With shoppers seeking affordable treats despite the cost-of-living crisis, FrieslandCampina highlights how indulgent dairy drinks are creating a £136m growth opportunity and how retailers can maximise sales with the right range and merchandising.
In today’s challenging economic climate, how are convenience stores not just surviving, but thriving? One answer lies in offering ‘affordable indulgence’. Despite the cost-of-living crisis, consumers are actively seeking small moments of joy through budget-friendly treats, and this trend is fuelling significant growth in categories like indulgent milk drinks, which are up an impressive +29.1% year-on-year [Nielsen].
This isn’t just a fleeting trend, it’s creating a projected £136m opportunity over the next five years for products like iced coffees and other indulgent dairy drinks. Savvy convenience retailers can can capitalise on this by offering a diverse range of high-quality, indulgent products that also deliver on value.
Optimising dairy drink sales: merchandising best practices
To fully leverage the growth potential within the dairy drinks category, independent retailers should adopt strategic merchandising and promotional practices. The drinks category is dynamic, characterised by continuous innovation and a diverse brand landscape. Effective category management is therefore crucial.
Stocking the right products is only half the battle. To truly maximise your dairy drink sales, strategic merchandising is key. Here’s how to optimise your offering.
1. Stock a range of formats to suit all occasions: Consumers purchase dairy drinks for various occasions, so offering a comprehensive range of formats from popular brands is essential. Sixty-five per cent of all soft drinks are bought at front of store for on-the-go occasions [Lumina] making this an opportunity not to be missed. Smaller 300ml and 400ml options are critical for on-the-go consumption and impulse purchases [Nielsen].
Additionally, catering to at-home consumption or sharing occasions with larger formats ensures all occasions are met. This multi-format approach maximises sales opportunities across different purchase missions.
2. Merchandising to drive impulse sales: The impulse nature of indulgent dairy drinks means prominent and accessible placement is essential. Ready-to-drink formats must be positioned within front-of-store chillers alongside soft drinks in high-visibility areas of the store. Strategic locations include primary chiller cabinets, secondary placements near till points, or within dedicated ’food-to-go‘ zones.[Chocomel].
3. Integrating new products to the range: Effective product placement guides shoppers and encourages trial. Give prominence to leading flavours and product lines from established brands [Nielsen]. While classic Chocolate and Strawberry varieties lead the charge, acting as key category drivers with over £29m market value each [Nielsen], a wider range of flavours contributes to the category’s appeal.
Yazoo Inspirations: a strategic product for the indulgent market
Within this burgeoning market, brands that truly understand and tap into consumer preferences for taste and experience are winning. Yazoo – which boasts impressive penetration, with two bottles sold every second [Nielsen], and reaches 13% of UK households – has strategically responded to this ‘treat culture’ trend with its new Yazoo Inspirations range.
Yazoo understands that 10.4% of all store missions are driven by a treating occasion [Lumina], especially among younger demographics. This is why it invested 12 months in rigorous research, including flavour trend analysis, focus groups, and taste tests, to ensure these products are a guaranteed hit. This meticulous process culminated in two distinct flavours – Birthday Cake and Caramel Blondie – which are specifically formulated to offer a thicker, more indulgent product experience, delivering on the consumer’s desire for that premium ‘indulge me’ moment.
And the proof is in the pudding (or the milkshake!). Since launching, Yazoo Inspirations has already generated a staggering £334,882 in impulse sales [Nielsen], making it the best-selling new flavoured milks range in the impulse sector [Nielsen]. This rapid uptake, further supported by an extensive advertising campaign reaching over 27m UK shoppers, proves that it is a significant sales driver for your store. Both Birthday Cake and Caramel Blondie are available in a convenient 300ml format with an RRP of £1.49*, making them an ideal, high-margin option for immediate consumption.
Retailer viewpoint:
Avtar Sidhu of St John’s Budgens, says: ”We’ve seen a double-digit uplift in sales since reworking our dairy drinks fridge. By giving products like Yazoo prime eye-level placement and grouping them alongside other dairy-based drinks, we’ve been able to drive more impulse purchases. Strategic merchandising has helped us grow the category by over 15% year on year and ensured that we’re able to maximise every customer visit.”
The indulgent dairy drinks subcategory is not just a trend, it’s a significant growth engine for independent convenience retailers. By understanding the consumer drive for affordable indulgence, stocking high-performing products like Yazoo Inspirations, and implementing the merchandising practices outlined above, convenience retailers can effectively capitalise on this market trend, driving both significant sales volume and increased profit for their stores.
Don’t miss out on this sweet opportunity. Stock up now from your chosen wholesaler and unlock the full potential of your chilled drinks fixture.
Head to https://www.yazoo.co.uk/ to find out more.
*price at discretion of the retailer
