It’s usually safe to assume that an influx of customers over the festive season will bring an increase in demand for pints and bottles as people socialise with colleagues, friends and family.
Beer and cider, then, could present a significant opportunity for licensees throughout late November and through December, and brewers have said a range of trusted favourites alongside some strong trade-up options will help outlets to make the most of the season.
“On beer specifically [licensees] can expect consumers to premiumise their choices opting for more world, craft and premium beers than usual,” said Crawford Sinclair of Innis & Gunn.
He also encouraged operators to pass on any price rises to customers, ‘otherwise it’s them that end up losing out’.
“[Licensees] should also be looking at their cost base and where they can possibly make savings to help them stay competitive, and selling more premium products with a higher cash margin during the festive season will also help,” said Sinclair.
That was backed up by John Price, head of marketing at KBE Drinks, the company behind Kingfisher and Sapporo, who said ‘super premium’ beer brands can command an extra £1 a pint price tag.
And although many consumers are finding they have less money for nights out, Price was confident those visiting pubs over the festive season will be prepared to spend.
“What we’ve seen is that consumers will often choose more everyday beer brands to drink at home but then enjoy trading up to more premium options when out in pubs and bars, despite having less disposable income, seemingly considering them a permissible treat,” he said.
Gillian Murray, on-trade director for Scotland at Tennent’s and Magners parent company C&C Group, said she reckoned festive custom this year will be a mixture of people ordering their ‘go-to’ drinks and those looking to branch out.
She advised operators to keep an eye on their suppliers’ festive brochures, weekly deals and trade shows to spot the best prices ahead of the festive season.
“It’s important to note, however, that despite the cost of living, consumers are still looking for quality over price this Christmas, with 62% of consumers happy to spend more on quality food and drink,” said Murray.
“Operators should take advantage of this and give consumers the opportunity to trade up to something more expensive.”
Stocking the right range of mainstream and premium products may not be enough on its own, however, and brand owners advised licensees to go the extra mile with their offers to ensure they are as attractive as possible to festive revellers.
Steven Sturgeon, head of marketing for Belhaven, said: “It is hard to tell how this festive season will fare due to various factors, one being financial circumstances that may suppress customers’ desires to go out and instead decide to stay at home.
“That said, people still want to share good times together and the pub is a traditional place to do just that. This year customers will be looking for more exciting and unforgettable experiences, whether that be through creative food and drink combinations or entertainment.”
And Joe Dunnet of Kopparberg pointed to hot cider serves as a way outlets can offer their customers something a little bit different.
“Hot serves add value to consumers, which is proving increasingly important during economically challenging times,” he said. “With out of home occasion frequency in decline, it’s important for venues to deliver value for money for the consumer. The added value of a hot serve also allows venues to charge more, driving profit into their tills. To successfully market hot serves, venues must ensure they drive awareness and encourage trial through menus and POS as well as supporting promotions to drive rate of sale and reduce wastage.”
