Heineken UK has unveiled The Green Paper, a new initiative from the drinks giant with growth drivers that could boost the on-trade by over £1b over the next three years.
The biggest piece of category research ever undertaken by the company, the outcome is the culmination of over 100 pieces of qualitative and quantitative research.
According to the green paper research launched earlier this week the six drivers for growth are:
1. Let’s Get Together – Incremental Value £249m
Licensees should be captalising on existing events and creating new occasions throughout the year to drive footfall and maximise sales. With more competition for consumers’ cash, the number of visits to the on-trade has fallen by 10% over the past five years.
Create occasions that give people a reason to visit rather than stay at home.
2. Maximise The Core – Incremental Value £225m
Drinkers will stay longer, spend more and visit more regularly if licensees give them everything they expect from their favourite bar or restaurant. Consumers are leading more flexible lifestyles with remote working, part-time hours and staycations. By maximising the occasions for which a pub or bar can be used throughout the day, licensees can also maximise revenues.
Providing free Wi-Fi or different food offerings throughout the day can widen trading hours and bring in new consumers for new occasions. Communicating these offerings through outdoor signage or advertising this online are the simplest ways to maximise footfall.
3. Great With Food – Incremental Value £189m
Licensees should maximise their consumer spend by pairing food with their range of ciders and beers. Food is present at a third of all drinking occasions and this is growing.
A simple burger and a pint style promotion will increase footfall or presenting a more formal food and drink matched menu will increase spend in higher end outlets.
4. Live Better – Incremental Value £174m
People are trying to lead healthier and more sustainable lifestyles, whether by watching what they eat, moderating their alcohol intake or engaging with brands that represent their views.
Having a range of healthier options such as no- and low-alcohol alternatives or natural and sustainably produced alcoholic drinks means that licensees can remove the barrier of consumers feeling that a trip to the pub or bar is not in line with their lifestyle.
5. My Generation – Incremental Value £108m
The 18-24-year-old generation of beer and cider drinkers have a lot more choice than previous generations and are yet to find their favourite drink, bar or pub, so licensees should shout about why their outlet is relevant for them to visit with friends. On-trade visits by this age group is falling year-on-year, with the number of times per week they go out for a drink falling by 20%, over the last decade.
By having the right range of products – a balance between well-known brands available at reasonable prices as well as more unique choices – you can reconnect with 18-24 year-old consumers and ensure that there is something for everyone. Speaking the right language in terms of marketing and utilising digital, whilst being flexible to consumer needs, will also drive future footfall.
6. We’re Worth It – Incremental Value £72m
One of the easiest ways to increase how much consumers spend is by encouraging them to try a more premium beer or cider at the bar. The average price of a pint of beer in the on-trade has risen by 42p over the last four years. Although the number of occasions in the on-trade has declined, consumers are treating themselves when they do go out and are choosing more premium drinks.
It is still key to have a mainstream beer and cider offering, however, licensees should try and premiumise at every opportunity. This can be done by offering a range of mainstream and premium drinks at the right price points.
Use every tool at an outlet’s disposal, to drive consideration of more premium choices – standalone founts, point of sale and back bar displays as well as giving the best spots in the fridge and on the bar to the more premium options. Similarly, writing tasting notes for your craft range can drive interest and create plenty of trade up opportunities.
Jerry Shedden, category and trade marketing director at Heineken, said: “This is about giving more people a reason to visit pubs and bars – and it will mean more people through your doors, spending more money, more often. Months of research have been condensed into an easy to understand category strategy that will grow our customers’ businesses. The six growth drivers are the starting point for all Heineken on-trade activations, so with the power of the best portfolio of ciders and beers, and our industry-leading expertise, we will be helping to bring the on trade back into growth.”