1. Retail market: liquor industry
Briefing notes and sales support
for newspaper media sales teams

2. What’s in this deck?
This deck is split into two sections: Section 1 An overview of the Australian retail market Media owners must understand the competitive environment and business needs of their clients in order to provide optimal advertising solutions. Section 1 of this deck won’t make you an instant expert, but it will help get you up to speed on the most important facts about the category.
Section 2 Focus on bottle shops This report will focus on liquor retail. Additional reports will discuss other key retail sectors. Section 3 Support slides for sales presentations Every great sales presentation is tailored for each client, but there some points fit most clients within a category. Section 3 contains research about how consumers make alcohol purchases, and the contribution newspaper media makes in the decision process.

3. Section 1 Retail market: an overview

4. Retail: core of the consumer economy
Turnover: $24.9bn per month
Over 134,819 retail businesses employing 1.3m people
Sources: Australian Bureau of Statistics:
Retail Trade, Australia, March 2016.
Labour Force, Australia, Detailed, Quarterly,
81650 Counts of Australian Businesses, including Entries and Exits, Jun 2011 to Jun 2015.

5. Retail growth prospects for 2016
Retail growth was strong for most of 2015 despite less than expected growth for the Christmas/post-Christmas sales period.
Forecasts for the remainder of 2016 are for continued growth albeit at a reduced rate.
Source: economics.com/australia/retail-sales-annual/forecast; ABS

6. Retail: key sectors $24.9 billion/month Retail
Food
$10.1bn
Household goods
$4.4bn
Cafes, restaurants & takeaway food
$3.4bn
Clothing, footwear & accessories
$2.0bn
Department stores
$1.6bn
Other retail
Household goods (furniture, housewares, electrical/ electronic goods, hardware, building & garden supplies): 17%
Cafes, restaurants & takeaway: 14%
Clothing, footwear, accessories: 7%
Department stores : 6%
Food retail (supermarket/grocery, liquor, specialty food): 43% of all retail spend
Source: Australian Bureau of Statistics Retail Trade, Australia, March 2016.

7. Retailers: big spenders on advertising
According to the latest Advertisers Report, retailers make up 4 of the top 5 advertisers, and 11 of the top 25.
Retail accounts for 47% of total adspend for the top 25 advertisers.
Retailers are also big spenders on newspaper media, accounting for almost half of the top 25 newspaper advertisers.
Source: Ebiquity, 2014 Advertisers Report

8. Section 2 Liquor retail

9. Bottle shops: retail revenue
Revenue: $10.0 billion (annual)
Annual growth ( ): 3.2%
Forecast annual growth ( ): 2.8%
Businesses: 2,305
Source: IBISWorld, Liquor Retailing in Australia, March 2016.

10. Alcohol consumption declining
Falling alcohol consumption
Per capita alcohol consumption has declined over the past six years.
Liquor retailing revenue has remained fairly steady due to changes in the type of beverages purchased.
Growth in premium categories and rising in-home consumption.
Consumption outlook
Alcohol consumption per capita is expected to decrease further through 2016.
Source: Australian Bureau of Statistics, Apparent Consumption of Alcohol, Australia, 2015

11. Liquor retail industry: key product segments
Liquor sales dominated by
Beer
38% of industry sales in , but a declining percentage of total sales.
Wine
26% of liquor sales in , growing product segment due to increase in popularity of premium wines.
Bottled spirits
21% in , increasing in popularity
Source: IBISWorld, Liquor Retailing in Australia, March 2016.

12. Liquor retail industry: key market segments
Males aged 18 to 39:
The largest market
Favour beer, spirits and brown-spirit RTDs
Males aged 40 and over:
Greatest consumers of spirits
Favour more expensive liquors
Women aged 40 and over:
More likely to purchase liquor from supermarkets
Increasing market share
Women aged 18 to 39:
Favour light RTDs and ciders
Wine consumption increasing
Source: IBISWorld, Liquor Retailing in Australia, March 2016.

13. Supermarkets dominate retail liquor market
Liquor market dominated by grocery giants
Woolworths and Wesfarmers-owned Coles account for over 60% of industry revenue.
The growing market dominance of the supermarket giants has come at the expense of independent liquor retailers.
Many independent liquor retailers have joined together under retail banner groups to increase their marketing and buying competitiveness.
Source: IBISWorld, Liquor Retailing in Australia, March 2016.

14. The retail liquor landscape is changing
Increasing
Demand for off-premises alcohol
Cider, spirits and premium beer
Cider and craft beer are the fastest growing segments
Demand for premium beverages
Competition between supermarket giants
Competition between supermarket giants and independent liquor stores
Online alcohol sales
Per capita alcohol consumption
Beer consumption
Shift to premium beers has offset some of the profit lost due to declining beer sales
Average industry product prices
Decreasing
Source: IBISWorld, Liquor Retailing in Australia, March 2016.

15. Section 3 Support slides for sales presentations

16. About these slides
The following slides provide general supporting arguments to assist sales teams when building client-specific presentations. The purpose is to open discussion, to demonstrate a basic understanding of factors that drive liquor sales, and to show how newspaper media can help to influence the sales process.
These slides are intended to be used in a presentation after recapping the brief, and before presenting analysis and recommendations tailored to the specific client. Needless to say, they can and be should be adapted to suit your particular presentation requirements.
Recap client/agency brief
Supermarket industry support slides
Client specific analysis
Recommendations

17. 9.1 million Australians shopped at a bottle store in the last month.
Changing landscape
The Australian liquor retail sector is performing admirably in the face of declining alcohol consumption.
9.1 million Australians shopped at a bottle store in the last month.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

18. The liquor market: stout competition
But…competition between liquor retailers is on the increase.

19. News media is here to help
News media delivers large numbers of bottle shop consumers
Advertisers can reach 94 per cent of bottle shop customers with newspaper media – making it a powerful advertising platform for retailers.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

20. Full strength reach with news media
Liquor store brands will reach their target market with newspaper media advertising. 
Regular drinkers are more likely to be male (59%)
News media reaches 91% of males, including 94% of males who regularly enjoy a drink
Drinkers are heavily featured in the socioeconomic group A, where they 44% are more likely to imbibe on a regular basis than those in the DE group.
News media readers are more likely to belong to social grade A million of them read news media every month.
Those who are married are 35% more likely to reach for a beer than those who have never married.
With news media, advertisers can reach 95% of married people who regularly reach for a brew.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

21. Drinkers are frequent and engaged news readers
Newspapers rate No.1 for heavy media consumption in both regular beer drinkers and regular wine drinkers, indexing higher than any other media in comparison to all people.
Regular beer drinkers are 26% more likely to be heavy newspaper readers (7+ issues per week)
Regular wine drinkers are 37% more likely to be heavy newspaper readers (7+ issues per week)
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016.

22. Regular drinkers engage with digital news
 Regular drinkers are more inclined than the general population to consume publisher content on digital devices
The top 20% of spenders on beer, wine and spirits are 11 per cent more likely to read digital news media.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

23. Readers value their favourite tipple
News media readers are happy to spend big on their favourite tipple
Some 35 per cent of digital readers say they buy their favourite brand of alcohol regardless of price.
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

24. Wine buffs
Data shows that the majority of readers are wine buffs - some 45 per cent bought a bottle of wine in the last four weeks.
News media reaches nine in ten of the top 20
per cent of spenders on wine.
Digital readers are seven per cent more likely
to be a top spender on wine.
Community newspaper readers are 19 per cent
more likely to shop at a specialised wine store.
95% of wine buffs who prefer Australian made, read news media every month
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

25. Readers are better prospects than non-readers
News media readers buy more often than non-readers
They are 16% more likely to have purchased their favourite drink from a bottle store in the last month than non-readers.

26. News media readers like to share their opinions
Reach important word-of-mouth influencers with news media
News media reaches 92 per cent of people who are regularly asked their opinions about their favourite tipple and encourage people to buy because of a good experience
With news media, advertisers can reach 400,000 readers who are often the first person in their network to try-out a new alcoholic beverage
And, 400,000 readers who regularly post or share comments about their experience online
Source: emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending March 2016; Nielsen DRM March 2016, People 14+ only.

27. 94% 79% 74% It’s “Internet and newspapers”
Print
79%
Digital
74%
The combined reach of print and digital newspaper media:
94%
of people who have patronised a liquor retailer
in the last month.
Source:emma™ conducted by Ipsos MediaCT, People 14+ for the 12 months ending February 2016, Nielsen DRM February 2016, People 14+ only.

28. Client specific analysis & recommendations
This is the point to bridge to a client specific discussion.
Each presentation will need to be individually tailored to suit the client and their objectives, but the logical flow from here is to move on to
Analyses that address the client’s specific situation, challenges and opportunities.
Solutions using your inventory, giving clear reasons why they are appropriate to the client’s specific needs, and suggestions on how they can be used most effectively.