Pricewatch: 15 February, 2019 – Craft beer
Find out how your store compares on its pricing of craft beer
Craft beer has turned into more than just a trend, it is a segment that some alcohol shoppers only buy into.
As a result, craft beer is now worth £150m as a category, and Nielsen research predicts it will reach £255m in the next two years.
Rachael Grist, category manager at Costcutter, said with the average price per litre being £4.46, which is almost double that of the beer market as a whole, it is a major opportunity for retailers to increase premium sales.
One sub-category that is booming is craft ales, with 50% of the retailers we spoke to saying that is where the majority of growth is coming from, especially in bottled formats.
Looking at the bestselling bottle formats in this week’s chart, BrewDog is overriding the competition
The multiples don’t seem to stock the full range, so for independents, this presents a way to take market share and capitalise in what seems to be a shopper favourite.
|Product||Average price||Booker RRP||NEIGHBOURHOOD OFF LICENCE IN LARGE SUSSEX TOWN||SMALL OFF LICENCE AND SHOP IN SHEFFIELD SUBURB||SUBURBAN CARDIFF NEIGHBOURHOOD SHOP||LOCAL SHOP CLOSE TO STATION IN ESSEX COMMUTER TOWN||C-STORE IN MODERN RESIDENTIAL AREA OF WARWICKSHIRE TOWN||NORTH LONDON HIGH STREET GENERAL STORE|
|HOP HOUSE 13 650ML||£2.58||£2.59||£2.50||£2.49||£2.59||–||–||–|
|BREW DOG PUNK IPA 330ML||£2.23||£2.25||£2.49||£1.99||£1.99||£1.99||£2.25||£2.19|
|HOP HOUSE 13 330ML 4PK||£5.29||£5.49||–||–||–||£4.99||£5.49||–|
|BREWDOG DEAD PONY CLUB 330ML||£2.20||£2.15||£2.49||£2.00||£1.95||£1.99||£2.15||£1.99|
|WHITSTABLE BAY PALE ALE 500ML||£2.24||£1.99||–||£1.99||–||–||£1.99||£1.79|
|BREWDOG ELVIS JUICE BOTTLE 330ML||£2.35||–||£2.49||–||£1.99||£2.35||–||£2.49|
|BROOKLYN LAGER CAN 355ML||£2.33||£2.39||–||–||–||–||£2.39||–|
|BREWDOG NANNY STATE 330ML||£2.00||–||£2.00||–||£1.99||–||–||£1.99|
|BREW DOG 5AM SAINT 330ML||£2.21||£2.25||–||£2.00||£1.99||£2.05||–||–|
|WHITSTABLE BAY ORGANIC ALE||£2.27||–||–||–||–||£2.19||–||£2.19|
|BREWDOG VAGABOND 330ML||£2.35||£2.25||£2.49||£2.00||–||–||–||–|
|SAM ADAMS BOSTON LAGER 330ML||£1.76||£1.79||–||–||–||–||£1.79||–|
EDFM is a specialist in helping leading suppliers to the UK’s independent convenience channel get value, insights and business benefits from EPoS data. To find out how they could help you call 07976 295094
St Woolos Stores & Post Office
Size: 200sq ft
Price slightly above the RRP on single bottles
When it comes to individual bottles of craft beer, we price them slightly above RRP to make a better margin. However, we also have multi-buy deals on all the time, sometimes three-for-£5 or -£6 – it depends on what the RRPs are for each bottle individually. Being a 200sq ft store, we keep our craft range right next to other beers, and even though most people in our area will go to a multiple to buy it, we still keep a few lines for impulse purchases. We tend to stick to only a few brands, such as Doom Bar and BrewDog, but offer a wide variety in each.
Whissendine Post Office
Location: East Midlands
Size: 1,100sq ft
It’s a good idea to always have multi-buy deals on offer
It is best to stick to the RRP on single bottles of craft beer, but sometimes we do charge around 20p more, especially if we have an ongoing multi-buy deal – for example, three-for-£5.50. This encourages more shoppers to purchase three bottles, because it’s better value for money. I buy from Bestway or Booker and stick to RRPs. When it comes to bestsellers, Hobgoblin Gold is really popular, followed by Old Speckled Hen. I keep bottled craft beers rather than cans, because they look nicer on the shelf together. The craft beer trend is set to grow this year.
Budgens of Broadstairs
Size: 2,500sq ft
Try and source your own suppliers to have a standout rangeBudgens have a small range of craft beer brands – this is because a lot of their retailers tend to source craft lines themselves, those that are perhaps local to their area. As a result, we find our own suppliers and currently work with a few. After chatting to other suppliers in our area, we do have the cheapest range in store – apart from the ones supplied by Budgens, which we sell at RRP. As a result of finding our own, we are able to stand out from local competition and offer shoppers ranges they might not be able to find elsewhere.
Oaktree Stores Londis
Size: 1,200sq ft
Source local products if you are able to
For us, locally-sourced craft beers sell a lot better than mainstream brands, even though the RRP is higher – our bestselling brand is a craft ale called Flack Manor. Other craft brands we sell include BrewDog, which is also popular. We keep craft beers on a separate shelf to let it stand out and to let shoppers know we stock it. We normally have them on multi-buy promotions to help increase sales. I think it’s important to invest in local brands because shoppers are normally keen to support local breweries, and it gives your store a point of difference.
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