A bar chart produced by the researchers indicates that 38 per cent of total lager by volume is now on promotion to 12th June 2011 MAT compared with around 30 per cent a year ago.
Long Alcoholic Drinks as a whole show a six per cent rise in the volume on promotion from 27 per cent to 33 per cent while the volume of spirits on promotion is up three per cent from 33 per cent to 36 per cent, states Nielsen.
Alcohol is also one of the most responsive categories which means that at least some promotions are making money, states the research company which advises against stopping such promotions as being an impractical option in the current environment.
“The most sensible option is to stablilise baseline and promotional activity,” it states, “Promotions will continue to be the engine maintaining brand performance.”
It is also critical to balance the spend behind promotional mechanics where the higher efficiency can offset rising costs.
“Winning companies will protect their baseline and drive increasing returns from media,” concludes Nielsen.