Fun, not function, key to beverage sales

A recent report by OC&C Strategy Consultants highlights the need for beverage retailers to reintroduce a sense of "fun" into the shopping experience to revitalize the market and boost sales. According to the study, the beverage sector has adopted an overly functional approach, reducing its appeal to consumers.

Luke Sparke-Rogstad, an associate partner at OC&C specializing in retail and leisure, noted that brands incorporating elements of discovery and excitement into their strategies are better positioned to capture attention, particularly among younger generations. The report identifies Gen Z as a driving force in this shift, showing twice as much interest in fun shopping experiences compared to baby boomers.

The analysis warns that the lack of entertainment in shopping experiences leaves retailers vulnerable to competition from other areas where consumers choose to spend, such as leisure activities. However, it also notes that easing inflation is beginning to show positive signs in consumer behavior, offering opportunities for innovative sales strategies.

The report suggests that retailers can reengage buyers by integrating experiences such as gamification into shopping, offering advanced personalization, and expanding their product range with more original options. One example is the e-commerce platform Underground Cellar, which introduced a gamified element to wine sales in 2021. Customers adding six bottles priced at $30 each to their cart could roll a die for a chance to have some of their selections upgraded to higher-value bottles, such as $50 wines or more, at no additional cost. This approach has proven effective for both consumers and wine producers.

Another innovative example comes from Japan, where electronics company Onkyo used the soundtrack of the video game NieR: Automata to age two wines, creating a unique connection between the worlds of wine and gaming. Additionally, niche media outlets have explored pairing wines with video games, such as rosé wines with Fortnite.

These strategies illustrate how creativity and technology can attract new consumers and foster loyalty among existing ones. However, the report emphasizes that such a transformation must encompass both physical store experiences and digital platforms to meet the expectations of the international market.