WBM Video Interview with Danny Brager of The Nielsen Company

Large retailers focusing on value that offer a broad range of necessity items are benefiting from the current economic pressures. On the other hand, independent liquor stores and chain wine retailers are not, as they sell discretionary items.

“Grocery stores and super-centers – the WalMarts of the world, the Targets of the world, club stores – The Costco’s and Sams’ of the world – are all channels that are benefiting from the consumer economic pressures,” says Danny Brager, vice president, with The Nielsen Company.

Amid everything that’s going on with the economy, retailers are actively looking for categories that bring them more traffic, improve their profits, or increase the value of consumer shopping baskets. Wine is a category that increases traffic.

“When consumers buy wine, they also buy a lot of other things to go with it,” Brager points out. “It’s a category that’s coveted. If we look at store counts associated with those selling wine, we’re actually seeing increases.”

One example is Walgreens, now rolling out liquor licenses to more than 5,000 stores across the country, which are, or which will be selling wine.

It’s well known that wine sales are seeing a shift from on-premise (restaurants) to off premise (retail), and the data shows this trend continuing. “We would still suggest that going into 2010, and for at least as far as we can see, that the opportunity (with wine sales) is still for at-home occasions,” Brager said.