Shopper Confusion Hurting Sales in Beyond Beer Category

STATE COLLEGE, Pa. — Ready-to-drink (RTD) and beyond beer products are a huge missed opportunity in the convenience store industry, as only 29 percent of c-store shoppers who engage with these items purchase them and 71 percent walk away, according to research conducted by VideoMining. 

VideoMining's RTD/Beyond Beer MegaStudy analyzed four billion shoppers in c-stores and grocery stores and found that overall, this category accounts for 22 percent of total alcoholic beverage sales in the convenience channel. 

The study concluded that a main reason for the low conversion rate in the RTD/beyond beer category is shopper confusion. Shoppers spent much more time going back and forth between different products, resulting in weak "shoppability" scores compared to other in-store categories, such as traditional alcoholic beverages.

"In fact, shoppers spent 67 percent more time navigating to find a product compared to traditional beer, even though beer has a much larger shelf space," the MegaStudy revealed. "Clearly, shopper confusion in conjunction with high walkaway rate implies a dire need for course correction. Some of the opportunities include pulling together multiple product segments into a better organized and separated section in the alcohol beverage aisle, better signage and product information."

The research also highlighted that product innovation in the RTD/beyond beer category is so rapid, particularly in hard seltzers and RTD cocktails, that is critical to provide guidance to retailers to minimize shopper confusion. "Otherwise, additional products will only exacerbate shopper confusion, resulting in suboptimal returns for product innovations," VideoMining explained.

Secondary displays can help, but only if they are placed in the correct location in the store.

"Given the significant investments involved in executing displays, it is important to use a data-driven approach to get it right and maximize return on investment, while also encouraging more shoppers to try new products," the company stated.

In terms of whom to target, there are 3.5 times more women who buy RTD/beyond beer products in c-stores than men. Additionally, Generation Z and millennials make up two-thirds of the shoppers in this category.

State College-based VideoMining helps retailers and consumer packaged goods companies optimize retail performance and experience by decoding in-store behavior.