Drinks Association members who subscribe to Shopper Intelligence will shortly receive access to the latest read on shopper behaviour in the off-premise.
This update, covering the 12 months to March this year, will tell us how shoppers feel the industry has responded following last year’s declines in overall satisfaction and the ongoing economic challenges.
Ahead of this release, we asked the liquor experts at Shopper Intelligence to cast an eye over the channel and pick their big themes to watch out for this year.
1 - Rising satisfaction, but more to do
Off-premise shoppers have been registering higher levels of satisfaction through 2024, so it looks strongly as though the channel bottomed out last year on this important metric.
While the gains have come across the board, from price to execution to assortment, what else lies beneath the headline numbers?
What the team said:
“Liquor consumption may be down, but those who have stuck with the off-premise are certainly more impressed with what they’re seeing than they have been for several years. Shoppers feel the channel is offering a more enjoyable experience, and that is going to be a key aspect for retailers and suppliers to continue to focus on in the months ahead.”
"Ironically, First Choice and Vintage Cellars shoppers have recorded some of the biggest year-on-year increases in satisfaction, just as those banners are destined to disappear. The challenge remains the same, however, for Coles Liquor Group: retain what shoppers loved most about those brands, while amplifying the benefits of a single Liquorland network."
"Improvements have been less pronounced in areas like product quality and the perception of premium delivery. There is still more to do to communicate clearly to shoppers, especially in wine, where value-for-money perceptions continue to struggle.”
2 - Category roles continue to evolve
Last year, we saw dramatic shifts in how shoppers approach the off-premise, with much lower levels of retailer loyalty and less effective pre-store promotions making it harder to drive feet into stores.
These are fundamental category characteristics. Big shifts here don’t usually happen two years in a row. Will this year be different?
What the team said:
“Last year’s findings were remarkable and gave us an insight into what happens when price becomes an obsession for the industry. Shoppers didn’t see the value in passing store A to get to store B for a better range or experience.
“In grocery, shoppers have become much more deliberate at the category level, building their shopping trip around specific must-have items. We could be seeing the same thing happening in liquor. More people say a category is their main reason to go shopping, and more say they really don't want to run out. That elevates the role of pre-store marketing and makes it even more important to nail those messages — whether they're about brand, flavour, or something else.”
3 - What's next for brands?
Brands still have a key role in the off-premise, but brand owners must be sharper about when and how to play their cards. Planning based on brand dipped between 2023 and 2024, as did the proportion of shoppers who went on to purchase the brand they had intended to buy pre-store.
A similar result this time round would put more pressure on some major global players.
What the team said:
“This is a big, big challenge for brand owners. Overall planning levels in liquor haven't shifted much over the last 12 months, and the proportion of shoppers planning to buy a specific brand is stable. But more and more shoppers are switching brands once they enter the store. Shelf layouts and a lack of information are contributing to this growing ‘point of purchase promiscuity,’ but in some cases it’s simply that they’re not that into you!”
“The difference between older and younger shoppers is huge. Those under thirty-four are much less likely to plan in the first place, and only one in three go on to buy the brand they intended.”
“We've known for years that younger shoppers behave differently in liquor compared to their parents. Yet no major player has seriously responded with a proposition built around immediate consumption and occasions. We’ve said it before, but the opportunity to win here is massive.”
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To find out more, email kevin.vo@shopperintelligence.com.au.
Shopper Intelligence is a Platinum Partner of the Drinks Association.