News • 18.05.2020

Pandemic fuels wine sales at grocery & convenience stores

Latest shopping data shared by Catalina and Koupon

A wine rack with wine bottles
Source: Bildagentur PantherMedia / PinkBadger

Having closely tracked the impact of COVID-19 on buying behavior in grocery and drug stores since mid-February, shopper intelligence leader Catalina has compared sales data with its partner Koupon, the leading promotion solution provider for small format retail, to gain a more holistic understanding of the pandemic's impact on cross-channel consumer purchases.

While wine, beer and spirits have each experienced a boost in sales during the pandemic across grocery, drug and c-store channels, the wine category has seen particularly strong sales growth.

Wine category sees strong gains across the board

Catalina's shopping data reveals a significant increase in wine sales for the 10-week period beginning Feb. 23 through May 2, 2020 across grocery and drug channels, when sheltering in place became more common versus the same period a year ago:

  • Wine total dollar sales increased by 38 percent, with unit sales up by 32 percent
  • The number of wine buyers increased by 16 percent
  • Dollars spent per wine buyer were up 15 percent -- from $62.74 to $71.94 (for the total 10-week period) 
  • Units purchased per wine buyer were up 10 percent -- from 6.3 to 6.9 (for the total 10-week period)
  • 46 percent  of wine buyers made a repeat purchase (2+ trips during the 10-week period) versus 36 percent a year ago 
  • In 2020, 45 percent of trips included purchases of two or more bottles of wine, compared to 36 percent of trips in 2019
  • 3+ bottles were purchased this year on 19 percent of trips, compared to 14 percent of trips last year 
  • 6+ bottles were purchased this year on 7.3 percent of trips, compared to 5.8 percent of trips last year

Many new buyers have entered the category as well, and they are making repeat purchases.

According to Koupon, as virtual happy hours have become more popular, there has been a clear shift toward C-store visits later in the day, and a corresponding increase in the sales of adult beverages. In the C-store channel, for the same 10-week period vs. year ago:

  • Wine total dollar sales were up 9 percent, beer was up 6 percent, and spirits up 24 percent
  • 32 percent of wine buyers were new to the category within c-store, and 17 percent of these first-time buyers have made a repeat purchase 
  • For consumers buying both before and during the crisis, wine basket size was up 4 percent, beer up 11 percent and spirits up 6 percent

Wine industry perspectives

"During times of crisis, new behaviors and habits emerge for some consumers while others return to the familiar," said Stephanie Gallo, Chief Marketing Officer, E. & J. Gallo. "The rise of virtual observances - happy hours, baby showers, birthdays and even weddings - means consumers are using technology in new ways while enjoying wine and spirits as a part of their connections. Several of our wineries are now engaging consumers through weekly virtual happy hours with winemakers and cooking demonstrations with chefs."

Added Jeff Dubiel, Chief Marketing Officer of The Wine Group, "During the initial panic-buy period, the wine category saw the same consumer pantry-loading behaviors as other categories like paper towels and shelf-stable goods. As we have seen with previous crises, the increased purchase and consumption continued to hold following the initial wave of pantry-loading as consumers adapted to sheltering in place. Americans are resilient, and we have seen and heard wine enthusiasts finding inventive news ways, such as virtual happy hours and wine tastings - to enjoy their favorite beverages with friends and family."

Adapting for a new normal

For the week ending May 3, convenience store sales have returned to year-over-year growth levels across the majority of in-store categories. As more states begin to reopen and consumers adjust to a new normal, consumer goods producers, including the wine category, will continue to adapt.

Source: Catalina

related articles:

popular articles:

Thumbnail-Photo: 4 tips on how to handle customer complaints
13.08.2020   #consulting #customer satisfaction

4 tips on how to handle customer complaints

How you can effectively respond to negative reviews and use them to be a benefit to your company

Most retailers don’t like customer complaints. Plus, they also mean extra work. Yet ignoring complaints is not a great long-term strategy because any bad customer experience can haunt your brand if it becomes public. That’s why retailers ...

Thumbnail-Photo: Take a deep breath ...and get back to work!
26.05.2020   #brick and mortar retail #personnel management

Take a deep breath ...and get back to work!

Retail employee break rooms and rest breaks in Germany

Working hard is important, but so is taking proper rest breaks! Whether we spend this time alone or with colleagues, by getting some sunlight and fresh air or by relaxing in designated rooms – we all need to take a break sometimes to relax and ...

Thumbnail-Photo: The importance of effective complaint management...
12.08.2020   #customer satisfaction #customer relationship management

The importance of effective complaint management

A strategic and cross-channel approach to handling negative customer experiences

Customers are more demanding than ever, while brand loyalty is declining. Even a couple of negative experiences can alienate consumers and erode loyalty. Shoppers increasingly share bad reviews and complaints on public communication channels for ...

Thumbnail-Photo: Job maker 4.0: e-commerce
27.05.2020   #online trading #e-commerce

Job maker 4.0: e-commerce

Retail training and continuing education programs are booming

Digitization in retail and e-commerce growth present fresh challenges for retail employees and the retail world. That’s why interest in the new "E-Commerce Merchant" dual vocational training course offered by Germany’s HDE ...

Thumbnail-Photo: Sustainability is surviving COVID-19
27.07.2020   #sustainability #brand management

Sustainability is surviving COVID-19

Trends and consumer demographics for sustainable products and brands

The NYU Stern Center for Sustainable Business and IRI® published the results of new research examining consumer purchases of sustainability-marketed consumer packaged goods in the US and taking a closer look at the top 10 states in terms of per ...

Thumbnail-Photo: Which businesses should be open?
17.06.2020   #brick and mortar retail #coronavirus

Which businesses should be open?

MIT study looks at tradeoffs between economic value and public health, across different types of retail

Banks and bookstores. Gyms and juice bars. Dental offices and department stores. The Covid-19 crisis has shuttered some kinds of businesses, while others have stayed open. But which places represent the best and worst tradeoffs, in terms of the ...

Thumbnail-Photo: Coronavirus: most Americans now using face masks...
15.05.2020   #brick and mortar retail #coronavirus

Coronavirus: most Americans now using face masks

New nationwide survey from Fast

A new nationwide survey from Fast shows that the vast majority of Americans – 88 percent – are now using face masks, but 19% want to personally receive a COVID-19 vaccine before they feel safe shopping in stores again, while another 29 ...

Thumbnail-Photo: Walmart brings the big screen to its parking lots...
14.08.2020   #POS marketing #marketing

Walmart brings the big screen to its parking lots

Retailer’s first-ever drive-in movie theater

Walmart is lifting the curtain on plans for the Walmart Drive-in, a drive-in movie theater experience, which is rolling into 160 Walmart stores across the country beginning this month, created in partnership with the Tribeca Film Festival.Available ...

Thumbnail-Photo: Smart clothing to drive fitness wearable revenue...
10.06.2020   #trend research #fashion

Smart clothing to drive fitness wearable revenue

New report forcasts a rise of 11 billion Dollar by 2025

A new report from Juniper Research forecasts that annual revenue of integrated fitness clothing will rise from approximately $1 billion in 2020 to $11 billion in 2025. This rapid growth, boosted by higher pricing, will see smart clothing become the ...

Thumbnail-Photo: Custom-tailored: new in-store safe shopping journey solution...
13.05.2020   #consulting #brick and mortar retail

Custom-tailored: new in-store safe shopping journey solution

Suitsupply reinvents retail experience including virtual pre-shopping

Suitsupply, the global men's tailoring brand built on radically personal customer experiences, launches new retail journey as stores reopen. The upside of being global, and the staggered timelines of the outbreaks around the world, is the ...

Supplier

POS TUNING Udo Voßhenrich GmbH & Co KG
POS TUNING Udo Voßhenrich GmbH & Co KG
Am Zubringer 8
32107 Bad Salzuflen