Are you on point with the latest beverage trends?
Going from vending to micro markets allows for a significant upgrade in the variety of beverages that you offer, going from 8-10 beverages to upwards of 40+. According to Reuters, on March 10, 2017, “Americans are now drinking more bottled water than soda.”
Bottled-water consumption in the U.S. reached 39.3 gallons per capita while carbonated soft drinks slipped to 38.5 gallons.
Soda consumption regularly exceeded 50 gallons per capita in the late 90s and early 2000s.
Total bottled water volume rose about 9% to 12.8 billion gallons in 2016.
Stats by Beverage Marketing Corp
Coca-cola states, “Overall, more consumers are making trips for sparkling water, with 12.9% of all shoppers stopping to pick up sparkling water products.”
Bernicks, a Minnesota based vendor, blogged about the emerging markets in sparkling water saying, “Sparkling water offers several health benefits to those who tend to be more health conscious. First, it’s a great way to add more water to your diet – particularly for those who are good at drinking regular water but desire something else to supplement their hydration habit. Secondly, as it contains low or no calories, sparkling water is an excellent (and delicious) beverage alternative.”
Bernick’s blog goes on to give a few suggestions on what options you should consider offering to your customers, “Perrier and San Pellegrino are popular choices, and they are seen as two of the most popular premium brands of sparkling water. Of course, you’ll also want to consider flavored sparkling water options, such as Klarbrunn Sparkling which is also home to Vita Ice. Finally, if you’re simply looking for the most popular, please-all brand of sparkling water, consider Aquafina Sparkling, which has been the best-selling brand in the U.S. for over 30 years, and it’s also the number one canned brand worldwide. And, did you know the bubbly super brand got its start at a small Wisconsin brewery? True story. ”
We completely agree! And would throw out there that Dasani boasts a nearly 90% consumer recognition and is another great option for flavored sparkling water.
Bottom-line: We think it would be a great benefit to your stores to add, update, and include some sparkling water options to your markets!
According to Coca-cola, “retail outlets have the opportunity to increase profitability and leverage the connections between food purchases and three on-trend beverage categories: sparkling water, ready-to-drink tea, and still water.”
Here is what Coke says about those three beverage categories and combined food to build cross-store connections (we’ve just put in items that make sense for micro-markets):
1. Sparkling Water Connections
Consumers are increasingly purchasing sparkling water with items tied to entertaining and snacking, specifically deli dip, specialty cheeses and value-added vegetables.¹
• Deli dip: Sales of deli dip increased 8.9% from the previous year.¹ Trips with both deli dips and sparkling water were up 25% over a year ago, and the average basket with both items was worth almost $114. (Think Hummus cups, salsa, veggie & dips)
• Specialty cheeses: Sales were up 7.5% from last year, with trips containing specialty cheese and sparkling water increasing 7% over the previous year.¹ When the two items are purchased together, the basket is worth nearly $121.¹ Utilize sparkling water to connect with premium, entertaining categories to further grow the connection between sparkling water and deli dip, and specialty cheese. Cross promotions can increase sales in both categories. (We’re thinking “adult” Lunchables, cheese and crackers, cheese sticks)
2. Ready-to-Drink Tea Connections
The Nielsen study found strong sales and basket connections between RTD tea and every day, fresh ingredients, such as ground turkey, packaged salads, and deli cheese. In fact, 44% of tea buyers also buy deli cheese, and there is an 82% buyer overlap between RTD tea and packaged salad.
• Ground turkey: Since RTD tea and ground turkey buyers over-index as African American and Hispanic, leverage both the beverage/food connection as well as the appeal to key demographics.¹ Keep these consumers in mind when deciding on markets for co-promotion or meal deals. (Okay, so you probably don’t have ground turkey in your market but what about turkey based lunches or snack items? Those fancy Lunchables, or upscale deli sandwiches!)
• Packaged salad: Focus on increasing the frequency of trips that include both RTD tea and packaged salads by offering coupons with packaged salads or promoting them in circulars together. (We think this one is self-explanatory)
• Deli cheese: Merchandise tea near the deli with an emphasis on drinking tea with lunchtime sandwiches. Focus on cheese flavors that appeal to RTD tea’s key demographics, older families, and Hispanic households. (Deli sandwiches and your healthy meal options)
3. Still Water Connections
As still (or base) water gains in popularity, the Nielsen study revealed opportunities for retailers to leverage sales and basket connections with traditional staples that are occasion-focused. Consumers in this category are in the mid- to a high-income range and have bustling families with children of all ages.
• Deli items: There is a strong sales connection between still water and quick trip and alternative channel options.¹ However, this category had a weak basket connection with still water (as opposed to meat, which had both high sales and high basket connections). The opportunity for retailers is to show the value of your category on different trips and/or in different channels. For example, display base water in the deli department to encourage quick trip purchases together with deli pizza, or cross-promote base water and other deli-prepared items together as a quick, easy family meal deal. (Water, its essential for life)