Having closely tracked the impact of COVID-19 on buying behavior in grocery and drug stores since mid-February, shopper intelligence leader Catalina has compared sales data with its partner Koupon, the leading promotion solution provider for small format retail, to gain a more holistic understanding of the pandemic’s impact on cross-channel consumer purchases. While wine, beer and spirts have each experienced a boost in sales during the pandemic across grocery, drug and c-store channels, the wine category has seen particularly strong sales growth.
Wine Category Sees Strong Gains across the Board
Catalina’s shopping data reveals a significant increase in wine sales for the 10-week period beginning Feb. 23 through May 2, 2020 across grocery and drug channels, when sheltering in place became more common vs. the same period a year ago:
- Wine total dollar sales increased by 38%, with unit sales up by 32%
- The number of wine buyers increased by 16%
- Dollars spent per wine buyer were up 15% -- from $62.74 to $71.94 (for the total 10-week period)
- Units purchased per wine buyer were up 10% -- from 6.3 to 6.9 (for the total 10-week period)
- 46% of wine buyers made a repeat purchase (2+ trips during the 10-week period) vs. 36% a year ago
- In 2020, 45% of trips included purchases of two or more bottles of wine, compared to 36% of trips in 2019
- 3+ bottles were purchased this year on 19% of trips, compared to 14% of trips last year
- 6+ bottles were purchased this year on 7.3% of trips, compared to 5.8% of trips last year
Many new buyers have entered the category as well, and they are making repeat purchases.
New category buyers in grocery & drug (they didn’t buy the category in the previous 52 weeks):
|% new buyers||% new buyers repeating|
|Wine - COVID period (10 weeks)||+13%||+21%|
|Wine - same period year ago||+11%||+15%|
|Beer - COVID period (10 weeks)||+10%||+21%|
|Beer - same period year ago||+10%||+16%|
|Spirits - COVID period (10 weeks)||+18%||+19%|
|Spirits - same period year ago||+16%||+13%|
Across alcoholic beverages, wine has seen the greatest overall increase compared to the pre-COVID period:
Total dollar sales vs. a year ago (grocery/drug):
|6 weeks pre-COVID||10-Week COVID period||Change|
According to Koupon, as virtual happy hours have become more popular, there has been a clear shift toward C-store visits later in the day, and a corresponding increase in the sales of adult beverages. In the C-store channel, for the same 10-week period vs. year ago:
- Wine total dollar sales were up 9%, beer was up 6%, and spirits up 24%
- 32% of wine buyers were new to the category within c-store, and 17% of these first-time buyers have made a repeat purchase
- For consumers buying both before and during the crisis, wine basket size was up 4%, beer up 11% and spirits up 6%
Wine Industry Perspectives
“During times of crisis, new behaviors and habits emerge for some consumers while others return to the familiar,” said Stephanie Gallo, Chief Marketing Officer, E. & J. Gallo.” “The rise of virtual observances - happy hours, baby showers, birthdays and even weddings - means consumers are using technology in new ways while enjoying wine and spirits as a part of their connections. Several of our wineries are now engaging consumers through weekly virtual happy hours with winemakers and cooking demonstrations with chefs.”
Added Jeff Dubiel, Chief Marketing Officer of The Wine Group, “During the initial panic-buy period, the wine category saw the same consumer pantry-loading behaviors as other categories like paper towels and shelf-stable goods. As we have seen with previous crises, the increased purchase and consumption continued to hold following the initial wave of pantry-loading as consumers adapted to sheltering in place. Americans are resilient, and we have seen and heard wine enthusiasts finding inventive news ways, such as virtual happy hours and wine tastings - to enjoy their favorite beverages with friends and family.”
Adapting for a New Normal
For the week ending May 3, convenience store sales have returned to year-over-year growth levels across the majority of in-store categories. As more states begin to reopen and consumers adjust to a new normal, consumer goods producers, including the wine category, will continue to adapt.
“We have seen shifts in consumer behavior where larger indulgences like vacations are being replaced with small moments of joy and reward, such as a nice glass of wine at the end of the day. Consumers are moving toward leading brands that are comfortable and familiar,” said Jeff Dubiel. “The way consumers interact, shop and spend their time has morphed into a more digital experience, so our ability to quickly adjust our engagement during the pandemic has been important. As an example, when the Coachella music festival was postponed, Cupcake Vineyards provided a ‘Couchella’ live stream event – and a chance to win Coachella tickets for the rescheduled event in October.”
Stephanie Gallo explained, “Maintaining a sense of community matters more now than ever, and people are looking for ways to discover new ways to fill their time at home. Because many are people are turning to cooking, we’ve launched a weekly cooking demo ‘Supper Series’ on Saturdays and Sundays on Instagram Live, hosted by @louismmartiniwinery Executive Chef Jeffery Russell and @ J Vineyards & Winery Executive Chef Carl Shelton. These weekly appearances bring loyal and new consumers closer to our brands, while presenting authentic, relatable content, and we expect to continue programs like this moving forward.”
Catalina is the market leader in shopper intelligence and highly targeted in-store and digital media that personalizes the shopper journey. Powered by the world’s richest real-time shopper database, Catalina helps CPG brands, retailers and agencies optimize every stage of media planning, execution and measurement to deliver $6.1 billion in consumer value annually. Based in St. Petersburg, FL, Catalina has operations in the United States, Europe and Japan. To learn more, please visit www.catalina.com or follow us on Twitter @Catalina.
Koupon provides C-store retailers and brands with the easiest way to connect and engage with shoppers to grow sales. Koupon works with brands to easily deploy personalized, channel-wide promotions, and helps retailers to secure additional brand trade spending and grow shopper engagement. Members of the Koupon Network - the leading C-store collaborative with 30 of the top 50 C-store retailers and over 70 brands – realize the benefit from Koupon’s unmatched channel reach, proprietary technology and data, and campaign management services. Since its founding in 2011, Koupon has delivered over 4 billion offers. To learn more, please visit www.kouponmedia.com.