Consumers are continuing to celebrate and socialize at home, which offers retailers continued opportunities to boost sales of alcohol, according to a new report from IRI.
The IRI’s 2022 Midyear Alcohol Update notes that despite inflation concerns, retail prices for alcohol remain more moderate than other CPG categories. Additionally, consumers are staying home in an effort to avoid the challenges restaurant and bars are having with labor shortages, rising prices and reduced menus.
“Consumption trends continue to fluctuate with the impact of supply chain challenges and rising inflation, but opportunities for growth remain,” said Scott Scanlon, executive vice president of the Beverage Alcohol Vertical, IRI. “Consumers are looking to indulge and create entertaining experiences at home, and retailers should emphasize premium products and products with unique attributes in this space.
As consumers adopt healthier habits, better-for-you beverage alcohol options and alternative alcohol products continue to gain traction, the report noted. New twists on familiar favorites, interesting flavor combinations and contemporary claims are also popular with consumers.
Also, premium beer, wine and super-premium spirits continue to drive growth with e-commerce remaining a viable channel for beer.
Other key findings include:
- With increasing inflation and rising competition among retail outlets, promotions will be an essential strategy in retaining shoppers.
- Ready-to-drink cocktails are a growth opportunity, but brands need to have a point of differentiation.
- Marketing should focus on giving consumers options and inspiration for at-home entertaining occasions.
- E-commerce is an integral part of a consumer's shopping experience and is important for omnichannel success.