Budweiser Brewing Group has introduced a new Convenience Vision, with the aim of helping the trade drive beer category growth.
Data gathered by BBG is passed on to wholesalers so they can know where the greatest demand within the category is and therefore where they should focus their resources.
One sub-sector of the category showing growth is world lager and BBG has reacted to this with the introduction of Via Roma and the relaunch of Mahou.
Ollie Devon, Commercial Director, Convenience & Wholesale at Budweiser Brewing Group, talks to Wholesale Manager about what trends are driving the market and how the company works with wholesalers to help them grow their sales.
How have you stayed customer focused in your role?
Budweiser Brewing Group partners with customers to build impactful Sales plans that drive growth with the strongest brands in the Category. As leaders of the Beer Category, we offer a diverse portfolio that fits the evolving tastes of shoppers, no matter the occasion. Tapping into what’s proving valuable to customers and consumers across the Convenience sector allows us to invest in initiatives that drive sales. An example of this is our PMPs offering, informed by research that revealed that more than two-thirds (68%) of independents are in favour of the format, citing how they give shoppers confidence as the key reason.1
The positive interaction with PMPs allows for evolution through the likes of Slash Priced Marked Packs (SPMPs). These are used during popular calendar moments that are synonymous with increased consumption, such as public holidays, or sports tournaments, to increase sales.
Remaining customer focused allows us to pivot our offerings to best counteract broader issues that could affect consumer spend, especially as consumers are seeking increased value given current economic trends across the nation.
Can you give us examples of successful ways you worked with your customers in 2023?
Budweiser Brewing Group is continuously strengthening its relationship with customers to achieve success, reflected in a positive Advantage Survey Result in 2023. We collaborate with customers (who have the best knowledge of their consumers) and utilise our data insights, to create and cater to evolving industry trends. There’s been real growth in the No & Low Alcohol sector over the last three years, where there’s been a +64% value growth in the no-and-low alcohol category – now worth £34.2m in the convenience channel2. To support the changing landscape, we offer alcohol free products across many of the most popular choices, including Stella Artois Alcohol Free, Budweiser Zero, and the very successful Corona Cero.
Taking this further, our growing external field team, McCurrach, is working with independent retailers for a bespoke offering to get into the granular detail of what shoppers want. Successful insights have given the ability to offer hyperlocal solutions, by following the journey from creation to consumption, which has seen SKUs rise from 8.4% to 11.4% in one year.
Calendar hooks are always a key moment to drive sales, and in the run-up to the UEFA European Championship™ 2024, Budweiser activated its biggest campaign to-date in the Off-Trade.
To support this campaign Budweiser launched limited-edition UEFA European Championship™ packaging which was available in grocery and convenience channels across the UK. The limited-edition packs featured a scan-to-win mechanic where shoppers could win one-off experiences, tech goodies, and Budweiser merchandise. Budweiser also provided customers with an array of POS and displays that heroed the England players, as well as 3-D projections of some of the current England squad in select stores.
What trends are driving the market?
Consumer demand for premium options isn’t something expected to decline anytime soon. Customers will continue to spend on premium and super-premium beer options. We’re forecasting that by 2025, 65% of total beer consumption will be from brands in the premium or super-premium category.3
A growing consumer trend for moderation has seen an increased interest in lower alcohol by volume (ABV) beverages. Budweiser Brewing Group monitors market trends such as these to accommodate a diverse range of consumer preferences. Ensuring inclusivity within the category by offering a variety of no to low alcohol options is crucial in assisting consumers in balancing their alcohol consumption with non-alcoholic choices.
The 18-34 age demographic notably exhibits a preference for premium lower alcohol beverages and moderation4. This presents an opportunity for retailers to engage this audience using a trusted brand that consumers are already familiar with.
Do you have any NPD to talk about at the moment?
As the world lager category continues to grow5, Budweiser Brewing Group has expanded its portfolio in the sector by welcoming Via Roma and relaunching Mahou in a new format, leveraging Mediterranean lagers popularity among UK consumers.
We have also welcomed Brutal Fruit, a premium cider, to our Off-Trade channels. The UK cider category represents a huge opportunity of £2.9bn in sales6, but is losing relevance with women and younger drinkers7, who look for modern, sophisticated brands that are less sweet and sugary8. Brutal Fruit Cider taste addresses these consumer needs, and has proved a massive success in South Africa, as the country’s 3rd most valuable alcohol brand9.
How do you work with wholesalers to help them grow their sales?
This year, Budweiser Brewing Group launched its new Convenience Vision, which allows us to work with customers to drive growth within the beer category. The team ran a series of webinars to help customers understand the key trends within the category and how they can maximise sales.
Our work within the convenience sector connects to how we navigate with wholesalers. The data allows us to inform wholesalers where demand for product may be rising or falling, and where focuses should lie. With so many major sporting events taking place this year, there has been a real opportunity for customers to take advantage of upselling across the beer category. In order to make our process with customers seamless, we built bespoke strategies around our E-comm, whilst leveraging customer apps to offer the best possible experience.
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