Frosty forecasting - ice chests and beverage coolers retail marketing statistics - study by Sports Market Research Group Inc - Ice Chests & Beverage Coolers

Discount Store News, August 5, 1996

Marketers of ice chests and beverage coolers are increasing consumer penetration by introducing new feature-packed products and extending the selling season. However, the traditional retail outlet for these containers remains unchanged.

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According to a study of the category conducted in the 48 contiguous states by Sports Market Research Group Inc., discount stores generated more than 60% of ice chest/cooler and insulated jug sales in 1995 in terms of both units and dollars. No other outlets even came close.

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Warehouse clubs accounted for 11% of the dollars consumers spent on coolers and jugs last year, while sporting goods stores generated 4% of sales.

In terms of end use, the study indicates that users of these insulated products tend to be overwhelmingly male: 60% in the case of coolers and 63% in jug usage. While women represent a substantial portion of the products' user base--and frequently purchase coolers and jugs for men--the gender breakdown should encourage lifestyle merchandising. Many retail selling floors already feature displays of ice chests and beverage coolers with visual references to tailgating or other sports themes.

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The cooler and jug business is highly branded. Almost 96% of the ice chests/coolers sold last year were marketed under one of five national labels. Two brands dominate: Igloo and Coleman. Igloo Products Corp. of Houston, is the market leader with a 43% share in units. Coleman maintains a 32% share of market. Rubbermaid, Thermos and Arctic Zone achieved a share of 14%, 5% and 2% respectively. In jugs, the breakdown is similar. Igloo's share of market last year was 42%, the Sports Market Research Group's data indicates, while Coleman garnered a 32% share. Rubbermaid generated 15% and Thermos about 6%.

Close to one-third of jugs, 29%, and coolers, 28%, are purchased by consumers with household incomes between $30,000 and $49,000 annually, while approximately one quarter are bought by shoppers with incomes below $20,000.

Shoppers in the $50,000 to $75,000 range also make up a major component of the insulated cooler market. They generated 18% of jug and ice chest purchases. About 17% of these items are bought by individuals with household incomes between $20,000 and $29,000, and 11% are bought by individuals who have annual household incomes of $75,000 or higher.

Ice chest and beverage coolers are purchased by a broad consumer spectrum. By lengthening the selling season and marketing innovative new designs, manufacturers and retailers should be able to bring incremental growth to the category, while putting a lid on unprofitable, promotions-only selling.