Diwali like it’s 1999!

Diwali always comes at the perfect time to light up the night and the spirits as the days shorten and the weather grows colder. Here is our guide to the festival, to help you spread warmth, happiness – and prosperity

Diwali, the Hindu festival of lights, is one of the most widely celebrated festivals across the globe, and its significance in the UK, along with its economic footprint, is growing each year. Marked by joy, togetherness, and vibrant traditions, Diwali, also known as Deepavali, is a time for family gatherings, festive meals, and the exchange of gifts.

This five-day celebration, which symbolises the victory of light over darkness and good over evil, is observed with a wide array of customs, including decorating homes with oil lamps (diyas), indulging in festive sweets, and offering prayers for prosperity. The main day of Diwali, known as Lakshmi Puja, is dedicated to worshipping Goddess Lakshmi, the deity of wealth and prosperity.

While Diwali is predominantly a Hindu festival, it is observed by various other communities with unique cultural and religious significance. For Sikhs, Diwali marks Bandi Chhor Divas (Prisoner Release Day), celebrating the release of Guru Hargobind, the sixth of ten gurus of the religion, from imprisonment. Jains celebrate Diwali as the day when Lord Mahavira attained Nirvana, while Buddhists in certain regions mark the festival by paying homage to Emperor Ashoka’s conversion to Buddhism.

It is a special time for retailers for both professional and personal reasons as stores experience a sales spike in categories such as rice, drinks, sweets and chocolates. Diwali offers a perfect opportunity to showcase not only “world cuisine” but festive drinks, sweets and cakes, with a great potential to take a share of the extra festival-based spend, and to make use of many advantages – retail and community-based, that convenience enjoys over the multiples.

Diwali sweets and snacks at SPAR Lindford store

From mithai (Indian sweets) and namkeen (savory snacks) to speciality flours, spices, and ready-to-eat meals, there is a high demand for authentic products that evoke the essence of home-cooked feasts. Additionally, gifting items such as chocolates, dried fruits, decorative diyas, and fairy lights see a surge in popularity.

This year, Diwali falls on Friday, 1 November, coinciding with Halloween, celebrated across the world on the night of 31 October. With Bonfire Night falling four days later, retailers have an exciting window to capitalise on the festive mood.

The convergence of Diwali and Halloween allows for creative cross-promotions and themed displays that appeal to a wide range of customers. Both festivals share an emphasis on sweets and treats, making confectionery a key category to promote. Offering special Diwali-themed sweets alongside Halloween candy could attract diverse shoppers looking to celebrate both traditions.

Alongside Diwali-themed offerings, Halloween treats and Bonfire Night essentials can be promoted together to maximise customer engagement. From confectionery and snacks to decorations and party supplies, this period offers numerous opportunities to boost footfall and sales. For more insights on how to make the most of Halloween and Bonfire Night, be sure to check out our dedicated feature in this issue.

Authenticity and innovation

Diwali is steeped in tradition, and food plays a central role in the celebrations. According to Upuli Ambawatta, brand manager at Empire Bespoke Foods, one of the most significant trends retailers should keep in mind is the growing consumer demand for flavours and high-quality products.

“Great flavours and authentic products are two of the main purchase motivators for Diwali, and as a leading speciality food importer and distributor, Empire Bespoke Foods is perfectly placed to deliver,” she says.

“While shoppers will be looking for great flavours and familiarity of product, they’ll also be seeking authenticity so that they can share food with confidence. Stocking a comprehensive range of Diwali products is a tried and tested way of increasing basket spend and therefore maximising sales.”

Indian snacks, both sweet and savoury, are always highly sought after, and with many customers still prefer to prepare meals from scratch, she notes that staples like rice, flour, ghee, butter, and various nuts will see a surge in demand during the festive period.

The Diwali shopping list is evolving, too. Ambawatta highlights the increasing interest in healthier Indian sweets, which offer lower sugar and fat content while maintaining an authentic taste.

“To help retailers stock up for Diwali, Empire Bespoke Foods offers a range of traditional yet innovative ‘Shayona’ snacks, as well as acclaimed Indian condiments and ready-to-eat-meals from global brand Ashoka. Sourced direct from India, Ashoka products are ideal for the busy Diwali period, with an emphasis on authenticity and convenience,” she says.

Merchandising plays a critical role in ensuring retailers make the most of the Diwali season, with Sanjeet Manek, founder of Sandea Wholesale, highlighting the importance of strategically merchandising high-demand products.

“In the convenience sector, high-demand, everyday essentials like toiletries (toothpaste, deodorants), OTC medications (pain relievers, cough drops), and FMCG staples (snacks, beverages) perform best. These products are frequently purchased due to their essential nature and often on impulse, particularly in busy environments like convenience stores or during festive periods,” he notes.

“By ensuring a steady supply of these essentials, retailers can meet immediate consumer needs and capitalise on quick, hassle-free purchases.”

Both Ambawatta and Manek agree that bundling is an effective strategy for increasing sales during Diwali.

“Offering product combinations encourages larger purchases. Additionally, offering seasonal promotions tied to key events, like Diwali, drives excitement and clears stock. Lastly, monitoring consumer feedback and preferences helps tailor the product mix, ensuring that retailers remain responsive to customer needs and maximise sales,” Manek says.

Sandea Wholesale has several exciting launches lined up for the festive season.

“Many of our partnered brands will introduce new ranges and festive packaging in time for Diwali and Christmas, featuring exclusive gift sets and holiday editions. These products, particularly in FMCG and cosmetics, are perfect for gifting and celebrations,” Manek explains.

“On the FMCG side, we continuously stay ahead of the curve, preparing for new product launches well in advance. These innovative product lines, combined with tailored marketing campaigns, will drive consumer interest and increase engagement during the festive period.”

Competing with multiples

With many customers preferring to shop for Diwali products in ethnic or independent stores due to the limited range offered by larger retailers, it’s a great opportunity for indies to steal a march on the multiples by making the most of this relatively short but intense selling period. However, as more multiples expand their Diwali offerings, independents must step up their game to stay competitive.

Ambawatta emphasises the importance of planning ahead and stocking up early to offer maximum value and choice to customers.

“This year, some retailers will be starting their Diwali promotions earlier than in previous years. Getting on top of planning for the occasion gives you a clear advantage over the multiples as it gives shoppers more time to plan,” she suggests.

“By making sure you’re well stocked with popular lines ahead of this key selling time, you can offer plenty of choice for last minute or top-up purchases – but make sure that you understand your customer base and are stocking the right range otherwise you could miss out on valuable sales.”

Manek believes independents hold a unique advantage in their ability to deliver personalised service and cater to local preferences.

“Independents can compete with larger chains by focusing on personalised service and a deeper understanding of their local customers,” he explains.

“Offering niche products, such as artisanal goods or hard-to-find cultural items, provides a unique selling point. Local collaborations with artisans or community groups can help differentiate their offerings while fostering community spirit.”

Manek also advises independents to leverage social media to highlight local stories, Diwali-specific promotions, and engaging with local influencers to build strong customer loyalty. By using social media to showcase exclusive product ranges, special promotions, and even behind-the-scenes glimpses of preparations, independents can create a buzz that draws customers in and enhances their shopping experience.

“With personalised care and a close community connection, independents can attract customers who prefer a more intimate shopping experience,” he adds.

Soft drinks opportunities

Diwali provides convenience retailers with an ideal opportunity to boost their soft drink sales by catering to consumers seeking refreshing beverages to complement their celebrations. With family gatherings, festive meals, and an emphasis on socialising, the demand for soft drinks continues to rise, making it an essential category for retailers to focus on during this festive season.

Barr Soft Drinks, a leader in the soft drinks category, is urging retailers to tap into the growing demand for exotic juice drinks by stocking up on Rubicon, the UK’s No.1 Exotic Juice Drink brand [IRI].

“Diwali celebrations encourage shoppers to discover exciting new taste and flavour experiences, as they make the most of the opportunity to socialise with family and friends,” comments Jonathan Kemp, Commercial Director at Barr Soft Drinks.

“Many consumers are looking for new and exotic food and drink options during Diwali. Rubicon’s largest ever range of unique, bold flavours, which complement many traditional Diwali dishes, and broad choice of pack formats take the lead in attracting shoppers to the soft drinks fixture.

With Diwali sales continuing to grow year on year, in 2023 alone volume grew by 13 per cent [Circana], Rubicon accounted for a remarkable 83 per cent of soft drink sales during Diwali in 2023.

“Rubicon Stills accounted for one-third of those sales, growing at 42 per cent year on year whilst Rubicon Sparkling accounted for two-thirds of the sales, growing at 27 per cent highlighting the importance to retailers to stock up on both formats,” Kemp says.

For retailers, Kemp advises stocking up on a mix of Rubicon Still, Rubicon Sparkling, and Rubicon Spring to meet consumer demand for taste, value, low sugar options, and innovation.

“Diwali is synonymous with exciting food and drink choices. Offering a large range of flavours and pack formats will cater to demand from those who are shopping for family gatherings, where individual tastes and preferences differ. Larger pack formats, such as Rubicon two-litre sparkling and one-litre still packs, have particular take-home appeal,” he adds.

Barr Soft Drinks is supporting Rubicon with a range of eye-catching POS, enabling retailers and wholesalers to create in-store theatre during Diwali.

Alongside Rubicon’s exotic offerings, Coca-Cola Europacific Partners (CCEP) emphasises the importance of stocking up on popular soft drink brands like Coca-Cola, Fanta, Sprite, and Dr Pepper during Diwali, an important event in the winter calendar.

“With shoppers looking for non-alcoholic options around Diwali, the event can create a great opportunity for soft drinks,” Amy Burgess, senior trade communications manager at CCEP.

“Retailers should light up their stores with exciting seasonal displays featuring sharing packs across leading brands, such as large PET bottles and multipack cans of popular favourites like Coca-Cola, Fanta, Sprite and Dr Pepper.”

These formats offer convenience, ensuring that guests have ample refreshments during extended celebrations. Whether enjoyed alongside a festive meal or during a casual family gathering, CCEP’s range of fizzy favourites delivers familiar, refreshing flavours that are a staple for many Diwali celebrations.

Spirits and RTD options

The Diwali season presents an excellent opportunity for retailers to enhance their spirits and ready-to-drink (RTD) offerings, aligning with the festive spirit and consumer preferences. With spirits alone generating £20 million in sales during the Diwali season [NielsenIQ], the category has immense potential for growth.

As Lauren Priestley, head of category development, off trade at Diageo GB, explains, “These occasions are perfect for aligning stock with consumer preferences and seasonal trends, enabling retailers to provide popular drinks options and maximise sales.”

Retailers have an essential role to play in helping customers prepare for Diwali gatherings, from offering the right beverages to creating a festive atmosphere in-store. “By actively participating in Diwali festivities, they not only enhance their relationships with customers but also boost brand loyalty and contribute to the festive mood,” she adds.

“Retailers can support this communal spirit by assisting customers in preparing for home parties, offering everything from festive decorations to a diverse selection of beverages, ensuring all needs are met for a memorable celebration.”

She also emphasises the importance of stocking both alcoholic and alcohol-free options to cater to all consumers, helping families and communities celebrate together.

“Alcohol-free occasions are increasingly mirroring traditional alcohol-driven celebrations in terms of consumption patterns, with sales of alcohol-free drinks peaking during major seasonal events,” Priestley observes.

“Recognising this trend, retailers can benefit by stocking a selection of premium alcohol-free options in their stores. For instance, Guinness 0.0 has become a standout in the alcohol-free beer category offering consumers a high-quality, great-tasting alternative that meets the rising demand.”

In the alcohol-free spirits category, there has been significant innovation, driving a 9.2 per cent growth in off-trade sales [Nielsen Discovery]. Diageo’s “House of Zero” portfolio, which includes alcohol-free versions of iconic brands such as Gordon's, Tanqueray, and Captain Morgan, is a prime example of the quality options now available. These alcohol-free choices allow consumers to enjoy the social moments of Diwali celebrations without feeling left out, making them a must-stock item for the festive season.

Ready-to-drink (RTD) beverages are another segment that offers significant potential during Diwali, especially given the growing trend toward convenience and at-home entertaining. RTDs are the fastest-growing segment within the total alcohol category in the off-trade [by 25 per cent between 2020-2023 – Nielsen Scan Track], and their popularity continues to surge as consumers look for high-quality, premixed drinks that require no preparation.

Priestley notes: “The rising trend of crafting cocktails at home remains strong, with premium cocktails showing an impressive growth of 82 per cent [Nielsen Scan Track]. For those less experienced in mixing drinks, RTDs offer a simple solution without compromising on quality.”

Diageo’s recent RTD innovations, such as the Cîroc Passion and Cîroc Summer Citrus RTDs, have performed exceptionally well, meeting consumer demand for premium, convenient cocktail options. Similarly, Diageo's The Cocktail Collection—a trio of bottled premium cocktails featuring Johnnie Walker Old Fashioned, Tanqueray Negroni, and Cîroc Cosmopolitan—caters to those who want bar-quality cocktails at home, ideal for sharing and social celebrations.

Ben Anderson, Marketing Director at FUNKIN COCKTAILS, reinforces this trend, stating that RTDs have seen "brilliant" performance in the market, with the cocktail segment leading the charge.

“Convenience, portability and premiumisation have driven strong growth particularly in the convenience channel. Over the past year, RTD cocktail sales have surged to £138 million, marking a 12 per cent YOY increase – far outpacing the overall RTD market’s six per cent growth [Nielsen],” Anderson reveals.

In the impulse sector, these sales have grown even faster, hitting £17 million, up 25 per cent YOY.

“This trend highlights a significant opportunity for convenience retailers, as consumer demand for high-quality on-the-go beverages continues to rise,” he notes, adding that: “As the market continues to evolve, retailers can expect ongoing innovation in flavours and formats, making RTDs a must-stock.”

In terms of products, Anderson highlights the importance of offering single-serve options, including both bottles and cans, which have consistently performed well.

“So far this year, RTD cocktails have generated £84 million in sales, marking a seven per cent increase YOY. With this in mind, independent retailers should prioritise stocking up on these formats, maximising the opportunity to cash in,” he suggests.

Classic cocktail flavours like FUNKIN’s Passion Fruit Martini have seen tremendous growth, doubling from three million cans sold in 2022 to nearly six million in 2023. Nostalgic flavours, such as FUNKIN’s Blue Raspberry Martini, have also gained popularity, particularly among Gen Z consumers, making them an essential part of any retailer’s RTD offering.

“Tailored to Gen Z preferences, this new addition has quickly gained traction, particularly in convenience stores, where it now accounts for 30 per cent of all sales. By staying ahead of these flavour trends, retailers can unlock additional sales by recruiting a new generation of drinkers and enhancing their product offerings,” Anderson adds.

The rise of premium cocktails and convenience-driven purchasing habits has also made multipacks a valuable option for Diwali celebrations.

“With RTDs, our merchandising advice has always been to prioritise these in the fridge – and this is particularly true in impulse. During times when you’re expecting a high footfall, as well as regularly restocking the chillers, also remember to stock up on FUNKIN's multipacks, such as our Mixed Cocktail Party Pack, to capitalise on group purchases,” he says.

“We’d recommend that independent retailers keep a close eye on any events in their local area which are going to be particularly appealing to young socialisers and tastemakers. Whether that’s seasonal events or concerts, there’s often an opportunity to capitalise on passing trade by making sure consumers’ favourite cocktails are on offer.”

Gift-giving

Confectionery plays a central role in Diwali celebrations, making it an essential category for retailers during the festive season. Diwali is synonymous with indulgence, gift-giving, and sharing treats with loved ones, and confectionery items perfectly align with these traditions.

Sweets are often given as gifts during Diwali, as they symbolise joy, prosperity, and the sharing of happiness. Gifting sweets is a key cultural practice, making it crucial for retailers to stock up on premium confectionery gift boxes, chocolate assortments, and festive-themed packaging. Popular brands offering limited-edition Diwali treats or personalised gift options will appeal to customers looking for unique gifting solutions.

Family gatherings and parties during Diwali drive demand for sharing packs and multipacks of confectionery. From chocolates and sweets to traditional Indian mithai, shoppers look for larger packs that cater to the whole family and guests. Stocking a wide variety of sharing formats and bulk options can help retailers meet this demand and increase basket sizes.

SPAR Lindford store

Creative and vibrant in-store displays featuring confectionery can capture the festive spirit and encourage impulse purchases. Retailers should also run special Diwali promotions, offering bundle deals or discounts on festive sweets, to entice shoppers and boost sales during this high-demand period.

Diwali represents a critical period for convenience retailers, and independents are uniquely positioned to capitalise on the season by offering authentic products, personalised service, and a deep connection to the local community. By planning ahead, stocking up on key categories, and leveraging digital and in-store merchandising techniques, retailers can drive sales and attract a loyal customer base. Collaborations, bundling, and a keen understanding of consumer trends will further enhance their Diwali offering and help them compete against larger chains.

With the right approach, independents can shine brightly during Diwali, offering their customers a memorable shopping experience that reflects the joy and togetherness of this festive season.