AlcBev product proliferation = consumer frustration = lower growth: RBC

 

[We]e are starting to see the counter-trend to the proliferation of choice. For distributors/retailers, we are seeing many organizations struggle with the amount of variety on the shelf and the corresponding return (from a profit-per-linear-square-foot perspective). In other words, the supply chain is finally figuring out that having variety for the sake of consumer choice may not be in the best interests of their overall revenue/profit generation. In fact, Kroger and Wal-Mart, as well as large beer distributors, have started to streamline their offerings to the products that are showing strong turns.
For the consumer, the proliferation of choice has impacted “shopability”. Based on a study conducted by Microsoft in 2015, the average attention span of the average human is around 8 seconds. This compares to 12 seconds in 2000 and 9 seconds for a goldfish. That’s right, humans have a lower attention span than a goldfish. Let us be clear: we are not advocating zero innovation, but we are advocating less “variant” innovation and more disruptive innovation, where the value proposition is obvious to the consumer, thereby shortening “time to choice”.