Reviving profits
Following the poor summer, pubs really need to make the most of the festive season. Nigel Huddleston kicks off a four-page special with a look at upselling spirits
No other drinks category lends itself to the special occasion more than spirits, and with Christmas fast approaching, licensees need to manoeuvre themselves into the position where they can make the most of the sales opportunity.
AC Nielsen figures show that on-trade spirits sales in December were 52% higher than the average for January to November. Not only is that a big leap in itself, it's also a greater seasonal uplift than for other major drinks categories.
Diageo GB category development director Russell Jones says: "While the actual number of visits to the on-trade does not see a significant increase over the Christmas period, consumers tend to spend longer in outlets.
"Spirits suit these occasions - last year spirits accounted for one in four drinks in December in the on-trade.
"These are special occasions for consumers and they are prepared to spend about 13% more per visit."
Some spirits sub-categories have an even more marked uplift at Christmas, most notably liqueurs, though similarly indulgent drinks, such as malt whisky and Cognac, provide an opportunity to persuade consumers to trade up at Christmas time.
Experiment with range of malts
Aileen Nicol, marketing manager for Laphroaig at Beam Global UK, says: "We advise licensees to experiment more with the range of malts they offer, especially as consumers use the on-trade as an environment to try different types without the need to purchase a whole bottle, and discuss their discoveries with friends and the licensee."
Nicol also claims choosing the right spirit brands can help build additional sales further down the line, and says Laphroaig is "an important malt to have behind the bar during the festive season".
She adds: "It has a loyal consumer base.
According to independent research, Laphroaig drinkers are more likely to recommend it to friends than any other malt.
"They talk about it enthusiastically and their passion encourages more people to try it," she says.
Cognac also offers the chance to get customers to trade up to more expensive spirits when looking for a Christmas treat.
Beam Global UK marketing controller Jeanette Edwards says: "Licensees can maximise profit opportunities by encouraging customers to trade up and indulge in higher marques during the festive season."
Focusing on growth categories is important at Christmas: in spirits these are malt whisky (up 14% in the year to May, according to Nielsen), followed by golden rum (+6%) and vodka (+5%). Biggest sellers are vodka, with sales of £1.2bn in the year to May, followed by blended Scotch on £361m and imported whiskey on £333m.
Skew towards final-quarter sales
But combined sales of cream liqueurs, non-cream liqueurs and speciality spirits are £592m, with a big skew towards sales in the final quarter of the calendar year.
Warninks is closely associated with Christmas. Katie Rawll, marketing director at distributor First Drinks Brands, says: "Warninks is one of those staples - for many people, Christmas wouldn't be the same without it.
"You don't see much of it for the rest of the year, and then in the run-up to our Christmas activity we sell about 50,000 cases."
As if to emphasise advocaat's place in British Christmas culture, First Drinks Brands puts its faith in the traditional serve of the Snowball cocktail, though it tries to persuade licensees to be more adventurous with other liqueurs such as Disaronno.
The secret for pubs - especially at such a busy time of year - is not to get too carried away with complicated serves.
Diageo has taken a back-to-basics approach this year with Baileys, advertising a shaken-over-ice serve through TV, press and outdoor advertising. It gives pubs the chance to show off with a cocktail shaker, without needing the on-site expertise of a champion mixologist.
Baileys senior brand manager Emily Young claims: "No other spirits brand is associated as closely with Christmas as Baileys - this year we increased our investment in it by 20%, making it our most heavyweight campaign over the festive period for five years."
Diageo's Smirnoff has a £1.2m tailored on-trade campaign focusing on bar staff education, perfect serves and an extensive PoS collection.
Jones at Diageo says licensees who really want to drive spirits sales simply need to think about making their venue a special place to spend time.
"People use the on-trade as a place to escape the pressure of entertaining and being the perfect host at home. Licensees should ensure they provide a great experience by offering a great range of well-presented mixed spirit drinks and excellent customer service."
Serves for success
With customers staying longer in pubs, the way pubs serve drinks is more important at Christmas than at any other time.
Being more adventurous with serves can add seasonal interest and help build a festive atmosphere.
Chris Lock, marketing manager for Smirnoff at Diageo GB, says: "Ensuring quality serves every time helps guarantee repeat business."
He adds: "Mix Smirnoff with cranberry juice in a tall glass over plenty of ice and garnished with lime, for a refreshing, seasonal drink."
Cranberry features highly in spirits
companies' suggested Christmas serves.
First Drinks Brands suggest using its
Disaronno liqueur with cranberry juice, a dash of soda and a squeeze of fresh lime juice to make an Alabama Slammer.
Adding vodka and orange juice creates a Cranberry Cooler, while the Italian Breeze is Disaronno, white rum, cranberry and
pineapple juice.
All these recipes and many more can be found at in-the-spirit.co.uk
Even seeemingly inflexible spirits such as Cognac can be made more interesting with a twist to the serve.
Beam Global suggest the Courvoiser
Ginger: VS or VSOP Cognac, ginger beer and a squeezed lime wedge.
Top tips for boosting Christmas trade
l Hit the spot with merchandising
Merchandise well and make suggestions
"Research highlights the fact that most consumers haven't yet made their drink
decision as they approach the bar, so a
simple suggestion, either verbally or via menus or blackboard, can be enough to influence the decision-making process."
Jeanette Edwards, Courvoisier
l Raise staff awareness
"Licensees need to make sure that they display their malt range well and that their staff have a good basic level of knowledge about malt whisky, and the regional styles and variations in expressions. This can
encourage customers to try new products and expand their repertoire."
Aileen Nicol, Laphroaig
l Promote food links
"Courvoisier VSOP works particularly well with desserts, as the sweetness complements complex flavours of the spirit. Trading up from VS to VSOP can improve profit margins."
Jeanette Edwards, Courvoisier
l Plan ahead
"Consumers start to think about Christmas and their festive season events towards the end of September, so licensees should be planning how to promote their outlets as a venue for celebrations now."
Russell Dones, Diageo
