Rethinking Retail provides insights and practical suggestions you can implement to get more foot traffic and improve sales. And check out Rethinking Retail podcasts. Lasting no more than 5 minutes, you’ll get straight talk and great tips from industry pros who want you to sell more beer.
Lagu-Numerology Makes Ordering Beer As Easy As 1-2-3
Lagunitas is “doggone” serious about making great beer, but fun is definitely in this craft brewery’s DNA. While lots of companies do drug testing, Lagunitas prefers that its employees “test” pot.
Lagunitas wants you to have some serious fun too. That’s where their Lagu-Numerology comes in. Ben Martin, the Brewery’s I-PA Conduit of Libations Management and Ambassador of Good-Times, explains, “Time is everyone’s most valuable commodity. And too many retailers are missing out on a lot of fun because they are over-thinking which beers to bring in next. Play the hot hand, people! And since you have a limited amount of space and/or tap handles, it only makes sense to stock brands that have the ‘numbers’ that will make you more money.”
And that’s what Lagu-Numerology is all about.*
#1 IPA Brand - Lagunitas IPA is the top-selling IPA brand.
+30% Annual Growth Rate - Lagunitas’ annual growth rate averaged 30% over the last ten years in our market.
#6 Craft Brand Family - Of all craft brand families, Lagunitas was the second fastest grower, while maintaining a premium price point.
An Origlio Top 10 Best Seller - It’s our 8th best-selling brand by margin.
#1 IPA 12-Pack - Lagunitas IPA 12-packs are up 16%.
#6 IPA Brand Little Sumpin’ Sumpin’ - Accounts that added Little Sumpin’ Sumpin’ increased total sales by 35% and increased IPA sales by 15%.
Craft Cans Up +39% - 12th of Never by itself would already be a top 75 craft brewery in IRI with just a single SKU.
*All national data cited courtesy of IRI.
Shelf Talkers “Stop the Shopper”
So Why Not Download Them For Free at Origlio.com?
"It works for wine,” says Bob Sokel, Off-premise Chain and Space Planning Manager for Origlio Beverage. “There is no doubt in my mind that shelf talkers stop the shopper and influence what a browsing customer purchases. That’s why we’ve invested so much money in custom software, which automatically generates shelf talkers for each one of our products. We know that consumers like variety and want to be educated, so why wouldn’t a retailer take advantage of this free service?”
Retailers know the importance of stopping customers in their tracks to get them to buy things that aren’t on their shopping list. A good shelf talker can do that. “When I’m in a wine store, I watch people shop. I see them drawn to a bottle because they are reading the shelf talker,” Sokel observed. “Once the bottle is in their hands, there’s a good chance it will end up in the shopping cart.”
Along with a full-color graphic, Origlio’s shelf talkers uniformly display the information consumers typically look up on their cell phones… style, ABV, IBUs, taste and food pairings. There’s even a space for you to include a score from whichever source you find credible. (ABI recently purchased RateBeer.com so we thought you would want to use a score from an independent source you trust.) Beers tagged with a rating – preferably those with a score of 88 or higher, tend to sell better. You could call them “better beers” that sell at higher price points. In other words, the beers you want to sell more of.
So why should you bother downloading Origlio’s shelf talkers?
Shelf talkers provide information that customers may be afraid or embarrassed to ask. Plus, consumers are more likely to buy a product that catches their eye. That factor outweighs promotions, coupons, recommendations and even ads according to a study by Market Force.
Origlio’s eye-catching shelf talkers, with their colorful graphics and useful information, not only tell the beer’s story, they grab the shopper’s attention right at the point of purchase, where 70% of buying decisions are made. How cool is that?
Shelf Talkers Add Another Level of Customer Service and…
1. Simplify the shopper’s decision making process
2. Highlight products with the hottest flavors and trends customers seek
3. Create a positive, “value-added” shopping experience
4. Guide the shopper to higher margin brands
5. Combined with a price promotion, shelf talkers signal value, increasing sales velocity
6. Shoppers seek strong value propositions, not always the lowest cost
7. Increase purchases made by loyal customers
8. Attract new customers who like the way you sell beer
Simply search for a beer at Origlio.com. Click on the beer and it will take you to a description page. Hover over the shelf talker box in the upper right corner. Select print. Four shelf talkers are then automatically sent directly to your printer.
Shelf Sets for Today's Single-Serve Consumer
But there is another kind of single-serve consumer, one who craves variety, new flavors and a customized – make that personalized – assortment of adult beverages that six and 12-packs don’t offer. “Today’s legal age drinkers have a set of roughly 12 different kinds of alcoholic beverages in their personal repertoire,” explains Ray Faust, Chief Sales Officer for Heineken USA. “Today’s consumers are eager to experiment with new flavors and styles. They are willing to pay more for something unique. And cost per ounce doesn’t really matter, as long as they get the assortment they want. Single-serve, two-fers and 4-packs are the preferred packages for these consumers.”
“It’s all about the luxury of choice,” says Linda Ashbee, Origlio Beverage Off-premise District Manager for Delaware and Chester Counties. “The right assortment of single-serve and small format packages is an opportunity for retailers to drive impulse purchases. Plus, these packages make it easier to entice customers to trade-up to high margin items, which might be deemed too expensive in larger configurations.” “But to cash in on these opportunities, you have to ‘curate’ the right assortment for your store. What you don’t have to do is cram in everything under the sun. That just confuses and frustrates the customer,” says Jeff Stiles, Off-premise District Manager for Bucks and Montgomery Counties.
So what does the right assortment look like?
“There’s no one, simple answer to that question”, comments Bob Seeley, Off-premise District Manager for Philadelphia County. “But whatever the assortment is, it must be organized in some kind of logical order that makes sense to the customer. You want to make it simple for the customer to shop and choose. If you don’t do that, you can forget impulse buys and up-selling.”
Build Your Business with Single & Small Format Packages
To provide an organized and logical shopping experience, follow the suggested flow of product segments. The product assortment and space allocated to each segment should be based on your customer’s demands.
Remember: shoppers expect stores to fulfill ALL their needs, while still making it easy to shop.
• Easy to change assortment
• Singles & small format packages are very profitable
• 55% of all beer purchases are singles
• Single sales have increased 31% since 2012 across all price segments
• The single shopper is more loyal to a store than any other customer
If you maintain this template, it will be easy to change your display to take advantage of new products and seasonals.
Rethinking Retail Podcast Ep. 1: Shelf Sets