Iceland trials Bargain Booze link-up for The Food Warehouse

Patrick Mitchell-Fox
Senior Retail Analyst
@RetailAnalysis

Date : 17 September 2020

The Grocer magazine has reported that Iceland has launched a trial to bring Bargain Booze branded concessions into its Food Warehouse stores, to boost alcohol ranges and bring greater focus to the offer.

Extends Food Warehouse alcohol range to 1,000 lines

The trial stores at Cheltenham, Poole and York now have dedicated Bargain Booze sections comprising 1,000 lines, more than doubling the existing Food Warehouse alcohol range and including new sub-categories such as craft lagers and flavoured spirits.  If successful, it is envisaged that store-within-store sections will be rolled out nationally to all the 120 Food Warehouse sites.

Pandemic lockdown has driven elevated demand for alcohol into retail channel

With the out-of-home channel significantly disrupted, both by official restrictions and customer caution, the last six months have seen sales of alcohol rising significantly in retail outlets, for consumption at home.  This new partnership will give Iceland a ready solution to tap into this opportunity more readily, helping to establish Food Warehouse stores as a more credible shopper destination for the alcohol category.

Bargain Booze parent, Bestway now also supplying Poundland

As well as supporting Iceland with supply through Bargain Booze, Bestway is also now reported to be supplying alcohol ranges to discounter Poundland, as it seeks to launch an offer in the category for the first time.  Traditionally, as a fixed price discounter alcohol was hard to include in Poundland’s range, but with a move to more flexible price points it can now be more readily accommodated.

Dawood Pervez, Managing Director, Bestway Wholesale commented:

‘This partnership (Iceland and Bargain Booze) has evolved from a mutual passion to offer consumers new ways to shop – through leveraging the power of two big brands under one roof.  What is important is that this trial works for both parties as we mirror our professional values.  Iceland is all about delivering big brands, foods you can trust, and innovation for amazing value.  Here at Bestway we pride ourselves on those same principles and our Bargain Booze brand leads the way in bringing choice and on-trend off-licence products to consumers.’