Diageo is abandoning its two-for-£25 promotion this Christmas.
The move comes after Baileys' sales fell by 25 per cent in the year to Aug 11 . Diageo says the price mechanic caused the drop, putting off consumers who just wanted to buy a single bottle. Andy Adams, channel director for grocery, said: "It's a big intervention on our part to try and get
more value back into the category."
Instead of its two-for-£25 promotion, Diageo is suggesting that retailers maintain a single price point on big brands throughout Christmas. For the first time Smirnoff, Gordon's, Bell's and Baileys will be available in price-marked packs, with 70cl bottles retailing for £9.99.
Diageo is also launching a series of ad campaigns and new packaging in the run-up to Christmas. Smirnoff will be supported by press, outdoor and digital ads, along with a neck-collar competition - with prizes including a holiday to the Maldives and cocktail kits. Both Smirnoff Red and Smirnoff Black will be rolled out in redesigned Christmas gift boxes.
Baileys will get £6 million
in brand support, including a TV ad campaign this November. The ad aims to promote a new serve for Baileys and runs with the strapline: Baileys and Ice. Shake It. In-store demonstrations, digital activity and POS
will back the campaign.
Diageo is ploughing £1 million into a series of press ads for Bell's
and will run a press campaign and launch a gift carton
for the 400th anniversary of Bushmills. Johnnie Walker has been updated with a revamped carton and Talisker will be available in a new-look gift box.
Report - page 17
Gordons stick together
Gordon's is linking up with celebrity chef Gordon Ramsay in a £4 million marketing campaign. The partnership will include outdoor advertising, sponsorship of the new series of Ramsay's Kitchen Nightmares, and a press campaign running over Christmas. The push will be centred around shared values between the gin and the man: "Like Gordon's gin, Gordon Ramsay sets aspirational standards in doing things properly and expects consumers to settle for nothing less than the highest calibre taste and experience," said marketing director Olga Garcia-Martinez. Plans for a neck-collar promotion with prizes including cooking lessons with Ramsay will be revealed early next year.