Different Strokes for Different Folks: Diverging Grocery Growth Drivers Across Retailers

Different Strokes for Different Folks: Diverging Grocery Growth Drivers Across Retailers

Not all New Zealand shoppers are the same, and neither is their purchasing at supermarket banners – an important distinction for suppliers when supporting retailer category strategies. Finding out where growth is being driven (or declining) from can vary considerably by retailer and understanding the differences can help improve your category’s performance.

Taking the craft beer boom as an example, we see how market dynamics differ by retailer by pairing retail level data with market context.

It’s no secret that Kiwis have a penchant for a pint, with 2 million New Zealanders drinking beer. The Craft beer category continues to post double digit growth worth $16.7M (+22%), but what’s driving this growth

Almost half of the growth of Craft beer is incremental to the beer category; significant organic growth. The other half pulls primarily from the Premium and Mainstream beer segments.

Both Foodstuffs and Progressive have a hand in driving Craft beer growth but they are achieving it in very different ways.  Foodstuffs has been successful in converting existing Craft Beer buyers to purchase in their stores.  On the other end of the spectrum, Progressive’s growth is driven through increased trips from existing buyers.  

If Craft Beer is to sustain organic growth in New Zealand, it will need to attract new households to the segment.  Optimising assortment across the beer category and ranging new product innovations that complement existing Craft offerings are examples of strategies that could help sustain increased sales.  With the availability of customer card data there are prospects to take these insights further, right down to being able to analyse and influence shopper beer purchasing at the item level.

If viewed in isolation, the retailer trends could be misleading but paired with market level insight they can shape strategies that can help retailers sustain and capitalise on the Craft beer growth trends for years to come.