As retailers plan marketing for alcohol for the coming Christmas rush, ADRIAN FERNANDES discusses the state of the market and the value newspaper media can add.
The Australian liquor retail sector is performing admirably in the face of declining alcohol consumption. According to IBISworld, liquor retailers are set to grow revenue by 3.1 per cent per annum over the next five years.
The research agency predicts growth will be largely fuelled by Woolworths and Wesfarmers, putting pressure on independent bottle shops.
Latest emma data shows Woolworths-owned stores dominate the liquor retail market. Its brand Dan Murphy’s is the category leader, attracting 4.5 million customers over a three-month period, or one in four Australian adults. Woolworths’ other bottle-shop brand, BWS, is No.2, attracting 3.2 million buyers per quarter.
Wesfarmers-owned stores – Liquorland and First Choice – lag behind on 14.1 per cent and 5.8 per cent of shoppers respectively.
German retailer Aldi is making impressive inroads into the market, attracting one million liquor buyers in the past three months.
Revenue growth in the category is all the more impressive considering society is drinking less than at any other time in the past 50 years, according the Australian Bureau of Statistics. Rising health awareness has seen many cut back on their alcohol intake, it says.
Data from emma indicates a similar finding with 48 per cent of adults saying they have reduced their drinking. One in four say they are becoming increasingly conscious of the calories in the alcohol that they drink.
Price is at the heart of the sustained growth in liquor retail growth as one in three consumers (32.4%) say they prefer to buy alcohol in bulk for better value.
Full strength reach with newspapers
Data indicates that liquor store brands will reach their target market with newspaper media advertising. Advertisers can reach 93 per cent of liquor store customers with newspaper media.
Some 7 million print newspaper readers visited a bottle shop in the last four weeks.
Average spend figures indicate that readers are happy to spend big on their favourite tipple.
Some 40 per cent of digital newspaper readers say they buy their favourite brand of alcohol regardless of price.
Last month, the typical reader spent $49.86 on beer at a bottle shop. The average monthly spend by readers on spirits is $62.46.
Data shows that the majority of newspaper readers are wine buffs. Some 46 per cent of the audience bought a bottle of wine in the last four weeks.
Readers spend an average of $55.93 when buying red wine and $49.13 when buying white.
Newspaper readers are also 10 per cent more likely to be members of a wine club than the general public.
For more information on why retailers should use newspaper media advertising in the run up to Christmas, click here.