The Wholesale channel is a massively important channel for Red Bull, equating to around 70% of our Off Trade business. With independent retailers and retail clubs all looking to the Wholesale channel for stock, it’s essential we continue to work closely with our customers to make sure retailers have the right products, tools and insight to ensure successful sales.
Red Bull always like to do things differently and once again, didn’t disappoint as they gave Cash & Carry’s across the UK the chance to win a truly unique experience through their wholesale incentive.
Following on from the success of last years cricket activation, this year’s activity was Formula 1 related, based on perfect outlet criteria with winning depots being rewarded with a VIP trip to the Spanish Grand Prix in 2010. This includes flights, accommodation and tickets to the VIP Red Bull Racing suite for qualifying and the race. These seats are the best in the house and will have the winners within touching distance of the action. A number of other prizes are up for grabs including Nintendo Wii’s, Hi St vouchers and much more.
Red Bull searched the country for and judged them based on availability, visibility, creative secondary sitings, impulse purchase points, branding and in-depot communication.
What’s going on in Soft Drinks?
Functional products are now a fundamental part of consumers’ everyday lives. People around the UK are now, more than ever are having to balance their work and social lives and look to products which fit with their busy lifestyles, helping them to get the most out of their day.
Sports and Energy continues to go from strength to strength, driving the overall soft drinks market. Currently worth more than £708m it’s still the fastest growing soft drinks sub-category in grocery at +9.8%, and in fact, the only sub-category in impulse which is in growth. This is evidence of the role that Sports and Energy now plays and more importantly, they opportunity that exists for retailers.
What are the shopper and consumption trends?
When looking at Sports and Energy shoppers, it’s clear that they have a heavy reliance on branded products. Although there has been a slight increase in the number of own label products in the category, a massive 82% of Sports and Energy products purchased are branded versus just 18% of own label. Compare this to overall Soft Drinks, where own label accounts for 35.8% of purchases and it’s clear that when it comes to the Sports and Energy category, shoppers look to brands they trust to deliver functionality.
What’s also interesting about shopping habits of Sports and Energy consumers is that there are three main consumption time peaks throughout the day. The first is mid-morning, where consumers want that pick-me-up to help get them through to lunchtime. Then early afternoon hits which is when the category sees the biggest peak of the day with around 20% of products consumed at this time. This is when consumers are beginning to hit that post lunch slump and need that extra bit of energy to get through the afternoon or on the way to that next meeting. Finally, early evening comes and people need that final bit of drive before the gym or on the way home to ensure they’ve been energised throughout the day.
From a retailer perspective, it’s important they the offer right range of products, with good visibility of best selling brands and good in-store communication to maximise the potential of the category as well as reducing out of stocks, especially around the key sales peaks.
Tom Smith, Red Bull Trade Communications Manager says: “Having the right range of drinks; branded versus own label as well as different sizes of cans and now Energy Shots will give the shopper the choice they want. That way they will be able to decide on their products to fit with their usage occasion, from on the go to in the car, during the boardroom meeting or at the gym.”
Red Bull Company Ltd