THE SHOPPER-FIRST SHELF
Overly complex product classification systems. Overwhelming selections. Outdated models for space management. The industry is critically missing out on sales opportunities and providing customers the experiences they want.
SCROLL DOWN
Simplify organization and optimize aisle sets with consumer and market insights
Right-size assortment based on true SKU performance and dollar contribution
Understand your customers' decision process to create better experiences and grow the basket.
Consumer insights & innovative strategies for growing category sales
Everything about today's BEER and WINE shopper has changed, but in most cases — the store shelVES haVE not.
Constellation Brands' The Shopper-First Shelf is a proven, innovative approach to grow wine and beer sales by optimizing shelf flow, space, and assortment based on insights into how today's consumers shop.
Evolve the shelf to meet the behaviors and expectations of today's shopper.
In this interactive site, you'll find everything you need to take action and drive new levels of category growth in beer and wine.
Explore category evolution now
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COMING SOON
Shopper Insights Consumer Decision Tree Flow Assortment Space High-End
Beer
Wine
This site provides recommendations for shelf set optimization and relevant shopper insights. For more information, please contact your CBI sales rep or distributor.
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Category Evolution Assortment Space Flow
Shopper Insights Consumer Decision Tree Flow Assortment Space High End
Ecommerce
GO TO CATEGORY EVOLUTION
SHOPPER Insights
Who is today’s wine shopper and how do they shop?
As we rethink how the shelf is set, let's first step back and look at the store from the shopper’s perspective and what motivates their decisions. Wine consumers are highly engaged, open to influence, and define value as more than just price, with the in-store experience playing a vital role in their purchasing decisions.
of consumers are engaged in-store, browsing and/or comparing prices
70%
plan the category only
53%
buy wine on impulse
29%
Potential barriers to purchase
Common barriers to wine purchasing reflect confusion and complexity at the shelf:
of shoppers can’t decide what wine to purchase
21%
Indecision
decide to buy another type of alcohol
17%
Substitution
?
can’t find the exact product they wanted
Findability & Availability
didn’t see anything they wanted
15%
Dissatisfaction
Competing with ecommerce
Meanwhile, ecommerce is raising the bar. In-store shopping routines that don’t mirror intuitive online shopping are at risk of losing lucrative sales.
THE SHOPPER-FIRST SHELF OPPORTUNITY
By rethinking shelf flow, assortment, and space, there is tremendous opportunity to maximize the shopper experience and the wine category’s performance. In the next sections, you’ll see recommendations on how to:
Make the shelf easier and faster to shop, increasing purchases, trade-up, and loyalty Optimize assortment and ensure availability of the most valuable items Increase space for high-end and high-growth items and reduce out-of-stock risk
GO TO CONSUMER DECISION TREE
Sources: Envirosell P2P, Nielsen, Category Shopping Fundamentals 2017 Constellation/Envirosell TBA Path-to-Purchase Custom Study, 2017 Wine Market Council, Full Glass Research
Consumer Decision Tree
Thinking like a wine shopper means taking a deep dive into how consumers make decisions. The Consumer Decision Tree (CDT) is a tool that provides some of those key decision-making insights based on consumer choices and loyalties over time:
The Consumer Decision-Making Process
How do shoppers buy in the wine category, aisle or occasion?
What attributes do they look at to filter down to what they want to purchase?
What drives them to make substitutions?
Occasion, more than anything, defines the shopper’s decision. Think of it the way people chose the music they listen to at any given moment. They select from several playlists of varying genres based on different moods and activities — work, exercise, cooking, relaxing, jam-outs — whatever they’re feeling at that occasion.
What’s the Occasion?
Key Factors in the Consumer Decision Tree: Occasion, Varietal, & Price
1
2
3
Starting with an occasion in mind, consumers make some key de-selections, like color and size, and their navigation path is varietal-centric.
Pricing is not a decision break over time, but there are occasions where decisions are more price-driven. Shoppers can switch between brands at different price points based on occasion, leading to a high level of interaction between value and high-end brands.
Origin is only a key decision only when it comes to “domestics vs. imports,” and even then decisions tend to be based more on varietal than country or region.
A Closer Look
Many factors play into the purchase decision, but the first two levels of the CDT — intention attributes — are especially important as quick “de-selectors” at the shelf.
The lower levels of the CDT are evaluation attributes, representing the things shoppers more often switch-up between trips. Lesser-switched attributes are higher on the tree.
Intent: What did I come here for?
Color, size
Evaluation: What looks good today?
Varietal, brand, size, origin
Shopper Profiles
Sparkling, Rosé, and Sweet
White
RED
GO TO FLOW
Over a year, this shopper tends to buy wines that have a sweet/bubbly profile – sparkling, rosé or sweet varietals. The type of wine, brand, and package could depend on the needs of each individual trip.
Click on a glass
What’s important to this shopper?
• Special occasions are a big influence on their decisions for sparkling and bubbly • Prosecco and rosé sparkling are more for everyday consumption • Likes chilled options • Seeks brands they know and trust
Must haves:
• Chilled options • Brands they know and trust • Gift/specialty packs for sparkling • Flavor selection for sweet • Cans & tetra on-the-go options
X
Over a year, this shopper tends to lean more toward selecting white wines. The size and varietal are dependent on the needs of the individual trip.
• • • •
• Well-marked varietal sections at shelf • Variety of sizes & brands within varietal • Educational signage (i.e. food pairings) • Stock-up options: tetra, 187ml 4-pks • In chardonnay: variety of price & style options • Streamlined or elegant label design
Wines for food pairings “Light” profile, lower alcohol options for the work week Relaxing by self is a top occasion so it’s important to have stock-up sizes Right package sizes/varietals/brands for parties and warm-weather outdoor activities
Red
Over a year, this shopper tends to lean more toward selecting red wines. The size, brand and varietal depend on the shopper’s needs during an individual trip.
Variety of high-end offerings Aging and collecting wine for experiential enjoyment A good cabernet sauvignon under a particular label makes other reds in the same brand more credible Intrigued by dark, mysterious label designs
• Variety of high-end offerings • Shelf-talk for regions & ratings • Dark/mysterious/sexy label design • Variety of everyday options, mainstream brands • Brands they know and trust • New offerings from brands they like
$
Thinking like a wine shopper means taking a deep dive into how consumers make decisions. The Consumer Decision Tree (CDT) is a robust shopper purchasing analysis that provides some of those key decision-making insights based on consumer choices and loyalties over time:
How do shoppers buy in the wine category for an occasion?
What attributes do shoppers consider when making a decision about what to purchase?
What drives shoppers to make substitutions?
What a CDT is NOT:
A decision tree for a single trip
A navigational path (see recommended Shopper-First Shelf flow)
An impact analysis of In-Store Merchandising / Promos
Occasion, more than anything, defines the shopper’s decision. Consider how people choose the music they listen to at any given moment. They may select from several playlists of varying genres based on their current mood and activity. For example, a playlist for running may look and sound much different than a playlist for yoga. In the same way, a person may be a value wine shopper for some occasions (e.g. a casual dinner at home), and a high-end shopper for others (e.g. a gifting occasion, or a special occasion with close friends).
Starting with an occasion in mind, consumers will first make key de-selections, such as color and size. Many factors play into the purchase decision, but the first two levels of the CDT — “intention attributes” — are especially important as quick “de-selectors” at the shelf.
Key things to remember...
A Closer Look at the Decision-Making Process
Over a year, this shopper tends to buy wines that have a sweet/bubbly profile – sparkling, rosé or sweet varietals. The type of wine, brand, and package could depend on the needs of each individual trip. What’s important to this shopper?
Shopper Types & Needs
Sparkling, Rose, and Sweet Shopper
• Special occasions are a big influence on their decisions for sparkling and bubbly • Prosecco and rose sparkling are more for everyday consumption • Likes chilled options • Seeks brands they know and trust
• Wines for food pairings • “Light” profile, lower alcohol options for the work week • Relaxing by self is a top occasion so stock up sizes are recommended • Right package sizes/varietals/brands for parties and warm-weather outdoor activities
RECOMMENDATIONS: • Chilled options • Brands they know and trust • Gift/specialty packs for sparkling • Flavor selection for sweet • Cans & tetra on-the-go options
RECOMMENDATIONS: • Well-marked varietal sections at shelf • Variety of sizes & brands within varietal • Educational signage (i.e. food pairings) • Chilled options • Stock-up options: tetra, 187ml 4-pks • In chardonnay: variety of price & style options • Streamlined or elegant label design
Over a year, this shopper tends to lean more toward selecting red wines. The size, brand and varietal depend on the shopper’s needs during an individual trip. What’s important to this shopper?
• Variety of high-end offerings • Aging and collecting wine for experiential enjoyment • Multiple red offerings under a credible brand • Intrigued by dark, mysterious label designs
Red Wine Shopper
RECOMMENDATIONS: • Variety of high-end offerings • Shelf-talk for regions & ratings • Dark/mysterious/sexy label design • Variety of everyday options and mainstream brands • Brands they know and trust • New offerings from brands they like
Over a year, this shopper tends to lean more toward selecting white wines. The size and varietal are dependent on the needs of the individual trip. What’s important to this shopper?
White Wine Shopper
Pre-store influenceRs
Marketing
Recommendations & sugestions
Occasion
Specials
• Evaluation: What looks good today? While the decision-making process varies by wine type — evaluation attributes include varietal, brand, package type, origin
• Intent: What did I come here for? Attributes: Color, size
sparkling/Rosé/sweet
Awareness
Interest
Consideration
4/3L Glass
Varietal
Size
Lg Box
Brand
AO
Bottle
SS/Multi-Pack
3-5L
<=750ML
1.1.5L
Origin/ Type
Package type
Origin
Intent
"What did I come here for?"
Evaluation
"What looks good today?"
Purchase
*Package type — tetra, glass bottle, box, can, single-serve, etc.
FLOW
Build baskets and shopper satisfaction with an intuitive flow
Using multiple classification systems simultaneously (e.g. origin/country, pack size, brand, price, and varietal) to organize the wine section adds unnecessary complexity, resulting in shopper confusion and missed conversion opportunities.
When wine is separated by origin, it takes shoppers to find what they want
GO TO ASSORTMENT
3x as long
Separating wine by doesn’t reflect how current shoppers navigate the aisle
Pack Size
Simplify the wine section using color & varietal organization
Research shows that most shoppers browse by
color and varietal
Organizing the aisle by these two attributes is a shopper-first strategy that creates the strongest positive impact with shoppers and maximizes basket size.
What about price?
Research shows that on any given trip, shoppers know how much they can and want to spend. They expect higher-priced items to be on the top shelf and value-priced items placed lower. Incorporating this price-flow logic into the wine aisle makes it easier to shop.
Organize the shelf using color blocks and comprehensive, size-inclusive varietal blocks.
Set the shelf the way shoppers think
ENHANCE THE EXPERIENCE WITH SIGNAGE
Complement your newly-intuitive flow with helpful, clear and easy-to-read retail signage highlighting major varietal sections.
use in-aisle signage.
35%
of shoppers
Recommend placing signs at visible height and using contrasting colors to make them stand out
Recommend decluttering the aisle with tags, promo signs and other distractions
Why it works
For shoppers:
For retailers:
The Shopper-First Shelf flow was viewed by shoppers as:
The Shopper-first Shelf flow outperformed across several key measures:
The most organized The easiest to understand Offering the best variety
Highest shopper conversion, basket ring and category lift Strongest performance of high-end wine segments Highest engagement with trending segments such as small sizes and premium box
Place sparkling and roses together in a high-impact position, which gets shopper attention and serves as an orienting point of the wine section.
Set high-interaction, non-cannibalistic varietals together.
RECOMMENDATIONS
Within each varietal block, start with alternative packs, putting larger sizes lower and smaller sizes higher.
Follow alternative packs with 750 ml packs organized by price, with most expensive on top and least expensive on the bottom.
PRE-PLANNED WINE ATTRIBUTES
4
5
Sources: CBI/Envirosell P2P, CBI / IDG Custom Wine Simulations, N=1880, 2018 Constellation Brands / IDG Custom Wine Aisle Simulations, N=1880, 2018
EXAMPLE CHARDONNAY SECTION
Assortment
Today’s shoppers see more variety on the shelf than ever before – and they are getting overwhelmed.
More SKUs do not mean more sales
Crowded, complex shelves actually lead to higher ("the paradox of choice")
walk-away rates
Up to can be removed from the shelf without negatively impacting sales
15% of SKUs
In fact, removing underperforming and low-incremental products can actually increase category dollar sales.
More space for productive SKUs Easier navigation that drives purchases Encouragement of shopper trade-up
Incrementality: Getting the most valuable SKUs on the self
Defined, incrementality is the unique contribution or value that an SKU provides to the category — the percentage of additive dollar sales. It’s the most important measure to consider for assortment optimization, enabling you to make informed decisions about which SKUs provide the most profitable selection without redundancy.
• Uniquely valuable to the category with low substitutability • Dollars are “new” with minimal cannibalization • When these SKUs are removed, sales are lost
High incrementality SKUs:
Low incrementality SKUs:
• Redundant with other items and with high substitutability • Dollars come from other SKUs, cannibalizing sales • When these SKUs are removed, shoppers simply switch their purchase to another SKU
The Shopper-First Shelf offers an objective, data-driven framework with recommendations on assortment which measure incrementality against dollar velocity. Once each SKU is mapped within the framework, it becomes clear which action to take.
Deciding what to keep or remove
Prioritize the distribution of high incrementality SKUs
RECOMMENDATIONS to increase sales:
Evaluate low incrementality SKUs and remove redundant items
Reinvest freed space to incremental SKUs and growing segments
GO TO SPACE
Here's how:
Sources: IRi Assortment Optimization 2019, averaged percentage of “negative incrementality” SKUs across 27 RMAs
Easier navigation that drives purchases
Encoragement of shopper trade-up
Space
Historically, shelf space has been allocated using unit movement and days-of-supply minimums. However, these approaches often underserve sales potential because they're based on past trends instead of anticipated changes in growth. As a result, top-selling SKUS and lucrative high-end segments are significantly under-spaced relative to their sales and potential growth, with a long tail of items taking up valuable shelf space.
Category growth drivers are often under-spaced
A more progressive approach lies in the “Space-to-Opportunity” method, based on dollar sales instead of unit movement, that uses predictive modeling to consider future growth beyond historical trends.
RECOMMENDATIONS RIGHT-SIZE THE SHELF WITH THE SPACE-TO-OPPORTUNITY METHOD
Capitalize on premiumization by prioritizing space for highly incremental, high-end items that are driving category sales.
Add more facings of highly incremental, top-performing items that drive category sales
Create SKU “blocks” for a billboard effect that facilitates shopper navigation and conversion
2 Facings
1 Facing
GO TO HIGH-END
Sources: IRi Fall 2018 Shelf Audit Collection, Total U.S. Grocery IRi ILD; Total US Grocery; footage based on Fall 2018 Shelf Audit Collection; POS based on 26 weeks ending 12/30/18; Space to Sales=Facings Shr./Dol. Shr.
Premiumization has been a persistent trend across food & beverage, and the wine category is no exception. As consumers continue to trade-up, higher-end wine is anticipated to drive >70% of total dollar category growth through 2022, growing dollars at a CAGR of 3-6% and outpacing the mainstream — which is expected to grow at a rate of +1-3% over the same period.
High End
The Opportunity
While High-End wine has traditionally been defined by price, from a consumer’s perspective, the definition of high-end wine has expanded to include those products that offer authentic and unique brand experiences and attributes that meet the occasion. To shoppers, high-end wines differentiate through smooth taste, ability to pair with food, trendiness, sophistication, uniqueness, and superior qualities, as well as high-end package design.
High-end Wine Defined
The decisions that drive high-end wine purchases go well beyond price point. In fact, price is secondary to occasion and experiential factors. We once thought that wine-buying habits adhered to a linear price-tier model …
… But it’s now apparent that the “occasion” is a significant purchase factor (and “occasions” can refer to all types of moods and social behavior). Accordingly, high-end shoppers will in fact dip into lower or higher price tiers depending on the occasion.
High-end wine buyers are more likely to be male and white, though do over-index Hispanic and Asian, with a majority aged 30-54. Buyers of $25+ wine skew higher in education and affluence than $20–24.99 range. Compared to other wine buyers, high-end wine shoppers are more likely to be focused on brand loyalty, tech, status and impulse shopping. They seek specific varieties, but also like to experiment with new wines. When making a purchase decision, taste is primary but occasion, brand reputation, and vintage are the next top priorities. These shoppers are also highly engaged — with criteria such as tasting notes, reviews/awards, winemaker stories, labels, and staff recommendations playing a role in their selection.
The High-End Shopper & Consumer — Key Characteristics
Sources: 1. CBI Industry Outlook 2020-2022 2. Nielsen Scarborough, Constellation Brands Recontact Study (Age 21+ only), 2019 Release 1 3. Constellation Proprietary Luxury Pulse Survey, 2019
Provide a high-end experience for your shoppers and capitalize on premiumization trends with The Shopper-First Shelf:
Ensure your High-End offering has optimal assortment and adequate space allocation to meet shopper demand
Within varietal sections, leverage a price flow as shoppers anticipate higher end products to be shelved at the top
Deploy high impact and value-add merchandising tactics (e.g. signing varietal sections, utilizing educational signage), while decluttering the aisle of tag overuse, promo signs and other distractions
Masstige
affordable
Fine
LUXE
Apothic, RMPS, SBA, KJVR
affordable shoppers
Private Label, Barefoot, Woodbridge, Sutter Home
LUXE shoppers
Kim Crawford, J Lohr, La Crema
Fine Wine Shoppers
Decoy, TPWC, Frei Brothers
sparkling/champagne
Blush/Rosé
White wine
REd wine
Mainstream
higher End
RETURN HOME
>70%
total dollar category through 2022.
3-6%
Growing dollars at a CAGR of
High end wine anticipated to drive
and outpacing the mainstream.
THE DIGITAL SHOPPER-FIRST SHELF
Navigate and optimize eCommerce for total beverage alcohol
THE BEVERAGE ALCOHOL OPPORTUNITY WITH eCOMMERCE
Online shopping is not new to today’s shopper; in fact, it’s become a go-to shopping method for all sorts of products, including groceries—especially in light of COVID-19 and the resulting spike in adoption. Beverage Alcohol is no exception. While the category may lag in eCommerce adoption compared to other categories, recent growth rates, shopper preferences and expectations paint an online opportunity that cannot be ignored. In 2020, 3-Tier eCommerce (3TE) alone for beverage alcohol has grown +300%. Since the COVID outbreak, penetration of online alcohol ordering has increased, especially with Hispanics. Click here to learn more about the ecommerce opportunity with Hispanic shoppers.
THE SHOPPER’S PERSPECTIVE
Today’s shoppers digitally-engage with other categories such as clothing and electronics and expect the same for beverage alcohol. They don’t see beverage alcohol as different and have similar expectations to discover and inform their purchases. Shoppers will continue to increase their expectations for a seamless, convenient and personalized online shopping experience—enabled by emerging technologies and quicker delivery speeds.
Sources: 1. Rabobank and Constellation Brands estimates 2. Constellation Brands Digital Path to Purchase Study as mentioned in Rabobank’s The 2020 Alcohol eCommerce Playbook 3. Invesp, "How Digital Influences In-store Shopping Behavior - Statistics and Trends" (August 2020) 4. Constellation Brands Retailer Search Term Research, Jan 2020 L12M
3-Tier eCommerce operates within the existing 3-Tier system as tied house rules still apply to eCommerce. Alcohol must route from manufacturer, to distributor, to a licensed retail partner who may sell online, in-store, or both.
WHAT IS 3-TIER ECOMMERCE (3TE)?
The value of an online basket is
WHY ARE ONLINE BEV ALC SHOPPERS VALUABLE TO RETAILERS?
Online alcohol shoppers spent
When shoppers start to buy alcohol online, their overall (omnichannel) spend increases by nearly
+135%
higher when alcohol is purchased.
+83%
more dollars online than in-store.
+10%
IMPACT OF eCOMMERCE EXTENDS INTO THE STORE
The value of eCommerce goes beyond online sales, as a retailer’s digital presence can drive in-store sales as well. In fact, 46% of grocery sales are estimated to be digitally influenced, meaning shoppers’ in-store purchases are shaped by the retailer’s website and social media accounts—whether they’re preparing a shopping list or already in-store researching product information on their phone. It is imperative to recognize that the role and value of eCommerce is twofold, as it has the power to both drive purchases online and influence in-store sales.
TAKE ACTION TODAY
Ensure you are meeting shoppers where they are—whether they are purchasing beverage alcohol online or researching online to inform an in-store purchase
Welcome to THE DIGITAL SHOPPER-FIRST SHELF
Today’s shopper will only become more demanding in their online shopping experiences. The following pages provide a sampling of key insights and actions to help our valued partners navigate and capitalize on the online beverage alcohol opportunity.
STEP 1:
OPTION A Owned eCommerce
OPTION B 3rd Party Marketplace Partnership
How it works
Platforms that specialize in beverage alcohol eCommerce:
“Digitize” your current store experience Continue to own alcohol license, inventory, pricing, and fulfillment/delivery responsibility
Partner with a 3rd party that provides a digital storefront on their marketplace 3rd party partner largely focuses on bringing traffic to the marketplace and may offer fulfillment/order delivery capabilities Retailer continues to own alcohol license, inventory and pricing
NOTE: Option A & B are not mutually exclusive; you can do both simultaneously
Option A
Building and owning your eCommerce experience allows full control of the end-to-end shopper experience and the profits. However, it also requires investment to overcome hurdles such as building and managing a website, enhancing website navigation and optimizing search engine results.
OWNED eCOMMERCE
WIN WITH AN EASY & ENJOYABLE SHOPPER-LED EXPERIENCE
BUILD AN EXPERIENCE FOR MOBILE
74% of online beverage alcohol purchases happen on a mobile device; make sure to optimize for mobile viewing.
Organize your products (“site taxonomy”) as you would in your stores to make it easy for shoppers to find products. Optimize search results by adjusting for synonyms (hard seltzer = spiked seltzer), spelling errors (shardonay, wiskee) and search intent (e.g. showing “beer” products before “root beer” products).
DESIGN FOR HOW SHOPPERS BROWSE AND SEARCH ONLINE
Quickly orient shoppers by making anchor brands visibly prominentand first in product listings (similar to strategies used in store aisles). For example, Corona and Bud Light are the most-searched brands for the beer category, and therefore recommended to be at the top of Beer product listings.
DEFAULT PRODUCT RESULTS SORTING BY TOP SELLERS OR HIGHEST BRAND AWARENESS
Empower shoppers to easily “add to cart” to reduce purchase friction and minimize cart abandonment.
ENSURE “ADD TO CART” OPTION IS ALWAYS AVAILABLE
On the Product Details Pages (PDP), provide accurate and relevant product information to aid shoppers in their purchasing decision. This includes product/label images, descriptions, ratings & reviews, pricing, inventory, and if the product is available cold.
PROVIDE ACCURATE AND RELEVANT PRODUCT INFORMATION
The online check-out experience should be quick and intuitive. Avoid cumbersome checkout pages, accept multiple forms of payment, and offer various fulfillment/ delivery options.
MAKE THE CHECK-OUT EXPERIENCE FRUSTRATION-FREE
the perfect PRODUCT DETAILS PAGE
TIP: Your supplier and wholesaler partners should be able to provide their product information to you so you don’t have to generate this yourself!
1. Hero Product Image 2. Basic Product Content 3. Accurate Product Name 4. Price
5. Image Carousel 6. Ratings (and Reviews) 7. Product Location & Inventory Levels
Option B
Partnering with a 3rd Party Marketplace provides a quick and easy way to tap into eCommerce. After identifying the right partner(s) for you, simply upload your assortment, pricing, and inventory levels. However, the ease of use and built-in traffic of these platforms means less control of the end-to-end shopper experience.
3rd Party MARKETPLACE PARTNERSHIP
WIN WITH ASSORTMENT, PRICING, AND QUALITY OF SERVICE
Ensure your entire assortment is represented online—including top-sellers and harder-to-find items. Be mindful of maintaining inventory levels to avoid out-of-stocks.
CATALOG ALL AVAILABLE PRODUCTS
Use popular products to hook-in traffic and encourage basket building with offer bundles. Remember that on digital platforms, shoppers are easily able to compare prices across retailers.
PRICE ITEMS TO DRIVE TRAFFIC
Balance the benefit of winning the sale with profitability considerations such as shipping area and free shipping thresholds.
ESTABLISH FULFILLMENT COSTS
Accuracy and timeliness matter. Marketplaces— and shoppers—reward retailers that offer reliable service. For the shopper, paying an additional $1 in the retail price for dependable service may be worth it.
RELIABLY FULFILL ORDERS
STEP 2:
The most significant barrier to online shopping for beverage alcohol is lack of awareness. 65% of shoppers who purchased groceries (but not alcohol) online said they were NOT aware purchasing alcohol was an option. Regardless of your eCommerce approach, ensure shoppers are aware of the opportunity to buy alcohol online from your store.
TELL SHOPPERS ABOUT THEIR BEVERAGE ALCOHOL OPTIONS ONLINE
Include beverage alcohol online shopping messaging with instore marketing, ads, digital marketing and social media. Market to existing shoppers who may already shop online for other categories, as well as those who are not. Reach new customers and differentiate from competition with your online offering.
MARKET BEVERAGE ALCOHOL ONLINE CAPABILITES AND SERVICES
For retailers who sell more than beverage alcohol products, ensure “beer, wine, & spirits” is presented as a stand alone category in the website layout. Shoppers should be able to easily identify that beverage alcohol is available for purchase online. Promote beverage alcohol categories in site banner ads to generate awareness and adoption.
INCREASE VISIBILITY OF THE BEVERAGE ALCOHOL CATEGORY
STEP 3:
The digital world and shopper behaviors are constantly evolving. As a result, commitment to continuous improvement is key to any successful eCommerce strategy. Ensure you are delivering on shopper satisfaction and maximizing sales opportunities by regularly engaging shoppers for feedback and ratings, reviewing site or app analytics, and implementing necessary enhancements. Understanding shopper behavior will give you a competitive edge in both online and offline marketplaces.
Interested in learning more about eCommerce and how to optimize your platform for growth?
DETERMINE YOUR BEVERAGE ALCOHOL eCOMMERCE STRATEGY
Drive SHOPPER AWARENESS
LEarn AND ITERATE
Reach out to your local Constellation Brands contact for more information on how to take action and get started today.
The Impact of eCommerce on the Store
Step 1: Determine Your eCommerce Strategy
Step 2: Drive Shopper Awareness
Step 3: Learn and Iterate
Owned eCommerce
3rd Party Marketplace Partnership
Overview
Open a digital storefront on a 3rd party marketplace
Build your own eCommerce website experience
jump to section
back to top
Examples of potential 3rd party providers:
Since the COVID outbreak, penetration of online alcohol ordering by Hispanic Shoppers has increased by an average of ~16% — outpacing General Market
Hispanic eCom Alcohol Shoppers Are…
What do shoppers like about eCom Alcohol ordering? Efficiency & safety are top of mind…
“The ease of having everything ready when you arrive at the store and not being in it for so long.” — Unacculturated Hispanic
“Not having to go into the crowd that may or may not have covid 19” — Bicultural Hispanic
“I like that I can choose the brands that I want delivered more easily than just going to the store and searching for them.” — Bicultural Hispanic
More likely to say that the cost of alcohol delivery is always worth it. Significantly more likely to say they didn’t used to order alcohol online, but now they love it. More likely to say they’ll continue to order alcohol online when COVID passes. More likely to choose pickup or delivery prompted by COVID-related factors
CLOSE
Hispanic Shoppers are loyal to their regular stores when ordering online, and prioritize quick service and assortment. They have very high satisfaction and future intent to order.
Like most shoppers, Hispanics tend to order pickup or delivery from the same stores they typically shop at, and also order from well-established apps like Instacart, Postmates, and Amazon. Hispanics, particularly biculturals, place high importance on stores or apps that have a large selection of brands and quick pickup or delivery process. Almost 1/3 of Hispanics state a Spanish language option is a ‘must have’ for an app or website, and lack of Spanish language option is the main attribute they’re dissatisfied with across the board. 45% of Bicultural Hispanics say they found ordering alcohol online to be challenging as a Spanish speaker, while only 35% of unacculturated Hispanics faced challenges. Unacculturated Hispanics are significantly more likely than other groups to order beer for delivery or pickup (76%). Bicultural Hispanics over-index for every other alcohol category, and particularly with spirits. Hispanic shoppers are just as likely as General Market to stick to their favorite brands when ordering alcohol online, suggesting they are not trading down to offset additional delivery or pick-up cost.
TAKE ACTION
Prioritize assortment of top beer brands online, particularly those that over-index with unacculturated and bicultural Hispanics to ensure Hispanic shoppers can find their favorite brands when shopping online. Due to higher likelihood of Hispanic shoppers using smart phones and tablets to shop, ensure that product detail pages and advertisements, especially those that target Hispanic shoppers, are optimized for mobile. Use promotions and service guarantees to attract, maintain, and re-engage Hispanic customers. Similar to General Market, Hispanic shoppers’ satisfaction with the online ordering experience increases with promotions, no minimum order cost, and faster delivery or pickup If your target customer base is largely Hispanic, explore adding Spanish language capabilities on your app and/or website. Note: language does not seem to be a dealbreaker in many cases, as shoppers are still figuring out how to place their orders and, overall, rating the experience positively. Reassure them that they can still trust their favorite brands/retailers. Hispanic shoppers have been a very vulnerable population since the advent of the COVID pandemic, so it’s important that manufacturers and retailers communicate what they are doing to minimize risks or exposure for their customers.
Source: Collage Group Latinum Custom Study June 2020
2/3
3/3
1/3
HISPANIC SHOPPERS
The beer industry is seeing accelerated trends and unprecedented shifts in consumer demand for specific segments and brands, including:
TODAY’S BEER CATEGORY
The growth of Chelada and the growing presence of non-alcoholic beer require thought leadership in merchandising execution and the evolution of leading brand status.
Retailers can drive sales to represent future growth trends by optimizing assortment, space, and flow, the three pillars of Shopper-First Shelf.
Our Shopper-First Shelf strategy can help retailers respond to change and grow the category by optimizing shelf assortment, space, and flow based on category evolution and new consumer shopping preferences.
ASSORTMENT As new segments and trends evolve within the category, utilize incrementality of attributes to make more effective and productive choices on the shelf to avoid SKU proliferation.
WHAT’S NEW?
SPACE Continue to lean into growing segments and brands. The beer category is seeing accelerated trends and unprecedented shifts in consumer demand for specific segments and brands. Retailers and Distributors need to understand the importance of right-sizing space and assortment for the segments and brands that drive sales and represent current growth trends.
FLOW Emerging sub-segments like Cheladas, non-alcoholic beer, and RTDs require thought leadership on merchandising execution.
WHY SHOULD YOU BELIEVE IN SHOPPER-FIRST SHELF?
Focused strategy with proven results In an increasingly complex industry, The Shopper-First Shelf distills down what really matters to todays shopper and the key levers of category growth Partners who have implemented Shopper-First see an average category lift of +4 to +6 points.
A consumer-centric and category-elevating approach to the shelf The Shopper-First Shelf is grounded in consumer obsession and backed by years of robust consumer and shopper research, including in-store shop-alongs, virtual simulations, focus groups, and more. Our goal is to meet ' today’s consumers’ needs and benefit the entire category, not just Constellation Brands.
Actionable insights & objective tools to guide implementation A simplified, actionable strategy centered around assortment, space, and flow.
HOW TO IMPLEMENT THE SHOPPER-FIRST SHELF
Set the shelf how shoppers think about the category to simplify their deselection process.
Shopper-First Actions
Benefit
Increased conversions, trade-ups, and additional purchases when the shelf is easier and faster to shop
Allocate space based on future opportunities, not past trends
Increased sales as a result of trade-up and reduced out-of-stock
Ensure adequate days of supply on key items. Prioritize growing High-End segments with a greater percentage of space than the percentage of sales.
Flow
Optimize assortment to provide the right variety to meet consumer needs while freeing up space to prevent out-of-stocks.
Increased sales from shopper trade-ups and easier shelf navigation More space for more productive SKUs — reducing out-of-stock risk
Prioritize the placement of items that consumers are looking for. Remove unpro-ductive and low incrementality SKUs that are taking up valuable shelf space.
Optimization Strategy
Source: CBI-InContext Custom Virtual Study, Spring 2023
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Shopper Insights Category Evolution Assortment Space Flow
Shopper First Shelf continuously monitors the evolution of the beer category and shifting consumer preferences. The award-winning Shopper-First Shelf is successful because it is consumer-centric, category-first, and data-driven. It has gained traction not only through its objective approach but also through its proven results.
CATEGORY EVOLUTION IS SHAPING THE SHELF
Sources: CBI-InContext Custom Virtual Study, Spring 2023 CBI Industry Outlook 2023 Circana Scan Data, CY2023 Circana Consumer Decision Tree, Summer 2023 Watch Me Think Qual AAB Shopper, March 2020
Alternative Adult Beverage segment maturation, leading to newly defined and expanded subsegments.
The Shopper-First Shelf strategy can help the industry respond to change and grow the category by optimizing assortment, space, and flow based on how today’s consumers shop for beer.
In recent years, the beer category and the broader beverage alcohol industry have seen changes, including:
Accelerated trends and unprecedented shifts in consumer demand for specific segments and brands, specifically in the High-End.
New emerging segments like Cheladas and Non-Alcoholic beer.
Focused strategy with proven results.
A consumer-centric and category-elevating approach to the shelf.
Actionable insights & objective tools to guide implementation.
Recommended Action
Category Evolution
Increased conversions, trade-ups, and additional purchases when the shelf is easier and faster to shop.
Allocating a greater percentage of space than current percentage of sales can result in higher in-stocks for high-growth items.
Increased sales as a result of trade-up and reduced out-of-stock.
Ensure adequate days of supply on critical items.
Increased sales from shopper trade-ups and easier shelf navigation. More space for more productive SKUs — reducing out-of-stock risk.
Consider stocking shelves with items that are most incremental and least substitutable.
Shifting consumer brand preferences and emerging sub-segments like Cheladas, Non-Alcoholic beer, and Alternative Adult Beverage expansion and diversification requires thought leadership on merchandising execution.
The beer category is seeing accelerated trends and unprecedented shifts in consumer demand for specific segments and brands. The High-End has driven 100% of beer category growth over the last nine years and is expected to grow by +5-8% over the next three years. Right-size space for the segments and brands that drive sales and represent future growth.
As new segments and trends evolve within the category, utilize the incrementality of those new and evolved attributes to make more effective and productive choices on the shelf to avoid SKU proliferation.
Prioritize the placement of items that consumers are looking for.
Allocate space based on future opportunities, not past trends.
ALIGN THE SHELF FLOW WITH SHOPPER EXPECTATIONS
Ensure Single-Serves lead cooler flow as they fulfill a separate shopping occasion.
Improve shopability by starting multi-pack high-End flow with Imports.
High-End brands should lead, followed by Mainstream and Value brands to round out the traditional beer.
The Alternative Adult Beverage category has expanded and diversified, leading to newly defined sub-segments and diversification of attributes that drive loyalty. Shelve all AABs together at either end of the flow, group by sub-segment.
Note: Optimal Shopper-First Shelf flow may vary based on retailer strategies, store layout, and legal considerations. These recommendations should be used as guidelines and customized as needed.
SMALL FORMAT FLOW
Small-format shoppers browse fewer items and shop faster, making it essential to optimize navigation, layout, and assortment to meet expectations for every trip and maximize basket size. Maintaining an intuitive shelf flow and visual cues (e.g., brand blocking and signage) orients shoppers faster, increasing conversion and the number of items purchased.
Beer Singles
AAB Singles
AAB Multi-Packs
Import + Craft
Domestic Super Premium
Domestic Mainstream
Value
Small Format Recommendations: Interactive Planogram
Single-SERVE
High-end
Low-end
1. Lead with Single-Serves, which are high-traffic and high-profit. Single-Serve occasions rarely overlap with multi-packs, so creating a single-serve destination where Beer and Alternative Adult Beverage singles are next to each other on the shelf but remain separate enables easier shopping and maximizes category sales.
2. Place the most incremental brands at eye level and near the door handle to maximize visibility. Brands that move from hinge to handle position increased sales by +8%.
4. Use category and segment signage above the cooler doors to orient and convert shoppers rapidly.
RETURN TO CATEGORY EVOLUTION
Sources: CBI-InContext Custom Virtual Study, Spring 2023 CBI-Incontext Custom Single Serves Virtual Study, Dec 2020
The Industry misses out on potential sales when the shelf lacks an intuitive flow. Using a consumer-centric approach to flow increases conversions and trade-ups while prompting additional purchases. Beer customers will be more satisfied with their shopping experience — building bigger baskets and making repeat trips.
ALTERNATIVE ADULT BEVERAGES
The Alternative Adult Beverage category has expanded and diversified, leading to newly defined sub-segments and diversification of attributes that drive loyalty. Shelve all Alternative Adult Beverages together at either end of the flow and group by sub-segment (Hard Seltzers, Ciders, FMBs, Wine-based RTDs, Spirit-based RTDs and Kombuchas.
VALUE LOW-END
Place Value brands after Mainstream and include a designated Non-Alcoholic section in the Value section.
MAINSTREAM LOW-END
Place Mainstream low-end brands adjacent to Domestic Super Premiums. This location encourages interaction with Domestic Super Premiums, driving impulse buys and trade-ups.
DOMESTIC SUPER PREMIUM (DSP)
Follow Craft with Domestic Super Premiums, where they bridge the high-end and low-end sections of the shelf.
CRAFT
Lead with local brands, followed by regional (in a West Coast -> East Coast flow, similar to a U.S. map). End with national (mainstream) Craft, which consumers view most similar to domestic brands that follow in the flow.
IMPORT
Place Imports in the first multi-pack position with all other Imports first and Mexican Imports second, given the growth and incrementality of Imports.
SINGLE-SERVE
Single-serve
craft
mainstream
Domestic Super Premium (DSP)
VALUE
Alternative Adult Beverage
Press sections to get more information
LARGE FORMAT
Leverage lead brands to start the flow of each segment.
6
Create vertical brand blocks for high-volume brands.
3. Organize multi-packs by segment, from high-end to low-end, with the most recognizable brands within each significant segment in vertical brand blocks.
5. Lead the Single-Serve section with Beer singles, followed by Alternative Adult Beverage singles. While Beer and Alternative Adult Beverage singles deliver on similar occasions, they tend to have different consumers.
6. Organize singles by price point and segment, which presents choices that align with shoppers’ consideration sets and increase ease of shopping. It also sets the stage for promotional tactics such as ‘two for’ pricing, which increases units/buyers and encourages incremental spending.
SMALL FORMAT
Large Format Flow Recommendation: Interactive Planogram
Beer Caves give retailers incremental space to maximize category growth. First, make it easy to see. Big glass doors and clear signage let customers spot their favorite Beer brands before they step inside. This is important since most say it’s too cold to linger. Keep floors clear and shelves visible to make shopping quick and convenient. Second, make it easy to find. Organize shelves with the Shopper First flow: Multi-Pack Imports, Craft, Domestic Super-Premium, Mainstream, Value, Non-Alcoholic, and Alternative Adult Beverages in order from left to right, so shoppers see what they want, fast.
BEER CAVE FLOW
1. Ensure large clear doors and windows are utilized to allow for shoppers to see inside and visually shop the items on the Beer Cave shelves.
2. Apply clear and simple signage above the Beer Cave entrance to signal the space is a Beer Cave.
4. Apply multi-pack Shopper-First Shelf flow within the Beer Cave: Imports, Craft, Domestic Super-Premium, Mainstream, Value, Non-Alcoholic, and Alternative Adult Beverages in order from left to right, so shoppers see what they want, fast.
3. Place Beer segment signage above each Beer segment to expedite visual navigation.
BEER CAVE FLOW RECOMMENDATIONS: FROM LEFT TO RIGHT
Multi-Pack Imports > Craft > Domestic Super-Premium > Mainstream > Value > Non-Alcoholic > Alternative Adult Beverages
Category sales can be maximized by ensuring top-selling brands are available for shoppers during peak periods.
SPACE
MINIMIZING OOS RISK
When allocating space, consider if days-of-supply are high enough to prevent out-of-stocks. Give special consideration to key selling days (Friday to Sunday) when >55% of weekly beer sales occur.
4%
9%
11%
18%
PERCENT OF WEEKLY BEER SALES BY DAY
>55% of weekly sales
Monday
Wednesday
Tuesday
Thursday
Friday
Saturday
Sunday
RECOMMENDATION: SECURE CRITICAL COLD SPACE
Cold is the #1 purchase influencer in beer, with 94% of beer purchased cold, which is especially important in the Convenience, Drug and Liquor channels that typically have smaller store footprints and shelf sets.
Sources: Circana Total US MULO+C, CY15-CY23 CBI Industry Outlook through 2023 Envirosell TBA Path to Purchase, 2018
Allocate the right amount of space based on future growth opportunities to ensure sufficient days of supply on critical items to minimize out-of-stock risk. Recommendation is to have percentage of space greater than percent sales on high-growth, highly incremental segments. All growth coming from High-End brands: Over the last nine years, the High-End contributed 100% to beer category growth (led by Alternative Adult Beverages & Imports) and currently represents over 60% of category dollar sales. High-End dollars are expected to grow +5-8% over the next three years, propelled by Alternative Adult Beverages and Imports.
Capitalize on high-growth segments by giving them a greater percentage of space (over-indexing space-to-sales).
Maintain sufficient days of supply on critical items to minimize out-of-stock risks using Shopper-First Shelf’s space-to-opportunity method.
ASSORTMENT
INCREMENTALITY: GETTING THE MOST VALUABLE SKUs ON THE SELF
Incrementality is the unique contribution or value an item provides, and refers to how substitutable an item is. These brands and SKUs need optimal space and holding power to meet shopper demands.
Uniquely valuable to the consumer with low substitutability. A high percentage of these item's sales contribute to the category with minimal cannibalization. Removal of these SKUs equals lost sales.
Redundant attributes with other items and with high substitutability. Dollars come from other SKUs, cannibalizing sales. Removal of these SKUs causes shoppers to switch their purchase to another SKU.
Sources: Circana Total US MULO+C, CY15-CY23 CBBD IRI Assortment Study
Start here when de-listing. SKUs are redundant, dragging on category performance and taking up valuable shelf space.
Strategically rationalize redundant items and focus first on de-listing underperforming segments and brands. Removing even high-volume, redundant SKUs improves shopability and boosts category growth.
Maintain products, seasonal items, or niche brands that don’t yet have traction or scale. Be disciplined on space allocation; be thoughtful on distribution, space and SKU count levels on these items.
Maintain and increase distribution of these SKUs. Top-selling brands and SKUs need optimal space and holding power to meet shoppers' demands.
SEE BELOW FOR CHART DETAILS
Add & Grow
Maintain
Validate
REMOVE
MORE SKUs DOES NOT ALWAYS EQUAL MORE SALES
Providing the optimal variety on the shelf — rather than the most variety — will allow the industry to meet consumers’ needs while freeing up space to avoid out-of-stocks. Increased sales result from shoppers finding the shelves easier to navigate and opting for trade-ups.
Research across multiple markets shows that some stores can still reduce up to 20% of SKUs from the shelf without negatively impacting sales.
Items that fall into the green “Add & Grow” & “Maintain” zones.
Remove complexity taking up valuable shelf space.
Start with items in the red “Remove” zone and move into the yellow “Validate” zone as needed.
Prioritize highly incremental, in-demand items.
Recommendations
Remove unproductive SKUs taking up valuable shelf space.
