Grocery stores are one of the biggest sales channels for wine. Curtis Mann, Group Vice President of Alcohol of the Albertson’s Companies, gives us the inside scoop on buying trends, how to sell into Albertson’s, and the rise of the use of digital. Learn about the dynamics of the grocery wine market and what makes Albertson’s “locally great, nationally strong.”Detailed Show Notes: Grocery as part of the wine marketMulti-outlet wine market ~$12-13B / yearTotal wine market ~$60-70B / year (multi-outlet ~20% of the total market)Albertson's Companies' wine overview~25 different grocery brands, ~2,000 storesWine is a key element of business - it drives sales and customer loyalty, some customers come to stores because of the wine selectionSome stores have up to 3,000 wine SKUsStores with more premium selections are correlated with location (high socio-economic demographics) vs. grocery store brandThe focus is more on the “premium” price segment ($9+ based on IRI)Top brands - Barefoot, Kendall Jackson, up-and-coming brands - Butterl Josh, but wine is very diversified, big brands are still a small part of the marketPremiumization helping imports, including New Zealand Sauvignon BlancWine buying trendsConsumers are called to authenticity - they want to know what’s in their wine, the appellation, sustainability, and organicConvenience - cans, seltzer, ready to drink Premiumization - $10-20/bottle, $30-50/bottle, up to $100/bottle (e.g., high-end Bordeaux, Napa Cabernet) ranges all doing well, some categories accelerating with potential out-of-stocksWine customer demographicsGen X & Baby Boomers - still buying a lot (more in bulk and volume), but less than beforeMillennials are the new customers - buying more, less loyal to wine vs. other drinks, and have less expendable income; their preferences are different from Gen X and Baby BoomersTo meet the changing demographics, Curtis looks forward 3-5 years to develop his shelf set/selections of winePromotions/discountingLimited brand loyalty in wine, customers often default to pricePromotions are very importantNeed to work between price and product to optimize sales and not over-rely on priceWine selectionWhat does it mean to customers? Each wine must have a purpose vs. the other ~1,500 SKUs on the shelfTagline - ‘locally great, nationally strong’; try to give local stores more voice (e.g., Portland stores have more Willamette Valley Pinot Noirs)Flagship Stores (e.g., Andronico’s, Pavilions) - higher-end, eclectic offeringsSteps to sell into Alberston’s - have the 4 P’s put together - distribution network, pricing, product, and where you fit on the shelfGenerally need to place wine 4-6 months in advanceNeeds a UPC code on the bottlePrivate Label/“Own Brand” winesThe goal is to provide the best price to value for customersThe intent is to drive loyaltyNot a dominant part of the businessTrying to create wines that are a draw and get good scoresSelection is built around education, the desire to learn about the wine category through own brandsSuppliers have connections to maintain supply, which can help Own Brands overcome supply challenges (e.g., 2020 Napa, 2021 New Zealand)Core elements of success for the grocery channelThe selection keeps people in the storeRelating the wine to the food in the store (food-wine pairing)E-commerceConvenience (e.g., ready to drinks) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.