Heineken unveils key areas of growth for operators
By Jack Walsh
HEINEKEN has identified a number of ‘growth drivers’ which it claims could bolster UK on-trade sales by more than £1 billion over the next three years.
The Greenpaper, which is said to represent the biggest piece of category research undertaken by the beer and cider producer, outlined six areas in which Heineken said licensees can grow their business.
With the number of visits to the on-trade said to have fallen 10% in the past five years, Heineken said licensees must fully capitalise on and create events, such as screening football matches and hosting pub quizzes, to “give people a reason to visit”.
Operators should also “maximise the core”, according to the Greenpaper. It claims that consumers will stay longer, spend more and visit more often if licensees “give them everything they expect”; operators should provide things like free wi-fi and extend trading hours to encourage consumers with ‘flexible lifestyles’ to visit more frequently.
Food is another way operators can attract customers, according to the research, which states that licensees can maximise consumer spend by pairing food with appropriate beers and ciders.
And as more consumers seek to lead healthier lifestyles, Heineken said operators can tap into this demand with a comprehensive low and no-alcohol range.
With 18 to 24 year olds said to be visiting the on-trade less year-on-year, the paper argues that operators can counteract this decline by stocking the right range of products – a balance between well-known brands and more unusual options.
Lastly, Heineken said one of the key ways to increase consumer spend is to up-sell premium beers and ciders, which it said can be done through a combination of stand-alone fonts, point of sale and back-bar displays, as well as highlighting beer and cider tasting notes.
Speaking to SLTN, John Hutchison, regional on-trade sales director for the west of Scotland, described the Greenpaper as going “back to some brilliant basics”.
“It’s really about how do we help to get more people into pubs more often, spending more money,” said Hutchison.
“So my team around Scotland are actively helping customers to navigate through these growth drivers and what they look like to each individual.”
Hutchison added that Heineken will “be hanging any of our Scottish activations off the back of these key pillars” in the months ahead.