October 8, 2019 by Raj B. Shroff
I really hate missed opportunities. One area in retail that comes to mind as a missed opportunity for me is Beverage. You know, coconut water, sparkling water, sparkling tea, regular tea, cold brews, energy drinks and on and on. Beverage is a category long overdue for an overhaul in stores. It is exciting, there are plenty of choices and consumption is attached to some of our best sensations throughout the day. However, retailers treat it like it’s a snoozer.
The transition of basic household items like laundry detergent, paper towels, toilet paper and other regime products from being purchased in store to online is causing (or will soon cause) space allocated to them to shrink.
Retailers should fill some of this freed up space with, you got it… beverages. Retailers have long made areas like meats, cheeses and fresh foods experiential destinations for shoppers to sample and learn about new products. Definitely because they are purchased more frequently but also because there is more emotion associated to their consumption occasions. Beverages are just as associated with emotion and positive sensations we have throughout the day.
Can you envision an experiential beverage section…No? Let me give it a try. Think of your local brewery; no matter where you are, you likely have more than one in your neighborhood. You can walk in and try from a range of different samples, each time you visit, there are seemingly new options to try. Or think of your local ice cream shop where you can try a dozen samples before choosing what’s right for you that visit.
Now imagine creating an experiential area where shoppers can engage with new and different beverages in fun ways. Just think of the possibilities.
You could even take it one step further, imagine getting really creative and integrated beverages into other experiential sections of the store and getting people to engage with the myriad of options available to quench your thirst, start your morning or give you an afternoon pick up. Maybe you look at ways to pair beverages with food or bring beverages to new occasions. This would ultimately lead to wider category exploration, new product adoptions and new consumption rituals, over time growing basket.
It feels like this would be a big step away from the traditional boring aisle of beverages with little to no signage and no reason to engage. As retailers look to differentiate themselves further and find items and categories they can build experiences around, it sure feels like beverages are being overlooked. BTW this is starting to make me thirsty.
Thanks for reading. If you want to discuss, debate or share, email me