-By Nicholas Lake

Summer approaches, and with it, the promise of long days, warm nights, and lots of time spent outside. As the days get longer, it's time to shed the wool sweaters, don the cotton T-shirts, and head to family barbeques or other outdoor celebrations that mark the season. It's also prime beer time.

Traditionally, the summer selling months have provided a great opportunity for grocers to spur, and benefit from, increased beer sales. One reason for beer's popularity at this time of year is that it's generally more portable than wine and spirits, making it easier to take to the outdoor parties, picnics, and barbeques that are so popular during warm-weather days. Consumers also enjoy quenching their thirsts with the increasing number of different flavors and varieties that the beer category provides.

With nearly 35 percent of annual beer sales -- slightly more than a third of all revenue in the category-- occurring during the summer season, it's clear that sales of beer in the grocery channel during summer also represent a larger percentage of category sales compared with the other three seasons.

Summer provides a great opportunity for grocery retailers to steal share in the beer category from one of its key rivals for sales in the category, the convenience channel.

There are several reasons for this seasonal shift in sales. For one, consumers increase the frequency of trips to the grocery store in the summer, going every 13 days instead of every 18 days, and are putting beer in their carts. Not only do consumers go to the grocery store more frequently in this period, they also tend to increase their spend on beer each month, by approximately 30 percent -- nearly a third -- during this time.

The knowledge that consumers make more frequent trips to supermarkets -- and knowing that while they're grocery shopping in the summer, they tend to spend more on beer -- is a key market insight for grocers who can sell beer. Having, and just as importantly, promoting a well-stocked beer section in the store can really pay off during this critical selling period.

Premium is popular

What kinds of beer are consumers looking for? To answer this most appropriately, each retailer needs to analyze its own customer base, and assemble the most informed snapshot of its particular market.

However, Nielsen market research as a benchmark shows that for today's consumers in general, premium brands represent the lion's share of the category.

As the data analysis indicates, almost 50 percent of all beer sold in the summer is premium beer. In addition, many consumers' concerns about counting calories are evident in the beer sales breakdown, with premium light beer, at 35.6 percent, representing a highly popular choice for beer drinkers.

Historically, the above-premium, import, and craft beer segments also play a role in the summer lift. Clearly, consumers can be persuaded to spend more for their beer -- a trend for retailers to consider when planning their assortment, merchandising, and promotion strategies.

Though a small portion of overall sales, craft brewers traditionally offer seasonal beers that reflect the flavors of each season, and typically appeal to more discriminating beer connoisseurs.

As Nielsen data indicates, the craft beer segment offers high-end opportunities for grocers to draw in consumers and increase their category profit. In 2006 30.7 percent of annual craft seasonal beer sales came during the summer. In 2007 that percentage increased to 34.2 percent.

For the prime summer selling season, you can also look to craft brewers to generate interest and excitement by introducing a variety of special flavors, including citrus-infused brews, seasonal light beers, and seasonal wheat beers.

A well-chosen assortment of craft beer can draw in more affluent and variety-seeking consumers.

Focus on promotion

With supermarket operators looking to capitalize on the beer category's enhanced popularity in the summer, this is usually the most active season for in-store beer promotion.

Nielsen research data shows that the promotion trend remains high until the Fourth of July weekend, but then begins to drop. Since the Fourth of July holiday represents the biggest week for the beer market, with sales driven by parties, family get-togethers, and other celebrations, it makes sense to promote most heavily at this time.

However, the summer is only half over when this weekend comes to a close, and the same should go for the beer sales opportunity; many supermarket operators are selling the category short if they cool down their programs too quickly.

Keeping the promotion level high well into the dog days of summer, on the other hand, can help food retailers maximize their beer-selling opportunities, certainly through most of the rest of the season.

At almost any time in the summer selling season, well-planned promotions will lift category sales. It's as simple as that. And summer promotions that take advantage of consumers' availability and interests are especially successful at driving higher purchase rates in the beer category.

In the premium beer segment (light and regular combined), any promotional activity can bump up summer sales to 58 percent, compared with 50.3 percent during the rest of the year.
However, it's important to realize that the type of promotion plays a defining role in driving that lift.

Features and displays are likely to optimize lift, for example. A large, well-planned display, with signage, point-of-sale material, and price reductions, can be quite effective at moving merchandise, the data shows.

Using displays alone in the summer selling season to promote the import segment increases the percentage of lift in the category to 31.1 percent, up from 27.5 percent otherwise. When combined with a feature, displays can increase the premium beer sales lift up to 105.2 percent --  a jump of nearly 10 percent from the calendar-year figures.

Total price reductions (TPRs) have less impact in summer as a promotional tool, though they're certainly effective in their own right.

If we take a look again at the premium category, the percentage of lift from TPR rises to 29.9 percent, a 1.9 percent increase over the calendar-year figure.

The current economic climate, however, might disrupt the normal patterns here, and TPRs could prove to be a highly effective tool this summer.

A retailer's promotional strategies need to factor in the role each beer segment must play. The premium segment, because of its popularity, should be used to drive traffic, volume, and a price image. The craft and import segment, on the other hand, can be used to enhance a store's image and to drive profit, because these beers often attract more affluent variety seekers.

No matter which category segments become a retailer's focus, it's clear that summer is a hot time for beer, providing a great opportunity for grocers to reach receptive and willing consumers.

Remember the following:

--Extending promotions beyond the Fourth of July peak into late July and August can lengthen the summer sales lift.

--Using market intelligence to develop the best assortment and employing promotions that appeal to a retailer's specific beer customers can also lift sales of the category during this critical time period.

--With consumers showing preferences for premium, craft, and import beers of late, stocking these more expensive segments of the category can enhance a store's image, and attract consumers willing to spend more for a cold brew at the register.

As grocery retailers prepare their summer seasonal offerings, they should make sure their promotional and merchandising strategies include beer as a prominent component, and even the centerpiece in some cases. Now is precisely the right time to prepare to bask in this particular kind of summer's golden glow.