Diageo puts its weight behind PMPs with the roll out of six new packs in its spirit-based RTD range
SPIRITS giant Diageo has relaunched its RTD range with six new price-marked packs in a move which the firm reckons will help retailers tap into a £38m sales opportunity provided by the premix RTD category.
The six strong range comprises Gordon’s Gin & Tonic, Smirnoff & Cola, Smirnoff & Cranberry, Gordon & Slimline Tonic, Captain Morgan & Cola, and Pimm’s No.1 & Lemonade, with each SKU priced at £1.50, replacing the range’s original two for £3 promotion.
Diageo reckons that with premix growth rates currently outstripping beer, wine and cider in impulse, with a year-on-year UK sales increase of 14% according to Nielsen, its range can help retailers take advantage of the category’s success.
Claire Kendall, senior customer category development manager at Diageo, said: “The premix trend is being driven by consumers looking for new and exciting drinks to enjoy at casual get-togethers and parties. The classic combinations are the most popular in the RTD category within Diageo’s portfolio, with Gordon’s Gin & Tonic 250ml can being the best-selling variant, and Pimm’s & Lemonade and Captain Morgan & Cola coming in a close second and third.
“We’re continually looking to innovate in this space and our new RTD £1.50 PMPs represent an opportunity for retailers to improve positive price perception and ease of shop for customers in the convenience sector.”
Kendall added that with premix RTDs often consumed within hours of purchase, Diageo has suggested retailers stocking their PMP cans in the chiller for best results.
“Over 50% of alcohol purchased in a convenience store is for consumption on the same day and so conveniently-packaged products demonstrate a valuable profit opportunity for retailers.
“Considering that 90% of premix is consumed within two hours, merchandising PMPs in the fridge can help retailers take full advantage of the category and increase the rate of sale by up to 120%.”
