Consumers have rediscovered single-serve beverages. Shoppers are demanding more variety, more premium products, and stores are delivering with more dynamic assortments than ever before. Perfect for on-the-go & away-from-home occasions, these profit-friendly packages check all the boxes for today’s busy shoppers. Today, the cooler is in flux – domestic beer staples mingle with imported brands, craft IPAs, FMBs, and even premixed cocktails – and premium, flavored products are showing strong growth. The “fourth category” set of beverages (which includes RTDs like hard seltzers, FMBs, wine coolers, and canned cocktails) that’s grown fast in recent years has done so despite the fact that these products are priced about 28% higher per equivalized case than all other beverage alcohol. Amid so much change, there is a clear king when it comes to packaging: the 19.2 or 24-ounce single-serve can. Designed for portability and a single occasion, these cans meet what shoppers demand: instant gratification. “The single-serve consumer’s number one priority is convenience. They want to grab their favorite drink and keep on moving,” says Jenny Odom, Vice President of National Accounts, Convenience, for Constellation Brands. Constellation’s portfolio of Mexican imports, including Modelo, Pacifico, and Corona, are consistently leaders. “Single-serve cans are a key driver in the success of the beer division’s portfolio.”
Sampling Opportunity
Single-serve cans boast a higher price tag per ounce than larger packaging sizes while still delivering value for the shopper. This is the magic of single-serve cans: They deliver more dollars per ounce for the retailer, but consumers still view them as affordable indulgences and an inexpensive way to test a new brand or flavor. This has also proven true for Constellation Brands, where the Modelo Chelada family in particular has been a recent star. The single-serve package allows shoppers to take a chance on a new flavor, such as Naranja Picosa or Limón y Sal, at an affordable price point. “As we have introduced new flavor profiles within this lineup, the single-serve package supports new trial opportunities and is a great entry point to become a brand fan,” Odom says.
From Trial to Trust
While single-serves are a low-risk package for shoppers looking to try a new beverage, they can quickly become part of shoppers’ daily routines. The “after-work beer” is an occasion where shoppers frequently turn to stores.
Brands that create loyal fans in the convenience channel have the opportunity to become part of their routine multiple times per week. Notably, NRS data shows that singles aren’t always purchased as singles. In a 15-day period ending in mid-February, 45% of single-serve transactions actually included two or more cans. NRS Vice President of Data Sales and Client Success Brandon Thurber attributes this to 2-for-$5 and 2-for-$6 deals typically offered for certain brands. With nearly half of shoppers in those stores purchasing more than one single-serve can at a time, these are repeat customers whose two-can purchases can represent significant sales for brands. At a time when beer shoppers have more options than ever, locking in these loyal fans is critical to building sales and brand affinity. “Many of our brands have single-serve can formats and we see consumers reaching for them over and over, so this option continues to grow for us,” Odom says. “Single-serve cans continue to play a major role in the Constellation Brands Beer portfolio growth story.”
Single serves – it’s not only about selling, it’s about putting the right brands in the right packages at the right price to drive trial – and crafting long-term loyalty.
About the Author
You may know her as the director of the North American Guild of Beer Writers, but Kate Bernot wears many hats. The work of this celebrated journalist and BJCP Certified Beer Judge routinely appears in The New York Times, Washington Post and the online publication Good Beer Hunting – to name a few. Ms. Bernot resides in Missoula, Montana where she enjoys the great outdoors and a good pint of beer made by the area’s skilled local brewers.
About Kramer Beverage
Kramer Beverage is South Jersey’s largest beer wholesaler and is owned and operated by the Kramer family – through four generations – since 1924. Kramer Beverage is based out of Hammonton and serves an eight-county footprint in South Jersey with top brands from Molson Coors, Constellation, Yuengling, Boston Beer, Heineken USA, Pabst, Diageo, FIFCO, and others. Kramer Beverage also distributes wine, spirits, and a variety of craft beers from suppliers such as New Belgium and Sierra Nevada to local favorites, including Cape May Brewing, Flying Fish, MudHen, Double Nickel, Evil Genius, and Glasstown. For more information on Kramer Beverage, please visit www.kramerbev.com.