Eight ways liquor retailers can boost sales this festive season

Last week, Drinks Trade published this article documenting Circana's and CGA by NIQ's positive outlook on the upcoming festive trading season for both on- and off-premise businesses.

Here, Drinks Trade continues the conversation with Circana’s Director of Health and Lifestyle Jarna McLean, who outlines eight areas in which liquor retailers and brands can enhance sales performance this festive period.

“It's actually not gonna be that much different to last year,” Mclean told Drinks Trade.

“As I said [last week], it's going to be a little bit late, and with that lateness, what I would hope to see (but I've got no data points to kind of prove this) is that we actually have a little bit more of a sustained summer key selling period this year.

“Last year we had a high peak of Christmas, a very shortened one, that dropped off. Hopefully we can return to a pre-Covid Christmas type performance."

1. Know your customers

Before anything else, Jarna McLean says her advice should be understood and applied with consideration to a store’s local context.

“Particularly if we're talking independent retailers, no one knows their customer better than they do. They're talking to them day in, day out,” McLean told Drinks Trade.

“So execute and bring [my advice and] macro-trends to the forefront in store, but also understand who your demographic is.”

2. Focus on gifting options that bring ‘the cocktail experience into the home’

Based on data Circana analytics, McLean anticipates a greater focus on curated gifting options in liquor retailers this festive period when compared to 2023.

“That's a great way to drive value in a different, [and often] very successful, way; particularly in the independent space,” she said.

“It's a great way to trial new products, to show ways of bringing products together.”

Curated gifting options and pairings are particularly well suited to cocktails, both as a way of making the purchase process more accessible to non-cocktail educated consumers, and due to the presentability.

McLean said, “we have a very strong cocktail culture now and I expect cocktails to be the number one way of people enjoying drinks in that summer period, particularly over Christmas… It's a trend that we've seen for a couple of years, but it's increasing, not decreasing, so there's really great ways that you can cross promote in Christmas to drive that entertaining occasion, bringing together products that can be used together for cocktails.

One type of cocktail well suited to this trend in 2024 is Spritz. McLean says there is opportunity for both supplier-led and retailer-led initiatives in this space.

“If you’re a strong category supplier that's from within category that has a good portfolio mix, it's a great opportunity for you to put that forward to retailers as defined packs. You'll see a lot of that in the Spritz space, where [suppliers] will partner with someone to bring in a Prosecco to bundle with their spirit; but there's also an opportunity particularly for smaller independent stores where they have a lot more flexibility around their own layout and how they display.”

3. Steering value conversations beyond price

One of the key focuses of Circana’s recent State of the Industry webinar was around the importance of steering the conversation around value away from price.

“Regardless of the shopper, regardless of the consumer, we're targeting products at their demographic that’re within their permissible spend, [but still] hopefully giving them products that inspire them to invest more and trade up,” Mclean told Drinks Trade.

“It's not about trading up from a mid-range value bottle of vodka to a $90 bottle of vodka, it's about giving them the inspiration that within your range, [eg], here you've got three products, this product will deliver a little bit more for you.

“I'll use Zoncello as an example. You could just get a bottle of Prosecco, but your Limoncello Spritz already comes in a bottle, it's affordable, and it's a little bit more fun. It's a little bit more inspiring, and it's a small trade up.”

4. Focus on the ‘right’ trends this summer

Recently, CGA by NIQ and Flavorman both announced their 2025 trend predictions for both packaged beverages and on-premise trade.

When asked her thoughts, Jarna described it as “a bit of a billion dollar question.

“I believe the number one trend is around flavour profiles, and that is those lighter brighter products,” she continued.

“What we've seen in the last year and what we expect to see an acceleration of (particularly when I see what's coming to market) in the short term as well is an acceleration of those light bright citrusy flavours and ginger-based flavours; which would be your RTDs and spritzes and stuff. We're also seeing it play out in beers.”

Additionally, Jarna also says to keep better-for-you trends in mind this Christmas trading period.

“When we start thinking about better for you trends, people do look to your obvious sort of metrics. Low sugar or sugar-free continues to be a a big one, and you can see the importance that plays by the general performance of the sugar-free category and how that continues to grow.”

5. Deliver indulgent experiences

Next, Jarna says that liquor brands and retailers should be striving to market products as "indulgent experiences" as opposed to just the items themselves: “In liquor, it's really about bringing the cocktail world to life, so making it a full experience… It's actually about the process to get there as well,” she said.

This includes examples such as encouraging regular RTD consumers to trade up to the more involved category of cocktail making to make the occasion more inclusive and memorable.

“It's an experience as well as an indulgence, if that makes sense. So cocktail making as opposed to buying premixed cocktails; making margaritas at the family Christmas event instead of just having a beer or a wine. Around that space is very much where we expect to see growth.”

6. Utilising convenience to generate more sales

Despite being a factor most commonly associated with supermarket retail environments, liquor retailers that successfully increase convenience to their consumers can often increase sales revenue as a result.

One area in which this will likely present particular opportunity these holidays is in RTD spritzers.

McLean said, “Australia has one of the most prolific RTD markets in the world, and we are willing to some extent to pay a premium for the convenience that comes with that… so the cost per serve might be a little bit higher. Then there's the convenience of it, whether it's on the go because I'm going to an event, or even just having a 6-pack in the fridge for when I just feel like that one drink.

“On the flip side, [consumers are] only purchasing the number of serves that they really want.

“So yes, it does have a role to play, but it is actually something that is already well and truly established within its market.”

7. Blurring traditional boundaries in store

Jarna McLean also recommends experimenting with new approaches to traditional liquor sales boundaries. This includes new approaches to displays and store arrangements, along with packaging approaches such as cocktail gift packs.

“Even before it gets to our retailers to optimise it, suppliers are starting to blur those boundaries themselves,” she said.

“I've been talking Spritz recently: very traditional wine businesses are branching out into non-traditional spaces. This is where we're seeing the biggest amount of the blurring and optimising of these flavour profiles which would not not naturally fall within a wine base, and that's particularly appealing to Gen Z consumers who want something different.

“Execution from a retail sense is really how do you make this product more appealing, particularly for younger shoppers more drawn to bright lights and innovative versus traditional products.”

8. Be careful investing in stock

Finally, Jarna reiterated her prior message around being judicious when it comes to stock levels this Christmas.

"It would be fruitful to be positively conservative. By that I mean expect to have a decent Christmas, but don't go blowing the budgets on things that don't have a decent sell-through on the other side.

“What I would recommend - if [retailers] are wanting to focus on one or two segments that they would be willing to put a little bit more stock in - where we're going to see the biggest trends in flavour and excitement this year will be those lighter pressure options.”