Diageo bringing cocktail revolution into homes

01 August, 2014

Diageo is ramping up its bid to bring the cocktail revolution into shoppers’ homes after identifying a £340 million growth opportunity in the off-trade.

It said just 23% of shoppers buy spirits on a weekly basis and it plans to increase penetration of the category by helping retailers “bring all the constituent parts of a cocktail into one place” in store and using imagery around the fixture “to communicate the consumption opportunity” to consumers.

Head of off-trade Paul Isherwood said: “In the off-trade spirits comes in at 2.7% of the basket. The opportunity to drive that to 3% is worth £300 million. There is also a great opportunity to trade shoppers up to something more interesting and that’s worth £40 million if one in 10 shoppers buy a product at 10% more.”

It said it will continue to build up its thebar.com site to educate consumers and encourage cocktail-making at home, and it will bolster its My Store Matters site to help retailers build up the category.

“Spirits isn’t one of those categories that’s saturated,” said Isherwood. “Weekly penetration of spirits is 23%, versus 67% for total alcohol. Monthly penetration lags behind beer and wine too.

“We want to make spirits really easy to shop and make it exciting.”




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Rosé tinted glasses

I was asked recently what I thought the biggest change had been in wine fashion in the past five years. My answer was unequivocal: sales of pink wines. From being a niche that expanded and contracted with the sunshine, rosé has subtly but steadily become a stalwart of many merchants’ ranges, with Provence firmly at the top and asked for by name.

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