Despite economic uncertainty, consumer demand for quality and value is driving a trend towards premiumisation and treat occasions. Brands like Baileys are capitalising on this trend with popular licensed products, offering retailers opportunities to boost sales by promoting high-quality treats throughout the year.
The shift towards premiumisation and treat occasions is a trend that has been growing in recent months, driven by consumer demand for enhanced quality and value. A recent survey revealed that despite the uncertain economic climate, consumers are continuing to spend on affordable luxuries [Deloitte] showing a willingness to treat themselves to small, accessible items.
This is reflected in people’s eating and drinking habits, with data showing that while consumers are eating out less frequently, spending on eating out has increased by 5.9% on average over the last 12 months [Barclays]. People are now seeking moments of indulgence and investing in ‘little luxuries’ through their food and drink purchases, elevating the concept of treat occasions to new heights. This trend presents brands the opportunity to connect with their audiences on a new level.
In the off-trade, Kantar reported a 10% growth in the ice cream and desserts market last year [Kantar] as people continue to spend more on entertaining at home. Shoppers are also willing to spend more on treats, with nearly 40% (37%) of people agreeing it’s worth paying extra for quality drinks at home, with this increasing year on year (+5%) [Kantar]. This signals that there is high value in stocking brands that offer stand-out, unique and diverse product variations that surprise and delight consumers, making each treat moment memorable.
This demand for indulgence presents a huge opportunity for retailers to encourage consumers to try something new and trade up by offering a variety of high-quality treat products from trusted brands. While the confectionery aisle may be the obvious choice for retailers to focus on, it seems that other treat items are proving instrumental when it comes to capturing consumers’ attention.
That is where licensed products can play a key part in driving sales in store across categories, with well-loved household brands such as Baileys also having influence beyond the beer, wines & spirits (BWS) category.
The power of brands
Baileys is the number one loved spirits brand in GB [Kantar] and is synonymous with indulgent moments, becoming the perfect treating brand for adult consumers. Beyond the liquid itself, Baileys’ licensed products are hugely popular with adult consumers, with more than four million sold in the UK last year, equating to one product sold every eight seconds, and 24 million products sold globally [Euromonitor].
Most retailers stock the iconic Baileys Irish Cream (17% ABV) throughout the year, which enables them to tap into the treat occasion, with 76% of consumers stating that Baileys can be enjoyed all year round, while 78% of Baileys drinkers consider it to be a delicious adult treat [Kantar]. However, despite the popularity of top spirits brands, 80% of consumers don’t regularly visit the BWS aisle [Kantar], which can leave a huge gap in potential sales. Retailers can harness the reputation of these renowned brands to not only boost sales within the alcohol aisle but also across different categories, engaging with the majority of consumers in-store through licensed products.
Looking at Baileys alone, almost 1 in 10 households in GB buy Baileys licensed products, which equates to 2.5 million shoppers [Kantar], and over 20% of Baileys shoppers do not purchase the spirit itself, instead only purchasing the brand’s licensed products [Kantar] on offer, such as Baileys Original Truffles.
Data also shows that Baileys licensed products tend to attract a wider audience than the core Baileys shopper [Kantar]. Retailers are therefore able to cater to consumers with budgets of all sizes, ensuring that they all have the opportunity to purchase the same top-quality flavours at a variety of price points.
Licensed products can also lead to an increased purchase in spirits by providing a variety of touchpoints across the store, which reinforces awareness of key brands and makes customers more likely to visit the spirits aisle during their shop.
To see some of the Baileys licensed product collection, click on the gallery below.
Capitalise on gifting moments throughout the year
Calendar occasions such as Christmas and Easter are key sales drivers for the retail sector and are staple gifting moments for individuals to treat and celebrate with loved ones. While these are hugely important trading periods for retailers, demand for the treat occasion is present throughout the year, so there is scope to tap into this demand and capitalise on promoting gifting and treat occasions beyond these seasonal moments.
Retailers can make the most of the continued demand for high-quality brands with promotions and merchandising at different times during the year – for example, showcasing licensed products as gifting options alongside birthday cards and cakes to encourage sales outside of national celebratory periods.
What to stock this Christmas
With Christmas fast approaching, now is the ideal time to put this insight to the test and harness the power of the Baileys brand in-store. Products including Baileys Ice Pralines will provide the perfect treat for loved ones, either as gifts or served alongside festive desserts.
In order to maximise the opportunity, Diageo recommends merchandising aisles with seasonal display cases to showcase the variety of treat products on offer across categories, and offering promotions for licensed products alongside the iconic spirit brands, promoting gift packages to help drive awareness and boost sales.
Stocking licensed products in high footfall locations in-store and on-shelf at eye level with customers ensures maximum visibility. Similarly, placing these indulgent products next to complementary sub-categories – such as hot beverages, crisps and snacks – enhances customer consideration, which in turn encourages sales opportunities through increased basket spend.
For more information on how to make the most of your licensed product range and to stock up ahead of the Christmas season, visit Diageo One at gb.diageo-one.com.
