Pernod Ricard has predicted that this year’s Christmas will eclipse any forecasts for last year’s depite the current crisis of rising energy bills, inflation and increased costs of living.
With the World Cup fuelling an increase in at-home activity and Premium’s share of the spirits category remaining higher than pre-pandemic, the scene is set for wholesalers and retailers to perform well.
Chris Shead, off-trade channel director for Pernod Ricard UK, comments: “The long-term premiumisation trend is a resilient one with people drinking less but better and, as they do, engaging more with what they’re drinking, paying more attention to wine pairings and enjoying more cocktails.
“During tough economic times, people still choose to purchase little luxuries to treat themselves and wine and spirits is an area where people traditionally spend more to treat themselves or others. In the Off-Trade, we will see some trade-down, however, people will also trade up when staying in to make the occasion more special. For these reasons, we’re optimistic about this Christmas. We have the right portfolio of Premium Spirits for cocktails and gifting, as well as perfect range of Premium+ wine anyone would be happy to gift on Christmas day or take to a festive celebration.”
Pernod Ricard UK is advising wholesalers to educate their retailers to expect four key trends this Christmas:
– Growth in at-home group socialising
– Increased budget control, shopping lists and less spontaneous purchases
– Investment of time to make drinks special, using up owned ingredients
Wholeslalers should also advice Retailers about making the most of these by considering the following Top Tips:
– Invest in secondary promotional space to ensure Premium Wine and Spirits, with better margins, are not overtaken by beer during the World Cup – it’s important to inspire incremental trade up and gifting purchases
– Ensure best-in-class online presence to encourage repeat visits to store
– Call out cost-per-serve in recipes either displayed in-store or on social media