Retail Players Adapt To Pricing Fluctuations, Fast-Changing TrendsFebruary 8, 2023
Beverage alcohol retailers are planning to capitalize this year on projected steady growth trends for Tequilas, Bourbons, and Irish whiskies, but spirits-based RTDs appear to be the catalyst poised to spearhead industry gains. These developments and the rapidly changing beverage alcohol landscape have retailers increasing their cooler space and investing in technology to keep pace with pricing fluctuations.
Sales of spirits-based RTDs at Kreston Wine & Spirits’ two Delaware stores were strong in 2022 and continue to grow. “High Noon ($10 a six pack of 355-ml. cans), Crown Royal ($14 a six-pack of 12-ounce cans), Jack Daniel’s ($10 a six-pack of 12-ounce cans), and Cutwater ($13 a six-pack of 12-ounce cans) continue to grow even during the winter months,” says owner Bob Kreston.
The Wilmington, Delaware-based retailer recently expanded its Middletown location from 6,400 square feet to 11,200 square feet and is expanding refrigeration to keep up with the influx of canned offerings. “We kept our existing cooler and are adding a 17-door cooler,” says Kreston. “With the growth of craft beers, hard seltzers, and canned cocktails, it’s nice to increase the variety that we offer chilled.”
At Sal’s Beverage World’s three stores in the metro Chicago area, store owner Vince Liotta is testing electronic shelf tags, which will help alleviate the stress of the constant price changes. “The electronic price tags will automatically change as I raise prices in my system, similar to how my website works,” he says. “Old sale prices will turn off and return to regular prices and the new sale prices will turn on. We are seeing a huge number of price changes on the horizon, and I don’t think there is going to be any sign of stopping. Adding these tags will help us to match competitor sale prices instantly and also make sure our pricing in-store is accurate.”
Liotta and Kreston both reported strong Tequila sales in 2022, and it appears consumers in both markets can’t get enough hand-selected single-barrel Bourbons. “So far in 2023, I have already received and sold three hand-picked barrels that were actually supposed to ship in 2022,” Liotta says.
Kreston tries to get as many hand-selected single-barrel Bourbon offerings as he can for his stores. “People love them, and we do well with them,” he says. “We’ve created a nice following and clientele that gets excited when something new comes along. We do some in-store tastings. The following and demand for single-barrel Bourbons is amazing.”Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
Tagged : Crown Royal, Cutwater, High Noon, Jack Daniel's, Kreston Wine & Spirits, Sal's Beverage World
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