Back to University: Term time

In their absence, retailers have been left to count the cost in terms of lost earnings in key categories such as ready meals, pizzas, snacks, confectionery and, of course, alcohol.

That is why retailers will welcome back the new batch of students once the autumn term arrives (barring any new lockdowns), because these consumers generate regular business for convenience outlets.

Important customers
Students are also important consumers that suppliers are keen to target with innovative launches, because they are keen to try new products.

They played a big part in the rise of energy drinks such as Red Bull over the past decade and have also been spearheading product innovation in categories such as drink-at-home cocktails.

This is evident most recently in the rise of ready-to-drink coffee from brands such as Starbucks and the boom in hard seltzers, which is being tipped as the next big trend in drinks, with students playing a big role.

As the new term approaches, suppliers and retailers are ready to cater for the nation’s army of students as they head back to their studies and their hard-partying lifestyles.

Matt Collins, trading director at KP Snacks, says: “As summer draws to a close and students return to university, retailers will have the opportunity to boost sales by capitalising on critical snacking opportunities.

“As a long-term, resilient growth trend, food-to-go is built for recovery and retailers near universities or accommodation for students should prepare for increased footfall and the revitalisation of the food-to-go mission.

Social return
“After more than a year of restrictions, university students will be eager to make up for missed social occasions by planning get-togethers and we know that a quarter of consumers want to snack while they socialise.”

Tom Smith, head of marketing for Europe at Accolade Wines, says: “Alcohol remains one of the best-selling categories for convenience stores, particularly those located near or on a university campus.

“It is clear this is a huge opportunity for retailers and having a strong range of brands, price tiers and varietals can further boost sales.

“Students will typically fall into the ‘newbies’ segment of wine purchasers, as the majority will be younger drinkers and new to the category.

“While the range won’t differ too much in convenience stores based near a university, price becomes more important to these shoppers, so entry-level and trade-up options are always a good idea, especially around the initial back-to-university period. A typical newbie prefers fruity, light, easy-drinking wines from brands they recognise.

“Millennials today know what they like and want a trusted brand, but they also like variety and to try something new. Rosé is a must-have in the fixture and the latest launch from Jam Shed is perfect.

Blurring categories
“Single-serve and can formats are continuing to grow in popularity, because of ease and price-point. These formats have been particularly successful in the convenience channel, also indicating that health, moderation and sustainability remain a priority for consumers. Students are often buying drinks on their way out, so mini bottles, bottles and cans in the chiller are important.

“Last year saw a boom in the trend for seltzers, which offer a lighter alternative to traditional drinks such as beer or wine. Blurring alcohol categories is becoming more popular and hard seltzers will likely witness the highest growth rate in the ready-to-drink category over the next five years.

“As a result, retailers should look to target convenience shoppers with these on-the-go formats.” Echo Falls launched its first Rosé Seltzers in August 2020, intended to appeal to consumers looking to moderate their alcohol consumption.

Cocktail trend
Christian Sarginson, brand controller at Global Brands, is also looking forward to the new university term. “As Covid restrictions are set to lift, now is an excellent time for convenience stores to stock up on popular alcoholic drinks for students.

“With the return of freshers’ weeks, and clubs re-opening, this period offers a great opportunity for stores located close to universities and colleges to take advantage of the return to nights out by catering for the student market.

“VK is the preferred alco-pop to drink on a night out and the 700ml format offers aperfect RTD to stock for students throwing parties and pre-drinks.

“User-generated videos of cocktails that feature VK products have gained a lot of interest online. Therefore, it is important for convenience stores to tap into this trend to engage with customers using these products. The cocktail-at-home trend is growing rapidly.”

Regular shop
Cider is another category that will benefit from the return of students. Chris Milton, off-trade and export sales director at Thatchers Cider, says: “With the start of the term approaching, now’s the time to get your cider fixture stocked ready for the influx of new customers looking to pick-up-and-go on their way to celebrations, or as part of their regular shop.

“The convenience sector has had an amazing boost during the last year. Many shoppers have realised supermarkets aren’t the only place to stock up.

“Retailers can build on this by ensuring they respond with the ciders their customers want to buy. Choose the brands that are in demand, that have been high-profile over the summer months and are front of mind with the Generation Z shopper.

“Trading up to premium has been evident throughout 2020 across the sector and that momentum will continue with shoppers prepared to pay more for quality.

“Thatchers has been driving sector performance and in 2020 attracted some 800,000 new shoppers – adding £3.2m of spend to the category.”

Functional options
Red Bull claims “understanding the formats that students want most” has always been central to its success and the company says its 250ml format is “ideal for a range of campus occasions”.

The company points out that more than two-thirds of spend by under-24s on sports and energy drinks is made in convenience outlets, adding that one in 10 convenience store shoppers are influenced by the availability of price-marked packs.

The company is urging retailers to stock price-marked packs of best-sellers at all times, to demonstrate range and offer students choice, while driving profit.

It also points out that about one-third of shoppers drink Red Bull while socialising and at party occasions and 30% of functional drink multi-packs are enjoyed socially.

It adds that Red Bull multi-packs “make the perfect functional option for shoppers to enjoy together, socialising once again as restrictions ease”.

Distinctive taste
Another brand that claims to have a strong affinity with students is Rustlers. “As many students shop alone, looking for affordable, single-serve meals that suit their on-the-go lifestyle, brands such as Rustlers have a key role to play in attracting them to stores,” says Monisha Singh, shopper marketing manager at manufacturer Kepak Consumer Foods.

“The combination of a distinctive flame-grilled taste, quick cook time, competitive pricing and stand-out marketing support is striking a chord with young adults, who are an integral part of Rustlers’ core target market. Retailers recognise Rustlers’ pulling power among young adults, who are extremely brand loyal.”

Chilled coffee
Students are also a key audience because they are keen to try new tastes such as ready-to-drink (RTD) coffee. Adam Hacking, head of beverages at Arla Foods, says: “RTD coffee is still a relatively new concept within the market and many competitors have been attracted into the category by the opportunity for growth that it offers.

“Despite this, Starbucks added more than £20m in additional value to the category throughout 2020, which is more incremental value than all other iced-coffee brands combined. This is driven by the fact that Starbucks is a trusted coffee brand, signaling high-quality RTD coffee on-shelf.”

Healthier lifestyles
Of course, while students are renowned for their lively social lives, a growing number are health-conscious. Parminder Walia, category development manager for Tetley, says: “Younger tea-drinkers are adventurous in their tastes and fruit and herbal infusions are particularly popular with 18- to 24-year-olds.

“Some 39% regularly opt for herbal teas and 26% a fruity brew – teas that provide a higher value sale for retailers.” Last summer, the company introduced a range of Tetley Herbals in six flavours, “offering natural flavour options from a familiar brand at a price-point that offers a risk-free trial”.

Liliana Jaurequi, brand manager for soft drinks company Good Earth, says: “As students prepare to return, interest in healthier lifestyles and the benefits to both physical and mental health is supporting the growth of more-mindful drink choices.”

By Éilis Cronin