LMG benefits from premiumisation & online channels

October 14, 2021
By Ioni Doherty

Liquor Marketing Group have reported a shift towards premiumisation with Champagne sales up by a huge 55.4 per cent and wine priced at $16 or more growing at 17.4 per cent.

National Merchandise Manager, Matthew McEvoy says that this trend is also playing out in its premium spirits and Craft Beer categories and the group is seeing declines in sales of their value wines and casks.

“Over the past 12 months, LMG has seen a very clear consumer shift toward more premium wine options and we expect this trend to grow as the lockdowns across the country continue.

“The growth rate for wine priced $16 and above is more than twice that of the total wine category. Shiraz is the key driver of growth, however we continue to see strong performance in lighter varietals including Pinot Noir, Pinot Gris, Prosecco, Grenache and Tempranillo,” said Mr McEvoy (pictured right)

The trends are echoed by Peter Neilson – Managing Director, Treasury Premium Brands (TWE) who said, “Consumers in lockdown are also looking to treat themselves by purchasing more premium wines as well as trying new varietals – for example, across the wine category we’ve seen growth across lighter style reds and refreshing varietals, as seen in the in the growth across Squealing Pig wines including Tempranillo (up 6.8%), Sparkling Rosé (up 42.9%) and Prosecco (up 54.3%).”*

19 Crimes Cali Red launched in LMG stores in May this year and the Snoop Dog ‘varietal’ has contributed to TWE’s overall brand growth in the stores, up by 28.8 per cent when compared to the same time last year. LMG is one of the fastest growing retailers for 19 Crimes.**

Mr Neilson (pictured below) said, Off the back of its success in the US, we launched 19 Crimes ‘Snoop Dogg’ Cali Red here in Australia which uses Augmented Reality, giving consumers a first hand experience with Snoop Dogg himself via a ‘talking’ label.

“This wine is now the number one contributor to growth in LMG’s Bottlemart, SipnSave and Harry Brown stores across the country; with the total brand sales up more than 40% compared to a year ago. We’re also seeing beer drinkers moving into the wine category in these stores through the appeal of 19 Crimes and entertainment icon Snoop Dogg.”

Online growth has also been a massive area of development for LMG with online sales trebling thanks to lockdown and in-store activity driving shoppers to online channels. This has proved effective with 62 per cent more shoppers visiting the stores’ online platforms throughout the year.

“Our retail stores are heavily supported with strong digital marketing programs, interactive catalogues and locally-targeted social media advertising. The ability to send offers tailored to individual shopper preferences has encouraged both awareness and conversion and has driven greater sales results for our stores,” said Mr McEvoy. 

  • * Source: IRi Market Edge Australian Liquor Weighted, MAT to 27/06/21. 
  • **Source: IRI MarketEdge Unweighted Data to:  06/06/21; BMT & SNS incl Express Like-for-Like NATIONAL June 2021  

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