beat the heat," the company's Columbia Crest brand has joined forces with cable network The Learning Channel (TLC) to offer a consumer sweepstakes for a Washington Wine Country Getaway, running from May through September. In support of the promotion, bottle neckhangers will feature summer recipes from TLC personalities, a coupon and sweepstakes information.
"Malibu equates to summer for consumers and retailers, so we challenge ourselves to raise the bar with every summer program," says Josh Hayes, senior brand manager for Malibu rum at Purchase, N.Y.-based Pernod Ricard USA. "We take our inspiration from what's inside and on the Malibu bottle to authentically capture summer. Palm trees, an island mentality and Caribbean music are at the core of the summer state of mind. Retailers are willing to give floor space to brands that have compelling themes and fun merchandising elements, while consumers will pull through if the brand and the display speak to them." This year, the company has added the Blue Hawaiian pre-mixed cocktail pouch and a range of ready-to-drink cocktails in 200-milliliter cans in time for summer.
In spite of the wide range of themed promotions on tap, as far as many players in the beverage alcohol category are concerned, the essence of the period comes down to an astute observation of Trinchero's Nunes: "Barbecue and grilling season will continue to be a summer trend, year after year." Hayes, meanwhile, points to products that epitomize the time of year: "Consumers will continue to seek out bright, fresh flavors that allow them to enjoy summer to its fullest."
"Our customers are far more willing to experiment and take a flyer on a new region or variety."
—Jeff Cox, PCC Natural Markets
"If you win the summer, you win the year."
—Jonathan Stern, MillerCoors
"Malibu equates to summer for consumers and retailers, so we challenge ourselves to raise the bar with every summer program."
—Josh Hayes, Pernod Ricard USA