RALPHS TESTS NEW FREESTANDING RACK

RICHARD TURCSIK

COMPTON, Calif. -- Ralphs Grocery Co. here is testing a new "do-it-yourself" merchandising rack for Augsburger beer that allows customers to mix and match their own 22-ounce bottle six-packs.

The freestanding merchandising racks were created by Stroh Brewing Co., the Detroit-based brewer of Augsburger, and placed in Ralphs during Super Bowl weekend by Avalon Food & Beverage, one of Stroh's California distributors.

The racks stand about 4-feet high and contain four shelves of Augsburger beer. Folded six-pack carriers hang off the display, allowing shoppers to pick the varieties they desire.

Stroh's created the racks after meeting with Ralphs management about consumer needs at the chain. Ralphs officials said its customers were seeking a mix of specialty brews at a value vs. purchasing a six-pack of one variety or an individual 22-ounce package.

"We've really been listening to our customers and, recognizing how educated today's beer drinkers are, we wanted to provide them with an option that would meet their increasingly sophisticated demand for innovative product and packaging options," said Tom Henry, vice president of the liquor division at Ralphs.

Ralphs is selling a single 22-ounce bottle for $1.49 and a six-pack for $6. Stroh's perceives Augsburger to be a "good value" super premium beer, priced below the microbrew level.

Augsburger is positioned as a "quirky" microbrewed-type beer. It is available in Golden, Rot (German for red), Dark and Bock varieties, along with seasonal beers that are continually rotated. Seasonal varieties of Augsburger to be used this year include Alt, Oktoberfest and Dopplebock.

Lacey Logan, director of public relations and corporate communications at Stroh's, told SN that, based on the success of the test, the display racks are now being offered to other retailers.

"The display makes it easy to carry the beer and instead of buying a 12-pack customers might buy six 22-ounce bottles. It makes it more customer-friendly in purchasing beer because you can't physically hold six 22-ounce bottles. If you're not buying your groceries for the week it allows you to walk in and walk out," Logan explained.

One benefit of the warm display is that it can be placed anywhere in the beer department, she said.

"The rack can be used as an endcap display, or it can be an aisle display, depending upon the store," she said.

Stroh's believes packaging Augsburger in 22-ounce bottles is a unique marketing tool that is further helping to drive sales.

"A 22-ounce is a good sharing bottle, or when you want a beer and a half," she said.

Augsburger is produced at Stroh's St. Paul, Minn., brewery.