Specialty Grocer The Fresh Market Amps Up Its Beverage Alcohol Program
Specialty grocer The Fresh Market is often cited by consumers as having the best produce, prepared foods, deli, and bakery of any supermarket chain in the country. If the company’s beverage alcohol team has its way, their department will soon join the ranks of its counterparts. “We have a customer base that’s affluent and looks for quality items,” says Olivier Kielwasser, adult beverage director at the Greensboro, North Carolina-based chain.
Indeed, the average sale price for a standard 750-ml. bottle of wine at The Fresh Market is $18—well above that of other supermarkets—while beer and spirits averages are also at a premium, Kielwasser says. But the retailer, who was named a 2008 Market Watch Leader when he was with the Giant Eagle supermarket chain, sees even greater opportunity down the road. Pointing to the chain’s well-heeled clientele, Kielwasser says he envisions the concept as not just a fine grocer, but more akin to a “nice restaurant,” with a beverage alcohol selection that matches the high standards of its food.
The Fresh Market operates 172 stores in 22 states, stretching from Massachusetts to Oklahoma, with the biggest concentration of units in the Southeast. In 2022, Chile’s Cencosud S.A. acquired a majority stake. Last August, Cencosud—with retail operations throughout South America—acquired the remaining shares of the U.S. grocery chain. Cencosud doesn’t report annual sales revenue for The Fresh Market, but in 2021 the Chilean company put the figure at nearly $2 billion.
Kielwasser says beverage alcohol sales are healthy. With spirits sales prohibited in groceries in most of the states in which it operates, wine accounts for 74% of the chain’s total beverage alcohol sales. Beer is next at 24% and spirits comprise just 2%. Nearly all of its units—162—sell beer and 145 stores offer wine, while just 12 stores sell spirits. According to Kielwasser—a veteran wine retailer who joined The Fresh Market two years ago following positions at BevMo, Sam’s Club, and Giant Eagle—the average store sells between 600 and 700 wines, generally priced from $15-$50 a 750-ml.
Premium wines are among the top sellers at The Fresh Market, including brands like LaMarca Prosecco ($18 a 750-ml. at the Greensboro, North Carolina store), Veuve Clicquot Yellow Label Champagne ($75), Whitehaven Sauvignon Blanc ($20), Kendall-Jackson Vintner’s Reserve Chardonnay ($15), and Santa Margherita Pinot Grigio ($28). As for individual segments, sparkling wine is growing rapidly, mostly driven by Champagne, and white wines are also expanding, including Sauvignon Blanc, Albariño, Vinho Verde, and white blends.
While the chain offers a few—mostly low-priced—private label wines sourced from California, Washington State, and South Africa, Kielwasser reveals that a broader portfolio will launch this year. “We’re working very actively on developing more higher-quality, higher-retail private-label items from the West Coast, Europe, and South America,” the retailer says. Among them is a Prosecco that launched earlier this year.
The Fresh Market’s commitment to growing its beverage alcohol business was exemplified last year with the opening of its first free-standing liquor store—Spirits & Wine—in Ponte Vedra Beach, Florida. The store—similar to those operated by Publix and Winn-Dixie—allows The Fresh Market to sell full-strength spirits in the Sunshine State. Adjacent to one of its grocery stores, the 7,000-square-foot liquor store stocks some 1,600 spirits and more than 2,500 wines, notes Kielwasser, adding that “the price points are elevated.”
In fact, allocated spirits are a big focus of the store, he says, as “they really drive traffic.” Customer response to the liquor store so far has been “very enthusiastic,” he remarks. “People are amazed at the décor, the assortment, and the customer service.” Kielwasser adds that the company is “looking into” more free-standing liquor stores.—Terri Allan
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Tagged : Cencosud S.A., Gallo, Jackson Family, kendall-jackson, La Marca, moet hennesy, Santa Margherita, The Fresh Market, Vueve Clicquot, Whitehaven
