In collecting a list of hot trends in retail for 2016, CSP's editors uncovered several items specific to packaged beverages.
Here's a look at the five ideas most relevant to the convenience-store cold vault:
1. Oh, I believe in yesterday
Everything that’s old is new again—literally. Surge Cola, Clearly Canadian, New York Original Seltzer, Suzy Q’s, Hydrox Cookies … we could go on. Consumers spoke, manufacturers listened and several long-discontinued products are making a comeback thanks to the power of social media and very vocal brand fans, some of whom even launched online Kickstarter campaigns to bring back their favorite products. Anything that inspires that sort of passion should be worth space on your shelf.
2. You know it’s true: Everything I do, I do it for you
Consumers check their phones every three minutes. To grab those busy eyeballs, some genius at The Coca-Cola Co. developed its Share a Coke campaign. After all, you have to look up to fınd your name—then you can look back at your phone when you’re posting about it on social media.
And now other brands are jumping on board. Hershey’s released a new personalized package design in September, each highlighting one of the 26 symptoms of hunger including loopy, dramatic and feisty. So if you want that extra-dramatic millennial named Jacob to buy a Snickers bar and a Coke next year (and then tell all his friends about it), take advantage of these campaigns and heighten that experience through expanded marketing and merchandising efforts.
3. The millennial: You are what you tweet
Not new for 2016, you say? True—we’ve been talking about millennials for a while. What is new, however, is the speed with which their influence is affecting our industry.
This year The Coca-Cola Co. tried to nail down exactly what’s going on. Their “Knowledge & Insights iSHOP Tracking Study” details key insights and takeaways to help retailers fulfill millennial shopping desires. In aggregate, millennials have a $281 average monthly spending budget, and they account for $200 billion in annual grocery spending. About 25% more beverages land in their shopping baskets vs. that of other demographic groups, and they make 20 billion grocery trips a year across all channels. They’re fast. One out of every three trips lasts five minutes or less. They are also impulsive—74% of trips include no preparation, and 63% are more likely to buy a meal or snack to eat immediately. Thirty-five percent of their trips include a nonalcohol ready-to-drink beverage.
They are also plugged in. More than half of the U.S. users of Twitter are millennials.
What they want to buy from you: Craft beer, sodas with their names printed on the label and any grab-and-go item that is sriracha-based.
4. Uberization (noun): to use smartphone technology, à la ride-sharing service Uber, to leapfrog the middleman, minimize overhead and deliver products—food, fuel, services and, yes, beverages—direct to the consumer
One area where this technological revolution is making the biggest bang is online groceries.
“If it is growing and you’re not part of it, you will be at a disadvantage,” warns Bill Bishop, chief architect for Brick Meets Click, Barrington, Ill.
Although traditional grocers are the most vulnerable, c-stores have a genuine opportunity. Bishop points to Europe, where the expansion of online shopping has triggered the development of a network of pickup points at brick-and-mortar retailers.
“People are going to be looking at building out a network of grocery points. The c-store network is a very logical place to do that,” says Bishop.
5. Belly up to the bar inside your fine local retail establishment
Starbucks, Target and even Wawa are following grocery retailers such as Whole Foods, Wegmans and Mariano’s into the world of in-store alcohol service, serving up beer, wine and more for customers to sip while they shop. What’s the appeal of a liquor license? For most of these retailers, it’s the embrace of the “third place” as they try to extend customers’ visits and make their store a genuine social hub.
Click here to read CSP’s complete list of the biggest trends and greatest ideas for the coming year.
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