Showing posts with label liquor wine beer categories. Show all posts
Showing posts with label liquor wine beer categories. Show all posts

Monday, October 31, 2011

Fresh & Easy Neighborhood Market to Offer Alcohol Beverage Tastings in Some of its California Stores



Breaking Buzz

Fresh & Easy Neighborhood Market has applied for a license to hold wine and beer tastings at its store in the Willow Glen shopping center at Bird Avenue and Minnesota in San Jose, California. San Jose, which is the largest city in Northern California with over 1 million residents, is located in the South Bay Area region.

The photograph at top, taken today by a Fresh & Easy Buzz correspondent, shows the alcohol beverage tasting application sign on the front window of the store. The application is for a tasting license, as is noted on the second subject line. The store already offers alcoholic beverages for sale. You can click on the photo at top to enlarge it.

Employees of the store tell us the Willow-Glen neighborhood Fresh & Easy store plans to start holding tasting events as soon as the license application is approved by the California Alcohol Beverage Control Department.

Additionally, we've learned via our reporting that Fresh & Easy Neighborhood Market  plans to apply for alcohol beverage tasting licenses for some of its other 134 stores in California.

United Kingdom-based Tesco, which is the third-largest retailer in the world after number two Carrefour of France and U.S.-based Walmart Stores, Inc., currently operates 183 Fresh & Easy grocery markets in the Western U.S. The other 49 Fresh & Easy stores are in Arizona (28 units) and Nevada (21 stores).

Fresh & Easy Neighborhood Market hasn't publicly announced its plans to begin holding alcohol beverage tastings at its Willow Glen-San Jose store, or at any of its other grocery markets in California, or elsewhere.

New California law

Last year the California State Legislature passed a legislative bill (AB 605) that then-Governor Schwarzenegger signed  into law which loosed the restrictions on how alcohol beverage tastings are required to be conducted in retail stores in the Golden State.

The new law, which went into effect January 1, 2011, allows supermarkets, mass merchandisers and large liquor stores to host free wine, beer and distilled spirits tastings as long as the area where the tastings are conducted are separated out from the rest of the store by a temporary barrier of some sort, such as a rope, fence or chain.

Previously retailers were required to dedicate a permanent section of the store for the alcohol beverage tastings if they wanted to hold such events.

One retailer that's had such dedicated areas in its stores for a number of years is Northern California-based Beverages & More (BevMo), which is a category-killer format, specializing in the wine, beer and spirits categories, along with specialty foods.

However, besides BevMo, few grocers with stores in California have created such dedicated spaces in their stores in order to hold the tasting events.

Whole Foods Market and West Sacramento-based Raley's Supermarkets have in-store restaurants and cafe's in many of their respective stores in California. As a result, a number of the two chains' stores hold alcoholic beverage tastings in the restaurant/cafes, which not only qualified as a dedicated area under the old law but is a natural place to hold tastings because there's seating and food available.

For example, the Raley's store at 255 South Tracy Boulevard in Tracy, California holds alcoholic beverage tasting events in the store's restaurant/cafe every Wednesday from 5:30-7:30 p.m. Think happy hour. Tracy is in California's Northern Central Valley, about an hour's drive from San Francisco.

The restaurant and cafe, which is attached to but separate from the store's deli department, features prepared food and drink items in an eat-in area that has a seating bar, a lounging and eating area with tables and chairs and a big screen television set.


Pictured above and below: A recent wine tasting event at the Raley's superstore in Tracy, California. The photos were taken by a Fresh & Easy Buzz correspondent who attended the event, which also featured a full-spread of food, which you can see in the photo above.


Under the new law Raley's and Whole Foods Market, like all other grocers, can now hold the tastings elsewhere in the stores if they choose. But in those stores with dining and drinking-in areas - Whole Foods' has numerous stores in California, for example, that have either in-store wine or beer bars (and often both) where the drinks are available for sale by the glass - it makes good sense for a variety of reasons to do the tasting events in them.

Most of these Whole Foods' stores in California that have such in store features, which are attached to in store restaurants or food bars, hold alcoholic beverage tastings.

For example, the patio wine bar at Whole Foods' store in San Francisco's Potrero Hill District, where the grocer holds regular tastings, has become a neighborhood hangout and a third place, where people eat - food is available in the attached in-store restaurant - drink wine and catch up on what's happening with each other and in their neighborhood. Home and the workplace are the first and second places for most of us.

But most grocers in California haven't set up the dedicated spaces because square-footage is an extremely valuable commodity in a supermarket. Therefore it's difficult for a grocer to justify setting aside even 500 square-feet to be used only for alcoholic beverage tastings, particularly when that space can be used as merchandising space to produce sales on a daily basis.

The new law that went into effect in January of this year has opened the door for grocers to offer the tastings because they need only to temporarily rope off a section of the store, say in the beer, wine and spirits department, when they hold a tasting, rather then permanently dedicate valuable square-footage for the events, as was required under the old law.


Grocer interest growing

Not much application activity took place during the first few months of this year following the new law's taking effect. However its been picking up considerably over the last few months, according to a spokesperson for the state Alcohol Beverage Control Department.

We've also discovered a spate of recent activity among grocers in our reporting. For example, a number of Whole Foods' stores in Southern and Northern California have started conducting tastings, under the provisions of the new law, over the last few months, as have some stores operated by Southern California-based upscale grocer Bristol Farms.

Also in Southern California, Albertsons, which is owned by Supervalu, Inc., has applied for tasting licenses for some of its 200-plus stores in the region.

Mollie Stone's begins tastings

In Northern California, Mill Valley, California-based Mollie Stone's Markets, which operates nine stores in the San Francisco Bay Area, began its first alcohol beverage tastings - after recently receiving licenses at the stores - at six of its nine stores - three units in San Francisco and the stores in Burlingame and Greenbrae - on Friday, October 28.

Friday's Halloween-themed tasting, which was held from 3-6 p.m at the six supermarkets, featured Hornsby Hard Cider.

A spokesperson for Mollie Stone's told us the grocer is waiting to receive its tasting licenses for the other three stores, which are in San Bruno, San Mateo and Palo Alto, and that once it receives them from the state it plans to hold tasting events at those stores as well.

Mollie Stones has a number of  upcoming tastings planned. Some of the adult beverages a spokesperson for the grocer tells us will be sampled include wines from Ghost Pines, Edna Valley, Frei Brothers, Barefoot Bubbly, Red Rock and Dancing Bull. The grocer is also planning some upcoming spirits tastings, including having a mixologist create cocktails using Ketel One Vodka and Limoncello di Sonoma. Limocello is a popular Italian distilled spirit that's been catching on in the U.S. over the last few years.

The new supermarket tasting law is particularly advantages for grocers that operate small-format stores, like Tesco does with its Fresh & Easy Neighborhood Market chain. The Fresh & Easy stores average about 10,000 square-feet of selling space.

Were it not for the loosening of the regulations under AB 605, a small-store chain like Tesco's Fresh & Easy would be extremely hard-pressed to even justify dedicating a couple hundred square-feet for the tastings on a permanent basis. It needs every square-foot it can get for merchandise.

More on the new law

The new law is also particularly advantageous for upscale and foodie- format-oriented food retailers, like Whole Foods, Bristol Farms and Mollie Stone's, for example, that do a lot of specialty and gourmet food sampling in-store. Now, for example, under the new alcohol beverage tasting law in California the grocers can offer wine and food pairing-type demonstrations, as long as the sampling takes place in the temporarily designated area required by the law.

The law has a number of requirements that retailers must follow in order to hold the alcohol beverage tastings in-store.

In order to qualify for the tasting license, retailers must already have an off-sale beer and wine permit, to do beer and wine tastings, and an alcohol beverage license, if they also want to conduct spirits tastings.

Then retailers must apply for and be granted a license from the state Alcohol Beverage Control Board, like Fresh & Easy is doing for the store in San Jose.

Retailers must pay a $300 application fee and $261 annual renewal fee for a state license to hold the tastings, which can only be conducted by alcohol beverage manufacturers or wholesalers. Significantly, store employees are prohibited from conducting the tastings, as are any other employees of the retailer holding the event.

Of additional significance, cities and counties have the right to restrict the alcohol beverage tasting events under the state law. That means retailers must follow any and all local regulations that may be in place in addition to the state law.

There are also a number of restrictions on how the tastings can be conducted in-store.

For example, participants must be 21-years-old or older, and it's the retailer's responsibility to verify that they're of legal age, even though the alcohol beverage manufacturer or distributor is conducting the tasting.

Only one type of alcoholic beverage can be offered per tasting event - either beer, wine or distilled spirits. But there can be no multiple combinations. Tequila shot with beer-chaser tastings are prohibited, for example.

The alcoholic beverages sampled at the events must be given free to the participants.

The free tastings cannot occur before 10 a.m. or after 9 p.m.The manufacturer or distributor representatives conducting the tastings are allowed by law to serve a person no more than 8 ounces of free beer in a day, which is 4 ounces less than a standard 12-ounce can; and up to three samplings of wine or distilled spirits, at maximums of 1 ounce and a quarter-ounce per sampling, respectively.

If tasters ask more alcohol they the law allows to be offered at the tastings the manufacturer or distributor conducting the tasting is instructed to explain the legal limits to them. If they persist, the retailer can ask them to leave the event and the store.

Fresh & Easy

Fresh & Easy Neighborhood Market sells beer and wine in all but two of its stores in California. The grocer offers distilled spirits (hard liquor) in a number of its stores in California but not in the majority of the 134 units.

The Fresh & Easy store in San Jose's Willow Glen neighborhood has been one of the grocery chain's top-three sales performing stores, out of the 15 units opened so far this year in Northern California, since it opened on March 2, according to our sources.

The store, along with the unit in Danville, were the first two Fresh & Easy stores Tesco opened in Northern California.

The wine category is a major focus for Tesco with the Fresh & Easy stores; more so than beer or distilled spirits. Therefore, it's our analysis that wine tastings will comprise the majority of alcohol beverage testing events held at the store on Bird Avenue in San Jose, although not exclusively, as we expect some beer tasting to go on as well.

Friday, June 17, 2011

The Wisdom of the Crowd: Fresh & Easy Neighborhood Market's Wines Won 39 Medals in the L.A. International Wine Competition; Will it Motivate Your Purchase?


Fresh & Easy Neighborhood Market's marketing and public relations people announced via a press release today that the 175-store fresh food and grocery chain has won 39 medals at the 72nd annual Los Angeles International Wine & Spirits Competition for a variety of its proprietary brand wines.

The annual wine and spirits competition is part of the Los Angeles County Fair, which takes place September 3-October 2 this year. An olive oil tasting and judging is also conducted in conjunction with the annual wine competition.

The wine competition judging took place in May. The competition's officials announced the winners June 7.

Among the wines Fresh & Easy won medals for (18 out of the 39 medals) were its new line of proprietary or private brand California wines, which we wrote about in this March 8, 2011 story: Tesco's Fresh & Easy ♥'s California With 27 New Varieties of Proprietary Brand Wines From the Golden State. The new California wines were introduced in the stores in March.

You can see which Fresh & Easy wine brands and varieties won medals here, along with viewing all of the award-winning wine brands and varieties from others. The competition also has a Facebook page here.

El Segundo, California-based Fresh & Easy Neighborhood Market is one of just a few food and grocery retailers that enter its private or proprietary brand wines in this and other competitions.

The pioneering grocer in doing so is another Southern California-based chain - Trader Joe's - which has been entering its various private brand wines in the Los Angeles and other competitions, often winning first place in on or more varietal categories, for many years.

It's important to note, however, that not many U.S. grocery and mass merchandise chains offer a moderate-to-extensive assortment of private brand wines (many have a value brand though), although that's beginning to change. As such, there's not much in the way of proprietary brand wine for the majority of grocers to enter in these competitions at present, even if they wanted to.


Tesco-owned Fresh & Easy followed Trader Joe's lead in entering various wine competitions, starting in 2007, and has to date won 275 medals overall.

Fresh & Easy Neighborhood Market also promotes wine regularly in its 175 stores in California, Nevada and Arizona and attempts to use the category, particularly its private brand wines, as a leader in terms of hoping it is a lure to bring shoppers into its stores.

We've written extensively about the wine category at Tesco's Fresh & Easy (and other grocers), including its participation in various wine competitions, along with merchandising, marketing and promotional aspects.

[You can read our stories by clicking on the following links: , , , , , , , , , , , , , , , , , .]

As we noted earlier, the majority of U.S. food retailers don't offer much in the way of private brand wines.

Trader Joe's and Fresh & Easy have the most extensive proprietary wine programs we're aware of among U.S. grocers and mass merchandise chains, although as noted numerous big chains like Costco, Walmart and even regional grocers like Save Mart Supermarkets in California offer a value-based (think Trader Joe's Two Buck Chuck) proprietary brand wine. Fresh & Easy's value brand is called the .

Fresh  Easy's parent, United Kingdom-based Tesco, has long had a proprietary brand wine program in operation and offers numerous own brand varieties in its stores in the UK particularly, but also at its stores elsewhere in Europe and in Asia.

What interests us about these wine competitions as they pertain to grocers like Fresh & Easy Neighborhood Market, Trader Joe's and others, is if winning medals at the events has any influence on shopper purchases of the winning wines in the stores.

This question is important because the primary reason wine-makers and marketers enter their wines in competitions is to sell more of it. Secondarily is the prestige of winning - or what some folks (not us of course)  might even call the "snob appeal factor."

The Wisdom of the Crowd: Reader Questions

Since Fresh & Easy Buzz has some of the smartest and most-inquisitive readers on the planet, we thought we would put the question to you.

So here's the question: Does a wine brand/variety winning a medal (Gold, Silver, Bronze and the like) at a well-known wine competition influence your decision to purchase it?

Further, will you be motivated to try and buy any of the 39 Fresh & Easy proprietary brand wines - there will be signs on the wines at the shelf in the stores designating them as "medal winners" and you can see the various wines from Fresh & Easy that won here - because a given wine won a medal at the Los Angeles International Wine Competition?

Share your response and opinion with your fellow readers using  the "comments" link below. Just click it and tell us what you think.

Tuesday, March 8, 2011

Tesco's Fresh & Easy ♥'s California With 27 New Varieties of Proprietary Brand Wines From the Golden State

Wine Category Merchandising & More
News/Analysis/Commentary

In a series of stories over the last few months, we've reported in detail and offered analysis about why Tesco is banking on California with its Fresh & Easy Neighborhood Market, not only for most of its new store growth this year but also as the place it hopes that growth will translate into break-even and eventually turn at least a slim profit for its money-losing Fresh & Easy chain of 166 small-format food and grocery stores.

[See the following stories, for example, to learn more about Tesco's banking on California with Fresh & Easy. January 14, 2001: Tesco 'Banking' on California in 2011 For Fresh & Easy Neighborhood Market USA; and January 11, 2011: A 'New York State of Mind': 'The Insider' On Walmart, Apollo Global Management, Tesco's Fresh & Easy and the NRF in New York City. Also see - January 23, 2011: Tesco's Fresh & Easy Neighborhood Market Looking For Locations For New, Smaller-Format 4,000-to-5,000 Square-Foot Stores; and February 16, 2011: Fresh & Easy Neighborhood Market Celebrates Three-Store Opening Trifecta Today in Southern California.]

Tesco's Fresh & Easy Neighborhood Market is signaling its focus and commitment to California, along with in a symbolic way confirming our reporting, this week by its introduction this week of 27 varieties of California wines under seven proprietary or private brands.

The seven private brands of California wines are: " I ♥ CA," "Wink," "Pacific Coast Highway," "Cloud Valley," "WineWrights," Barrel Ranch" and "Open Field."

All of the new wines, a mix of reds, whites and blends, come from noted California grape-growing and wine-making regions such as Napa, Monterey and Santa Barbara. You can view a list of all 27 varieties with tasting notes here.

The "Cloud Valley," Barrel Ranch," and "Open Field" brands were developed for Fresh & Easy by Terravant Wine Company, which is located in the Santa Barbara area, which is where the grapes for the red and white wine varieties under the three proprietary brands originate from, according to Richard Wherry, a wine buyer at Fresh & Easy Neighborhood Market.

The new private brand wines are hitting the shelves of all 166 Fresh & Easy stores this week and, according to our sources, some of the 27 varieties will appear tomorrow in Fresh & Easy Neighborhood market's advertising circular at promotional prices.

Tesco's Fresh & Easy is using as one of its promotional tag-line's for the new California wines: "Wine as golden as the state it's from," a clear local appeal since a whopping 117 of its 166 stores are in the Golden State, as are all of the new stores (11 units) opened so far this year, along with all the new Fresh & Easy markets - nine new stores in Northern California and one unit in Southern California - set to open in March and April. There are 28 Fresh & Easy stores in metro Phoenix, Arizona and 21 units in metro Las Vegas, Nevada.

Also look for the slogan..."We wish they all could be California wines" in advertisements and in-store signage.

As we've noted in past stories in Fresh & Easy Buzz, in our analysis the wine category is one of Fresh & Easy Neighborhood Market's strongest in terms of product selection and merchandising. As we've also noted in past stories, it's been our analysis that one of the weak aspects of the wine category at Fresh & Easy has been a shortage of proprietary brands and varieties of California wines, particularly since the Tesco-owned chain is based in California and as noted above has all but 49 of its 166 fresh food and grocery markets in the Golden State.

The addition of the 27 new California wines under the various private brands goes a long way to improving this weakness, in our analysis. We also like a number of the brand names, as they speak to various aspects of the state of California and its wine-growing regions, represented by the various varieties.

And, as for the " I ♥ CA brand," it has a double meaning, in that not only is it a proprietary wine brand for California-based Fresh & Easy Neighborhood Market, it's also a pretty could expression of where Tesco is putting its fortunes with its Fresh & Easy chain - which is in the Golden State. Doing so warrants a whole lotta' love.

Sidebar - Synergy Time: The World ♥'s California Wine

Tesco would be smart to look into exporting its new California wines to its other divisions throughout the world, particularly to the United Kingdom but also to Asia, where in places like Japan, South Korea and China, all countries where Tesco has stores, wine consumption is growing by double digits.

Why? Tesco needs to create much more synergy between its global operations and its Fresh & Easy outpost in the U.S.

Since Tesco's new (as of March 2) CEO Philip Clarke's previous job was as head of Tesco's European and Asian retail operations, he should see the value of the "California" brand when it comes to merchandising wine, particularly in the emerging Asian markets, but also in Europe.

Selling the 27 new varieties of Fresh & Easy's proprietary California wines in various Tesco global divisions also would be a nice boost for wine category sales volume for the U.S. operation. And the more volume when it comes to private brand food and drink products, the better cost of goods a retailer can get - which translates to higher margins on those items for the retailer.\

Importing the new California wines to various Tesco global retail divisions outside the U.S. would be fairly easy. Containers come and go from the two major ports in Southern California and in Oakland in Northern California on an hourly basis.

Additionally, Fresh & Easy could get some nice street cred in California (political, agricultureal, consumer circles), exporting wines produced in the state to its retail operations in Asia and Europe.

Lastly, exporting the new California wines to other Tesco global outposts would be a good test towards creating better synergy between the mothership in the United Kingdom and its U.S. operations, along with those in other parts of the world. After all, Tesco is the third-largest global retailer, after Walmart and France's Carrefour.

As our 'The Insider' columnist suggested in this column last year - October 8, 2010: 'The Insider' - Incoming Tesco CEO Philip Clarke Needs to 'Imagine' When it Comes to Fresh & Easy Neighborhood Market USA - its' going to take imaginative thinking and strategy, and in our analysis nomore than banking on California, for Clarke and his deputy CEO Tim Mason, who runs Fresh & Easy, to make a success out of Fresh & Easy Neighborhood Market USA.

Readers

Fresh & Easy Buzz has written extensively about the wine category, wine merchandising and retailing at Tesco's Fresh & Easy Neighborhood Market. For a selction of those stories, click on the links here: , , , , and . Use the "older" and "newer" links at the bottom of the linked pages for additional pages/stories.

Wednesday, June 23, 2010

Integrated Retail & Twitter Wine Promotion Rates Fresh & Easy Neighborhood Market A Gold Medal

Wine & Beer Category Report: News/Analysis/Commentary

Tesco's Fresh & Easy Neighborhood Market today launched a full-line-drive, mix and match wine category promotion in its 159 fresh food and grocery stores in California, southern Nevada and Metropolitan Phoenix, Arizona.

In the promotion, which runs from June 23 -to- July 6, 2010, customers get 20% off the total of any six or more bottles of wine they purchase.

Additionally, Fresh & Easy is giving away a reusable cotton wine bag with all single-customer wine purchases of $25 or more.

In and of itself there's nothing particularly unique or special about the promo as grocer wine category promotions go, although we like the free wine bag addition. It adds an additional layer to the promotion, beyond just the 20% price focus.

But Fresh & Easy Neighborhood Market is kicking off the wine promotion with a "Twitter Wine Tasting" this evening, starting at 7 pm pacific time.

This is the grocer's second such "Twitter Wine Tasting," in which participants purchase the wines to be tasted and pondered in the comfort of their homes at a Fresh & Easy store, and then share their questions, comments and evaluations on the various varieties of vino via Twitter.com.

The first such tasting was on February 9 of this year. Read our story about Fresh & Easy's first "Twitter Wine Tasting" - February 8, 2010: 'I Taste Therefore I Tweet': Fresh & Easy Set to Hold 'Twitter (Wine) Tasting' Tomorrow Night.

Tonight's wine tippling tweeters will be tasting three of Fresh & Easy Neighborhood Market's proprietary wines. The three brands-varieties are: Napa Family Vineyards Chardonnay, which retails for under $12; The Vine Yard Late Harvest Riesling, which sells for under $8; and Re del Castello Chianti Classico, which goes for under $10 at Fresh & Easy Neighborhood market stores. Fresh & Easy is featuring two of the varieties, along with a few others, in its "Friends of Fresh & Easy" e-mail promo which it sent out late yesterday. That's what we call "positive, practical, promotional merchandising integration," or PPPMI for short. More on that concept a little later below.

In order to participate in the virtual wine tasting event (virtual on twitter but real at home) people with a Twitter account - those who don't already have one can create one in a couple minutes - simply sign up at Taste Live, send an RSVP here, buy the three wines at a Fresh & Easy store, and then log-in back at Taste Live, at 7 pm tonight.

According to the grocer, Fresh & Easy Neighborhood Market wine category manager Karen Fletcher will be tweeting, answering questions and following the tasters' evaluations at its Twitter.com account - @fresh_and_easy - starting at 7 pm. The tippling tweeters need only to use the Twitter hashtag #FreshEasyWines in order to be able to view the wine tweets of their fellow tasters on Twitter tonight.

Positive, practical, promotional merchandising integration

As regular Fresh & Easy Buzz readers are aware - and non-regular readers of the blog will soon become aware of - we're big advocates of integrated promotions that tie-in what happens on the store floor (merchandising and promotional merchandising) with various forms of media, particularly forms of interactive social media like Twitter, Facebook and the like.

We've been suggesting to Fresh & Easy Neighborhood Market in our strategy session-oriented posts since about mid-2008 that the grocer needs to focus much more on doing integrated promotions across all categories. One of the Fresh & Easy's problems or challenges, in our analysis, has been a failure to integrate; to use multiple platforms, integrating on the store floor merchandising with various forms of media. For example, we liked this recent promotion at Fresh & Easy. But the grocer failed to take it beyond the stores; to integrate it with other media in a meaningful and significant way.

Merchandising and media-related promotions such as the wine promotion-twitter event, which tie-in the stores and the larger consumer world, are something Fresh & Easy needs to do more regularly in order to create excitement, drive sales into the stores, build brand, and create new, much-needed customers.

In terms of the various categories, in our analysis the best merchandising and promotional activity Fresh & Easy has done thus far is in the wine category.

Wine category manager Karen Fletcher has been in her position at Fresh & Easy Neighborhood Market from the very beginning. Therefore we give her the primary credit for this development.
Fresh & Easy's wine and beer category has flipped-flopped between the directors of the grocer's two buying and merchandising departments, fresh and grocery - and not totally against Ms. Fletcher's objection - three times since 2007.

The wine and beer category was originally (and logically) under the grocery department. But it later was moved to the fresh department for internal reasons. Then in the summer of 2008 the category was switched back to grocery, under the supervision of Sean McCurley, who made a lateral move at the time from director of fresh foods to grocery director - and who recently returned to Tesco in the UK - replacing Charlotte Maxwell, who departed Fresh & Easy to return to Tesco in the UK, which she left the employ of shortly after. (Yes, Sean McCurley and Karen Fletcher had a strong working relationship. They both also came to Fresh & Easy from Tesco in the UK.)

Tweet, drink and be merry

While a Twitter-based wine tasting doesn't have the glamour and excitement of a live tasting, say at a Napa Valley winery, it certainly offers some advantages. Among those advantages include: being able to dress comfortably - although we don't want to hear about participants wearing boxer shorts or old sweat pants while wine tasting and tweeting tonight - relaxing on your couch at home with a laptop computer nestled close by or a smart phone in hand, and being able to stock the fridge with one's own choice of foods to cleanse the palate between bottles of wine.

From a marketing and merchandising standpoint for Fresh & Easy the tasting offers the grocer a chance to get people into the stores to purchase the three bottles of wine, and then hopefully buy additional food and grocery items. But much more than that, as we said earlier, it integrates what is happening at retail - the June 23 -to- July 6 wine promotion - with a wider social media-based promotion, thereby helping over time (with repetition and other different integrated promotions added on) to create a story around the wine category at Fresh & Easy Neighborhood Market.

Doing this - integrating what goes happens on the store floor with media promotions and events - and doing it regularly, comprehensively and in a creative yet practical manner (need to sell product as well as create buzz) is what good merchandising and promotions are all about, as in creating and telling a good story, which in many ways is the essence of a potentially successful marketing campaign.

Salute! In 140 characters or less of course.

Readers: Click here to read a selection of past posts in Fresh & Easy Buzz on wine category merchandising and related topics.

Tuesday, March 23, 2010

Fresh & Easy Kicks Off Three Week 'From Grapes to Gold Medals' Wine Promotion Tomorrow


Tesco's Fresh & Easy is launching a big wine promotion in its 147 stores in California, Nevada and Arizona starting tomorrow, March 24. The promotion runs through April 13, 2010.

The theme of the promotion is: "From Grapes to Gold Medals," (see the shelf-talker above)which is in reference to the fact a number of the wines featured in the promotion, including Fresh & Easy's proprietary wines, have won gold, silver or bronze medals at a number of wine judging competitions.

The wines in the Fresh & Easy promotion are sale priced, like the $1.99 bottle Saludas Tempranillo from Spain, pictured at left and described above. Additionally, shoppers get a 10% discount if they buy three or more bottles in a single purchase.

A couple of the other wines to be offered in the promotion tomorrow are: Ogio Prosecco, an effervescent wine from Italy ($6.99 on sale, regularly $8.99) and Small Wonders Chardonnay, from California's Russian River region ($9.99 on sale, regularly $13.99).

Fresh & Easy will be touting the March 24 -to- April 13 wine promotion in all of its stores, as well as in its new advertising circular, which comes out tomorrow.

Today, Fresh & Easy sent out an e-mail to the members of its "Friends of Fresh & Easy" frequent-shopper group offering the members a sneak peak a day in advance of the promotion.

We first wrote over two years ago that the wine category would be and is a major focus for Tesco with Fresh & Easy. This multi-week promotion is another example of the emphasis and focus the grocer it trying to put on its wine selection, particularly its proprietary wines.

[Readers: Click here for a selection of past stories from Fresh & Easy Buzz on Fresh & Easy's wine program, wine category merchandsing, and related topics and issues.]

Monday, February 8, 2010

'I Taste Therefore I Tweet': Fresh & Easy Set to Hold 'Twitter (Wine) Tasting' Tomorrow Night


Tesco's Fresh & Easy Neighborhood Market has teamed up with the online wine tasting community Taste Live, and is holding a virtual wine tasting event tomorrow evening (February 9, 2010) from 7:00 pm -to- 8: 00 pm (Pacific Standard Time).

Fresh & Easy is calling the virtual wine tasting a "Twitter Tasting" because the event will focus on tasters' tweeting their evaluations of the three wines being tasted on the social media site Twitter.com.

Tasters will be sampling three of Fresh & Easy's proprietary wines during the one hour virtual and social media wine tasting tomorrow night.

The three wines are: Montcadi Cava Rose from Spain, which sells for under $6; Boro Hills Sauvignon Blanc (from New Zealand), which sells at Fresh & Easy for about $11; and Matuco Malbec 2007 (Argentina), which retails for under $10.

Tasters can buy one, two or all three of the wines at a local Fresh & Easy market for the tasting. Here's a brief description of each of the wine varieties.

Taste Live often holds these virtual wine tastings in partnership with various wineries like Kunde Family Wines and others.

Here's how the virtual "Twitter Tasting" works:

>Those interested in participating first need to register at Taste Live using their Twitter or Facebook account, or by creating an account at the tastelive.com Web site here.

>Once registered, event participants then need to RSVP their intended participation to Tesco's Fresh & Easy here.

>Tasters then buy one or more of the three wines being tasted during the one hour "Twitter Tasting" at a Fresh & Easy store.

Karen Fletcher, Fresh & Easy Neighborhood Market's category manager for wine, is hosting the "Twitter Tasting" tomorrow night, according to Fresh & Easy.

During the one hour event Fresh & Easy will be tweeting at its @fresh_and_easy account on Twitter.com.

The grocer's social media team has created a Twitter hashtag - #FandEWine - which it wants tweeter-wine tasters to use after each of their tweets in order to be able to track the one hour "Twitter Tasting."

Such hashtags used on Twitter allow for users to search particular topics on the site by entering the hashtag into its search function.

Fresh & Easy wine merchandising & marketing

First, Fresh & Easy Buzz likes the concept of the "Twitter Tasting." We give Tesco Fresh & Easy's marketing team, particularly its social media folks, a thumbs up for giving it a try.

The reason we like it is because it's different, is a bit out of the box, and fits in well with the much improved job (since about mid-2009) the grocer's social media team has been doing using Twitter, Facebook and YouTube.

We also like it because although it's virtual, it's also participatory - it brings tweeters and others together in a form of community around a common event - wine tasting.

Such uses of social media can over time build up a strong core of Fresh & Easy wine shoppers-consumers if done well.

It's using social media for marketing purposes but the event emphasises the "social" over the "marketing" aspect because of the focus on the wine tasting. Participants can be as critical as they want about the wines in their tweets, which means Fresh & Easy can't control the marketing message, like a retailer can do with paid advertising and the like.

One of Tesco's goals with Fresh & Easy is to build the Fresh & Easy retail brand in part through making its proprietary wines and wine merchandising program "famous." In fact, this is one of the charges the grocer gave to the marketing-oriented public relations firms it interviewed in March-April 2008.

Additionally, the fantastic success of wine sales at Trader Joe's hasn't been something lost on Tesco. It's no accident Fresh & Easy's wine and beer program looks very similar to Trader Joe's in terms of product selection, merchandising and marketing.

Fresh & Easy's wine program or wines aren't famous yet. But creative marketing programs like the "Twitter Tasting," combined with good product selection and merchandising, can go a long way in brand building, in our analysis.

Of course, key to tomorrow night's "Twitter (wine) Tasting" being a success is the fact that it has participants. The more tweets the better. Also, the more critical - not just pro the wines tasted - tweets during the tasting the more interesting it will be.

After all, when it comes to criticism (and even a bit of whining), some of the best involves wines.

[Readers: Click here for a selection of past stories from Fresh & Easy Buzz on Tesco Fresh & Easy's wine program, wine category merchandsing, and related topics and issues.]

Monday, November 10, 2008

Wine Category Report: Tesco's Fresh & Easy Kicks Off New Merchandising and Promotional Efforts Designed to Grow Wine Category Sales


In this October 27, 2008 story,"Category Management Report: Fresh & Easy Conducting Wine Category Review and SKU Rationalization; We Offer Some Analysis," in Fresh & Easy Buzz we reported exclusively that Tesco's Fresh & Easy Neighborhood Market has been and is in the process of conducting a wine category review and sku rationalization, along with planning to further increase it efforts to promote the wine departments and wines in its stores.

The grocery and fresh foods chain started that increased wine category promotional efforts today, just two weeks after we wrote and published our piece.

Fresh & Easy Neighborhood Market introduced five new wine blends priced under $9 a bottle, today, along with offering a new promotional discount of 10% off on six or more bottles of mix and matched wines, except for the Arbor Mist brand and those wines it already sells by the case.

As part of the new promotion, the grocery and fresh foods chain also introduced for sale today a canvas wine bottle tote bag for $1.99 each, which we wrote Fresh & Easy would be introducing in this story on October 17. The new, reusable fresh & easy canvas wine bag holds up to seven bottles of wine, according to the retailer. Additionally, the canvas wine tote can double as a reusable grocery bag by turning the wine bottle compartments inside out.

Below are the names and per-bottle prices of the five new varieties of wines Fresh & Easy is introducing today:

>Corvina-Merlot Cantina di Merlara -- $8.99
>Ca' Miani Garganega-Pinot Grigio -- $4.99
>La Parra Loca Tempranillo-Shiraz -- $6.99
>Lancewood Cabernet Sauvignon -- $8.99
>Roslyn Family Vineyards Cabernet Sauvignon -- $6.99

A major merchandising focus of the new wines is to keep them under $10 a bottle.

We've been told by our sources that as part of its wine category review process and sku rationalization, Fresh & Easy arrived at the conclusion offering wines under $10 a bottle is a good price-point range for its stores.

The wine category is very important to Tesco corporately. The global retailer (third-largest internationally) is one of the top wine importers and sellers in the world. Wine sales at the U.S. Fresh & Easy stores haven't met the retailer's expectations to date. Therefore, the category review, sku rationalization and increased promotion are all part of its plans and hopes to juice up wine sales in its California, Nevada and Arizona stores.

Second wine category promotional effort

Fresh & Easy also launched a second promotional effort today as a way to gain further attention to its stores' wine departments and proprietary wine selection.

This effort is a public relations one though.

The grocery and fresh foods chain today distributed a press release touting sales of sparkling wines more than doubled at its 97 Fresh & Easy stores in Southern California, Nevada and Arizona for Election Day, 2008, which was Tuesday, November 4.

As we wrote about in this piece on November 3, Fresh & Easy launched an election day promotion in its stores that featured food items and beverages, including sparkling wines.

Fresh & Easy stores carry 11 different bottles of sparkling wines, including five that are proprietary varieties, according to a company spokesperson. Seven of the 11 sparkling wines retail for under $10.

The best selling sparkling wine in the stores for Election Day was the Fresh & Easy Montcadi Cava which retails for under $7.00, according to Simon Uwins, Fresh & Easy Neighborhood Market's director of marketing.

What Tesco's Fresh & Easy Neighborhood Market didn't mention in its press release today regarding the election day doubling of sparkling wine sales was what its pre-election day average sales of sparkling wine is. In other words, what was the average number of bottles sold each day in all the stores before election day, compared to sales on election day? That would have been an interesting figure to include in today's press release in our analysis and opinion. But then we are numbers wonks when it comes to such things.

For example, lets speculate the average sales per day for all of the Fresh & Easy stores combined is one bottle of sparkling wine. In that case, that would mean the stores sold on average two bottles of wine on election day, for a doubling of sales. That's not much in terms of a total dollar sales increase, although it still is a 50% increase, which is nothing to sneeze about even though it wouldn't amount to much of a gross sales increase.

On the other hand, lets speculate on average each store sells five -- or even 10 -- bottles of sparkling wine per day. Then a doubling, to 10 or 20 bottles on election day, would amount to some nice additional gross sales numbers.

Alas, that information isn't available.

And of course, we must merely take the retailer's word that the sparkling wine sales actually doubled on election day over pre-election day sales of the bubbly. We give them the benefit of the doubt and believe them of course. But it would be interesting to know the numbers behind the doubling, for the reasons we describe above, anyway. It would just add some realism -- and additional news weight -- to the doubling factor.

But it is interesting sales of sparkling wine increased at all since Americans aren't known to celebrate Presidential elections with sparkling wine or champagne, or really to celebrate elections much at all in general. Therefore, from a macro political participation sense we see this as a very good sign.

Perhaps with all the attention the historic campaign, and now historic election, of Barack Obama generated, we will see a new era of participation and celebration by American voters in the political process. That would be something well worth tipping a glass of sparkling wine to in celebration for sure.

And good for Fresh & Easy Neighborhood Market, which is owned and operated by the British retail chain Tesco, for launching and conducting an election day promotion. We didn't see very many U.S.-based and owned grocery chains hold election day promotions for example. It's not the Superbowl we suppose, an event every chain seems to promote heavily.

And searching for further Tesco Fresh & Easy synergy with election day, were it not for the defeat of the British centuries ago by men who were primarily a bunch of former British nationals who became Americans, America not only wouldn't have elections at all today, there wouldn't be a United States of America, let alone blue states (Democrat) and red states (Republican).

Additionally, were it not for the two countries forgiving and forgetting, and becoming close friends and allies, Tesco wouldn't have been able to come to America with its small-format Fresh & Easy grocery and fresh foods chain.

Therefore, we see a certain synergy, beyond merely trying to sell more food and wine, behind the Tesco Fresh & Easy election day promotion.

Meanwhile, it should be interesting to see what further efforts Fresh & Easy does to follow-up on its multiple efforts today to gain increased attention for and to build sales in its wine category. Wine category sales are extremely competitive in California, Nevada and Arizona, where the grocer has its stores, after all.

Fresh & Easy Buzz will be the first to report these efforts, like we have been with the other Tesco Fresh & Easy wine category developments. And of course, like in elections, it is up to you, our readers, to decide.

Monday, October 27, 2008

Southern California Market Report: Beverages & More to Join Trader Joe's and Fresh & Easy to Form Manhattan Beach Food and Beverage Retailing Triangle


A portion of the old Office Depot building, along with an adjacent warehouse, that Tesco remodeled and turned into its Manhattan Beach, California Fresh & Easy Neighborhood Market grocery store at 1700 Rosecrans Avenue will house a competitor of sorts to Tesco's Fresh & Easy, Fresh & Easy Buzz has learned.

Beverage and specialty foods category killer retailer Beverages & More (BevMo) plans to locate one of its discount spirits, wine, beer and specialty foods superstores next door to the 1700 Rosecrans Avenue Fresh & Easy grocery and fresh foods market, inside a portion of the building not used by the grocery chain for its market.

BevMo will join a Trader Joe's specialty grocery store, which is located at 1800 Rosecrans Avenue just across the parking lot from the Fresh & Easy store, as neighbors in what looks to be not only a one stop food and beverage shopping center but also is shaping up to be a very competitive corner of Manhattan Beach when it comes to food and beverages, especially beer, wine and spirits. We call it the Manhattan Beach food and beverage retailing triangle.

The city of Manhattan Beach Planning Commission recently voted to approve the Beverages & More store going into the 1700 Rosecrans Avenue location after some discussion about traffic concerns at the location, along with a review of the retailer's alcohol sales policy. After a discussion of BevMo's liquor sales policy and potential traffic concerns at the site, the planning commission voted to approve the chain's application to remodel a portion of the empty buildings next door to the Fresh & Easy, approving its permit. [You can view the planning documents here: http://www.citymb.info/agenda/2008/Ag-Min20080916/20080916-15.pdf.]

Beverages & More stores, which average about 10,000 -to- 12,000 square feet, are described by the retailer as "alcohol-beverage lifestyle superstores." The stores devote about half their square footage to spirits, wines, craft beers and non-alcoholic beverages. The alcoholic beverage items range from the lowest end, price-focused brands, to the highest-end premium spirits, wines and craft beers. The stores also sell lots of varieties of bottled waters, sodas and new age-style non-alcoholic beverages.

The other half of the stores are devoted to selling shelf-stable specialty, natural and gourmet foods; snacks (both mass market and specialty brands); national brand and specialty candies; and non-foods items related to beverages and lifestyle. The non-foods merchandising mix includes wine and drink glasses (glass and disposable), paper plates and napkins, bar accessories and related items.

The Beverages & More stores also have refrigerated cases where cheeses, deli items and a small selection of related specialty and gourmet prepared foods products are offered for sale.

The focus of the stores revolves around alcoholic beverages and specialty foods (the "More" in Beverages & More. There's an education/sampling center in each store where wine, spirits and craft beer tastings are conducted regularly. Often times specialty food product sampling is combined with the beverage tastings.

Education about wine, spirits and craft beers is a big part of the chain's marketing. Wine makers and other experts are brought in-store regularly for seminars, tastings and related events. [Read about BevMo's chief wine buyer at this link: Wilfred Wong / Beverages & More's drinker in chief.]

The positioning of the BevMo chain is to be the best one-stop source for alcoholic and non-alcoholic beverage items in terms of overall selection (from low-end to premium), along with offering the best prices and value on the category items. Specialty foods also are priced at everyday low prices. The objective is to be a category killer in the alcoholic beverage and specialty foods categories.

BevMo, which is headquartered in Concord in the San Francisco Bay Area, currently operates 93 alcoholic beverage and specialty foods superstores: 45 in Northern California, 39 in Southern California and 9 in Arizona. Locations are based in and around the major metropolitan markets of San Francisco, Sacramento, Los Angeles and San Diego in California; and Phoenix in Arizona. The Manhattan Beach store will be number 94 for the chain.

Some history

Beverages & More is currently owned by the investment firm TowerBrook Capital Partners LP, which acquired the chain in 2007 from another investment firm.

However, it has an interesting entrepreneurial history.

BevMo was founded in 1994 in Concord, California by Steve Boone, an entrepreneur who previously had founded the Liquor Barn alcoholic beverage category killer chain in 1979 in partnership with Safeway Stores, Inc. Safeway later sold the chain when the supermarket company was acquired and taken private by the KKR investment firm in a leveraged buyout. (KKR later took Safeway Stores, Inc. public, which is its current status.)

Boone put together an investment group and opened the first Beverages & More store in Walnut Creek (next door to Concord) in the San Francisco Bay Area in 1994, beginning his second act in the liquor category killer retailing business.

The BevMo stores have many similarities to Boone's Liquor Barn stores. However, the Beverages & More stores are more upscale in design. They also feature specialty foods which the Liquor Barn stores didn't.

Boone ran BevMo for a number of years, opening about 20 or so stores, all in the Bay Area. He later ran into some financial problems in terms of operating capital for the chain and it was eventually sold to an investment group which eventually began adding new stores and expanding into Southern California and Arizona. Since acquiring Beverages & More last year TowerBrook Capital partners LP has been growing the store count as well, focusing particularly in Southern California and Arizona in terms of new store openings.

The Manhattan Beach retail triangle

With the BevMo store slated to go in right next door to Tesco's Fresh & Easy -- along with the Trader Joe's right across the parking lot -- 1700-1800 Rosecrans Avenue is set to become a competitive mecca for the sales of alcoholic beverages and specialty foods.

Beverages & More puts a big emphasis on selling wine, for example, which also is something Fresh & Easy and Trader Joe's do. BevMo often runs hot promotions in the wine category. For example it recently concluded its annual "buy one bottle at regular price get a second bottle of equal value for 5-cents" sale. Each year during this promotion the retailer moves tens of thousands of cases of wine in its stores. The retailer offers similar promotions regularly.

One point of differentiation Fresh & Easy has is that it sells basic food and grocery items, along with prepared foods, natural and specialty foods, and alcoholic beverages. Since Trader Joe's focus is natural and specialty products at discount prices and BevMo's focus is alcoholic beverages and specialty foods, this is helpful to Fresh & Easy in this up-an-coming super-competitive location.

Of course, wine is an important category for Fresh & Easy. The retailer also needs to sell lots of prepared and specialty foods along with its basic groceries in its stores. That's where the bigger market basket (average ring) sizes and higher margins come from. Having a category killer like BevMo coming in right next door will likely kill some of these category sales for the Fresh & Easy store.

The Trader Joe's at 1800 Rosecrans, which also sells wine and craft beers and prepared foods along with its natural and specialty foods focus, does very well. Local sources tell us the store grosses about $500,000 in weekly sales. This isn't an unusual number for a Trader Joe's store even though they average only about 10,000 square feet. The retailer has among the highest gross sales per square foot of any food and grocery retailer in the U.S.

The 17000 Rosecrans Fresh & Easy location, which opened in early July of this year, also has been a good one for Tesco -- one of its best thus far actually. According to our estimates, which come from a very good source, the store has been averaging about $200,000 in gross weekly sales since shortly after opening. That's among the highest in sales of all of the current 96 Fresh & Easy grocery and fresh foods markets open to date.

Based on how well both the Trader Joe's and the Fresh & Easy are doing in their neighboring Rosecrans Avenue locations in Manhattan Beach, its rather safe to say it is a good food and grocery retailing location.

In fact, the Fresh & Easy store there appears to have thus far benefited from locating near the existing Trader Joe's unit. This isn't unusual in good locations. A new retailer can tap into an existing retailer's customer base and even expand the base. And since the Fresh & Easy store sells basic groceries and the Trader Joe's doesn't, that's a complementary aspect despite the fact the two retailers also have many categories in common from a competitive standpoint.

Perhaps the addition of the Beverages & More store in the mix will even further expand the customer base at what will become the 1700-1800 Rosecrans food and beverage retailing triangle in Manhattan Beach?

One thing though is for sure, shoppers will be able to competitively shop rather easily for that bottle of wine or 6-pack of beer, along with having a wide-variety of specialty and natural foods items to choose from at competitive prices with the addition of the new BevMo store to the neighborhood mix. Perhaps we should name the entire Manhattan Beach retail triangle -- Trader Joe's, Fresh & Easy and now BevMo -- "Booze and More?"