By Shane T Williams in New York City
With consumer confidence currently at a seven-year low, liquor retailers must implement data scanning in their stores to get a clearer picture on what products are selling, says Michael Walton, executive director of Nielsen Pacific.
Walton told delegates at the 2012 LMG Conference in New York City that one in five Australian consumers currently say they have 'no spare cash' after paying bills.
He said the outlook for buying the things 'we need and want', personal finances and job prospects are the three main indicators of consumer confidence and these have all been on the decline since 2010.
In spite of this, Walton said it was encouraging that the market had grown by $1.4 billion over the past five years, with a 30 per cent share going to spirits, 26 per cent to wine and a healthy 44 per cent going to beer. [continues below]
Michael Walton in New York City
He said the gains made by spirits post the RTD excise change had not been lost and the RTD numbers hide a $235 million growth in cider sales.
Growth in beer was led by drier styles, then low-carb, wine by Sauvignon Blanc and private label, premium spirits and vodka led the spirits category and cider was a clear leader in Nielsen's definition of the RTD category.
Walton reiterated that new product development is imperative for growth, with cider and beer leading the way. He said the top two NPD brands by value share, state by state are:
Queensland: 1) XXXX Summer 2) Bundaberg Red
New South Wales: 1) Bundaberg Red 2) XXXX Summer
Victoria: 1) Rekorderlig 2) Wild Turkey premium blend
South Australia: 1) Coopers Clear 2) 5 Seeds
Western Australia: 1) Hahn Super Dry 3.5 2) Rekorderlig
Lastly, Walton stressed that independent retailers must set their stores up for data scanning, without which they could be missing key selling opportunities.
He said data scanning enables retailers to know exactly what's selling and what's not.