GettinG the Most BanG for Your Brew
Jimmy Ellsworth, national account director for Cooperstown, N.Y.-based Duvel USA, urges retailers to take a strategic approach to stocking their beer sections, including taking packaging and shelf space into
account. For example, Ellsworth points out that if a typical 750 milliliter offering measures 3. 4 inches wide versus the typical eight inches
required for a six-pack, and over the course of four months the space
allocated to the 750 ML item has generated $191 per linear inch while
the six-pack has generated $162.50 per linear inch, the return on investment of the 750 ML is 15 percent higher than the six pack.
On the other hand, party packs have not gone out of style. Satyal says
Heineken has found many retailers are seeking out innovative packs
for party occasions that offer convenient solutions. To cater to this
need, the company recently developed an 18-pack cooler that boasts a
cardboard packaging, allowing consumers to chill their beer by simply
removing the top of the case and adding ice.
Speaking of chilled beer, Ellsworth also warns against neglecting the
variety of cold beer that is available.
“The first step is making high-end craft beers available in the cold
box,” he urges. “We are investing in new packaging, people, marketing and slimmer margins to entice both the retailer and the consumer.”
explorinG the Beer tree
To help an unnamed major national retailer get past its beer woes,
Heineken recently designed a Consumer Purchase Tree (CPT) that
assists with assortment planning. The project’s overall goal was to define
how a beer aisle should be reset to reflect how shoppers make decisions
about the type of beer they purchase. The CPT was based on the specific
retailer’s sophisticated shopper card data and allowed Heineken officials to help scope the entire tree, and share category solutions with the
retail team. The solution included an analysis that showed brand and
pack leakage to a competitor while offering new ways to engage shoppers through educational programs targeted to them.
Creating in-store displays that up visibility for a retailer’s most profitable products is a great way to boost revenue, and beer is no exception.
George Ward, director of national off premise accounts at Boston-based
Boston Beer urges grocers to use displays to drive excitement for occa-sion-based impulse purchases such as tailgating, holiday entertaining
and large sports events. He also suggests boosting excitement by offering top-selling brands in standalone displays, as opposed to grouping
them in with other breweries.
Creative Displa Ys
Ward further believes that these displays look and sell better than those
with multiple brands set by style, and they have further added value if
they promote a pricing special, which should be displayed prominently
to show the buyer the value. According to Ward, craft beer should also
be strategically displayed throughout the store.
ON HURRICANE RELIEF
as floriDians anD texans BraCeD theM-
selves for hurriCanes harve Y anD irMa in
septe MBer, Anheuser-Busch was ready to respond.
The company got innovative and filled its beer cans with
emergency drinking water to be delivered to victims of
The St. Louis, Mo.-based company sent over 800,000
cans – of water to various regions of Texas and Louisiana
as Harvey swept in. As the U.S. was hit with Hurricane Irma
within only a few days, A-B was right there again, delivering over 310,000 cans of clean, safe emergency drinking
water to Florida.
The company halted production of its Cartersville brewery on Labor Day to make sure a supply of drinking water
would be available as the hurricanes drew closer. A-B also
worked with the American Red Cross to distribute the water
along with the help of its wholesale partners including
Southern Eagle Distributing, City Beverages and Gold Coast
“Putting our production and logistics strengths to work
is the best way we can help in these situations” said Bill
Bradley, Anheuser-Busch’s vice president of community
affairs at the time of Hurricane Harvey. “Having suc-
cessfully delivered three truckloads of clean safe drink-
ing water, when we received the request for additional
shipments of water, we were happy to be able to help. By
pausing our production line to produce more emergency
drinking water, we are ensuring that we are always ready to
support American communities in need.”
In addition to the canned water initiative, A-B donated $1
million to the American Red Cross’ Annual Disaster Giving
Program to help ensure the Red Cross could take immediate
action to the disaster victims.