The Wine Report: Cheers to holiday sales at convenience

Suzanne Gardiner
General manager, commercial operations
Mark Anthony Group

“Older consumers (boomers) tend to be loyal to their go-to, well-known big brands, while younger, as well as established and new wine drinkers, are more open to exploration. Millennial and younger consumers often seek wines they have seen on social media through advertising or with celebrity endorsements. Brands with attractive, photo-worthy packaging also appeal to this demographic.”

Stock tips   Gardiner says that convenience stores’ wine sales will be more about the convenience of consumers being able to find their favourite brands than it will be about exploration, so listing the top selling and highest awareness brands is likely the best strategy. Mark Anthony’s top-selling import wine brands with high-awareness include, Josh Cellars Cabernet Sauvignon, Josh Cellars Chardonnay, Beringer Main & Vine Pinot Grigio, Wolf Blass Yellow Label Shiraz, Barefoot Cellars Pinot Grigio, Merlot and Moscato, Freixenet Cordon Negro and Mionetto Prestige Prosecco.

Savvy promotion  Cross promotions with other, non-alcoholic products in the store are a great way to promote wine. White wines with popcorn or salty snacks and red wines with chocolate are successful examples. Take advantage of what suppliers can offer, like high-res digital bottle shots to use for in-store signage. Placing “We Sell Wine” signs outside and inside of c-stores is a good way to inform consumers. 

What’s new   Must stocks include Josh Cellars Seaswept (a Pinot Grigio and Sauvignon Blanc blend), Vista Point Pinot Grigio and Quarisa Johnny Q Shiraz. 

Buying insights  Over 60% of wine purchases are impulse buys, so wine should be merchandised in a high-pass, high-pause area of the store. As Gardiner notes: “Once wine is in a consumer’s basket, the overall basket size can increase as much as 30% as consumers seek pairing options for occasions.”

Nathan O’Brien

Strategic account manager – convenience 

Arterra Wines Canada

“Convenience store customers are looking for big recognizable brands that they have experience with in the past. The consumption occasion is likely within an hour of purchase so keep white, rosé and sparkling wines chilled for this reason.” 

Stock tips  Consider focusing on more premium wines (above $15) during the holidays when consumers tend to spend more. Top picks include Tom Gore Cabernet Sauvignon, Jackson-Triggs Sparkling Reserve VQA and Inniskillin Late Autumn Riesling VQA.

Savvy promotion  C-stores should think about seasonality. Red and white wines sales stay fairly static year-round; however, there’s a jump over summer for rosé. During the holidays, sales of sparkling wines increase substantially. Companies can support their efforts by providing category insights on top selling wines, seasonal trends and food pairing recommendations.

What’s new  Think big with 3 litre formats, like Jackson-Triggs Proprietors’ Selection Pinot Grigio and Cabernet Sauvignon. They’re value priced at $39.95.

Trend watch  Better for you, or lower sugar wines are in great demand. Brands, like Bask with its 0g of sugar per serving, have been hugely popular already in convenience store channels.

Buying insights  Shoppers looking to make a quick decision are likely to gravitate towards a brand or SKU they’ve purchased before. Carrying recognizable brands is the best plan.

Stephen Mitchell

President 

Sprucewood Shores Estate Winery

“We have been receiving a lot of interest from convenience store operators,” he says. “Many are excited about the sales they are already seeing in their stores. Many like the direct delivery option that small Ontario suppliers are providing since it’s provided by the supplier at no extra cost to the store.”

Stock tips  Ensure popular varietal coverage—Cabernet Sauvignon, Pinot Grigio, Sauvignon Blanc and Merlot. Remember shelf space rules and include VQA products and craft local producers. When selecting, choose producers who operate their business close to your location for increased customer familiarity.

Savvy promotion  “A lot of rules have been relaxed, which will be helpful,” says Mitchell. “Cross promotes with paired snacks. Work with suppliers that come into your stores. Ask your supplier for point-of-sale materials, like stands or shelf talkers to introduce products.” 

What’s new  Perfect for the holidays, the best-selling Warm N Cozy mulled wine is premade in the bottle. Customers can simply pour, heat and enjoy. Another standout is the beautifully crafted Beach Glass Wine series (red—Cab Franc, white—Chardonnay/Riesling) and rosé), ideal for gifting. 

Trend watch  Lower alcohol, white wines, lighter red wines and different pack sizes (small bottles, cans, or boxes) are all growing trends in wine right now.

Daniel Speck

Co-owner, senior vice-president sales

Henry of Pelham Family Estate Winery

“Local is a hot trend. At least 40% of a convenience store’s shelves should have Ontario grown wine. The only way to be sure is to look for the VQA logo, or terms like ‘Ontario’ or ‘Niagara Peninsula’ on the label. Sustainability is also trending. Ontario wineries are leading in this space.”

Stock tips  Choose VQA Ontario wineries, like Henry of Pelham (also makers of the popular Family Tree and House Wine Co. brands). Speck says c-stores should stock top-selling Ontario grape varieties, like Pinot Grigio, Chardonnay, Sauvignon Blanc and Riesling for whites and reds, such as Baco Noir, Cabernet-Merlot and Pinot Noir.

Buying insights  Speck says his winery is learning what customers want and will buy at convenience stores in real time. “What we are seeing initially is that brand matters a lot and there’s room for higher price points, probably up to about $20. And that means better margins for stores.” Sparkling wine is a must stock, with Speck noting that 40% of sales happen in the last two months of the year.

What’s new   Henry of Pelham Sparkling Wine is ideal for holiday toasts or for mixing in an Aperol Spritz. Put this sparkling wine, or another top pick like Cuvée Catharine Rosé Brut, with the components of popular cocktails together on a shelf, Speck suggests. Place near soda water (for Aperol Spritz) or orange juice for Mimosas. 

Trend watch   VQA Ontario red wines are hot, especially Baco Noir. Sparkling wine is also having a moment as a mixer in cocktails.

Peter Zielinski 

Ontario sales manager

Andrew Peller Winery

“There is a lot of experimentation across brands in the wine category. We see this through sales in other retail channels. However, when in a grab & go situation, like convenience, it is good to have trusted brands on your shelf that speak to quality.”

Stock tips  Zielinski suggests stocking Ontario Sauvignon Blanc, Chardonnay, or Riesling. “Ontario wineries produce terrific wines from each of these grapes and they complement both turkey and fish.” Top picks: Wayne Gretzky Riesling and Peller Estates Chardonnay.         

Savvy promotion  Make wines easy to find and communicate offers clearly. C-stores could use signage like, “Goes well with turkey” to help consumers with pairing decisions. Suppliers can lend support by providing wine knowledge, pairing recommendations and training staff. 

What’s new  This year, Andrew Peller features its Honest Lot wines that have zero grams of sugar per serving. Zielinski says they’re “practically flying off the shelves.”

Buying insights   “Through some early sales results, we’ve found customers choosing wine based on price, package format and occasion,” he says. “It’s important to have products that meet those needs, as is having value-priced products, especially for customers making impulse purchases.”