AAFES Class Six
‘The BEST Possible
Shopping Experience’
W
ith nearly a combined $852 million in wine,
beer, spirits, non-alcoholic beverages and
tobacco accessories sales during fiscal 2014,
the Army & Air Force Exchange Service’s (AAFES)
Class Six operations have continued to be reliable
stops for responsible adults looking for these products
in their on-base military stores.
Bridget MacFawn, divisional merchandise manager (DMM) handling beverages and tobacco in
the headquarters-based Merchandising Directorate
(MD), said that proportionally, spirits led the way in
sales of these items during fiscal 2014, with more
than $290 million in volume, or about a 34 percent
share of segment sales.
DOING BUSINESS
“We have two primary goals that we support
in our Class Six and Express locations, which are
‘Grow the Express’ and ‘Intensify National Brands,’”
MacFawn said.
To that end the DMM explained, “We review
industry trends, internal sales data, and national and
local sales data to determine the best assortment for
each location. We also review industry trends to
ensure we are keeping our stores fresh and updated.
“Together with our category advisors, we determine store-specific planograms to meet the needs
of each individual location. We continually work
with both suppliers and distributors to ensure that
we are ‘first to market’ with new brands and flavors
of existing brands being advertised.”
Along those lines, MacFawn said that the Exchange continuously updates its programs and assortments “to make the shopping experience better
for our customers.”
She said that one of the newest additions at the
store level is the use of recipe cards “that provide
food pairings, as well as updated cocktails that customers can make at home.”
we can enhance the
shopping experience.
MacFawn
They offer training to
our associates on their brands and products so they
can share this knowledge with customers.”
PARTNERSHIP
AAFES works very closely with its broker and
distributor partners to help the Exchange bring Class
Six product to market more effectively.
MacFawn noted, “Our partners are expected to
bring new items, ideas and trends to the stores so that
AAFES Fiscal 2014 Top-Selling Items
By Dollar Volume,Class Six Assortment
AAFES Fiscal 2014 Class Six Sales Breakdown, Selected Categories
CATEGORY
FISCAL 2014 SALES
Spirits
$290.2 million
Non-Alcoholic Beverages
$244.9 million
Beer
$206.5 million
Wine $107.1 million
Tobacco Accessories
$3.0 million
Total
$851.7 million
FISCAL 2013 SALES
$283.8 million
$263.2 million
$205.0 million
$107.5 million
-
% CHANGE
+2.3 percent
-7.0 percent
+0.7 percent
-0.4 percent
-
AAFES PHOTOS
Source: AAFES
Non-alcoholic beverage cross-merchandising opportunities within the
Class Six selection offer patrons convenience and one-stop shopping.
32 | JUNE 2015
TOP SELLERS
“The top-selling items represent the top-40 best
sellers in the Class Six assortments,” MacFawn noted.
“A majority of these items are national best sellers outside the gate as well as in our stores. The
popularity of these brands is driven by marketing
campaigns and promotional offers that the suppliers
are presenting at both Class Six and Express stores
as well as outside the gate.”
ITEM FY14 SALES
1) Coors Light
(48-pack, 8-oz. cans) . . . . $4,129,596
2) Crown Royal (1.75 ltr.) . . . . $2,392,857
3) Hennessy V.S. Cognac
(80 Proof, 750ML) . . . . . . $2,171,728
4) Jack Daniel’s Black
(80 Proof, 1.75 ltr.) . . . . . . $2,114,620
5) Crown Royal Regal Apple
(750ML) . . . . . . . . . . . . . . $1,842,139
6) Bud Light (12-oz. cans) . . . . $1,799,877
7) Bud Light
(24-pack, 12-oz. cans). . . . . $1,536,301
8) Crown Royal (750ML) . . . . . $1,447,606
9) Jack Daniel’s
(80 Proof, 750ML) . . . . . . . $1,302,950
10) Smirnoff Vodka Red Label
(80 Proof). . . . . . . . . . . . . $1,284,966
11) Michelob Ultra
(48-pack cans, case). . . . . . $1,246,099
12) Jim Beam
4-Year White Bourbon . . . . $1,180,630
13) Jameson Whiskey
(80 Proof, 750ML). . . . . . . $1,171,432
14) Patron Silver Tequila
(750ML). . . . . . . . . . . . . . . $1,054,049
15) Captain Morgan Spice Rum
(1.75 ltr.). . . . . . . . . . . . . . $1,053,979
16) Franzia Chillable Red Wine
(5-ltr. box). . . . . . . . . . . . . $1,029,259
17) Hennessy V.S. Cognac
(80 Proof, 1.75 ltr.) . . . . . . $1,016,140
18) Bacardi Superior Rum
(1.75 ltr.). . . . . . . . . . . . . . . $977,004
19) Corona Extra (12-pack
non-returnable bottles) . . . . $964,833
20) Grey Goose Vodka (750ML). $923,952
Source: AAFES
EXCHANGE and COMMISSARY NEWS
AAFES Class Six
NEW PRODUCTS-FISCAL 2015
As was the case in fiscal 2014, fiscal 2015 has thus
far featured a wealth of new product introductions.
In spirits, MacFawn said that new flavors for
2015 “cover a wide range as shown by some of the
new items added to our assortment.”
MacFawn explained, “Classic fruit flavors continue to be popular, but new to the list are grapefruit
and tangerine. The introduction of apple-flavored
moonshine has led to apple being a hot new flavor
for whiskey. Then there’s the ‘hot-and-spicy’ trend,
as well as sours and sorbets that are being used in
new vodkas. Peach is another very popular flavor,
and has moved from vodka into the rum and brandy
categories.
“People are willing to try new flavors and are
excited about all of the new introductions, which is
why there will continue to be a flow of new flavors
each season.”
AAFES Fiscal 2014
New Spirits Products
Svedka Grapefruit Jalapeno Vodka
Southern Comfort Caramel Liqueur
Paddy Devil’s Apple Whiskey (Irish)
Pinnacle Habanero and Mimosa Vodka
Sauza Cucumber Chili Tequila
Smirnoff Red Grapefruit Vodka
Captain Morgan White Coconut/
Pineapple/and Grapefruit Rum
E. & J. Gallo Peach Brandy
Malibu Peaches and Cream Rum
Kahlua Salted Caramel Liqueur
Bacardi Tangerine Fusion Rum
Shady Fruit Valencia Orange and Red
Grapefruit Vodka
Svedka Strawberry Lemonade and Mango
Pineapple Vodka
Smirnoff Berry Lemon Sours Vodka
Jim Beam Apple Whiskey
Source: AAFES
WINE INNOVATIONS
In the wine category, MacFawn said that dark
red blends are a “hot flavor profile” impacting Class
Six assortments. “These blends are very rich with
the complexity of coffee and dark chocolate flavors.
The Dark Horse brand, which hit stores this year, is
already a number-one growth brand.”
MacFawn said that other red blend brands include
Apothic; Menage à Trois; and Gnarly Head.
“Also, box wines are very popular with military
shoppers, and we are seeing flavor expansions, and
new brands emerging that are impacting the category,” she noted. Recent introductions include Franzia Moscato;
Black Box Pinot Noir; and Vin Vault. CRAFT/SPECIALTY BEER
MacFawn noted that the craft beer segment continues to impact the beer category “in a major way,”
with India Pale Ales (IPA) gaining in popularity.
“There have been several recent launches of IPAs
this past year from the top national brands, including
from Samuel Adams and Blue Moon.” The most popular flavor in the beer category
continues to be apple, “but we are seeing other fruit
flavors such as grapefruit and mango,” she said.
“Cocktail-inspired flavored malt beverages are also
impacting the beer category. A recent introduction
that reflects this trend is Bud Light’s Mixx Tails
in Hurricane, Long Island Ice Tea and Firewalker
flavors.”
FISCAL 2015
Sales continued to be steady in wine, beer and
spirits through April in AAFES Class Six and Express stores.
AAFES Fiscal 2014 Top-Selling New Items
By Unit Volume, Class Six Assortment
SPIRITS
ITEM FY14 UNIT VOLUME
1) Fireball Cinnamon Whiskey
(1.75 ltr.) . . . . . . . . . . . . . . . . . 25,100
2) Crown Royal XO (750ML) . . . . 16,300
3) Captain Morgan White Rum
(750ML). . . . . . . . . . . . . . . . . . 12,600
4) Bacardi Mango Fusion ReadyTo-Drink Cocktails (750ML). . . . 11,100
5) Cîroc Peach Vodka ((1.75 ltr.) . . 10,200
6) Buffalo Trace Bourbon (750ML). . 9,500
7) Johnny Walker Double Black
Whisky (750ML) . . . . . . . . . . . . 9,400
8) Bulleit Rye Whiskey (750ML) . . . . 9,200
9) Cîroc Vodka (1.75 ltr.) . . . . . . . . . 8,500
10) Jim Beam Maple (750ML) . . . . . 8,300
11) Chivas Regal 12-Year
Whiskey (1.75 ltr.) . . . . . . . . . . 6,400
Source: AAFES
WINE
ITEM FY14 UNIT VOLUME
1) Menage à Trois Midnight Red
Blend. . . . . . . . . . . . . . . . . . . . . . 6,902
2) Dark Horse Red Blends (750ML). . 3,656
3) Apothic Dark Red Blend (750ML). 3,474
4) Dark Horse Merlot (750ML). . . . . 2,443
5) Dark Horse Chardonnay (750ML). 2,248
6) Francis Ford Coppola Pink
Moscato (750ML) . . . . . . . . . . . . 2,126
7) Meiomi Pinot Noir (750ML). . . . . 1,699
8) 19 Crimes Red Blend (750ML). . . 1,357
9) Yellow Tail Winter Red Blend
(750ML) . . . . . . . . . . . . . . . . . . . 1,086
10) Rex Goliath Sangria (750ML). . . . . 726
Source: AAFES
AAFES Year-To-Date Fiscal 2015
Alcoholic Beverage Sales By Category
TYPE DOLLAR VOLUME
1) Spirits . . . . . . . . . . . . . . . . $68.8 million
2) Beer . . . . . . . . . . . . . . . . . $46.4 million
3) Wine . . . . . . . . . . . . . . . . . $25.4 million
Total. . . . . . . . . . . . . . . . . . $140.6 million
Source: AAFES
BEER
ITEM FY14 UNIT VOLUME
1) Oculto. . . . . . . . . . . . . . . . . . . . . 6,371
2) Redd’s Green Apple Ale. . . . . . . . 5,981
3) Redd’s Wicked Mango. . . . . . . . . 5,252
4) Bud Light Mixxtail Long Island Iced
Tea . . . . . . . . . . . . . . . . . . . . . . . 4,984
5) Bud Light Mixxtail Hurricane. . . . 4,175
6) Leinenkugel’s Grapefruit Shandy . 3,577
7) Blue Moon White India Pale Ale
(IPA) . . . . . . . . . . . . . . . . . . . . . . 2,672
8) Sam Adams Rebel Rouser India
Pale Ale (IPA). . . . . . . . . . . . . . . . 2,466
9) Coors Light Citrus Radler. . . . . . . 2,094
10) Angry Orchard Hop’N Mad
Apple Cider. . . . . . . . . . . . . . . . 1,783
Source: AAFES
In fiscal 2015, MacFawn said AAFES will “continue to focus our efforts on pricing, programs, promotions and planograms that provide the best possible
shopping experience. We want to be our customer’s
first choice by providing high quality goods and
services at the lowest possible price.”
AAFES wine sales totaled slightly more
than $107 million during fiscal 2014,
with sales year-to-date through April
at more than $25 million.
34 | JUNE 2015
—E and C NEWS
EXCHANGE and COMMISSARY NEWS