With a brand refresh, store innovations, and healthy sales, 2023 was a positive year for Sydney-based Drinks HQ. However, as Owner Paul Heilman told National Liquor News, the year was not without its challenges.
“Responding to the common sales inquiry of ‘How’s business?’ became a nuanced task, as each store and day of the week seemed to tell a different story. The impact of the ongoing recovery from the Covid era, especially in terms of talent acquisition, remains a persistent challenge,” he said.
Additionally, Heilman learned lessons that will influence the business in 2024, such as the differing trends impacting the various stores.
“The diversity in consumer behaviour and market dynamics became more evident than ever. Looking forward, we’ve learned valuable lessons and have strategically positioned ourselves for success in 2024,” Heilman said.
A major milestone in 2023 was that Drinks HQ underwent a rebrand, which was driven by the changing landscape of the drinks industry.
“Recognising the evolving landscape and the need for a fresh approach, especially with the changing dynamics of customer communication and acquisition, became imperative. The realisation dawned that our promotional efforts needed to be more targeted and aligned with our unique offerings,” Heilman said.
The new name and logo better reflect the unique approach that Drinks HQ has on liquor retail.
“We envisioned being more than just a place to buy alcohol; we aimed to provide exceptional service, share knowledge, and create memorable experiences. Our commitment is evident through daily tastings, wine dispensers, and innovative product offerings shared across our stores,” Heilman said.
An immediate focus for Heilman is updating the Cammeray and Newtown stores to the Drinks HQ branding.
Looking to 2024, Heilman is aware of the opportunities and challenges offered by the increasing number of new products entering the market. This will require that retailers stay informed about emerging trends and educate staff on new products and categories.
“Retailers have to be mindful of what’s around the corner. There’s a new product in most major brands every year. New imported products, totally new brands, new categories even,” he said.
Heilman is confident that Drinks HQ can continue to perform in 2024, despite challenges facing the industry.
“While navigating uncertainties, we remain optimistic about the opportunities ahead and are committed to leveraging our strengths to achieve even greater milestones in the coming year,” he said.
Electronic shelf labels
The introduction of electronic shelf labels (ESLs) has made a positive impact on Drinks HQ, especially due to the business’s effective implementation.
“While ESLs are not unique, our execution sets us apart,” Heilman said.
ESLs provide multiple benefits to Drinks HQ, including reduced paper wastage, labour efficiency, and increased accuracy of pricing displays.
“ESLs contribute to compliance, displaying promotions accurately, eliminating the risk of misplaced or omitted promotional materials,” Heilman said.
Heilman also utilises ESLs as an additional interaction point with customers.
“Whether it’s a tasting note, a recipe, or a QR code linking to our website, these features create a unique shelf-side influence, influencing customer decisions and interactions,” he said.
This article originally appeared in the 2024 Leaders Forum issue of National Liquor News.