There are Riches in Niches

We are at the stage in our industry where our fates will be determined by finding and pursuing pockets of growth within organizations. At least at this time, we cannot count on overall category consumption to support our established brands and their extensions AND the product innovations necessary to meet evolving consumer demand.

First, existing inventory needs to be pulled through the tiers in an informed way. First, by applying inventory management principles at the point where we intersect with the consumer – in retail stores and at away from home outlets. Second, by embarking on greater segmentation of our customers within their environments and trading areas.

We do not lack the data, product knowledge nor the technology to do this. I am certain we are all doing category management in some form. What we do lack is a way to efficiently and effectively make it work for us collectively.

At the Beverage Information Group, we’re extending the discussion that began at Beverage Industry Week through a recurring Category Management Work Group. Our first virtual meeting will be in August, and all interested parties are welcome to attend the meetings we hold.

This month’s consumer report examines how bev-al preferences have diversified across multicultural demographic segments. Among the key learnings: “Our customers are moving more towards the occasion-based enjoyment of different beverages and there are distinct differences in this behavior among consumer segments. Surprisingly. Table Wine is the most widely consumed alcohol beverage across all cultures.” Our findings reinforce the importance of matching product availability with local preferences and tailoring marketing strategies accordingly.

We are personally looking forward to continuing this journey of (re)discovery of our vibrant industry. I would love to hear from you on this or any subject.

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