Datamonitor research shows that, in 2003, 73% of wine and 55% of beer consumed was outside of licensed premises and, as smoking bans in bars and public houses become more widespread across Europe, the allure of at-home drinking occasions is set to become all the more tempting.
Shifting geography
The geography of beer and wine consumption patterns is also changing. Traditional wine-producing regions have witnessed a rise in off-trade beer consumption, as much as 3.1% in the case of Spain between 2002 and 2003. Meanwhile, markets in Scandinavia and parts of northern Europe are beginning to embrace the versatility of wine when entertaining or relaxing at home.
The sale of alcohol on the forecourt has the potential to dramatically increase the average basket spend. Furthermore, careful recommendations for complementary food products alongside price and product promotions can deem the sale of certain alcohols in certain markets extremely lucrative.
European growth in the volume of alcohol consumption per capita to 2009 is forecast to reach 0.2% annually. While this is marginal by all accounts, large differences between European countries exist. In France for example, the volume of alcohol consumption per capita to 2009 is forecast to decline at 1% annually, while in Spain this is forecast to increase by 5% each year.
However, while the opportunity is apparent, legislation also varies by country. In Denmark, alcohol cannot be sold on a Sunday or after 8pm, whereas in France, forecourt retailers are only allowed to sell beer. Although no blanket ban exists in the UK, the license application is lengthy and costly and relies heavily on the applicant proving the existence of customer demand. However, despite these restrictions, the number of licensed forecourts is increasing and, in markets such as Italy, even wine-tasting has made an appearance on the forecourt within legal bounds.
Beer and wine trade places
Forecourt retailers must tailor their offerings on a market-by-market basis or else risk neglecting a major trend in drinking habits. The market for drinking outside of licensed premises is growing, but consumption habits are not pan-European. While Mediterranean markets - particularly Iberia - are experiencing a shift in beer consumption patterns towards at-home drinking, the converse is true of northern European and Scandinavian regions. In Portugal, where wine is associated with family gatherings, younger generations are eager to differentiate themselves and so, despite being a wine-producing nation, there has been a 2.2% increase in beer drunk at home between 2002 and 2003. Even France, the Bacchus of Europe, saw a slight decrease in the volume of wine consumed at home in favor of beer.
In the Netherlands, drinking wine at home increased by 0.4% between 2002 and 2003, while Finland saw a 0.2% increase over the same period. In the Netherlands, Norway and Finland, at-home wine consumption is rising as consumers in these markets become more accustomed to fine-dining in the domestic arena, a trend fuelled by the expensive cost but often low quality of wine available in licensed premises.
Despite its reputation as a nation of beer-lovers, the largest decline in beer consumption was in Germany. A cocktail of high prices, a long-standing recession and an increasingly health-conscious mentality saw mineral water out-perform the beer market in Germany in 2004. The German mineral water federation, VDM, reported that 123 liters were consumed per person in 2004, compared to 117 liters of beer.
The power of persuasion
Customers are often open to suggestion. Forecourt retailers can more than treble the average basket spend of a forecourt shopper by encouraging consumers to purchase one product in conjunction with another complementary item. The percentage of adults who drank alcohol in the past year with a meal at home increased from 54% in 2002 to 64% in 2004; a sign that the move towards fine-dining at home is rapidly gaining recruits. In-store recommendations of food items with specific alcoholic beverages are also the perfect antidote to apprehensions raised concerning drink-driving as a result of forecourt alcohol sales.
On the forecourt, where the male motorist dominates, beer remains a bestseller and, in some markets, such as France, beer is the only alcoholic beverage sold by petrol stations. Despite the growing popularity of wine in certain regions, beer remains the most popular choice across Europe with a 0.3% rise in beer consumption outside licensed premises between 2002 and 2003.
Furthermore, the comfort of the home when drinking is an attraction for the majority, with recent research finding that 70% of US consumers would like to drink draught beer in their own abode. To maximize the potential of this long-standing beverage, forecourt retailers should prioritize stocking the top brands of beer - a range that will depend on the size of the forecourt store - in a variety of single and multiple options.
