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Getting into the mix with RTDs

With volume and value showing decent growth, the RTD market has cemented its position as an integral part of the off-trade convenience mix, with sales being driven by multi-packs and pre-mixed cans.

by Kevin Scott

The RTD category, which includes pre-mix spirits as well as traditional RTDs, is worth more than £5.2m a year in retail sales to impulse stores in Scotland. What’s more, RTD sales volume through impulse stores in Scotland have increased by 12% in the past 12 months, while value sales are up by 9%. So the category is in fine health. Debs Carter, Marketing Director – Alcohol at SHS Drinks, whose brand portfolio includes WKD, says: “The category is buoyant and thriving. WKD, which has also increased both volume and value sales, is still by far the No.1 best seller accounting for well over a third (39%) of all RTD sales volume and generating £1.9m-worth of sales for impulse retailers in Scotland.” Carter has seen shoppers in impulse stores trading up from single bottles and smaller pack formats to 10-packs.

Price marked packs have also performed well. For retailers to make the most the category, she recommends starting with the basics in terms of range and space allocation, and ensuring chilled RTDs are available. The biggest-selling brands and variants are ‘must stocks’, so focus on as many of the top 10 best sellers as space permits. But don’t forget space for new launches and limited editions. “Convenience stores are the outlets most likely to benefit from late-arranged social gatherings, as consumers will be picking up their drinks en route to their mates or getting a few bottles in just before their guests arrive, so retailers have to offer ready-chilled drinks to cater for these occasions,” she says. Ensuring there is strong representation in 70cl bottles and multipacks will also help. Such has been the sales-driving success of WKD’s price-marked 4-packs (WKD Blue and WKD Iron Brew are both available in £4.99 price-marked 275ml bottle 4-packs), that SHS Drinks has now made three WKD variants – WKD Blue, Iron Brew, and newcomer Green – available in 70cl PMPs with a £2.99 price point. Specially flashed cases (6 x 70cl bottles) of the £2.99 PMP stock feature eye-catching neck labels highlight the ‘Only £2.99. Result!’ deal and provide stand-out. The emergence of pre-mixed spirits drinks has altered the course of the category in recent years.

Many popular spirits brands have entered the RTD market, including Diageo with its Gordon’s and Smirnoff pre-mixes. The company has also made new launches such as Gordon’s Crisp Cucumber available as an RTD version. The same happened earlier this year with Gordon’s Elderflower. “Both pre-mix cans pave the way for further innovation, revolutionising the gin categor,” says Katerina Podtserkovskaya, Marketing Manager, Gordon’s. “The brand’s growing ‘flavours range’ has been developed following the positive consumer response to the first flavour launch, Gordon’s Crisp Cucumber, and we can expect to keep that momentum going with the launch of Gordon’s Elderflower. “Both the pre-mix cans have been an extremely valuable trial and sampling tool for Gordon’s, offering consumers a lower entry price-point, and the experience of the perfect serve in a can.”

Also from Diageo, Smirnoff is making its mark on the frozen alcoholic drinks category with the launch of its new Sorbets and frozen pouches range, although these are impossible to merchandise frozen in Scotland, of course. The brand is following in the footsteps of Parrot Bay, whose ‘freeze and squeeze’ cocktails delivered 61% incremental growth to the Total Beverage Alcohol market in 2013. The new Smirnoff Sorbet range is available in three fruit flavours -– Raspberry, Mango and Lemon – while the frozen drinks offering includes Smirnoff Apple Bite and Smirnoff Ice. Diageo will be investing heavily in the ranges, with in-store activations and sampling taking place.

 

WKD relaunches cocktail pack

SHS Drinks is relaunching its WKD 10x275ml mixed pack as the ‘Mix It Up’ cocktail-themed pack. On shelf from mid-July, the WKD Mix It Up pack comprises two 275ml bottles each of WKD Blue, Red, Iron Brew and Green, plus two bottles of WKD Limited Edition Brazilian. Reflecting how WKD Cocktails are all about sharing with friends, the new pack graphics instruct ‘just add mates’. With four WKD Cocktail recipes printed on the outside of the pack and the case graphics clearly communicating the cocktail occasion, the new 10-pack design will help bring WKD Cocktails to life in the off-trade.

The first production run of the new 10-pack will also contain a special free cocktail recipe booklet which includes a £1 voucher off a future mixed pack purchase. Further themed cocktail booklets will be inserted at key trading periods such as Halloween and Christmas.

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This publication contains images and information relating to tobacco products. Please do not view if you are under the age of 18 years old.

This website contains images and information relating to tobacco products. Please do not view if you are under 18 years of age.

This website contains images and information relating to tobacco products. Please do not view if you are under 18 years of age.

This publication contains images and information relating to tobacco products. Please do not view if you are under the age of 18 years old.